Second Quarter 2022 Highlights:
- Revenue of $542 million,
representing a 14 percent increase year over year
- Earnings per share of $1.04, or $1.13 as
adjusted
- Total backlog of $1.1
billion increased 25 percent year over year
Bevcorp Highlights
- Bevcorp is a leading provider of beverage processing and
packaging solutions
- Purchase price of $290
million before tax benefit of approximately $35 million
- Full year 2022 expected revenue and EBITDA of
approximately $85 million and
$20 million,
respectively
CHICAGO, July 27,
2022 /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 second quarter of 2022. The Company also announced
it has signed a definitive agreement to acquire Bevcorp, a leading
provider of beverage processing and packaging solutions.
"During the second quarter, our team continued to navigate a
challenging operating environment in order to deliver for our
customers," said Brian Deck,
President and Chief Executive Officer. "Demand for our FoodTech
solutions remained strong in North
America, while economic pressures in Europe materialized in connection with high
inflation and the conflict in Ukraine. At AeroTech, the strong demand
trajectory continues."
"We are executing on our Elevate 2.0 capital deployment strategy
with the acquisition of Alco-food-machines and the announcement to
acquire Bevcorp," continued Deck. "Bevcorp will expand JBT's
presence in the beverage processing and packaging market, while its
strong recurring revenue profile, leading service culture, and
accretive margins will enhance JBT's competitive
position."
Comparisons in this news release are to the comparable period of
the prior year, unless otherwise noted.
Second Quarter 2022
"We made progress in the second quarter of 2022 with sequential
gains in revenue, margins, and earnings," said Matt Meister, Executive Vice President and Chief
Financial Officer. "As we expected, inflation and supply chain
impacts continued, while foreign exchange headwinds weighed more
heavily on our results. Overall, orders remained at healthy levels
and total backlog was at $1.1
billion, which is supportive of our double digit revenue
growth forecast for full year 2022."
Second quarter 2022 FoodTech revenue of $394 million increased 9 percent year over year,
including 10 percent organic growth and 4 percent from
acquisitions, which was partially offset by greater than
anticipated foreign exchange headwind of 5 percent versus an
expectation of 2 percent. Operating profit was $50 million. Adjusted EBITDA of $68 million declined $1
million, and adjusted EBITDA margin contracted 180 basis
points to 17.2 percent while improving 90 basis points
sequentially. The negative foreign exchange impact on adjusted
EBITDA was approximately $3
million.
AeroTech revenue of $148 million
increased 29 percent year over year. Operating profit was
$10 million. Adjusted EBITDA of
$11 million declined $2 million.
Adjusted EBITDA margin contracted 350 basis points to 7.6 percent
while improving 50 basis points sequentially.
In total, consolidated JBT revenue of $542 million increased 14 percent year over year.
Operating income was $42 million and
net income was $33 million. Adjusted
EBITDA of $65 million decreased 7
percent, and adjusted EBITDA margin declined 280 basis points to
12.0 percent while improving 50 basis points sequentially. The
foreign exchange impact on consolidated adjusted EBITDA was also
$3 million.
Diluted earnings per share from net income was $1.04 for the second quarter of 2022 compared
with $0.95 for the second quarter of
2021. Adjusted earnings per share was $1.13 compared with $1.20 in the year-ago period. Second quarter 2022
earnings included a discrete tax benefit of $0.07 per share and $0.05 per share headwind from foreign
exchange.
Year to date, JBT generated cash from operations of $45 million, which included meaningful inventory
investments in support of second half of 2022 revenue growth. Year
to date free cash flow was $4
million, including capital expenditures of $20 million associated with the digital strategy.
Liquidity at quarter end stood at $642
million, and the Company's leverage ratio was 2.5x net debt
to trailing twelve months adjusted EBITDA.
Third Quarter and Full Year 2022 Guidance
The below guidance does not include impacts from Bevcorp, which
is expected to close in the third quarter of 2022.
For the third quarter of 2022, JBT expects year over year
consolidated revenue growth of 16.0 - 17.5 percent. At FoodTech,
organic revenue growth is forecast to be 12.0 - 13.5 percent with
acquisitions adding 5 - 6 percent and a foreign exchange headwind
of 5 - 6 percent. At AeroTech, revenue growth is expected to be 26
- 28 percent.
