CHICAGO, Oct. 28, 2019 /PRNewswire/ -- JBT
Corporation (NYSE: JBT), a leading global technology
solutions provider to high-value segments of the food &
beverage industry, today reported results for the third quarter of
2019. Comparisons in this news release are to the comparable period
of the prior year, unless otherwise noted.
"We continued to capture the benefits of our initiatives that
make JBT a more efficient operation, with better than expected
margin expansion in the third quarter of 2019," said Tom Giacomini, Chairman, President, and Chief
Executive Officer. "We also enjoyed continued strength at AeroTech
and across our aftermarket business. However, we have not seen
improvement in orders at FoodTech, with a continued lag converting
commercial activity to customer commitments due to business
uncertainty."
Third quarter 2019 revenue of $489.4
million increased 2 percent, as 10 percent growth from
acquisitions offset a 3 percent decline organically, a 2 percent
headwind from foreign exchange translation, and a 4 percent decline
attributable to the absence of the ASC 606 transition benefit
recorded in the third quarter of 2018.
Operating income was $48.6 million
in the third quarter of 2019. Net income for the third quarter of
2019 was $33.5 million. Adjusted
EBITDA expanded 15 percent to $75.8
million, with a 190 basis point margin improvement to 15.5
percent.
Margins benefited from continued operational improvements
resulting from the restructuring program and implementation of the
JBT operating system as well as a higher percentage of revenue from
aftermarket business. FoodTech operating profit margins in the
third quarter of 2019 were roughly level with the year-ago period,
while absorbing higher acquisition-related costs. FoodTech adjusted
EBITDA margins expanded 240 basis points to 19.7 percent. AeroTech
operating profit margin increased 250 basis points while AeroTech
adjusted EBITDA margins expanded 280 basis points to 15.2
percent.
Diluted earnings per share from continuing operations was
$1.04 for the third quarter of 2019
compared with $0.82 in the third
quarter of 2018. Adjusted earnings per share was $1.28 compared with $1.12 in the year-ago period.
Orders and Backlog
Third quarter 2019 orders increased 3.5 percent year over year
on flat orders at FoodTech and a 9 percent increase at
AeroTech. Backlog declined 8 percent at FoodTech and increased 8
percent at AeroTech.
Restructuring Program
"We continued to capture benefits from our company-wide
restructuring program as reflected in incremental savings of
$7 million in the third quarter,"
said Brian Deck, Executive Vice
President and Chief Financial Officer.
Outlook
"We have adjusted full-year 2019 guidance to reflect better than
expected margin gains, offset by softer FoodTech revenue," added
Deck. For 2019, JBT expects revenue growth of 2 - 3 percent
organically, with about 1 percent at FoodTech and 5 - 6 percent at
AeroTech, and 7 percent from acquisitions. Foreign exchange is
expected to be a 2 - 3 percent revenue headwind. Reported revenue
is expected to be flat to up 1 percent year over year, considering
2018 included revenue of $127 million
associated with the transition to ASC 606.
The Company changed full-year 2019 GAAP diluted earnings per
share from continuing operations guidance to $4.10 - $4.20,
including a projected $0.10 per share
discrete tax benefit in the fourth quarter. This tax benefit does
not impact adjusted earnings guidance, which has been narrowed to
$4.80 - $4.90.
Third Quarter 2019 Earnings Conference Call
A
conference call is scheduled for 10:00 a.m. ET on Tuesday, October 29, 2019 to discuss third
quarter 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 4516347 or through the link on
our website at https://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.
ET on October 29, 2019.
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 6,400 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.
We provide non-GAAP financial measures in order to increase
transparency in our operating results and trends. These
non-GAAP measures eliminate certain costs or benefits from, or
changes the calculation of, a measure as calculated under U.S.
GAAP. By eliminating these items, we believe we provide a more
meaningful comparison of our ongoing operating results, consistent
with how management evaluates performance. Management uses these
non-GAAP measures in financial and operational evaluation, planning
and forecasting.
These calculations may differ from similarly-titled measures
used by other companies. The non-GAAP financial measures disclosed
are not intended to be used as a substitute for, nor should they be
considered in isolation of, financial measures prepared in
accordance with U.S. GAAP.
