Dover Reports Fourth Quarter And Full Year 2020 Results; Provides 2021 Guidance

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DOWNERS GROVE, Ill. , Jan. 28, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the fourth quarter and full year ended December 31, 2020.

(PRNewsfoto/Dover)
(PRNewsfoto/Dover)



Three Months Ended
December 31,


Twelve Months Ended
December 31,

($ in millions, except per share data)


2020


2019


% Change


2020


2019


% Change

U.S. GAAP

Revenue


$

1,780



$

1,776



%


$

6,684



$

7,136



(6)

%

Net earnings 1


182



168



8

%


683



678



1

%

Diluted EPS 


1.25



1.15



9

%


4.70



4.61



2

%














Non-GAAP

Organic revenue change






(2)

%






(7)

%

Adjusted net earnings 2


225



226



%


824



872



(5)

%

Adjusted diluted EPS


1.55



1.54



1

%


5.67



5.93



(4)

%

 

1

Q4 2020 and 2019 net earnings include rightsizing and other costs of $16.5 million and $14.2 million, respectively. Q4 2019 also includes a $18.4 million loss on extinguishment of debt. Full year 2020 and 2019 net earnings include rightsizing and other costs of $40.7 million and $25.4 million, respectively. Full year 2020 also includes a $3.9 million non-cash gain on the sale of Chino, and full year 2019 includes a $46.9 million non-cash loss on assets held for sale related to Finder as well as a $18.4 million loss on extinguishment of debt.



2  

Q4 2020 and 2019 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.3 million and $25.1 million, respectively, and rightsizing and other costs of $16.5 million and $14.2 million, respectively. Q4 2019 also excludes a $18.4 million loss on extinguishment of debt. Full year 2020 and 2019 adjusted net earnings exclude acquisition-related amortization costs of $104.1 million and $103.6 million, respectively, and rightsizing and other costs of $40.7 million and $25.4 million, respectively. Full year 2020 also excludes a $3.9 million non-cash gain on the sale of Chino, and full year 2019 excludes a $46.9 million non-cash loss on assets held for sale related to Finder as well as a $18.4 million loss on extinguishment of debt.

 

For the quarter ended December 31, 2020, Dover generated revenue of $1.8 billion , a slight increase compared to the fourth quarter of the prior year (-2% organic). GAAP net earnings of $182 million increased 8%, and GAAP diluted EPS of $1.25 was up 9%. On an adjusted basis, net earnings of $225 million declined slightly, and adjusted diluted EPS of $1.55 was up 1% versus the comparable quarter of the prior year.

For the full year ended December 31, 2020, Dover generated revenue of $6.7 billion , a decline of 6% compared to the prior year (-7% organic). GAAP net earnings of $683 million increased 1%, and GAAP diluted EPS of $4.70 increased 2% year-over-year. On an adjusted basis, net earnings of $824 million declined 5%, and adjusted diluted EPS of $5.67 was down 4% versus the prior year.

A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein.

MANAGEMENT COMMENTARY:

Dover's President and Chief Executive Officer, Richard J. Tobin , said, "Dover delivered solid results in the fourth quarter despite lingering economic and operational effects of the pandemic. Our efficiency and productivity initiatives drove improvement in segment margins and cash flow metrics despite lower revenue for the full year. We advanced our operational priorities with notable progress in the center-led digital, operational, and shared back office and engineering capabilities. These initiatives have contributed to our recent results and will continue to drive improvement ahead. Our strong execution was complemented by disciplined capital allocation, including several strategic bolt-on acquisitions that enhance our businesses with new capabilities and attractive end-market exposures.

"Improving market conditions coupled with a robust demand backlog enable us to look into 2021 with constructive optimism. With continued progress in our ongoing productivity and cost initiatives, we believe we are well-positioned to deliver robust top-line growth, margin expansion and EPS accretion in 2021. We also enter the year with a healthy balance sheet that will continue to support organic and inorganic capital deployment to continue enhancing our portfolio."

