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Dover Reports Second Quarter 2021 Results; Raises Full Year Guidance

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DOWNERS GROVE, Ill., July 20, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2021.

(PRNewsfoto/Dover)
(PRNewsfoto/Dover)



Three Months Ended June 30,


Six Months Ended June 30,

($ in millions, except per share data)


2021


2020


% Change


2021


2020


% Change

U.S. GAAP

Revenue


$

2,032



$

1,499



36

%


$

3,900



$

3,155



24

%

Net earnings 1


265



125



112

%


497



301



65

%

Diluted EPS


1.82



0.86



112

%


3.43



2.07



66

%














Non-GAAP

Organic revenue change






30

%






19

%

Adjusted net earnings 2


299



164



82

%


562



368



53

%

Adjusted diluted EPS


2.06



1.13



82

%


3.87



2.53



53

%


1 Q2 2021 and 2020 net earnings include rightsizing and other costs of $8.2 million and $13.4 million, respectively. Q2 2020 also includes a $0.6 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 net earnings include rightsizing and other costs of $11.3 million and $19.6 million, respectively. Year-to-date 2020 also includes a $4.4 million non-cash gain on the sale of AMS Chino.


2 Q2 2021 and 2020 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.6 million and $25.7 million, respectively, and rightsizing and other costs of $8.2 million and $13.4 million, respectively. Q2 2020 also excludes a $0.6 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 adjusted net earnings exclude acquisition-related amortization costs of $53.4 million and $51.3 million, respectively, and rightsizing and other costs of $11.3 million and $19.6 million, respectively. Year-to-date 2020 also excludes a $4.4 million non-cash gain on the sale of AMS Chino.

For the quarter ended June 30, 2021, Dover generated revenue of $2.0 billion, an increase of 36% (+30% organic) compared to the second quarter of the prior year. GAAP net earnings of $265 million increased 112%, and GAAP diluted EPS of $1.82 was also up 112%. On an adjusted basis, net earnings of $299 million increased 82% and adjusted diluted EPS of $2.06 was also up 82% versus the comparable quarter of the prior year.

For the six months ended June 30, 2021, Dover generated revenue of $3.9 billion, an increase of 24% (+19% organic) compared to the first six months of the prior year. GAAP net earnings of $497 million increased by 65%, and GAAP diluted EPS of $3.43 was up 66% year-over-year. On an adjusted basis, net earnings of $562 million increased 53%, and adjusted diluted EPS of $3.87 was also up 53% versus the comparable period of 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, "We performed well again this quarter as new order activity remained strong and margin improvement continued its solid trajectory across all segments. Our portfolio is performing above pre-pandemic levels in terms of revenue and margin, and our record-high backlog provides visibility into the second half of the year, and in some of our businesses into 2022.

"During the quarter we saw top-line growth across all of our segments, with the largest contributions to the year-over-year increase from pumps and process solutions, fueling solutions, food retail, marking & coding and automotive aftermarket businesses. We are encouraged by the demand growth in compressor components, foodservice, and textile printing, and we expect continued recovery in these markets over the balance of the year.

"Our teams have done a commendable job in the first half navigating logistics bottlenecks, component and labor shortages, and cost inflation to meet end market demand and drive solid margin conversion. Our forecast for the balance of the year reflects the expectation that logistics constraints and input cost inflation will neither deteriorate nor improve materially. Despite this dynamic, we believe that our localized manufacturing and sourcing strategy and diverse business mix give us distinct advantages to win in the current demand environment.

"We also have continued to invest organically in capacity expansions in our high-growth businesses and productivity improvements across our portfolio. Our center-led initiatives are continuing to drive cost synergies across our portfolio companies allowing them to concentrate on winning in the marketplace and driving growth. Acquisition activity remains robust and we recently acquired three attractive bolt-on businesses in single-use pumps, brand protection software and IoT dispensing solutions.

"As we look toward the second half of the year, our robust backlog levels and sustained strong bookings pace give us confidence in our durable top-line trajectory. We also remain confident in our ability to execute operationally to drive portfolio profitability. As a result, we are raising our full year revenue and EPS guidance."

