CHICAGO, July 27, 2021 /PRNewswire/ --
Highlights:
- Revenue of $476 million and
earnings per share of $0.95, or
$1.19 as adjusted, exceeded
expectations
- Record orders increased 68 percent year over year and 19
percent sequentially with an expanding backlog
- Generated strong operating cash flow of $45 million and free cash flow of $35 million
- Completed acquisition of Prevenio in early
July
- Adjusting full-year guidance to reflect robust commercial
activity, increased cost pressures and supply chain
disruptions
JBT Corporation (NYSE: JBT), a leading global
technology solutions provider to high-value segments of the food
& beverage industry, today reported results for the second
quarter of 2021.
"While macro pressures associated with material inflation,
supply chain and logistics disruptions, and higher labor costs
intensified in the second quarter, we outperformed our expectations
in terms of revenue and earnings and generated record orders," said
Brian Deck, President and Chief
Executive Officer.
Comparisons in this news release are to the comparable period of
the prior year, unless otherwise noted.
Second Quarter 2021
"FoodTech revenue exceeded our guidance largely due to better
than expected shipments, while AeroTech margins outperformed due to
a favorable mix with higher recurring revenue," said
Matthew Meister, Executive Vice
President and Chief Financial Officer.
Second quarter 2021 revenue of $475.5
million increased 16 percent year over year. Operating
income was $47.3 million and net
income was $30.5 million, declining 1
percent and 6 percent, respectively. Adjusted EBITDA of
$70.1 million increased 2 percent
year over year while adjusted EBITDA margin declined 190 basis
points to 14.7 percent.
FoodTech revenue of $360.7 million
increased 19 percent year over year, with foreign exchange
translations accounting for 5 percentage points of the
year-over-year growth. Operating profit was $51.5 million. Adjusted EBITDA of $68.7 million increased 6 percent year over year
while adjusted EBITDA margin contracted 240 basis points to 19.0
percent.
AeroTech revenue of $114.8 million
increased 6 percent year over year. Operating profit was
$12.1 million. Adjusted EBITDA of
$12.7 million increased 8 percent
year over year while adjusted EBITDA margin increased 20 basis
points to 11.1 percent.
Corporate expense expanded 59 percent year over year, with the
absence of short-term cost savings in the year-ago period to
address sudden, Covid-related disruptions. Interest expense
declined 40 percent with lower debt levels and interest rates.
Diluted earnings per share from continuing operations was
$0.95 for the second quarter of 2021
compared with $1.01 for the second
quarter of 2020. Adjusted earnings per share were $1.19, compared with $1.09 in the year-ago period, including
$0.14 per share from a deferred tax
adjustment.
Second quarter 2021 record orders of $580.1 million expanded 51 percent at FoodTech
with a 48 percent increase in the backlog. AeroTech orders and
backlog increased 123 percent and 23 percent, respectively.
"At FoodTech, sustained demand from food processing customers
serving the retail market was complemented by recovering activity
on the foodservice side, as well as robust orders from our
automated guided vehicle business." added Deck. "AeroTech orders
continued to reflect healthy demand from infrastructure projects
along with seasonally strong cargo loader and deicer demand."
JBT generated cash from operations of $45
million and free cash flow of $35
million in the second quarter of 2021. Liquidity at quarter
end, which includes cash plus borrowing capacity, stood at
$491 million with a bank leverage
ratio of 2.0x net debt to EBITDA, as defined in the Company's
credit agreement.
In the second quarter of 2021, JBT completed a convertible note
offering providing net proceeds of $356
million. "The offering locks in a portion of JBT's capital
at historically low interest rates while providing the Company with
additional flexibility to execute on organic investments and
acquisitions," added Meister.
Acquisition of Prevenio
In early July 2021, JBT completed
the acquisition of Prevenio, a leading provider of innovative food
safety solutions, primarily for the poultry industry. "We are
extremely pleased with this acquisition that expands JBT's
recurring revenue stream and enhances our ability to address
critical food safety issues for customers," added Deck. Prevenio is
expected to generate annualized run rate revenue of approximately
$50 million by year-end 2021 with
accretive EBITDA margins to FoodTech.
Outlook
We have revised our full-year 2021 guidance to reflect strong
first-half results and order trends, partially offset by increased
inflationary pressures and supply chain challenges," concluded
Deck.
