CHICAGO, May 7, 2013 /PRNewswire/ --
Highlights (Continuing Operations):
- Gross profit margin expansion of approximately 250 basis
points
- Diluted earnings per share from continuing operations of
$0.14, flat relative to prior
year
- Record low level of debt, net of cash, of $87 million, an improvement of $6 million from 2012 year-end
- Backlog of $330 million, up
18 percent from prior year level, off record FoodTech backlog of
$200 million, up 55 percent year over
year
- Full year 2013 diluted earnings per share estimated to be
in the range of $1.38 -
$1.52
JBT Corporation (NYSE: JBT), a leading global technology
solutions provider to the food processing and air transportation
industries, today reported first quarter 2013
results.
Revenue for the first quarter was $185.7
million, down 9 percent compared to the same period last
year due to lower sales across both JBT FoodTech and JBT AeroTech.
Despite the lower revenue, gross profit margin expanded
approximately 250 basis points, driven largely by margin
improvement in FoodTech. Operating income of $6.6 million was lower than the prior year period
due to a combination of lower sales and higher corporate items in
the quarter. First quarter diluted earnings per share from
continuing operations was $0.14, flat
relative to the prior year period. Debt, net of cash, was
$86.5 million at quarter end, an
improvement of $5.6 million from
$92.1 million at December 31, 2012. First quarter backlog of
$329.5 million was up 18 percent from
the prior year level. Excluding two contracts with the U.S. Air
Force totaling $17.5 million that
were cancelled later in 2012, as discussed in the Company's third
quarter 2012 earnings call, backlog was up 26 percent.
"As expected, we experienced our typical seasonally weak first
quarter. However, we are extremely pleased with our backlog
at the end of the quarter, which positions us well for the year
ahead," said Charlie Cannon,
Chairman and Chief Executive Officer. "Bolstered by a record
backlog in FoodTech and expected pickup in order activity in
AeroTech, we anticipate higher revenue in subsequent
quarters. In addition, with results achieved from ongoing
margin improvement initiatives, we estimate full year 2013 diluted
earnings per share from continuing operations to be in the range of
$1.38 to $1.52," concluded
Cannon.
JBT FoodTech
JBT FoodTech's first quarter revenue of $104.8 million decreased 10 percent, or
$11.5 million, from the same period
in 2012. New equipment sales decreased by approximately
$5 million, largely attributable to a
delivery schedule shift for an in-container sterilization equipment
order, and lower freezing and protein processing equipment sales in
the quarter. Aftermarket revenue declined approximately
$6 million, primarily driven by a
temporary drop in spending on freezing and protein processing
equipment parts and service. Despite the lower sales in the
first quarter, segment operating profit margin increased
approximately 160 basis points year over year. This increase
was predominantly a result of margin improvement initiatives,
including significant margin improvement on higher capacity
freezers manufactured in North America. Several large orders
received for freezing, protein, and sterilization equipment over
the last two quarters, as reported in Company press releases,
contributed to the record high FoodTech backlog at
quarter-end. Backlog of $200.1
million increased 35 percent sequentially and 55 percent
year over year. These orders carry generally longer
lead times and support projections for revenue growth in subsequent
quarters.
JBT AeroTech
JBT AeroTech's first quarter revenue of $77.9 million declined 9 percent from the same
period in 2012. Higher passenger boarding bridge and ground
support equipment sales were more than offset by lower automated
systems and military loader equipment sales in the quarter.
The lower sales in turn drove a decline in segment operating profit
margin. First quarter inbound orders of $72.0 million declined 19 percent from the prior
year period, a result of timing of gate equipment orders and lower
order activity for military loaders. The Company anticipates
a significant buildup in gate equipment orders in the second
quarter. However, the ongoing implementation of sequestration
measures by the U.S. government may continue to delay some military
loader equipment orders. Backlog of $129.4 million at quarter-end was lower than the
prior year by $20.9 million.
The unfavorable comparison was, however, largely due to the removal
of $17.5 million of backlog
associated with two contracts with the U.S. Air Force.
Corporate Items
Corporate items in the first quarter were $6.9 million, an increase of $1.1 million from the prior year period.
The unfavorable comparison was driven by approximately $0.5 million in higher incentive-based
compensation and pension costs. In addition, there was a
release of a restructuring reserve of $0.3
million in the first quarter of 2012. For the full
year, the Company expects corporate items, excluding net interest
expense, to range between $28 to $30
million.
Cash generated by operating activities was $17.9 million, which included the funding of
$4 million to the Company's U.S.
pension plan. Strong collection of receivables and an
increase in advance payments drove debt, net of cash, to a record
low of $86.5 million. Capital
expenditures for the quarter totaled $8.3
million, with the year over year increase largely
attributable to the upgrading and expansion of the Company's
installed base of leased equipment.
