Press Release

Dover Reports Third Quarter 2020 Results; Raises Full Year EPS Guidance

DOWNERS GROVE, Ill., Oct. 20, 2020 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the third quarter ended September 30, 2020.

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions, except per share data)	2020		2019		% Change		2020		2019		% Change
U.S. GAAP
Revenue	$	1,748	$	1,825	(4)	%	$	4,903	$	5,361	(9)	%
Net earnings¹	200		206		(3)	%	501		510		(2)	%
Diluted EPS	1.38		1.40		(1)	%	3.45		3.47		(1)	%

Non-GAAP
Organic revenue change					(5)	%					(8)	%
Adjusted net earnings ²	232		235		(1)	%	599		646		(7)	%
Adjusted diluted EPS	1.60		1.60		—	%	4.12		4.40		(6)	%

¹ Q3 2020 and 2019 net earnings include rightsizing and other costs of $4.5 million and $3.0 million, respectively. Q3 2020 also includes an additional $0.4 million expense related to the sale of Chino completed earlier in the year. Year-to-date 2020 and 2019 net earnings include rightsizing and other costs of $24.1 million and $11.2 million, respectively. Year-to-date 2020 also includes a $3.9 million non-cash gain on the sale of Chino, and year-to-date 2019 includes a $46.9 million non-cash loss on assets held for sale related to Finder.

² Q3 2020 and 2019 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.5 million and $25.6 million, respectively, and rightsizing and other costs of $4.5 million and $3.0 million, respectively. Q3 2020 also excludes an additional $0.4 million expense related to the sale of Chino completed earlier in the year. Year-to-date 2020 and 2019 adjusted net earnings exclude acquisition-related amortization costs of $77.8 million and $78.5 million, respectively, and rightsizing and other costs of $24.1 million and $11.2 million, respectively. Year-to-date 2020 also excludes a $3.9 million non-cash gain on the sale of Chino, and year-to-date 2019 excludes a $46.9 million non-cash loss on assets held for sale related to Finder.

For the quarter ended September 30, 2020, Dover generated revenue of $1.7 billion, a decline of 4% (-5% organic) compared to the third quarter of the prior year. GAAP net earnings of $200 million decreased 3%, and GAAP diluted EPS of $1.38 was down 1%. On an adjusted basis, net earnings of $232 million declined 1%, and adjusted diluted EPS of $1.60 was flat versus the comparable quarter of the prior year.

For the nine months ended September 30, 2020, Dover generated revenue of $4.9 billion, a decline of 9% (-8% organic) compared to the first nine months of the prior year. GAAP net earnings of $501 million decreased 2%, and GAAP diluted EPS of $3.45 declined 1% year-over-year. On an adjusted basis, net earnings of $599 million declined 7%, and adjusted diluted EPS of $4.12 was down 6% 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 third quarter results reflect the continued recovery in most of the markets we serve, as well as strong execution by our teams around the world. Operationally, we executed well in the quarter, which allowed us to respond effectively to the improved demand environment, deliver on the backlogs in our long-cycle businesses and positively impact the results for the quarter.

"The trajectory of new orders continued to improve through the third quarter resulting in approximately flat bookings compared to the same quarter last year. We saw activity improve with positive comparable year-over-year organic bookings across multiple markets, most notably marking & coding, automotive aftermarket, food retail, heat exchangers, biopharma, can making, plastics & processing and aerospace & defense. Digital textile printing, compression components and aftermarket, commercial foodservice and waste hauling remained impacted by pandemic-induced disruptions in their respective end-markets.

"This year has undoubtedly been challenging, but it also has provided Dover an opportunity to demonstrate the strength of our diverse portfolio with balanced end market and geographic exposure. Our teams have adapted well to the challenging environment by focusing on what we can control as we serve our customers, maintain safe operating environments and reduce costs. We also continue to make significant strides on our process improvement and product simplification efforts, yielding robust margin performance despite demand softness.

"Looking forward, we recognize the uncertain macroeconomic environment but are cautiously optimistic about the balance of the year and the set-up for 2021. Our year-to-date performance positions us to absorb possible temporary disruptions, should those materialize in the fourth quarter. We are operating with a healthy order backlog and have levers in our possession for continued solid conversion margin performance. As a result of our operating results in Q3, we are raising our full year guidance for 2020."

