CHICAGO, May 1, 2018 /PRNewswire/ --
First-Quarter 2018 Highlights:
- Continues to enjoy robust market conditions and order
activity
- Challenged by FoodTech margins, but expects significant
improvement through 2018
- Continues to expect double-digit revenue and
pre-restructuring earnings growth with full-year guidance adjusted
to reflect benefit from new revenue recognition standards and
shortfall in first-quarter margins
- Initiates restructuring program of approximately
$50 million, expected to contribute
run-rate savings of $45 million by
year-end 2019
JBT Corporation (NYSE: JBT), a leading global
technology solutions provider to high-value segments of the food
& beverage industry, today reported results for the first
quarter of 2018.
"With record orders and strong market conditions, JBT remains on
track to deliver double-digit revenue and pre-restructuring
earnings growth in 2018," said Tom
Giacomini, Chairman, President and Chief Executive Officer.
"While FoodTech margins were pressured in the first quarter, we
expect meaningful improvement throughout 2018."
First quarter 2018 revenue increased 19 percent from the first
quarter of 2017, with a 3 percent decline in organic revenues, a 3
percent gain from acquisitions, a 4 percent foreign exchange
benefit, and a 15 percent gain from the new revenue recognition
standard, ASC 606, adopted January 1,
2018. Of the 15 percent from ASC 606, 10 percent represented
previously recognized revenue and 5 percent was from
accelerated/deferred revenue.
Operating income of $5.9 million
declined $14.3 million from the
year-ago period, including a restructuring charge of $12.7 million in the first quarter of 2018. Total
segment operating profit of $29.4
million declined 2 percent, impacted by short-term
operational execution issues and new product launch inefficiencies.
Total segment operating profit included $13
million benefit from ASC 606, of which $7 million was related to previously recognized
revenue and $6 million was associated
with accelerated/deferred revenue.
Diluted earnings per share from continuing operations was
$0.05 for the first quarter of 2018
compared to $0.58 for the first
quarter of 2017. Adjusted diluted earnings per share from
continuing operations was $0.34 for
the first quarter of 2018 excluding the restructuring charge. First
quarter 2017 results included a $5.8
million, or $0.19 per share,
discrete tax benefit associated with new accounting rules for stock
compensation costs.
Orders and Backlog
For the first quarter of 2018, inbound orders of $442 million increased 9 percent with record
levels at FoodTech and strong performance from AeroTech.
Backlog expanded 11 percent.
Restructuring
In the first quarter of 2018, JBT recorded a restructuring
charge of $12.7 million, part of a
$50 million program to unlock the
benefits of the Company's expanded global scale. "We are
reengineering processes for greater efficiency and flattening our
organization to move closer to the customer and better leverage
G&A resources," added Giacomini. "We expect to generate run
rate benefits of approximately $45
million, representing margin enhancement of more than 200
basis points by year-end 2019."
2018 Outlook
For full-year 2018, JBT continues to expect organic revenue
growth of 7 - 8 percent and 2 - 3 percent from acquisitions. In
addition, the Company anticipates a 4 percent impact from ASC 606
and 1 - 2 percent from foreign exchange, for a total expected
revenue growth of 14 - 17 percent. Due to the first quarter margin
shortfall, the Company has lowered year-over-year projected
FoodTech segment margin expansion to approximately 75 basis points
with AeroTech improvement maintained at 50 - 75 basis points. With
these changes and the restructuring charge, the Company forecasts
diluted earnings per share from continuing operations of
$2.80 - $3.00 or $3.95 -
$4.15 on an adjusted basis. This
includes a projected ASC 606 benefit of $0.30 - $0.34 per
share, versus prior guidance of $0.06
- $0.10 per share. The revenue and
EPS impact from ASC 606 are subject to adjustment as orders develop
throughout the year.
For the second quarter of 2018, the Company anticipates revenue
growth of 22 - 24 percent, including approximately 7 percent
resulting from ASC 606. FoodTech and AeroTech segment margins are
both expected to improve approximately 100 basis points year over
year. Earnings from continuing operations is estimated at
$0.80 - $0.87, or $1.00 -
$1.07, adjusted for restructuring
charges. These estimates include a $0.14 per share discrete tax benefit from
accounting rules for stock compensation costs.
First-Quarter 2018 Earnings Conference Call
A conference call is scheduled for 10:00
a.m. EDT on Wednesday, May 2, 2018 to discuss first-quarter
2018 financial results. Participants may access the conference call
by dialing (833) 238-7952 in the U.S. and Canada or (647) 689-4200 for international
callers and using conference ID 6987139, or through the Investor
Relations link on our website at www.jbtc.com/investors. An online
audio replay of the call will be available on the Company's
Investor Relations website at approximately 1:30 p.m. EDT on May 2,
2018.