Income tax expense in the first quarter of 2013 reflected a
full-year estimated effective income tax rate of 33.5
percent. In the first quarter, the Company recognized
$0.7 million in discrete tax benefits
primarily due to the extension of the U.S. research and development
tax credit.
2013 Outlook
Bolstered by a record backlog at the end of the first quarter,
FoodTech is expected to achieve mid-to-high single digit percentage
revenue growth in 2013, with revenue and earnings back-half
loaded. AeroTech is projected to achieve mid-single digit
percentage revenue growth in 2013, supported by an anticipated
order buildup starting in the second quarter. The Company
projects its second quarter diluted earnings per share from
continuing operations to be roughly in line with the prior
year. Looking further into 2013, in addition to the volume
increase, the Company expects further margin expansion resulting
from continued execution of margin improvement initiatives.
While additional revenue opportunities may materialize across
select businesses, challenging market conditions in Europe and Middle
East and the potential impact of sequestration measures on
some military loader sales, represent headwinds to our
projection. Consequently, the Company projects its 2013
diluted earnings per share from continuing operations to be in the
range of $1.38 - $1.52. The
Company will provide further market updates during its scheduled
first quarter earnings conference call.
First Quarter Earnings Conference Call
The Company will hold a conference call at 10:00 AM EDT on Wednesday,
May 8, 2013 to discuss the first quarter 2013 results.
The call can be accessed live by dialing (877) 235-3250 or (706)
643-5005 and using conference ID 41494232, 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
beginning at approximately 1:30 PM
EDT on May 8, 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 or
www.jbtfoodtech.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 Annual
Report on Form 10-K filed with the Securities and Exchange
Commission, which 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.
FINANCIAL TABLES FOLLOW
JBT
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
Revenue
|
$
|
185.7
|
$
|
204.7
|
Cost of
sales
|
|
135.4
|
|
154.3
|
|
|
|
|
|
|
Gross profit
|
|
50.3
|
|
50.4
|
|
|
|
|
|
|
Selling,
general and administrative expense
|
|
40.9
|
|
39.0
|
Research
and development expense
|
|
3.2
|
|
3.9
|
Other
income, net
|
|
(0.4)
|
|
(0.3)
|
|
|
|
|
|
|
Operating income
|
|
6.6
|
|
7.8
|
|
|
|
|
|
|
Net
interest expense
|
|
(1.4)
|
|
(1.6)
|
Income
from continuing operations before income taxes
|
5.2
|
|
6.2
|
|
Provision
for income taxes
|
|
1.1
|
|
2.2
|
Income
from continuing operations
|
|
4.1
|
|
4.0
|
Loss from
discontinued operations, net of taxes
|
|
-
|
|
(0.1)
|
Net income
|
$
|
4.1
|
$
|
3.9
|
|
|
|
|
|
|
Basic
earnings per share:
|
|
|
|
|
Income from continuing operations
|
$
|
0.14
|
$
|
0.14
|
Loss from discontinued operations
|
|
-
|
|
(0.01)
|
Net income
|
$
|
0.14
|
$
|
0.13
|
|
|
|
|
|
|
Diluted
earnings per share:
|
|
|
|
|
Income from continuing operations
|
$
|
0.14
|
$
|
0.14
|
Loss from discontinued operations
|
|
-
|
|
(0.01)
|
Net income
|
$
|
0.14
|
$
|
0.13
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
Basic
|
|
29.2
|
|
29.1
|
Diluted
|
|
29.5
|
|
29.4
|
JBT
CORPORATION
|
BUSINESS SEGMENT DATA
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
Revenue
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
104.8
|
$
|
116.3
|
JBT
AeroTech
|
|
77.9
|
|
85.8
|
Other
revenue (1) and intercompany eliminations
|
|
3.0
|
|
2.6
|
Total
revenue
|
$
|
185.7
|
$
|
204.7
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
|
|
|
|
Segment
operating profit
|
|
|
|
|
JBT
FoodTech
|
$
|
7.7
|
$
|
6.7
|
JBT
AeroTech
|
|
4.4
|
|
5.3
|
Total
segment operating profit
|
|
12.1
|
|
12.0
|
|
|
|
|
|
Corporate
items
|
|
|
|
|
Corporate
expense
|
|
(4.5)
|
|
(4.0)
|
Other
expense, net (2)
|
|
(1.0)
|
|
(0.2)
|
Net
interest expense
|
|
(1.4)
|
|
(1.6)
|
Total
corporate items
|
|
(6.9)
|
|
(5.8)
|
|
|
|
|
|
Income
from continuing operations before income taxes
|
$
|
5.2
|
$
|
6.2
|
|
|
|
|
|
|
|
|
|
|
(1) Other
revenue comprises certain gains and losses related to foreign
exchange exposure.