For full-year 2021, the Company raised revenue growth guidance
to 14 - 16 percent at FoodTech, including 2 percent from foreign
exchange translation and 2 percent from acquisitions. At the same
time, margin guidance range was updated with projected
operating margins of 14.0 - 14.75 percent and adjusted EBITDA
margins in the 19.0 - 19.75 percent range.
At AeroTech, the Company narrowed its revenue growth guidance to
1 - 4 percent compared to 2020. Operating and adjusted EBITDA
margin guidance remains unchanged at 10.75 - 11.25 percent and 12.0
- 12.5 percent, respectively.
All in, JBT expects total revenue expansion of 10 to 13 percent
for the full year.
Corporate expense is expected to be approximately 2.7 percent of
revenue. Interest expense for 2021 is forecasted at $9 million to $10
million and the tax rate is expected to be approximately 25
percent prior to a $4 million
discrete item associated with a UK tax law change.
Based on these forecasts, earnings per diluted share guidance
for full year 2021 is $4.15 -
$4.35 on a GAAP basis and
$4.60 - $4.80 on an adjusted basis.
Full-year, adjusted EBITDA is expected to be $280 million to $290
million.
For the third quarter of 2021, the Company expects revenue of
$485 million to $505 million. At FoodTech, projected growth of 19
- 20 percent includes 3 - 4 percent from acquisitions.
Year-over-year growth guidance for AeroTech is 15 - 16
percent.
The Company's third quarter 2021 guidance for operating margins
are 14 - 14.5 percent at FoodTech with adjusted EBITDA margins of
19 - 19.5 percent. For AeroTech, operating margins are forecasted
at 11.25 - 11.75 percent with adjusted EBITDA margins of 12.25 -
12.75 percent.
Third quarter 2021 earnings guidance is $1.00 - $1.10 on a
GAAP basis and $1.10 - $1.20 as adjusted.
Current issues, including the rate of vaccination and new
variants of the COVID-19 virus, could result in a slower recovery
than currently anticipated in the full-year 2021 outlook.
Second Quarter 2021 Earnings Conference Call
A conference call is scheduled for 10:00
a.m. ET on Wednesday, July 28, 2021, to discuss second
quarter results. Participants may access the conference call
through Online Registration:
http://www.directeventreg.com/registration/event/6067287. A
simultaneous webcast and audio replay of the call will be available
on the Company's Investor Relations website
https://ir.jbtc.com/events-and-presentations/.
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 6,200 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
JBT's ability to control. Forward-looking statements include, among
others, statements relating to the expected impact of the COVID-19
pandemic on our business and our results of operations, our plans
to mitigate the impact of the pandemic, our strategic plans, our
restructuring plans and expected cost savings from those plans, our
liquidity and our covenant compliance. The factors that could cause
our actual results to differ materially from expectations include
but are not limited to the following factors: the duration of
the COVID-19 pandemic and the effects of the pandemic on our
ability to operate our business and facilities, on our
customers, on our supply chains, on our cost of labor
due to higher labor turnover and shortage of skilled labor and on
the economy generally; fluctuations in our financial results;
unanticipated delays or acceleration in our sales cycles;
deterioration of economic conditions; disruptions in the political,
regulatory, economic and social conditions of the countries in
which we conduct business; changes to trade regulation, quotas,
duties or tariffs; risks associated with acquisitions; effects of
the U.K.'s exit from the E.U.; fluctuations in currency exchange
rates; difficulty in implementing our business strategies;
increases in energy or raw material prices, freight costs, and lack
of availability of raw materials driven by supply chain delays and
inflationary pressures; changes in food consumption patterns;
impacts of pandemic illnesses, food borne illnesses and diseases to
various agricultural products; weather conditions and natural
disasters; impact of climate change and environmental protection
initiatives; our ability to comply with the laws and regulations
governing our U.S. government contracts; acts of terrorism or war;
termination or loss of major customer contracts and risks
associated with fixed-price contracts; customer sourcing
initiatives; competition and innovation in our industries; our
ability to develop and introduce new or enhanced products and
services and keep pace with technological developments; difficulty
in developing, preserving and protecting our intellectual property
or defending claims of infringement; catastrophic loss at any of
our facilities and business continuity of our information systems;
cyber-security risks such as network intrusion or ransomware
schemes; loss of key management and other personnel; potential
liability arising out of the installation or use of our systems;
our ability to comply with U.S. and international laws governing
our operations and industries; increases in tax liabilities; work
stoppages; fluctuations in interest rates and returns on pension
assets; availability of and access to financial and other
resources; and other factors described under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's most recent
Annual Report on Form 10-K filed by JBT with the Securities
and Exchange Commission and in any subsequently filed Form
10-Q. In addition, many of our risks and uncertainties are
currently amplified by and will continue to be amplified by the
COVID-19 pandemic. Given the highly fluid nature of the COVID-19
pandemic, it is not possible to predict all such risks and
uncertainties. JBT cautions shareholders and prospective investors
that actual results may differ materially from those indicated by
the forward-looking statements. JBT undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future developments, subsequent
events or changes in circumstances or otherwise.
