EX-99.1 2 a202207218-kexhibit991pr.htm EX-99.1 Document




Exhibit 99.1

doverlogo.jpg
Investor Contact:Media Contact:
Jack DickensAdrian Sakowicz
Senior Director - Investor RelationsVice President - Communications
(630) 743-2566(630) 743-5039
jdickens@dovercorp.comasakowicz@dovercorp.com

DOVER REPORTS SECOND QUARTER 2022 RESULTS


DOWNERS GROVE, Ill., July 21, 2022 — Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2022.
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, except per share data)20222021% Change20222021% Change
U.S. GAAP
Revenue$2,159 $2,032 6 %$4,211 $3,900 8 %
Net earnings
290 265 9 %516 497 4 %
Diluted EPS
2.00 1.82 10 %3.56 3.43 4 %
Non-GAAP
Organic revenue change7 %8 %
Adjusted net earnings 1
309 299 3 %585 562 4 %
Adjusted diluted EPS2.14 2.06 4 %4.03 3.87 4 %

1 Q2 2022 and 2021 adjusted net earnings exclude after tax purchase accounting expenses of $36.0 million and $26.6 million, respectively, and restructuring and other costs of $6.1 million and $8.2 million, respectively. Year-to-date and Q2 2022 also exclude a $22.6 million reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act. Year-to-date 2022 and 2021 adjusted net earnings exclude after tax purchase accounting expenses of $76.8 million and $53.4 million, respectively, and restructuring and other costs of $14.5 million and $11.3 million, respectively.


For the quarter ended June 30, 2022, Dover generated revenue of $2.2 billion, an increase of 6% (+7% organic) compared to the second quarter of the prior year. GAAP net earnings of $290 million increased 9%, and GAAP diluted EPS of $2.00 was up 10%. On an adjusted basis, net earnings of $309 million increased 3% and adjusted diluted EPS of $2.14 was up 4% versus the comparable quarter of the prior year.

For the six months ended June 30, 2022, Dover generated revenue of $4.2 billion, an increase of 8% (+8%% organic) compared to the comparable period of the prior year. GAAP net earnings of $516 million increased 4%, and GAAP diluted EPS of $3.56 was also up 4% year-over-year. On an adjusted basis, net earnings of $585 million increased 4%, and adjusted diluted EPS of $4.03 was also up 4% 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 team delivered a strong second quarter performance which led to record quarterly revenue and sequential and year-over-year earnings growth, despite a difficult operating environment and significant foreign currency headwinds. Our backlog remains at a historically high level, providing a good line of sight for operational execution while new order bookings normalize as our lead times improve.

“Input shortages and the COVID-19 lockdowns in China negatively impacted shipment volumes and fixed cost absorption across multiple businesses. Despite these headwinds, our operating margin improved sequentially in the quarter, driven by cost controls, overall strong volume and meaningfully improving price-cost dynamics, which we expect to drive profitability in the second half of the year.






“Our strong balance sheet supports our disciplined capital allocation initiatives. We are investing in capacity expansions and productivity improvements across many operating companies to capture secular revenue growth opportunities and continue driving efficiencies. The recently-announced Malema acquisition closed on July 1 and we continue our pursuit of attractive bolt-on acquisitions. We also repurchased $85 million of our common stock in the second quarter and will continue to proactively evaluate various capital deployment alternatives through the remainder of the year.

“Our strong backlog, constructive demand and execution playbook tailored to various operating scenarios position us well to deliver revenue and earnings growth amidst continuing economic uncertainty. We are maintaining our 2022 adjusted full-year guidance.”