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited and in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
489.4
|
|
|
$
|
481.9
|
|
|
$
|
1,400.2
|
|
|
$
|
1,382.4
|
|
Cost of
sales
|
341.8
|
|
|
346.8
|
|
|
970.0
|
|
|
1,003.4
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
147.6
|
|
|
135.1
|
|
|
430.2
|
|
|
379.0
|
|
Gross profit
%
|
30.2
|
%
|
|
28.0
|
%
|
|
30.7
|
%
|
|
27.4
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
97.7
|
|
|
86.9
|
|
|
293.1
|
|
|
261.5
|
|
Restructuring
expense
|
1.3
|
|
|
11.6
|
|
|
11.5
|
|
|
32.8
|
|
|
|
|
|
|
|
|
|
Operating
income
|
48.6
|
|
|
36.6
|
|
|
125.6
|
|
|
84.7
|
|
Operating income %
|
9.9
|
%
|
|
7.6
|
%
|
|
9.0
|
%
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
Pension expense,
other than service cost
|
0.5
|
|
|
—
|
|
|
1.5
|
|
|
0.6
|
|
Net interest
expense
|
5.9
|
|
|
3.4
|
|
|
13.4
|
|
|
10.5
|
|
Income from
continuing operations before income taxes
|
42.2
|
|
|
33.2
|
|
|
110.7
|
|
|
73.6
|
|
Provision for income
taxes
|
8.7
|
|
|
6.8
|
|
|
23.5
|
|
|
12.1
|
|
Income from
continuing operations
|
33.5
|
|
|
26.4
|
|
|
87.2
|
|
|
61.5
|
|
Loss from
discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
Net income
|
$
|
33.5
|
|
|
$
|
26.4
|
|
|
$
|
86.9
|
|
|
$
|
61.2
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1.05
|
|
|
$
|
0.83
|
|
|
$
|
2.74
|
|
|
$
|
1.93
|
|
Loss from discontinued
operations
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
Net income
|
$
|
1.05
|
|
|
$
|
0.83
|
|
|
$
|
2.73
|
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1.04
|
|
|
$
|
0.82
|
|
|
$
|
2.72
|
|
|
$
|
1.91
|
|
Loss from discontinued
operations
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
Net income
|
$
|
1.04
|
|
|
$
|
0.82
|
|
|
$
|
2.71
|
|
|
$
|
1.90
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
31.9
|
|
|
31.9
|
|
|
31.9
|
|
|
31.9
|
|
Diluted
|
32.1
|
|
|
32.1
|
|
|
32.0
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
33.5
|
|
|
$
|
26.4
|
|
|
$
|
87.2
|
|
|
$
|
61.5
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Restructuring
expense
|
1.3
|
|
|
11.6
|
|
|
11.5
|
|
|
32.8
|
|
M&A related
cost(1)
|
8.7
|
|
|
2.2
|
|
|
20.2
|
|
|
4.0
|
|
Impact on tax
provision from Non-GAAP adjustments(2)
|
(2.5)
|
|
|
(3.5)
|
|
|
(7.8)
|
|
|
(9.5)
|
|
Impact on tax
provision from repatriation
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
Impact on tax
provision from rate change on deferred taxes
|
—
|
|
|
(1.5)
|
|
|
—
|
|
|
(1.5)
|
|
Adjusted income from
continuing operations
|
$
|
41.0
|
|
|
$
|
35.8
|
|
|
$
|
111.1
|
|
|
$
|
87.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
33.5
|
|
|
$
|
26.4
|
|
|
$
|
87.2
|
|
|
$
|
61.5
|
|
Total shares and
dilutive securities
|
32.1
|
|
|
32.1
|
|
|
32.0
|
|
|
32.2
|
|
Diluted earnings per
share from continuing operations
|
$
|
1.04
|
|
|
$
|
0.82
|
|
|
$
|
2.72
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
41.0
|
|
|
$
|
35.8
|
|
|
$
|
111.1
|
|
|
$
|
87.9
|
|
Total shares and
dilutive securities
|
32.1
|
|
|
32.1
|
|
|
32.0
|
|
|
32.2
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
1.28
|
|
|
$
|
1.12
|
|
|
$
|
3.47
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
(1)
Beginning in the first quarter of 2019, we changed our presentation
of non-GAAP measures to exclude M&A related costs,
specifically amortization of inventory step up, integration costs,
and transaction expenses. We evaluate operational performance
and operating trends after excluding certain expenses incurred to
fulfill our acquisition strategy. M&A related costs are
excluded
from the prior year results to conform to the current year
presentation.