The Company anticipates third quarter 2022 FoodTech operating
margin to be 13.0 - 13.75 percent with adjusted EBITDA margin of
17.75 - 18.5 percent. AeroTech operating margin is projected to be
8.25 - 9.0 percent with adjusted EBITDA margin of 9.0 - 9.75
percent.
Quarterly corporate expense is estimated to be approximately 2.9
percent of sales, which includes $4 -
$5 million associated with the
digital strategy and excludes M&A-related costs and LIFO
expense.
Third quarter 2022 earnings per share guidance is $1.00 - $1.15 on a
GAAP basis and $1.15 - $1.30 as adjusted.
For the full year 2022, JBT is revising its guidance to reflect
softening economic conditions in Europe and a higher foreign exchange headwind
for FoodTech as well as a modest improvement in revenue growth at
AeroTech.
The Company anticipates full year 2022 consolidated revenue
growth of 15 - 17 percent. At FoodTech, organic revenue growth is
expected to be 13 - 15 percent with acquisitions adding
approximately 4 percent and a foreign exchange headwind of 4 - 5
percent. At AeroTech, revenue growth is forecast to be 23 - 25
percent.
Full year 2022 FoodTech operating margin is projected to be 13.0
- 13.75 percent with adjusted EBITDA margin of 17.5 - 18.25
percent. AeroTech operating margin is forecast to be 8.5 - 9.5
percent with adjusted EBITDA margin of 9.5 - 10.5
percent.
Full year corporate expense is estimated to be approximately 2.9
percent of sales, which includes $14
- $15 million associated with the
digital strategy and excludes M&A-related costs and LIFO
expense. Interest expense is estimated to be approximately
$11 million, and the projected full
year tax rate is 22 - 23 percent, excluding discrete items.
Full year 2022 earnings per share guidance is $4.40 - $4.60 on a
GAAP basis and $4.90 - $5.10 as adjusted.
Bevcorp Acquisition Highlights
On July 27, 2022, JBT announced
that it has signed a definitive agreement to acquire Bevcorp, a
leading provider of beverage processing and packaging solutions,
for $290 million. Bevcorp was founded
in 1992 and is headquartered in Eastlake,
Ohio. The business' solutions in blending, handling,
filling, and closing technologies serve a range of customers in
high-value segments of the beverage market, including carbonated
soft drinks, seltzers, carbonated water, energy drinks, and
ready-to-drink alcoholic beverage blends.
Along with its strong new equipment offering, Bevcorp has a
resilient mix of rebuilds, aftermarket parts, and services,
representing recurring revenue of more than 60 percent. JBT expects
the business to achieve 2022 revenue and EBITDA of approximately
$85 million and $20 million, respectively. The transaction will
be treated as a purchase of assets, which provides a meaningful tax
step-up benefit with a net present value of approximately
$35 million. Based on 2022 forecasts,
the purchase price represents approximately 14.5x EBITDA and 12.7x
EBITDA considering the tax benefit. The acquisition will be funded
under JBT's existing credit facility. JBT expects its pro forma net
leverage ratio will be less than 3.0x by year end 2022. The
transaction is subject to regulatory approval and customary closing
conditions and is expected to close in the third quarter of
2022.
Second Quarter 2022 Earnings Conference Call
A conference call is scheduled for 10:00
a.m. ET on Thursday, July 28, 2022, to discuss second
quarter 2022 results. Participants may access the conference call
through online registration at
https://conferencingportals.com/event/lguQsHOL. A simultaneous
webcast and audio replay of the call will be available on the
Company's Investor Relations website at
https://ir.jbtc.com/events-and-presentations/.
