EX-99.1 2 a202110198-kexhibit991pr.htm EX-99.1

Document

Exhibit 99.1

Investor Contacts:			Media Contact:
Andrey Galiuk			Adrian Sakowicz
Vice President - Corporate Development and Investor Relations			Vice President - Communications
(630) 743-5131			(630) 743-5039
agaliuk@dovercorp.com			asakowicz@dovercorp.com
Jack Dickens
Director - Corporate Development and Investor Relations
(630) 743-2566
jdickens@dovercorp.com

DOVER REPORTS THIRD QUARTER 2021 RESULTS; RAISES FULL YEAR GUIDANCE

DOWNERS GROVE, Ill., October 19, 2021 — Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the third quarter ended September 30, 2021.

						Three Months Ended September 30,																		Nine Months Ended September 30,
($ in millions, except per share data)						2021						2020						% Change						2021						2020						% Change
U.S. GAAP
Revenue						$	2,018					$	1,748					15		%				$	5,918					$	4,903					21		%
Net earnings 1						264						200						32		%				761						501						52		%
Diluted EPS						1.81						1.38						31		%				5.24						3.45						52		%
Non-GAAP
Organic revenue change																		13		%																17		%
Adjusted net earnings 2						288						232						24		%				850						599						42		%
Adjusted diluted EPS						1.98						1.60						24		%				5.86						4.12						42		%

1 Q3 2021 and 2020 net earnings include rightsizing and other (benefits) costs of $(2.3) million and $4.5 million, respectively. Q3 2020 also includes a $0.4 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 net earnings include rightsizing and other costs of $9.0 million and $24.1 million, respectively. Year-to-date 2020 also includes a $3.9 million non-cash gain on the sale of AMS Chino.

2 Q3 2021 and 2020 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.9 million and $26.5 million, respectively, and rightsizing and other (benefits) costs of $(2.3) million and $4.5 million, respectively. Q3 2020 also excludes a $0.4 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 adjusted net earnings exclude acquisition-related amortization costs of $80.3 million and $77.8 million, respectively, and rightsizing and other costs of $9.0 million and $24.1 million, respectively. Year-to-date 2020 also excludes a $3.9 million non-cash gain on the sale of AMS Chino.

For the quarter ended September 30, 2021, Dover generated revenue of $2.0 billion, an increase of 15% (+13% organic) compared to the third quarter of the prior year. GAAP net earnings of $264 million increased 32%, and GAAP diluted EPS of $1.81 was up 31%. On an adjusted basis, net earnings of $288 million increased 24% and adjusted diluted EPS of $1.98 was also up 24% versus the comparable quarter of the prior year.

For the nine months ended September 30, 2021, Dover generated revenue of $5.9 billion, an increase of 21% (+17% organic) compared to the first nine months of the prior year. GAAP net earnings of $761 million increased 52%, and GAAP diluted EPS of $5.24 was also up 52% year-over-year. On an adjusted basis, net earnings of $850 million increased 42%, and adjusted diluted EPS of $5.86 was also up 42% 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, “Our results in the third quarter reflect continued robust demand and solid execution by our teams in an increasingly complex supply chain and labor environment.

“During the quarter we demonstrated the strength of our portfolio with revenue and new order growth across all five of our operating segments. We improved margins year-over-year despite well-advertised supply chain, logistics, and labor availability challenges that adversely impacted shipment timing and margin performance in several businesses, most notably in our Refrigeration and Food Equipment and Engineered Products segments. Overall, our diversified end market exposures, ongoing productivity initiatives and time-tested localized manufacturing and sourcing strategy provide us an advantage as we execute against record backlogs and deliver critical products to our customers.

“We also continued to enhance and invest behind our portfolio. We progressed necessary capacity expansion in several high-growth businesses to meet their prevailing demand forecasts. Recently we completed three highly-complementary bolt-on acquisitions in radio signal intelligence solutions, industrial 3D visualization software and fueling solutions for alternative fuels like LNG and hydrogen. We also agreed to sell Unified Brands, Dover’s commercial foodservice business, to enable greater focus on our core growth platforms. Our balance sheet is healthy and we remain disciplined in pursuit of opportunities to further enhance our portfolio.