FULL YEAR 2020 GUIDANCE UPDATE:

Full year 2020 GAAP EPS guidance was raised to $4.52 to $4.57 ($5.40 to $5.45 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its third quarter and year-to-date 2020 results as well as updated 2020 guidance at 9:00 A.M. Eastern Time (8:00 A.M. Central Time) on Tuesday, October 20, 2020. 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 approximately $7 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of over 23,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at dovercorporation.com.

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, the impacts of COVID-19, or other future pandemics, on the global economy and on our customers, suppliers, employees, business and cash flows, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019, 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 2020 DOVER CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)(in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue	$	1,748,256	$	1,825,345	$	4,903,370	$	5,360,808
Cost of goods and services	1,089,527		1,151,857		3,080,800		3,391,185
Gross profit	658,729		673,488		1,822,570		1,969,623
Selling, general, and administrative expenses	381,831		390,775		1,135,512		1,195,875
Loss on assets held for sale	—		—		—		46,946
Operating earnings	276,898		282,713		687,058		726,802
Interest expense	27,724		31,410		83,703		94,972
Interest income	(960)		(1,263)		(2,871)		(3,098)
Loss (gain) on sale of a business	557		—		(5,213)		—
Other income, net	(1,420)		(5,364)		(9,887)		(11,059)
Earnings before provision for income taxes	250,997		257,930		621,326		645,987
Provision for income taxes	50,697		51,924		119,981		136,191
Net earnings	$	200,300	$	206,006	$	501,345	$	509,796

Net earnings per share:
Basic	$	1.39	$	1.42	$	3.48	$	3.51
Diluted	$	1.38	$	1.40	$	3.45	$	3.47
Weighted average shares outstanding:
Basic	144,032		145,372		144,082		145,276
Diluted	145,289		147,051		145,313		147,053

Dividends paid per common share	$	0.50	$	0.49	$	1.48	$	1.45

* Per share data may be impacted by rounding.

DOVER CORPORATION QUARTERLY SEGMENT INFORMATION (unaudited)(in thousands)

	2020								2019
	Q1		Q2		Q3		Q3 YTD		Q1		Q2		Q3		Q3 YTD		Q4		FY 2019
REVENUE
Engineered Products	$	408,160	$	342,380	$	386,562	$	1,137,102	$	418,851	$	429,928	$	426,689	$	1,275,468	$	422,089	$	1,697,557
Fueling Solutions	359,982		326,495		380,511		1,066,988		373,050		390,586		411,769		1,175,405		444,772		1,620,177
Imaging & Identification	256,765		227,977		265,690		750,432		268,354		266,588		275,109		810,051		274,420		1,084,471
Pumps & Process Solutions	319,536		309,095		347,875		976,506		330,219		338,924		341,337		1,010,480		328,048		1,338,528
Refrigeration & Food Equipment	311,913		293,527		368,395		973,835		334,643		385,474		370,335		1,090,452		306,165		1,396,617
Intra-segment eliminations	(417)		(299)		(777)		(1,493)		(360)		(794)		106		(1,048)		95		(953)
Total consolidated revenue	$	1,655,939	$	1,499,175	$1,748,256		$4,903,370		$	1,724,757	$	1,810,706	$	1,825,345	$	5,360,808	$	1,775,589	$	7,136,397

NET EARNINGS
Segment Earnings:
Engineered Products	$	69,094	$	47,702	$	64,890	$	181,686	$	67,119	$	77,129	$	74,367	$	218,615	$	73,233	$	291,848
Fueling Solutions	53,498		47,214		66,601		167,313		37,230		52,637		68,069		157,936		73,937		231,873
Imaging & Identification	51,482		38,046		51,928		141,456		55,955		54,641		61,655		172,251		57,233		229,484
Pumps & Process Solutions ¹	66,079		67,702		89,786		223,567		14,991		76,278		77,433		168,702		71,379		240,081
Refrigeration & Food Equipment ²	23,529		11,459		40,159		75,147		24,807		44,375		35,211		104,393		14,439		118,832
Total segment earnings (EBIT)	263,682		212,123		313,364		789,169		200,102		305,060		316,735		821,897		290,221		1,112,118
Corporate expense / other³	24,097		27,311		35,603		87,011		30,866		24,512		28,658		84,036		63,781		147,817
Interest expense	27,268		28,711		27,724		83,703		31,808		31,754		31,410		94,972		30,846		125,818
Interest income	(1,183)		(728)		(960)		(2,871)		(890)		(945)		(1,263)		(3,098)		(1,428)		(4,526)
Earnings before provision for income taxes	213,500		156,829		250,997		621,326		138,318		249,739		257,930		645,987		197,022		843,009
Provision for income taxes	37,221		32,063		50,697		119,981		32,613		51,654		51,924		136,191		28,900		165,091
Net earnings	$	176,279	$	124,766	$	200,300	$	501,345	$	105,705	$	198,085	$	206,006	$	509,796	$	168,122	$	677,918

