CHICAGO, Oct. 27, 2021 /PRNewswire/ --
Highlights:
- Revenue of $477 million and
earnings per share of $0.91, or
$1.02 as adjusted
- Orders increased 24 percent year over year with expansion
at FoodTech and AeroTech
- Generated strong operating cash flow of $33 million and free cash flow of $32 million
- Adjusting full-year guidance to reflect impact from
supply chain disruptions and labor challenges
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 2021.
"JBT continued to enjoy robust demand for our products and
services in the third quarter of 2021," said Brian Deck, President and Chief Executive
Officer. "At the same time, intensifying macro pressures, including
material cost inflation, supply chain and logistics disruptions,
and labor cost inflation and shortages caused us to fall short of
expectations."
Comparisons in this news release are to the comparable period of
the prior year, unless otherwise noted.
Third Quarter 2021
"FoodTech was largely able to mitigate the supply chain and
inflationary challenges, posting revenue in line with our guidance
and margins slightly below our expectations," said Matt Meister, Executive Vice President and Chief
Financial Officer. "AeroTech fell well short of expectations as
shortages of critical raw material, components, and labor impeded
our ability to build and ship equipment and increased the overall
cost of running the business."
Third quarter 2021 revenue of $477
million increased 14 percent year over year. Operating
income was $41 million and net income
was $29 million. Adjusted EBITDA of
$65 million increased 9 percent year
over year while adjusted EBITDA margin declined 50 basis points to
13.7 percent.
FoodTech revenue of $359 million
increased 19 percent year over year, with acquisitions and foreign
currency translation accounting for 4 percent and 1 percent,
respectively. Operating profit was $49
million. Adjusted EBITDA of $67
million increased 23 percent year over year while adjusted
EBITDA margin expanded 60 basis points to 18.7 percent.
AeroTech revenue of $118 million
was flat year over year. Operating profit was $7 million. Adjusted EBITDA of $8 million declined $6
million year over year while adjusted EBITDA margin
contracted 550 basis points to 6.9 percent.
Corporate expense increased 3 percent year over year while
interest expense declined 28 percent.
Diluted earnings per share from continuing operations was
$0.91 for the third quarter of 2021
compared with $0.54 for the third
quarter of 2020. Adjusted earnings per share were $1.02, compared with $0.83 in the year-ago period.
Third quarter 2021 orders expanded 23 percent at FoodTech with a
45 percent increase in backlog compared with the year-ago period.
AeroTech orders and backlog increased 25 percent and 34 percent,
respectively.
"At FoodTech, we enjoyed a good balance of demand between retail
and foodservice-oriented customers, growth across all geographic
regions, and particularly strong demand for automation solutions
that reduce labor input," added Deck. "AeroTech orders continued to
reflect healthy demand from infrastructure, cargo, and defense
markets with incremental improvement from commercial airlines."
JBT generated cash from operations of $33
million and free cash flow of $32
million in the third quarter of 2021. Liquidity at quarter
end, which includes cash plus borrowing capacity, stood at
$388 million with a leverage ratio of
2.3x net debt to trailing twelve months adjusted EBITDA.
As previously announced, JBT completed the acquisition of
Prevenio early in the third quarter. "We are very excited about the
opportunity to grow Prevenio's food safety solutions by leveraging
JBT's highly diversified customer base and global sales and service
capabilities," said Deck.
Outlook
"We have adjusted our full-year 2021 guidance to reflect greater
than anticipated supply chain, labor, and inflationary pressures,"
concluded Deck.
For full-year 2021, the Company expects revenue growth of 13.5 -
14.5 percent at FoodTech, including 1 - 2 percent each from
acquisitions and foreign currency translation. Operating margins
are projected at 13.75 - 14.0 percent with adjusted EBITDA margins
in the 18.75 - 19.0 percent range.
At AeroTech, the Company anticipates a revenue decline of
approximately 3 percent compared to 2020. Operating and adjusted
EBITDA margin guidance is 7.75 - 8.25 percent and 8.75 - 9.25
percent, respectively.
All in, JBT expects total revenue expansion of 9 to 10 percent
for the full year.
Corporate expense is expected to be approximately 2.6 percent of
revenue. Interest expense for 2021 is forecasted at $9 million and the tax rate is expected to be
approximately 24.5 percent, excluding discrete
items.