JBT Corporation (NYSE: JBT) is a leading global technology
solutions provider to high-value segments of the food &
beverage industry with focus on proteins, liquid foods and
automated system solutions. JBT designs, produces and services
sophisticated products and systems for multi-national and regional
customers through its FoodTech segment. JBT also sells critical
equipment and services to domestic and international air
transportation customers through its AeroTech segment. JBT
Corporation employs approximately 5,800 people worldwide and
operates sales, service, manufacturing and sourcing operations in
more than 25 countries. For more information, please visit
www.jbtc.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 most
recent 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
|
|
March
31,
|
|
2018
|
|
2017
|
|
|
|
|
Revenue
|
$
|
409.2
|
|
|
$
|
344.5
|
|
Cost of
sales
|
305.6
|
|
|
246.9
|
|
|
|
|
|
Gross
profit
|
103.6
|
|
|
97.6
|
|
Gross
profit %
|
25.3
|
%
|
|
28.3
|
%
|
|
|
|
|
Selling, general and
administrative expense
|
76.9
|
|
|
70.8
|
|
Research and
development expense
|
7.9
|
|
|
6.3
|
|
Restructuring
expense
|
12.7
|
|
|
0.4
|
|
Other expense
(income), net
|
0.2
|
|
|
(0.1)
|
|
|
|
|
|
Operating
income
|
5.9
|
|
|
20.2
|
|
Operating
income %
|
1.4
|
%
|
|
5.9
|
%
|
|
|
|
|
Other (expense)
income, net
|
(0.2)
|
|
|
0.3
|
|
Net interest
expense
|
(3.7)
|
|
|
(3.4)
|
|
Income from
continuing operations before income taxes
|
2.0
|
|
|
17.1
|
|
Income tax provision
(benefit)
|
0.4
|
|
|
(0.5)
|
|
Income from
continuing operations
|
1.6
|
|
|
17.6
|
|
Loss from
discontinued operations, net of taxes
|
(0.4)
|
|
|
(0.2)
|
|
Net
income
|
$
|
1.2
|
|
|
$
|
17.4
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
Income
from continuing operations
|
$
|
0.05
|
|
|
$
|
0.59
|
|
Loss
from discontinued operations
|
(0.01)
|
|
|
(0.01)
|
|
Net
income
|
$
|
0.04
|
|
|
$
|
0.58
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
Income
from continuing operations
|
$
|
0.05
|
|
|
$
|
0.58
|
|
Loss
from discontinued operations
|
(0.01)
|
|
|
(0.01)
|
|
Net
income
|
$
|
0.04
|
|
|
$
|
0.57
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
Basic
|
31.9
|
|
|
30.0
|
|
Diluted
|
32.4
|
|
|
30.4
|
|
|
|
|
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
DILUTED EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER
SHARE
|
(Unaudited and in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
1.6
|
|
|
$
|
17.6
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
Restructuring
expense
|
12.7
|
|
|
0.4
|
|
|
|
|
|
Impact on tax
provision from Non-GAAP adjustments(1)
|
(3.2)
|
|
|
(0.1)
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
11.1
|
|
|
$
|
17.9
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
1.6
|
|
|
$
|
17.6
|
|
Total shares and
dilutive securities
|
32.4
|
|
|
30.4
|
|
Diluted earnings per
share from continuing operations
|
$
|
0.05
|
|
|
$
|
0.58
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
11.1
|
|
|
$
|
17.9
|
|
Total shares and
dilutive securities
|
32.4
|
|
|
30.4
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
0.34
|
|
|
$
|
0.59
|
|
|
|
|
|
(1) Impact
on tax provision was calculated using the Company's annual
effective tax rate of 25.02% and 30.78%, for 2018 and 2017,
respectively.
|
|
The above table
contains adjusted income from continuing operations and adjusted
diluted earnings per share from continuing operations, which are
non-GAAP financial measures, and are intended to provide an
indication of our underlying ongoing operating results and to
enhance investors' overall understanding of our financial
performance by eliminating the effects of certain items that are
not comparable from one period to the next. In addition, this
information is used as a basis for evaluating our performance and
for the planning and forecasting of future periods. This
information is not intended to nor should it be considered in
isolation or as a substitute for financial measures prepared in
accordance with GAAP.