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 change 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.
Investors & Media: Kedric
Meredith 312.861.6034
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited and in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
475.5
|
|
|
$
|
411.5
|
|
|
$
|
893.3
|
|
|
$
|
869.2
|
|
Cost of
sales
|
325.6
|
|
|
281.3
|
|
|
610.2
|
|
|
596.0
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
149.9
|
|
|
130.2
|
|
|
283.1
|
|
|
273.2
|
|
Gross profit
%
|
31.5
|
%
|
|
31.6
|
%
|
|
31.7
|
%
|
|
31.4
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
101.6
|
|
|
80.5
|
|
|
196.0
|
|
|
177.8
|
|
Restructuring
expense
|
1.0
|
|
|
2.1
|
|
|
2.0
|
|
|
4.1
|
|
|
|
|
|
|
|
|
|
Operating
income
|
47.3
|
|
|
47.6
|
|
|
85.1
|
|
|
91.3
|
|
Operating income
%
|
9.9
|
%
|
|
11.6
|
%
|
|
9.5
|
%
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
Pension expense,
other than service cost
|
—
|
|
|
1.0
|
|
|
—
|
|
|
2.0
|
|
Net interest
expense
|
2.1
|
|
|
3.5
|
|
|
4.2
|
|
|
8.3
|
|
Income from
continuing operations before income taxes
|
45.2
|
|
|
43.1
|
|
|
80.9
|
|
|
81.0
|
|
Provision for income
taxes
|
14.7
|
|
|
10.6
|
|
|
23.4
|
|
|
19.5
|
|
Income from
continuing operations
|
30.5
|
|
|
32.5
|
|
|
57.5
|
|
|
61.5
|
|
Net income
|
$
|
30.5
|
|
|
$
|
32.5
|
|
|
$
|
57.5
|
|
|
$
|
61.5
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
0.95
|
|
|
$
|
1.02
|
|
|
$
|
1.80
|
|
|
$
|
1.92
|
|
Net income
|
$
|
0.95
|
|
|
$
|
1.02
|
|
|
$
|
1.80
|
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
0.95
|
|
|
$
|
1.01
|
|
|
$
|
1.79
|
|
|
$
|
1.92
|
|
Net income
|
$
|
0.95
|
|
|
$
|
1.01
|
|
|
$
|
1.79
|
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
32.0
|
|
|
32.0
|
|
|
32.0
|
|
|
31.9
|
|
Diluted
|
32.1
|
|
|
32.0
|
|
|
32.1
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
30.5
|
|
|
$
|
32.5
|
|
|
$
|
57.5
|
|
|
$
|
61.5
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Restructuring
expense
|
1.0
|
|
|
2.1
|
|
|
2.0
|
|
|
4.1
|
|
M&A related
cost(1)
|
3.5
|
|
|
1.0
|
|
|
4.9
|
|
|
3.5
|
|
Impact on tax
provision from Non-GAAP adjustments(2)
|
(1.1)
|
|
|
(0.7)
|
|
|
(1.7)
|
|
|
(1.8)
|
|
Impact on tax
provision from remeasurement of deferred taxes from material tax
rate changes
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
Adjusted income from
continuing operations
|
$
|
38.3
|
|
|
$
|
34.9
|
|
|
$
|
67.1
|
|
|
$
|
67.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
30.5
|
|
|
$
|
32.5
|
|
|
$
|
57.5
|
|
|
$
|
61.5
|
|
Total shares and
dilutive securities
|
32.1
|
|
|
32.0
|
|
|
32.1
|
|
|
32.1
|
|
Diluted earnings per
share from continuing operations
|
$
|
0.95
|
|
|
$
|
1.01
|
|
|
$
|
1.79
|
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
38.3
|
|
|
$
|
34.9
|
|
|
$
|
67.1
|
|
|
$
|
67.3
|
|
Total shares and
dilutive securities
|
32.1
|
|
|
32.0
|
|
|
32.1
|
|
|
32.1
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
1.19
|
|
|
$
|
1.09
|
|
|
$
|
2.09
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
(1) M&A related
costs include integration costs, amortization of inventory step-up
from business combinations, earn out adjustments to fair value,
advisory and transaction costs for both potential and completed
M&A transactions and strategy.
