dov-20200421
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________ 

FORM 8-K
_______________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 21, 2020
_______________________________
dov-20200421_g1.jpg
DOVER CORPORATION
(Exact name of registrant as specified in its charter)
______________________________________________
Delaware1-401853-0257888
(State or other jurisdiction of incorporation) (Commission File Number)(I.R.S. Employer Identification No.)
   
3005 Highland Parkway 
Downers Grove, Illinois
60515
(Address of Principal Executive Offices)(Zip Code)
(630) 541-1540
(Registrant’s telephone number, including area code)
 ______________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockDOVNew York Stock Exchange
1.250% Notes due 2026DOV 26New York Stock Exchange
0.750% Notes due 2027DOV 27New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02 Results of Operations and Financial Condition.
 
On April 21, 2020, Dover Corporation ("Dover") issued the Press Release attached hereto as Exhibit 99.1 announcing its results of operations for the quarter ended March 31, 2020.
 
The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished to the Securities and Exchange Commission (the “SEC”) and shall not be deemed to be incorporated by reference into any of Dover’s filings with the SEC under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit is furnished as part of this report:
 
99.1 Press Release dated April 21, 2020.

104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
  
Date:April 21, 2020DOVER CORPORATION
 (Registrant)
   
 By:/s/ Ivonne M. Cabrera
  Ivonne M. Cabrera
  Senior Vice President, General Counsel & Secretary
   






Exhibit 99.1
doverlogo1.jpg

Investor Contact:Media Contact:
Andrey GaliukAdrian Sakowicz
Vice President - Corporate DevelopmentVice President - Communications
and Investor Relations  (630) 743-5039 
(630) 743-5131 [email protected]  
[email protected]  

DOVER REPORTS FIRST QUARTER 2020 DILUTED EPS OF $1.21 ($1.39 ON AN ADJUSTED BASIS); SUSPENDS 2020 GUIDANCE WITH AN OBJECTIVE TO REINSTATE NEXT QUARTER


DOWNERS GROVE, Ill., April 21, 2020 — Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the first quarter ended March 31, 2020.

Three Months Ended March 31,   
($ in millions, except per share data)20202019% Change
U.S. GAAP  
Revenue  $1,656  $1,725  (4.0)%
Net earnings
176  106  66.8 %
Diluted EPS
1.21  0.72  68.1 %
Non-GAAP  
Organic revenue decline
(2.7)%
Adjusted net earnings 1
203  182  11.4 %
Adjusted diluted EPS  1.39  1.24  12.1 %

1 For the three months ended March 31, 2020 and 2019, adjusted net earnings excluded after tax acquisition-related amortization costs of $25.7 million and $26.7 million, respectively, and rightsizing and other costs of $6.3 million and $3.1 million, respectively. In addition, the three months ended March 31, 2020, also excluded a $5.0 million non-cash after-tax gain on the sale of the Chino branch of The AMS Group, and the three months ended March 31, 2019 excluded a $46.9 million non-cash after-tax loss on assets held for sale related to Finder.

For the quarter ended March 31, 2020, Dover generated revenue of $1.7 billion, a decline of 4% (-3% organic) compared to the first quarter of the prior year. GAAP net earnings of $176 million increased 67%, and GAAP diluted EPS of $1.21 was up 68%. On an adjusted basis, net earnings of $203 million grew 11%, and adjusted diluted EPS of $1.39 was up 12% versus the comparable quarter of the prior year.

A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein.

MANAGEMENT COMMENTARY:

Dover’s President and Chief Executive Officer, Richard J. Tobin, said, “Our first quarter results are entirely attributable to the perseverance of Dover’s employees as they diligently continued to serve our customers in this challenging environment, which unfortunately deteriorated progressively through the quarter. We anticipate that the challenge will not be over soon, but we will gather the collective strength of our resilient business portfolio, sound financial position, and the resolve of our entire Dover team to continue to serve both our internal and external partners.

