Dover Reports Second Quarter 2021 Results; Raises Full Year Guidance

Rhea-AI Summary

Dover reported strong financial results for Q2 2021, with revenues of $2.032 billion, a 36% increase from Q2 2020. Net earnings rose by 112% to $265 million, resulting in a diluted EPS of $1.82. For the first half of 2021, revenues reached $3.9 billion, up 24%, and net earnings increased 65% to $497 million. The company raised its full-year revenue growth guidance to 15%-17% and EPS guidance to $6.45-$6.55. CEO Richard J. Tobin noted strong demand across all segments and a robust backlog, expecting continued operational execution and growth.

Positive

• Revenue increased by 36% year-over-year to $2.032 billion.
• Net earnings rose by 112% to $265 million.
• Diluted EPS increased by 112% to $1.82.
• Six-month revenue grew by 24% to $3.9 billion.
• Raised full-year revenue growth guidance to 15%-17%.
• Raised EPS guidance to $6.45-$6.55.

Negative

• Logistics bottlenecks and cost inflation may impact margins.

DOWNERS GROVE, Ill., July 20, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2021.

		Three Months Ended June 30,											Six Months Ended June 30,
($ in millions, except per share data)		2021				2020				% Change			2021				2020				% Change
U.S. GAAP
Revenue		$	2,032			$	1,499			36	%		$	3,900			$	3,155			24	%
Net earnings 1		265				125				112	%		497				301				65	%
Diluted EPS		1.82				0.86				112	%		3.43				2.07				66	%
Non-GAAP
Organic revenue change										30	%										19	%
Adjusted net earnings 2		299				164				82	%		562				368				53	%
Adjusted diluted EPS		2.06				1.13				82	%		3.87				2.53				53	%

1 Q2 2021 and 2020 net earnings include rightsizing and other costs of $8.2 million and $13.4 million, respectively. Q2 2020 also includes a $0.6 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 net earnings include rightsizing and other costs of $11.3 million and $19.6 million, respectively. Year-to-date 2020 also includes a $4.4 million non-cash gain on the sale of AMS Chino.

2 Q2 2021 and 2020 adjusted net earnings exclude after tax acquisition-related amortization costs of $26.6 million and $25.7 million, respectively, and rightsizing and other costs of $8.2 million and $13.4 million, respectively. Q2 2020 also excludes a $0.6 million expense related to the sale of AMS Chino. Year-to-date 2021 and 2020 adjusted net earnings exclude acquisition-related amortization costs of $53.4 million and $51.3 million, respectively, and rightsizing and other costs of $11.3 million and $19.6 million, respectively. Year-to-date 2020 also excludes a $4.4 million non-cash gain on the sale of AMS Chino.

For the quarter ended June 30, 2021, Dover generated revenue of $2.0 billion, an increase of 36% (+30% organic) compared to the second quarter of the prior year. GAAP net earnings of $265 million increased 112%, and GAAP diluted EPS of $1.82 was also up 112%. On an adjusted basis, net earnings of $299 million increased 82% and adjusted diluted EPS of $2.06 was also up 82% versus the comparable quarter of the prior year.

For the six months ended June 30, 2021, Dover generated revenue of $3.9 billion, an increase of 24% (+19% organic) compared to the first six months of the prior year. GAAP net earnings of $497 million increased by 65%, and GAAP diluted EPS of $3.43 was up 66% year-over-year. On an adjusted basis, net earnings of $562 million increased 53%, and adjusted diluted EPS of $3.87 was also up 53% 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, "We performed well again this quarter as new order activity remained strong and margin improvement continued its solid trajectory across all segments. Our portfolio is performing above pre-pandemic levels in terms of revenue and margin, and our record-high backlog provides visibility into the second half of the year, and in some of our businesses into 2022.

"During the quarter we saw top-line growth across all of our segments, with the largest contributions to the year-over-year increase from pumps and process solutions, fueling solutions, food retail, marking & coding and automotive aftermarket businesses. We are encouraged by the demand growth in compressor components, foodservice, and textile printing, and we expect continued recovery in these markets over the balance of the year.

