Dover Reports Fourth Quarter And Full Year 2020 Results; Provides 2021 Guidance

DOWNERS GROVE, Ill., Jan. 28, 2021 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the fourth quarter and full year ended December 31, 2020.

                                                                
          
            Three Months Ended                 
     
              Twelve Months Ended
                                                                         December 31,                                     December 31,




     
              ($ in millions, except per share data) 2020                  2019                 % Change           2020                         2019        % Change




     
              U.S. GAAP



     Revenue                                                $
       1,780                                     $
     1,776                                    
      %                $
     6,684          $
     7,136   (6)

                                                                                                                                                                                                       %



     Net earnings 1                                     182                               168                           8                                 683                     678      1
                                                                                                                       %                                                               %



     Diluted EPS                                       1.25                              1.15                           9                                4.70                    4.61      2
                                                                                                                       %                                                               %





     
              Non-GAAP



     Organic revenue change                                                                          (2)                                                               (7)

                                                                                                        %                                                                 %



     Adjusted net earnings (2)                          225                               226                               
            %                   824                     872    (5)

                                                                                                                                                                                       %



     Adjusted diluted EPS                              1.55                              1.54                           1                                5.67                    5.93    (4)
                                                                                                                       %
                                                                                                                                                                                       %

      
       
       1  Q4 2020 and 2019 net earnings include
                  rightsizing and other costs of $16.5
                  million and $14.2 million,
                  respectively. Q4 2019 also includes
                  a $18.4 million loss on
                  extinguishment of debt. Full year
                  2020 and 2019 net earnings include
                  rightsizing and other costs of $40.7
                  million and $25.4 million,
                  respectively. Full year 2020 also
                  includes a $3.9 million non-cash
                  gain on the sale of Chino, and full
                  year 2019 includes a $46.9 million
                  non-cash loss on assets held for
                  sale related to Finder as well as a
                  $18.4 million loss on extinguishment
                  of debt.





       
       (2) Q4 2020 and 2019 adjusted net
                  earnings exclude after tax
                  acquisition-related amortization
                  costs of $26.3 million and $25.1
                  million, respectively, and
                  rightsizing and other costs of $16.5
                  million and $14.2 million,
                  respectively. Q4 2019 also excludes
                  a $18.4 million loss on
                  extinguishment of debt. Full year
                  2020 and 2019 adjusted net earnings
                  exclude acquisition-related
                  amortization costs of $104.1 million
                  and $103.6 million, respectively,
                  and rightsizing and other costs of
                  $40.7 million and $25.4 million,
                  respectively. Full year 2020 also
                  excludes a $3.9 million non-cash
                  gain on the sale of Chino, and full
                  year 2019 excludes a $46.9 million
                  non-cash loss on assets held for
                  sale related to Finder as well as a
                  $18.4 million loss on extinguishment
                  of debt.

For the quarter ended December 31, 2020, Dover generated revenue of $1.8 billion, a slight increase compared to the fourth quarter of the prior year (-2% organic). GAAP net earnings of $182 million increased 8%, and GAAP diluted EPS of $1.25 was up 9%. On an adjusted basis, net earnings of $225 million declined slightly, and adjusted diluted EPS of $1.55 was up 1% versus the comparable quarter of the prior year.

For the full year ended December 31, 2020, Dover generated revenue of $6.7 billion, a decline of 6% compared to the prior year (-7% organic). GAAP net earnings of $683 million increased 1%, and GAAP diluted EPS of $4.70 increased 2% year-over-year. On an adjusted basis, net earnings of $824 million declined 5%, and adjusted diluted EPS of $5.67 was down 4% versus 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, "Dover delivered solid results in the fourth quarter despite lingering economic and operational effects of the pandemic. Our efficiency and productivity initiatives drove improvement in segment margins and cash flow metrics despite lower revenue for the full year. We advanced our operational priorities with notable progress in the center-led digital, operational, and shared back office and engineering capabilities. These initiatives have contributed to our recent results and will continue to drive improvement ahead. Our strong execution was complemented by disciplined capital allocation, including several strategic bolt-on acquisitions that enhance our businesses with new capabilities and attractive end-market exposures.

"Improving market conditions coupled with a robust demand backlog enable us to look into 2021 with constructive optimism. With continued progress in our ongoing productivity and cost initiatives, we believe we are well-positioned to deliver robust top-line growth, margin expansion and EPS accretion in 2021. We also enter the year with a healthy balance sheet that will continue to support organic and inorganic capital deployment to continue enhancing our portfolio."

"We are pleased to have 2020 in the rear view mirror for all the obvious reasons. On behalf of Dover Corporation's Board of Directors, I would like to thank our entire team for their extraordinary efforts in the past 12 months. We were given a unique opportunity to demonstrate the resilience of the Dover team and our business portfolio in 2020, and we can all be proud of the results we achieved together."

FULL YEAR 2021 GUIDANCE:

In 2021, Dover expects to generate GAAP EPS in the range of $5.42 to $5.62 (adjusted EPS of $6.25 to $6.45), based on full year revenue growth of 8% to 10% (5% to 6% on an organic basis). A full reconciliation between forecasted GAAP and forecasted adjusted measures is included as an exhibit herein.

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its fourth quarter and full year 2020 results as well as 2021 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, January 28, 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 fourth quarter and full year 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 - FOURTH QUARTER AND FULL YEAR 2020



                                                                                   
              
                DOVER CORPORATION

                                                                          
              
                CONSOLIDATED STATEMENTS OF EARNINGS

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

                                                                                                      ---



                                                                    
             
                Three Months Ended                              
              
                Years Ended
                                                                                                                                                        December 31,
                                                                        
             
                December 31,


                                                                     2020                                          2019                                  2020                     2019

                                                                                                                                                                                ---


     
                Revenue                                                 $
              1,780,390                                         $
              1,775,589                         $
           6,683,760  $
          7,136,397



     Cost of goods and services                                1,128,941                                       1,124,274                                         4,209,741                      4,515,459




     
                Gross profit                                   651,449                                         651,315                                         2,474,019                      2,620,938



