CHICAGO, March 6, 2013 /PRNewswire/ --
Fourth Quarter Highlights (Continuing
Operations):
- Record fourth quarter revenue of $293 million, operating income of $29 million, and diluted earnings per share from
continuing operations of $0.64
- Inbound orders of $232
million and backlog of $283
million, a year-over-year increase of 12 percent and 15
percent, respectively
- Repurchased nearly $4
million of common stock
Full Year 2012 Highlights (Continuing
Operations):
- JBT FoodTech segment operating profit margin of almost 10
percent, up 190 basis points year-over-year
- Record JBT AeroTech segment operating profit margin of
over 9 percent, up 50 basis points year-over-year
- Diluted earnings per share from continuing operations of
$1.26
- Record cash flow from operating activities of
$87 million, resulting in debt, net
of cash, of $92 million at
year-end
- Replaced existing revolving credit facility with a new
$300 million, 5-year
facility
JBT Corporation (NYSE: JBT), a leading global technology
solutions provider to the food processing and air transportation
industries, today reported fourth quarter and full year 2012
results.
Revenue for the fourth quarter was a record high of $293 million, an increase of 8 percent from the
prior-year quarter. This increase was largely driven by
record fourth quarter revenue in JBT FoodTech. Gross profit
margin of 26 percent expanded 150 basis points, resulting primarily
from margin improvement initiatives executed earlier in the
year. The gross profit margin expansion in turn drove record
operating income of $28.8 million,
compared to $12.2 million operating
income, net of $10.3 million in
restructuring charges, in the prior-year period. Fourth
quarter 2012 diluted earnings per share from continuing operations
was $0.64, also a record high.
This compares to fourth quarter 2011 diluted earnings per share
from continuing operations of $0.25,
net of $0.23 per diluted share in
restructuring charges. Fourth quarter inbound orders of
$232.2 million and backlog of
$283.1 million increased 12 percent
and 15 percent, respectively, over the same period last year.
Year-end backlog was up 24 percent from the prior-year level
after excluding $17.5 million of
backlog associated with two contracts with the U.S. Air Force that
had been cancelled, as discussed in the Company's third quarter
2012 earnings call.
Full year 2012 revenue of $917.3
million decreased 4 percent year-over-year. An
increase in sales of aftermarket parts and services across both
segments was more than offset by lower equipment sales, primarily
in AeroTech, and unfavorable foreign currency translation
impact. Despite the lower revenue, consolidated gross profit
margin expanded 60 basis points to 25 percent, a result of
favorable mix and margin improvement initiatives executed during
the year. The gross margin expansion also drove a 12 percent
increase in total segment operating profit to $87.5 million. Consolidated operating
income was $60.9 million, compared to
operating income of $53.2 million,
net of $11.6 million in restructuring
charges, in the prior-year period. The lower relative
operating income was largely a result of unfavorable corporate
items. Full year 2012 diluted earnings per share from
continuing operations was $1.26,
within the Company's previously announced guidance range of
$1.22 to $1.28. Full year cash
generated by continuing operating activities was a record high of
$86.6 million.
"We finished strong in 2012. Activity levels picked up
around the world as the year progressed and we closed the year with
a record fourth quarter," said Charlie
Cannon, Chairman and Chief Executive Officer. "In 2012
we also made good progress on our 4G value creation
strategies. We launched new products, completed a technology
acquisition, grew our aftermarket revenue, opened a new plant in
China to serve regional markets,
and improved segment margins significantly over 2011's results,"
continued Cannon. "We started 2013 with higher backlog
relative to last year's and current order activity remains
strong. However, a majority of our current backlog is
scheduled for delivery after the first quarter. We anticipate
a normal seasonally weak first quarter and earnings pickup in
subsequent quarters in line with our historical seasonality
trends."