"Our teams have done a commendable job in the first half navigating logistics bottlenecks, component and labor shortages, and cost inflation to meet end market demand and drive solid margin conversion. Our forecast for the balance of the year reflects the expectation that logistics constraints and input cost inflation will neither deteriorate nor improve materially. Despite this dynamic, we believe that our localized manufacturing and sourcing strategy and diverse business mix give us distinct advantages to win in the current demand environment.

"We also have continued to invest organically in capacity expansions in our high-growth businesses and productivity improvements across our portfolio. Our center-led initiatives are continuing to drive cost synergies across our portfolio companies allowing them to concentrate on winning in the marketplace and driving growth. Acquisition activity remains robust and we recently acquired three attractive bolt-on businesses in single-use pumps, brand protection software and IoT dispensing solutions.

"As we look toward the second half of the year, our robust backlog levels and sustained strong bookings pace give us confidence in our durable top-line trajectory. We also remain confident in our ability to execute operationally to drive portfolio profitability. As a result, we are raising our full year revenue and EPS guidance."

FULL YEAR 2021 GUIDANCE UPDATE:

Guidance for full year 2021 revenue growth was raised to 15% to 17%. EPS guidance for full year 2021 was raised to $6.45 to $6.55 ($7.30 to $7.40 on an adjusted basis).

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its second quarter and year-to-date 2021 results as well as updated 2021 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, July 20, 2021. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's 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 over $7 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 65 years, our team of over 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at dovercorporation.com.

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, the impacts of COVID-19, or other future pandemics, on the global economy and on our customers, suppliers, employees, business and cash flows, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

INVESTOR SUPPLEMENT - SECOND QUARTER 2021
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
	2021				2020				2021				2020
Revenue	$	2,031,676			$	1,499,175			$	3,899,577			$	3,155,114
Cost of goods and services	1,259,504				947,577				2,405,857				1,991,273
Gross profit	772,172				551,598				1,493,720				1,163,841
Selling, general, and administrative expenses	428,042				366,740				837,040				753,681
Operating earnings	344,130				184,858				656,680				410,160
Interest expense	26,661				28,711				53,484				55,979
Interest income	(942)				(728)				(1,622)				(1,911)
Gain on sale of a business	—				781				—				(5,770)
Other income, net	(4,933)				(735)				(7,776)				(8,467)
Earnings before provision for income taxes	323,344				156,829				612,594				370,329
Provision for income taxes	58,836				32,063				115,317				69,284
Net earnings	$	264,508			$	124,766			$	497,277			$	301,045
Net earnings per share:
Basic	$	1.84			$	0.87			$	3.46			$	2.09
Diluted	$	1.82			$	0.86			$	3.43			$	2.07
Weighted average shares outstanding:
Basic	143,941				143,955				143,854				144,107
Diluted	145,118				144,995				145,040				145,359
Dividends paid per common share	$	0.495			$	0.49			$	0.99			$	0.98
* Per share data may be impacted by rounding.

 