"We are pleased to have 2020 in the rear view mirror for all the obvious reasons. On behalf of Dover Corporation's Board of Directors, I would like to thank our entire team for their extraordinary efforts in the past 12 months. We were given a unique opportunity to demonstrate the resilience of the Dover team and our business portfolio in 2020, and we can all be proud of the results we achieved together."

FULL YEAR 2021 GUIDANCE:

In 2021, Dover expects to generate GAAP EPS in the range of $5.42 to $5.62 (adjusted EPS of $6.25 to $6.45 ), based on full year revenue growth of 8% to 10% (5% to 6% on an organic basis). A full reconciliation between forecasted GAAP and forecasted adjusted measures is included as an exhibit herein.

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its fourth quarter and full year 2020 results as well as 2021 guidance at 10:00 A.M. Eastern Time ( 9:00 A.M. Central Time ) on Thursday, January 28, 2021. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's fourth quarter and full year results and its operating segments can be found on the Company's website.

ABOUT DOVER:

Dover is a diversified global manufacturer and solutions provider with annual revenue of approximately $7 billion . We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of over 23,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois , Dover trades on the New York Stock Exchange under "DOV." Additional information is available at dovercorporation.com.

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, the impacts of COVID-19, or other future pandemics, on the global economy and on our customers, suppliers, employees, business and cash flows, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.


 

INVESTOR SUPPLEMENT - FOURTH QUARTER AND FULL YEAR 2020

 

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited)(in thousands, except per share data)



Three Months Ended

December 31,


Years Ended
December 31,


2020


2019


2020


2019

Revenue

$

1,780,390



$

1,775,589



$

6,683,760



$

7,136,397


Cost of goods and services

1,128,941



1,124,274



4,209,741



4,515,459


Gross profit

651,449



651,315



2,474,019



2,620,938


Selling, general, and administrative expenses

405,520



403,223



1,541,032



1,599,098


Loss on assets held for sale







46,946


Operating earnings

245,929



248,092



932,987



974,894


Interest expense

28,234



30,846



111,937



125,818


Interest income

(700)



(1,428)



(3,571)



(4,526)


Gain on sale of a business





(5,213)




Loss on extinguishment of debt



23,543





23,543


Other income, net

(2,013)



(1,891)



(11,900)



(12,950)


Earnings before provision for income taxes

220,408



197,022



841,734



843,009


Provision for income taxes

38,302



28,900



158,283



165,091


Net earnings

$

182,106



$

168,122



$

683,451



$

677,918










Net earnings per share:








Basic

$

1.27



$

1.16



$

4.74



$

4.67


Diluted

$

1.25



$

1.15



$

4.70



$

4.61


Weighted average shares outstanding:








Basic

143,954


144,966


144,050


145,198

Diluted

145,355


146,790


145,393


146,992









Dividends paid per common share

$

0.50



$

0.49



$

1.97



$

1.94










* Per share data may be impacted by rounding.








 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2020


2019


Q1

Q2

Q3

Q4

FY 2020


Q1

Q2

Q3

Q4

FY 2019

REVENUE












Engineered Products

$

408,160


$

342,380


$

386,562


$

394,175


$

1,531,277



$

418,851


$

429,928


$

426,689


$

422,089


$

1,697,557


Fueling Solutions

359,982


326,495


380,511


409,294


1,476,282



373,050


390,586


411,769


444,772


1,620,177


Imaging & Identification

256,765


227,977


265,690


287,746


1,038,178



268,354


266,588


275,109


274,420


1,084,471


Pumps & Process Solutions

319,536


309,095


347,875


347,497


1,324,003



330,219


338,924


341,337


328,048


1,338,528


Refrigeration & Food Equipment

311,913


293,527


368,395


342,255


1,316,090



334,643


385,474


370,335


306,165


1,396,617


Intra-segment eliminations

(417)


(299)


(777)


(577)


(2,070)



(360)


(794)


106


95


(953)


Total consolidated revenue

$

1,655,939


$

1,499,175


$

1,748,256


$

1,780,390


$

6,683,760



$

1,724,757


$

1,810,706


$

1,825,345


$

1,775,589


$

7,136,397














NET EARNINGS












Segment Earnings:












Engineered Products

$

69,094


$

47,702


$

64,890


$

56,481


$

238,167



$

67,119


$

77,129


$

74,367


$

73,233


$

291,848


Fueling Solutions

53,498


47,214


66,601


69,661


236,974



37,230


52,637


68,069


73,937


231,873


Imaging & Identification

51,482


38,046


51,928


52,017


193,473



55,955


54,641


61,655


57,233


229,484


Pumps & Process Solutions 1

66,079


67,702


89,786


81,709


305,276



14,991


76,278


77,433


71,379


240,081


Refrigeration & Food Equipment 2

23,529


11,459


40,159


27,725


102,872



24,807


44,375


35,211


14,439


118,832


Total segment earnings (EBIT)

263,682


212,123


313,364


287,593


1,076,762



200,102


305,060


316,735


290,221


1,112,118


Corporate expense / other3

24,097


27,311


35,603


39,651


126,662



30,866


24,512


28,658


63,781


147,817


Interest expense

27,268


28,711


27,724


28,234


111,937



31,808


31,754


31,410


30,846


125,818


Interest income

(1,183)


(728)


(960)


(700)


(3,571)



(890)


(945)


(1,263)


(1,428)


(4,526)


Earnings before provision for income taxes

213,500


156,829


250,997


220,408


841,734



138,318


249,739


257,930


197,022


843,009


Provision for income taxes

37,221


32,063


50,697


38,302


158,283



32,613


51,654


51,924


28,900


165,091


Net earnings

$

176,279


$

124,766


$

200,300


$

182,106


$

683,451



$

105,705


$

198,085


$

206,006


$

168,122


$

677,918














SEGMENT MARGIN










Engineered Products

16.9 %


13.9 %


16.8 %


14.3 %


15.6 %



16.0 %


17.9 %


17.4 %


17.4 %


17.2 %


Fueling Solutions

14.9 %


14.5 %


17.5 %


17.0 %


16.1 %



10.0 %


13.5 %


16.5 %


16.6 %


14.3 %


Imaging & Identification

20.1 %


16.7 %


19.5 %


18.1 %


18.6 %



20.9 %


20.5 %


22.4 %


20.9 %


21.2 %


Pumps & Process Solutions 1

20.7 %


21.9 %


25.8 %


23.5 %


23.1 %



4.5 %


22.5 %


22.7 %


21.8 %


17.9 %


Refrigeration & Food Equipment 2

7.5 %


3.9 %


10.9 %


8.1 %


7.8 %



7.4 %


11.5 %


9.5 %


4.7 %


8.5 %


Total segment operating margin

15.9 %


14.1 %


17.9 %


16.2 %


16.1 %



11.6 %


16.8 %


17.4 %


16.3 %


15.6 %














DEPRECIATION AND AMORTIZATION EXPENSE

Engineered Products

$

10,122


$

9,722


$

10,717


$

12,042


$

42,603



$

10,359


$

10,452


$

10,095


$

10,126


$

41,032


Fueling Solutions

18,339


17,968


18,014


18,482


72,803



17,879


18,945


18,744


19,477


75,045


Imaging & Identification

8,769


9,224


9,809


10,576


38,378



7,435


7,413


7,360


8,322


30,530


Pumps & Process Solutions

18,336


17,572


17,206


19,077


72,191



17,548


16,201


16,018


17,817


67,584


Refrigeration & Food Equipment

11,548


11,421


12,081


11,491


46,541



13,011


12,777


13,047


12,525


51,360


Corporate

1,638


1,696


1,662


1,539


6,535



1,506


1,981


1,523


1,726


6,736


Total depreciation and amortization expense

$

68,752


$

67,603


$

69,489


$

73,207


$

279,051



$

67,738


$

67,769


$

66,787


$

69,993


$

272,287














1 Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l.

2 Q1, Q2, Q3, and FY 2020 include a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain, respectively, on the sale of the Chino, California branch of The AMS Group ("AMS Chino"). Q2 and FY 2020 also include a $3,640 write-off of assets.