     Selling, general, and administrative expenses               405,520                                         403,223                                         1,541,032                      1,599,098



     Loss on assets held for sale                                      -                                                                                                                        46,946




     
                Operating earnings                             245,929                                         248,092                                           932,987                        974,894



     Interest expense                                             28,234                                          30,846                                           111,937                        125,818



     Interest income                                               (700)                                        (1,428)                                          (3,571)                       (4,526)



     Gain on sale of a business                                        -                                                                                         (5,213)



     Loss on extinguishment of debt                                    -                                         23,543                                                                          23,543



     Other income, net                                           (2,013)                                        (1,891)                                         (11,900)                      (12,950)




     
                Earnings before provision for income taxes     220,408                                         197,022                                           841,734                        843,009



     Provision for income taxes                                   38,302                                          28,900                                           158,283                        165,091



     
                Net earnings                                              $
              182,106                                           $
              168,122                           $
           683,451    $
          677,918






     
                Net earnings per share:



     Basic                                                                     $
              1.27                                              $
              1.16                              $
           4.74       $
          4.67



     Diluted                                                                   $
              1.25                                              $
              1.15                              $
           4.70       $
          4.61



     
                Weighted average shares outstanding:



     Basic                                                       143,954                                       144,966                               144,050                  145,198



     Diluted                                                     145,355                                       146,790                               145,393                  146,992





     Dividends paid per common share                                           $
              0.50                                              $
              0.49                              $
           1.97       $
          1.94





     * Per share data may be impacted by rounding.

                                                                                                                                                                                                                                                                                                      
         
                DOVER CORPORATION

                                                                                                                                                                                                                                                                                                  
           
            QUARTERLY SEGMENT INFORMATION

                                                                                                                                                                                                                                                                                                        
         (unaudited)(in thousands)




                                                                                                                                                                                                                                                                                     2020                                                                                                                               2019

                                                                                                                                                                                                                                                                                                                                                                        ---

                                                                               Q1                           Q2                           Q3                           Q4                           FY 2020                                         Q1                           Q2             Q3                    Q4                          FY 2019

                                                                                                                                                                                                                                                                                                                                                     ---


       
                
                  REVENUE

    ---


       Engineered Products                                                                $
              408,160                                                                          $
              342,380                                                      $
              386,562                                                     $
             394,175                $
        
         1,531,277                    $
           418,851                      $
        429,928   $
        426,689   $
        422,089 $
        
        1,697,557



       Fueling Solutions                                                 359,982                                                    326,495                                                         380,511                                     409,294                                    1,476,282                                                           373,050                    390,586        411,769               444,772        1,620,177



       Imaging & Identification                                          256,765                                                    227,977                                                         265,690                                     287,746                                    1,038,178                                                           268,354                    266,588        275,109               274,420        1,084,471



       Pumps & Process Solutions                                         319,536                                                    309,095                                                         347,875                                     347,497                                    1,324,003                                                           330,219                    338,924        341,337               328,048        1,338,528


        Refrigeration & Food Equipment                                    311,913                                                    293,527                                                         368,395                                     342,255                                    1,316,090                                                           334,643                    385,474        370,335               306,165        1,396,617



       Intra-segment eliminations                                          (417)                                                     (299)                                                          (777)                                      (577)                                     (2,070)                                                            (360)                     (794)           106                    95            (953)




       Total consolidated revenue                                                       $
              1,655,939                                                                        $
              1,499,175                                                    $
              1,748,256                                                   $
             1,780,390                $
        
         6,683,760                  $
           1,724,757                    $
        1,810,706 $
        1,825,345 $
        1,775,589 $
        
        7,136,397






       
                
                  NET EARNINGS

    ---


       Segment Earnings:



       Engineered Products                                                                 $
              69,094                                                                           $
              47,702                                                       $
              64,890                                                      $
             56,481                  $
        
         238,167                     $
           67,119                       $
        77,129    $
        74,367    $
        73,233   $
        
        291,848



       Fueling Solutions                                                  53,498                                                     47,214                                                          66,601                                      69,661                                      236,974                                                            37,230                     52,637         68,069                73,937          231,873



       Imaging & Identification                                           51,482                                                     38,046                                                          51,928                                      52,017                                      193,473                                                            55,955                     54,641         61,655                57,233          229,484


        Pumps & Process Solutions (1)                                      66,079                                                     67,702                                                          89,786                                      81,709                                      305,276                                                            14,991                     76,278         77,433                71,379          240,081


        Refrigeration & Food Equipment (2)                                 23,529                                                     11,459                                                          40,159                                      27,725                                      102,872                                                            24,807                     44,375         35,211                14,439          118,832



        Total segment earnings (EBIT)                                     263,682                                                    212,123                                                         313,364                                     287,593                                    1,076,762                                                           200,102                    305,060        316,735               290,221        1,112,118



       Corporate expense / other(3)                                       24,097                                                     27,311                                                          35,603                                      39,651                                      126,662                                                            30,866                     24,512         28,658                63,781          147,817



       Interest expense                                                   27,268                                                     28,711                                                          27,724                                      28,234                                      111,937                                                            31,808                     31,754         31,410                30,846          125,818



       Interest income                                                   (1,183)                                                     (728)                                                          (960)                                      (700)                                     (3,571)                                                            (890)                     (945)       (1,263)              (1,428)         (4,526)



        Earnings before provision for income
         taxes                                                            213,500                                                    156,829                                                         250,997                                     220,408                                      841,734                                                           138,318                    249,739        257,930               197,022          843,009



       Provision for income taxes                                         37,221                                                     32,063                                                          50,697                                      38,302                                      158,283                                                            32,613                     51,654         51,924                28,900          165,091



       Net earnings                                                                       $
              176,279                                                                          $
              124,766                                                      $
              200,300                                                     $
             182,106                  $
        
         683,451                    $
           105,705                      $
        198,085   $
        206,006   $
        168,122   $
        
        677,918






       
                
                  SEGMENT MARGIN

    ---


       Engineered Products                                                16.9 %                                                    13.9 %                                                         16.8 %                                     14.3 %                                      15.6 %                                                           16.0 %                    17.9 %        17.4 %               17.4 %          17.2 %