Based on these forecasts, earnings per diluted share guidance
for full year 2021 is $3.70 -
$3.80 on a GAAP basis and
$4.15 - $4.25 on an adjusted basis.
Full-year, adjusted EBITDA is expected to be $255 million to $265
million.
"Based on record backlog, we believe FoodTech has an attractive
revenue set up for 2022," concluded Deck. "At AeroTech, given its
near record backlog, we anticipate revenue growth in the low double
digits to mid-teens in 2022."
Third Quarter 2021 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET on Thursday, October 28, 2021, to discuss third
quarter results. Participants may access the conference call
through Online Registration:
http://www.directeventreg.com/registration/event/5675961. 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/.
Earnings Presentation
An earnings presentation is also 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 6,400 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
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 due to extended
delivery times and unavailability of required components and
freight, 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, the unavailability of
required components, 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,
particularly during periods of high inflation; 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
477.4
|
|
|
$
|
419.2
|
|
|
$
|
1,370.7
|
|
|
$
|
1,288.4
|
|
Cost of
sales
|
334.9
|
|
|
292.0
|
|
|
945.1
|
|
|
888.0
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
142.5
|
|
|
127.2
|
|
|
425.6
|
|
|
400.4
|
|
Gross profit
%
|
29.8
|
%
|
|
30.3
|
%
|
|
31.0
|
%
|
|
31.1
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
100.9
|
|
|
91.8
|
|
|
296.9
|
|
|
269.6
|
|
Restructuring
expense
|
1.1
|
|
|
7.1
|
|
|
3.1
|
|
|
11.2
|
|
|
|
|
|
|
|
|
|
Operating
income
|
40.5
|
|
|
28.3
|
|
|
125.6
|
|
|
119.6
|
|
Operating income
%
|
8.5
|
%
|
|
6.8
|
%
|
|
9.2
|
%
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
Pension expense,
other than service cost
|
0.1
|
|
|
1.1
|
|
|
0.1
|
|
|
3.1
|
|
Net interest
expense
|
2.1
|
|
|
2.9
|
|
|
6.3
|
|
|
11.2
|
|
Income from
continuing operations before income taxes
|
38.3
|
|
|
24.3
|
|
|
119.2
|
|
|
105.3
|
|
Provision for income
taxes
|
9.0
|
|
|
7.1
|
|
|
32.4
|
|
|
26.6
|
|
Income from
continuing operations
|
29.3
|
|
|
17.2
|
|
|
86.8
|
|
|
78.7
|
|
Net income
|
$
|
29.3
|
|
|
$
|
17.2
|
|
|
$
|
86.8
|
|
|
$
|
78.7
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
0.91
|
|
|
$
|
0.54
|
|
|
$
|
2.71
|
|
|
$
|
2.46
|
|
Net income
|
$
|
0.91
|
|
|
$
|
0.54
|
|
|
$
|
2.71
|
|
|
$
|
2.46
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
0.91
|
|
|
$
|
0.54
|
|
|
$
|
2.71
|
|
|
$
|
2.45
|
|
Net income
|
$
|
0.91
|
|
|
$
|
0.54
|
|
|
$
|
2.71
|
|
|
$
|
2.45
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
32.0
|
|
|
32.0
|
|
|
32.0
|
|
|
32.0
|
|
Diluted
|
32.1
|
|
|
32.1
|
|
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
29.3
|
|
|
$
|
17.2
|
|
|
$
|
86.8
|
|
|
$
|
78.7
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
1.1
|
|
|
7.1
|
|
|
3.1
|
|
|
11.2
|
|
Inventory impairment
due to restructuring
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
M&A related
cost(1)
|
3.6
|
|
|
0.9
|
|
|
8.5
|
|
|
4.4
|
|
Management succession
costs(2)
|
—
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
Impact on tax
provision from Non-GAAP adjustments(3)
|
(1.1)
|
|
|
(4.0)
|
|
|
(2.8)
|
|
|
(5.9)
|
|
Impact on tax
provision from remeasurement of deferred taxes from
material tax rate changes
|
—
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
Adjusted income from
continuing operations
|
$
|
32.9
|
|
|
$
|
26.6
|
|
|
$
|
100.0
|
|
|
$
|
93.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
$
|
29.3
|
|
|
$
|
17.2
|
|
|
$
|
86.8
|
|
|
$
|
78.7
|
|
Total shares and
dilutive securities
|
32.1
|
|
|
32.1
|
|
|
32.1
|
|
|
32.1
|
|
Diluted earnings per
share from continuing operations
|
$
|
0.91
|
|
|
$
|
0.54
|
|
|
$
|
2.71
|
|
|
$
|
2.45
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
32.9
|
|
|
$
|
26.6
|
|
|
$
|
100.0
|
|
|
$
|
93.8
|
|
Total shares and
dilutive securities
|
32.1
|
|
|
32.1
|
|
|
32.1
|
|
|
32.1
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
1.02
|
|
|
$
|
0.83
|
|
|
$
|
3.12
|
|
|
$
|
2.92
|
|
|
|
|
|
|
|
|
|
(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) In the third
quarter of 2020, we adjusted certain of our non-GAAP financial
measures for management succession costs relating to severance
paid to our former CEO, net of the reversal of stock based
compensation expense for forfeited equity awards and costs related
to filling
executive positions.