“As we enter the final quarter of the year, we do not anticipate the challenges from the third quarter to abate and therefore we remain focused on operational execution to deliver against robust demand in this strained operational environment. More positively, our high backlog levels provide beneficial near-term visibility for the remainder of the year and into 2022. As a result, we are raising our full year EPS guidance.”

FULL YEAR 2021 GUIDANCE UPDATE:

EPS guidance for full year 2021 was raised to $6.64 to $6.69 ($7.45 to $7.50 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its third 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, October 19, 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 third 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, supply chain constraints and labor shortages that could result in production stoppages, inflation in material input costs and freight logistics, 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 - THIRD QUARTER 2021

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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

			Three Months Ended September 30,												Nine Months Ended September 30,
			2021						2020						2021						2020
Revenue			$	2,018,269					$	1,748,256					$	5,917,846					$	4,903,370
Cost of goods and services			1,263,690						1,089,527						3,669,547						3,080,800
Gross profit			754,579						658,729						2,248,299						1,822,570
Selling, general, and administrative expenses			412,553						381,831						1,249,593						1,135,512
Operating earnings			342,026						276,898						998,706						687,058
Interest expense			26,433						27,724						79,917						83,703
Interest income			(1,466)						(960)						(3,088)						(2,871)
Loss (gain) on sale of a business			—						557						—						(5,213)
Other income, net			(10,460)						(1,420)						(18,236)						(9,887)
Earnings before provision for income taxes			327,519						250,997						940,113						621,326
Provision for income taxes			63,763						50,697						179,080						119,981
Net earnings			$	263,756					$	200,300					$	761,033					$	501,345
Net earnings per share:
Basic			$	1.83					$	1.39					$	5.29					$	3.48
Diluted			$	1.81					$	1.38					$	5.24					$	3.45
Weighted average shares outstanding:
Basic			143,976						144,032						143,895						144,082
Diluted			145,440						145,289						145,220						145,313
Dividends paid per common share			$	0.50					$	0.495					$	1.49					$	1.475
* Per share data may be impacted by rounding.

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)