Earnings Presentation
An earnings presentation is also available on the Company's
Investor Relations website at
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 6,900 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
workforce resulting in higher labor absenteeism, on our supply
chains due to extended delivery times and unavailability of
required components, labor 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 or strategic
investments; fluctuations in currency exchange rates; increases in
energy or raw material prices, freight costs, 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, including the
current conflict between Russia
and Ukraine; 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;
difficulty in implementing our business strategies, including the
timing of our previously announced review of strategic alternatives
for the AeroTech platform, our ability to identify or develop any
strategic alternatives, execute on material aspects of such
strategic alternatives, and whether we can achieve the potential
benefits of such strategic alternatives; the failure to consummate
or a delay in consummating the acquisition of Bevcorp; 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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Revenue
|
$
542.3
|
|
$
475.5
|
|
$
1,011.5
|
|
$
893.3
|
Cost of
sales
|
391.0
|
|
325.6
|
|
720.7
|
|
610.2
|
|
|
|
|
|
|
|
|
Gross
profit
|
151.3
|
|
149.9
|
|
290.8
|
|
283.1
|
Gross profit
%
|
27.9 %
|
|
31.5 %
|
|
28.7 %
|
|
31.7 %
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
108.3
|
|
101.6
|
|
216.7
|
|
196.0
|
Restructuring
expense
|
0.8
|
|
1.0
|
|
1.3
|
|
2.0
|
|
|
|
|
|
|
|
|
Operating
income
|
42.2
|
|
47.3
|
|
72.8
|
|
85.1
|
Operating income
%
|
7.8 %
|
|
9.9 %
|
|
7.2 %
|
|
9.5 %
|
|
|
|
|
|
|
|
|
Net interest
expense
|
2.5
|
|
2.1
|
|
4.6
|
|
4.2
|
Net income before
income taxes
|
39.7
|
|
45.2
|
|
68.2
|
|
80.9
|
Provision for income
taxes
|
6.3
|
|
14.7
|
|
9.2
|
|
23.4
|
Net income
|
$
33.4
|
|
$
30.5
|
|
$
59.0
|
|
$
57.5
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
Net income
|
$
1.05
|
|
$
0.95
|
|
$
1.84
|
|
$
1.80
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Net income
|
$
1.04
|
|
$
0.95
|
|
$
1.84
|
|
$
1.79
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
|
|
|
|
|
|
|
|
Net Income
|
|
$ 33.4
|
$ 25.6
|
$ 31.6
|
$ 29.3
|
$ 30.5
|
$ 27.0
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
|
0.8
|
0.5
|
2.5
|
1.1
|
1.0
|
1.0
|
Inventory impairment
due to restructuring
|
|
—
|
0.2
|
0.2
|
—
|
—
|
—
|
M&A related
cost(1)
|
|
1.9
|
2.6
|
0.7
|
3.6
|
3.5
|
1.4
|
LIFO
expense(2)
|
|
1.2
|
0.3
|
0.4
|
—
|
0.3
|
0.3
|
Impact on tax
provision from Non-GAAP adjustments(3)
|
|
(1.1)
|
(1.0)
|
(1.1)
|
(1.1)
|
(1.2)
|
(0.7)
|
Impact on tax
provision from remeasurement of a deferred tax liability
|
|
—
|
—
|
(4.6)
|
—
|
—
|
—
|
Impact on tax
provision from remeasurement of deferred taxes from material tax
rate changes
|
|
—
|
—
|
—
|
—
|
4.4
|
—
|
Adjusted net
income
|
|
$ 36.2
|
$ 28.2
|
$ 29.7
|
$ 32.9
|
$ 38.5
|
$ 29.0
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 33.4
|
$ 25.6
|
$ 31.6
|
$ 29.3
|
$ 30.5
|
$ 27.0
|
Total shares and
dilutive securities
|
|
32.1
|
32.1
|
32.1
|
32.1
|
32.1
|
32.1
|
Diluted earnings per
share from net income
|
|
$ 1.04
|
$ 0.80
|
$ 0.99
|
$ 0.91
|
$ 0.95
|
$ 0.84
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$ 36.2
|
$ 28.2
|
$ 29.7
|
$ 32.9
|
$ 38.5
|
$ 29.0
|
Total shares and
dilutive securities
|
|
32.1
|
32.1
|
32.1
|
32.1
|
32.1
|
32.1
|
Adjusted diluted
earnings per share from net income
|
|
$ 1.13
|
$ 0.88
|
$ 0.93
|
$ 1.02
|
$ 1.20
|
$ 0.90
|
|
|
|
|
|
|
|
|
(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) Beginning in second
quarter of 2022, we made a change to the adjusted operating
earnings and adjusted net income measures to exclude the impact of
last-in first-out ("LIFO") expense
or benefit because it is reduces volatility that is not reflective
of our operations and allows for better comparability to our peers.
