EX-99.1 2 a202104208-kexhibit991pr.htm EX-99.1

Document

Exhibit 99.1

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

DOVER REPORTS FIRST QUARTER 2021 RESULTS; RAISES 2021 ANNUAL GUIDANCE

DOWNERS GROVE, Ill., April 20, 2021 — Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the first quarter ended March 31, 2021.

						Three Months Ended March 31,
($ in millions, except per share data)						2021						2020						% Change
U.S. GAAP
Revenue						$	1,868					$	1,656					13		%
Net earnings 1						233						176						32		%
Diluted EPS						1.61						1.21						33		%
Non-GAAP
Organic revenue change																		9		%
Adjusted net earnings 2						263						203						29		%
Adjusted diluted EPS						1.81						1.39						30		%

1 Q1 2021 and 2020 net earnings include rightsizing and other costs of $3.1 million and $6.3 million, respectively. Q1 2020 also includes a $5.0 million non-cash after-tax gain on the sale of Chino.

2 Q1 2021 and 2020 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.8 million and $25.7 million, respectively, and rightsizing and other costs of $3.1 million and $6.3 million, respectively. Q1 2020 also excludes a $5.0 million non-cash after-tax gain on the sale of Chino.

For the quarter ended March 31, 2021, Dover generated revenue of $1.9 billion, an increase of 13% (+9% organic) compared to the first quarter of the prior year. GAAP net earnings of $233 million increased 32%, and GAAP diluted EPS of $1.61 was up 33%. On an adjusted basis, net earnings of $263 million increased 29% and adjusted diluted EPS of $1.81 was up 30% versus the comparable quarter 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, “Overall, we are off to an encouraging start with first quarter results that exceeded our forecasts. Our businesses capitalized on the improving demand conditions in their markets and delivered strong volume growth despite some notable supply chain disruptions during the quarter. Comparable operating margins increased in the quarter on volume leverage, favorable product mix, and continued progress on our center-led efficiency initiatives.

“Order trends were strong and improved throughout the quarter across the majority of our businesses. We saw particularly healthy new order activity in biopharma connectors and pumps, plastics & polymer processing, food retail, industrial pumps, refuse collection, and automotive-exposed markets. Several markets that are still recovering, such as foodservice equipment, digital printing and industrial winches have also been posting encouraging trends. As a result of strong orders, our backlog at the end of the first quarter was substantially higher than the backlog we carried into the quarter.

“As we look forward, our strong end market demand, bookings rates, and robust backlog give us confidence that market demand for our products will remain durable as we progress through the year. There are challenges to navigate going forward such as material cost inflation, supply chain bottlenecks, and labor availability, but our first quarter performance gives us grounds for optimism that we are up to the challenge. Furthermore, our balance sheet remains healthy and we have substantial capacity for inorganic capital deployment to continue enhancing our portfolio.

“On the back of a strong first quarter and the current trading environment, 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 10% to 12%. EPS guidance for full year 2021 was raised to $5.92 to $6.02 ($6.75 to $6.85 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its first quarter 2021 results and updated 2021 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, April 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 first 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 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 approximately 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 - FIRST QUARTER 2021

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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

			Three Months Ended March 31,
			2021						2020
Revenue			$	1,867,901					$	1,655,939
Cost of goods and services			1,146,353						1,043,696
Gross profit			721,548						612,243
Selling, general, and administrative expenses			408,998						386,941
Operating earnings			312,550						225,302
Interest expense			26,823						27,268
Interest income			(680)						(1,183)
Gain on sale of a business			—						(6,551)
Other income, net			(2,843)						(7,732)
Earnings before provision for income taxes			289,250						213,500
Provision for income taxes			56,481						37,221
Net earnings			$	232,769					$	176,279
Net earnings per share:
Basic			$	1.62					$	1.22
Diluted			$	1.61					$	1.21
Weighted average shares outstanding:
Basic			143,765						144,259
Diluted			144,938						145,782
Dividends paid per common share			$	0.495					$	0.49
* Per share data may be impacted by rounding.