|
|
(3) Impact on income
tax provision was calculated using our annual effective tax rate of
24.2% and 24.7% for the quarters ended September 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Net income
|
$
|
29.3
|
|
|
$
|
17.2
|
|
|
$
|
86.8
|
|
|
$
|
78.7
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations as reported
|
29.3
|
|
|
17.2
|
|
|
86.8
|
|
|
78.7
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
9.0
|
|
|
7.1
|
|
|
32.4
|
|
|
26.6
|
|
Interest expense,
net
|
2.1
|
|
|
2.9
|
|
|
6.3
|
|
|
11.2
|
|
Depreciation and
amortization
|
20.0
|
|
|
18.0
|
|
|
56.6
|
|
|
53.2
|
|
|
|
|
|
|
|
|
|
EBITDA
|
60.4
|
|
|
45.2
|
|
|
182.1
|
|
|
169.7
|
|
|
|
|
|
|
|
|
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
1.1
|
|
|
7.1
|
|
|
3.1
|
|
|
11.2
|
|
Inventory impairment
due to restructuring
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
Pension expense,
other than service cost
|
0.1
|
|
|
1.1
|
|
|
0.1
|
|
|
3.1
|
|
M&A related
cost(1)
|
3.6
|
|
|
0.9
|
|
|
8.5
|
|
|
4.4
|
|
Management succession
costs(2)
|
—
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
65.2
|
|
|
$
|
59.7
|
|
|
$
|
193.8
|
|
|
$
|
193.8
|
|
|
|
|
|
|
|
|
|
(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) In the third
quarter of 2020, we adjusted certain of our non-GAAP financial
measures for management succession costs relating to severance paid
to our former CEO, net of the reversal of stock based compensation
expense for forfeited equity awards and costs related to filling
executive positions.
|
|
|
|
|
|
|
|
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
359.1
|
|
$
|
301.0
|
|
$
|
1,031.6
|
|
$
|
913.5
|
JBT
AeroTech
|
118.3
|
|
118.2
|
|
339.1
|
|
374.9
|
Total
revenue
|
$
|
477.4
|
|
$
|
419.2
|
|
$
|
1,370.7
|
|
$
|
1,288.4
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
|
|
|
|
Segment operating
profit(1)(2):
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
48.9
|
|
$
|
37.9
|
|
$
|
141.9
|
|
$
|
127.6
|
JBT FoodTech
segment operating profit %
|
13.6%
|
|
12.6%
|
|
13.8%
|
|
14.0%
|
|
|
|
|
|
|
|
|
JBT
AeroTech
|
7.0
|
|
11.4
|
|
29.0
|
|
40.2
|
JBT AeroTech
segment operating profit %
|
5.9%
|
|
9.6%
|
|
8.6%
|
|
10.7%
|
|
|
|
|
|
|
|
|
Total segment
operating profit
|
55.9
|
|
49.3
|
|
170.9
|
|
167.8
|
Total segment
operating profit %
|
11.7%
|
|
11.8%
|
|
12.5%
|
|
13.0%
|
|
|
|
|
|
|
|
|
Corporate
expense
|
14.3
|
|
13.9
|
|
42.2
|
|
37.0
|
Restructuring
expense
|
1.1
|
|
7.1
|
|
3.1
|
|
11.2
|
Operating
income
|
$
|
40.5
|
|
$
|
28.3
|
|
$
|
125.6
|
|
$
|
119.6
|
Operating income
%
|
8.5%
|
|
6.8%
|
|
9.2%
|
|
9.3%
|
|
|
|
|
|
|
|
|
Other business
segment information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
Inbound
orders
|
2021
|
|
2020
|
|
2021
|
|
2020
|
JBT
FoodTech
|
$
|
382.0
|
|
$
|
310.4
|
|
$
|
1,165.3
|
|
$
|
888.6
|
JBT
AeroTech
|
138.7
|
|
110.8
|
|
421.6
|
|
347.3
|
Total inbound
orders
|
$
|
520.7
|
|
$
|
421.2
|
|
$
|
1,586.9
|
|
$
|
1,235.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30,
|
|
|
|
|
|
2021
|
|
2020
|
Order
Backlog
|
|
|
|
|
|
|
|
JBT
FoodTech
|
|
|
|
|
$
|
544.7
|
|
$
|
376.8