|
(2)
Impact on tax provision was calculated using the Company's annual
effective tax rate of 24.7% and 25.7% for September 30,
2019
and 2018, respectively.
|
|
The above table
reports adjusted income from continuing operations and adjusted
diluted earnings per share from continuing operations,
which are non-GAAP financial measures. We use these measures
internally to make operating decisions and for the planning and
forecasting
of future periods, and therefore provide this information to
investors because we believe it allows more meaningful
period-to-period comparisons
of our ongoing operating results, without the fluctuations in the
amount of certain costs that do not reflect our underlying
operating results.
|
|
JBT
CORPORATION
|
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
|
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA
|
|
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
As of October
28,
2019
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
Outlook FY
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
33.5
|
|
|
$
|
26.4
|
|
|
$
|
86.9
|
|
|
$
|
61.2
|
|
|
$131.0 to
$136.0
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
~1.0
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
33.5
|
|
|
26.4
|
|
|
87.2
|
|
|
61.5
|
|
|
$127.0 to
$132.0
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
8.7
|
|
|
6.8
|
|
|
23.5
|
|
|
12.1
|
|
|
39.0 to
40.0
|
Interest expense,
net
|
5.9
|
|
|
3.4
|
|
|
13.4
|
|
|
10.5
|
|
|
23.0 to
24.0
|
Depreciation and
amortization
|
17.2
|
|
|
15.3
|
|
|
47.5
|
|
|
43.1
|
|
|
69.0 to
70.0
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
65.3
|
|
|
51.9
|
|
|
171.6
|
|
|
127.2
|
|
|
$254.0 to
$261.0
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expense
|
1.3
|
|
|
11.6
|
|
|
11.5
|
|
|
32.8
|
|
|
12.0 to
15.0
|
Pension expense,
other than service cost
|
0.5
|
|
|
—
|
|
|
1.5
|
|
|
0.6
|
|
|
~1.0
|
M&A related
cost
|
8.7
|
|
|
2.2
|
|
|
20.2
|
|
|
4.0
|
|
|
~22.0
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
75.8
|
|
|
$
|
65.7
|
|
|
$
|
204.8
|
|
|
$
|
164.6
|
|
|
$290.0 to
$300.0
|
|
|
|
|
|
|
|
|
|
|
|
Beginning in the
first quarter of 2019, we changed our presentation of non-GAAP
measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and
transaction expenses. We evaluate operational performance and
operating
trends after excluding certain expenses incurred to fulfill our
acquisition strategy. M&A related costs are excluded from the
prior year
results to conform to the current year presentation.
|
|
|
|
The above table
reports EBITDA and Adjusted EBITDA, which are non-GAAP financial
measures. Given the Company's focus on
growth through acquisitions, management believes EBITDA facilitates
an evaluation of 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BUSINESS SEGMENT
DATA
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
334.3
|
|
|
$
|
332.5
|
|
|
$
|
972.2
|
|
|
$
|
997.7
|
|
JBT
AeroTech
|
155.0
|
|
|
149.5
|
|
|
427.8
|
|
|
384.6
|
|
Other revenue and
intercompany eliminations
|
$
|
0.1
|
|
|
$
|
(0.1)
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
Total
revenue
|
$
|
489.4
|
|
|
$
|
481.9
|
|
|
$
|
1,400.2
|
|
|
$
|
1,382.4
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
|
|
|
|
Segment operating
profit(1)
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
42.5
|
|
|
$
|
41.9
|
|
|
$
|
132.5
|
|
|
$
|
110.8
|
|
JBT FoodTech
segment operating profit %
|
12.7
|
%
|
|
12.6
|
%
|
|
13.6
|
%
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
JBT
AeroTech
|
22.2
|
|
|
17.6
|
|
|
50.2
|
|
|
40.2
|
|
JBT AeroTech
segment operating profit %
|
14.3
|
%
|
|
11.8
|
%
|
|
11.7
|
%
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
Total segment
operating profit(2)
|
64.7
|
|
|
59.5
|
|
|
182.7
|
|
|
151.0
|