3 Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt.

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

(unaudited)(in thousands, except per share data*)


Earnings Per Share













2020


2019


Q1

Q2

Q3

Q4

FY 2020


Q1

Q2

Q3

Q4

FY 2019

Net earnings per share:












Basic

$

1.22


$

0.87


$

1.39


$

1.27


$

4.74



$

0.73


$

1.36


$

1.42


$

1.16


$

4.67


Diluted

$

1.21


$

0.86


$

1.38


$

1.25


$

4.70



$

0.72


$

1.35


$

1.40


$

1.15


$

4.61














Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:

Net earnings

$

176,279


$

124,766


$

200,300


$

182,106


$

683,451



$

105,705


$

198,085


$

206,006


$

168,122


$

677,918














Weighted average shares outstanding:










Basic

144,259


143,955


144,032


143,954


144,050



145,087


145,366


145,372


144,966


145,198


Diluted

145,782


144,995


145,289


145,355


145,393



146,911


147,179


147,051


146,790


146,992














* Per share data may be impacted by rounding.



DOVER CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)(in thousands)



December 31, 2020


December 31, 2019

Assets:




Cash and cash equivalents

$

513,075



$

397,253


Receivables, net of allowances

1,137,223



1,217,190


Inventories, net

835,804



806,141


Prepaid and other current assets

133,085



127,846


Property, plant and equipment, net

897,326



842,318


Goodwill

4,072,542



3,783,347


Intangible assets, net

1,083,772



1,055,014


Other assets and deferred charges

479,247



440,368


Total assets

$

9,152,074



$

8,669,477






Liabilities and Stockholders' Equity:




Notes payable

$



$

84,700


Payables, accrued expenses and other current liabilities

1,738,798



1,663,391


Deferred taxes and other non-current liabilities

918,674



903,010


Long-term debt

3,108,829



2,985,716


Stockholders' equity

3,385,773



3,032,660


Total liabilities and stockholders' equity

$

9,152,074



$

8,669,477


DOVER CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)(in thousands)



Years Ended December 31,


2020


2019

Operating activities:




Net earnings

$

683,451



$

677,918


Loss on assets held for sale



46,946


Loss on extinguishment of debt



23,543


Depreciation and amortization

279,051



272,287


Stock-based compensation

25,026



29,702


Contributions to employee benefit plans

(19,801)



(21,436)


Gain on sale of businesses

(5,213)




Net change in assets and liabilities

142,296



(83,654)


Net cash provided by operating activities

1,104,810



945,306






Investing activities:




Additions to property, plant and equipment

(165,692)



(186,804)


Acquisitions (net of cash and cash equivalents acquired)

(335,786)



(215,687)


Proceeds from the sale of property, plant and equipment

7,207



4,168


Proceeds from the sale of businesses

15,400



24,218


Other

(2,508)



(10,150)


Net cash used in investing activities

(481,379)



(384,255)






Financing activities:




Change in commercial paper and notes payable, net

(84,700)



(135,650)


Net increase in long-term debt



42,357


Dividends to stockholders

(284,312)



(282,197)


Purchase of common stock

(106,279)



(143,280)


Payments to settle employee tax obligations on exercise

(28,476)



(37,370)


Other

(2,523)



(1,902)


Net cash used in financing activities

(506,290)



(558,042)






Effect of exchange rate changes on cash

(1,319)



(1,977)






Net increase in cash and cash equivalents

115,822



1,032


Cash and cash equivalents at beginning of period

397,253



396,221


Cash and cash equivalents at end of period

$

513,075



$

397,253


DOVER CORPORATION

QUARTERLY ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)

(unaudited)(in thousands, except per share data*)


Non-GAAP Reconciliations



2020


2019


Q1

Q2

Q3

Q4

FY 2020


Q1

Q2

Q3

Q4

FY 2019

Adjusted net earnings:












Net earnings

$

176,279


$

124,766


$

200,300


$

182,106


$

683,451



$

105,705


$

198,085


$

206,006


$

168,122


$

677,918


Acquisition-related amortization, pre-tax 1

34,062


34,101


35,325


35,027


138,515



35,635


34,997


34,244


33,460


138,336


Acquisition-related amortization, tax impact 2

(8,411)


(8,451)


(8,810)


(8,695)


(34,367)



(8,964)


(8,777)


(8,624)


(8,403)


(34,768)


Rightsizing and other costs, pre-tax 3

7,859


16,840


5,848


20,925


51,472



3,963


6,457


3,807


17,926


32,153


Rightsizing and other costs, tax impact 2

(1,605)


(3,452)


(1,343)


(4,402)


(10,802)



(861)


(1,377)


(806)


(3,745)


(6,789)


Loss on extinguishment of debt, pre-tax 4










23,543


23,543


Loss on extinguishment of debt, tax impact 2










(5,163)


(5,163)


Loss on assets held for sale 5







46,946





46,946


(Gain) loss on disposition, pre-tax 6

(6,551)


781


557



(5,213)








(Gain) loss on disposition, tax-impact 2

1,592


(190)


(135)



1,267








Adjusted net earnings

$

203,225


$

164,395


$

231,742


$

224,961


$

824,323



$

182,424


$

229,385


$

234,627


$

225,740


$

872,176














Adjusted diluted net earnings per share:










Diluted net earnings per share

$

1.21


$

0.86


$

1.38


$

1.25


$

4.70



$

0.72


$

1.35


$

1.40


$

1.15


$

4.61


Acquisition-related amortization, pre-tax 1

0.23


0.24


0.24


0.24


0.95



0.24


0.24


0.23


0.23


0.94


Acquisition-related amortization, tax impact 2

(0.06)


(0.06)


(0.06)


(0.06)


(0.24)



(0.06)


(0.06)


(0.06)


(0.06)


(0.24)


Rightsizing and other costs, pre-tax 3

0.05


0.12


0.04


0.14


0.35



0.03


0.04


0.03


0.12


0.22


Rightsizing and other costs, tax impact 2

(0.01)


(0.02)


(0.01)


(0.03)


(0.07)



(0.01)


(0.01)


(0.01)


(0.03)


(0.06)


Loss on extinguishment of debt, pre-tax 4










0.16


0.16


Loss on extinguishment of debt, tax impact 2










(0.04)


(0.04)


Loss on assets held for sale 5







0.32





0.32


(Gain) loss on disposition, pre-tax 6

(0.04)





(0.03)








(Gain) loss on disposition, tax-impact 2

0.01





0.01








Adjusted diluted net earnings per share

$

1.39


$

1.13


$

1.60


$

1.55


$

5.67



$

1.24


$

1.56


$

1.60


$

1.54


$

5.93














1 Includes amortization on acquisition-related intangible assets and inventory step-up.

2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.

3 Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other asset charges.

4 Represents a loss on early extinguishment of €300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021.

5 Represents a loss on assets held for sale of Finder Pompe S.r.l. ("Finder"). Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business.

6 Represents a (gain) loss on the disposition of AMS Chino within the Refrigeration & Food Equipment segment, including working capital adjustments.













* Per share data and totals may be impacted by rounding.

DOVER CORPORATION

QUARTERLY SEGMENT ADJUSTED EBIT AND ADJUSTED EBITDA (NON-GAAP)

(unaudited)(in thousands)


Non-GAAP Reconciliations



2020


2019


Q1

Q2

Q3

Q4

FY 2020


Q1

Q2

Q3

Q4

FY 2019

ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA









Engineered Products:












Segment earnings (EBIT)