Prior year adjusted operating
earnings and adjusted net income figures have been revised to align
with this change in presentation.
|
|
|
|
|
|
|
|
(3) Impact on tax
provision was calculated using the enacted rate for the relevant
jurisdiction for each quarter shown.
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Net income
|
$33.4
|
$25.6
|
$31.6
|
$29.3
|
$30.5
|
$27.0
|
Income tax
provision
|
6.3
|
2.9
|
1.9
|
9.0
|
14.7
|
8.7
|
Interest expense,
net
|
2.5
|
2.1
|
2.4
|
2.1
|
2.1
|
2.1
|
Depreciation and
amortization
|
19.2
|
19.9
|
20.2
|
20.0
|
18.3
|
18.3
|
EBITDA
|
61.4
|
50.5
|
56.1
|
60.4
|
65.6
|
56.1
|
|
|
|
|
|
|
|
Restructuring related
costs
|
|
|
|
|
|
|
Restructuring
expense
|
0.8
|
0.5
|
2.5
|
1.1
|
1.0
|
1.0
|
Inventory impairment
due to restructuring
|
—
|
0.2
|
0.2
|
—
|
—
|
—
|
Pension (income)
expense, other than service cost
|
—
|
—
|
(1.4)
|
0.1
|
—
|
—
|
M&A related
cost(1)
|
1.9
|
2.6
|
0.7
|
3.6
|
3.5
|
1.4
|
LIFO
expense(2)
|
1.2
|
0.3
|
0.4
|
—
|
0.3
|
0.3
|
Adjusted
EBITDA
|
$65.3
|
$54.1
|
$58.5
|
$65.2
|
$70.4
|
$58.8
|
|
|
|
|
|
|
|
Total
revenue
|
$542.3
|
$469.2
|
$497.6
|
$477.4
|
$475.5
|
$417.8
|
Adjusted EBITDA
%
|
12.0 %
|
11.5 %
|
11.8 %
|
13.7 %
|
14.8 %
|
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.
|
|
|
|
|
|
|
|
(2) Beginning in second
quarter of 2022, we made a change to the adjusted operating
earnings and adjusted net income
measures to exclude the
impact of last-in first-out ("LIFO") expense or benefit because it
is reduces volatility that is not
reflective of our
operations and allows for better comparability to our peers. Prior
year adjusted operating earnings and
adjusted net income
figures have been revised to align with this change in
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
394.1
|
|
$
360.7
|
|
$
750.4
|
|
$
672.5
|
JBT AeroTech
|
148.3
|
|
114.8
|
|
261.2
|
|
220.8
|
Other revenue and
intercompany eliminations
|
(0.1)
|
|
—
|
|
(0.1)
|
|
—
|
Total
revenue
|
$
542.3
|
|
$
475.5
|
|
$
1,011.5
|
|
$
893.3
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
|
|
|
|
|
Segment operating
profit(1)(2)
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
50.2
|
|
$
51.5
|
|
$
90.1
|
|
$
93.0
|
JBT FoodTech segment
operating profit %
|
12.7 %
|
|
14.3 %
|
|
12.0 %
|
|
13.8 %
|
|
|
|
|
|
|
|
|
JBT AeroTech
|
10.0
|
|
12.1
|
|
16.8
|
|
22.0
|
JBT AeroTech segment
operating profit %
|
6.7 %
|
|
10.5 %
|
|
6.4 %
|
|
10.0 %
|
|
|
|
|
|
|
|
|
Total segment
operating profit
|
60.2
|
|
63.6
|
|
106.9
|
|
115.0
|
Total segment
operating profit %
|
11.1 %
|
|
13.4 %
|
|
10.6 %
|
|
12.9 %
|
|
|
|
|
|
|
|
|
Corporate
expense
|
17.2
|
|
15.3
|
|
32.8
|
|
27.9
|
Restructuring
expense
|
0.8
|
|
1.0
|
|
1.3
|
|
2.0
|
Operating
income
|
$
42.2
|
|
$
47.3
|
|
$
72.8
|
|
$
85.1
|
Operating income
%
|
7.8 %
|
|
9.9 %
|
|
7.2 %
|
|
9.5 %
|
|
|
|
|
|
|
|
|
Other business
segment information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
Inbound
orders
|
2022
|
|
2021
|
|
2022
|
|
2021
|
JBT FoodTech
|
$
395.6
|
|
$
397.6
|
|
$
807.4
|
|
$
783.3
|
JBT AeroTech
|
167.2
|
|
182.5
|
|
320.9
|
|
282.9
|
Total inbound