       Fueling Solutions                                                  14.9 %                                                    14.5 %                                                         17.5 %                                     17.0 %                                      16.1 %                                                           10.0 %                    13.5 %        16.5 %               16.6 %          14.3 %



       Imaging & Identification                                           20.1 %                                                    16.7 %                                                         19.5 %                                     18.1 %                                      18.6 %                                                           20.9 %                    20.5 %        22.4 %               20.9 %          21.2 %


        Pumps & Process Solutions (1)                                      20.7 %                                                    21.9 %                                                         25.8 %                                     23.5 %                                      23.1 %                                                            4.5 %                    22.5 %        22.7 %               21.8 %          17.9 %


        Refrigeration & Food Equipment (2)                                  7.5 %                                                     3.9 %                                                         10.9 %                                      8.1 %                                       7.8 %                                                            7.4 %                    11.5 %         9.5 %                4.7 %           8.5 %


        Total segment operating margin                                     15.9 %                                                    14.1 %                                                         17.9 %                                     16.2 %                                      16.1 %                                                           11.6 %                    16.8 %        17.4 %               16.3 %          15.6 %





       
                
                  DEPRECIATION AND AMORTIZATION EXPENSE

    ---


       Engineered Products                                                                 $
              10,122                                                                            $
              9,722                                                       $
              10,717                                                      $
             12,042                   $
        
         42,603                     $
           10,359                       $
        10,452    $
        10,095    $
        10,126    $
        
        41,032



       Fueling Solutions                                                  18,339                                                     17,968                                                          18,014                                      18,482                                       72,803                                                            17,879                     18,945         18,744                19,477           75,045



       Imaging & Identification                                            8,769                                                      9,224                                                           9,809                                      10,576                                       38,378                                                             7,435                      7,413          7,360                 8,322           30,530



       Pumps & Process Solutions                                          18,336                                                     17,572                                                          17,206                                      19,077                                       72,191                                                            17,548                     16,201         16,018                17,817           67,584


        Refrigeration & Food Equipment                                     11,548                                                     11,421                                                          12,081                                      11,491                                       46,541                                                            13,011                     12,777         13,047                12,525           51,360



       Corporate                                                           1,638                                                      1,696                                                           1,662                                       1,539                                        6,535                                                             1,506                      1,981          1,523                 1,726            6,736



        Total depreciation and amortization
         expense                                                                            $
              68,752                                                                           $
              67,603                                                       $
              69,489                                                      $
             73,207                  $
        
         279,051                     $
           67,738                       $
        67,769    $
        66,787    $
        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 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.



       
                (3) Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt.

                                                                                                                                                                              
              
                DOVER CORPORATION

                                                                                                                                                                            
           
                QUARTERLY EARNINGS PER SHARE

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





       
                
                  Earnings Per Share

    ---

                                                                                                                                                                                       2020                                                                                                   2019

                                                                                                                                                                                                                                                           ---

                                                                                  Q1                           Q2               Q3  Q4       FY 2020     Q1             Q2                        Q3                           Q4       FY 2019

                                                                                                                                                                                                                                            ---


       
                Net earnings per share:



       Basic                                                                                    $
              1.22                         $
         0.87             $
        1.39                                                         $
           1.27                $
       
        4.74              $
          0.73              $
        1.36    $
        1.42    $
        1.16    $
       
        4.67



       Diluted                                                                                  $
              1.21                         $
         0.86             $
        1.38                                                         $
           1.25                $
       
        4.70              $
          0.72              $
        1.35    $
        1.40    $
        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                                                      $
           182,106             $
        
       683,451           $
          105,705           $
        198,085 $
        206,006 $
        168,122 $
        
       677,918





       
                Weighted average shares outstanding:



       Basic                                                                144,259                                        143,955            144,032 143,954                                   144,050                                           145,087                 145,366 145,372            144,966 145,198



       Diluted                                                              145,782                                        144,995            145,289 145,355                                   145,393                                           146,911                 147,179 147,051            146,790 146,992





       * Per share data may be impacted by rounding.

                                                         
       
                DOVER CORPORATION

                                                    
         
         CONDENSED CONSOLIDATED BALANCE SHEETS

                                                           
       (unaudited)(in thousands)




                                                                      December 31, 2020                                   December 31, 2019

                                                                                                                   ---


     
                Assets:



     Cash and cash equivalents                                                             $
              513,075                        $
         397,253



     Receivables, net of allowances                                          1,137,223                         1,217,190



     Inventories, net                                                          835,804                           806,141


      Prepaid and other current assets                                          133,085                           127,846


      Property, plant and equipment, net                                        897,326                           842,318



     Goodwill                                                                4,072,542                         3,783,347



     Intangible assets, net                                                  1,083,772                         1,055,014


      Other assets and deferred charges                                         479,247                           440,368



     
                Total assets                                                           $
              9,152,074                      $
         8,669,477





                   Liabilities and Stockholders' Equity:



     Notes payable                                                        
              $                                                $
         84,700


      Payables, accrued expenses and other
       current liabilities                                                    1,738,798                         1,663,391


      Deferred taxes and other non-current
       liabilities                                                              918,674                           903,010



     Long-term debt                                                          3,108,829                         2,985,716



     Stockholders' equity                                                    3,385,773                         3,032,660



                   Total liabilities and stockholders'
                    equity                                                                $
              9,152,074                      $
         8,669,477


                                       
              
                DOVER CORPORATION

                        
              
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                          
              (unaudited)(in thousands)




                                                                       Years Ended December 31,


                                                    2020                               2019

                                                                                       ---

                                  Operating activities:



     Net earnings                                         $
              683,451                          $
     677,918


      Loss on assets held for sale                     -                                        46,946


      Loss on extinguishment of debt                   -                                        23,543


      Depreciation and amortization              279,051                                        272,287


      Stock-based compensation                    25,026                                         29,702


      Contributions to employee
       benefit plans                            (19,801)                                      (21,436)


      Gain on sale of businesses                 (5,213)


      Net change in assets and
       liabilities                               142,296                                       (83,654)