JBT FoodTech
JBT FoodTech's fourth quarter revenue of $177.6 million and operating profit of
$23.4 million were both record highs,
representing increases of 17 percent and 63 percent, respectively,
from the same period in 2011. Record fourth quarter sales of
freezing, in-container, and fruit and juice processing equipment
drove the increase in FoodTech revenue. Recurring revenue
streams also continued to be strong. In addition to the
volume increase, gains from margin improvement initiatives drove
the year-over-year increase in operating profit and operating
profit margin. FoodTech fourth quarter operating profit
margin expanded 370 basis points to 13 percent. Inbound
orders in the fourth quarter of $152.3
million increased 24 percent from the same period last year,
primarily driven by demand for in-container processing, freezing
and protein processing equipment. Backlog of $147.8 million increased 50 percent from the
fourth quarter of 2011.
JBT AeroTech
JBT AeroTech's fourth quarter revenue of $114.5 million decreased 4 percent from the
prior-year quarter. Higher revenue from ground support
equipment and military loader sales was more than offset by lower
revenue from gate equipment projects as a large multi-year mobile
air-conditioning equipment order for the U.S. military was
completed earlier in 2012. Despite the overall lower volume
in the quarter, segment operating profit margin expanded 140 basis
points to a record high of 11 percent. Improved sales mix
between product lines and lower operating costs largely drove the
operating profit margin improvement. Inbound orders in the
fourth quarter of $79 million
decreased 6 percent from the prior-year quarter. Strong order
activity in ground support equipment was more than offset by lower
activity in gate equipment. Backlog of $135.3 million was lower than in the prior-year
period by $12 million. The
unfavorable comparison, however, is driven by the removal of
$17.5 million of backlog associated
with two contracts with the U.S. Air Force. There were no
deliveries on these contracts in either 2012 or 2011.
Corporate Items
Corporate items in the fourth quarter decreased by $6.3 million year-over-year largely because
$10.3 million in restructuring
charges from the prior-year period did not recur. For the
full year, corporate items were higher by $13.6 million, after excluding $11.6 million in restructuring charges. The
increase was largely a result of $6.1
million in higher compensation and pension expenses,
including the impact of lower discount rates utilized to determine
U.S. pension costs, and $5.2 million
in lower mark-to-market gains on foreign currency
transactions.
In the fourth quarter, the Company repurchased $3.6 million of its common stock. The
Company also replaced the existing $225
million revolving credit facility with a new $300 million, 5-year facility. The new
credit facility has more favorable terms and less restrictive
covenants relative to the prior credit facility. Borrowings
under the credit facility may be used for general corporate
purposes, including working capital and acquisitions.
Full year cash generated by continuing operating activities was
a record high of $86.6 million, which
included the funding of $14.6 million
to the Company's pension and other postretirement plans in 2012 and
$8.6 million in payments made in
conjunction with the 2011 restructuring plan. The strong cash
flow is primarily attributable to higher earnings, faster turnover
in inventories, and higher advanced payments during 2012 than
during 2011. The cash flow in turn resulted in a record low
level of debt, net of cash, of $92.1
million at year-end.
Full year income tax expense for 2012 reflects an income tax
rate of 31 percent. In the fourth quarter, the Company
recognized $1.3 million in tax
benefits due to enacted changes in Sweden's corporate income tax rate.
Extension of the U.S. research and development tax credit and the
adoption of lower tax rates in certain international jurisdictions
are expected to benefit the Company's 2013 effective tax rate.
Full year capital expenditures totaled $24.7 million. The increase of $3.9 million from the prior year was largely due
to the installation of leased juice extractors during
2012.
4G Value Creation Strategy Update
During 2012, the Company made good progress in its 4G value
creation strategy initiatives across both its FoodTech and AeroTech
segments. Following are some highlights:
Grow our technology advantage: FoodTech
successfully launched a next-generation freezer belt line and
completed the acquisition of rotary sterilization technology from
H.G. Molenaar & Co. (Pty) Ltd.,
expanding JBT's presence in sterilization technologies.