“As we expected, Q1 top-line was weaker year-over-year given a challenging comparable period, which was exacerbated by the pandemic-related challenges, particularly in China and Italy, and increasingly difficult trading conditions in the capital goods and textiles sectors of the global economy. Bookings were flat year-over-year in the quarter yielding an increased backlog compared to the same time last year, providing some support ahead of what we expect to be a difficult second quarter. Despite our lower revenue in the quarter, we increased segment margins and grew absolute net earnings as a result of carryover benefits from our productivity initiatives and prudent debt refinancing undertaken in late 2019. This has been augmented by additional cost actions carried out as the quarter progressed.

“In the first quarter we started facing headwinds associated with the outbreak of COVID-19, which led to operational interruptions and increased business uncertainty. Our foremost focus has been on the health and safety of our employees and partners, as well



as on supporting the many important societal functions through our portfolio of businesses, such as retail fueling, food retail, food packaging, biopharma, municipal waste removal and many others. We remained largely operational in the US and most of Europe through Q1, although our facilities were down in China, Italy, India and Malaysia for several weeks during the quarter.

“We are approaching the uncertainty and challenges in the second quarter and the rest of 2020 with resolve and from a position of strength given our strong balance sheet and operational execution momentum, and we are taking additional steps to manage through these times. Where appropriate, our businesses are reducing production capacity to prevailing demand conditions and we have taken steps across the portfolio and at the corporate center to reduce our controllable costs. We are keenly focused on working capital management as demonstrated by our first quarter cash flow results and have initiated a capital spending plan review that has resulted in a materially lower full year capital expense forecast, without deferring strategic ongoing initiatives. Additionally, in the spirit of prudent liquidity management, we have drawn a $500M portion of our revolver facility considering the current commercial paper market conditions, even though we have no long-term debt maturities until 2025.

“We are confident in Dover’s ability to navigate the challenging environment with a sense of responsibility to our teams, customers, partners and shareholders. Dover has a long and tested history of cash flow generation and we are further stepping up our capital management discipline without changing our strategic allocation priorities.”

2020 GUIDANCE UPDATE:

Due to the COVID-19 pandemic and the resulting negative impact to the global demand environment we are unable to forecast with certainty the effect on Dover’s financial and operational results, which could be material, and as such, Dover’s previously communicated guidance for full year 2020 revenue growth and adjusted EPS has been suspended. Our objective is to reinstate guidance for the remainder of the year with our Q2 2020 earnings announcement.

CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its first quarter 2020 results and outlook for 2020 at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, April 21, 2020. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover’s first quarter results and its operating segments can be found on the Company’s website.

ABOUT DOVER:

Dover is a diversified global manufacturer and solutions provider with annual revenue of approximately $7 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of approximately 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at dovercorporation.com.

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, “forward-looking” statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control. Factors that could cause actual results to differ materially from current expectations include, among other things, the impacts of COVID-19 on the global economy and on our customers, suppliers, employees, operations, business, liquidity 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, liquidity enhancing actions, 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 - FIRST QUARTER 2020

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

Three Months Ended March 31,
20202019
Revenue$1,655,939  $1,724,757  
Cost of goods and services1,043,696  1,101,215  
Gross profit612,243  623,542  
Selling, general, and administrative expenses386,941  408,466  
Loss on assets held for sale—  46,946  
Operating earnings225,302  168,130  
Interest expense27,268  31,808  
Interest income(1,183) (890) 
Gain on sale of a business(6,551) —  
Other income, net(7,732) (1,106) 
Earnings before provision for income taxes213,500  138,318  
Provision for income taxes37,221  32,613  
Net earnings$176,279  $105,705  
Net earnings per share:
Basic$1.22  $0.73  
Diluted$1.21  $0.72  
Weighted average shares outstanding:
Basic144,259145,087
Diluted145,782146,911
Dividends paid per common share$0.49  $0.48  
* Per share data may be impacted by rounding.