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
|
|
|
|
Net income
|
$
|
1.2
|
|
|
$
|
17.4
|
|
|
|
|
|
Loss from
discontinued operations, net of taxes
|
(0.4)
|
|
|
(0.2)
|
|
|
|
|
|
Income from
continuing operations as reported
|
1.6
|
|
|
17.6
|
|
|
|
|
|
Income tax provision
(benefit)
|
0.4
|
|
|
(0.5)
|
|
Net interest
expense
|
3.7
|
|
|
3.4
|
|
Depreciation and
amortization
|
13.7
|
|
|
12.2
|
|
|
|
|
|
EBITDA
|
19.4
|
|
|
32.7
|
|
|
|
|
|
Restructuring
expense
|
12.7
|
|
|
0.4
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
32.1
|
|
|
$
|
33.1
|
|
|
|
|
|
The above table
provides net income as adjusted by income taxes, net interest
expense and depreciation and amortization expense recorded during
the period to arrive at EBITDA. Further, we add back to EBITDA
significant expenses that are not indicative of our ongoing
operations to calculate an Adjusted EBITDA for the periods
reported. Given the Company's focus on growth through strategic
acquisitions, management considers Adjusted EBITDA to be an
important non-GAAP financial measure. This measure allows us to
monitor business performance while excluding the impact of
amortization due to the step up in value of intangible assets, and
the depreciation of fixed assets. We use Adjusted EBITDA internally
to make operating decisions and believe this information is helpful
to investors because it allows more meaningful period-to-period
comparisons of our ongoing operating results. This
information is not intended to nor should it be considered in
isolation or as a substitute for financial measures prepared in
accordance with GAAP.
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
DILUTED EARNINGS PER SHARE GUIDANCE TO ADJUSTED DILUTED EARNINGS
PER SHARE GUIDANCE
|
(Unaudited and in
cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance
|
|
Guidance
|
|
Q2
2018
|
|
Full Year
2018
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$0.80-
$0.87
|
|
$2.80-
$3.00
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
Restructuring expense (1)
|
0.28
|
|
1.55
|
|
|
|
|
Impact on tax
provision from Non-GAAP adjustments(2)
|
(0.08)
|
|
(0.40)
|
|
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
$1.00 -
$1.07
|
|
$3.95 -
$4.15
|
|
|
|
|
|
|
|
|
(1) Restructuring
expense is estimated to be approximately $9.0 million and $50.0
million for second quarter and full year of 2018,
respectively. We have used the mid-point of the full year
estimate in the table above. These amounts have been divided
by our estimate of 32.4 million total shares and dilutive
securities to derive the earnings per share value.
|
|
|
|
|
(2) Impact on tax
provision was calculated using the Company's expected tax rate to
be incurred on these restructuring costs of 26.5%.
|
JBT
CORPORATION
|
BUSINESS SEGMENT
DATA
|
(Unaudited and in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Revenue
|
|
|
|
JBT
FoodTech
|
$
|
303.6
|
|
|
$
|
241.6
|
|
JBT
AeroTech
|
105.6
|
|
|
102.9
|
|
Total
revenue
|
$
|
409.2
|
|
|
$
|
344.5
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
Segment operating
profit(1)
|
|
|
|
JBT
FoodTech
|
$
|
21.5
|
|
|
$
|
20.5
|
|
JBT FoodTech
segment operating profit %
|
7.1
|
%
|
|
8.5
|
%
|
|
|
|
|
JBT
AeroTech
|
7.9
|
|
|
9.6
|
|
JBT AeroTech
segment operating profit %
|
7.5
|
%
|
|
9.3
|
%
|
|
|
|
|
Total segment
operating profit(2)
|
29.4
|
|
|
30.1
|
|
Total segment
operating profit %
|
7.2
|
%
|
|
8.7
|
%
|
|
|
|
|
Corporate
expense(1)
|
(10.8)
|
|
|
(9.5)
|
|
Restructuring
expense
|
(12.7)
|
|
|
(0.4)
|
|
|
|
|
|
Operating
income
|
$
|
5.9
|
|
|
$
|
20.2
|
|
Operating income
%
|
1.4
|
%
|
|
5.9
|
%
|
|
|
|
|
Other business
segment information
|
|
|
|
|
Inbound
Orders
|
|
|
|
JBT
FoodTech
|
$
|
320.7
|
|
|
$
|
317.9
|
|
JBT
AeroTech
|
121.3
|
|
|
86.3
|
|
Intercompany
eliminations/other
|
—
|
|
|
0.1
|
|
Total inbound
orders
|
$
|
442.0
|
|
|
$
|
404.3
|
|
|
|
|
|
|
As of March
31,
|
|
2018
|
|
2017
|
Order
Backlog
|
|
|
|
JBT
FoodTech
|
$
|
426.5
|
|
|
$
|
413.4
|
|
JBT
AeroTech
|
270.1
|
|
|
214.4
|
|
Total order
backlog
|
$
|
696.6
|
|
|
$
|
627.8
|
|
|
|
|
|
(1) Segment operating
profit is defined as total segment revenue less segment operating
expenses. Corporate expense, restructuring expense, interest
income and expense and income taxes are not allocated to the
segments. Corporate expense generally includes corporate
staff-related expense, stock-based compensation, pension and other
postretirement benefit expenses not related to service, LIFO
adjustments, certain foreign currency related gains and losses, and
the impact of unusual or strategic events not representative of
segment operations.