FULL YEAR 2022 GUIDANCE:

In 2022, Dover expects to generate GAAP EPS in the range of $7.44 to $7.64 (adjusted EPS of $8.45 to $8.65), based on full year revenue growth of 8% to 10% (8% to 10% on an organic basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its second quarter and year-to-date 2022 results at 9:00 A.M. Eastern Time (8:00 A.M. Central Time) on Thursday, July 21, 2022. 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 second 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 $8 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. 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 25,000 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, the impact on global or a regional economy due to the outbreak or escalation of hostilities or war, 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, 2021, 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 - SECOND QUARTER 2022

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenue$2,158,715 $2,031,676 $4,210,616 $3,899,577 
Cost of goods and services1,377,432 1,259,504 2,686,139 2,405,857 
Gross profit781,283 772,172 1,524,477 1,493,720 
Selling, general, and administrative expenses424,433 428,042 868,276 837,040 
Operating earnings356,850 344,130 656,201 656,680 
Interest expense26,989 26,661 53,541 53,484 
Interest income(949)(942)(1,724)(1,622)
Other income, net(4,546)(4,933)(6,675)(7,776)
Earnings before provision for income taxes335,356 323,344 611,059 612,594 
Provision for income taxes45,738 58,836 95,288 115,317 
Net earnings$289,618 $264,508 $515,771 $497,277 
Net earnings per share:
Basic$2.01 $1.84 $3.58 $3.46 
Diluted$2.00 $1.82 $3.56 $3.43 
Weighted average shares outstanding:
Basic143,832143,941143,959143,854
Diluted144,669145,118144,998145,040
Dividends paid per common share$0.50 $0.495 $1.00 $0.99 
* Per share data may be impacted by rounding.
IS - 1

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
REVENUE
Engineered Products$487,647 $514,436 $1,002,083 $428,127 $442,091 $870,218 $447,798 $462,811 $1,780,827 
Clean Energy & Fueling458,395 494,075 952,470 389,678 437,042 826,720 410,561 410,872 1,648,153 
Imaging & Identification272,255 275,951 548,206 284,328 294,076 578,404 292,535 292,428 1,163,367 
Pumps & Process Solutions435,195 441,127 876,322 394,377 428,701 823,078 438,240 447,316 1,708,634 
Climate & Sustainability Technologies399,078 434,164 833,242 372,077 430,506 802,583 429,425 376,167 1,608,175 
Intersegment eliminations(669)(1,038)(1,707)(686)(740)(1,426)(290)(359)(2,075)
Total consolidated revenue$2,051,901 $2,158,715 $4,210,616 $1,867,901 $2,031,676 $3,899,577 $2,018,269 $1,989,235 $7,907,081 
NET EARNINGS
Segment Earnings:
Engineered Products$71,130 $81,671 $152,801 $76,684 $71,255 $147,939 $67,376 $62,537 $277,852 
Clean Energy & Fueling
72,962 99,034 171,996 79,572 93,430 173,002 80,101 74,083 327,186 
Imaging & Identification58,598 61,392 119,990 63,618 66,565 130,183 70,635 66,114 266,932 
Pumps & Process Solutions 146,617 138,048 284,665 128,895 146,759 275,654 150,275 149,664 575,593 
Climate & Sustainability Technologies
53,609 64,181 117,790 43,475 56,905 100,380 49,734 35,403 185,517 
Total segment earnings402,916 444,326 847,242 392,244 434,914 827,158 418,121 387,801 1,633,080 
Purchase accounting expenses 1
53,286 47,019 100,305 35,516 35,162 70,678 35,587 35,715 141,980 
Restructuring and other costs (benefits) 2
10,552 7,944 18,496 4,162 10,779 14,941 (3,201)26,696 38,436 
Loss (gain) on dispositions 3
194 — 194 — — — — (206,338)(206,338)
Corporate expense / other 4
37,404 27,967 65,371 37,173 39,910 77,083 33,249 45,966 156,298 
Interest expense26,552 26,989 53,541 26,823 26,661 53,484 26,433 26,402 106,319 
Interest income(775)(949)(1,724)(680)(942)(1,622)(1,466)(1,353)(4,441)
Earnings before provision for income taxes275,703 335,356 611,059 289,250 323,344 612,594 327,519 460,713 1,400,826 
Provision for income taxes49,550 45,738 95,288 56,481 58,836 115,317 63,763 97,928 277,008 
Net earnings$226,153 $289,618 $515,771 $232,769 $264,508 $497,277 $263,756 $362,785 $1,123,818 
SEGMENT EARNINGS MARGIN
Engineered Products14.6%15.9%15.2%17.9%16.1%17.0%15.0%13.5%15.6%
Clean Energy & Fueling
15.9%20.0%18.1%20.4%21.4%20.9%19.5%18.0%19.9%
Imaging & Identification21.5%22.2%21.9%22.4%22.6%22.5%24.1%22.6%22.9%
Pumps & Process Solutions 33.7%31.3%32.5%32.7%34.2%33.5%34.3%33.5%33.7%
Climate & Sustainability Technologies
13.4%14.8%14.1%11.7%13.2%12.5%11.6%9.4%11.5%
Total segment earnings margin19.6%20.6%20.1%21.0%21.4%21.2%20.7%19.5%20.7%
1 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.
2 Restructuring and other costs (benefits) relate to actions taken for employee reductions, facility consolidations and site closures, product line exits, and other asset charges.
3 Loss (gain) on dispositions include working capital adjustments related to dispositions.
4 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters.