SEGMENT MARGIN
Engineered Products	16.9 %		13.9 %		16.8 %		16.0 %		16.0 %		17.9 %		17.4 %		17.1 %		17.4 %		17.2 %
Fueling Solutions	14.9 %		14.5 %		17.5 %		15.7 %		10.0 %		13.5 %		16.5 %		13.4 %		16.6 %		14.3 %
Imaging & Identification	20.1 %		16.7 %		19.5 %		18.8 %		20.9 %		20.5 %		22.4 %		21.3 %		20.9 %		21.2 %
Pumps & Process Solutions ¹	20.7 %		21.9 %		25.8 %		22.9 %		4.5 %		22.5 %		22.7 %		16.7 %		21.8 %		17.9 %
Refrigeration & Food Equipment ²	7.5 %		3.9 %		10.9 %		7.7 %		7.4 %		11.5 %		9.5 %		9.6 %		4.7 %		8.5 %
Total segment operating margin	15.9 %		14.1 %		17.9 %		16.1 %		11.6 %		16.8 %		17.4 %		15.3 %		16.3 %		15.6 %

DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products	$	10,122	$	9,722	$	10,717	$	30,561	$	10,359	$	10,452	$	10,095	$	30,906	$	10,126	$	41,032
Fueling Solutions	18,339		17,968		18,014		54,321		17,879		18,945		18,744		55,568		19,477		75,045
Imaging & Identification	8,769		9,224		9,809		27,802		7,435		7,413		7,360		22,208		8,322		30,530
Pumps & Process Solutions	18,336		17,572		17,206		53,114		17,548		16,201		16,018		49,767		17,817		67,584
Refrigeration & Food Equipment	11,548		11,421		12,081		35,050		13,011		12,777		13,047		38,835		12,525		51,360
Corporate	1,638		1,696		1,662		4,996		1,506		1,981		1,523		5,010		1,726		6,736
Total depreciation and amortization expense	$	68,752	$	67,603	$	69,489	$	205,844	$	67,738	$	67,769	$	66,787	$	202,294	$	69,993	$	272,287

¹ Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l.
² Q1, Q2, Q3, and Q3 YTD 2020 includes a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain on the sale of the Chino, California branch of The AMS Group ("AMS Chino"), respectively. Q2 and Q3 YTD 2020 also include a $3,640 write-off of assets.
³ Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt.

OVER CORPORATION QUARTERLY EARNINGS PER SHARE (unaudited)(in thousands, except per share data*)

Earnings Per Share
	2020								2019
	Q1		Q2		Q3		Q3 YTD		Q1		Q2		Q3		Q3 YTD		Q4		FY 2019
Net earnings per share:
Basic	$	1.22	$	0.87	$	1.39	$	3.48	$	0.73	$	1.36	$	1.42	$	3.51	$	1.16	$	4.67
Diluted	$	1.21	$	0.86	$	1.38	$	3.45	$	0.72	$	1.35	$	1.40	$	3.47	$	1.15	$	4.61

Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:
Net earnings	$	176,279	$	124,766	$	200,300	$	501,345	$	105,705	$	198,085	$	206,006	$	509,796	$	168,122	$	677,918

Weighted average shares outstanding:
Basic	144,259		143,955		144,032		144,082		145,087		145,366		145,372		145,276		144,966		145,198
Diluted	145,782		144,995		145,289		145,313		146,911		147,179		147,051		147,053		146,790		146,992