FULL YEAR 2021 GUIDANCE UPDATE:

Guidance for full year 2021 revenue growth was raised to 15% to 17%. EPS guidance for full year 2021 was raised to $6.45 to $6.55 ($7.30 to $7.40 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its second quarter and year-to-date 2021 results as well as updated 2021 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, July 20, 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 second quarter 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 over $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 65 years, our team of over 24,000 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, 2020, 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 - SECOND QUARTER 2021


DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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



Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Revenue

$

2,031,676



$

1,499,175



$

3,899,577



$

3,155,114


Cost of goods and services

1,259,504



947,577



2,405,857



1,991,273


Gross profit

772,172



551,598



1,493,720



1,163,841


Selling, general, and administrative expenses

428,042



366,740



837,040



753,681


Operating earnings

344,130



184,858



656,680



410,160


Interest expense

26,661



28,711



53,484



55,979


Interest income

(942)



(728)



(1,622)



(1,911)


Gain on sale of a business



781





(5,770)


Other income, net

(4,933)



(735)



(7,776)



(8,467)


Earnings before provision for income taxes

323,344



156,829



612,594



370,329


Provision for income taxes

58,836



32,063



115,317



69,284


Net earnings

$

264,508



$

124,766



$

497,277



$

301,045










Net earnings per share:








Basic

$

1.84



$

0.87



$

3.46



$

2.09


Diluted

$

1.82



$

0.86



$

3.43



$

2.07


Weighted average shares outstanding:








Basic

143,941



143,955



143,854



144,107


Diluted

145,118



144,995



145,040



145,359










Dividends paid per common share

$

0.495



$

0.49



$

0.99



$

0.98










* Per share data may be impacted by rounding.








DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

REVENUE











Engineered Products

$

428,127


$

442,091


$

870,218



$

408,160


$

342,380


$

750,540


$

386,562


$

394,175


$

1,531,277


Fueling Solutions

389,678


437,042


826,720



359,982


326,495


686,477


380,511


409,294


1,476,282


Imaging & Identification

284,328


294,076


578,404



256,765


227,977


484,742


265,690


287,746


1,038,178


Pumps & Process Solutions

394,377


428,701


823,078



319,536


309,095


628,631


347,875


347,497


1,324,003


Refrigeration & Food Equipment

372,077


430,506


802,583



311,913


293,527


605,440


368,395


342,255


1,316,090


Intra-segment eliminations

(686)


(740)


(1,426)



(417)


(299)


(716)


(777)


(577)


(2,070)


Total consolidated revenue

$

1,867,901


$

2,031,676


$

3,899,577



$

1,655,939


$

1,499,175


$

3,155,114


$

1,748,256


$

1,780,390


$

6,683,760













NET EARNINGS











Segment Earnings:











Engineered Products

$

68,779


$

62,720


$

131,499



$

69,094


$

47,702


$

116,796


$

64,890


$

56,481


$

238,167


Fueling Solutions

66,480


78,755


145,235



53,498


47,214


100,712


66,601


69,661


236,974


Imaging & Identification

56,992


60,747


117,739



51,482


38,046


89,528


51,928


52,017


193,473


Pumps & Process Solutions

123,645


138,632


262,277



66,079


67,702


133,781


89,786


81,709


305,276


Refrigeration & Food Equipment 1

38,117


48,971


87,088



23,529


11,459


34,988


40,159


27,725


102,872


Total segment earnings (EBIT)

354,013


389,825


743,838



263,682


212,123


475,805


313,364


287,593


1,076,762


Corporate expense / other

38,620


40,762


79,382



24,097


27,311


51,408


35,603


39,651


126,662


Interest expense

26,823


26,661


53,484



27,268


28,711


55,979


27,724


28,234


111,937


Interest income

(680)


(942)


(1,622)



(1,183)


(728)


(1,911)


(960)


(700)


(3,571)


Earnings before provision for income taxes

289,250


323,344


612,594



213,500


156,829


370,329


250,997


220,408


841,734


Provision for income taxes

56,481


58,836


115,317



37,221


32,063


69,284


50,697


38,302


158,283


Net earnings

$

232,769


$

264,508


$

497,277



$

176,279


$

124,766


$

301,045


$

200,300


$

182,106


$

683,451













SEGMENT MARGIN









Engineered Products

16.1 %


14.2 %


15.1 %



16.9 %


13.9 %


15.6 %


16.8 %


14.3 %


15.6 %


Fueling Solutions

17.1 %


18.0 %


17.6 %



14.9 %


14.5 %


14.7 %


17.5 %


17.0 %


16.1 %


Imaging & Identification

20.0 %


20.7 %


20.4 %



20.1 %

...