IS - 2

DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)
Earnings Per Share
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
Net earnings per share:
Basic$1.57 $2.01 $3.58 $1.62 $1.84 $3.46 $1.83 $2.52 $7.81 
Diluted$1.56 $2.00 $3.56 $1.61 $1.82 $3.43 $1.81 $2.49 $7.74 
Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:
Net earnings$226,153 $289,618 $515,771 $232,769 $264,508 $497,277 $263,756 $362,785 $1,123,818 
Weighted average shares outstanding:
Basic144,087 143,832 143,959 143,765 143,941 143,854 143,976 144,005 143,923 
Diluted145,329 144,669 144,998 144,938 145,118 145,040 145,440 145,460 145,273 
* Per share data may be impacted by rounding.




















































IS - 3


DOVER CORPORATION
QUARTERLY ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
(unaudited)(in thousands, except per share data*)

Non-GAAP Reconciliations
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
Adjusted net earnings:
Net earnings$226,153 $289,618 $515,771 $232,769 $264,508 $497,277 $263,756 $362,785 $1,123,818 
Purchase accounting expenses, pre-tax 1
53,286 47,019 100,305 35,516 35,162 70,678 35,587 35,715 141,980 
Purchase accounting expenses, tax impact 2
(12,538)(11,013)(23,551)(8,720)(8,571)(17,291)(8,700)(8,763)(34,754)
Restructuring and other costs (benefits), pre-tax 3
10,552 7,944 18,496 4,162 10,779 14,941 (3,201)26,696 38,436 
Restructuring and other costs (benefits), tax impact 2
(2,191)(1,803)(3,994)(1,031)(2,597)(3,628)902 (4,610)(7,336)
Loss (gain) on dispositions, pre-tax 4
194 — 194 — — — — (206,338)(206,338)
Loss (gain) on dispositions, tax-impact 2
(27)— (27)— — — — 53,218 53,218 
Tax Cuts and Jobs Act 5
— (22,579)(22,579)— — — — — — 
Adjusted net earnings
$275,429 $309,186 $584,615 $262,696 $299,281 $561,977 $288,344 $258,703 $1,109,024 
Adjusted diluted net earnings per share:
Diluted net earnings per share$1.56 $2.00 $3.56 $1.61 $1.82 $3.43 $1.81 $2.49 $7.74 
Purchase accounting expenses, pre-tax 1
0.37 0.33 0.69 0.25 0.24 0.49 0.24 0.25 0.98 
Purchase accounting expenses, tax impact 2
(0.09)(0.08)(0.16)(0.06)(0.06)(0.12)(0.06)(0.06)(0.24)
Restructuring and other costs (benefits), pre-tax 3
0.07 0.05 0.13 0.03 0.07 0.10 (0.02)0.18 0.26 
Restructuring and other costs (benefits), tax impact 2
(0.02)(0.01)(0.03)(0.01)(0.02)(0.03)0.01 (0.03)(0.05)
Loss (gain) on dispositions, pre-tax 4
— — — — — — — (1.42)(1.42)
Loss (gain) on dispositions, tax-impact 2
— — — — — — — 0.37 0.37 
Tax Cuts and Jobs Act 5
— (0.16)(0.16)— — — — — — 
Adjusted diluted net earnings per share
$1.90 $2.14 $4.03 $1.81 $2.06 $3.87 $1.98 $1.78 $7.63 
1 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. Q1, Q2, and Q2 YTD 2022 include $12,487, $7,158, and $19,645 of amortization of inventory step-up, respectively, primarily related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment.
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 Restructuring and other costs (benefits) relate to actions taken for employee reductions, facility consolidations and site closures, product line exits, and other asset charges. Q1 and Q2 YTD 2022 include $5,457 of non-cash foreign currency translation losses reclassified to earnings included within restructuring and other costs of $2,117 related to write-off of assets due to an exit from certain Latin America countries for our Climate & Sustainability Technologies segment. Q4 and FY 2021 for our Climate & Sustainability Technologies segment include a $12,073 other than temporary impairment charge related to an equity method investment and a $6,072 write-off of assets incurred in connection with an exit from certain Latin America countries. Q3 and FY 2021 include a $9,078 payment received for previously incurred restructuring costs related to a product line exit in our Engineered Products segment.
4 Q1 2022 represents working capital adjustments related to the disposition of UB and the RWB equity method investment in Q4 2021. Q4 and FY2021 represent a $181,615 gain on disposition of UB in our Climate & Sustainability Technologies segment and a $24,723 gain on disposition of our RWB equity method investment in our Engineered Products segment.
5 Q2 and Q2 YTD 2022 represent a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act.
* Per share data and totals may be impacted by rounding.
IS - 4