IS - 1


DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
20202019
Q1  Q1Q2Q3Q4FY 2019  
REVENUE
Engineered Products$408,160  $418,851  $429,928  $426,689  $422,089  $1,697,557  
Fueling Solutions359,982  373,050  390,586  411,769  444,772  1,620,177  
Imaging & Identification256,765  268,354  266,588  275,109  274,420  1,084,471  
Pumps & Process Solutions319,536  330,219  338,924  341,337  328,048  1,338,528  
Refrigeration & Food Equipment311,913  334,643  385,474  370,335  306,165  1,396,617  
Intra-segment eliminations(417) (360) (794) 106  95  (953) 
Total consolidated revenue$1,655,939  $1,724,757  $1,810,706  $1,825,345  $1,775,589  $7,136,397  
NET EARNINGS
Segment Earnings:
Engineered Products$69,094  $67,119  $77,129  $74,367  $73,233  $291,848  
Fueling Solutions53,498  37,230  52,637  68,069  73,937  231,873  
Imaging & Identification51,482  55,955  54,641  61,655  57,233  229,484  
Pumps & Process Solutions 1
66,079  14,991  76,278  77,433  71,379  240,081  
Refrigeration & Food Equipment 2
23,529  24,807  44,375  35,211  14,439  118,832  
Total segment earnings (EBIT)263,682  200,102  305,060  316,735  290,221  1,112,118  
Corporate expense / other 3
24,097  30,866  24,512  28,658  63,781  147,817  
Interest expense27,268  31,808  31,754  31,410  30,846  125,818  
Interest income(1,183) (890) (945) (1,263) (1,428) (4,526) 
Earnings before provision for income taxes213,500  138,318  249,739  257,930  197,022  843,009  
Provision for income taxes37,221  32,613  51,654  51,924  28,900  165,091  
Net earnings$176,279  $105,705  $198,085  $206,006  $168,122  $677,918  
SEGMENT MARGIN
Engineered Products16.9 %16.0 %17.9 %17.4 %17.4 %17.2 %
Fueling Solutions14.9 %10.0 %13.5 %16.5 %16.6 %14.3 %
Imaging & Identification20.1 %20.9 %20.5 %22.4 %20.9 %21.2 %
Pumps & Process Solutions 1
20.7 %4.5 %22.5 %22.7 %21.8 %17.9 %
Refrigeration & Food Equipment 2
7.5 %7.4 %11.5 %9.5 %4.7 %8.5 %
Total segment operating margin15.9 %11.6 %16.8 %17.4 %16.3 %15.6 %
DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products$10,122  $10,359  $10,452  $10,095  $10,126  $41,032  
Fueling Solutions18,339  17,879  18,945  18,744  19,477  75,045  
Imaging & Identification8,769  7,435  7,413  7,360  8,322  30,530  
Pumps & Process Solutions 18,336  17,548  16,201  16,018  17,817  67,584  
Refrigeration & Food Equipment11,548  13,011  12,777  13,047  12,525  51,360  
Corporate1,638  1,506  1,981  1,523  1,726  6,736  
Total depreciation and amortization expense$68,752  $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 2020 includes a $6,551 gain on the sale of the Chino, California branch of The AMS Group ("AMS Chino").
3 Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt.