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
REVENUE
Engineered Products	$	428,127		$	442,091		$	870,218			$	408,160		$	342,380		$	750,540		$	386,562		$	394,175		$	1,531,277
Fueling Solutions	389,678			437,042			826,720				359,982			326,495			686,477			380,511			409,294			1,476,282
Imaging & Identification	284,328			294,076			578,404				256,765			227,977			484,742			265,690			287,746			1,038,178
Pumps & Process Solutions	394,377			428,701			823,078				319,536			309,095			628,631			347,875			347,497			1,324,003
Refrigeration & Food Equipment	372,077			430,506			802,583				311,913			293,527			605,440			368,395			342,255			1,316,090
Intra-segment eliminations	(686)			(740)			(1,426)				(417)			(299)			(716)			(777)			(577)			(2,070)
Total consolidated revenue	$	1,867,901		$	2,031,676		$	3,899,577			$	1,655,939		$	1,499,175		$	3,155,114		$	1,748,256		$	1,780,390		$	6,683,760
NET EARNINGS
Segment Earnings:
Engineered Products	$	68,779		$	62,720		$	131,499			$	69,094		$	47,702		$	116,796		$	64,890		$	56,481		$	238,167
Fueling Solutions	66,480			78,755			145,235				53,498			47,214			100,712			66,601			69,661			236,974
Imaging & Identification	56,992			60,747			117,739				51,482			38,046			89,528			51,928			52,017			193,473
Pumps & Process Solutions	123,645			138,632			262,277				66,079			67,702			133,781			89,786			81,709			305,276
Refrigeration & Food Equipment 1	38,117			48,971			87,088				23,529			11,459			34,988			40,159			27,725			102,872
Total segment earnings (EBIT)	354,013			389,825			743,838				263,682			212,123			475,805			313,364			287,593			1,076,762
Corporate expense / other	38,620			40,762			79,382				24,097			27,311			51,408			35,603			39,651			126,662
Interest expense	26,823			26,661			53,484				27,268			28,711			55,979			27,724			28,234			111,937
Interest income	(680)			(942)			(1,622)				(1,183)			(728)			(1,911)			(960)			(700)			(3,571)
Earnings before provision for income taxes	289,250			323,344			612,594				213,500			156,829			370,329			250,997			220,408			841,734
Provision for income taxes	56,481			58,836			115,317				37,221			32,063			69,284			50,697			38,302			158,283
Net earnings	$	232,769		$	264,508		$	497,277			$	176,279		$	124,766		$	301,045		$	200,300		$	182,106		$	683,451
SEGMENT MARGIN
Engineered Products	16.1 %			14.2 %			15.1 %				16.9 %			13.9 %			15.6 %			16.8 %			14.3 %			15.6 %
Fueling Solutions	17.1 %			18.0 %			17.6 %				14.9 %			14.5 %			14.7 %			17.5 %			17.0 %			16.1 %
Imaging & Identification	20.0 %			20.7 %			20.4 %				20.1 %			16.7 %			18.5 %			19.5 %			18.1 %			18.6 %
Pumps & Process Solutions	31.4 %			32.3 %			31.9 %				20.7 %			21.9 %			21.3 %			25.8 %			23.5 %			23.1 %
Refrigeration & Food Equipment 1	10.2 %			11.4 %			10.9 %				7.5 %			3.9 %			5.8 %			10.9 %			8.1 %			7.8 %
Total segment operating margin	19.0 %			19.2 %			19.1 %				15.9 %			14.1 %			15.1 %			17.9 %			16.2 %			16.1 %
DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products	$	14,047		$	11,981		$	26,028			$	10,122		$	9,722		$	19,844		$	10,717		$	12,042		$	42,603
Fueling Solutions	19,269			19,475			38,744				18,339			17,968			36,307			18,014			18,482			72,803
Imaging & Identification	9,593			9,294			18,887				8,769			9,224			17,993			9,809			10,576			38,378
Pumps & Process Solutions	16,926			16,866			33,792				18,336			17,572			35,908			17,206			19,077			72,191
Refrigeration & Food Equipment	12,096			12,077			24,173				11,548			11,421			22,969			12,081			11,491			46,541
Corporate	1,875			1,826			3,701				1,638			1,696			3,334			1,662			1,539			6,535
Total depreciation and amortization expense	$	73,806		$	71,519		$	145,325			$	68,752		$	67,603		$	136,355		$	69,489		$	73,207		$	279,051

1 Q1, Q2, Q3, and FY 2020 include a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain, respectively, on the sale of the Chino, California branch of The AMS Group ("AMS Chino"). Q2 and FY 2020 also include a $3,640 write-off of assets.

 

 

DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)
Earnings Per Share
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
Net earnings per share:
Basic	$	1.62		$	1.84		$	3.46			$	1.22		$	0.87		$	2.09		$	1.39		$	1.27		$	4.74
Diluted	$	1.61		$	1.82		$	3.43			$	1.21		$	0.86		$	2.07		$	1.38		$	1.25		$	4.70
Net earnings and weighted average shares used in calculated earnings per share amounts are as follows:
Net earnings	$	232,769		$	264,508		$	497,277			$	176,279		$	124,766		$	301,045		$	200,300		$	182,106		$	683,451
Weighted average shares outstanding:
Basic	143,765			143,941			143,854				144,259			143,955			144,107			144,032			143,954			144,050
Diluted	144,938			145,118			145,040				145,782			144,995			145,359			145,289			145,355			145,393

* Per share data may be impacted by rounding.