|
JBT
AeroTech
|
|
|
|
|
369.3
|
|
276.4
|
Total order
backlog
|
|
|
|
|
$
|
914.0
|
|
$
|
653.2
|
|
|
|
|
|
|
|
|
(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, 2021
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
48.9
|
|
|
$
|
7.0
|
|
|
$
|
(15.4)
|
|
|
$
|
40.5
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
M&A related
cost(1)
|
0.3
|
|
|
—
|
|
|
3.3
|
|
|
3.6
|
|
Adjusted operating
profit
|
49.2
|
|
|
7.0
|
|
|
(11.0)
|
|
|
45.2
|
|
Depreciation and
amortization
|
17.9
|
|
|
1.2
|
|
|
0.9
|
|
|
20.0
|
|
Adjusted
EBITDA
|
$
|
67.1
|
|
|
$
|
8.2
|
|
|
$
|
(10.1)
|
|
|
$
|
65.2
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
359.1
|
|
|
$
|
118.3
|
|
|
$
|
—
|
|
|
$
|
477.4
|
|
Operating profit
%
|
13.6
|
%
|
|
5.9
|
%
|
|
|
|
8.5
|
%
|
Adjusted operating
profit %
|
13.7
|
%
|
|
5.9
|
%
|
|
|
|
9.5
|
%
|
Adjusted EBITDA
%
|
18.7
|
%
|
|
6.9
|
%
|
|
|
|
13.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2021
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
141.9
|
|
|
$
|
29.0
|
|
|
$
|
(45.3)
|
|
|
$
|
125.6
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
3.1
|
|
|
3.1
|
|
M&A related
cost(1)
|
1.1
|
|
|
—
|
|
|
7.4
|
|
|
8.5
|
|
Adjusted operating
profit
|
143.0
|
|
|
29.0
|
|
|
(34.8)
|
|
|
137.2
|
|
Depreciation and
amortization
|
51.1
|
|
|
3.2
|
|
|
2.3
|
|
|
56.6
|
|
Adjusted
EBITDA
|
$
|
194.1
|
|
|
$
|
32.2
|
|
|
$
|
(32.5)
|
|
|
$
|
193.8
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
1,031.6
|
|
|
$
|
339.1
|
|
|
$
|
—
|
|
|
$
|
1,370.7
|
|
Operating profit
%
|
13.8
|
%
|
|
8.6
|
%
|
|
|
|
9.2
|
%
|
Adjusted operating
profit %
|
13.9
|
%
|
|
8.6
|
%
|
|
|
|
10.0
|
%
|
Adjusted EBITDA
%
|
18.8
|
%
|
|
9.5
|
%
|
|
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
37.9
|
|
|
11.4
|
|
|
(21.0)
|
|
|
28.3
|
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
7.1
|
|
|
7.1
|
|
Inventory impairment
due to restructuring
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
M&A related
cost(1)
|
0.7
|
|
|
—
|
|
|
0.2
|
|
|
0.9
|
|
Management succession
costs(2)
|
—
|
|
|
—
|
|
|
3.5
|
|
|
3.5
|
|
Adjusted operating
profit
|
38.6
|
|
|
13.3
|
|
|
(10.2)
|
|
|
41.7
|
|
Depreciation and
amortization
|
16.0
|
|
|
1.3
|
|
|
0.7
|
|
|
18.0
|
|
Adjusted
EBITDA
|
$
|
54.6
|
|
|
$
|
14.6
|
|
|
$
|
(9.5)
|
|
|
$
|
59.7
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
301.0
|
|
|
$
|
118.2
|
|
|
$
|
—
|
|
|
$
|
419.2
|
|
Operating profit
%
|
12.6
|
%
|
|
9.6
|
%
|
|
|
|
6.8
|
%
|
Adjusted operating
profit %
|
12.8
|
%
|
|
11.3
|
%
|
|
|
|
9.9
|
%
|
Adjusted EBITDA
%
|
18.1
|
%
|
|
12.4
|
%
|
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
|
127.6
|
|
|
$
|
40.2
|
|
|
$
|
(48.2)
|
|
|
$
|
119.6
|
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
—
|
|
|
—
|
|
|
11.2
|
|
|
11.2
|
|
Inventory impairment
due to restructuring
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
M&A related
cost(1)
|
1.0
|
|
|
—
|
|
|
3.4
|
|
|
4.4
|
|
Management succession
costs(2)
|
—
|
|
|
—
|
|
|
3.5
|
|
|
3.5
|
|
Adjusted operating
profit
|
128.6
|
|
|
42.1
|
|
|
(30.1)
|
|
|
140.6
|
|
Depreciation and
amortization
|