$

69,094


$

47,702


$

64,890


$

56,481


$

238,167



$

67,119


$

77,129


$

74,367


$

73,233


$

291,848


Rightsizing and other costs

361


4,169


2,375


4,625


11,530



80


1,125


590


1,355


3,150


Adjusted EBIT - Segment

69,455


51,871


67,265


61,106


249,697



67,199


78,254


74,957


74,588


294,998


Adjusted EBIT %

17.0 %


15.2 %


17.4 %


15.5 %


16.3 %



16.0 %


18.2 %


17.6 %


17.7 %


17.4 %


Adjusted D&A 2

10,122


9,722


10,651


10,193


40,688



10,359


9,855


10,095


10,126


40,435


Adjusted EBITDA - Segment

$

79,577


$

61,593


$

77,916


$

71,299


$

290,385



$

77,558


$

88,109


$

85,052


$

84,714


$

335,433


Adjusted EBITDA %

19.5 %


18.0 %


20.2 %


18.1 %


19.0 %



18.5 %


20.5 %


19.9 %


20.1 %


19.8 %


Fueling Solutions:












Segment earnings (EBIT)

$

53,498


$

47,214


$

66,601


$

69,661


$

236,974



$

37,230


$

52,637


$

68,069


$

73,937


$

231,873


Rightsizing and other costs

1,493


868


1,615


2,727


6,703



752


1,768


811


1,554


4,885


Adjusted EBIT - Segment

54,991


48,082


68,216


72,388


243,677



37,982


54,405


68,880


75,491


236,758


Adjusted EBIT %

15.3 %


14.7 %


17.9 %


17.7 %


16.5 %



10.2 %


13.9 %


16.7 %


17.0 %


14.6 %


Adjusted D&A 2

18,339


17,783


18,014


18,225


72,361



17,879


18,945


18,744


19,477


75,045


Adjusted EBITDA - Segment

$

73,330


$

65,865


$

86,230


$

90,613


$

316,038



$

55,861


$

73,350


$

87,624


$

94,968


$

311,803


Adjusted EBITDA %

20.4 %


20.2 %


22.7 %


22.1 %


21.4 %



15.0 %


18.8 %


21.3 %


21.4 %


19.2 %


Imaging & Identification:












Segment earnings (EBIT)

$

51,482


$

38,046


$

51,928


$

52,017


$

193,473



$

55,955


$

54,641


$

61,655


$

57,233


$

229,484


Rightsizing and other costs

264


(527)


99


6,191


6,027



389


1,268


301


4,392


6,350


Adjusted EBIT - Segment

51,746


37,519


52,027


58,208


199,500



56,344


55,909


61,956


61,625


235,834


Adjusted EBIT %

20.2 %


16.5 %


19.6 %


20.2 %


19.2 %



21.0 %


21.0 %


22.5 %


22.5 %


21.7 %


Adjusted D&A 2

8,769


9,224


9,809


10,201


38,003



7,336


7,317


7,286


7,892


29,831


Adjusted EBITDA - Segment

$

60,515


$

46,743


$

61,836


$

68,409


$

237,503



$

63,680


$

63,226


$

69,242


$

69,517


$

265,665


Adjusted EBITDA %

23.6 %


20.5 %


23.3 %


23.8 %


22.9 %



23.7 %


23.7 %


25.2 %


25.3 %


24.5 %


Pumps & Process Solutions:












Segment earnings (EBIT)

$

66,079


$

67,702


$

89,786


$

81,709


$

305,276



$

14,991


$

76,278


$

77,433


$

71,379


$

240,081


Rightsizing and other costs

3,846


4,691


1,771


3,128


13,436



414


903


943


3,868


6,128


Loss on assets held for sale 1







46,946





46,946


Adjusted EBIT - Segment

69,925


72,393


91,557


84,837


318,712



62,351


77,181


78,376


75,247


293,155


Adjusted EBIT %

21.9 %


23.4 %


26.3 %


24.4 %


24.1 %



18.9 %


22.8 %


23.0 %


22.9 %


21.9 %


Adjusted D&A 2

16,230


16,816


17,206


17,565


67,817



17,548


16,199


16,018


17,004


66,769


Adjusted EBITDA - Segment

$

86,155


$

89,209


$

108,763


$

102,402


$

386,529



$

79,899


$

93,380


$

94,394


$

92,251


$

359,924


Adjusted EBITDA %

27.0 %


28.9 %


31.3 %


29.5 %


29.2 %



24.2 %


27.6 %


27.7 %


28.1 %


26.9 %


Refrigeration & Food Equipment:











Segment earnings (EBIT)

$

23,529


$

11,459


$

40,159


$

27,725


$

102,872



$

24,807


$

44,375


$

35,211


$

14,439


$

118,832


Rightsizing and other costs

704


6,016


(971)


726


6,475



2,293


666


840


2,243


6,042


(Gain) loss on disposition 3

(6,551)


781


557



(5,213)








Adjusted EBIT - Segment

17,682


18,256


39,745


28,451


104,134



27,100


45,041


36,051


16,682


124,874


Adjusted EBIT %

5.7 %


6.2 %


10.8 %


8.3 %


7.9 %



8.1 %


11.7 %


9.7 %


5.4 %


8.9 %


Adjusted D&A 2

11,548


11,421


12,081


11,491


46,541



13,011


12,777


13,047


12,525


51,360


Adjusted EBITDA - Segment

$

29,230


$

29,677


$

51,826


$

39,942


$

150,675



$

40,111


$

57,818


$

49,098


$

29,207


$

176,234


Adjusted EBITDA %

9.4 %


10.1 %


14.1 %


11.7 %


11.4 %



12.0 %


15.0 %


13.3 %


9.5 %


12.6 %


Total Segments:











Segment earnings (EBIT) 4

$

263,682


$

212,123


$

313,364


$

287,593


$

1,076,762



$

200,102


$

305,060


$

316,735


$

290,221


$

1,112,118


Rightsizing and other costs

6,668


15,217


4,889


17,397


44,171



3,928


5,730


3,485


13,412


26,555


Loss on assets held for sale 1







46,946





46,946


(Gain) loss on disposition 3

(6,551)


781


557



(5,213)








Adjusted EBIT - Segment 5

263,799


228,121


318,810


304,990


1,115,720



250,976


310,790


320,220


303,633


1,185,619


Adjusted EBIT % 4

15.9 %


15.2 %


18.2 %


17.1 %


16.7 %



14.5 %


17.2 %


17.5 %


17.1 %


16.6 %


Adjusted D&A 2

65,008


64,966


67,761


67,675


265,410



66,133


65,093


65,190


67,024


263,440


Adjusted EBITDA - Segment 5

$

328,807


$

293,087


$

386,571


$

372,665


$

1,381,130



$

317,109


$

375,883


$

385,410


$

370,657


$

1,449,059


Adjusted EBITDA % 5

19.9 %


19.5 %


22.1 %


20.9 %


20.7 %



18.4 %


20.7 %


21.1 %


20.9 %


20.3 %


1 Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder.

2 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.

3 Q1, Q2, Q3, and FY 2020 includes a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain on the sale of a business for AMS Chino, respectively.

4 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.

5 Refer to Non-GAAP Disclosures section for definition.

DOVER CORPORATION

REVENUE GROWTH FACTORS (NON-GAAP)

(unaudited)(in thousands, except per share data*)


Non-GAAP Reconciliations


Revenue Growth Factors



2020


Q1


Q2


Q3


Q4


Q4 YTD

Organic










Engineered Products

(1.9)

%


(20.1)

%


(10.4)

%


(8.8)

%


(10.3)

%

Fueling Solutions

(2.6)

%


(14.8)

%


(7.9)

%


(9.4)

%


(8.8)

%

Imaging & Identification

(4.3)

%


(14.0)

%


(7.6)

%


(2.9)

%


(7.2)

%

Pumps & Process Solutions

(1.1)

%


(8.8)

%


(0.9)

%


1.8

%


(2.3)

%

Refrigeration & Food Equipment

(4.3)

%


(20.2)

%


2.6

%


13.2

%


(3.0)

%

Total Organic

(2.7)

%


(16.0)

%


(5.1)

%


(2.3)

%


(6.6)

%

Acquisitions

0.8

%


0.7

%


1.0

%


1.2

%


1.0

%

Dispositions

(0.7)

%


(0.7)

%


(0.8)

%


(0.5)

%


(0.7)

%

Currency translation

(1.4)

%


(1.2)

%


0.7

%


1.9

%


%

Total*

(4.0)

%

%

(17.2)

%


(4.2)

%


0.3

%


(6.3)

%

















* Totals may be impacted by rounding.