16.7 %


18.5 %


19.5 %


18.1 %


18.6 %


Pumps & Process Solutions

31.4 %


32.3 %


31.9 %



20.7 %


21.9 %


21.3 %


25.8 %


23.5 %


23.1 %


Refrigeration & Food Equipment 1

10.2 %


11.4 %


10.9 %



7.5 %


3.9 %


5.8 %


10.9 %


8.1 %


7.8 %


Total segment operating margin

19.0 %


19.2 %


19.1 %



15.9 %


14.1 %


15.1 %


17.9 %


16.2 %


16.1 %













DEPRECIATION AND AMORTIZATION EXPENSE

Engineered Products

$

14,047


$

11,981


$

26,028



$

10,122


$

9,722


$

19,844


$

10,717


$

12,042


$

42,603


Fueling Solutions

19,269


19,475


38,744



18,339


17,968


36,307


18,014


18,482


72,803


Imaging & Identification

9,593


9,294


18,887



8,769


9,224


17,993


9,809


10,576


38,378


Pumps & Process Solutions

16,926


16,866


33,792



18,336


17,572


35,908


17,206


19,077


72,191


Refrigeration & Food Equipment

12,096


12,077


24,173



11,548


11,421


22,969


12,081


11,491


46,541


Corporate

1,875


1,826


3,701



1,638


1,696


3,334


1,662


1,539


6,535


Total depreciation and amortization expense

$

73,806


$

71,519


$

145,325



$

68,752


$

67,603


$

136,355


$

69,489


$

73,207


$

279,051




1 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.

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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


Earnings Per Share












2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

Net earnings per share:











Basic

$

1.62


$

1.84


$

3.46



$

1.22


$

0.87


$

2.09


$

1.39


$

1.27


$

4.74


Diluted

$

1.61


$

1.82


$

3.43



$

1.21


$

0.86


$

2.07


$

1.38


$

1.25


$

4.70













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

Net earnings

$

232,769


$

264,508


$

497,277



$

176,279


$

124,766


$

301,045


$

200,300


$

182,106


$

683,451













Weighted average shares outstanding:








Basic

143,765


143,941


143,854



144,259


143,955


144,107


144,032


143,954


144,050


Diluted

144,938


145,118


145,040



145,782


144,995


145,359


145,289


145,355


145,393




* Per share data may be impacted by rounding.

DOVER CORPORATION

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

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


Non-GAAP Reconciliations


2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

Adjusted net earnings:











Net earnings

$

232,769


$

264,508


$

497,277



$

176,279


$

124,766


$

301,045


$

200,300


$

182,106


$

683,451


Acquisition-related amortization, pre-tax 1

35,516


35,162


70,678



34,062


34,101


68,163


35,325


35,027


138,515


Acquisition-related amortization, tax impact 2

(8,720)


(8,571)


(17,291)



(8,411)


(8,451)


(16,862)


(8,810)


(8,695)


(34,367)


Rightsizing and other costs, pre-tax 3

4,162


10,779


14,941



7,859


16,840


24,699


5,848


20,925


51,472


Rightsizing and other costs, tax impact 2

(1,031)


(2,597)


(3,628)



(1,605)


(3,452)


(5,057)


(1,343)


(4,402)


(10,802)


(Gain) loss on disposition, pre-tax 4





(6,551)


781


(5,770)


557



(5,213)


(Gain) loss on disposition, tax-impact 2





1,592


(190)


1,402


(135)