47.2
|
|
|
4.0
|
|
|
2.0
|
|
|
53.2
|
|
Adjusted
EBITDA
|
$
|
175.8
|
|
|
$
|
46.1
|
|
|
$
|
(28.1)
|
|
|
$
|
193.8
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
913.5
|
|
|
$
|
374.9
|
|
|
$
|
—
|
|
|
$
|
1,288.4
|
|
Operating profit
%
|
14.0
|
%
|
|
10.7
|
%
|
|
|
|
9.3
|
%
|
Adjusted operating
profit %
|
14.1
|
%
|
|
11.2
|
%
|
|
|
|
10.9
|
%
|
Adjusted EBITDA
%
|
19.2
|
%
|
|
12.3
|
%
|
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) In the third
quarter of 2020, we adjusted certain of our non-GAAP financial
measures for management succession costs relating to severance paid
to our former CEO, net of the reversal of stock based compensation
expense for forfeited equity awards and costs related to filling
executive positions.
|
|
|
|
|
|
|
|
|
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,
|
|
2021
|
|
2020
|
|
|
|
|
Cash and cash
equivalents
|
$
|
58.2
|
|
|
$
|
47.5
|
|
Trade receivables,
net of allowances
|
319.7
|
|
|
304.4
|
|
Inventories
|
217.9
|
|
|
197.3
|
|
Other current
assets
|
68.6
|
|
|
66.9
|
|
Total current
assets
|
664.4
|
|
|
616.1
|
|
|
|
|
|
Property, plant and
equipment, net
|
268.3
|
|
|
268.0
|
|
Other
assets
|
1,105.8
|
|
|
921.8
|
|
Total
assets
|
$
|
2,038.5
|
|
|
$
|
1,805.9
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
0.3
|
|
|
$
|
2.4
|
|
Accounts payable,
trade and other
|
183.4
|
|
|
140.7
|
|
Advance and progress
payments
|
157.1
|
|
|
137.5
|
|
Other current
liabilities
|
162.0
|
|
|
176.9
|
|
Total current
liabilities
|
502.8
|
|
|
457.5
|
|
Long-term debt, less
current portion
|
652.9
|
|
|
522.5
|
|
|
|
|
|
Accrued pension and
other post-retirement benefits, less current portion
|
74.1
|
|
|
94.1
|
|
Other
liabilities
|
101.4
|
|
|
94.7
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
214.6
|
|
|
229.2
|
|
Retained
earnings
|
705.0
|
|
|
627.8
|
|
Accumulated other
comprehensive loss
|
(212.3)
|
|
|
(219.9)
|
|
Total stockholders
equity
|
707.3
|
|
|
637.1
|
|
Total Liabilities and
Stockholders Equity
|
$
|
2,038.5
|
|
|
$
|
1,805.9
|
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Income from continuing
operations
|
$
|
86.8
|
|
|
$
|
78.7
|
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
56.6
|
|
|
53.2
|
|
Other
|
9.5
|
|
|
9.1
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Trade accounts
receivable, net
|
(16.1)
|
|
|
54.5
|
|
Inventories
|
(26.6)
|
|
|
14.4
|
|
Accounts payable,
trade and other
|
40.0
|
|
|
(46.6)
|
|
Advance and progress
payments
|
22.7
|
|
|
4.2
|
|
Other - assets and
liabilities, net
|
(9.6)
|
|
|
(6.4)
|
|
|
|
|
|
Cash provided by
continuing operating activities
|
163.3
|
|
|
161.1
|
|
Cash provided by
operating activities
|
163.3
|
|
|
161.1
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(185.3)
|
|
|
(4.5)
|
|
Capital
expenditures
|
(33.9)
|
|
|
(22.7)
|
|
Other
|
2.0
|
|
|
1.2
|
|
|
|
|
|
Cash required by
investing activities
|
(217.2)
|
|
|
(26.0)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Net payments on credit
facilities
|
(260.8)
|
|
|
(109.6)
|
|
Proceeds from issuance
of 2026 convertible senior notes, net of issuance costs
|