|
Total segment
operating profit %
|
13.2
|
%
|
|
12.3
|
%
|
|
13.0
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
Corporate
expense(1)
|
14.8
|
|
|
11.3
|
|
|
45.6
|
|
|
33.5
|
|
Restructuring
expense
|
1.3
|
|
|
11.6
|
|
|
11.5
|
|
|
32.8
|
|
Operating
income
|
$
|
48.6
|
|
|
$
|
36.6
|
|
|
$
|
125.6
|
|
|
$
|
84.7
|
|
Operating income
%
|
9.9
|
%
|
|
7.6
|
%
|
|
9.0
|
%
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
Other business
segment information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
Inbound
Orders
|
2019
|
|
2018
|
|
2019
|
|
2018
|
JBT
FoodTech
|
$
|
283.3
|
|
|
$
|
282.3
|
|
|
$
|
900.1
|
|
|
$
|
952.9
|
|
JBT
AeroTech
|
180.3
|
|
|
165.7
|
|
|
492.3
|
|
|
467.3
|
|
Other revenue and
intercompany eliminations
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
Total inbound
orders
|
$
|
463.7
|
|
|
$
|
448.1
|
|
|
$
|
1,392.6
|
|
|
$
|
1,420.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30,
|
|
|
|
|
|
2019
|
|
2018
|
Order
Backlog
|
|
|
|
|
|
|
|
JBT
FoodTech
|
|
|
|
|
$
|
377.3
|
|
|
$
|
408.2
|
|
JBT
AeroTech
|
|
|
|
|
376.2
|
|
|
346.9
|
|
Total order
backlog
|
|
|
|
|
$
|
753.5
|
|
|
$
|
755.1
|
|
|
|
|
|
|
|
|
|
(1) Segment operating
profit is defined as total segment revenue less segment operating
expenses. Corporate expense, restructuring expense, interest
income
and expense, pension expense other than service, and income taxes
are not allocated to the segments. Corporate expense
generally includes corporate staff-
related expense, stock-based compensation, 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
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
42.5
|
|
|
$
|
22.2
|
|
|
$
|
(16.1)
|
|
|
$
|
48.6
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
M&A related
cost(1)
|
7.9
|
|
|
—
|
|
|
0.8
|
|
|
8.7
|
|
Adjusted operating
profit
|
50.4
|
|
|
22.2
|
|
|
(14.0)
|
|
|
58.6
|
|
Depreciation and
amortization
|
15.4
|
|
|
1.3
|
|
|
0.5
|
|
|
17.2
|
|
Adjusted
EBITDA
|
$
|
65.8
|
|
|
$
|
23.5
|
|
|
$
|
(13.5)
|
|
|
$
|
75.8
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
334.3
|
|
|
$
|
155.0
|
|
|
$
|
0.1
|
|
|
$
|
489.4
|
|
Operating profit
%
|
12.7
|
%
|
|
14.3
|
%
|
|
|
|
9.9
|
%
|
Adjusted operating
profit %
|
15.1
|
%
|
|
14.3
|
%
|
|
|
|
12.0
|
%
|
Adjusted EBITDA
%
|
19.7
|
%
|
|
15.2
|
%
|
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
132.5
|
|
|
$
|
50.2
|
|
|
$
|
(57.1)
|
|
|
$
|
125.6
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
11.5
|
|
|
11.5
|
|
M&A related cost
(1)
|
13.2
|
|
|
0.9
|
|
|
6.1
|
|
|
20.2
|
|
Adjusted operating
profit
|
145.7
|
|
|
51.1
|
|
|
(39.5)
|
|
|
157.3
|
|
Depreciation and
amortization
|
42.0
|
|
|
3.5
|
|
|
2.0
|
|
|
47.5
|
|
Adjusted
EBITDA
|
$
|
187.7
|
|
|
$
|
54.6
|
|
|
$
|
(37.5)
|
|
|
$
|
204.8
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
972.2
|
|
|
$
|
427.8
|
|
|
$
|
0.2
|
|
|
$
|
1,400.2
|
|
Operating profit
%
|
13.6
|
%
|
|
11.7
|
%
|
|
|
|
9.0
|
%
|
Adjusted operating
profit %
|
15.0
|
%
|
|
11.9
|
%
|
|
|
|
11.2
|
%
|
Adjusted EBITDA
%
|
19.3
|
%
|
|
12.8
|
%
|
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
Beginning in the
first quarter of 2019, we changed our presentation of non-GAAP
measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and
transaction expenses. We evaluate operational performance and
operating trends
after excluding certain expenses incurred to fulfill our
acquisition strategy. M&A related costs are excluded from the
prior year results to
conform to the current year presentation.
|
|
The above table
reports EBITDA and Adjusted EBITDA, which are non-GAAP financial
measures. Given the Company's focus on growth
through acquisitions, management believes EBITDA facilitates an
evaluation of 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.