IS - 2


DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)
Earnings Per Share
20202019
Q1Q1Q2Q3Q4FY 2019  
Net earnings per share:
Basic$1.22  $0.73  $1.36  $1.42  $1.16  $4.67  
Diluted$1.21  $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  $105,705  $198,085  $206,006  $168,122  $677,918  
Weighted average shares outstanding:
Basic144,259  145,087  145,366  145,372  144,966  145,198  
Diluted145,782  146,911  147,179  147,051  146,790  146,992  
* Per share data may be impacted by rounding.





















































IS - 3


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

Non-GAAP Reconciliations
20202019
Q1Q1Q2Q3Q4FY 2019  
Adjusted net earnings:
Net earnings$176,279  $105,705  $198,085  $206,006  $168,122  $677,918  
Acquisition-related amortization, pre-tax 1
34,062  35,635  34,997  34,244  33,460  138,336  
Acquisition-related amortization, tax impact 2
(8,411) (8,964) (8,777) (8,624) (8,403) (34,768) 
Rightsizing and other costs, pre-tax 3
7,859  3,963  6,457  3,807  17,926  32,153  
Rightsizing and other costs, tax impact 2
(1,605) (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 on disposition, pre-tax 6
(6,551) —  —  —  —  —  
Gain on disposition, tax-impact 2
1,592  —  —  —  —  —  
Adjusted net earnings
$203,225  $182,424  $229,385  $234,627  $225,740  $872,176  
Adjusted diluted net earnings per share:
Diluted net earnings per share$1.21  $0.72  $1.35  $1.40  $1.15  $4.61  
Acquisition-related amortization, pre-tax 1
0.23  0.24  0.24  0.23  0.23  0.94  
Acquisition-related amortization, tax impact 2
(0.06) (0.06) (0.06) (0.06) (0.06) (0.24) 
Rightsizing and other costs, pre-tax 3
0.05  0.03  0.04  0.03  0.12  0.22  
Rightsizing and other costs, tax impact 2
(0.01) (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 on disposition, pre-tax 6
(0.04) —  —  —  —  —  
Gain on disposition, tax-impact 2
0.01  —  —  —  —  —  
Adjusted diluted net earnings per share
$1.39  $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 associated asset charges.
4 Represents a loss on early extinguishment of €300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021.
5 Represents a loss on assets held for sale of Finder Pompe S.r.l. ("Finder"). Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business.
6 Represents a gain on the disposition of AMS Chino within the Refrigeration & Food Equipment segment.
* Per share data and totals may be impacted by rounding.