 

 

DOVER CORPORATION
QUARTERLY ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
(unaudited)(in thousands, except per share data*)
Non-GAAP Reconciliations
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
Adjusted net earnings:
Net earnings	$	232,769		$	264,508		$	497,277			$	176,279		$	124,766		$	301,045		$	200,300		$	182,106		$	683,451
Acquisition-related amortization, pre-tax 1	35,516			35,162			70,678				34,062			34,101			68,163			35,325			35,027			138,515
Acquisition-related amortization, tax impact 2	(8,720)			(8,571)			(17,291)				(8,411)			(8,451)			(16,862)			(8,810)			(8,695)			(34,367)
Rightsizing and other costs, pre-tax 3	4,162			10,779			14,941				7,859			16,840			24,699			5,848			20,925			51,472
Rightsizing and other costs, tax impact 2	(1,031)			(2,597)			(3,628)				(1,605)			(3,452)			(5,057)			(1,343)			(4,402)			(10,802)
(Gain) loss on disposition, pre-tax 4	—			—			—				(6,551)			781			(5,770)			557			—			(5,213)
(Gain) loss on disposition, tax-impact 2	—			—			—				1,592			(190)			1,402			(135)			—			1,267
Adjusted net earnings	$	262,696		$	299,281		$	561,977			$	203,225		$	164,395		$	367,620		$	231,742		$	224,961		$	824,323
Adjusted diluted net earnings per share:
Diluted net earnings per share	$	1.61		$	1.82		$	3.43			$	1.21		$	0.86		$	2.07		$	1.38		$	1.25		$	4.70
Acquisition-related amortization, pre-tax 1	0.25			0.24			0.49				0.23			0.24			0.47			0.24			0.24			0.95
Acquisition-related amortization, tax impact 2	(0.06)			(0.06)			(0.12)				(0.06)			(0.06)			(0.12)			(0.06)			(0.06)			(0.24)
Rightsizing and other costs, pre-tax 3	0.03			0.07			0.10				0.05			0.12			0.17			0.04			0.14			0.35
Rightsizing and other costs, tax impact 2	(0.01)			(0.02)			(0.03)				(0.01)			(0.02)			(0.03)			(0.01)			(0.03)			(0.07)
(Gain) loss on disposition, pre-tax 4	—			—			—				(0.04)			—			(0.04)			—			—			(0.03)
(Gain) loss on disposition, tax-impact 2	—			—			—				0.01			—			0.01			—			—			0.01
Adjusted diluted net earnings per share	$	1.81		$	2.06		$	3.87			$	1.39		$	1.13		$	2.53		$	1.60		$	1.55		$	5.67

1 Includes amortization on acquisition-related intangible assets and inventory step-up.

2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.

3 Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other asset charges.

4 Represents a (gain) loss on the disposition of AMS Chino within the Refrigeration & Food Equipment segment, including working capital adjustments.

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

 

 