|
|
|
|
|
|
|
|
|
(2) Impact on income
tax provision was calculated using our annual effective tax rate of
24.4% and 23.8% for the quarters ended June 30, 2021 and 2020,
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Net income
|
$
|
30.5
|
|
|
$
|
32.5
|
|
|
$
|
57.5
|
|
|
$
|
61.5
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
30.5
|
|
|
32.5
|
|
|
57.5
|
|
|
61.5
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
14.7
|
|
|
10.6
|
|
|
23.4
|
|
|
19.5
|
|
Interest expense,
net
|
2.1
|
|
|
3.5
|
|
|
4.2
|
|
|
8.3
|
|
Depreciation and
amortization
|
18.3
|
|
|
17.7
|
|
|
36.6
|
|
|
35.2
|
|
|
|
|
|
|
|
|
|
EBITDA
|
65.6
|
|
|
64.3
|
|
|
121.7
|
|
|
124.5
|
|
|
|
|
|
|
|
|
|
Restructuring
expense
|
1.0
|
|
|
2.1
|
|
|
2.0
|
|
|
4.1
|
|
Pension expense,
other than service cost
|
—
|
|
|
1.0
|
|
|
—
|
|
|
2.0
|
|
M&A related
cost(1)
|
3.5
|
|
|
1.0
|
|
|
4.9
|
|
|
3.5
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
70.1
|
|
|
$
|
68.4
|
|
|
$
|
128.6
|
|
|
$
|
134.1
|
|
|
|
|
|
|
|
|
|
(1) M&A related
costs include integration costs, amortization of inventory step-up
from business combinations, earn out adjustments to fair value,
advisory and transaction costs for both potential and completed
M&A transactions and strategy.
|
|
|
|
|
|
|
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
360.7
|
|
$
|
302.8
|
|
$
|
672.5
|
|
$
|
612.5
|
JBT
AeroTech
|
114.8
|
|
108.7
|
|
220.8
|
|
256.7
|
Total
revenue
|
$
|
475.5
|
|
$
|
411.5
|
|
$
|
893.3
|
|
$
|
869.2
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
|
|
|
|
Segment operating
profit(1)(2):
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
51.5
|
|
$
|
49.0
|
|
$
|
93.0
|
|
$
|
89.7
|
JBT FoodTech
segment operating profit %
|
14.3%
|
|
16.2%
|
|
13.8%
|
|
14.6%
|
|
|
|
|
|
|
|
|
JBT
AeroTech
|
12.1
|
|
10.3
|
|
22.0
|
|
28.8
|
JBT AeroTech
segment operating profit %
|
10.5%
|
|
9.5%
|
|
10.0%
|
|
11.2%
|
|
|
|
|
|
|
|
|
Total segment
operating profit
|
63.6
|
|
59.3
|
|
115.0
|
|
118.5
|
Total segment
operating profit %
|
13.4%
|
|
14.4%
|
|
12.9%
|
|
13.6%
|
|
|
|
|
|
|
|
|
Corporate
expense
|
15.3
|
|
9.6
|
|
27.9
|
|
23.1
|
Restructuring
expense
|
1.0
|
|
2.1
|
|
2.0
|
|
4.1
|
Operating
income
|
$
|
47.3
|
|
$
|
47.6
|
|
$
|
85.1
|
|
$
|
91.3
|
Operating income
%
|
9.9%
|
|
11.6%
|
|
9.5%
|
|
10.5%
|
|
|
|
|
|
|
|
|
Other business
segment information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
