Dover Reports Third Quarter 2019 Results; Tightens Full Year 2019 Adjusted EPS Guidance To $5.82 To $5.85

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Dover Reports Third Quarter 2019 Results; Tightens Full Year 2019 Adjusted EPS Guidance To $5.82 To $5.85

Reports organic revenue growth of 6%, significant operating margin accretion, and adjusted diluted EPS growth of 18%

DOWNERS GROVE, Ill., Oct. 17, 2019 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the third quarter ended September 30, 2019.

(PRNewsfoto/Dover)










Three Months Ended
September 30,


Nine Months Ended
September 30,

($ in millions, except per share data)

2019

2018

%
Change

2019

2018

%
Change

U.S. GAAP from continuing operations





Revenue

$1,825

$1,747

4%

$5,361

$5,183

3%

Earnings 1

206

157

31%

510

433

18%

Diluted EPS 1

1.40

1.05

33%

3.47

2.82

23%

Non-GAAP from continuing operations





Adjusted earnings

235

203

15%

646

545

19%

Adjusted diluted EPS

1.60

1.36

18%

4.40

3.55

24%

1 Q1 2019 included a $46.9 million ($0.32 of EPS) non-cash after-tax loss on assets held for sale related to Finder Pompe S.r.l.

A full reconciliation between GAAP and adjusted measures is included as an exhibit herein.

Third Quarter 2019 Financial Results:

For the third quarter ended September 30, 2019, revenue was $1.8 billion, an increase of 4.5% over the prior year. The increase in the quarter was driven by organic growth of 5.6% and acquisition growth of 1.0%, partially offset by a 1.6% unfavorable impact from foreign exchange ("FX") and 0.5% due to dispositions.

Earnings from continuing operations of $206.0 million included acquisition-related amortization costs of $25.6 million and rightsizing and other costs of $3.0 million, representing $0.17 and $0.02 of diluted earnings per share from continuing operations ("EPS"), respectively. Excluding these items, adjusted earnings from continuing operations for the quarter were $234.6 million (+15% over the comparable period in 2018), and adjusted EPS was $1.60 (+18% over the comparable period in 2018).

Year to Date 2019 Financial Results:

For the nine month period ended September 30, 2019, revenue was $5.4 billion, an increase of 3.4% over the comparable period in the prior year. The increase was driven by organic growth of 5.5% and acquisition growth of 0.8%, partially offset by a 2.5% unfavorable impact from FX and 0.4% due to dispositions.

Earnings from continuing operations of $509.8 million included acquisition-related amortization costs of $78.5 million and rightsizing and other costs of $11.2 million, representing $0.53 and $0.08 of EPS, respectively. In addition, the period included a $46.9 million, or $0.32 of EPS, non-cash after-tax loss on assets held for sale related to Finder Pompe S.r.l. (a supplier of pumps to the upstream oil & gas industry), which was sold on April 2, 2019. Excluding these items, adjusted earnings from continuing operations for the period were $646.4 million (+19% over the comparable period in 2018), and adjusted EPS was $4.40 (+24% over the comparable period in 2018).

Management Commentary:

Dover's President and Chief Executive Officer, Richard J. Tobin, said, "The Dover portfolio companies delivered solid third quarter results as organic growth of 6% drove 180 bps of improvement in adjusted operating margins over the comparable period in 2018 as a result of volume leverage and solid operational execution.

"Our Fluids segment had another solid quarter with organic growth of 10%, driven by robust trading conditions and solid production performance in both our retail fueling business and pumps and process solutions markets. Engineered Systems' organic growth of 6% was driven by both the industrial and printing & identification platforms, with our digital printing business posting strong growth during the quarter. Refrigeration & Food Equipment had a slower quarter due to reduced demand conditions in food retail and heat exchangers, particularly in Asia.

"As we turn our attention to the fourth quarter, we are focused on delivering on our objectives for both earnings and cash flow, despite the uncertain demand and macro environment in several of our businesses and operating geographies. As a result of our solid third quarter performance, we are reaffirming and tightening our full year 2019 adjusted EPS guidance to $5.82 to $5.85."

Conference Call Information:

Dover will host a webcast and conference call to discuss its third quarter 2019 results at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, October 17, 2019. 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 and year to date results and its operating segments can be found on the Company's website.