			2021															2020
			Q1			Q2						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
REVENUE
Engineered Products			$	428,127		$	442,091					$	447,798		$	1,318,016											$	408,160		$	342,380					$	386,562		$	1,137,102		$	394,175		$	1,531,277
Fueling Solutions			389,678			437,042						410,561			1,237,281												359,982			326,495						380,511			1,066,988			409,294			1,476,282
Imaging & Identification			284,328			294,076						292,535			870,939												256,765			227,977						265,690			750,432			287,746			1,038,178
Pumps & Process Solutions			394,377			428,701						438,240			1,261,318												319,536			309,095						347,875			976,506			347,497			1,324,003
Refrigeration & Food Equipment			372,077			430,506						429,425			1,232,008												311,913			293,527						368,395			973,835			342,255			1,316,090
Intra-segment eliminations			(686)			(740)						(290)			(1,716)												(417)			(299)						(777)			(1,493)			(577)			(2,070)
Total consolidated revenue			$	1,867,901		$	2,031,676					$	2,018,269		$	5,917,846											$	1,655,939		$	1,499,175					$	1,748,256		$	4,903,370		$	1,780,390		$	6,683,760
NET EARNINGS
Segment Earnings:
Engineered Products 1			$	68,779		$	62,720					$	71,717		$	203,216											$	69,094		$	47,702					$	64,890		$	181,686		$	56,481		$	238,167
Fueling Solutions			66,480			78,755						65,593			210,828												53,498			47,214						66,601			167,313			69,661			236,974
Imaging & Identification			56,992			60,747						63,419			181,158												51,482			38,046						51,928			141,456			52,017			193,473
Pumps & Process Solutions			123,645			138,632						142,414			404,691												66,079			67,702						89,786			223,567			81,709			305,276
Refrigeration & Food Equipment 2			38,117			48,971						42,841			129,929												23,529			11,459						40,159			75,147			27,725			102,872
Total segment earnings (EBIT)			354,013			389,825						385,984			1,129,822												263,682			212,123						313,364			789,169			287,593			1,076,762
Corporate expense / other			38,620			40,762						33,498			112,880												24,097			27,311						35,603			87,011			39,651			126,662
Interest expense			26,823			26,661						26,433			79,917												27,268			28,711						27,724			83,703			28,234			111,937
Interest income			(680)			(942)						(1,466)			(3,088)												(1,183)			(728)						(960)			(2,871)			(700)			(3,571)
Earnings before provision for income taxes			289,250			323,344						327,519			940,113												213,500			156,829						250,997			621,326			220,408			841,734
Provision for income taxes			56,481			58,836						63,763			179,080												37,221			32,063						50,697			119,981			38,302			158,283
Net earnings			$	232,769		$	264,508					$	263,756		$	761,033											$	176,279		$	124,766					$	200,300		$	501,345		$	182,106		$	683,451
SEGMENT MARGIN
Engineered Products 1			16.1 %			14.2 %						16.0 %			15.4 %												16.9 %			13.9 %						16.8 %			16.0 %			14.3 %			15.6 %
Fueling Solutions			17.1 %			18.0 %						16.0 %			17.0 %												14.9 %			14.5 %						17.5 %			15.7 %			17.0 %			16.1 %
Imaging & Identification			20.0 %			20.7 %						21.7 %			20.8 %												20.1 %			16.7 %						19.5 %			18.8 %			18.1 %			18.6 %
Pumps & Process Solutions			31.4 %			32.3 %						32.5 %			32.1 %												20.7 %			21.9 %						25.8 %			22.9 %			23.5 %			23.1 %
Refrigeration & Food Equipment 2			10.2 %			11.4 %						10.0 %			10.5 %												7.5 %			3.9 %						10.9 %			7.7 %			8.1 %			7.8 %
Total segment operating margin			19.0 %			19.2 %						19.1 %			19.1 %												15.9 %			14.1 %						17.9 %			16.1 %			16.2 %			16.1 %
DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products			$	14,047		$	11,981					$	11,123		$	37,151											$	10,122		$	9,722					$	10,717		$	30,561		$	12,042		$	42,603
Fueling Solutions			19,269			19,475						19,920			58,664												18,339			17,968						18,014			54,321			18,482			72,803
Imaging & Identification			9,593			9,294						9,821			28,708												8,769			9,224						9,809			27,802			10,576			38,378
Pumps & Process Solutions			16,926			16,866						17,843			51,635												18,336			17,572						17,206			53,114			19,077			72,191
Refrigeration & Food Equipment			12,096			12,077						12,392			36,565												11,548			11,421						12,081			35,050			11,491			46,541
Corporate			1,875			1,826						1,812			5,513												1,638			1,696						1,662			4,996			1,539			6,535
Total depreciation and amortization expense			$	73,806		$	71,519					$	72,911		$	218,236											$	68,752		$	67,603					$	69,489		$	205,844		$	73,207		$	279,051
1 Q3 2021 includes a $9,078 payment received for previously incurred restructuring costs related to a product line exit.
2 Q1, Q2, Q3, 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, Q3 YTD and FY 2020 also include a $3,640 write-off of assets.

IS - 1

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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

Earnings Per Share
			2021															2020
			Q1			Q2						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
Net earnings per share:
Basic			$	1.62		$	1.84					$	1.83		$	5.29											$	1.22		$	0.87					$	1.39		$	3.48		$	1.27		$	4.74
Diluted			$	1.61		$	1.82					$	1.81		$	5.24											$	1.21		$	0.86					$	1.38		$	3.45		$	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					$	263,756		$	761,033											$	176,279		$	124,766					$	200,300		$	501,345		$	182,106		$	683,451
Weighted average shares outstanding:
Basic			143,765			143,941						143,976			143,895												144,259			143,955						144,032			144,082			143,954			144,050
Diluted			144,938			145,118						145,440			145,220												145,782			144,995						145,289			145,313			145,355			145,393
* Per share data may be impacted by rounding.