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
41.9
|
|
|
$
|
17.6
|
|
|
$
|
(22.9)
|
|
|
$
|
36.6
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
11.6
|
|
|
11.6
|
|
M&A related cost
(1)
|
2.0
|
|
|
0.2
|
|
|
—
|
|
|
2.2
|
|
Adjusted operating
profit
|
43.9
|
|
|
17.8
|
|
|
(11.3)
|
|
|
50.4
|
|
Depreciation and
amortization
|
13.6
|
|
|
0.7
|
|
|
1.0
|
|
|
15.3
|
|
Adjusted
EBITDA
|
$
|
57.5
|
|
|
$
|
18.5
|
|
|
$
|
(10.3)
|
|
|
$
|
65.7
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
332.5
|
|
|
$
|
149.5
|
|
|
$
|
(0.1)
|
|
|
$
|
481.9
|
|
Operating profit
%
|
12.6
|
%
|
|
11.8
|
%
|
|
|
|
7.6
|
%
|
Adjusted operating
profit %
|
13.2
|
%
|
|
11.9
|
%
|
|
|
|
10.5
|
%
|
Adjusted EBITDA
%
|
17.3
|
%
|
|
12.4
|
%
|
|
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
110.8
|
|
|
$
|
40.2
|
|
|
$
|
(66.3)
|
|
|
$
|
84.7
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
32.8
|
|
|
32.8
|
|
M&A related cost
(1)
|
3.8
|
|
|
0.2
|
|
|
—
|
|
|
4.0
|
|
Adjusted operating
profit
|
114.6
|
|
|
40.4
|
|
|
(33.5)
|
|
|
121.5
|
|
Depreciation and
amortization
|
38.8
|
|
|
2.2
|
|
|
2.1
|
|
|
43.1
|
|
Adjusted
EBITDA
|
$
|
153.4
|
|
|
$
|
42.6
|
|
|
$
|
(31.4)
|
|
|
$
|
164.6
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
997.7
|
|
|
$
|
384.6
|
|
|
$
|
0.1
|
|
|
$
|
1,382.4
|
|
Operating profit
%
|
11.1
|
%
|
|
10.5
|
%
|
|
|
|
6.1
|
%
|
Adjusted operating
profit %
|
11.5
|
%
|
|
10.5
|
%
|
|
|
|
8.8
|
%
|
Adjusted EBITDA
%
|
15.4
|
%
|
|
11.1
|
%
|
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
Beginning in the
first quarter of 2019, we changed our presentation of non-GAAP
measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and
transaction expenses. We evaluate operational performance and
operating
trends after excluding certain expenses incurred to fulfill our
acquisition strategy. M&A related costs are excluded from the
prior year
results to conform to the current year presentation.
|
|
The above table
reports EBITDA and Adjusted EBITDA, which are non-GAAP financial
measures. Given the Company's focus on growth
through acquisitions, management believes EBITDA facilitates an
evaluation of 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.