About Dover:

Dover is a diversified global manufacturer with annual revenue of approximately $7 billion. We deliver innovative equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services through three operating segments: Engineered Systems, Fluids 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 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, 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, 2018, 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 2019


DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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


Three Months Ended
September 30,


Nine Months Ended
September 30,

2019

2018

2019

2018

Revenue

$

1,825,345

$

1,747,403

$

5,360,808

$

5,183,168

Cost of goods and services

1,151,857

1,100,883

3,391,185

3,268,583

Gross profit

673,488

646,520

1,969,623

1,914,585

Selling, general, and administrative expenses

390,775

426,445

1,195,875

1,290,246

Loss on assets held for sale

—

—

46,946

—

Operating earnings

282,713

220,075

726,802

624,339

Interest expense

31,410

31,192

94,972

98,957

Interest income

(1,263)

(2,060)

(3,098)

(6,680)

Other income, net

(5,364)

(2,073)

(11,059)

(6,641)

Earnings before provision for income taxes

257,930

193,016

645,987

538,703

Provision for income taxes

51,924

35,711

136,191

105,533

Earnings from continuing operations

206,006

157,305

509,796

433,170

Loss from discontinued operations, net

—

—

—

(4,472)

Net earnings

$

206,006

$

157,305

$

509,796

$

428,698








Basic earnings (loss) per share*:






Earnings from continuing operations

$

1.42

$

1.07

$

3.51

$

2.87

Loss from discontinued operations, net

—

—

—

(0.03)

Net earnings

$

1.42

$

1.07

$

3.51

$

2.84








Weighted average shares outstanding

145,372

147,344

145,276

151,177

Diluted earnings (loss) per common share*:






Earnings from continuing operations

$

1.40

$

1.05

$

3.47

$

2.82

Loss from discontinued operations, net

—

—

—

(0.03)

Net earnings

$

1.40

$

1.05

$

3.47

$

2.79








Weighted average shares outstanding

147,051

149,457

147,053

153,429








Dividends paid per common share

$

0.49

$

0.48

$

1.45

$

1.42








* Per share data may be impacted by rounding.








DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)


2019

2018

Q1

Q2

Q3

Q3 YTD

Q1

Q2

Q3

Q3 YTD

Q4

FY 2018

REVENUE










Engineered Systems










Printing & Identification

$

282,086

$

278,813

$

287,157

$

848,056

$

282,522

$

299,834

$

283,232

$

865,588

$

296,843

$

1,162,431

Industrials

405,105

417,688

414,634

1,237,427

389,104

403,155

388,302

1,180,561

399,956

1,580,517

687,191

696,501

701,791

2,085,483

671,626

702,989

671,534

2,046,149

696,799

2,742,948












Fluids

703,224

729,433

753,046

2,185,703

628,098

693,666

690,065

2,011,829

785,509

2,797,338












Refrigeration & Food Equipment

334,643

385,474

370,335

1,090,452

338,235

401,766

386,214

1,126,215

326,878

1,453,093












Intra-segment eliminations

(301)

(702)

173

(830)

(288)

(327)

(410)

(1025)

(236)

(1,261)

Total consolidated revenue

$

1,724,757

$

1,810,706

$

1,825,345

$

5,360,808

$

1,637,671

$

1,798,094

$

1,747,403

$

5,183,168

$

1,808,950

$

6,992,118












NET EARNINGS










Segment Earnings:










Engineered Systems

$

123,074

$

131,770

$

136,022

$

390,866

$

102,066

$

126,649

$

108,714

$

337,429

$

113,841

$

451,270

Fluids 1

52,221

128,915

145,502

326,638

67,348

93,028

101,207

261,583

128,221

389,804

Refrigeration & Food Equipment

24,807

44,375

35,211

104,393

29,182

51,372

42,434

122,988

13,131

136,119

Total segments

200,102

305,060

316,735

821,897

198,596

271,049

252,355

722,000

255,193

977,193

Corporate expense / other

30,866

24,512

28,658

84,036

30,763

30,050

30,207

91,020

38,704

129,724

Interest expense

31,808

31,754

31,410

94,972

35,640

32,125

31,192

98,957

32,015

130,972

Interest income

(890)

(945)

(1,263)

(3,098)

(2,057)

(2,563)

(2,060)

(6,680)

(2,201)

(8,881)