orders
|
$
562.8
|
|
$
580.1
|
|
$
1,128.3
|
|
$
1,066.2
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
Order
Backlog
|
|
|
|
|
2022
|
|
2021
|
JBT FoodTech
|
|
|
|
|
$
670.4
|
|
$
531.5
|
JBT AeroTech
|
|
|
|
|
430.9
|
|
348.6
|
Total order
backlog
|
|
|
|
|
$
1,101.3
|
|
$
880.1
|
|
|
|
|
|
|
|
|
(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, 2022
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
50.2
|
|
$
10.0
|
|
$
(18.0)
|
|
$
42.2
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
—
|
|
—
|
|
0.8
|
|
0.8
|
M&A related
cost(1)
|
0.2
|
|
—
|
|
1.7
|
|
1.9
|
LIFO
expense(2)
|
—
|
|
—
|
|
1.2
|
|
1.2
|
Adjusted operating
profit
|
50.4
|
|
10.0
|
|
(14.3)
|
|
46.1
|
Depreciation and
amortization
|
17.2
|
|
1.2
|
|
0.8
|
|
19.2
|
Adjusted
EBITDA
|
$
67.6
|
|
$
11.2
|
|
$
(13.5)
|
|
$
65.3
|
|
|
|
|
|
|
|
|
Revenue
|
$
394.1
|
|
$
148.3
|
|
$
(0.1)
|
|
$
542.3
|
Operating profit
%
|
12.7 %
|
|
6.7 %
|
|
|
|
7.8 %
|
Adjusted operating
profit %
|
12.8 %
|
|
6.7 %
|
|
|
|
8.5 %
|
Adjusted EBITDA
%
|
17.2 %
|
|
7.6 %
|
|
|
|
12.0 %
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2022
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
90.1
|
|
$
16.8
|
|
$
(34.1)
|
|
$
72.8
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
—
|
|
—
|
|
1.3
|
|
1.3
|
Inventory impairment
due to restructuring
|
0.2
|
|
—
|
|
—
|
|
0.2
|
M&A related
cost(1)
|
0.5
|
|
—
|
|
4.0
|
|
4.5
|
LIFO
expense(2)
|
—
|
|
—
|
|
1.5
|
|
1.5
|
Adjusted operating
profit
|
90.8
|
|
16.8
|
|
(27.3)
|
|
80.3
|
Depreciation and
amortization
|
34.9
|
|
2.4
|
|
1.8
|
|
39.1
|
Adjusted
EBITDA
|
$
125.7
|
|
$
19.2
|
|
$
(25.5)
|
|
$
119.4
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
750.4
|
|
$
261.2
|
|
$
(0.1)
|
|
$
1,011.5
|
Operating profit
%
|
12.0 %
|
|
6.4 %
|
|
|
|
7.2 %
|
Adjusted operating
profit %
|
12.1 %
|
|
6.4 %
|
|
|
|
7.9 %
|
Adjusted EBITDA
%
|
16.8 %
|
|
7.4 %
|
|
|
|
11.8 %
|
|
|
|
|
|
|
|
|
(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) Beginning in second
quarter of 2022, we made a change to the adjusted operating
earnings and adjusted net income measures to exclude
the impact of last-in
first-out ("LIFO") expense or benefit because it is reduces
volatility that is not reflective of our operations and allows
for
better comparability to
our peers. Prior year adjusted operating earnings and adjusted net
income figures have been revised to align with this
change in
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
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
|
LIFO
expense(2)
|
—
|
|
—
|
|
0.3
|
|
0.3
|
Adjusted operating
profit
|
51.8
|
|
12.1
|
|
(11.8)
|
|
52.1
|
Depreciation and
amortization
|
16.9
|
|
0.6
|
|
0.8
|
|
18.3
|
Adjusted
EBITDA
|
68.7
|
|
12.7
|
|
(11.0)
|
|
70.4
|
|
|
|
|
|
|
|
|
Revenue
|
$
360.7
|
|
$
114.8
|
|
$
—
|
|
$
475.5
|
Operating profit
%
|
14.3 %
|
|
10.5 %
|
|
|
|
9.9 %
|
Adjusted operating
profit %
|
14.4 %
|
|
10.5 %
|
|
|
|
11.0 %
|
Adjusted EBITDA
%
|
19.0 %
|
|
11.1 %
|
|
|
|
14.8 %
|
|
|
|
|
|
|
|
|
|
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
|
LIFO
expense(2)
|
—
|
|
—
|
|
0.6
|
|
0.6
|