* 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

	2020								2019
	Q1		Q2		Q3		Q3 YTD		Q1		Q2		Q3		Q3 YTD		Q4		FY 2019
Adjusted net earnings:
Net earnings	$	176,279	$	124,766	$	200,300	$	501,345	$	105,705	$	198,085	$	206,006	$	509,796	$	168,122	$	677,918
Acquisition-related amortization, pre- tax ¹	34,062		34,101		35,325		103,488		35,635		34,997		34,244		104,876		33,460		138,336
Acquisition-related amortization, tax impact ²	(8,411)		(8,451)		(8,810)		(25,672)		(8,964)		(8,777)		(8,624)		(26,365)		(8,403)		(34,768)
Rightsizing and other costs, pre-tax ³	7,859		16,840		5,848		30,547		3,963		6,457		3,807		14,227		17,926		32,153
Rightsizing and other costs, tax impact ²	(1,605)		(3,452)		(1,343)		(6,400)		(861)		(1,377)		(806)		(3,044)		(3,745)		(6,789)
Loss on extinguishment of debt, pre- tax ⁴	—		—		—		—		—		—		—		—		23,543		23,543
Loss on extinguishment of debt, tax impact ²	—		—		—		—		—		—		—		—		(5,163)		(5,163)
Loss on assets held for sale ⁵	—		—		—		—		46,946		—		—		46,946		—		46,946
(Gain) loss on disposition, pre-tax ⁶	(6,551)		781		557		(5,213)		—		—		—		—		—		—
(Gain) loss on disposition, tax-impact ²	1,592		(190)		(135)		1,267		—		—		—		—		—		—
Adjusted net earnings	$	203,225	$	164,395	$	231,742	$	599,362	$	182,424	$	229,385	$	234,627	$	646,436	$	225,740	$	872,176

Adjusted diluted net earnings per share:
Diluted net earnings per share	$	1.21	$	0.86	$	1.38	$	3.45	$	0.72	$	1.35	$	1.40	$	3.47	$	1.15	$	4.61
Acquisition-related amortization, pre- tax ¹	0.23		0.24		0.24		0.71		0.24		0.24		0.23		0.71		0.23		0.94
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	0.05		0.12		0.04		0.21		0.03		0.04		0.03		0.10		0.12		0.22
Rightsizing and other costs, tax impact ²	(0.01)		(0.02)		(0.01)		(0.04)		(0.01)		(0.01)		(0.01)		(0.02)		(0.03)		(0.06)
Loss on extinguishment of debt, pre- tax ⁴	—		—		—		—		—		—		—		—		0.16		0.16
Loss on extinguishment of debt, tax impact ²	—		—		—		—		—		—		—		—		(0.04)		(0.04)
Loss on assets held for sale ⁵	—		—		—		—		0.32		—		—		0.32		—		0.32
(Gain) loss on disposition, pre-tax ⁶	(0.04)		—		—		(0.04)		—		—		—		—		—		—
(Gain) loss on disposition, tax-impact ²	0.01		—		—		0.01		—		—		—		—		—		—
Adjusted diluted net earnings per share	$	1.39	$	1.13	$	1.60	$	4.12	$	1.24	$	1.56	$	1.60	$	4.40	$	1.54	$	5.93