      Net cash provided by operating
       activities                              1,104,810                                        945,306





                                  Investing activities:


      Additions to property, plant and
       equipment                               (165,692)                                     (186,804)


      Acquisitions (net of cash and
       cash equivalents acquired)              (335,786)                                     (215,687)


      Proceeds from the sale of
       property, plant and equipment               7,207                                          4,168


      Proceeds from the sale of
       businesses                                 15,400                                         24,218



     Other                                      (2,508)                                      (10,150)



      Net cash used in investing
       activities                              (481,379)                                     (384,255)





                                  Financing activities:


      Change in commercial paper and
       notes payable, net                       (84,700)                                     (135,650)


      Net increase in long-term debt                   -                                        42,357


      Dividends to stockholders                (284,312)                                     (282,197)


      Purchase of common stock                 (106,279)                                     (143,280)


      Payments to settle employee tax
       obligations on exercise                  (28,476)                                      (37,370)



     Other                                      (2,523)                                       (1,902)



      Net cash used in financing
       activities                              (506,290)                                     (558,042)





      Effect of exchange rate changes
       on cash                                   (1,319)                                       (1,977)





      Net increase in cash and cash
       equivalents                               115,822                                          1,032


      Cash and cash equivalents at
       beginning of period                       397,253                                        396,221



      Cash and cash equivalents at end
       of period                                           $
              513,075                          $
     397,253


                                                                                                                                                                                                                                              
              
                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                Q4       FY 2020        Q1                Q2                           Q3                           Q4             FY 2019

                                                                                                                                                                                                                                                                                                                             ---


       
                Adjusted net earnings:



       Net earnings                                                                                                                  $
              176,279                                                $
         124,766               $
         200,300                                                               $
           182,106                  $
        
           683,451                  $
              105,705                     $
        198,085 $
        206,006 $
        168,122 $
        
       677,918



       Acquisition-related amortization, pre-tax (1)                                                                 34,062                                                     34,101                           35,325     35,027                                         138,515                                                       35,635                      34,997         34,244                 33,460           138,336



       Acquisition-related amortization, tax impact (2)                                                             (8,411)                                                   (8,451)                         (8,810)   (8,695)                                       (34,367)                                                     (8,964)                    (8,777)       (8,624)               (8,403)         (34,768)



       Rightsizing and other costs, pre-tax (3)                                                                       7,859                                                     16,840                            5,848     20,925                                          51,472                                                        3,963                       6,457          3,807                 17,926            32,153



       Rightsizing and other costs, tax impact (2)                                                                  (1,605)                                                   (3,452)                         (1,343)   (4,402)                                       (10,802)                                                       (861)                    (1,377)         (806)               (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



       (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                                                               $
           224,961                  $
        
           824,323                  $
              182,424                     $
        229,385 $
        234,627 $
        225,740 $
        
       872,176






       
                Adjusted diluted net earnings per share:



       Diluted net earnings per share                                                                                                   $
              1.21                                                   $
         0.86                  $
         1.38                                                                  $
           1.25                     $
       
            4.70                     $
              0.72                        $
        1.35    $
        1.40    $
        1.15    $
       
        4.61



       Acquisition-related amortization, pre-tax (1)                                                                   0.23                                                       0.24                             0.24       0.24                                            0.95                                                         0.24                        0.24           0.23                   0.23              0.94



       Acquisition-related amortization, tax impact (2)                                                              (0.06)                                                    (0.06)                          (0.06)    (0.06)                                         (0.24)                                                      (0.06)                     (0.06)        (0.06)                (0.06)           (0.24)



       Rightsizing and other costs, pre-tax (3)                                                                        0.05                                                       0.12                             0.04       0.14                                            0.35                                                         0.03                        0.04           0.03                   0.12              0.22



       Rightsizing and other costs, tax impact (2)                                                                   (0.01)                                                    (0.02)                          (0.01)    (0.03)                                         (0.07)                                                      (0.01)                     (0.01)        (0.01)                (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



       (Gain) loss on disposition, pre-tax 6                                                                         (0.04)                                                                                                                                             (0.03)



       (Gain) loss on disposition, tax-impact (2)                                                                      0.01                                                                                                                                                0.01




       Adjusted diluted net earnings per share                                                                                          $
              1.39                                                   $
         1.13                  $
         1.60                                                                  $
           1.55                     $
       
            5.67                     $
              1.24                        $
        1.56    $
        1.60    $
        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 EUR300,000 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                          Q4      FY 2020         Q1                Q2           Q3                           Q4                           FY 2019

                                                                                                                                                                                                                                                                                                                 ---


              
                
                  ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA

    ---


              
                
                  Engineered Products:

    ---


              Segment earnings (EBIT)                                                                             $
              69,094                                                           $
        47,702               $
           64,890                                                           $
              56,481                   $
       
          238,167                    $
            67,119                      $
      77,129  $
      74,367  $
      73,233   $
       
       291,848



              Rightsizing and other costs                                                           361                                                      4,169                                     2,375       4,625                          11,530                                                                            80                   1,125             590                1,355             3,150




              Adjusted EBIT - Segment                                                            69,455                                                     51,871                                    67,265      61,106                         249,697                                                                        67,199                  78,254          74,957               74,588           294,998


    Adjusted EBIT %                                                                             17.0 %                                                    15.2 %                                   17.4 %     15.5 %                         16.3 %                                                                       16.0 %                 18.2 %         17.6 %              17.7 %           17.4 %



              Adjusted D&A (2)                                                                   10,122                                                      9,722                                    10,651      10,193                          40,688                                                                        10,359                   9,855          10,095               10,126            40,435




              Adjusted EBITDA - Segment                                                                           $
              79,577                                                           $
        61,593               $
           77,916                                                           $
              71,299                   $
       
          290,385                    $
            77,558                      $
      88,109  $
      85,052  $
      84,714   $
       
       335,433


    Adjusted EBITDA %                                                                           19.5 %                                                    18.0 %                                   20.2 %     18.1 %                         19.0 %                                                                       18.5 %                 20.5 %         19.9 %              20.1 %           19.8 %



              
                
                  Fueling Solutions:

    ---


              Segment earnings (EBIT)                                                                             $
              53,498                                                           $
        47,214               $
           66,601                                                           $
              69,661                   $
       
          236,974                    $
            37,230                      $
      52,637  $
      68,069  $
      73,937   $
       
       231,873



              Rightsizing and other costs                                                         1,493                                                        868                                     1,615       2,727                           6,703                                                                           752                   1,768             811                1,554             4,885




              Adjusted EBIT - Segment                                                            54,991                                                     48,082                                    68,216      72,388                         243,677                                                                        37,982                  54,405          68,880               75,491           236,758


    Adjusted EBIT %                                                                             15.3 %                                                    14.7 %                                   17.9 %     17.7 %                         16.5 %                                                                       10.2 %                 13.9 %         16.7 %              17.0 %           14.6 %



              Adjusted D&A (2)                                                                   18,339                                                     17,783                                    18,014      18,225                          72,361                                                                        17,879                  18,945          18,744               19,477            75,045




              Adjusted EBITDA - Segment                                                                           $
              73,330                                                           $
        65,865               $
           86,230                                                           $
              90,613                   $
       
          316,038                    $
            55,861                      $
      73,350  $
      87,624  $
      94,968   $
       
       311,803


    Adjusted EBITDA %                                                                           20.4 %                                                    20.2 %                                   22.7 %     22.1 %                         21.4 %                                                                       15.0 %                 18.8 %         21.3 %              21.4 %           19.2 %



              
                
                  Imaging & Identification:

    ---


              Segment earnings (EBIT)                                                                             $
              51,482                                                           $
        38,046               $
           51,928                                                           $
              52,017                   $
       
          193,473                    $
            55,955                      $
      54,641  $
      61,655  $
      57,233   $
       
       229,484



              Rightsizing and other costs                                                           264                                                      (527)                                       99       6,191                           6,027                                                                           389                   1,268             301                4,392             6,350




              Adjusted EBIT - Segment                                                            51,746                                                     37,519                                    52,027      58,208                         199,500                                                                        56,344                  55,909          61,956               61,625           235,834


    Adjusted EBIT %                                                                             20.2 %                                                    16.5 %                                   19.6 %     20.2 %                         19.2 %                                                                       21.0 %                 21.0 %         22.5 %              22.5 %           21.7 %



              Adjusted D&A (2)                                                                    8,769                                                      9,224                                     9,809      10,201                          38,003                                                                         7,336                   7,317           7,286                7,892            29,831




              Adjusted EBITDA - Segment                                                                           $
              60,515                                                           $
        46,743               $
           61,836                                                           $
              68,409                   $
       
          237,503                    $
            63,680                      $
      63,226  $
      69,242  $
      69,517   $
       
       265,665


    Adjusted EBITDA %                                                                           23.6 %                                                    20.5 %                                   23.3 %     23.8 %                         22.9 %                                                                       23.7 %                 23.7 %         25.2 %              25.3 %           24.5 %



              
                
                  Pumps & Process Solutions:

    ---


              Segment earnings (EBIT)                                                                             $
              66,079                                                           $
        67,702               $
           89,786                                                           $
              81,709                   $
       
          305,276                    $
            14,991                      $
      76,278  $
      77,433  $
      71,379   $
       
       240,081



              Rightsizing and other costs                                                         3,846                                                      4,691                                     1,771       3,128                          13,436                                                                           414                     903             943                3,868             6,128



              Loss on assets held for sale (1)                                                        -                                                                                                                                                                                                                    46,946                                                                      46,946




              Adjusted EBIT - Segment                                                            69,925                                                     72,393                                    91,557      84,837                         318,712                                                                        62,351                  77,181          78,376               75,247           293,155


    Adjusted EBIT %                                                                             21.9 %                                                    23.4 %                                   26.3 %     24.4 %                         24.1 %                                                                       18.9 %                 22.8 %         23.0 %              22.9 %           21.9 %



              Adjusted D&A (2)                                                                   16,230                                                     16,816                                    17,206      17,565                          67,817                                                                        17,548                  16,199          16,018               17,004            66,769




              Adjusted EBITDA - Segment                                                                           $
              86,155                                                           $
        89,209              $
           108,763                                                          $
              102,402                   $
       
          386,529                    $
            79,899                      $
      93,380  $
      94,394  $
      92,251   $
       
       359,924


    Adjusted EBITDA %                                                                           27.0 %                                                    28.9 %                                   31.3 %     29.5 %                         29.2 %                                                                       24.2 %                 27.6 %         27.7 %              28.1 %           26.9 %



              
                
                  Refrigeration & Food Equipment:

    ---


              Segment earnings (EBIT)                                                                             $
              23,529                                                           $
        11,459               $
           40,159                                                           $
              27,725                   $
       
          102,872                    $
            24,807                      $
      44,375  $
      35,211  $
      14,439   $
       
       118,832



              Rightsizing and other costs                                                           704                                                      6,016                                     (971)        726                           6,475                                                                         2,293                     666             840                2,243             6,042



              (Gain) loss on disposition (3)                                                    (6,551)                                                       781                                       557                                    (5,213)




              Adjusted EBIT - Segment                                                            17,682                                                     18,256                                    39,745      28,451                         104,134                                                                        27,100                  45,041          36,051               16,682           124,874


    Adjusted EBIT %                                                                              5.7 %                                                     6.2 %                                   10.8 %      8.3 %                          7.9 %                                                                        8.1 %                 11.7 %          9.7 %               5.4 %            8.9 %



              Adjusted D&A (2)                                                                   11,548                                                     11,421                                    12,081      11,491                          46,541                                                                        13,011                  12,777          13,047               12,525            51,360




              Adjusted EBITDA - Segment                                                                           $
              29,230                                                           $
        29,677               $
           51,826                                                           $
              39,942                   $
       
          150,675                    $
            40,111                      $
      57,818  $
      49,098  $
      29,207   $
       
       176,234


    Adjusted EBITDA %                                                                            9.4 %                                                    10.1 %                                   14.1 %     11.7 %                         11.4 %                                                                       12.0 %                 15.0 %         13.3 %               9.5 %           12.6 %