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT FOR FISCAL YEAR
2018
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2018
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
58.7
|
|
|
$
|
23.9
|
|
|
$
|
(23.5)
|
|
|
$
|
59.1
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
14.2
|
|
|
14.2
|
|
M&A related
cost
|
0.4
|
|
|
0.4
|
|
|
—
|
|
|
0.8
|
|
Adjusted operating
profit
|
59.1
|
|
|
24.3
|
|
|
(9.3)
|
|
|
74.1
|
|
Depreciation and
amortization
|
13.0
|
|
|
0.6
|
|
|
1.0
|
|
|
14.6
|
|
Adjusted
EBITDA
|
$
|
72.1
|
|
|
$
|
24.9
|
|
|
$
|
(8.3)
|
|
|
$
|
88.7
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
363.7
|
|
|
$
|
173.5
|
|
|
$
|
0.1
|
|
|
$
|
537.3
|
|
Operating profit
%
|
16.1
|
%
|
|
13.8
|
%
|
|
|
|
11.0
|
%
|
Adjusted operating
profit %
|
16.2
|
%
|
|
14.0
|
%
|
|
|
|
13.8
|
%
|
Adjusted EBITDA
%
|
19.8
|
%
|
|
14.4
|
%
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
2018
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
169.5
|
|
|
$
|
64.1
|
|
|
$
|
(89.8)
|
|
|
$
|
143.8
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
47.0
|
|
|
47.0
|
|
M&A related
cost
|
4.2
|
|
|
0.6
|
|
|
—
|
|
|
4.8
|
|
Adjusted operating
profit
|
173.7
|
|
|
64.7
|
|
|
(42.8)
|
|
|
195.6
|
|
Depreciation and
amortization
|
51.7
|
|
|
2.9
|
|
|
3.1
|
|
|
57.7
|
|
Adjusted
EBITDA
|
$
|
225.4
|
|
|
$
|
67.6
|
|
|
$
|
(39.7)
|
|
|
$
|
253.3
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
1,361.4
|
|
|
$
|
558.1
|
|
|
$
|
0.2
|
|
|
$
|
1,919.7
|
|
Operating profit
%
|
12.5
|
%
|
|
11.5
|
%
|
|
|
|
7.5
|
%
|
Adjusted operating
profit %
|
12.8
|
%
|
|
11.6
|
%
|
|
|
|
10.2
|
%
|
Adjusted EBITDA
%
|
16.6
|
%
|
|
12.1
|
%
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
Beginning in the
first quarter of 2019, we changed our presentation of non-GAAP
measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and
transaction expenses. This historical information is being provided
for
comparative purposes. We are providing this historical information
for comparison purposes. We evaluate operational performance
and operating trends after excluding certain expenses incurred to
fulfill our acquisition strategy. M&A related costs are
excluded from
the prior year results to conform to the current year
presentation.
|
|
The above table
reports EBITDA and Adjusted EBITDA, which are non-GAAP financial
measures. Given the Company's focus on growth
through acquisitions, management believes EBITDA facilitates an
evaluation of 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.
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited and in
millions)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
Cash and cash
equivalents
|
$
|
49.1
|
|
|
$
|
43.0
|
|
Trade receivables,
net
|
354.7
|
|
|
323.7
|
|
Inventories
|
264.0
|
|
|
206.1
|
|
Other current
assets
|
57.3
|
|
|
45.7
|
|
Total current
assets
|
725.1
|
|
|
618.5
|
|
|
|
|
|
Property, plant and
equipment, net
|
264.5
|
|
|
239.7
|
|
Other
assets
|
929.2
|
|
|
584.3
|
|
Total
assets
|
$
|
1,918.8
|
|
|
$
|
1,442.5
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
1.6
|
|
|
$
|
0.5
|
|
Accounts payable,
trade and other
|
186.8
|
|
|
191.2
|
|
Advance and progress
payments
|
116.5
|
|
|
145.8
|
|
Other current
liabilities
|
167.9
|
|
|
147.8
|
|
Total current
liabilities
|
472.8
|
|
|
485.3
|
|
|
|
|
|
Long-term debt, less
current portion
|
768.7
|
|
|
387.1
|
|
|
|
|
|
Accrued pension and
other postretirement benefits, less current portion
|
61.2
|
|
|
72.5
|
|
Other
liabilities
|
92.4
|
|
|
40.7
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
227.6
|
|
|
226.9
|
|
Retained
earnings
|
493.9
|
|
|
416.5
|
|
Accumulated other
comprehensive loss
|
(197.8)
|
|
|
(186.5)
|
|
Total stockholders'
equity
|
523.7
|
|
|
456.9
|
|
Total liabilities and
stockholders' equity
|
$
|
1,918.8
|
|
|
$
|
1,442.5
|
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Income from
continuing operations
|
$
|
87.2
|
|
|
$
|
61.5
|
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
