CHICAGO, March 4, 2014 /PRNewswire/ --
Fourth Quarter 2013 Highlights:
- Revenue of $288 million and
operating income of $20
million
- Diluted earnings per share from continuing operations of
$0.46
- Adjusted diluted earnings per share from continuing
operations of $0.54
Full Year 2013 Highlights:
- Revenue of $934 million and
operating income of $53
million
- Diluted earnings per share from continuing operations of
$1.15
- Adjusted diluted earnings per share from continuing
operations of $1.26
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 2013 results.
Fourth quarter diluted earnings per share from continuing
operations was $0.46, compared to a
record high $0.64 in the fourth
quarter of 2012. Revenue for the fourth quarter was
$288 million, a decrease of 2 percent
from the prior-year record quarter. Higher revenue from
aftermarket parts and services across both FoodTech and AeroTech
was more than offset by lower equipment sales in AeroTech. A
combination of $2.2 million in lower
segment operating profit, and $6.4
million in higher corporate and restructuring expenses,
resulted in consolidated operating income of $20.2 million. The increases in corporate
and restructuring expenses were driven by $4.1 million of costs related to management
succession and actions taken by the new management. Excluding
these costs, adjusted diluted earnings per share from continuing
operations was $0.54.
Fourth quarter inbound orders of $298.3
million and backlog of $376.5
million increased 29 percent and 33 percent, respectively,
over the same period last year. The Company expects over 80
percent of the consolidated year-end backlog to convert to revenue
in fiscal year 2014, weighted beyond the first quarter.
Full year 2013 diluted earnings per share from continuing
operations was $1.15 compared to
$1.26 in 2012. Full year 2013
revenue of $934.2 million increased 2
percent year-over-year. Revenue growth from FoodTech
equipment and aftermarket parts and services across both segments
was primarily offset by lower AeroTech ground support equipment and
airport services revenue. Regionally, the Company achieved
strong sales in emerging markets, particularly in the Middle East, China, and Latin
America. For the year, segment operating profit
increased by $3.6 million, or 4
percent from 2012, but was reduced by $11.3
million of higher corporate and restructuring expenses.
As a result, consolidated operating income of $53.2 million was $7.7
million lower than prior year. Excluding $5.3 million of costs related to management
succession and actions taken, diluted earnings per share from
continuing operations was flat at $1.26.
"We ended the year with mixed results. FoodTech achieved
record performance, while AeroTech was down. We are
particularly encouraged by the overall growth experienced in
emerging markets and aftermarket expansion across JBT," said
Tom Giacomini, President and Chief
Executive Officer. "Our business is healthy and we expect to
drive moderate revenue growth in the year. We also have taken
several steps for long-term value creation beyond 2014, including
operational excellence initiatives and restructuring actions.
While associated costs are expected to impact 2014 earnings, we are
confident the actions will drive significant future earnings
growth," concluded Giacomini.
The Company is currently finalizing restructuring plans, with
associated charges expected to be in the range of $10 million to $14 million to be incurred in the
first quarter of 2014. The restructuring is projected to
deliver between $9 million and $12
million of annualized run rate
savings.
JBT FoodTech
JBT FoodTech's record fourth quarter revenue of $187.8 million increased slightly over the fourth
quarter 2012. Strong sales of fruit and juice equipment was
offset by lower freezing equipment sales. Segment operating
profit of $21.5 million decreased 10
percent from the same period in 2012, driven primarily by higher
execution costs in Europe and, to
a lesser degree, the impact of a smaller citrus crop. Inbound
orders in the fourth quarter of $178.1
million increased 9 percent from the same period last
year. Strong order activity for freezing and protein
processing equipment, particularly in Asia, drove the increase in inbound orders.
Backlog of $213.7 million
increased 26 percent over the fourth quarter of 2012.
Numerous opportunities have been identified to accelerate the
application of automated systems technologies within the food
processing industry. Therefore, the Company's automated systems
business, previously reported within the JBT AeroTech segment, is
now included within JBT FoodTech. Historical segment results
have been adjusted to reflect this change.
JBT AeroTech
JBT AeroTech's fourth quarter revenue of $100.8 million decreased 5 percent from the
prior-year quarter. Strong sales of gate equipment were
offset by significantly lower sales of ground support equipment.
Despite the overall lower volume, segment operating profit
was essentially flat due to improved sales mix and lower operating
costs. Several large gate equipment orders drove inbound
orders in the fourth quarter to $120.7
million, an increase of 76 percent from the prior-year
quarter. Backlog of $162.8
million was ahead 43 percent year over year.
Approximately 70 percent of the year-end AeroTech backlog is
expected to convert to revenue in fiscal year 2014.
Corporate Items
For the full year, corporate and restructuring expenses
increased by $11.3 million driven
primarily by $5.3 million in costs
related to management succession and actions taken, $3.0 million in unfavorable comparison of foreign
currency transactions and $1.7
million in higher self-insured healthcare costs. For
2014, corporate expense, excluding management succession and
consulting costs, is expected to be in the range of $26 to $28 million.