              
                
                  Total Segments:

    ---


              Segment earnings (EBIT) 4                                                                          $
              263,682                                                          $
        212,123              $
           313,364                                                          $
              287,593                 $
       
          1,076,762                   $
            200,102                     $
      305,060 $
      316,735 $
      290,221 $
       
       1,112,118



              Rightsizing and other costs                                                         6,668                                                     15,217                                     4,889      17,397                          44,171                                                                         3,928                   5,730           3,485               13,412            26,555



              Loss on assets held for sale (1)                                                        -                                                                                                                                                                                                                    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     304,990                       1,115,720                                                                       250,976                 310,790         320,220              303,633         1,185,619



              Adjusted EBIT % 4                                                                  15.9 %                                                    15.2 %                                   18.2 %     17.1 %                         16.7 %                                                                       14.5 %                 17.2 %         17.5 %              17.1 %           16.6 %



              Adjusted D&A (2)                                                                   65,008                                                     64,966                                    67,761      67,675                         265,410                                                                        66,133                  65,093          65,190               67,024           263,440




              Adjusted EBITDA - Segment 5                                                                        $
              328,807                                                          $
        293,087              $
           386,571                                                          $
              372,665                 $
       
          1,381,130                   $
            317,109                     $
      375,883 $
      385,410 $
      370,657 $
       
       1,449,059



              Adjusted EBITDA % 5                                                                19.9 %                                                    19.5 %                                   22.1 %     20.9 %                         20.7 %                                                                       18.4 %                 20.7 %         21.1 %              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 FY 2020 includes a $6,551 gain, a $781 expense, a $557 expense and a $5,213 net gain on the sale of a business for AMS Chino, respectively.



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



              
                5 Refer to Non-GAAP Disclosures section for definition.

                                                                       
              
                DOVER CORPORATION

                                                                     
        
                REVENUE GROWTH FACTORS (NON-GAAP)

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





       
                
                  Non-GAAP Reconciliations

    ---




       
                
                  Revenue Growth Factors

    ---



                                                                                                                                      2020



                                                                Q1                      Q2                                    Q3     Q4          Q4 YTD

                                                                                                                                                    ---


       Organic



       Engineered Products                                  (1.9)                                 (20.1)                        (10.4)                 (8.8)
                                                                                                        %                             %                                   %
                                                                 %                                                                                          %        (10.3)



       Fueling Solutions                                    (2.6)                                 (14.8)                         (7.9)                 (9.4)         (8.8)
                                                                                                        %
                                                                 %                                                                    %                     %             %



       Imaging & Identification                             (4.3)                                 (14.0)                         (7.6)                 (2.9)         (7.2)
                                                                                                        %
                                                                 %                                                                    %                     %             %



       Pumps & Process Solutions                            (1.1)                                  (8.8)                         (0.9)                   1.8          (2.3)

                                                                 %                                      %                             %                     %             %



       Refrigeration & Food Equipment                       (4.3)                                 (20.2)                           2.6                   13.2          (3.0)
                                                                                                        %                             %
                                                                 %                                                                                          %             %

                                                                                                                                                                               ---


       Total Organic                                        (2.7)                                 (16.0)                         (5.1)                 (2.3)         (6.6)
                                                                                                        %
                                                                 %                                                                    %                     %             %



       Acquisitions                                           0.8                                     0.7                            1.0                    1.2
                                                                                                        %                             %                                   %
                                                                 %                                                                                          %           1.0



       Dispositions                                         (0.7)                                  (0.7)                         (0.8)                 (0.5)         (0.7)

                                                                 %                                      %                             %                     %             %



       Currency translation                                 (1.4)                                  (1.2)                           0.7                    1.9
                                                                                                                                      %
                                                                 %                                      %                                                   %                           %

                                                                                                                                                                                    ---


       Total*                                               (4.0)                                      %                 (17.2)           (4.2)                 0.3          (6.3)
                                                                                                                               %
                                                                 %                                                                             %                   %             %





       * Totals may be impacted by rounding.

                                                                        2020



                                                Q1 Q2         Q3     Q4      Q4 YTD

                                                                                ---


     Organic



     United States                            3.5     (10.3)      (4.2)              (1.0)     (3.1)
                                                 %         %
                                                                      %                  %         %



     Other Americas                         (4.7)    (33.5)      (4.7)              (1.4)
                                                           %                                       %
                                                 %                    %                  %    (12.1)



     Europe                                 (7.4)    (19.5)      (4.2)              (2.5)     (8.5)
                                                           %
                                                 %                    %                  %         %



     Asia                                  (19.2)    (14.3)     (10.1)             (11.4)    (13.5)
                                                 %         %          %                  %         %



     Other                                  (8.8)    (33.1)      (5.8)               10.9      (9.3)
                                                           %                             %
                                                 %                    %                            %

                                                                                                         ---


     Total Organic                          (2.7)    (16.0)      (5.1)              (2.3)     (6.6)
                                                           %
                                                 %                    %                  %         %



     Acquisitions                             0.8        0.7         1.0                 1.2        1.0
                                                 %         %          %                  %         %



     Dispositions                           (0.7)     (0.7)      (0.8)              (0.5)     (0.7)

                                                 %         %          %                  %         %



     Currency translation                   (1.4)     (1.2)
                                                                      %                  %
                                                 %         %        0.7                 1.9                  %

                                                                                                         ---


     Total*                                 (4.0)    (17.2)      (4.2)                0.3      (6.3)
                                                           %                             %
                                                 %                    %                            %





     * Totals may be impacted by rounding.