(2) Total segment
operating profit, as presented elsewhere in this release, is a
non-GAAP measure. The table above includes a reconciliation
of total segment operating profit to operating income. We
believe that this measure provides to investors a more
comprehensive understanding of the information used by management
in evaluating the performance of its segment operations. It
is not intended to nor shall be considered in isolation or as a
substitute for financial measures prepared in accordance with U.S.
GAAP.
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited and in
millions)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
|
|
|
Cash and cash
equivalents
|
$
|
30.6
|
|
|
$
|
34.0
|
|
Trade receivables,
net
|
287.6
|
|
|
316.4
|
|
Inventories
|
305.4
|
|
|
190.2
|
|
Other current
assets
|
55.0
|
|
|
48.0
|
|
Total current
assets
|
678.6
|
|
|
588.6
|
|
|
|
|
|
Property, plant and
equipment, net
|
242.9
|
|
|
233.0
|
|
Other
assets
|
576.5
|
|
|
569.8
|
|
Total
assets
|
$
|
1,498.0
|
|
|
$
|
1,391.4
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
8.9
|
|
|
$
|
10.5
|
|
Accounts payable,
trade and other
|
156.8
|
|
|
157.1
|
|
Advance and progress
payments
|
245.3
|
|
|
127.6
|
|
Other current
liabilities
|
132.7
|
|
|
146.2
|
|
Total current
liabilities
|
543.7
|
|
|
441.4
|
|
|
|
|
|
Long-term debt, less
current portion
|
407.4
|
|
|
372.7
|
|
|
|
|
|
Accrued pension and
other postretirement benefits, less current portion
|
82.7
|
|
|
85.9
|
|
Other
liabilities
|
45.2
|
|
|
49.5
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
250.9
|
|
|
248.5
|
|
Retained
earnings
|
303.4
|
|
|
333.7
|
|
Accumulated other
comprehensive loss
|
(135.3)
|
|
|
(140.3)
|
|
Total stockholders'
equity
|
419.0
|
|
|
441.9
|
|
Total liabilities and
stockholders' equity
|
$
|
1,498.0
|
|
|
$
|
1,391.4
|
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Income from
continuing operations
|
$
|
1.6
|
|
|
$
|
17.6
|
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
13.7
|
|
|
12.2
|
|
Other
|
3.3
|
|
|
1.5
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Trade accounts
receivable, net
|
(0.3)
|
|
|
18.5
|
|
Inventories
|
(1.4)
|
|
|
(22.8)
|
|
Accounts payable,
trade and other
|
(0.1)
|
|
|
(2.6)
|
|
Advance and progress
payments
|
1.6
|
|
|
20.5
|
|
Other - assets and
liabilities, net
|
(22.5)
|
|
|
(20.9)
|
|
|
|
|
|
Cash (required)
provided by continuing operating activities
|
(4.1)
|
|
|
24.0
|
|
|
|
|
|
Cash required by
discontinued operating activities
|
(0.6)
|
|
|
(0.2)
|
|
|
|
|
|
Cash (required)
provided by operating activities
|
(4.7)
|
|
|
23.8
|
|
|
|
|
|
Cash flows
required by investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(18.8)
|
|
|
(61.0)
|
|
Capital
expenditures
|
(10.4)
|
|
|
(7.9)
|
|
Other
|
0.2
|
|
|
0.5
|
|
|
|
|
|
Cash required by
investing activities
|
(29.0)
|
|
|
(68.4)
|
|
|
|
|
|
Cash flows
provided by financing activities:
|
|
|
|
Net proceeds
(payments) on credit facilities
|
33.1
|
|
|
(118.4)
|
|
Dividends
|
(3.2)
|
|
|
(3.2)
|
|
Proceeds from stock
issuance, net of stock issuance costs
|
—
|
|
|
184.6
|
|
Other
|
—
|
|
|
(9.5)
|
|
|
|
|
|
Cash provided by
financing activities
|
29.9
|
|
|
53.5
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
0.5
|
|
|
0.8
|
|
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
(3.3)
|
|
|
9.7
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
34.0
|
|
|
33.2
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
30.7
|
|
|
$
|
42.9
|
|
Investors & Media: Jeff Scipta, +1 312 861 5930
View original
content:http://www.prnewswire.com/news-releases/jbt-corporation-reports-first-quarter-2018-results-300640384.html
SOURCE JBT Corporation