1,267


Adjusted net earnings

$

262,696


$

299,281


$

561,977



$

203,225


$

164,395


$

367,620


$

231,742


$

224,961


$

824,323













Adjusted diluted net earnings per share:









Diluted net earnings per share

$

1.61


$

1.82


$

3.43



$

1.21


$

0.86


$

2.07


$

1.38


$

1.25


$

4.70


Acquisition-related amortization, pre-tax 1

0.25


0.24


0.49



0.23


0.24


0.47


0.24


0.24


0.95


Acquisition-related amortization, tax impact 2

(0.06)


(0.06)


(0.12)



(0.06)


(0.06)


(0.12)


(0.06)


(0.06)


(0.24)


Rightsizing and other costs, pre-tax 3

0.03


0.07


0.10



0.05


0.12


0.17


0.04


0.14


0.35


Rightsizing and other costs, tax impact 2

(0.01)


(0.02)


(0.03)



(0.01)


(0.02)


(0.03)


(0.01)


(0.03)


(0.07)


(Gain) loss on disposition, pre-tax 4





(0.04)



(0.04)




(0.03)


(Gain) loss on disposition, tax-impact 2





0.01



0.01




0.01


Adjusted diluted net earnings per share

$

1.81


$

2.06


$

3.87



$

1.39


$

1.13


$

2.53


$

1.60


$

1.55


$

5.67




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 (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


2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA








Engineered Products:











Segment earnings (EBIT)

$

68,779


$

62,720


$

131,499



$

69,094


$

47,702


$

116,796


$

64,890


$

56,481


$

238,167


Rightsizing and other costs

4,019


4,654


8,673



361


4,169


4,530


2,375


4,625


11,530


Adjusted EBIT - Segment

72,798


67,374


140,172



69,455


51,871


121,326


67,265


61,106


249,697


Adjusted EBIT %

17.0 %


15.2 %


16.1 %



17.0 %


15.2 %


16.2 %


17.4 %


15.5 %


16.3 %


Adjusted D&A 1

10,594


9,695


20,289



10,122


9,722


19,844


10,651


10,193


40,688


Adjusted EBITDA - Segment

$

83,392


$

77,069


$

160,461



$

79,577


$

61,593


$

141,170


$

77,916


$

71,299


$

290,385


Adjusted EBITDA %

19.5 %


17.4 %


18.4 %



19.5 %


18.0 %


18.8 %


20.2 %


18.1 %


19.0 %


Fueling Solutions:











Segment earnings (EBIT)

$

66,480


$

78,755


$

145,235



$

53,498


$

47,214


$

100,712


$

66,601


$

69,661


$

236,974


Rightsizing and other costs

58


1,657


1,715



1,493


868


2,361


1,615


2,727


6,703


Adjusted EBIT - Segment

66,538


80,412


146,950



54,991


48,082


103,073


68,216


72,388


243,677


Adjusted EBIT %

17.1 %


18.4 %


17.8 %



15.3 %


14.7 %


15.0 %


17.9 %


17.7 %


16.5 %


Adjusted D&A 1

19,180


19,475


38,655



18,339


17,783


36,122


18,014


18,225


72,361


Adjusted EBITDA - Segment

$

85,718


$

99,887


$

185,605



$

73,330


$

65,865


$

139,195


$

86,230


$

90,613


$

316,038


Adjusted EBITDA %

22.0 %


22.9 %


22.5 %



20.4 %


20.2 %


20.3 %


22.7 %


22.1 %


21.4 %


Imaging & Identification:











Segment earnings (EBIT)

$

56,992


$

60,747


$

117,739



$

51,482


$

38,046


$

89,528


$

51,928


$

52,017


$

193,473


Rightsizing and other costs

682


178


860



264


(527)


(263)


99


6,191


6,027


Adjusted EBIT - Segment

57,674


60,925


118,599



51,746


37,519


89,265


52,027


58,208


199,500


Adjusted EBIT %

20.3 %


20.7 %


20.5 %



20.2 %


16.5 %


18.4 %


19.6 %


20.2 %


19.2 %


Adjusted D&A 1

9,218


9,184


18,402



8,769


9,224


17,993


9,809


10,201


38,003


Adjusted EBITDA - Segment

$

66,892


$

70,109


$

137,001



$

60,515


$

46,743


$

107,258


$

61,836


$

68,409


$

237,503


Adjusted EBITDA %

23.5 %


23.8 %


23.7 %



23.6 %


20.5 %


22.1 %


23.3 %


23.8 %


22.9 %


Pumps & Process Solutions:











Segment earnings (EBIT)

$

123,645


$

138,632


$

262,277



$

66,079


$

67,702


$

133,781


$

89,786


$

81,709


$

305,276


Rightsizing and other (benefits) costs

(2,006)


899


(1,107)



3,846


4,691


8,537


1,771


3,128


13,436


Adjusted EBIT - Segment

121,639


139,531


261,170



69,925


72,393


142,318


91,557


84,837


318,712


Adjusted EBIT %

30.8 %


32.5 %


31.7 %



21.9 %


23.4 %


22.6 %


26.3 %


24.4 %


24.1 %


Adjusted D&A 1

16,926


16,866


33,792



16,230


16,816


33,046


17,206


17,565


67,817


Adjusted EBITDA - Segment

$

138,565


$

156,397


$

294,962



$

86,155


$

89,209


$

175,364


$

108,763


$

102,402


$

386,529


Adjusted EBITDA %

35.1 %


36.5 %


35.8 %



27.0 %


28.9 %


27.9 %


31.3 %


29.5 %


29.2 %


Refrigeration & Food Equipment:










Segment earnings (EBIT)

$

38,117


$

48,971


$

87,088



$

23,529


$

11,459


$

34,988


$

40,159


$

27,725


$

102,872


Rightsizing and other (benefits) costs

(38)


2,539


2,501



704


6,016


6,720


(971)


726


6,475


(Gain) loss on disposition 2





(6,551)


781


(5,770)


557



(5,213)


Adjusted EBIT - Segment

38,079


51,510


89,589



17,682


18,256


35,938


39,745


28,451


104,134


Adjusted EBIT %

10.2 %


12.0 %


11.2 %



5.7 %


6.2 %


5.9 %


10.8 %


8.3 %


7.9 %


Adjusted D&A 1

11,745


12,077


23,822



11,548


11,421


22,969


12,081


11,491


46,541


Adjusted EBITDA - Segment

$

49,824


$

63,587


$

113,411



$

29,230


$

29,677


$

58,907


$

51,826


$

39,942


$

150,675


Adjusted EBITDA %

13.4 %


14.8 %


14.1 %



9.4 %


10.1 %


9.7 %


14.1 %


11.7 %


11.4 %


Total Segments:










Segment earnings (EBIT) 3

$

354,013


$

389,825


$

743,838



$

263,682


$

212,123


$

475,805


$

313,364


$

287,593


$

1,076,762


Rightsizing and other costs

2,715


9,927


12,642



6,668


15,217


21,885


4,889


17,397


44,171


(Gain) loss on disposition 2





(6,551)


781


(5,770)


557



(5,213)


Adjusted EBIT - Segment 4

356,728


399,752


756,480



263,799


228,121


491,920


318,810


304,990


1,115,720


Adjusted EBIT % 4

19.1 %


19.7 %


19.4 %



15.9 %



15.2 %



15.6 %


18.2 %


17.1 %


16.7 %


Adjusted D&A 1

67,663


67,297


134,960



65,008


64,966


129,974


67,761


67,675


265,410


Adjusted EBITDA - Segment 4

$

424,391


$

467,049


$

891,440



$

328,807


$

293,087


$

621,894


$

386,571


$

372,665


$

1,381,130


Adjusted EBITDA % 4

22.7 %


23.0 %


22.9 %



19.9 %


19.5 %


19.7 %


22.1 %


20.9 %


20.7 %




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

2 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.