DOVER CORPORATION
QUARTERLY SEGMENT ADJUSTED EBIT AND ADJUSTED EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)	$	68,779		$	62,720		$	131,499			$	69,094		$	47,702		$	116,796		$	64,890		$	56,481		$	238,167
Rightsizing and other costs	4,019			4,654			8,673				361			4,169			4,530			2,375			4,625			11,530
Adjusted EBIT - Segment	72,798			67,374			140,172				69,455			51,871			121,326			67,265			61,106			249,697
Adjusted EBIT %	17.0 %			15.2 %			16.1 %				17.0 %			15.2 %			16.2 %			17.4 %			15.5 %			16.3 %
Adjusted D&A 1	10,594			9,695			20,289				10,122			9,722			19,844			10,651			10,193			40,688
Adjusted EBITDA - Segment	$	83,392		$	77,069		$	160,461			$	79,577		$	61,593		$	141,170		$	77,916		$	71,299		$	290,385
Adjusted EBITDA %	19.5 %			17.4 %			18.4 %				19.5 %			18.0 %			18.8 %			20.2 %			18.1 %			19.0 %
Fueling Solutions:
Segment earnings (EBIT)	$	66,480		$	78,755		$	145,235			$	53,498		$	47,214		$	100,712		$	66,601		$	69,661		$	236,974
Rightsizing and other costs	58			1,657			1,715				1,493			868			2,361			1,615			2,727			6,703
Adjusted EBIT - Segment	66,538			80,412			146,950				54,991			48,082			103,073			68,216			72,388			243,677
Adjusted EBIT %	17.1 %			18.4 %			17.8 %				15.3 %			14.7 %			15.0 %			17.9 %			17.7 %			16.5 %
Adjusted D&A 1	19,180			19,475			38,655				18,339			17,783			36,122			18,014			18,225			72,361
Adjusted EBITDA - Segment	$	85,718		$	99,887		$	185,605			$	73,330		$	65,865		$	139,195		$	86,230		$	90,613		$	316,038
Adjusted EBITDA %	22.0 %			22.9 %			22.5 %				20.4 %			20.2 %			20.3 %			22.7 %			22.1 %			21.4 %
Imaging & Identification:
Segment earnings (EBIT)	$	56,992		$	60,747		$	117,739			$	51,482		$	38,046		$	89,528		$	51,928		$	52,017		$	193,473
Rightsizing and other costs	682			178			860				264			(527)			(263)			99			6,191			6,027
Adjusted EBIT - Segment	57,674			60,925			118,599				51,746			37,519			89,265			52,027			58,208			199,500
Adjusted EBIT %	20.3 %			20.7 %			20.5 %				20.2 %			16.5 %			18.4 %			19.6 %			20.2 %			19.2 %
Adjusted D&A 1	9,218			9,184			18,402				8,769			9,224			17,993			9,809			10,201			38,003
Adjusted EBITDA - Segment	$	66,892		$	70,109		$	137,001			$	60,515		$	46,743		$	107,258		$	61,836		$	68,409		$	237,503
Adjusted EBITDA %	23.5 %			23.8 %			23.7 %				23.6 %			20.5 %			22.1 %			23.3 %			23.8 %			22.9 %
Pumps & Process Solutions:
Segment earnings (EBIT)	$	123,645		$	138,632		$	262,277			$	66,079		$	67,702		$	133,781		$	89,786		$	81,709		$	305,276
Rightsizing and other (benefits) costs	(2,006)			899			(1,107)				3,846			4,691			8,537			1,771			3,128			13,436
Adjusted EBIT - Segment	121,639			139,531			261,170				69,925			72,393			142,318			91,557			84,837			318,712
Adjusted EBIT %	30.8 %			32.5 %			31.7 %				21.9 %			23.4 %			22.6 %			26.3 %			24.4 %			24.1 %
Adjusted D&A 1	16,926			16,866			33,792				16,230			16,816			33,046			17,206			17,565			67,817
Adjusted EBITDA - Segment	$	138,565		$	156,397		$	294,962			$	86,155		$	89,209		$	175,364		$	108,763		$	102,402		$	386,529
Adjusted EBITDA %	35.1 %			36.5 %			35.8 %				27.0 %			28.9 %			27.9 %			31.3 %			29.5 %			29.2 %
Refrigeration & Food Equipment:
Segment earnings (EBIT)	$	38,117		$	48,971		$	87,088			$	23,529		$	11,459		$	34,988		$	40,159		$	27,725		$	102,872
Rightsizing and other (benefits) costs	(38)			2,539			2,501				704			6,016			6,720			(971)			726			6,475
(Gain) loss on disposition 2	—			—			—				(6,551)			781			(5,770)			557			—			(5,213)
Adjusted EBIT - Segment	38,079			51,510			89,589				17,682			18,256			35,938			39,745			28,451			104,134
Adjusted EBIT %	10.2 %			12.0 %			11.2 %				5.7 %			6.2 %			5.9 %			10.8 %			8.3 %			7.9 %
Adjusted D&A 1	11,745			12,077			23,822				11,548			11,421			22,969			12,081			11,491			46,541
Adjusted EBITDA - Segment	$	49,824		$	63,587		$	113,411			$	29,230		$	29,677		$	58,907		$	51,826		$	39,942		$	150,675
Adjusted EBITDA %	13.4 %			14.8 %			14.1 %				9.4 %			10.1 %			9.7 %			14.1 %			11.7 %			11.4 %
Total Segments:
Segment earnings (EBIT) 3	$	354,013		$	389,825		$	743,838			$	263,682		$	212,123		$	475,805		$	313,364		$	287,593		$	1,076,762
Rightsizing and other costs	2,715			9,927			12,642				6,668			15,217			21,885			4,889			17,397			44,171
(Gain) loss on disposition 2	—			—			—				(6,551)			781			(5,770)			557			—			(5,213)
Adjusted EBIT - Segment 4	356,728			399,752			756,480				263,799			228,121			491,920			318,810			304,990			1,115,720
Adjusted EBIT % 4	19.1 %			19.7 %			19.4 %				15.9 %			15.2 %			15.6 %			18.2 %			17.1 %			16.7 %
Adjusted D&A 1	67,663			67,297			134,960				65,008			64,966			129,974			67,761			67,675			265,410
Adjusted EBITDA - Segment 4	$	424,391		$	467,049		$	891,440			$	328,807		$	293,087		$	621,894		$	386,571		$	372,665		$	1,381,130
Adjusted EBITDA % 4	22.7 %			23.0 %			22.9 %				19.9 %			19.5 %			19.7 %			22.1 %			20.9 %			20.7 %