IS - 2

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						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
Adjusted net earnings:
Net earnings			$	232,769		$	264,508					$	263,756		$	761,033											$	176,279		$	124,766					$	200,300		$	501,345		$	182,106		$	683,451
Acquisition-related amortization, pre-tax 1			35,516			35,162						35,587			106,265												34,062			34,101						35,325			103,488			35,027			138,515
Acquisition-related amortization, tax impact 2			(8,720)			(8,571)						(8,700)			(25,991)												(8,411)			(8,451)						(8,810)			(25,672)			(8,695)			(34,367)
Rightsizing and other costs (benefits), pre-tax 3			4,162			10,779						(3,201)			11,740												7,859			16,840						5,848			30,547			20,925			51,472
Rightsizing and other costs (benefits), tax impact 2			(1,031)			(2,597)						902			(2,726)												(1,605)			(3,452)						(1,343)			(6,400)			(4,402)			(10,802)
(Gain) loss on disposition, pre-tax 4			—			—						—			—												(6,551)			781						557			(5,213)			—			(5,213)
(Gain) loss on disposition, tax-impact 2			—			—						—			—												1,592			(190)						(135)			1,267			—			1,267
Adjusted net earnings			$	262,696		$	299,281					$	288,344		$	850,321											$	203,225		$	164,395					$	231,742		$	599,362		$	224,961		$	824,323
Adjusted diluted net earnings per share:
Diluted net earnings per share			$	1.61		$	1.82					$	1.81		$	5.24											$	1.21		$	0.86					$	1.38		$	3.45		$	1.25		$	4.70
Acquisition-related amortization, pre-tax 1			0.25			0.24						0.24			0.73												0.23			0.24						0.24			0.71			0.24			0.95
Acquisition-related amortization, tax impact 2			(0.06)			(0.06)						(0.06)			(0.18)												(0.06)			(0.06)						(0.06)			(0.18)			(0.06)			(0.24)
Rightsizing and other costs (benefits), pre-tax 3			0.03			0.07						(0.02)			0.08												0.05			0.12						0.04			0.21			0.14			0.35
Rightsizing and other costs (benefits), tax impact 2			(0.01)			(0.02)						0.01			(0.02)												(0.01)			(0.02)						(0.01)			(0.04)			(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					$	1.98		$	5.86											$	1.39		$	1.13					$	1.60		$	4.12		$	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 (benefits) include actions taken on employee reductions, facility consolidations and site closures, product line exits, and other asset charges. Q3 2021 includes a $9,078 payment received for previously incurred restructuring costs related to a product line exit in our Engineered Products segment.
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 - 3

DOVER CORPORATION

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

(unaudited)(in thousands)