DOVER CORPORATION
QUARTERLY ADJUSTED SEGMENT EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
ADJUSTED SEGMENT EBITDA
Engineered Products:
Segment earnings$71,130 $81,671 $152,801 $76,684 $71,255 $147,939 $67,376 $62,537 $277,852 
Other depreciation and amortization 1
7,274 6,799 14,073 6,708 5,814 12,522 7,132 7,382 27,036 
Adjusted segment EBITDA 2
78,404 88,470 166,874 83,392 77,069 160,461 74,508 69,919 304,888 
Adjusted segment EBITDA margin 2
16.1 %17.2 %16.7 %19.5 %17.4 %18.4 %16.6 %15.1 %17.1 %
Clean Energy & Fueling:
Segment earnings 3
$72,962 $99,034 $171,996 $79,572 $93,430 $173,002 $80,101 $74,083 $327,186 
Other depreciation and amortization 1
8,466 6,533 14,999 6,489 6,571 13,060 6,411 6,371 25,842 
Adjusted segment EBITDA 2
81,428 105,567 186,995 86,061 100,001 186,062 86,512 80,454 353,028 
Adjusted segment EBITDA margin 2
17.8 %21.4 %19.6 %22.1 %22.9 %22.5 %21.1 %19.6 %21.4 %
Imaging & Identification:
Segment earnings$58,598 $61,392 $119,990 $63,618 $66,565 $130,183 $70,635 $66,114 $266,932 
Other depreciation and amortization 1
3,497 3,496 6,993 3,274 3,544 6,818 3,896 3,475 14,189 
Adjusted segment EBITDA 2
62,095 64,888 126,983 66,892 70,109 137,001 74,531 69,589 281,121 
Adjusted segment EBITDA margin 2
22.8 %23.5 %23.2 %23.5 %23.8 %23.7 %25.5 %23.8 %24.2 %
Pumps & Process Solutions:
Segment earnings$146,617 $138,048 $284,665 $128,895 $146,759 $275,654 $150,275 $149,664 $575,593 
Other depreciation and amortization 1
9,922 9,787 19,709 9,670 9,638 19,308 9,832 10,132 39,272 
Adjusted segment EBITDA 2
156,539 147,835 304,374 138,565 156,397 294,962 160,107 159,796 614,865 
Adjusted segment EBITDA margin 2
36.0 %33.5 %34.7 %35.1 %36.5 %35.8 %36.5 %35.7 %36.0 %
Climate & Sustainability Technologies:
Segment earnings$53,609 $64,181 $117,790 $43,475 $56,905 $100,380 $49,734 $35,403 $185,517 
Other depreciation and amortization 1
6,495 6,443 12,938 6,349 6,682 13,031 7,019 6,937 26,987 
Adjusted segment EBITDA 2
60,104 70,624 130,728 49,824 63,587 113,411 56,753 42,340 212,504 
Adjusted segment EBITDA margin 2
15.1 %16.3 %15.7 %13.4 %14.8 %14.1 %13.2 %11.3 %13.2 %
Total Segments:
Segment earnings 2, 3, 4
$402,916 $444,326 $847,242 $392,244 $434,914 $827,158 $418,121 $387,801 $1,633,080 
Other depreciation and amortization 1
35,654 33,058 68,712 32,490 32,249 64,739 34,290 34,297 133,326 
Adjusted segment EBITDA 2
438,570 477,384 915,954 424,734 467,163 891,897 452,411 422,098 1,766,406 
Adjusted segment EBITDA margin 2
21.4 %22.1 %21.8 %22.7 %23.0 %22.9 %22.4 %21.2 %22.3 %
1 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs.
2 Refer to Non-GAAP Disclosures section for definition.
3 Q1, Q2, and Q2 YTD 2022 exclude $12,097, $6,898, and $18,995 of amortization of inventory step-up, respectively, related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment.
4 Refer to Quarterly Segment Information section for reconciliation of total segment earnings to net earnings.
IS - 5