1 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.

2 Q1, Q2, Q3, and FY 2020 includes a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain on the sale of a business for AMS Chino, respectively.

3 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.

4 Refer to Non-GAAP Disclosures section for definition.

 

DOVER CORPORATION
REVENUE GROWTH FACTORS (NON-GAAP)
(unaudited)(in thousands, except per share data*)
Non-GAAP Reconciliations
Revenue Growth Factors
	2021
	Q2			Q2 YTD
Organic
Engineered Products	25.4	%		12.9	%
Fueling Solutions	24.9	%		13.4	%
Imaging & Identification	20.2	%		11.4	%
Pumps & Process Solutions	33.6	%		25.8	%
Refrigeration & Food Equipment	43.5	%		30.5	%
Total Organic	29.7	%		18.7	%
Acquisitions	1.3	%		1.3	%
Dispositions	—	%		(0.2)	%
Currency translation	4.5	%		3.8	%
Total*	35.5	%		23.6	%

* Totals may be impacted by rounding.

 

	2021
	Q2
Organic
United States	25.0	%
Other Americas	49.6	%
Europe	29.8	%
Asia	37.6	%
Other	43.0	%
Total Organic	29.7	%
Acquisitions	1.3	%
Dispositions	—	%
Currency translation	4.5	%
Total*	35.5	%

* Totals may be impacted by rounding.

 

Adjusted EPS Guidance Reconciliation
	Range
2021 Guidance for Earnings per Share (GAAP)	$	6.45			$	6.55
Acquisition-related amortization, net				0.74
Rightsizing and other costs, net				0.11
2021 Guidance for Adjusted Earnings per Share (Non-GAAP)	$	7.30			$	7.40

 

DOVER CORPORATION
QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP)
(unaudited)(in thousands)
Quarterly Cash Flow
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
Net Cash Flows Provided By (Used In):
Operating activities	$	177,184		$	260,073		$	437,257			$	75,863		$	271,809		$	347,672		$	339,247		$	417,891		$	1,104,810
Investing activities	(29,572)			(121,631)			(151,203)				(230,511)			(67,763)			(298,274)			(64,724)			(118,381)			(481,379)
Financing activities	(124,239)			(75,949)			(200,188)				280,954			(67,458)			213,496			(496,832)			(222,954)			(506,290)

 