47.5
|
|
|
43.1
|
|
Other
|
12.1
|
|
|
(16.0)
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Trade accounts
receivable, net
|
(16.2)
|
|
|
(18.5)
|
|
Inventories
|
(18.5)
|
|
|
(49.2)
|
|
Accounts payable,
trade and other
|
(12.8)
|
|
|
16.4
|
|
Advance and progress
payments
|
(37.1)
|
|
|
17.3
|
|
Other - assets and
liabilities, net
|
(27.1)
|
|
|
(28.0)
|
|
|
|
|
|
Cash provided by
continuing operating activities
|
35.1
|
|
|
26.6
|
|
|
|
|
|
Cash required by
discontinued operating activities
|
(0.2)
|
|
|
(0.6)
|
|
|
|
|
|
Cash provided by
operating activities
|
34.9
|
|
|
26.0
|
|
|
|
|
|
Cash flows
required by investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(368.4)
|
|
|
(57.6)
|
|
Capital
expenditures
|
(29.2)
|
|
|
(28.5)
|
|
Other
|
1.3
|
|
|
1.8
|
|
|
|
|
|
Cash required by
investing activities
|
(396.3)
|
|
|
(84.3)
|
|
|
|
|
|
Cash flows
provided by financing activities:
|
|
|
|
Net proceeds on
credit facilities
|
388.1
|
|
|
107.4
|
|
Dividends
|
(9.5)
|
|
|
(9.8)
|
|
Other
|
(10.1)
|
|
|
(32.4)
|
|
|
|
|
|
Cash provided by
financing activities
|
368.5
|
|
|
65.2
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(1.0)
|
|
|
(2.4)
|
|
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
6.1
|
|
|
4.5
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
43.0
|
|
|
34.0
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
49.1
|
|
|
$
|
38.5
|
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
FREE CASH
FLOW
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
|
|
|
Cash provided
(required) by continuing operating activities
|
$
|
35.1
|
|
|
$
|
26.6
|
|
Less: capital
expenditures
|
29.2
|
|
|
28.5
|
|
Plus: proceeds from
sale of fixed assets
|
1.3
|
|
|
1.8
|
|
Plus: pension
contributions
|
7.2
|
|
|
18.3
|
|
Free cash flow
(FCF)
|
$
|
14.4
|
|
|
$
|
18.2
|
|
|
|
|
|
The above table
reports Free cash flow, which is a non-GAAP financial measure. We
use Free cash flow internally as a key indicator of our liquidity
and ability to service debt, invest in business combinations, and
return money to shareholders and believe this information is useful
to investors because it provides an understanding of the cash
available to fund these initiatives. For Free cash flow purposes we
consider contributions to pension plans to more comparable to
payment of debt, and therefore exclude these contributions from the
calculation of Free cash flow.
|
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
|
|
|
Full Year
2019
|
|
|
|
Diluted earnings per
share from continuing operations
|
|
$4.10 -
$4.20
|
|
|
|
Non-GAAP
adjustments:
|
|
|
Restructuring expense
(1)
|
|
0.40
|
M&A related
costs(2)
|
|
0.66
|
|
|
|
Impact on tax
provision from Non-GAAP adjustments(3)
|
|
(0.27)
|
Impact on tax
provision from repatriation (4)
|
|
(0.10)
|
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
|
$4.80 -
$4.90
|
|
|
|
|
|
|
(1) Restructuring
expense is estimated to be approximately $12 - 15 million for full
year 2019. The mid-point amount has been divided by our estimate of
32.1 million total shares and dilutive securities to derive
earnings per share.
|
|
|
|
(2) M&A related
costs are estimated to be approximately $22 million for full year
2019. The mid-point amount has been divided by our estimate of 32.1
million total shares and dilutive securities to derive earnings per
share. Beginning in the first quarter of 2019, we changed our
presentation of non-GAAP measures to exclude M&A related costs,
specifically amortization of inventory step up, integration costs,
and transaction expenses. We evaluate operational performance and
operating trends after excluding certain expenses incurred to
fulfill our acquisition strategy. M&A related costs are
excluded from the prior year results to conform to the current year
presentation.
|
|
|
|
(3) Impact on tax
provision was calculated using the Company's effective tax rate of
approximately 25%.
|
|
|
|
(4) We expect to
include a discrete tax benefit related to repatriation of
previously taxed income.