DOVER CORPORATION
QUARTERLY ADJUSTED SEGMENT EBITDA TO NET EARNINGS RECONCILIATION (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
Net earnings:
Adjusted segment EBITDA1:
Engineered Products$78,404 $88,470 $166,874 $83,392 $77,069 $160,461 $74,508 $69,919 $304,888 
Clean Energy & Fueling81,428 105,567 186,995 86,061 100,001 186,062 86,512 80,454 353,028 
Imaging & Identification62,095 64,888 126,983 66,892 70,109 137,001 74,531 69,589 281,121 
Pumps & Process Solutions156,539 147,835 304,374 138,565 156,397 294,962 160,107 159,796 614,865 
Climate & Sustainability Technologies60,104 70,624 130,728 49,824 63,587 113,411 56,753 42,340 212,504 
Total adjusted segment EBITDA 1
438,570 477,384 915,954 424,734 467,163 891,897 452,411 422,098 1,766,406 
Less: Other depreciation and amortization 2
35,654 33,058 68,712 32,490 32,249 64,739 34,290 34,297 133,326 
Total segment earnings 1
402,916 444,326 847,242 392,244 434,914 827,158 418,121 387,801 1,633,080 
Purchase accounting expenses 3
53,286 47,019 100,305 35,516 35,162 70,678 35,587 35,715 141,980 
Restructuring and other costs (benefits) 4
10,552 7,944 18,496 4,162 10,779 14,941 (3,201)26,696 38,436 
Loss (gain) on dispositions 5
194 — 194 — — — — (206,338)(206,338)
Corporate expense / other 6
37,404 27,967 65,371 37,173 39,910 77,083 33,249 45,966 156,298 
Interest expense26,552 26,989 53,541 26,823 26,661 53,484 26,433 26,402 106,319 
Interest income(775)(949)(1,724)(680)(942)(1,622)(1,466)(1,353)(4,441)
Earnings before provision for income taxes275,703 335,356 611,059 289,250 323,344 612,594 327,519 460,713 1,400,826 
Provision for income taxes49,550 45,738 95,288 56,481 58,836 115,317 63,763 97,928 277,008 
Net earnings$226,153 $289,618 $515,771 $232,769 $264,508 $497,277 $263,756 $362,785 $1,123,818 
1 Refer to Non-GAAP Disclosures section for definition.
2 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs.
3 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.
4 Restructuring and other costs (benefits) relate to actions taken for employee reductions, facility consolidations and site closures, product line exits, and other asset charges.
5 Loss (gain) on dispositions include working capital adjustments related to dispositions.
6 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters.
IS - 6