Non-GAAP Reconciliations

			2021															2020
			Q1			Q2						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)			$	68,779		$	62,720					$	71,717		$	203,216											$	69,094		$	47,702					$	64,890		$	181,686		$	56,481		$	238,167
Rightsizing and other costs (benefits) 1			4,019			4,654						(8,332)			341												361			4,169						2,375			6,905			4,625			11,530
Adjusted EBIT - Segment			72,798			67,374						63,385			203,557												69,455			51,871						67,265			188,591			61,106			249,697
Adjusted EBIT %			17.0 %			15.2 %						14.2 %			15.4 %												17.0 %			15.2 %						17.4 %			16.6 %			15.5 %			16.3 %
Adjusted D&A 2			10,594			9,695						11,123			31,412												10,122			9,722						10,651			30,495			10,193			40,688
Adjusted EBITDA - Segment			$	83,392		$	77,069					$	74,508		$	234,969											$	79,577		$	61,593					$	77,916		$	219,086		$	71,299		$	290,385
Adjusted EBITDA %			19.5 %			17.4 %						16.6 %			17.8 %												19.5 %			18.0 %						20.2 %			19.3 %			18.1 %			19.0 %
Fueling Solutions:
Segment earnings (EBIT)			$	66,480		$	78,755					$	65,593		$	210,828											$	53,498		$	47,214					$	66,601		$	167,313		$	69,661		$	236,974
Rightsizing and other costs			58			1,657						1,584			3,299												1,493			868						1,615			3,976			2,727			6,703
Adjusted EBIT - Segment			66,538			80,412						67,177			214,127												54,991			48,082						68,216			171,289			72,388			243,677
Adjusted EBIT %			17.1 %			18.4 %						16.4 %			17.3 %												15.3 %			14.7 %						17.9 %			16.1 %			17.7 %			16.5 %
Adjusted D&A 2			19,180			19,475						19,335			57,990												18,339			17,783						18,014			54,136			18,225			72,361
Adjusted EBITDA - Segment			$	85,718		$	99,887					$	86,512		$	272,117											$	73,330		$	65,865					$	86,230		$	225,425		$	90,613		$	316,038
Adjusted EBITDA %			22.0 %			22.9 %						21.1 %			22.0 %												20.4 %			20.2 %						22.7 %			21.1 %			22.1 %			21.4 %
Imaging & Identification:
Segment earnings (EBIT)			$	56,992		$	60,747					$	63,419		$	181,158											$	51,482		$	38,046					$	51,928		$	141,456		$	52,017		$	193,473
Rightsizing and other costs (benefits)			682			178						1,291			2,151												264			(527)						99			(164)			6,191			6,027
Adjusted EBIT - Segment			57,674			60,925						64,710			183,309												51,746			37,519						52,027			141,292			58,208			199,500
Adjusted EBIT %			20.3 %			20.7 %						22.1 %			21.0 %												20.2 %			16.5 %						19.6 %			18.8 %			20.2 %			19.2 %
Adjusted D&A 2			9,218			9,184						9,821			28,223												8,769			9,224						9,809			27,802			10,201			38,003
Adjusted EBITDA - Segment			$	66,892		$	70,109					$	74,531		$	211,532											$	60,515		$	46,743					$	61,836		$	169,094		$	68,409		$	237,503
Adjusted EBITDA %			23.5 %			23.8 %						25.5 %			24.3 %												23.6 %			20.5 %						23.3 %			22.5 %			23.8 %			22.9 %
Pumps & Process Solutions:
Segment earnings (EBIT)			$	123,645		$	138,632					$	142,414		$	404,691											$	66,079		$	67,702					$	89,786		$	223,567		$	81,709		$	305,276
Rightsizing and other (benefits) costs			(2,006)			899						487			(620)												3,846			4,691						1,771			10,308			3,128			13,436
Adjusted EBIT - Segment			121,639			139,531						142,901			404,071												69,925			72,393						91,557			233,875			84,837			318,712
Adjusted EBIT %			30.8 %			32.5 %						32.6 %			32.0 %												21.9 %			23.4 %						26.3 %			24.0 %			24.4 %			24.1 %
Adjusted D&A 2			16,926			16,866						17,206			50,998												16,230			16,816						17,206			50,252			17,565			67,817
Adjusted EBITDA - Segment			$	138,565		$	156,397					$	160,107		$	455,069											$	86,155		$	89,209					$	108,763		$	284,127		$	102,402		$	386,529
Adjusted EBITDA %			35.1 %			36.5 %						36.5 %			36.1 %												27.0 %			28.9 %						31.3 %			29.1 %			29.5 %			29.2 %
Refrigeration & Food Equipment:
Segment earnings (EBIT)			$	38,117		$	48,971					$	42,841		$	129,929											$	23,529		$	11,459					$	40,159		$	75,147		$	27,725		$	102,872
Rightsizing and other (benefits) costs			(38)			2,539						1,520			4,021												704			6,016						(971)			5,749			726			6,475
(Gain) loss on disposition 3			—			—						—			—												(6,551)			781						557			(5,213)			—			(5,213)
Adjusted EBIT - Segment			38,079			51,510						44,361			133,950												17,682			18,256						39,745			75,683			28,451			104,134
Adjusted EBIT %			10.2 %			12.0 %						10.3 %			10.9 %												5.7 %			6.2 %						10.8 %			7.8 %			8.3 %			7.9 %
Adjusted D&A 2			11,745			12,077						12,392			36,214												11,548			11,421						12,081			35,050			11,491			46,541
Adjusted EBITDA - Segment			$	49,824		$	63,587					$	56,753		$	170,164											$	29,230		$	29,677					$	51,826		$	110,733		$	39,942		$	150,675
Adjusted EBITDA %			13.4 %			14.8 %						13.2 %			13.8 %												9.4 %			10.1 %						14.1 %			11.4 %			11.7 %			11.4 %
Total Segments:
Segment earnings (EBIT) 4			$	354,013		$	389,825					$	385,984		$	1,129,822											$	263,682		$	212,123					$	313,364		$	789,169		$	287,593		$	1,076,762
Rightsizing and other costs (benefits) 1			2,715			9,927						(3,450)			9,192												6,668			15,217						4,889			26,774			17,397			44,171
(Gain) loss on disposition 3			—			—						—			—												(6,551)			781						557			(5,213)			—			(5,213)
Adjusted EBIT - Segment 5			356,728			399,752						382,534			1,139,014												263,799			228,121						318,810			810,730			304,990			1,115,720
Adjusted EBIT % 5			19.1 %			19.7 %						19.0 %			19.2 %												15.9 %			15.2 %						18.2 %			16.5 %			17.1 %			16.7 %
Adjusted D&A 2			67,663			67,297						69,877			204,837												65,008			64,966						67,761			197,735			67,675			265,410
Adjusted EBITDA - Segment 5			$	424,391		$	467,049					$	452,411		$	1,343,851											$	328,807		$	293,087					$	386,571		$	1,008,465		$	372,665		$	1,381,130
Adjusted EBITDA % 5			22.7 %			23.0 %						22.4 %			22.7 %												19.9 %			19.5 %						22.1 %			20.6 %			20.9 %			20.7 %
1 Q3 2021 includes a $9,078 payment received for previously incurred restructuring costs related to a product line exit.
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.