       
                
                  Adjusted Guidance Reconciliation

    ---



                                                                2020 Actual           2021
                                                                                       Guidance

                                                                                            ---

                     Adjusted net earnings per
                      share*:


        Net earnings
         (GAAP)                                                             $
     
     4.70                
     
     $5.42 - $5.62


        Acquisition-
         related
         amortization,
         net                                                           0.72                     0.72


        Rightsizing and
         other costs, net                                              0.28                     0.11


        Gain on
         disposition, net                                            (0.03)



                     Adjusted net
                      earnings (Non-
                      GAAP)                                                 $
     
     5.67                
     
     $6.25 - $6.45





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

                                                                                                                                          
          
                DOVER CORPORATION

                                                                                                                                        
          
                PERFORMANCE MEASURES

                                                                                                                                            
          (unaudited)(in thousands)




                                                                                                                       2020                                                                                                                                                              2019

                                                                                                                                                                                                                ---

                                                  Q1             Q2     Q3  Q4       FY 2020      Q1              Q2             Q3           Q4                           FY 2019

                                                                                                                                                                               ---


       
                
                  BOOKINGS

    ---




       Engineered Products                            $
       414,972              $
       278,373             $
       381,139                                            $
              484,002                        $
         
     1,558,486                                                $
       427,697                                 $
       397,420                  $
       426,059                  $
       457,145 $
     
     1,708,321



       Fueling Solutions                    373,070                311,498            383,902  403,400                       1,471,870                                                   343,083                         394,256                       450,727                        425,698                   1,613,764



       Imaging & Identification             272,604                221,315            266,423  304,756                       1,065,098                                                   267,762                         264,175                       284,527                        276,451                   1,092,915



       Pumps & Process Solutions            369,403                275,872            323,801  365,262                       1,334,338                                                   369,801                         375,905                       329,642                        318,482                   1,393,830


        Refrigeration & Food Equipment       355,157                326,400            449,549  379,393                       1,510,499                                                   376,998                         384,365                       323,422                        361,970                   1,446,755



       Intra-segment eliminations             (375)                 (460)             (926)   (425)                        (2,186)                                                    (725)                          (490)                        (528)                           872                       (871)




       Total consolidated bookings                  $
       1,784,831            $
       1,412,998           $
       1,803,888                                          $
              1,936,388                        $
         
     6,938,105                                              $
       1,784,616                               $
       1,815,631                $
       1,813,849                $
       1,840,618 $
     
     7,254,714






       
                
                  BACKLOG

    ---




       Engineered Products                            $
       453,867              $
       378,874             $
       373,458                                            $
              463,701                                                           $
       451,335                                    $
       418,154                               $
       416,025                  $
       452,142



       Fueling Solutions                    211,518                199,305            204,574  201,521                                                                        185,847               186,202                          223,081                        205,842



       Imaging & Identification             170,119                168,904            171,158  192,785                                                                        118,177               116,810                          121,877                        125,775



       Pumps & Process Solutions            397,969                379,090            361,631  390,238                                                                        353,066               378,427                          361,478                        353,073


        Refrigeration & Food Equipment       356,133                390,368            472,140  510,498                                                                        311,632               310,454                          262,870                        320,577



       Intra-segment eliminations             (159)                 (367)             (269)   (192)                                                                         (403)                (141)                           (252)                         (249)




       Total consolidated backlog                   $
       1,589,447            $
       1,516,174           $
       1,582,692                                          $
              1,758,551                                                         $
       1,419,654                                  $
       1,409,906                             $
       1,385,079                $
       1,457,160





       
                
                  Bookings Growth Factors

    ---



                                                                                  2020


                                                               Q1   Q2         Q3          Q4   Q4 YTD

                                                                                                   ---


       Organic



       Engineered Products                                 (2.3)      (29.8)          (11.6)            3.3     (9.5)
                                                                            %               %
                                                                %                                          %        %



       Fueling Solutions                                     9.5       (18.2)          (14.2)          (6.0)    (8.0)
                                                                            %               %
                                                                %                                          %        %



       Imaging & Identification                              0.3       (16.5)           (9.9)            0.7     (6.3)
                                                                            %
                                                                %                           %              %        %



       Pumps & Process Solutions                             2.2       (25.7)           (3.7)           10.8     (4.8)
                                                                            %
                                                                %                           %              %        %



       Refrigeration & Food Equipment                      (4.2)      (11.6)            41.3             5.6       6.5
                                                                            %               %
                                                                %                                          %        %

                                                                                                                          ---


       Total Organic                                         0.9       (20.6)           (1.1)            2.4     (4.6)
                                                                            %
                                                                %                           %              %        %



       Acquisitions                                          1.0          0.7              0.8             1.5       1.0
                                                                            %               %
                                                                %                                          %        %



       Dispositions                                        (0.7)       (0.6)           (0.6)          (0.4)    (0.6)

                                                                %           %               %              %        %



       Currency translation                                (1.2)       (1.7)             0.4             1.7     (0.2)
                                                                                            %
                                                                %           %                              %        %

                                                                                                                          ---


       Total*                                                  - %    (22.2)           (0.5)            5.2     (4.4)
                                                                            %
                                                                                            %              %        %



       * Totals may be impacted by rounding.

ADDITIONAL INFORMATION
FOURTH QUARTER AND FULL YEAR 2020
(Amounts in thousands except share data and where otherwise indicated)

Acquisitions

During the fourth quarter of 2020 the Company completed the acquisition of Innovative Control Systems, Inc. ("ICS") within the Fueling Solutions segment for a total consideration of $77.0 million, net of cash acquired. For the full year 2020, the Company acquired six businesses in separate transactions for total consideration of $335.8 million, net of cash acquired. The businesses were acquired to complement and expand upon existing operations within the Engineered Products, Fueling Solutions, Imaging & Identification and Pumps & Process Solutions segments.

Discontinued and Disposed Businesses

The Company did not dispose of any businesses during the fourth quarter of 2020. For the full year 2020, the Company completed the sale of the Chino, California branch of The AMS Group ("AMS Chino"), a wholly owned subsidiary of the Company, which generated total cash proceeds of $15.4 million. This sale resulted in a pre-tax gain on sale of $5.2 million included within the Refrigeration & Food Equipment segment. The sale does not represent a strategic shift that will have a major effect on operations and financial results and, therefore, did not qualify for presentation as a discontinued operation.