AeroTech introduced several new mobile aviation support equipment
products within its gate equipment business.
Grow beyond the sale: Since its introduction in
2011, FoodTech's PRoCARE™ service agreement program has rapidly
grown to become a significant contributor to the segment's
recurring revenue stream. AeroTech further expanded its
Refurbishment Medals Program by signing on a major freight carrier
customer.
Grow where the world is growing fastest: JBT's new
facility in Kunshan, China, was
launched in the fourth quarter to support growth in regional
markets in both FoodTech and AeroTech. Orders in China for FoodTech's new freezer line, with
features tailored to developing markets, exceeded expectations.
Grow value and margins: Margin improvement
initiatives in FoodTech and AeroTech delivered the expected margin
improvements in 2012, with further progress anticipated in
2013.
Fourth Quarter Earnings Conference Call
A conference call is scheduled for 10:00
a.m. EST on Thursday, March 7,
2013 to discuss the fourth quarter results.
Participants may access the conference call by dialing (877)
235-3250 or (706) 643-5005 and using conference ID# 99762255, or
through the Investor Relations link on JBT Corporation's website at
http://ir.jbtcorporation.com. An online audio replay of the
call will be available on the Company's Investor Relations website
at approximately 1:30 p.m. EST on
March 7, 2013.
JBT Corporation (NYSE: JBT) is a leading global technology
solutions provider to the food processing and air transportation
industries. JBT Corporation designs, manufactures, tests and
services technologically sophisticated systems and products for
regional and multi-national industrial food processing customers
through its JBT FoodTech segment and for domestic and international
air transportation customers through its JBT AeroTech
segment. JBT Corporation employs approximately 3,200 people
worldwide and operates sales, service, manufacturing and sourcing
operations located in over 25 countries. For more
information, please visit
www.jbtcorporation.com.
This release contains forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are information of a non-historical
nature and are subject to risks and uncertainties that are beyond
the Company's ability to control. These risks and
uncertainties are described under the caption "Risk Factors" in the
Company's 2011 Annual Report on Form 10-K filed by the Company with
the Securities and Exchange Commission that may be accessed on the
Company's website. The Company cautions shareholders and
prospective investors that actual results may differ materially
from those indicated by the forward-looking statements.
JBT
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Twelve
Months Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
292.9
|
$
|
271.5
|
|
$
|
917.3
|
$
|
955.8
|
Cost of
sales
|
|
218.2
|
|
206.4
|
|
|
686.5
|
|
721.2
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
74.7
|
|
65.1
|
|
|
230.8
|
|
234.6
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense
|
|
42.0
|
|
39.6
|
|
|
156.6
|
|
152.9
|
Research
and development expense
|
|
3.8
|
|
4.2
|
|
|
14.3
|
|
18.5
|
Restructuring expense
|
|
0.4
|
|
10.3
|
|
|
0.1
|
|
11.6
|
Other
expense (income), net
|
|
(0.3)
|
|
(1.2)
|
|
|
(1.1)
|
|
(1.6)
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