Earnings before provision for income taxes

138,318

249,739

257,930

645,987

134,250

211,437

193,016

538,703

186,675

725,378

Provision for income taxes

32,613

51,654

51,924

136,191

24,841

44,981

35,711

105,533

28,700

134,233

Earnings from continuing operations

105,705

198,085

206,006

509,796

109,409

166,456

157,305

433,170

157,975

591,145

Earnings (loss) from discontinued operations, net

—

—

—

—

22,025

(26,497)

—

(4,472)

(16,406)

(20,878)

Net earnings

$

105,705

$

198,085

$

206,006

$

509,796

$

131,434

$

139,959

$

157,305

$

428,698

$

141,569

$

570,267












SEGMENT MARGIN








Engineered Systems

17.9%

18.9%

19.4%

18.7%

15.2%

18.0%

16.2%

16.5%

16.3%

16.5%

Fluids 1

7.4%

17.7%

19.3%

14.9%

10.7%

13.4%

14.7%

13.0%

16.3%

13.9%

Refrigeration & Food Equipment

7.4%

11.5%

9.5%

9.6%

8.6%

12.8%

11.0%

10.9%

4.0%

9.4%

Total segment operating margin

11.6%

16.8%

17.4%

15.3%

12.1%

15.1%

14.4%

13.9%

14.1%

14.0%












DEPRECIATION AND AMORTIZATION EXPENSE

Engineered Systems

$

17,795

$

17,865

$

17,455

$

53,115

$

19,239

$

19,203

$

18,204

$

56,646

$

19,233

$

75,879

Fluids

35,426

35,146

34,762

105,334

34,449

34,981

34,954

104,384

36,060

140,444

Refrigeration & Food Equipment

13,011

12,777

13,047

38,835

13,579

13,524

13,533

40,636

19,841

60,477

Corporate

1,506

1,981

1,523

5,010

1,358

1,595

1,399

4,352

1,428

5,780

Total depreciation and amortization expense

$

67,738

$

67,769

$

66,787

$

202,294

$

68,625

$

69,303

$

68,090

$

206,018

$

76,562

$

282,580












1 Q1 and Q3 YTD 2019 includes a $46,946 loss on assets held for sale for Finder Pompe S.r.l. ("Finder"). Excluding this loss, Fluids segment earnings was $99,167 and $373,584, respectively, and segment margin was 14.1% and 17.1%, respectively.



DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)


2019

2018

Q1

Q2

Q3

Q3 YTD

Q1

Q2

Q3

Q3 YTD

Q4

FY 2018

BOOKINGS










Engineered Systems










Printing & Identification

$

280,658

$

276,402

$

296,654

$

853,714

$

284,437

$

306,770

$

271,367

$

862,574

$

295,963

$

1,158,537

Industrials

414,786

385,181

413,925

1,213,892

466,722

412,780

390,606

1,270,108

481,172

1,751,280

695,444

661,583

710,579

2,067,606

751,159

719,550

661,973

2,132,682

777,135

2,909,817












Fluids

712,856

770,091

780,320

2,263,267

703,461

737,340

723,996

2,164,797

734,943

2,899,740












Refrigeration & Food Equipment

376,998

384,365

323,422

1,084,785

372,701

428,816

331,979

1,133,496

341,221

1,474,717












Intra-segment eliminations

(682)

(408)

(472)

(1,562)

(624)

33

(549)

(1,140)

(584)

(1,724)












Total consolidated bookings

$

1,784,616

$

1,815,631

$

1,813,849

$

5,414,096

$

1,826,697

$

1,885,739

$

1,717,399

$

5,429,835

$

1,852,715

$

7,282,550












BACKLOG










Engineered Systems










Printing & Identification

$

121,374

$

119,967

$

125,084

$

135,915

$

137,019

$

126,609

$

122,028

Industrials

448,137

414,996

412,817

376,474

372,525

367,963

438,546

569,511

534,963

537,901

512,389

509,544

494,572

560,574












Fluids

538,888

564,603

584,539

544,250

564,959

588,632

523,791












Refrigeration & Food Equipment

311,632

310,454

262,870

283,250

309,440

255,783

268,991












Intra-segment eliminations

(377)

(114)

(231)

(389)

(134)

(58)

(185)












Total consolidated backlog

$

1,419,654

$

1,409,906

$

1,385,079

$

1,339,500

$

1,383,809

$

1,338,929

$

1,353,171



DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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

Earnings Per Share











2019

2018

Q 1

Q2

Q3

Q3 YTD

Q1

Q2

Q3

Q3 YTD

Q4

FY 2018

Basic earnings (loss) per common share:

Continuing operations

$

0.73

$

1.36

$

1.42

$

3.51

$

0.71

$

1.10

$

1.07

$

2.87

$

1.08

$

3.94

Discontinued operations

—

—

—

—

0.14

(0.17)

—

(0.03)

(0.11)

(0.14)

Net earnings

$

0.73

$

1.36

$

1.42

$

3.51

$

0.85

$

0.92

$

1.07

$

2.84

$

0.97

$

3.80












Diluted earnings (loss) per common share:








Continuing operations

$

0.72

$

1.35

$

1.40

$

3.47

$

0.70

$

1.08

$

1.05

$

2.82

$

1.07

$

3.89

Discontinued operations

—

—

—

—

0.14

(0.17)

—

(0.03)

(0.11)

(0.14)

Net earnings

$

0.72

$

1.35

$

1.40

$

3.47

$

0.84

$

0.91

$

1.05

$

2.79

$

0.96

$

3.75












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

Net earnings (loss):










Continuing operations

$

105,705

$

198,085

$

206,006

$

509,796

$

109,409

$

166,456

$

157,305

$

433,170

$

157,975

$

591,145

Discontinued operations

—

—

—

—

22,025

(26,497)

—

(4,472)

(16,406)

(20,878)

Net earnings

$

105,705

$

198,085

$

206,006

$

509,796

$

131,434

$

139,959

$

157,305

$

428,698

$

141,569

$

570,267












Weighted average shares outstanding:








Basic

145,087

145,366

145,372

145,276

154,520

151,744

147,344

151,177

146,007

149,874

Diluted

146,911

147,179

147,051

147,053

157,090

153,938

149,457

153,429

147,940

152,133












* Per share data may be impacted by rounding.


Non-GAAP Reconciliations

Adjusted Earnings Per Share (Non-GAAP)

Earnings from continuing operations are adjusted by the effect of acquisition-related amortization, rightsizing and other costs, loss on assets held for sale, and the Tax Cuts and Jobs Act to derive adjusted earnings from continuing operations and adjusted diluted earnings per
common share as follows:

2019

2018

Q1

Q2

Q3

Q3 YTD

Q1

Q2

Q3

Q3 YTD

Q4

FY 2018

Adjusted earnings:










Earnings from continuing operations

$

105,705

$

198,085

$

206,006

$

509,796

$

109,409

$

166,456

$

157,305

$

433,170

$

157,975

$

591,145

Acquisition-related amortization, pre-tax 1

35,635

34,997

34,244

104,876

38,150

38,072

34,997

111,219

35,078

146,297

Acquisition-related amortization, tax impact 2

(8,964)

(8,777)

(8,624)

(26,365)

(9,716)

(9,683)

(8,785)

(28,184)

(8,817)

(37,001)

Rightsizing and other costs, pre-tax 3

3,963

6,457

3,807

14,227

4,371

6,808

24,201

35,380

37,448

72,828

Rightsizing and other costs, tax impact 2

(861)

(1,377)

(806)

(3,044)

(797)

(1,448)

(4,477)

(6,722)

(7,809)

(14,531)

Loss on assets held for sale 4

46,946

—

—

46,946

—

—

—

—

—

—

Tax Cuts and Jobs Act 5

—

—

—

—

—

—

—

—

(2,832)

(2,832)

Adjusted earnings from continuing operations

$

182,424

$

229,385

$

234,627

$

646,436

$

141,417

$

200,205

$

203,241

$

544,863

$

211,043

$

755,906












Adjusted diluted earnings per common share*:










Diluted earnings per share from continuing operations

$

0.72

$

1.35

$

1.40

$

3.47

$

0.70

$

1.08

$

1.05

$

2.82

$

1.07

$

3.89

Acquisition-related amortization, pre-tax 1

0.24

0.24

0.23

0.71

0.24

0.25

0.23

0.72

0.24

0.96

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, pre-tax 3

0.03

0.04

0.03

0.10

0.03

0.04

0.16

0.23

0.25

0.48

Rightsizing and other costs, tax impact 2

(0.01)

(0.01)

(0.01)

(0.02)

(0.01)

(0.01)

(0.03)

(0.04)

(0.05)

(0.10)

Loss on assets held for sale 4

0.32

—

—

0.32

—

—

—

—

—

—

Tax Cuts and Jobs Act 5

—

—

—

—

—

—

—

—

(0.02)

(0.02)

Adjusted diluted earnings per share from continuing operations

$

1.24

$

1.56

$

1.60

$

4.40

$

0.90

$

1.30

$

1.36

$

3.55

$

1.43

$

4.97












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 associated asset charges.