IS - 1

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)

			2021						2020
			Q1																								Q1			Q2						Q3						Q4			FY 2020
REVENUE
Engineered Products			$	428,127																							$	408,160		$	342,380					$	386,562					$	394,175		$	1,531,277
Fueling Solutions			389,678																								359,982			326,495						380,511						409,294			1,476,282
Imaging & Identification			284,328																								256,765			227,977						265,690						287,746			1,038,178
Pumps & Process Solutions			394,377																								319,536			309,095						347,875						347,497			1,324,003
Refrigeration & Food Equipment			372,077																								311,913			293,527						368,395						342,255			1,316,090
Intra-segment eliminations			(686)																								(417)			(299)						(777)						(577)			(2,070)
Total consolidated revenue			$	1,867,901																							$	1,655,939		$	1,499,175					$	1,748,256					$	1,780,390		$	6,683,760
NET EARNINGS
Segment Earnings:
Engineered Products			$	68,779																							$	69,094		$	47,702					$	64,890					$	56,481		$	238,167
Fueling Solutions			66,480																								53,498			47,214						66,601						69,661			236,974
Imaging & Identification			56,992																								51,482			38,046						51,928						52,017			193,473
Pumps & Process Solutions			123,645																								66,079			67,702						89,786						81,709			305,276
Refrigeration & Food Equipment 1			38,117																								23,529			11,459						40,159						27,725			102,872
Total segment earnings (EBIT)			354,013																								263,682			212,123						313,364						287,593			1,076,762
Corporate expense / other			38,620																								24,097			27,311						35,603						39,651			126,662
Interest expense			26,823																								27,268			28,711						27,724						28,234			111,937
Interest income			(680)																								(1,183)			(728)						(960)						(700)			(3,571)
Earnings before provision for income taxes			289,250																								213,500			156,829						250,997						220,408			841,734
Provision for income taxes			56,481																								37,221			32,063						50,697						38,302			158,283
Net earnings			$	232,769																							$	176,279		$	124,766					$	200,300					$	182,106		$	683,451
SEGMENT MARGIN
Engineered Products			16.1 %																								16.9 %			13.9 %						16.8 %						14.3 %			15.6 %
Fueling Solutions			17.1 %																								14.9 %			14.5 %						17.5 %						17.0 %			16.1 %
Imaging & Identification			20.0 %																								20.1 %			16.7 %						19.5 %						18.1 %			18.6 %
Pumps & Process Solutions			31.4 %																								20.7 %			21.9 %						25.8 %						23.5 %			23.1 %
Refrigeration & Food Equipment 1			10.2 %																								7.5 %			3.9 %						10.9 %						8.1 %			7.8 %
Total segment operating margin			19.0 %																								15.9 %			14.1 %						17.9 %						16.2 %			16.1 %
DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products			$	14,047																							$	10,122		$	9,722					$	10,717					$	12,042		$	42,603
Fueling Solutions			19,269																								18,339			17,968						18,014						18,482			72,803
Imaging & Identification			9,593																								8,769			9,224						9,809						10,576			38,378
Pumps & Process Solutions			16,926																								18,336			17,572						17,206						19,077			72,191
Refrigeration & Food Equipment			12,096																								11,548			11,421						12,081						11,491			46,541
Corporate			1,875																								1,638			1,696						1,662						1,539			6,535
Total depreciation and amortization expense			$	73,806																							$	68,752		$	67,603					$	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.

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DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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

Earnings Per Share
			2021						2020
			Q1																								Q1			Q2						Q3						Q4			FY 2020
Net earnings per share:
Basic			$	1.62																							$	1.22		$	0.87					$	1.39					$	1.27		$	4.74
Diluted			$	1.61																							$	1.21		$	0.86					$	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																							$	176,279		$	124,766					$	200,300					$	182,106		$	683,451
Weighted average shares outstanding:
Basic			143,765																								144,259			143,955						144,032						143,954			144,050
Diluted			144,938																								145,782			144,995						145,289						145,355			145,393
* Per share data may be impacted by rounding.