Income tax expense for 2013 reflected an income tax rate of 29
percent compared to 31 percent in 2012. The lower rate
reflects $2.1 million of additional
research and development credits. The Company expects its
2014 tax rate to be in a range of 31 to 33 percent.
The Company generated solid full year cash flow from continuing
operating activities of $63.1
million. Full year capital expenditures totaled
$29.2 million, inclusive of
$7 million related to progress on
replacing the Company's Lakeland,
Florida manufacturing facility.
2014 Outlook
For the first quarter, the Company expects revenue to increase
by about 10 percent over the first quarter of 2013. Due to an
unfavorable sales mix and higher corporate expense in the quarter,
diluted earnings per share from continuing operations is expected
to be slightly above breakeven, compared to $0.14 in the first quarter of 2013. This
estimate excludes restructuring charges the Company plans to incur
in the first quarter.
For the full year, the Company anticipates a revenue growth in
the mid-single digit range. The Company expects total segment
operating margin in 2014 to remain flat relative to 2013, excluding
benefits from operational excellence and restructuring
initiatives. While these initiatives will impact 2014
earnings, the actions are expected to drive future margin expansion
and significant earnings growth.
Fourth Quarter and Full Year 2013 Earnings Conference
Call
A conference call is scheduled for 10:00
a.m. EST on Wednesday, March 5,
2014 to discuss the fourth quarter results.
Participants may access the conference call by dialing (866)
625-2980 or (706) 679-5175 and using conference ID 17034499, 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 5, 2014.
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 3,300 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 2012 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, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
288.1
|
$
|
292.9
|
|
$
|
934.2
|
$
|
917.3
|
Cost of
sales
|
|
218.8
|
|
218.2
|
|
|
701.3
|
|
686.5
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
69.3
|
|
74.7
|
|
|
232.9
|
|
230.8
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
|
43.7
|
|
42.0
|
|
|
164.3
|
|
156.6
|
Research and
development expense
|
|
3.4
|
|
3.8
|
|
|
14.0
|
|
14.3
|
Restructuring
expense
|
|
1.6
|
|
0.4
|
|
|
1.6
|
|
0.1
|
Other expense
(income), net
|
|
0.4
|
|
(0.3)
|
|
|
(0.2)
|
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
20.2
|
|
28.8
|
|
|
53.2
|
|
60.9
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
expense
|
|
1.2
|
|
1.7
|
|
|
5.4
|
|
6.9
|
Income from
continuing operations before income taxes
|
19.0
|
|
27.1
|
|
|
47.8
|
|
54.0
|
Provision for income
taxes
|
|
5.3
|
|
8.1
|
|
|
13.8
|
|
16.9
|
Income from
continuing operations
|
|
13.7
|
|
19.0
|
|
|
34.0
|
|
37.1
|
Loss from
discontinued operations, net of taxes
|
|
0.1
|
|
0.5
|
|
|
0.9
|
|
0.9
|
Net income
|
$
|
13.6
|
$
|
18.5
|
|
$
|
33.1
|
$
|
36.2
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.47
|
$
|
0.65
|
|
$
|
1.16
|
$
|
1.27
|
Loss from discontinued operations
|
|
-
|
|
(0.01)
|
|
|
(0.03)
|
|
(0.03)
|
Net income
|
$
|
0.47
|
$
|
0.64
|
|
$
|
1.13
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.46
|
$
|
0.64
|
|
$
|
1.15
|
$
|
1.26
|
Loss from discontinued operations
|
|
-
|
|
(0.01)
|
|
|
(0.04)
|
|
(0.03)
|
Net income
|
$
|
0.46
|
$
|
0.63
|
|
$
|
1.11
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
29.3
|
|
29.1
|
|
|
29.2
|
|
29.1
|
Diluted
|
|
29.8
|
|
29.6
|
|
|
29.7
|
|
29.5
|
JBT
CORPORATION
|
BUSINESS SEGMENT
DATA
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
187.8
|
$
|
185.9
|
|
$
|
611.0
|
$
|
589.1
|
JBT
AeroTech
|
|
100.8
|
|
106.2
|
|
|
323.4
|
|
325.4
|
Other revenue (1) and
intercompany eliminations
|
|
(0.5)
|
|
0.8
|
|
|
(0.2)
|
|
2.8
|
Total
revenue
|
$
|
288.1
|
$
|
292.9
|
|
$
|
934.2
|
$
|
917.3
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
21.5
|
$
|
24.0
|
|
$
|
64.5
|
$
|
58.8
|
JBT
AeroTech
|
|
12.8
|
|
12.5
|
|
|
26.6
|
|
28.7
|
Total segment
operating profit
|
|
34.3
|
|
36.5
|
|
|
91.1
|
|
87.5
|
|
|
|
|
|
|
|
|
|
|
Corporate
items
|
|
|
|
|
|
|
|
|
|
Corporate expense
(2)
|
|
(12.5)
|
|
(7.3)
|
|
|
(36.3)
|
|
(26.5)
|
Restructuring
expense
|
|
(1.6)
|
|
(0.4)
|
|
|
(1.6)
|
|
(0.1)
|
Net interest
expense
|
|
(1.2)
|
|
(1.7)
|
|
|
(5.4)
|
|
(6.9)
|
Total corporate
items
|
|
(15.3)
|
|
(9.4)
|
|
|
(43.3)
|
|
(33.5)
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
$
|
19.0
|
$
|
27.1
|
|
$
|
47.8
|
$
|
54.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other revenue is
comprised of certain gains and losses related to foreign exchange
exposure.