Inbound
orders
|
2021
|
|
2020
|
|
2021
|
|
2020
|
JBT
FoodTech
|
$
|
397.6
|
|
$
|
262.7
|
|
$
|
783.3
|
|
$
|
578.2
|
JBT
AeroTech
|
182.5
|
|
81.9
|
|
282.9
|
|
236.5
|
Total inbound
orders
|
$
|
580.1
|
|
$
|
344.6
|
|
$
|
1,066.2
|
|
$
|
814.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
|
|
|
2021
|
|
2020
|
Order
Backlog
|
|
|
|
|
|
|
|
JBT
FoodTech
|
|
|
|
|
$
|
531.5
|
|
$
|
360.0
|
JBT
AeroTech
|
|
|
|
|
348.6
|
|
283.1
|
Total order
backlog
|
|
|
|
|
$
|
880.1
|
|
$
|
643.1
|
|
|
|
|
|
|
|
|
(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
June 30, 2021
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
51.5
|
|
|
$
|
12.1
|
|
|
$
|
(16.3)
|
|
|
$
|
47.3
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
M&A related
cost(1)
|
0.3
|
|
|
—
|
|
|
3.2
|
|
|
3.5
|
|
Adjusted operating
profit
|
51.8
|
|
|
12.1
|
|
|
(12.1)
|
|
|
51.8
|
|
Depreciation and
amortization
|
16.9
|
|
|
0.6
|
|
|
0.8
|
|
|
18.3
|
|
Adjusted
EBITDA
|
$
|
68.7
|
|
|
$
|
12.7
|
|
|
$
|
(11.3)
|
|
|
$
|
70.1
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
360.7
|
|
|
$
|
114.8
|
|
|
$
|
—
|
|
|
$
|
475.5
|
|
Operating profit
%
|
14.3
|
%
|
|
10.5
|
%
|
|
|
|
9.9
|
%
|
Adjusted operating
profit %
|
14.4
|
%
|
|
10.5
|
%
|
|
|
|
10.9
|
%
|
Adjusted EBITDA
%
|
19.0
|
%
|
|
11.1
|
%
|
|
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2021
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
93.0
|
|
|
$
|
22.0
|
|
|
$
|
(29.9)
|
|
|
$
|
85.1
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
2.0
|
|
|
2.0
|
|
M&A related
cost(1)
|
0.8
|
|
|
—
|
|
|
4.1
|
|
|
4.9
|
|
Adjusted operating
profit
|
93.8
|
|
|
22.0
|
|
|
(23.8)
|
|
|
92.0
|
|
Depreciation and
amortization
|
33.2
|
|
|
2.0
|
|
|
1.4
|
|
|
36.6
|
|
Adjusted
EBITDA
|
$
|
127.0
|
|
|
$
|
24.0
|
|
|
$
|
(22.4)
|
|
|
$
|
128.6
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
672.5
|
|
|
$
|
220.8
|
|
|
$
|
—
|
|
|
$
|
893.3
|
|
Operating profit
%
|
13.8
|
%
|
|
10.0
|
%
|
|
|
|
9.5
|
%
|
Adjusted operating
profit %
|
13.9
|
%
|
|
10.0
|
%
|
|
|
|
10.3
|
%
|
Adjusted EBITDA
%
|
18.9
|
%
|
|
10.9
|
%
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) M&A related
costs include integration costs, amortization of inventory step-up
from business combinations, earn out adjustments to fair value,
advisory and transaction costs for both potential and completed
M&A transactions and strategy.