2020


Q1


Q2


Q3


Q4


Q4 YTD

Organic










United States

3.5

%


(10.3)

%


(4.2)

%


(1.0)

%


(3.1)

%

Other Americas

(4.7)

%


(33.5)

%


(4.7)

%


(1.4)

%


(12.1)

%

Europe

(7.4)

%


(19.5)

%


(4.2)

%


(2.5)

%


(8.5)

%

Asia

(19.2)

%


(14.3)

%


(10.1)

%


(11.4)

%


(13.5)

%

Other

(8.8)

%


(33.1)

%


(5.8)

%


10.9

%


(9.3)

%

Total Organic

(2.7)

%


(16.0)

%


(5.1)

%


(2.3)

%


(6.6)

%

Acquisitions

0.8

%


0.7

%


1.0

%


1.2

%


1.0

%

Dispositions

(0.7)

%


(0.7)

%


(0.8)

%


(0.5)

%


(0.7)

%

Currency translation

(1.4)

%


(1.2)

%


0.7

%


1.9

%


%

Total*

(4.0)

%


(17.2)

%


(4.2)

%


0.3

%


(6.3)

%


* Totals may be impacted by rounding.

Adjusted Guidance Reconciliation



2020 Actual


2021 Guidance

Adjusted net earnings per share*:




Net earnings (GAAP)

$

4.70



$5.42 - $5.62


Acquisition-related amortization, net

0.72



0.72


Rightsizing and other costs, net

0.28



0.11


Gain on disposition, net

(0.03)




Adjusted net earnings (Non-GAAP)

$

5.67



$6.25 - $6.45



* Per share data and totals may be impacted by rounding.

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)



2020


2019


Q1

Q2

Q3

Q4

FY 2020


Q1

Q2

Q3

Q4

FY 2019

BOOKINGS
























Engineered Products

$

414,972


$

278,373


$

381,139


$

484,002


$

1,558,486



$

427,697


$

397,420


$

426,059


$

457,145


$

1,708,321


Fueling Solutions

373,070


311,498


383,902


403,400


1,471,870



343,083


394,256


450,727


425,698


1,613,764


Imaging & Identification

272,604


221,315


266,423


304,756


1,065,098



267,762


264,175


284,527


276,451


1,092,915


Pumps & Process Solutions

369,403


275,872


323,801


365,262


1,334,338



369,801


375,905


329,642


318,482


1,393,830


Refrigeration & Food Equipment

355,157


326,400


449,549


379,393


1,510,499



376,998


384,365


323,422


361,970


1,446,755


Intra-segment eliminations

(375)


(460)


(926)


(425)


(2,186)



(725)


(490)


(528)


872


(871)


Total consolidated bookings

$

1,784,831


$

1,412,998


$

1,803,888


$

1,936,388


$

6,938,105



$

1,784,616


$

1,815,631


$

1,813,849


$

1,840,618


$

7,254,714














BACKLOG
























Engineered Products

$

453,867


$

378,874


$

373,458


$

463,701




$

451,335


$

418,154


$

416,025


$

452,142



Fueling Solutions

211,518


199,305


204,574


201,521




185,847


186,202


223,081


205,842



Imaging & Identification

170,119


168,904


171,158


192,785




118,177


116,810


121,877


125,775



Pumps & Process Solutions

397,969


379,090


361,631


390,238




353,066


378,427


361,478


353,073



Refrigeration & Food Equipment

356,133


390,368


472,140


510,498




311,632


310,454


262,870


320,577



Intra-segment eliminations

(159)


(367)


(269)


(192)




(403)


(141)


(252)


(249)



Total consolidated backlog

$

1,589,447


$

1,516,174


$

1,582,692


$

1,758,551




$

1,419,654


$

1,409,906


$

1,385,079


$

1,457,160















Bookings Growth Factors



2020


Q1


Q2


Q3


Q4


Q4 YTD

Organic