Quarterly Free Cash Flow (Non-GAAP)
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
Cash flow from operating activities1	$	177,184		$	260,073		$	437,257			$	75,863		$	271,809		$	347,672		$	339,247		$	417,891		$	1,104,810
Less: Capital expenditures	(31,260)			(41,971)			(73,231)				(40,172)			(38,999)			(79,171)			(44,393)			(42,128)			(165,692)
Free cash flow	$	145,924		$	218,102		$	364,026			$	35,691		$	232,810		$	268,501		$	294,854		$	375,763		$	939,118
Free cash flow as a percentage of revenue	7.8 %			10.7 %			9.3 %				2.2 %			15.5 %			8.5 %			16.9 %			21.1 %			14.1 %
Free cash flow as a percentage of net earnings	62.7 %			82.5 %			73.2 %				20.2 %			186.6 %			89.2 %			147.2 %			206.3 %			137.4 %

1 FY 2020 cash flow from operating activities reflects benefits from permitted deferrals of tax payments, most significantly in Q2, Q3, and Q4 and advanced payments on contracts, most significantly in Q3.

 

DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
	2021										2020
	Q1			Q2			Q2 YTD				Q1			Q2			Q2 YTD			Q3			Q4			FY 2020
BOOKINGS
Engineered Products	$	528,310		$	497,200		$	1,025,510			$	414,972		$	278,373		$	693,345		$	381,139		$	484,002		$	1,558,486
Fueling Solutions	422,668			453,146			875,814				373,070			311,498			684,568			383,902			403,400			1,471,870
Imaging & Identification	293,614			299,608			593,222				272,604			221,315			493,919			266,423			304,756			1,065,098
Pumps & Process Solutions	551,365			521,010			1,072,375				369,403			275,872			645,275			323,801			365,262			1,334,338
Refrigeration & Food Equipment	537,326			606,545			1,143,871				355,157			326,400			681,557			449,549			379,393			1,510,499
Intra-segment eliminations	(863)			(498)			(1,361)				(375)			(460)			(835)			(926)			(425)			(2,186)
Total consolidated bookings	$	2,332,420		$	2,377,011		$	4,709,431			$	1,784,831		$	1,412,998		$	3,197,829		$	1,803,888		$	1,936,388		$	6,938,105
BACKLOG
Engineered Products	$	562,557		$	613,517						$	453,867		$	378,874					$	373,458		$	463,701
Fueling Solutions	238,822			256,497							211,518			199,305						204,574			201,521
Imaging & Identification	198,556			206,125							170,119			168,904						171,158			192,785
Pumps & Process Solutions	539,097			634,477							397,969			379,090						361,631			390,238
Refrigeration & Food Equipment	677,309			854,188							356,133			390,368						472,140			510,498
Intra-segment eliminations	(544)			(262)							(159)			(367)						(269)			(192)
Total consolidated backlog	$	2,215,797		$	2,564,542						$	1,589,447		$	1,516,174					$	1,582,692		$	1,758,551

 

Bookings Growth Factors
	2021
	Q2			Q2 YTD
Organic
Engineered Products	73.5	%		44.4	%
Fueling Solutions	33.5	%		19.2	%
Imaging & Identification	26.6	%		12.0	%
Pumps & Process Solutions	81.7	%		59.7	%
Refrigeration & Food Equipment	83.1	%		66.2	%
Total Organic	61.2	%		41.7	%
Acquisitions	2.0	%		1.8	%
Dispositions	—	%		(0.2)	%
Currency translation	5.0	%		4.0	%
Total*	68.2	%		47.3	%

* 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, 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, 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

 

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SOURCE Dover

FAQ

What were Dover's Q2 2021 financial results?

Dover reported Q2 2021 revenues of $2.032 billion, a 36% increase year-over-year, with net earnings of $265 million, up 112%.

How much did Dover's diluted EPS increase in Q2 2021?

Dover's diluted EPS rose by 112% to $1.82 in Q2 2021.

What is Dover's updated revenue growth guidance for 2021?

Dover raised its full-year revenue growth guidance to 15%-17%.

What are Dover's EPS expectations for the full year 2021?

Dover's EPS guidance for 2021 has been raised to $6.45-$6.55.

What factors contributed to Dover's strong performance in Q2 2021?

Strong demand across all segments and a record-high backlog contributed to Dover's strong performance.