IS - 3

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																								Q1			Q2						Q3						Q4			FY 2020
Adjusted net earnings:
Net earnings			$	232,769																							$	176,279		$	124,766					$	200,300					$	182,106		$	683,451
Acquisition-related amortization, pre-tax 1			35,516																								34,062			34,101						35,325						35,027			138,515
Acquisition-related amortization, tax impact 2			(8,720)																								(8,411)			(8,451)						(8,810)						(8,695)			(34,367)
Rightsizing and other costs, pre-tax 3			4,162																								7,859			16,840						5,848						20,925			51,472
Rightsizing and other costs, tax impact 2			(1,031)																								(1,605)			(3,452)						(1,343)						(4,402)			(10,802)
(Gain) loss on disposition, pre-tax 4			—																								(6,551)			781						557						—			(5,213)
(Gain) loss on disposition, tax-impact 2			—																								1,592			(190)						(135)						—			1,267
Adjusted net earnings			$	262,696																							$	203,225		$	164,395					$	231,742					$	224,961		$	824,323
Adjusted diluted net earnings per share:
Diluted net earnings per share			$	1.61																							$	1.21		$	0.86					$	1.38					$	1.25		$	4.70
Acquisition-related amortization, pre-tax 1			0.25																								0.23			0.24						0.24						0.24			0.95
Acquisition-related amortization, tax impact 2			(0.06)																								(0.06)			(0.06)						(0.06)						(0.06)			(0.24)
Rightsizing and other costs, pre-tax 3			0.03																								0.05			0.12						0.04						0.14			0.35
Rightsizing and other costs, tax impact 2			(0.01)																								(0.01)			(0.02)						(0.01)						(0.03)			(0.07)
(Gain) loss on disposition, pre-tax 4			—																								(0.04)			—						—						—			(0.03)
(Gain) loss on disposition, tax-impact 2			—																								0.01			—						—						—			0.01
Adjusted diluted net earnings per share			$	1.81																							$	1.39		$	1.13					$	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.

IS - 4

DOVER CORPORATION

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

(unaudited)(in thousands)