IS - 4


DOVER CORPORATION
QUARTERLY SEGMENT ADJUSTED EBIT AND ADJUSTED EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
20202019
Q1  Q1Q2Q3Q4FY 2019  
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)$69,094  $67,119  $77,129  $74,367  $73,233  $291,848  
Rightsizing and other costs361  80  1,125  590  1,355  3,150  
Adjusted EBIT - Segment69,455  67,199  78,254  74,957  74,588  294,998  
Adjusted EBIT %17.0 %16.0 %18.2 %17.6 %17.7 %17.4 %
Adjusted D&A 2
10,122  10,359  9,855  10,095  10,126  40,435  
Adjusted EBITDA - segment$79,577  $77,558  $88,109  $85,052  $84,714  $335,433  
Adjusted EBITDA %19.5 %18.5 %20.5 %19.9 %20.1 %19.8 %
Fueling Solutions:
Segment earnings (EBIT)$53,498  $37,230  $52,637  $68,069  $73,937  $231,873  
Rightsizing and other costs1,493  752  1,768  811  1,554  4,885  
Adjusted EBIT - Segment54,991  37,982  54,405  68,880  75,491  236,758  
Adjusted EBIT %15.3 %10.2 %13.9 %16.7 %17.0 %14.6 %
Adjusted D&A 2
18,339  17,879  18,945  18,744  19,477  75,045  
Adjusted EBITDA - segment$73,330  $55,861  $73,350  $87,624  $94,968  $311,803  
Adjusted EBITDA %20.4 %15.0 %18.8 %21.3 %21.4 %19.2 %
Imaging & Identification:
Segment earnings (EBIT)$51,482  $55,955  $54,641  $61,655  $57,233  $229,484  
Rightsizing and other costs264  389  1,268  301  4,392  6,350  
Adjusted EBIT - Segment51,746  56,344  55,909  61,956  61,625  235,834  
Adjusted EBIT %20.2 %21.0 %21.0 %22.5 %22.5 %21.7 %
Adjusted D&A 2
8,769  7,336  7,317  7,286  7,892  29,831  
Adjusted EBITDA - segment$60,515  $63,680  $63,226  $69,242  $69,517  $265,665  
Adjusted EBITDA %23.6 %23.7 %23.7 %25.2 %25.3 %24.5 %
Pumps & Process Solutions:
Segment earnings (EBIT)$66,079  $14,991  $76,278  $77,433  $71,379  $240,081  
Rightsizing and other costs3,846  414  903  943  3,868  6,128  
Loss on assets held for sale 1
—  46,946  —  —  —  46,946  
Adjusted EBIT - Segment69,925  62,351  77,181  78,376  75,247  293,155  
Adjusted EBIT %21.9 %18.9 %22.8 %23.0 %22.9 %21.9 %
Adjusted D&A 2
16,230  17,548  16,199  16,018  17,004  66,769  
Adjusted EBITDA - segment$86,155  $79,899  $93,380  $94,394  $92,251  $359,924  
Adjusted EBITDA %27.0 %24.2 %27.6 %27.7 %28.1 %26.9 %
Refrigeration & Food Equipment:
Segment earnings (EBIT)$23,529  $24,807  $44,375  $35,211  $14,439  $118,832  
Rightsizing and other costs704  2,293  666  840  2,243  6,042  
Gain on disposition 3
(6,551) —  —  —  —  —  
Adjusted EBIT - Segment17,682  27,100  45,041  36,051  16,682  124,874  
Adjusted EBIT %5.7 %8.1 %11.7 %9.7 %5.4 %8.9 %
Adjusted D&A 2
11,548  13,011  12,777  13,047  12,525  51,360  
Adjusted EBITDA - segment$29,230  $40,111  $57,818  $49,098  $29,207  $176,234  
Adjusted EBITDA %9.4 %12.0 %15.0 %13.3 %9.5 %12.6 %
Total Segments:
Segment earnings (EBIT) 4
$263,682  $200,102  $305,060  $316,735  $290,221  $1,112,118  
Rightsizing and other costs6,668  3,928  5,730  3,485  13,412  26,555  
Loss on assets held for sale 1
—  46,946  —  —  —  46,946  
Gain on disposition 3
(6,551) —  —  —  —  —  
Adjusted EBIT - Segment 5
263,799  250,976  310,790  320,220  303,633  1,185,619  
Adjusted EBIT % 4
15.9 %14.5 %17.2 %17.5 %17.1 %16.6 %
Adjusted D&A 2
65,008  66,133  65,093  65,190  67,024  263,440  
Adjusted EBITDA - segment 5
$328,807  $317,109  $375,883  $385,410  $370,657  $1,449,059  
Adjusted EBITDA % 5
19.9 %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 2020 includes a $6,551 gain on sale of a business for AMS Chino.
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.

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DOVER CORPORATION
REVENUE GROWTH FACTORS (NON-GAAP)
(unaudited)(in thousands, except per share data*)

Non-GAAP Reconciliations

Revenue Growth Factors
2020
Q1
Organic
Engineered Products(1.9)%
Fueling Solutions(2.6)%
Imaging & Identification(4.3)%
Pumps & Process Solutions(1.1)%
Refrigeration & Food Equipment(4.3)%
Total Organic(2.7)%
Acquisitions0.8 %
Dispositions(0.7)%
Currency translation(1.4)%
Total*(4.0)%
* Totals may be impacted by rounding.

2020
Q1
Organic
United States3.5 %
Other Americas(4.7)%
Europe(7.4)%
Asia (19.2)%
Other(8.8)%
Total Organic(2.7)%
Acquisitions0.8 %
Dispositions(0.7)%
Currency translation(1.4)%
Total*(4.0)%
* Totals may be impacted by rounding.