¹ Includes amortization on acquisition-related intangible assets and inventory step-up.
² Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.
³ Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other asset charges.
⁴ Represents a loss on early extinguishment of €300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021.
⁵ Represents a loss on assets held for sale of Finder Pompe S.r.l. ("Finder"). Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business.
⁶ 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
	2020												2019
	Q1			Q2			Q3			Q3 YTD			Q1			Q2			Q3			Q3 YTD			Q4			FY 2019
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)	$	69,094		$	47,702		$	64,890		$	181,686		$	67,119		$	77,129		$	74,367		$	218,615		$	73,233		$	291,848
Rightsizing and other costs	361			4,169			2,375			6,905			80			1,125			590			1,795			1,355			3,150
Adjusted EBIT - Segment	69,455			51,871			67,265			188,591			67,199			78,254			74,957			220,410			74,588			294,998
Adjusted EBIT %	17.0		%	15.2		%	17.4		%	16.6		%	16.0		%	18.2		%	17.6		%	17.3		%	17.7		%	17.4		%
Adjusted D&A ²	10,122			9,722			10,651			30,495			10,359			9,855			10,095			30,309			10,126			40,435
Adjusted EBITDA - Segment	$	79,577		$	61,593		$	77,916		$	219,086		$	77,558		$	88,109		$	85,052		$	250,719		$	84,714		$	335,433
Adjusted EBITDA %	19.5		%	18.0		%	20.2		%	19.3		%	18.5		%	20.5		%	19.9		%	19.7		%	20.1		%	19.8		%
Fueling Solutions:
Segment earnings (EBIT)	$	53,498		$	47,214		$	66,601		$	167,313		$	37,230		$	52,637		$	68,069		$	157,936		$	73,937		$	231,873
Rightsizing and other costs	1,493			868			1,615			3,976			752			1,768			811			3,331			1,554			4,885
Adjusted EBIT - Segment	54,991			48,082			68,216			171,289			37,982			54,405			68,880			161,267			75,491			236,758
Adjusted EBIT %	15.3		%	14.7		%	17.9		%	16.1		%	10.2		%	13.9		%	16.7		%	13.7		%	17.0		%	14.6		%
Adjusted D&A ²	18,339			17,783			18,014			54,136			17,879			18,945			18,744			55,568			19,477			75,045
Adjusted EBITDA - Segment	$	73,330		$	65,865		$	86,230		$	225,425		$	55,861		$	73,350		$	87,624		$	216,835		$	94,968		$	311,803
Adjusted EBITDA %	20.4		%	20.2		%	22.7		%	21.1		%	15.0		%	18.8		%	21.3		%	18.4		%	21.4		%	19.2		%
Imaging & Identification:
Segment earnings (EBIT)	$	51,482		$	38,046		$	51,928		$	141,456		$	55,955		$	54,641		$	61,655		$	172,251		$	57,233		$	229,484
Rightsizing and other costs	264			(527)			99			(164)			389			1,268			301			1,958			4,392			6,350
Adjusted EBIT - Segment	51,746			37,519			52,027			141,292			56,344			55,909			61,956			174,209			61,625			235,834
Adjusted EBIT %	20.2		%	16.5		%	19.6		%	18.8		%	21.0		%	21.0		%	22.5		%	21.5		%	22.5		%	21.7		%
Adjusted D&A ²	8,769			9,224			9,809			27,802			7,336			7,317			7,286			21,939			7,892			29,831
Adjusted EBITDA - Segment	$	60,515		$	46,743		$	61,836		$	169,094		$	63,680		$	63,226		$	69,242		$	196,148		$	69,517		$	265,665
Adjusted EBITDA %	23.6		%	20.5		%	23.3		%	22.5		%	23.7		%	23.7		%	25.2		%	24.2		%	25.3		%	24.5		%
Pumps & Process Solutions:
Segment earnings (EBIT)	$	66,079		$	67,702		$	89,786		$	223,567		$	14,991		$	76,278		$	77,433		$	168,702		$	71,379		$	240,081
Rightsizing and other costs	3,846			4,691			1,771			10,308			414			903			943			2,260			3,868			6,128
Loss on assets held for sale ¹	—			—			—			—			46,946			—			—			46,946			—			46,946
Adjusted EBIT - Segment	69,925			72,393			91,557			233,875			62,351			77,181			78,376			217,908			75,247			293,155
Adjusted EBIT %	21.9		%	23.4		%	26.3		%	24.0		%	18.9		%	22.8		%	23.0		%	21.6		%	22.9		%	21.9		%
Adjusted D&A ²	16,230			16,816			17,206			50,252			17,548			16,199			16,018			49,765			17,004			66,769
Adjusted EBITDA - Segment	$	86,155		$	89,209		$	108,763		$	284,127		$	79,899		$	93,380		$	94,394		$	267,673		$	92,251		$	359,924
Adjusted EBITDA %	27.0		%	28.9		%	31.3		%	29.1		%	24.2		%	27.6		%	27.7		%	26.5		%	28.1		%	26.9		%
Refrigeration & Food Equipment:
Segment earnings (EBIT)	$	23,529		$	11,459		$	40,159		$	75,147		$	24,807		$	44,375		$	35,211		$	104,393		$	14,439		$	118,832
Rightsizing and other costs	704			6,016			(971)			5,749			2,293			666			840			3,799			2,243			6,042
(Gain) loss on disposition ³	(6,551)			781			557			(5,213)			—			—			—			—			—			—
Adjusted EBIT - Segment	17,682			18,256			39,745			75,683			27,100			45,041			36,051			108,192			16,682			124,874
Adjusted EBIT %	5.7		%	6.2		%	10.8		%	7.8		%	8.1		%	11.7		%	9.7		%	9.9		%	5.4		%	8.9		%
Adjusted D&A ²	11,548			11,421			12,081			35,050			13,011			12,777			13,047			38,835			12,525			51,360
Adjusted EBITDA - Segment	$	29,230		$	29,677		$	51,826		$	110,733		$	40,111		$	57,818		$	49,098		$	147,027		$	29,207		$	176,234
Adjusted EBITDA %	9.4		%	10.1		%	14.1		%	11.4		%	12.0		%	15.0		%	13.3		%	13.5		%	9.5		%	12.6		%
Total Segments:
Segment earnings (EBIT) ⁴	$	263,682		$	212,123		$	313,364		$	789,169		$	200,102		$	305,060		$	316,735		$	821,897		$	290,221		$	1,112,118
Rightsizing and other costs	6,668			15,217			4,889			26,774			3,928			5,730			3,485			13,143			13,412			26,555
Loss on assets held for sale ¹	—			—			—			—			46,946			—			—			46,946			—			46,946
(Gain) loss on disposition ³	(6,551)			781			557			(5,213)			—			—			—			—			—			—
Adjusted EBIT - Segment ⁵	263,799			228,121			318,810			810,730			250,976			310,790			320,220			881,986			303,633			1,185,619
Adjusted EBIT % ⁴	15.9		%	15.2		%	18.2		%	16.5		%	14.5		%	17.2		%	17.5		%	16.4		%	17.1		%	16.6		%
Adjusted D&A ²	65,008			64,966			67,761			197,735			66,133			65,093			65,190			196,416			67,024			263,440
Adjusted EBITDA - Segment ⁵	$	328,807		$	293,087		$	386,571		$	1,008,465		$	317,109		$	375,883		$	385,410		$	1,078,402		$	370,657		$	1,449,059
Adjusted EBITDA % ⁵	19.9		%	19.5		%	22.1		%	20.6		%	18.4		%	20.7		%	21.1		%	20.1		%	20.9		%	20.3		%
¹ Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder.
² Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.
³ Q1, Q2, Q3, and Q3 YTD 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