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

4 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


2021


Q2


Q2 YTD

Organic




Engineered Products

25.4

%


12.9

%

Fueling Solutions

24.9

%


13.4

%

Imaging & Identification

20.2

%


11.4

%

Pumps & Process Solutions

33.6

%


25.8

%

Refrigeration & Food Equipment

43.5

%


30.5

%

Total Organic

29.7

%


18.7

%

Acquisitions

1.3

%


1.3

%

Dispositions

%


(0.2)

%

Currency translation

4.5

%


3.8

%

Total*

35.5

%


23.6

%


* Totals may be impacted by rounding.


2021


Q2

Organic


United States

25.0

%

Other Americas

49.6

%

Europe

29.8

%

Asia

37.6

%

Other

43.0

%

Total Organic

29.7

%

Acquisitions

1.3

%

Dispositions

%

Currency translation

4.5

%

Total*

35.5

%


* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation


Range

2021 Guidance for Earnings per Share (GAAP)

$

6.45



$

6.55


Acquisition-related amortization, net


0.74


Rightsizing and other costs, net


0.11


2021 Guidance for Adjusted Earnings per Share (Non-GAAP)

$

7.30



$

7.40


DOVER CORPORATION

QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)

(unaudited)(in thousands)


Quarterly Cash Flow


2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

Net Cash Flows Provided By (Used In):








Operating activities

$

177,184


$

260,073


$

437,257



$

75,863


$

271,809


$

347,672


$

339,247


$

417,891


$

1,104,810


Investing activities

(29,572)


(121,631)


(151,203)



(230,511)


(67,763)


(298,274)


(64,724)


(118,381)


(481,379)


Financing activities

(124,239)


(75,949)


(200,188)



280,954


(67,458)


213,496


(496,832)


(222,954)


(506,290)


Quarterly Free Cash Flow (Non-GAAP)


2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

Cash flow from operating activities1

$

177,184


$

260,073


$

437,257



$

75,863


$

271,809


$

347,672


$

339,247


$

417,891


$

1,104,810


Less: Capital expenditures

(31,260)


(41,971)


(73,231)



(40,172)


(38,999)


(79,171)


(44,393)


(42,128)


(165,692)


Free cash flow

$

145,924


$

218,102


$

364,026



$

35,691


$

232,810


$

268,501


$

294,854


$

375,763


$

939,118













Free cash flow as a percentage of
revenue

7.8 %

10.7 %

9.3 %


2.2 %

15.5 %

8.5 %

16.9 %

21.1 %

14.1 %












Free cash flow as a percentage of
net earnings

62.7 %

82.5 %

73.2 %


20.2 %

186.6 %

89.2 %

147.2 %

206.3 %

137.4 %













1 FY 2020 cash flow from operating activities reflects benefits from permitted deferrals of tax payments, most significantly in Q2, Q3, and Q4 and advanced payments on contracts, most significantly in Q3.

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)



2021


2020


Q1

Q2

Q2 YTD


Q1

Q2

Q2 YTD

Q3

Q4

FY 2020

BOOKINGS






















Engineered Products

$

528,310


$

497,200


$

1,025,510



$

414,972


$

278,373


$

693,345


$

381,139


$

484,002


$

1,558,486


Fueling Solutions

422,668


453,146


875,814



373,070


311,498


684,568


383,902


403,400


1,471,870


Imaging & Identification

293,614


299,608


593,222



272,604


221,315


493,919


266,423


304,756


1,065,098


Pumps & Process Solutions

551,365


521,010


1,072,375



369,403


275,872


645,275


323,801


365,262


1,334,338


Refrigeration & Food Equipment

537,326


606,545


1,143,871



355,157


326,400


681,557


449,549


379,393


1,510,499


Intra-segment eliminations

(863)


(498)


(1,361)



(375)


(460)


(835)


(926)


(425)


(2,186)


Total consolidated bookings

$

2,332,420


$

2,377,011


$

4,709,431



$

1,784,831


$

1,412,998


$

3,197,829


$

1,803,888


$

1,936,388


$

6,938,105













BACKLOG






















Engineered Products

$

562,557


$

613,517




$

453,867


$

378,874



$

373,458


$

463,701



Fueling Solutions

238,822


256,497




211,518


199,305



204,574


201,521



Imaging & Identification

198,556


206,125




170,119


168,904



171,158


192,785



Pumps & Process Solutions

539,097


634,477




397,969


379,090



361,631


390,238



Refrigeration & Food Equipment

677,309


854,188




356,133


390,368



472,140


510,498



Intra-segment eliminations

(544)