DOVER CORPORATION
REVENUE GROWTH FACTORS AND ADJUSTED EPS GUIDANCE RECONCILIATIONS (NON-GAAP)
(unaudited)(in thousands, except per share data*)

Non-GAAP Reconciliations

Revenue Growth Factors
2022
Q2Q2 YTD
Organic
Engineered Products18.6 %16.6 %
Clean Energy & Fueling
(1.1)%(0.5)%
Imaging & Identification(0.9)%(1.0)%
Pumps & Process Solutions6.8 %9.6 %
Climate & Sustainability Technologies
11.4 %14.2 %
Total Organic7.5 %8.4 %
Acquisitions4.1 %4.3 %
Dispositions(1.7)%(1.7)%
Currency translation(3.6)%(3.0)%
Total*6.3 %8.0 %
* Totals may be impacted by rounding.
2022
Q2Q2 YTD
Organic
United States12.5 %10.7 %
Other Americas(17.7)%(5.5)%
Europe11.8 %9.0 %
Asia 0.4 %8.6 %
Other(14.4)%(2.4)%
Total Organic7.5 %8.4 %
Acquisitions4.1 %4.3 %
Dispositions(1.7)%(1.7)%
Currency translation(3.6)%(3.0)%
Total*6.3 %8.0 %
* Totals may be impacted by rounding.

Adjusted EPS Guidance Reconciliation
Range
2022 Guidance for Earnings per Share (GAAP)$7.44 $7.64 
Purchase accounting expenses, net1.01
Restructuring and other costs, net0.16
Tax Cuts and Jobs Act(0.16)
2022 Guidance for Adjusted Earnings per Share (Non-GAAP)$8.45 $8.65 
* Per share data and totals may be impacted by rounding.




















IS - 7

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

Quarterly Cash Flow
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
Net Cash Flows Provided By (Used In):
Operating activities$23,683 $178,773 $202,456 $177,184 $260,073 $437,257 $351,329 $327,279 $1,115,865 
Investing activities(46,963)(68,890)(115,853)(29,572)(121,631)(151,203)(135,439)(706,111)(992,753)
Financing activities(75,204)120,469 45,265 (124,239)(75,949)(200,188)(74,610)24,918 (249,880)

Quarterly Free Cash Flow (Non-GAAP)
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
Cash flow from operating activities$23,683 $178,773 $202,456 $177,184 $260,073 $437,257 $351,329 $327,279 $1,115,865 
Less: Capital expenditures(50,381)(50,196)(100,577)(31,260)(41,971)(73,231)(47,926)(50,308)(171,465)
Free cash flow$(26,698)$128,577 $101,879 $145,924 $218,102 $364,026 $303,403 $276,971 $944,400 
Cash flow from operating activities as a percentage of revenue1.2 %8.3 %4.8 %9.5 %12.8 %11.2 %17.4 %16.5 %14.1 %
Cash flow from operating activities as a percentage of adjusted net earnings8.6 %57.8 %34.6 %67.4 %86.9 %77.8 %121.8 %126.5 %100.6 %
Free cash flow as a percentage of revenue-1.3 %6.0 %2.4 %7.8 %10.7 %9.3 %15.0 %13.9 %11.9 %
Free cash flow as a percentage of adjusted net earnings-9.7 %41.6 %17.4 %55.5 %72.9 %64.8 %105.2 %107.1 %85.2 %