391.5
|
|
|
—
|
|
Purchase of
convertible bond hedge
|
(65.6)
|
|
|
—
|
|
Proceeds from sale of
warrants
|
29.5
|
|
|
—
|
|
Dividends
|
(9.5)
|
|
|
(9.5)
|
|
Payment of acquisition
date earnout liability
|
(16.1)
|
|
|
—
|
|
Other
|
(2.1)
|
|
|
(2.2)
|
|
|
|
|
|
Cash provided
(required) by financing activities
|
66.9
|
|
|
(121.3)
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(2.3)
|
|
|
(2.7)
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
10.7
|
|
|
11.1
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
47.5
|
|
|
39.5
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
58.2
|
|
|
$
|
50.6
|
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
FREE CASH
FLOW
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
|
|
|
Cash provided by
continuing operating activities
|
$
|
163.3
|
|
|
$
|
161.1
|
|
Less: capital
expenditures
|
33.9
|
|
|
22.7
|
|
Plus: proceeds from
sale of fixed assets
|
2.0
|
|
|
1.2
|
|
Plus: pension
contributions
|
12.3
|
|
|
0.6
|
|
Free cash flow
(FCF)
|
$
|
143.7
|
|
|
$
|
140.2
|
|
|
|
|
|
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 be 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
Change
from
|
|
Change
from
|
|
2021
|
|
2020
|
|
2020
|
|
Prior
Year-End
|
|
Prior
Year
|
Total debt
|
$
|
653.2
|
|
|
$
|
524.9
|
|
|
$
|
598.2
|
|
|
$
|
128.3
|
|
|
$
|
55.0
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
(58.2)
|
|
|
(47.5)
|
|
|
(50.6)
|
|
|
(10.7)
|
|
|
(7.6)
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
$
|
595.0
|
|
|
$
|
477.4
|
|
|
$
|
547.6
|
|
|
$
|
117.6
|
|
|
$
|
47.4
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BANK LEVERAGE
RATIO CALCULATION
|
(Unaudited and in
millions)
|
|
|
|
|
|
Four Quarters
Ended
|
|
September 30,
2021
|
Total debt
|
$
|
653.2
|
|
Cash and cash
equivalents
|
(58.2)
|
|
Other items
considered debt under the credit agreement
|
28.2
|
|
Consolidated total
indebtedness(1)
|
$
|
623.2
|
|
|
|
Last four quarters
Adjusted EBITDA
|
$
|
259.5
|
|
Other adjustments net
to earnings under the credit agreement
|
(10.8)
|
|
Consolidated
EBITDA(1)
|
$
|
248.7
|
|
|
|
Bank leverage
ratio (Consolidated Total Indebtedness / Consolidated
EBITDA)
|
2.5
|
|
|
|
(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
|
|
Q4
2021
|
|
Full Year
2021
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$1.00 -
$1.10
|
|
$3.70 -
$3.80
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
Restructuring
expense(1)
|
0.03
|
|
0.12
|
M&A related
costs(2)
|
0.04
|
|
0.28
|
|
|
|
|
Impact on tax
provision from Non-GAAP adjustments(3)
|
(0.02)
|
|
(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
|
$1.05 -
$1.15
|
|
$4.15 -
$4.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restructuring
expense is estimated to be approximately $1 million and $4 million
for the fourth 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 $1-2 million and $9 million
for the fourth 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 24.5%.
|
View original
content:https://www.prnewswire.com/news-releases/jbt-corporation-reports-third-quarter-2021-results-301410319.html
SOURCE JBT Corporation