(262)




(159)


(367)



(269)


(192)



Total consolidated backlog

$

2,215,797


$

2,564,542




$

1,589,447


$

1,516,174



$

1,582,692


$

1,758,551














Bookings Growth Factors


2021


Q2


Q2 YTD

Organic




Engineered Products

73.5

%


44.4

%

Fueling Solutions

33.5

%


19.2

%

Imaging & Identification

26.6

%


12.0

%

Pumps & Process Solutions

81.7

%


59.7

%

Refrigeration & Food Equipment

83.1

%


66.2

%

Total Organic

61.2

%


41.7

%

Acquisitions

2.0

%


1.8

%

Dispositions

%


(0.2)

%

Currency translation

5.0

%


4.0

%

Total*

68.2

%


47.3

%


* Totals may be impacted by rounding.

Non-GAAP Measures Definitions

In an effort to provide investors with additional information regarding our results as determined by GAAP, management also discloses non-GAAP information that management believes provides useful information to investors. Adjusted net earnings, adjusted diluted net earnings per share, total segment earnings (EBIT), adjusted EBIT by segment, adjusted EBIT margin by segment, adjusted EBITDA by segment, adjusted EBITDA margin by segment, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of net earnings, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for net earnings, diluted net earnings per share, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies.

Adjusted net earnings represents net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs, and a gain/loss on disposition. We exclude after-tax acquisition-related amortization because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. We exclude the other items because they occur for reasons that may be unrelated to the Company's commercial performance during the period and/or Management believes they are not indicative of the Company's ongoing operating costs or gains in a given period.

Adjusted diluted net earnings per share represents adjusted net earnings divided by average diluted shares.

Total segment earnings (EBIT) is defined as net earnings before income taxes, net interest expense and corporate expenses. Total segment earnings (EBIT) margin is defined as total segment earnings (EBIT) divided by revenue.

Adjusted EBIT by Segment is defined as net earnings before income taxes, net interest expense, corporate expenses, rightsizing and other costs, and a 2020 gain/loss on disposition. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.

Adjusted EBITDA by Segment is defined as adjusted EBIT by segment plus depreciation and amortization, excluding depreciation and amortization included within rightsizing and other costs. Adjusted EBITDA Margin by Segment is defined as adjusted EBITDA by segment divided by segment revenue.

Management believes these measures are useful to investors to better understand the Company's ongoing profitability as it will better reflect the Company's core operating results, offer more transparency and facilitate easier comparability to prior and future periods and to its peers.

Free cash flow represents net cash provided by operating activities minus capital expenditures. Free cash flow as a percentage of revenue equals free cash flow divided by revenue. Free cash flow as a percentage of net earnings equals free cash flow divided by net earnings. Management believes that free cash flow and free cash flow ratios are important measures of operating performance because it provides management and investors a measurement of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock.

Management believes that reporting organic revenue growth, which excludes the impact of foreign currency exchange rates and the impact of acquisitions and dispositions, provides a useful comparison of our revenue and bookings performance and trends between periods.

Performance Measures Definitions

Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends.

Organic bookings represent total orders received from customers in the current reporting period excluding the impact of foreign currency exchange rates and the impact of acquisition and dispositions. This metric is an important measure of performance and an indicator of revenue order trends.

Backlog represents an estimate of the total remaining bookings at a point in time for which performance obligations have not yet have satisfied. This metric is useful as it represents the aggregate amount we expect to recognize as revenue in the future.

We use the above operational metrics in monitoring the performance of the business. We believe the operational metrics are useful to investors and other users of our financial information in assessing the performance of our segments.

Investor Contact:


Media Contact:

Andrey Galiuk


Adrian Sakowicz

Vice President - Corporate Development


Vice President - Communications

and Investor Relations


(630) 743-5039

(630) 743-5131


asakowicz@dovercorp.com

agaliuk@dovercorp.com



Cision
Cision

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SOURCE Dover