28.8
|
|
12.2
|
|
|
60.9
|
|
53.2
|
|
|
|
|
|
|
|
|
|
|
Net
interest expense
|
|
(1.7)
|
|
(1.5)
|
|
|
(6.9)
|
|
(6.4)
|
Income
from continuing operations before income taxes
|
|
27.1
|
|
10.7
|
|
|
54.0
|
|
46.8
|
Provision
for income taxes
|
|
8.1
|
|
3.3
|
|
|
16.9
|
|
16.0
|
Income
from continuing operations
|
|
19.0
|
|
7.4
|
|
|
37.1
|
|
30.8
|
Loss from
discontinued operations, net of taxes
|
|
(0.5)
|
|
(0.2)
|
|
|
(0.9)
|
|
(0.3)
|
Net income
|
$
|
18.5
|
$
|
7.2
|
|
$
|
36.2
|
$
|
30.5
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.65
|
$
|
0.26
|
|
$
|
1.27
|
$
|
1.07
|
Loss from discontinued operations
|
|
(0.01)
|
|
(0.01)
|
|
|
(0.03)
|
|
(0.01)
|
Net income
|
$
|
0.64
|
$
|
0.25
|
|
$
|
1.24
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.64
|
$
|
0.25
|
|
$
|
1.26
|
$
|
1.05
|
Loss from discontinued operations
|
|
(0.01)
|
|
-
|
|
|
(0.03)
|
|
(0.01)
|
Net income
|
$
|
0.63
|
$
|
0.25
|
|
$
|
1.23
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
29.1
|
|
28.8
|
|
|
29.1
|
|
28.8
|
Diluted
|
|
29.6
|
|
29.4
|
|
|
29.5
|
|
29.3
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BUSINESS SEGMENT DATA
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Twelve
Months Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
177.6
|
$
|
151.9
|
|
$
|
548.5
|
$
|
542.6
|
JBT
AeroTech
|
|
114.5
|
|
119.2
|
|
|
366.0
|
|
407.4
|
Other
revenue (1) and intercompany eliminations
|
|
0.8
|
|
0.4
|
|
|
2.8
|
|
5.8
|
Total
revenue
|
$
|
292.9
|
$
|
271.5
|
|
$
|
917.3
|
$
|
955.8
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
operating profit
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
23.4
|
$
|
14.4
|
|
$
|
53.2
|
$
|
42.3
|
JBT
AeroTech
|
|
13.1
|
|
12.0
|
|
|
34.3
|
|
36.0
|
Total
segment operating profit
|
|
36.5
|
|
26.4
|
|
|
87.5
|
|
78.3
|
|
|
|
|
|
|
|
|
|
|
Corporate
items
|
|
|
|
|
|
|
|
|
|
Corporate
expense
|
|
(6.1)
|
|
(4.7)
|
|
|
(18.4)
|
|
(16.9)
|
Other
(expense) income, net (2)
|
|
(1.6)
|
|
(9.5)
|
|
|
(8.2)
|
|
(8.2)
|
Net
interest expense
|
|
(1.7)
|
|
(1.5)
|
|
|
(6.9)
|
|
(6.4)
|
Total
corporate items
|
|
(9.4)
|
|
(15.7)
|
|
|
(33.5)
|
|
(31.5)
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income taxes
|
$
|
27.1
|
$
|
10.7
|
|
$
|
54.0
|
$
|
46.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
revenue comprises certain gains and losses on derivatives related
to foreign exchange exposure.
|
|
(2) Other
(expense) income, net, generally includes stock-based compensation,
other employee benefits, LIFO adjustments, restructuring costs,
foreign exchange gains and losses, and the impact of unusual or
strategic transactions not representative of segment
operations. Restructuring costs included in other (expense)
income, net were:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Twelve
Months Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
0.2
|
$
|
10.3
|
|
$
|
0.2
|
$
|
11.6
|
JBT
AeroTech
|
|
0.2
|
|
-
|
|
|
(0.1)
|
|
-
|
Total
|
$
|
0.4
|
$
|
10.3
|
|
$
|
0.1
|
$
|
11.6
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BUSINESS SEGMENT DATA
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Twelve
Months Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
Inbound
Orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
152.3
|
$
|
122.8
|
|
$
|
597.8
|
$
|
537.7
|
JBT
AeroTech
