Press Release

Dover Reports Third Quarter 2021 Results; Raises Full Year Guidance

DOWNERS GROVE, Ill., Oct. 19, 2021 /PRNewswire/ -- 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 earnings¹	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.

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.

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.

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.

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.

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.

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.

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.

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

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SOURCE Dover