|
|
(2) Corporate expense
generally includes corporate staff costs, stock-based compensation,
pension and other postretirement benefit expenses not related to
service, LIFO adjustments, foreign exchange gains and losses, and
the impact of unusual or strategic transactions not representative
of segment operations.
|
JBT
CORPORATION
|
BUSINESS SEGMENT
DATA
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
Inbound
Orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
178.1
|
$
|
162.8
|
|
$
|
655.3
|
$
|
630.1
|
JBT
AeroTech
|
|
120.7
|
|
68.5
|
|
|
372.5
|
|
339.0
|
Other and
intercompany eliminations
|
|
(0.5)
|
|
0.8
|
|
|
(0.2)
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
Total inbound
orders
|
$
|
298.3
|
$
|
232.1
|
|
$
|
1,027.6
|
$
|
971.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Order
Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
213.7
|
$
|
169.4
|
|
|
|
|
|
JBT
AeroTech
|
|
162.8
|
|
113.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total order
backlog
|
$
|
376.5
|
$
|
283.1
|
|
|
|
|
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited and In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
29.4
|
$
|
99.0
|
Trade receivables,
net
|
|
186.4
|
|
188.4
|
Inventories
|
|
117.6
|
|
109.2
|
Other current
assets
|
|
63.2
|
|
54.5
|
Total current
assets
|
|
396.6
|
|
451.1
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
132.7
|
|
126.2
|
Other
assets
|
|
91.9
|
|
100.7
|
Total
assets
|
$
|
621.2
|
$
|
678.0
|
|
|
|
|
|
|
|
|
|
|
Short term debt and
current portion of long-term debt
|
$
|
6.3
|
$
|
2.0
|
Accounts payable,
trade and other
|
|
88.1
|
|
88.7
|
Advance payments and
progress billings
|
|
88.3
|
|
74.3
|
Other current
liabilities
|
|
94.9
|
|
85.8
|
Total current
liabilities
|
|
277.6
|
|
250.8
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
94.1
|
|
189.1
|
Accrued pension and
other postretirement benefits, less current portion
|
|
52.5
|
|
104.6
|
Other
liabilities
|
|
42.6
|
|
27.9
|
|
|
|
|
|
Common stock and
paid-in capital
|
|
68.0
|
|
63.1
|
Retained
earnings
|
|
146.5
|
|
123.5
|
Accumulated other
comprehensive loss
|
|
(60.1)
|
|
(81.0)
|
Total stockholders'
equity
|
|
154.4
|
|
105.6
|
Total liabilities and
stockholders' equity
|
$
|
621.2
|
$
|
678.0
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Income from continuing
operations
|
$
|
34.0
|
$
|
37.1
|
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
25.0
|
|
23.6
|
Other
|
|
10.4
|
|
15.4
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Trade accounts receivable,
net
|
|
0.8
|
|
2.3
|
Inventories
|
|
(9.6)
|
|
14.6
|
Accounts payable, trade and
other
|
|
(1.9)
|
|
5.2
|
Advance payments and
progress billings
|
|
14.1
|
|
15.8
|
Other - assets and
liabilities, net
|
|
(9.7)
|
|
(27.4)
|
|
|
|
|
|
Cash provided by
continuing operating activities
|
|
63.1
|
|
86.6
|
|
|
|
|
|
Cash required by
discontinued operating activities
|
|
(1.1)
|
|
(0.6)
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Acquisitions
|
|
-
|
|
(10.0)
|
Capital
expenditures
|
|
(29.2)
|
|
(24.7)
|
Other
|
|
1.1
|
|
2.1
|
|
|
|
|
|
Cash required by
continuing investing activities
|
|
(28.1)
|
|
(32.6)
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Net (payments) proceeds on
credit facilities
|
|
(89.5)
|
|
51.2
|
Dividends paid
|
|
(10.1)
|
|
(8.5)
|
Purchase of stock held in
treasury
|
|
(0.2)
|
|
(3.6)
|
Other
|
|
(1.8)
|
|
(3.0)
|
|
|
|
|
|
Cash (required)
provided by financing activities
|
|
(101.6)
|
|
36.1
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(1.9)
|
|
0.5
|
|
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
|
(69.6)
|
|
90.0
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
99.0
|
|
9.0
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
29.4
|
$
|
99.0
|
SOURCE JBT Corporation