|
|
|
|
|
|
|
|
|
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
June 30, 2020
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
49.0
|
|
|
10.3
|
|
|
(11.7)
|
|
|
47.6
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
2.1
|
|
|
2.1
|
|
M&A related
cost(1)
|
0.3
|
|
|
—
|
|
|
0.7
|
|
|
1.0
|
|
Adjusted operating
profit
|
49.3
|
|
|
10.3
|
|
|
(8.9)
|
|
|
50.7
|
|
Depreciation and
amortization
|
15.6
|
|
|
1.5
|
|
|
0.6
|
|
|
17.7
|
|
Adjusted
EBITDA
|
$
|
64.9
|
|
|
$
|
11.8
|
|
|
$
|
(8.3)
|
|
|
$
|
68.4
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
302.8
|
|
|
$
|
108.7
|
|
|
$
|
—
|
|
|
$
|
411.5
|
|
Operating profit
%
|
16.2
|
%
|
|
9.5
|
%
|
|
|
|
11.6
|
%
|
Adjusted operating
profit %
|
16.3
|
%
|
|
9.5
|
%
|
|
|
|
12.3
|
%
|
Adjusted EBITDA
%
|
21.4
|
%
|
|
10.9
|
%
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
89.7
|
|
|
$
|
28.8
|
|
|
$
|
(27.2)
|
|
|
$
|
91.3
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
4.1
|
|
|
4.1
|
|
M&A related
cost(1)
|
0.3
|
|
|
—
|
|
|
3.2
|
|
|
3.5
|
|
Adjusted operating
profit
|
90.0
|
|
|
28.8
|
|
|
(19.9)
|
|
|
98.9
|
|
Depreciation and
amortization
|
31.2
|
|
|
2.7
|
|
|
1.3
|
|
|
35.2
|
|
Adjusted
EBITDA
|
$
|
121.2
|
|
|
$
|
31.5
|
|
|
$
|
(18.6)
|
|
|
$
|
134.1
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
612.5
|
|
|
$
|
256.7
|
|
|
$
|
—
|
|
|
$
|
869.2
|
|
Operating profit
%
|
14.6
|
%
|
|
11.2
|
%
|
|
|
|
10.5
|
%
|
Adjusted operating
profit %
|
14.7
|
%
|
|
11.2
|
%
|
|
|
|
11.4
|
%
|
Adjusted EBITDA
%
|
19.8
|
%
|
|
12.3
|
%
|
|
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) M&A related
costs include integration costs, amortization of inventory step-up
from business combinations, earn out adjustments to fair value,
advisory and transaction costs for both potential and completed
M&A transactions and strategy.
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
|
|
|
Cash and cash
equivalents
|
$
|
202.3
|
|
|
$
|
47.5
|
|
Trade receivables,
net of allowances
|
307.1
|
|
|
304.4
|
|
Inventories
|
204.1
|
|
|
197.3
|
|
Other current
assets
|
64.6
|
|
|
66.9
|
|
Total current
assets
|
778.1
|
|
|
616.1
|
|
|
|
|
|
Property, plant and
equipment, net
|
267.8
|
|
|
268.0
|
|
Other
assets
|
930.4
|
|
|
921.8
|
|
Total
assets
|
$
|
1,976.3
|
|
|
$
|
1,805.9
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
0.6
|
|
|
$
|
2.4
|
|
Accounts payable,
trade and other
|
177.9
|
|
|
140.7
|
|
Advance and progress
payments
|
144.9
|
|
|
137.5
|
|
Other current
liabilities
|
155.5
|
|
|
176.9
|
|
Total current
liabilities
|
478.9
|
|
|
457.5
|
|
|
|
|
|
Long-term debt, less
current portion
|
641.1
|
|
|
522.5
|
|
Accrued pension and
other post-retirement benefits, less current portion
|
88.8
|
|
|
94.1
|
|
Other
liabilities
|
81.8
|
|
|
94.7
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
212.3
|
|
|
229.2
|
|
Retained
earnings
|
678.9
|
|
|
627.8
|
|
Accumulated other
comprehensive loss
|
(205.5)
|
|
|
(219.9)
|
|
Total stockholders
equity
|
685.7
|
|
|
637.1
|
|
Total Liabilities and
Stockholders Equity
|
$
|
1,976.3
|
|
|
$
|
1,805.9
|
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Income from continuing
operations
|
$
|
57.5
|
|
|
$
|
61.5
|
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
36.6
|
|
|
35.2
|
|
Other
|
6.5
|
|
|
6.2
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Trade accounts
receivable, net
|
(2.8)
|
|
|
53.5
|
|
Inventories
|
(11.0)
|
|
|
2.6
|
|
Accounts payable,
trade and other
|
37.6
|
|
|
(46.2)
|
|
Advance and progress
payments
|
8.4
|
|
|
(3.5)
|
|
Other - assets and
liabilities, net
|
(2.5)
|
|
|
(8.3)
|
|
|
|
|
|
Cash provided by
continuing operating activities
|
130.3
|
|
|
101.0
|
|
Cash provided by
operating activities
|
130.3
|
|
|
101.0
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(15.9)
|
|
|
(4.5)
|
|
Capital
expenditures
|
(20.3)
|
|
|
(16.2)
|
|