IS - 4

DOVER CORPORATION

REVENUE GROWTH FACTORS (NON-GAAP)

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

Non-GAAP Reconciliations

Revenue Growth Factors

									2021
									Q3																		Q3 YTD
Organic
Engineered Products									14.2		%																13.3		%
Fueling Solutions									3.0		%																9.7		%
Imaging & Identification									7.4		%																10.0		%
Pumps & Process Solutions									24.6		%																25.4		%
Refrigeration & Food Equipment									16.0		%																25.1		%
Total Organic									13.2		%																16.8		%
Acquisitions									1.1		%																1.2		%
Dispositions									—		%																(0.1)		%
Currency translation									1.1		%																2.8		%
Total*									15.4		%																20.7		%

* Totals may be impacted by rounding.

																					2021
																					Q3						Q3 YTD
Organic
United States																					15.7		%				15.6		%
Other Americas																					8.7		%				18.9		%
Europe																					15.5		%				18.9		%
Asia																					4.6		%				19.4		%
Other																					0.1		%				10.9		%
Total Organic																					13.2		%				16.8		%
Acquisitions																					1.1		%				1.2		%
Dispositions																					—		%				(0.1)		%
Currency translation																					1.1		%				2.8		%
Total*																					15.4		%				20.7		%

* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation
			Range
2021 Guidance for Earnings per Share (GAAP)			$	6.64					$	6.69
Acquisition-related amortization, net						0.74
Rightsizing and other costs, net						0.07
2021 Guidance for Adjusted Earnings per Share (Non-GAAP)			$	7.45					$	7.50

Note: The above guidance reflects on going results of Unified Brands business within the Refrigeration & Food Equipment segment and, therefore, excludes the impact of the pending sale which is expected to close in Q4 2021.