	2020
	Q3		Q3 YTD
Organic
Engineered Products	(10.4)	%	(10.9)	%
Fueling Solutions	(7.9)	%	(8.5)	%
Imaging & Identification	(7.6)	%	(8.6)	%
Pumps & Process Solutions	(0.9)	%	(3.6)	%
Refrigeration & Food Equipment	2.6	%	(7.6)	%
Total Organic	(5.1)	%	(8.0)	%
Acquisitions	1.0	%	0.8	%
Dispositions	(0.8)	%	(0.7)	%
Currency translation	0.7	%	(0.6)	%
Total*	(4.2)	%	(8.5)	%

* Totals may be impacted by rounding.

	2020
	Q3
Organic
United States	(4.2)	%
Other Americas	(4.7)	%
Europe	(4.2)	%
Asia	(10.1)	%
Other	(5.8)	%
Total Organic	(5.1)	%
Acquisitions	1.0	%
Dispositions	(0.8)	%
Currency translation	0.7	%
Total*	(4.2)	%

* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation
	Range
2020 Guidance for Earnings per Share (GAAP)	$	4.52		$	4.57
Acquisition-related amortization, net			0.72
Rightsizing and other costs, net			0.19
Gain on disposition, net			(0.03)
2020 Guidance for Adjusted Earnings per Share (Non-GAAP)	$	5.40		$	5.45

DOVER CORPORATION QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP) (unaudited)(in thousands)

Quarterly Cash Flow
	2020								2019
	Q1		Q2		Q3		Q3 YTD		Q1		Q2		Q3		Q3 YTD		Q4		FY 2019
Net Cash Flows Provided By (Used In):
Operating activities	$	75,863	$	271,809	$	339,247	$	686,919	$	24,524	$	208,709	$	350,865	$	584,098	$	361,208	$	945,306
Investing activities	(230,511)		(67,763)		(64,724)		(362,998)		(217,690)		(69,755)		(48,612)		(336,057)		(48,198)		(384,255)
Financing activities	280,954		(67,458)		(496,832)		(283,336)		36,067		(60,596)		(277,901)		(302,430)		(255,612)		(558,042)