Rightsizing and Other Costs

During the fourth quarter and year ended December 31, 2020, rightsizing activities included restructuring charges of $18.1 million and $44.5 million, respectively, and other costs of $2.8 million and $7.0 million, respectively. For the full year 2020, restructuring expense was comprised primarily of new actions executed in response to lower demand driven by COVID-19 as well as continuing broad-based selling, general and administrative expense reduction initiatives and broad-based operational efficiency initiatives focusing on footprint consolidation, and operational optimization and IT centralization. Other costs were comprised primarily of charges related to restructuring actions and asset charges, principally due to a $3.6 million write off of assets, partially offset by a $1.7 million gain on sale of assets in our Refrigeration & Food Equipment segment as a result of restructuring actions.

      ($ in millions)                                    2020                     2019

                                                                         ---

                                             Q4               FY      Q4                FY

                                                                                       ---

      Engineered
       Products                                  $
      4.6                 $
      11.5             $
      1.4   $
      3.2


      Fueling Solutions                     2.7                   6.7                    1.6       4.9


      Imaging &
       Identification                       6.2                   6.0                    4.4       6.4


      Pumps & Process
       Solutions                            3.1                  13.4                    3.9       6.1


      Refrigeration &
       Food Equipment                       0.7                   6.5                    2.2       6.0


      Corporate                             3.5                   7.3                    4.5       5.6



                   Total*                       $
      20.9                 $
      51.5            $
      17.9  $
      32.2




     * Totals may be impacted by rounding.

Tax Rate

The effective tax rate was 17.4% and 14.7% for the fourth quarters of 2020 and 2019, respectively. On a full year basis, the effective tax rate for 2020 and 2019 was 18.8% and 19.6%, respectively. The 2020 tax rate was primarily driven by the release of reserves due to the statute of limitations expiration and the tax deduction for share-based awards. The 2019 tax rate was primarily driven by the tax deduction for share-based awards and other favorable discrete items, partially offset by the exclusion of capital losses on a disposition of a business under local tax law.

ADDITIONAL INFORMATION (CONTINUED)
FOURTH QUARTER AND FULL YEAR 2020
(Amounts in thousands except share data and where otherwise indicated)

Share Repurchases

During the year ended December 31, 2020, the Company purchased approximately 1.0 million shares of its common stock for a total cost of $106.3 million, or $108.54 per share. In November 2020, the Company's Board of Directors approved a new standing share repurchase authorization, whereby the Company may repurchase up to 20 million shares beginning on January 1, 2021 through December 31, 2023.

Capitalization

The following table provides a reconciliation of total debt and net debt to net capitalization to the most directly comparable GAAP measures:

                   Net Debt to Net
                    Capitalization Ratio
                    (Non-GAAP)           December 31, 2020              December 31, 2019


      Commercial paper                        
              $                                                  $
       84,700


      Long-term debt                             3,108,829                                      2,985,716




     Total debt                                 3,108,829                                      3,070,416


      Less: Cash and cash
       equivalents                               (513,075)                                     (397,253)




     Net debt                                   2,595,754                                      2,673,163


      Add: Stockholders'
       equity                                    3,385,773                                      3,032,660



      Net capitalization                                   $
     5,981,527                                   $
       5,705,823



      Net debt to net
       capitalization                       43.4
            %                                46.8
            %



              
                
              Quarterly Cash Flow

    ---

                                                                                                                                       2020                                                                 2019



                                                                  Q1        Q2       Q3  Q4              FY 2020                  Q1              Q2  Q3      Q4      FY 2019




              Net Cash Flows Provided
    By (Used In):



              Operating activities                                  $
     75,863              $
       271,809                    $
     339,247                   $
     417,891            $
     
        1,104,810                 $
            24,524              $
     208,709 $
     350,865 $
     361,208 $
     
     945,306



              Investing activities                        (230,511)           (67,763)        (64,724)          (118,381)                 (481,379)                (217,690)       (69,755)     (48,612)           (48,198)      (384,255)



              Financing activities                          280,954            (67,458)       (496,832)          (222,954)                 (506,290)                   36,067        (60,596)    (277,901)           (255,612)      (558,042)


       
                
                  Quarterly Free Cash Flow (Non-GAAP)

    ---

                                                                                                                                                                                                                                                                  2020                                                                                          2019

                                                                                                                                                                                                                                                                                                            ---

                                                                                                                               Q1                           Q2                           Q3                           Q4           FY 2020               Q1               Q2           Q3     Q4    FY 2019

                                                                                                                                                                                                                                                                                                        ---


       Cash flow from operating activities                                                                                                 $
              75,863                                                           $
             271,809                    $
          339,247                   $
        417,891                $
       
              1,104,810                       $
              24,524                     $
      208,709  $
      350,865  $
      361,208  $
      
      945,306



       Less: Capital expenditures                                                                                       (40,172)                                                  (38,999)                                       (44,393)         (42,128)                     (165,692)                       (37,122)                   (53,970)           (46,184)             (49,528)        (186,804)




       Free cash flow *                                                                                                                    $
              35,691                                                           $
             232,810                    $
          294,854                   $
        375,763                  $
       
              939,118                     $
              (12,598)                    $
      154,739  $
      304,681  $
      311,680  $
      
      758,502






       Free cash flow as a percentage of revenue                                                                   2.2
            %                                            15.5
            %                                 16.9
            %   21.1
            %                          14.1                           (0.7)              8.5
            %     16.7
            %       17.6
            %             10.6
                                                                                                                                                                                                                                                                               
            %                              %                                                                          
            %





       Free cash flow as a percentage of net earnings                                                                       20.2                                                      186.6                                           147.2             206.3                          137.4                          (11.9)             78.1
            %              147.9                 185.4             111.9
                                                                                                                                %                                                         %                                              %                %                    
            %                              %                                             %                    %       
            %





       *  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.

Non-GAAP Disclosures

In an effort to provide investors with additional information regarding our results as determined by GAAP, Management also discloses non-GAAP information that Management believes provides useful information to investors. Adjusted 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, net debt, net capitalization, net debt to net capitalization ratios, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of 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, debt or equity, 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 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.

Net debt represents total debt minus cash and cash equivalents. Net capitalization represents net debt plus stockholders' equity. Net debt to net capitalization ratio equals net debt divided by net capitalization. Management believes the net debt to net capitalization ratio is useful to assess our overall financial leverage and capacity.

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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