IS - 5

DOVER CORPORATION

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

(unaudited)(in thousands)

Quarterly Cash Flow

			2021															2020
			Q1			Q2						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
Net Cash Flows Provided By (Used In):
Operating activities			$	177,184		$	260,073					$	351,329		$	788,586											$	75,863		$	271,809					$	339,247		$	686,919		$	417,891		$	1,104,810
Investing activities			(29,572)			(121,631)						(135,439)			(286,642)												(230,511)			(67,763)						(64,724)			(362,998)			(118,381)			(481,379)
Financing activities			(124,239)			(75,949)						(74,610)			(274,798)												280,954			(67,458)						(496,832)			(283,336)			(222,954)			(506,290)

Quarterly Free Cash Flow (Non-GAAP)

			2021															2020
			Q1			Q2						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
Cash flow from operating activities1			$	177,184		$	260,073					$	351,329		$	788,586											$	75,863		$	271,809					$	339,247		$	686,919		$	417,891		$	1,104,810
Less: Capital expenditures			(31,260)			(41,971)						(47,926)			(121,157)												(40,172)			(38,999)						(44,393)			(123,564)			(42,128)			(165,692)
Free cash flow			$	145,924		$	218,102					$	303,403		$	667,429											$	35,691		$	232,810					$	294,854		$	563,355		$	375,763		$	939,118
Free cash flow as a percentage of revenue			7.8 %			10.7 %						15.0 %			11.3 %												2.2 %			15.5 %						16.9 %			11.5 %			21.1 %			14.1 %
Free cash flow as a percentage of net earnings			62.7 %			82.5 %						115.0 %			87.7 %												20.2 %			186.6 %						147.2 %			112.4 %			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.

IS - 6

DOVER CORPORATION

PERFORMANCE MEASURES

(unaudited)(in thousands)

			2021															2020
			Q1			Q2						Q3			Q3 YTD												Q1			Q2						Q3			Q3 YTD			Q4			FY 2020
BOOKINGS
Engineered Products			$	528,310		$	497,200					$	502,767		$	1,528,277											$	414,972		$	278,373					$	381,139		$	1,074,484		$	484,002		$	1,558,486
Fueling Solutions			422,668			453,146						467,821			1,343,635												373,070			311,498						383,902			1,068,470			403,400			1,471,870
Imaging & Identification			293,614			299,608						293,782			887,004												272,604			221,315						266,423			760,342			304,756			1,065,098
Pumps & Process Solutions			551,365			521,010						490,581			1,562,956												369,403			275,872						323,801			969,076			365,262			1,334,338
Refrigeration & Food Equipment			537,326			606,545						540,280			1,684,151												355,157			326,400						449,549			1,131,106			379,393			1,510,499
Intra-segment eliminations			(863)			(498)						(407)			(1,768)												(375)			(460)						(926)			(1,761)			(425)			(2,186)
Total consolidated bookings			$	2,332,420		$	2,377,011					$	2,294,824		$	7,004,255											$	1,784,831		$	1,412,998					$	1,803,888		$	5,001,717		$	1,936,388		$	6,938,105
BACKLOG
Engineered Products			$	562,557		$	613,517					$	662,834														$	453,867		$	378,874					$	373,458					$	463,701
Fueling Solutions			238,822			256,497						312,176															211,518			199,305						204,574						201,521
Imaging & Identification			198,556			206,125						204,766															170,119			168,904						171,158						192,785
Pumps & Process Solutions			539,097			634,477						682,415															397,969			379,090						361,631						390,238
Refrigeration & Food Equipment			677,309			854,188						964,233															356,133			390,368						472,140						510,498
Intra-segment eliminations			(544)			(262)						(252)															(159)			(367)						(269)						(192)
Total consolidated backlog			$	2,215,797		$	2,564,542					$	2,826,172														$	1,589,447		$	1,516,174					$	1,582,692					$	1,758,551

Bookings Growth Factors

																					2021
																					Q3						Q3 YTD
Organic
Engineered Products																					30.3		%				39.4		%
Fueling Solutions																					15.8		%				18.0		%
Imaging & Identification																					7.5		%				10.4		%
Pumps & Process Solutions																					50.1		%				56.5		%
Refrigeration & Food Equipment																					19.7		%				47.8		%
Total Organic																					24.8		%				35.6		%
Acquisitions																					1.1		%				1.6		%
Dispositions																					—		%				(0.1)		%
Currency translation																					1.3		%				2.9		%
Total*																					27.2		%				40.0		%

* Totals may be impacted by rounding.

IS - 7

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/benefits, 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/benefits, 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/benefits. 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.

IS - 8