Adjusted operating
profit
|
93.8
|
|
22.0
|
|
(23.2)
|
|
92.6
|
Depreciation and
amortization
|
33.2
|
|
2.0
|
|
1.4
|
|
36.6
|
Adjusted
EBITDA
|
$
127.0
|
|
$
24.0
|
|
$
(21.8)
|
|
$
129.2
|
|
|
|
|
|
|
|
|
Revenue
|
$
672.5
|
|
$
220.8
|
|
$
—
|
|
$
893.3
|
Operating profit
%
|
13.8 %
|
|
10.0 %
|
|
|
|
9.5 %
|
Adjusted operating
profit %
|
13.9 %
|
|
10.0 %
|
|
|
|
10.4 %
|
Adjusted EBITDA
%
|
18.9 %
|
|
10.9 %
|
|
|
|
14.5 %
|
|
|
|
|
|
|
|
|
(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) Beginning in second
quarter of 2022, we made a change to the adjusted operating
earnings and adjusted net income
measures to exclude the
impact of last-in first-out ("LIFO") expense or benefit because it
is reduces volatility that is not
reflective of our
operations and allows for better comparability to our peers. Prior
year adjusted operating earnings and
adjusted net income
figures have been revised to align with this change in
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)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
Cash and cash
equivalents
|
$
68.1
|
|
$
78.8
|
Trade receivables, net
of allowances
|
366.6
|
|
333.5
|
Inventories
|
298.8
|
|
229.1
|
Other current
assets
|
73.4
|
|
77.3
|
Total current
assets
|
806.9
|
|
718.7
|
|
|
|
|
Property, plant and
equipment, net
|
263.4
|
|
267.6
|
Other assets
|
1,151.8
|
|
1,155.1
|
Total assets
|
$
2,222.1
|
|
$
2,141.4
|
|
|
|
|
|
|
|
|
Accounts payable, trade
and other
|
$
222.9
|
|
$
186.0
|
Advance and progress
payments
|
214.3
|
|
190.2
|
Other current
liabilities
|
169.5
|
|
173.7
|
Total current
liabilities
|
606.7
|
|
549.9
|
Long-term debt, less
current portion
|
674.6
|
|
674.4
|
|
|
|
|
Accrued pension and
other post-retirement benefits, less current portion
|
48.2
|
|
57.6
|
Other
liabilities
|
102.8
|
|
109.0
|
|
|
|
|
Common stock and
additional paid-in capital
|
215.7
|
|
214.5
|
Retained
earnings
|
786.0
|
|
733.4
|
Accumulated other
comprehensive loss
|
(211.9)
|
|
(197.4)
|
Total stockholders'
equity
|
789.8
|
|
750.5
|
Total liabilities and
stockholders' equity
|
$
2,222.1
|
|
$
2,141.4
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
59.0
|
|
$
57.5
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
39.1
|
|
36.6
|
Other
|
9.1
|
|
6.5
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Trade accounts
receivable, net
|
(41.7)
|
|
(2.8)
|
Inventories
|
(78.3)
|
|
(11.0)
|
Accounts payable,
trade and other
|
39.5
|
|
37.6
|
Advance and progress
payments
|
29.5
|
|
8.4
|
Other - assets and
liabilities, net
|
(11.4)
|
|
(2.5)
|
|
|
|
|
Cash provided by
operating activities
|
44.8
|
|
130.3
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(0.4)
|
|
(15.9)
|
Capital
expenditures
|
(44.4)
|
|
(20.3)
|
Other
|
0.6
|
|
1.7
|
|
|
|
|
Cash required by
investing activities
|
(44.2)
|
|
(34.5)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Net proceeds
(payments) for domestic credit facilities
|
0.9
|
|
(271.9)
|
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
|
(6.7)
|
|
(6.3)
|
Payment of acquisition
date earnout liability
|
—
|
|
(16.1)
|
Other
|
(3.5)
|
|
(2.0)
|
|
|
|
|
Cash (required)