Non-GAAP Reconciliations

			2021						2020
			Q1																								Q1			Q2						Q3						Q4			FY 2020
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)			$	68,779																							$	69,094		$	47,702					$	64,890					$	56,481		$	238,167
Rightsizing and other costs			4,019																								361			4,169						2,375						4,625			11,530
Adjusted EBIT - Segment			72,798																								69,455			51,871						67,265						61,106			249,697
Adjusted EBIT %			17.0 %																								17.0 %			15.2 %						17.4 %						15.5 %			16.3 %
Adjusted D&A 1			10,594																								10,122			9,722						10,651						10,193			40,688
Adjusted EBITDA - Segment			$	83,392																							$	79,577		$	61,593					$	77,916					$	71,299		$	290,385
Adjusted EBITDA %			19.5 %																								19.5 %			18.0 %						20.2 %						18.1 %			19.0 %
Fueling Solutions:
Segment earnings (EBIT)			$	66,480																							$	53,498		$	47,214					$	66,601					$	69,661		$	236,974
Rightsizing and other costs			58																								1,493			868						1,615						2,727			6,703
Adjusted EBIT - Segment			66,538																								54,991			48,082						68,216						72,388			243,677
Adjusted EBIT %			17.1 %																								15.3 %			14.7 %						17.9 %						17.7 %			16.5 %
Adjusted D&A 1			19,180																								18,339			17,783						18,014						18,225			72,361
Adjusted EBITDA - Segment			$	85,718																							$	73,330		$	65,865					$	86,230					$	90,613		$	316,038
Adjusted EBITDA %			22.0 %																								20.4 %			20.2 %						22.7 %						22.1 %			21.4 %
Imaging & Identification:
Segment earnings (EBIT)			$	56,992																							$	51,482		$	38,046					$	51,928					$	52,017		$	193,473
Rightsizing and other costs			682																								264			(527)						99						6,191			6,027
Adjusted EBIT - Segment			57,674																								51,746			37,519						52,027						58,208			199,500
Adjusted EBIT %			20.3 %																								20.2 %			16.5 %						19.6 %						20.2 %			19.2 %
Adjusted D&A 1			9,218																								8,769			9,224						9,809						10,201			38,003
Adjusted EBITDA - Segment			$	66,892																							$	60,515		$	46,743					$	61,836					$	68,409		$	237,503
Adjusted EBITDA %			23.5 %																								23.6 %			20.5 %						23.3 %						23.8 %			22.9 %
Pumps & Process Solutions:
Segment earnings (EBIT)			$	123,645																							$	66,079		$	67,702					$	89,786					$	81,709		$	305,276
Rightsizing and other (benefits) costs			(2,006)																								3,846			4,691						1,771						3,128			13,436
Adjusted EBIT - Segment			121,639																								69,925			72,393						91,557						84,837			318,712
Adjusted EBIT %			30.8 %																								21.9 %			23.4 %						26.3 %						24.4 %			24.1 %
Adjusted D&A 1			16,926																								16,230			16,816						17,206						17,565			67,817
Adjusted EBITDA - Segment			$	138,565																							$	86,155		$	89,209					$	108,763					$	102,402		$	386,529
Adjusted EBITDA %			35.1 %																								27.0 %			28.9 %						31.3 %						29.5 %			29.2 %
Refrigeration & Food Equipment:
Segment earnings (EBIT)			$	38,117																							$	23,529		$	11,459					$	40,159					$	27,725		$	102,872
Rightsizing and other (benefits) costs			(38)																								704			6,016						(971)						726			6,475
(Gain) loss on disposition 2			—																								(6,551)			781						557						—			(5,213)
Adjusted EBIT - Segment			38,079																								17,682			18,256						39,745						28,451			104,134
Adjusted EBIT %			10.2 %																								5.7 %			6.2 %						10.8 %						8.3 %			7.9 %
Adjusted D&A 1			11,745																								11,548			11,421						12,081						11,491			46,541
Adjusted EBITDA - Segment			$	49,824																							$	29,230		$	29,677					$	51,826					$	39,942		$	150,675
Adjusted EBITDA %			13.4 %																								9.4 %			10.1 %						14.1 %						11.7 %			11.4 %
Total Segments:
Segment earnings (EBIT) 3			$	354,013																							$	263,682		$	212,123					$	313,364					$	287,593		$	1,076,762
Rightsizing and other costs			2,715																								6,668			15,217						4,889						17,397			44,171
(Gain) loss on disposition 2			—																								(6,551)			781						557						—			(5,213)
Adjusted EBIT - Segment 4			356,728																								263,799			228,121						318,810						304,990			1,115,720
Adjusted EBIT % 4			19.1 %																								15.9 %			15.2 %						18.2 %						17.1 %			16.7 %
Adjusted D&A 1			67,663																								65,008			64,966						67,761						67,675			265,410
Adjusted EBITDA - Segment 4			$	424,391																							$	328,807		$	293,087					$	386,571					$	372,665		$	1,381,130
Adjusted EBITDA % 4			22.7 %																								19.9 %			19.5 %						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.

IS - 5

DOVER CORPORATION

REVENUE GROWTH FACTORS (NON-GAAP)

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

Non-GAAP Reconciliations

Revenue Growth Factors

																					2021
																					Q1
Organic
Engineered Products																					2.3		%
Fueling Solutions																					3.0		%
Imaging & Identification																					3.7		%
Pumps & Process Solutions																					18.4		%
Refrigeration & Food Equipment																					18.3		%
Total Organic																					8.8		%
Acquisitions																					1.2		%
Dispositions																					(0.3)		%
Currency translation																					3.1		%
Total*																					12.8		%

* Totals may be impacted by rounding.