Quarterly Free Cash Flow (Non-GAAP)
	2020												2019
	Q1			Q2			Q3			Q3 YTD			Q1			Q2			Q3			Q3 YTD			Q4			FY 2019
Cash flow from operating activities¹	$	75,863		$	271,809		$	339,247		$	686,919		$	24,524		$	208,709		$	350,865		$	584,098		$	361,208		$	945,306
Less: Capital expenditures	(40,172)			(38,999)			(44,393)			(123,564)			(37,122)			(53,970)			(46,184)			(137,276)			(49,528)			(186,804)
Free cash flow	$	35,691		$	232,810		$	294,854		$	563,355		$	(12,598)		$	154,739		$	304,681		$	446,822		$	311,680		$	758,502

Free cash flow as a percentage of revenue	2.2		%	15.5		%	16.9		%	11.5		%	(0.7)		%	8.5		%	16.7		%	8.3		%	17.6		%	10.6		%

Free cash flow as a percentage of net earnings	20.2		%	186.6		%	147.2		%	112.4		%	(11.9)		%	78.1		%	147.9		%	87.6		%	185.4		%	111.9		%

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

DOVER CORPORATION PERFORMANCE MEASURES (unaudited)(in thousands)

	2020								2019
	Q1		Q2		Q3		Q3 YTD		Q1		Q2		Q3		Q3 YTD		Q4		FY 2019
BOOKINGS

Engineered Products	$	414,972	$	278,373	$	381,139	1,074,484		$	427,697	$	397,420	$	426,059	1,251,176		$	457,145	$	1,708,321
Fueling Solutions	373,070		311,498		383,902		1,068,470		343,083		394,256		450,727		1,188,066		425,698		1,613,764
Imaging & Identification	272,604		221,315		266,423		760,342		267,762		264,175		284,527		816,464		276,451		1,092,915
Pumps & Process Solutions	369,403		275,872		323,801		969,076		369,801		375,905		329,642		1,075,348		318,482		1,393,830
Refrigeration & Food Equipment	355,157		326,400		449,549		1,131,106		376,998		384,365		323,422		1,084,785		361,970		1,446,755
Intra-segment eliminations	(375)		(460)		(926)		(1,761)		(725)		(490)		(528)		(1,743)		872		(871)
Total consolidated bookings	$	1,784,831	$	1,412,998	$	1,803,888	$	5,001,717	$	1,784,616	$	1,815,631	$	1,813,849	$	5,414,096	$	1,840,618	$	7,254,714

BACKLOG

Engineered Products	$	453,867	$	378,874	$	373,458			$	451,335	$	418,154	$	416,025			$	452,142
Fueling Solutions	211,518		199,305		204,574				185,847		186,202		223,081				205,842
Imaging & Identification	170,119		168,904		171,158				118,177		116,810		121,877				125,775
Pumps & Process Solutions	397,969		379,090		361,631				353,066		378,427		361,478				353,073
Refrigeration & Food Equipment	356,133		390,368		472,140				311,632		310,454		262,870				320,577
Intra-segment eliminations	(159)		(367)		(269)				(403)		(141)		(252)				(249)
Total consolidated backlog	$	1,589,447	$	1,516,174	$	1,582,692			$	1,419,654	$	1,409,906	$	1,385,079			$	1,457,160

Bookings Growth Factors

	2020
	Q3		Q3 YTD
Organic
Engineered Products	(11.6)	%	(14.2)	%
Fueling Solutions	(14.2)	%	(8.7)	%
Imaging & Identification	(9.9)	%	(8.7)	%
Pumps & Process Solutions	(3.7)	%	(9.4)	%
Refrigeration & Food Equipment	41.3	%	6.7	%
Total Organic	(1.1)	%	(7.0)	%
Acquisitions	0.8	%	0.8	%
Dispositions	(0.6)	%	(0.6)	%
Currency translation	0.4	%	(0.8)	%
Total*	(0.5)	%	(7.6)	%

* 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, loss on extinguishment of debt, loss on assets held for sale, 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, a 2019 loss on assets held for sale and a 2020 gain/loss on disposition. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.

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

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

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

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

Performance Measures Definitions

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

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

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

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

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

View original content to download multimedia:http://www.prnewswire.com/news-releases/dover-reports-third-quarter-2020-results-raises-full-year-eps-guidance-301155275.html

SOURCE Dover