Other
|
1.7
|
|
|
1.7
|
|
|
|
|
|
Cash required by
investing activities
|
(34.5)
|
|
|
(19.0)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Net payments on credit
facilities
|
(271.9)
|
|
|
(51.7)
|
|
Proceeds from issuance
of 2026 convertible senior notes, net of issuance costs
|
392.2
|
|
|
—
|
|
Purchase of
convertible bond hedge
|
(65.6)
|
|
|
—
|
|
Proceeds from sale of
warrants
|
29.5
|
|
|
—
|
|
Dividends
|
(6.3)
|
|
|
(6.3)
|
|
Payment of acquisition
date earnout liability
|
(16.1)
|
|
|
—
|
|
Other
|
(2.0)
|
|
|
(2.2)
|
|
|
|
|
|
Cash provided
(required) by financing activities
|
59.8
|
|
|
(60.2)
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(0.8)
|
|
|
(3.3)
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
154.8
|
|
|
18.5
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
47.5
|
|
|
39.5
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
202.3
|
|
|
$
|
58.0
|
|
|
|
|
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
FREE CASH
FLOW
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
|
|
|
Cash provided by
continuing operating activities
|
$
|
130.3
|
|
|
$
|
101.0
|
|
Less: capital
expenditures
|
20.3
|
|
|
16.2
|
|
Plus: proceeds from
sale of fixed assets
|
1.7
|
|
|
1.7
|
|
Plus: pension
contributions
|
0.5
|
|
|
0.4
|
|
Free cash flow
(FCF)
|
$
|
112.2
|
|
|
$
|
86.9
|
|
|
|
|
|
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
|
NET DEBT
CALCULATION
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
Change
from
|
|
Change
from
|
|
2021
|
|
2020
|
|
2020
|
|
Prior
Year-End
|
|
Prior
Year
|
Total debt
|
$
|
641.7
|
|
|
$
|
524.9
|
|
|
$
|
647.7
|
|
|
$
|
116.8
|
|
|
$
|
(6.0)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
(202.3)
|
|
|
(47.5)
|
|
|
(58.0)
|
|
|
(154.8)
|
|
|
(144.3)
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
$
|
439.4
|
|
|
$
|
477.4
|
|
|
$
|
589.7
|
|
|
$
|
(38.0)
|
|
|
$
|
(150.3)
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BANK LEVERAGE
RATIO CALCULATION
|
(Unaudited and in
millions)
|
|
|
|
|
|
Four Quarters
Ended
|
|
June 30,
2021
|
Total debt
|
$
|
641.7
|
|
Cash and cash
equivalents
|
(202.3)
|
|
Other items
considered debt under the credit agreement
|
24.5
|
|
Consolidated total
indebtedness(1)
|
$
|
463.9
|
|
|
|
Last four quarters
Adjusted EBITDA
|
$
|
254.0
|
|
Other adjustments net
to earnings under the credit agreement
|
(18.5)
|
|
Consolidated
EBITDA(1)
|
$
|
235.5
|
|
|
|
Bank leverage
ratio (Consolidated Total Indebtedness / Consolidated
EBITDA)
|
2.0
|
|
|
|
(1) As defined in the
credit agreement
|
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
|
|
Q3
2021
|
|
Full Year
2021
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$1.00 -
1.10
|
|
$4.15 -
4.35
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
Restructuring
expense(1)
|
0.05
|
|
0.12
|
M&A related
costs(2)
|
0.08
|
|
0.28
|
|
|
|
|
Impact on tax
provision from Non-GAAP adjustments(3)
|
(0.03)
|
|
(0.09)
|
Impact on tax
provision from remeasurement of deferred taxes from material tax
rate changes
|
—
|
|
0.14
|
|
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
$1.10 -
1.20
|
|
$4.60 -
4.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restructuring
expense is estimated to be approximately $1-2 million and $3-4
million for the third quarter 2021 and full year 2021,
respectively. 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 $2-3 million and $8-9
million for the third quarter 2021 and full year 2021,
respectively. The mid-point amount has been divided by our estimate
of 32.1 million total shares and dilutive securities to derive
earnings per share.
|
|
|
|
|
(3) Impact on tax
provision was calculated using the Company's effective tax rate of
approximately 25%.
|
View original
content:https://www.prnewswire.com/news-releases/jbt-corporation-reports-second-quarter-2021-results-301342534.html
SOURCE JBT Corporation