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

Quarterly Cash Flow
20202019
Q1Q1Q2Q3Q4FY 2019  
Net Cash Flows Provided By (Used In):
Operating activities$75,863  $24,524  $208,709  $350,865  $361,208  $945,306  
Investing activities(230,511) (217,690) (69,755) (48,612) (48,198) (384,255) 
Financing activities280,954  36,067  (60,596) (277,901) (255,612) (558,042) 

Quarterly Free Cash Flow (Non-GAAP)
20202019
Q1Q1Q2Q3Q4FY 2019  
Cash flow from operating activities$75,863  $24,524  $208,709  $350,865  $361,208  $945,306  
Less: Capital expenditures(40,172) (37,122) (53,970) (46,184) (49,528) (186,804) 
Free cash flow$35,691  $(12,598) $154,739  $304,681  $311,680  $758,502  
Free cash flow as a percentage of revenue2.2 %(0.7)%8.5 %16.7 %17.6 %10.6 %
Free cash flow as a percentage of net earnings20.2 %(11.9)%78.1 %147.9 %185.4 %111.9 %


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DOVER CORPORATION
PERFORMANCE MEASURES
(unaudited)(in thousands)
20202019
Q1  Q1Q2Q3Q4FY 2019  
BOOKINGS
Engineered Products$414,972  $427,697  $397,420  $426,059  $457,145  $1,708,321  
Fueling Solutions373,070  343,083  394,256  450,727  425,698  1,613,764  
Imaging & Identification272,604  267,762  264,175  284,527  276,451  1,092,915  
Pumps & Process Solutions369,403  369,801  375,905  329,642  318,482  1,393,830  
Refrigeration & Food Equipment355,157  376,998  384,365  323,422  361,970  1,446,755  
Intra-segment eliminations(375) (725) (490) (528) 872  (871) 
Total consolidated bookings$1,784,831  $1,784,616  $1,815,631  $1,813,849  $1,840,618  $7,254,714  
BACKLOG
Engineered Products$453,867  $451,335  $418,154  $416,025  $452,142  
Fueling Solutions211,518  185,847  186,202  223,081  205,842  
Imaging & Identification170,119  118,177  116,810  121,877  125,775  
Pumps & Process Solutions397,969  353,066  378,427  361,478  353,073  
Refrigeration & Food Equipment356,133  311,632  310,454  262,870  320,577  
Intra-segment eliminations(159) (403) (141) (252) (249) 
Total consolidated backlog$1,589,447  $1,419,654  $1,409,906  $1,385,079  $1,457,160  
Bookings Growth Factors
2020
Q1
Organic
Engineered Products(2.3)%
Fueling Solutions9.5 %
Imaging & Identification0.3 %
Pumps & Process Solutions2.2 %
Refrigeration & Food Equipment(4.2)%
Total Organic0.9 %
Acquisitions1.0 %
Dispositions(0.7)%
Currency translation(1.2)%
Total*— %
* Totals may be impacted by rounding.

COVID-19

On March 11, 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. The COVID-19 outbreak and associated counter-acting measures implemented by governments around the world, as well as increased business uncertainty, are having an adverse impact on our financial results. Refer to our Quarterly Report on Form 10-Q filed with the SEC on April 21, 2020 for additional discussion.


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Non-GAAP Measures Definitions

In an effort to provide investors with additional information regarding our results as determined by GAAP, Management also discloses non-GAAP information that Management believes provides useful information to investors. Adjusted net earnings, adjusted diluted net earnings per share, total segment earnings (EBIT), adjusted EBIT by segment, adjusted EBIT margin by segment, adjusted EBITDA by segment, adjusted EBITDA margin by segment, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of net earnings, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for net earnings, diluted net earnings per share, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies. 

Adjusted net earnings represents net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs, loss on extinguishment of debt, loss on assets held for sale, and a gain 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 on disposition. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.

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

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

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

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


Performance Measures Definitions

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

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

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

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