|
|
(2) Other
expense, 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. Other
expense, net includes a release of $0.3 million of restructuring
reserves in 2012 related to JBT AeroTech.
|
JBT
CORPORATION
|
BUSINESS SEGMENT DATA
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
Inbound
Orders
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
157.1
|
$
|
146.9
|
JBT
AeroTech
|
|
72.0
|
|
88.6
|
Other and
intercompany eliminations
|
|
3.0
|
|
2.6
|
|
|
|
|
|
Total
inbound orders
|
$
|
232.1
|
$
|
238.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
Order
Backlog
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
200.1
|
$
|
129.1
|
JBT
AeroTech
|
|
129.4
|
|
150.3
|
|
|
|
|
|
Total
order backlog
|
$
|
329.5
|
$
|
279.4
|
JBT
CORPORATION
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
15.3
|
$
|
99.0
|
Trade
receivables, net
|
|
149.6
|
|
188.4
|
Inventories
|
|
132.3
|
|
109.2
|
Other
current assets
|
|
60.1
|
|
54.5
|
Total current
assets
|
|
357.3
|
|
451.1
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
127.5
|
|
126.2
|
Other
assets
|
|
97.3
|
|
100.7
|
Total
assets
|
$
|
582.1
|
$
|
678.0
|
|
|
|
|
|
|
|
|
|
|
Short term
debt and current portion of long-term debt
|
$
|
4.0
|
$
|
2.0
|
Accounts
payable, trade and other
|
|
73.7
|
|
88.7
|
Advance
payments and progress billings
|
|
100.8
|
|
74.3
|
Other
current liabilities
|
|
72.2
|
|
85.8
|
Total current
liabilities
|
|
250.7
|
|
250.8
|
|
|
|
|
|
Long-term
debt, less current portion
|
|
97.8
|
|
189.1
|
Accrued
pension and other postretirement benefits,
|
|
|
|
|
less current
portion
|
|
98.9
|
|
104.6
|
Other
liabilities
|
|
28.8
|
|
27.9
|
Common
stock, paid-in capital and retained earnings
|
|
188.2
|
|
186.6
|
Accumulated other comprehensive loss
|
|
(82.3)
|
|
(81.0)
|
Total stockholders'
equity
|
|
105.9
|
|
105.6
|
Total
liabilities and stockholders' equity
|
$
|
582.1
|
$
|
678.0
|
JBT
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Cash
Flows From Operating Activities:
|
|
|
|
|
Income from continuing
operations
|
$
|
4.1
|
$
|
4.0
|
|
|
|
|
|
Adjustments to reconcile income to cash provided
by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
6.1
|
|
5.9
|
Other
|
|
(1.7)
|
|
(0.5)
|
|
|
|
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Trade accounts receivable,
net
|
|
37.8
|
|
35.5
|
Inventories
|
|
(24.8)
|
|
(8.4)
|
Accounts payable, trade and
other
|
|
(13.5)
|
|
(9.9)
|
Advance payments and
progress billings
|
|
27.2
|
|
6.0
|
Other - assets and
liabilities
|
|
(17.3)
|
|
(16.5)
|
|
|
|
|
|
Cash
provided by continuing operating activities
|
|
17.9
|
|
16.1
|
|
|
|
|
|
Cash
required by discontinued operating activities
|
|
(0.1)
|
|
(0.2)
|
|
|
|
|
|
Cash
Flows From Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(8.3)
|
|
(5.2)
|
Other
|
|
0.3
|
|
0.5
|
|
|
|
|
|
Cash
required by continuing investing activities
|
|
(8.0)
|
|
(4.7)
|
|
|
|
|
|
Cash
Flows From Financing Activities:
|
|
|
|
|
Net (payments) proceeds on
credit facilities
|
|
(89.1)
|
|
2.6
|
Dividends paid
|
|
(2.3)
|
|
(2.4)
|
Other
|
|
(2.2)
|
|
(1.5)
|
|
|
|
|
|
Cash
required by financing activities
|
|
(93.6)
|
|
(1.3)
|
|
|
|
|
|
Effect of
foreign exchange rate changes on cash and cash
equivalents
|
|
0.1
|
|
0.2
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
|
(83.7)
|
|
10.1
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period
|
|
99.0
|
|
9.0
|
|
|
|
|
|
Cash and
cash equivalents, end of period
|
$
|
15.3
|
$
|
19.1
|
SOURCE JBT Corporation