|
|
79.0
|
|
83.7
|
|
|
371.3
|
|
371.5
|
Other and
intercompany eliminations
|
|
0.8
|
|
0.4
|
|
|
2.8
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
Total
inbound orders
|
$
|
232.1
|
$
|
206.9
|
|
$
|
971.9
|
$
|
915.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Order
Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
147.8
|
$
|
98.5
|
|
|
|
|
|
JBT
AeroTech
|
|
135.3
|
|
147.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
order backlog
|
$
|
283.1
|
$
|
246.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
99.0
|
$
|
9.0
|
Trade
receivables, net
|
|
188.4
|
|
189.4
|
Inventories
|
|
109.2
|
|
122.3
|
Other
current assets
|
|
54.5
|
|
50.2
|
Total current
assets
|
|
451.1
|
|
370.9
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
126.2
|
|
124.7
|
Other
assets
|
|
100.7
|
|
96.6
|
Total
assets
|
$
|
678.0
|
$
|
592.2
|
|
|
|
|
|
|
|
|
|
|
Short term
debt and current portion of long-term debt
|
$
|
2.0
|
$
|
4.4
|
Accounts
payable, trade and other
|
|
88.7
|
|
82.5
|
Advance
payments and progress billings
|
|
74.3
|
|
57.4
|
Other
current liabilities
|
|
85.8
|
|
95.4
|
Total current
liabilities
|
|
250.8
|
|
239.7
|
|
|
|
|
|
Long-term
debt, less current portion
|
|
189.1
|
|
135.7
|
Accrued
pension and other postretirement benefits, less
current portion
|
|
104.6
|
|
109.2
|
Other
liabilities
|
|
27.9
|
|
27.8
|
Common
stock, paid-in capital and retained earnings
|
|
186.6
|
|
156.5
|
Accumulated other comprehensive loss
|
|
(81.0)
|
|
(76.7)
|
Total stockholders'
equity
|
|
105.6
|
|
79.8
|
Total
liabilities and stockholders' equity
|
$
|
678.0
|
$
|
592.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash
Flows From Operating Activities:
|
|
|
|
|
Income from continuing
operations
|
$
|
37.1
|
$
|
30.8
|
|
|
|
|
|
Adjustments to reconcile income to cash provided
by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
23.6
|
|
24.1
|
Other
|
|
15.4
|
|
10.0
|
|
|
|
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Trade accounts receivable,
net
|
|
2.3
|
|
0.2
|
Inventories
|
|
14.6
|
|
(19.8)
|
Accounts payable, trade and
other
|
|
5.2
|
|
(2.0)
|
Advance payments and
progress billings
|
|
15.8
|
|
7.4
|
Other - assets and
liabilities
|
|
(27.4)
|
|
(13.7)
|
|
|
|
|
|
Cash
provided by continuing operating activities
|
|
86.6
|
|
37.0
|
|
|
|
|
|
Cash
required by discontinued operating activities
|
|
(0.6)
|
|
(0.6)
|
|
|
|
|
|
Cash
Flows From Investing Activities:
|
|
|
|
|
Acquisitions
|
|
(10.0)
|
|
-
|
Capital
expenditures
|
|
(24.7)
|
|
(20.8)
|
Other
|
|
2.1
|
|
(0.6)
|
|
|
|
|
|
Cash
required by continuing investing activities
|
|
(32.6)
|
|
(21.4)
|
|
|
|
|
|
Cash
Flows From Financing Activities:
|
|
|
|
|
Net proceeds (payments) on
credit facilities
|
|
51.2
|
|
(6.8)
|
Dividends paid
|
|
(8.5)
|
|
(8.4)
|
Purchase of stock held in
treasury
|
|
(3.6)
|
|
(0.3)
|
Other
|
|
(3.0)
|
|
(3.0)
|
|
|
|
|
|
Cash
provided (required) by financing activities
|
|
36.1
|
|
(18.5)
|
|
|
|
|
|
Effect of
foreign exchange rate changes on cash and cash
equivalents
|
|
0.5
|
|
(1.2)
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
90.0
|
|
(4.7)
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period
|
|
9.0
|
|
13.7
|
|
|
|
|
|
Cash and
cash equivalents, end of period
|
$
|
99.0
|
$
|
9.0
|
|
|
|
|
|
|
|
|
|
|
SOURCE JBT Corporation