																		2021
																					Q1
Organic
United States																					6.9		%
Other Americas																					3.0		%
Europe																					12.7		%
Asia																					19.8		%
Other																					(4.7)		%
Total Organic																					8.8		%
Acquisitions																					1.2		%
Dispositions																					(0.3)		%
Currency translation																					3.1		%
Total*																					12.8		%

* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation
			Range
2021 Guidance for Earnings per Share (GAAP)			$	5.92					$	6.02
Acquisition-related amortization, net						0.73
Rightsizing and other costs, net						0.10
2021 Guidance for Adjusted Earnings per Share (Non-GAAP)			$	6.75					$	6.85

IS - 6

DOVER CORPORATION

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

(unaudited)(in thousands)

Quarterly Cash Flow

			2021						2020
			Q1																								Q1			Q2						Q3						Q4			FY 2020
Net Cash Flows Provided By (Used In):
Operating activities			$	177,184																							$	75,863		$	271,809					$	339,247					$	417,891		$	1,104,810
Investing activities			(29,572)																								(230,511)			(67,763)						(64,724)						(118,381)			(481,379)
Financing activities			(124,239)																								280,954			(67,458)						(496,832)						(222,954)			(506,290)

Quarterly Free Cash Flow (Non-GAAP)

			2021						2020
			Q1																								Q1			Q2						Q3						Q4			FY 2020
Cash flow from operating activities1			$	177,184																							$	75,863		$	271,809					$	339,247					$	417,891		$	1,104,810
Less: Capital expenditures			(31,260)																								(40,172)			(38,999)						(44,393)						(42,128)			(165,692)
Free cash flow			$	145,924																							$	35,691		$	232,810					$	294,854					$	375,763		$	939,118
Free cash flow as a percentage of revenue			7.8 %																								2.2 %			15.5 %						16.9 %						21.1 %			14.1 %
Free cash flow as a percentage of net earnings			62.7 %																								20.2 %			186.6 %						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.

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DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)

			2021						2020
			Q1																								Q1			Q2						Q3						Q4			FY 2020
BOOKINGS
Engineered Products			$	528,310																							$	414,972		$	278,373					$	381,139					$	484,002		$	1,558,486
Fueling Solutions			422,668																								373,070			311,498						383,902						403,400			1,471,870
Imaging & Identification			293,614																								272,604			221,315						266,423						304,756			1,065,098
Pumps & Process Solutions			551,365																								369,403			275,872						323,801						365,262			1,334,338
Refrigeration & Food Equipment			537,326																								355,157			326,400						449,549						379,393			1,510,499
Intra-segment eliminations			(863)																								(375)			(460)						(926)						(425)			(2,186)
Total consolidated bookings			$	2,332,420																							$	1,784,831		$	1,412,998					$	1,803,888					$	1,936,388		$	6,938,105
BACKLOG
Engineered Products			$	562,557																							$	453,867		$	378,874					$	373,458					$	463,701
Fueling Solutions			238,822																								211,518			199,305						204,574						201,521
Imaging & Identification			198,556																								170,119			168,904						171,158						192,785
Pumps & Process Solutions			539,097																								397,969			379,090						361,631						390,238
Refrigeration & Food Equipment			677,309																								356,133			390,368						472,140						510,498
Intra-segment eliminations			(544)																								(159)			(367)						(269)						(192)
Total consolidated backlog			$	2,215,797																							$	1,589,447		$	1,516,174					$	1,582,692					$	1,758,551

Bookings Growth Factors

																					2021
																					Q1
Organic
Engineered Products																					24.8		%
Fueling Solutions																					7.3		%
Imaging & Identification																					0.1		%
Pumps & Process Solutions																					44.0		%
Refrigeration & Food Equipment																					50.7		%
Total Organic																					26.5		%
Acquisitions																					1.5		%
Dispositions																					(0.3)		%
Currency translation																					3.0		%
Total*																					30.7		%

* 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.

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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.

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