provided by financing activities
|
(9.3)
|
|
59.8
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(2.0)
|
|
(0.8)
|
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
(10.7)
|
|
154.8
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
78.8
|
|
47.5
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
68.1
|
|
$
202.3
|
|
|
|
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
FREE CASH
FLOW
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
|
|
|
Cash provided by
operating activities
|
$
44.8
|
|
$
130.3
|
Less: capital
expenditures
|
44.4
|
|
20.3
|
Plus: proceeds from
disposal of assets
|
0.6
|
|
1.7
|
Plus: pension
contributions
|
2.7
|
|
0.5
|
Free cash flow
(FCF)
|
$
3.7
|
|
$
112.2
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
Change
from
|
|
Change
from
|
|
2022
|
|
2021
|
|
2021
|
|
Prior
Year-End
|
|
Prior
Year
|
Total debt
|
$
674.6
|
|
$
674.4
|
|
$
641.7
|
|
$
0.2
|
|
$
32.9
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
(68.1)
|
|
(78.8)
|
|
(202.3)
|
|
10.7
|
|
134.2
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
$
606.5
|
|
$
595.6
|
|
$
439.4
|
|
$
10.9
|
|
$
167.1
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BANK TOTAL NET
LEVERAGE RATIO CALCULATION
|
(Unaudited and in
millions)
|
|
|
|
As of
|
|
June 30,
2022
|
Total debt
|
$
674.6
|
Cash and cash
equivalents
|
(68.1)
|
Net
debt
|
606.5
|
Other items considered
debt under the credit agreement
|
18.9
|
Consolidated total
indebtedness(1)
|
$
625.4
|
|
|
Trailing twelve
months Adjusted EBITDA
|
$
243.1
|
Other adjustments net
to earnings under the credit agreement
|
0.1
|
Consolidated
EBITDA(1)
|
$
243.2
|
|
|
Bank total net
leverage ratio (Consolidated Total Indebtedness / Consolidated
EBITDA)
|
2.6
|
|
|
Total net debt to
trailing twelve months Adjusted 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
|
|
Q3
2022
|
|
Full Year
2022
|
|
|
|
|
Diluted earnings per
share from net income
|
$1.00 -
$1.15
|
|
$4.40 -
$4.60
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
Restructuring related
costs(1)
|
—
|
|
0.05
|
M&A related
costs(2)
|
0.14
|
|
0.42
|
LIFO
expense(3)
|
0.05
|
|
0.16
|
|
|
|
|
Impact on tax provision
from Non-GAAP adjustments(4)
|
(0.04)
|
|
(0.13)
|
|
|
|
|
Adjusted diluted
earnings per share from net income
|
$1.15 -
$1.30
|
|
$4.90 -
$5.10
|
|
|
|
|
|
|
|
|
(1) Restructuring
related costs is estimated to be approximately $1-2 million for the
full year 2022. 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 $4-5 million and $12-14
million for the third quarter 2022
and full year 2022,
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) LIFO expense is
estimated to be approximately $1-2 million and $4-6 million for the
third quarter 2022 and full
year 2022,
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.
|
|
|
|
|
(4) Impact on tax
provision was calculated using the Company's effective tax rate of
approximately 22-23%.
|
View original
content:https://www.prnewswire.com/news-releases/jbt-corporation-reports-second-quarter-2022-results-and-signs-definitive-agreement-to-acquire-bevcorp-301594715.html
SOURCE JBT Corporation