|
JBT
CORPORATION
|
ADJUSTMENTS DUE TO
ASC 606 BY SEGMENT FOR FISCAL YEAR 2018
|
(Unaudited and in
millions)
|
|
As
reported
|
|
|
|
|
|
|
|
|
|
Year-to-Date
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
December 31,
2018
|
Revenue
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
303.6
|
|
|
$
|
361.6
|
|
|
$
|
332.5
|
|
|
$
|
363.7
|
|
|
$
|
1,361.4
|
|
JBT
AeroTech
|
105.6
|
|
|
129.5
|
|
|
149.5
|
|
|
173.5
|
|
|
558.1
|
|
Other revenue and
intercompany eliminations
|
—
|
|
|
0.2
|
|
|
(0.1)
|
|
|
0.1
|
|
|
0.2
|
|
Total
revenue
|
$
|
409.2
|
|
|
$
|
491.3
|
|
|
$
|
481.9
|
|
|
$
|
537.3
|
|
|
$
|
1,919.7
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
21.5
|
|
|
$
|
47.4
|
|
|
$
|
41.9
|
|
|
$
|
58.7
|
|
|
$
|
169.5
|
|
JBT
AeroTech
|
7.9
|
|
|
14.7
|
|
|
17.6
|
|
|
23.9
|
|
|
64.1
|
|
Total segment
operating profit
|
$
|
29.4
|
|
|
$
|
62.1
|
|
|
$
|
59.5
|
|
|
$
|
82.6
|
|
|
$
|
233.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments due to
ASC 606
|
|
|
|
|
|
|
|
|
|
Year-to-Date
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
December 31,
2018
|
Revenue
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
(51.6)
|
|
|
$
|
(28.0)
|
|
|
$
|
(18.2)
|
|
|
$
|
(15.8)
|
|
|
$
|
(113.6)
|
|
JBT
AeroTech
|
1.1
|
|
|
(3.6)
|
|
|
0.4
|
|
|
(11.4)
|
|
|
(13.5)
|
|
Other revenue and
intercompany eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
revenue
|
$
|
(50.5)
|
|
|
$
|
(31.6)
|
|
|
$
|
(17.8)
|
|
|
$
|
(27.2)
|
|
|
$
|
(127.1)
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
(13.1)
|
|
|
$
|
(6.0)
|
|
|
$
|
(3.7)
|
|
|
$
|
(1.2)
|
|
|
$
|
(24.0)
|
|
JBT
AeroTech
|
0.1
|
|
|
(1.4)
|
|
|
(0.4)
|
|
|
(2.0)
|
|
|
(3.7)
|
|
Total segment
operating profit
|
$
|
(13.0)
|
|
|
$
|
(7.4)
|
|
|
$
|
(4.1)
|
|
|
$
|
(3.2)
|
|
|
$
|
(27.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts without
adoption
|
|
|
|
|
|
|
|
|
|
Year-to-Date
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
December 31,
2018
|
Revenue
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
252.0
|
|
|
$
|
333.6
|
|
|
$
|
314.3
|
|
|
$
|
347.9
|
|
|
$
|
1,247.8
|
|
JBT
AeroTech
|
106.7
|
|
|
125.9
|
|
|
149.9
|
|
|
162.1
|
|
|
544.6
|
|
Other revenue and
intercompany eliminations
|
—
|
|
|
0.2
|
|
|
(0.1)
|
|
|
0.1
|
|
|
0.2
|
|
Total
revenue
|
$
|
358.7
|
|
|
$
|
459.7
|
|
|
$
|
464.1
|
|
|
$
|
510.1
|
|
|
$
|
1,792.6
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
8.4
|
|
|
$
|
41.4
|
|
|
$
|
38.2
|
|
|
$
|
57.5
|
|
|
$
|
145.5
|
|
JBT
AeroTech
|
8.0
|
|
|
13.3
|
|
|
17.2
|
|
|
21.9
|
|
|
60.4
|
|
Total segment
operating profit
|
$
|
16.4
|
|
|
$
|
54.7
|
|
|
$
|
55.4
|
|
|
$
|
79.4
|
|
|
$
|
205.9
|
|
Investors & Media: Megan
Rattigan +1 312 861 6048
View original
content:http://www.prnewswire.com/news-releases/jbt-corporation-reports-third-quarter-2019-results-300946630.html
SOURCE JBT Corporation