IS - 8

DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
20222021
Q1Q2Q2 YTDQ1Q2Q2 YTDQ3Q4FY 2021
BOOKINGS
Engineered Products$541,035 $452,668 $993,703 $528,310 $497,200 $1,025,510 $502,767 $585,452 $2,113,729 
Clean Energy & Fueling
501,491 487,861 989,352 422,668 453,146 875,814 467,821 398,844 1,742,479 
Imaging & Identification307,104 292,136 599,240 293,614 299,608 593,222 293,782 303,400 1,190,404 
Pumps & Process Solutions459,790 471,693 931,483 551,365 521,010 1,072,375 490,581 460,105 2,023,061 
Climate & Sustainability Technologies
444,852 403,574 848,426 537,326 606,545 1,143,871 540,280 632,849 2,317,000 
Intersegment eliminations(2,295)(1,207)(3,502)(863)(498)(1,361)(407)(290)(2,058)
Total consolidated bookings$2,251,977 $2,106,725 $4,358,702 $2,332,420 $2,377,011 $4,709,431 $2,294,824 $2,380,360 $9,384,615 
BACKLOG
Engineered Products$830,135 $759,589 $562,557 $613,517 $662,834 $785,085 
Clean Energy & Fueling
426,342 411,350 238,822 256,497 312,176 383,572 
Imaging & Identification243,411 255,255 198,556 206,125 204,766 212,098 
Pumps & Process Solutions704,935 715,646 539,097 634,477 682,415 688,931 
Climate & Sustainability Technologies
1,218,155 1,186,180 677,309 854,188 964,233 1,174,479 
Intersegment eliminations(1,756)(1,839)(544)(262)(252)(225)
Total consolidated backlog$3,421,222 $3,326,181 $2,215,797 $2,564,542 $2,826,172 $3,243,940 
Bookings Growth Factors
2022
Q2Q2 YTD
Organic
Engineered Products(8.3)%(2.2)%
Clean Energy & Fueling
(4.6)%(3.7)%
Imaging & Identification2.6 %5.1 %
Pumps & Process Solutions(6.5)%(10.4)%
Climate & Sustainability Technologies
(24.1)%(17.2)%
Total Organic(9.9)%(7.1)%
Acquisitions3.2 %3.8 %
Dispositions(1.8)%(1.6)%
Currency translation(2.9)%(2.5)%
Total*(11.4)%(7.4)%
* Totals may be impacted by rounding.














IS - 9

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, adjusted segment EBITDA, adjusted segment EBITDA margin, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of adjusted 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 purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, and gain/loss on dispositions. Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. We exclude after-tax purchase accounting expenses because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. While we have a history of acquisition activity, our acquisitions do not happen in a predictive cycle. Exclusion of purchase accounting expenses facilitates more consistent comparisons of operating results over time. We believe it is important to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. 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 or adjusted earnings per share represents diluted EPS adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, and gain/loss on dispositions.

Total segment earnings is defined as the sum of earnings before purchase accounting expenses, restructuring and other costs/benefits, gain/loss on dispositions, corporate expenses/other, interest expense, interest income and provision for income taxes for all segments. Total segment earnings margin is defined as total segment earnings divided by revenue.

Adjusted segment EBITDA is defined as segment earnings plus other depreciation and amortization expense, which relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs. Adjusted segment EBITDA margin is defined as adjusted segment EBITDA divided by revenue.

Management believes the non-GAAP measures above are useful to investors to better understand the Company’s ongoing profitability as they 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 adjusted net earnings equals free cash flow divided by adjusted net earnings. Management believes that free cash flow and free cash flow ratios are important measures of 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. We do not provide a reconciliation of forward-looking organic revenue to the most directly comparable GAAP financial measure because we are not able to provide a meaningful or accurate compilation of reconciling items. This is due to the inherent difficulty in accurately forecasting the timing and amounts of the items that would be excluded from the most directly comparable GAAP financial measure or are out of our control. For the same reasons, we are unable to address the probable significance of unavailable information which may be material.







IS - 10

Performance Measures Definitions

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

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

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

We use the above operational metrics in monitoring the performance of the business. We believe the operational metrics are useful to investors and other users of our financial information in assessing the performance of our segments.
IS - 11