4 Represents a loss on assets held for sale of Finder. Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business.

5 2018 tax benefits related to additional Tax Cuts and Jobs Act regulatory guidance covered by SAB 118.

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


Adjusted EPS from Continuing Operations Guidance Reconciliation

Range

2019 Guidance for Earnings per Share from Continuing Operations (GAAP)

$

4.69

$

4.72

Acquisition-related amortization, net

0.71

Rightsizing and other costs, net

0.10

Loss on assets held for sale

0.32

2019 Guidance for Adjusted Earnings per Share from Continuing Operations (Non-GAAP)

$

5.82

$

5.85



DOVER CORPORATION

ADDITIONAL INFORMATION

(unaudited)(in thousands)

Quarterly Cash Flow


2019

2018

Q1

Q2

Q3

Q3 YTD

Q1

Q2

Q3

Q3 YTD

Q4

FY 2018

Net Cash Flows Provided By (Used In):










Operating activities

$

24,524

$

208,709

$

350,865

$

584,098

$

15,535

$

159,205

$

243,944

$

418,684

$

370,509

$

789,193

Investing activities

(217,690)

(69,755)

(48,612)

(336,057)

(122,597)

(51,606)

(35,922)

(210,125)

(35,355)

(245,480)

Financing activities

36,067

(60,596)

(277,901)

(302,430)

(289,103)

(227,734)

(232,476)

(749,313)

(148,525)

(897,838)


Quarterly Free Cash Flow (Non-GAAP)


2019

2018

Q1

Q2

Q3

Q3 YTD

Q1

Q2

Q3

Q3 YTD

Q4

FY 2018

Cash flow from operating activities

$

24,524

$

208,709

$

350,865

$

584,098

$

15,535

$

159,205

$

243,944

$

418,684

$

370,509

$

789,193

Less: Capital expenditures

(37,122)

(53,970)

(46,184)

(137,276)

(44,678)

(51,686)

(38,192)

(134,556)

(36,438)

(170,994)

Free cash flow

$

(12,598)

$

154,739

$

304,681

$

446,822

$

(29,143)

$

107,519

$

205,752

$

284,128

$

334,071

$

618,199












Free cash flow as a percentage of revenue

(0.7)%

8.5%

16.7%

8.3%

(1.8)%

6.0%

11.8%

5.5%

18.5%

8.8%






Revenue Growth Factors












Three Months Ended September 30, 2019

Engineered
Systems

Fluids

Refrigeration
& Food
Equipment

Total

Organic

6.3

%

9.8

%

(3.2)

%

5.6

%

Acquisitions

—

%

2.6

%

—

%

1.0

%

Dispositions

—

%

(1.3)

%

—

%

(0.5)

%

Currency translation

(1.8)

%

(2.0)

%

(0.9)

%

(1.6)

%

Total *

4.5

%

9.1

%

(4.1)

%

4.5

%
















Nine Months Ended September 30, 2019

Engineered
Systems

Fluids

Refrigeration
& Food
Equipment

Total

Organic

4.5

%

10.7

%

(1.9)

%

5.5

%

Acquisitions

—

%

2.0

%

—

%

0.8

%

Dispositions

—

%

(1.0)

%

—

%

(0.4)

%

Currency translation

(2.6)

%

(3.1)

%

(1.3)

%

(2.5)

%

Total *

1.9

%

8.6

%

(3.2)

%

3.4

%












* Totals may be impacted by rounding.










Non-GAAP Disclosures

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 earnings from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings from continuing operations, diluted earnings per share from continuing operations, 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 earnings from continuing operations represents earnings from continuing operations adjusted for the effect of acquisition-related amortization, rightsizing and other costs, loss on assets held for sale, and the Tax Cuts and Jobs Act. 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. Management believes this information is 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. Adjusted diluted earnings per share from continuing operations represents adjusted earnings from continuing operations divided by average diluted shares.

Free cash flow represents net cash provided by operating activities minus capital expenditures. Management believes that free cash flow is an important measure 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 performance and trends between periods.

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



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SOURCE Dover