Third Quarter 2022 Highlights:
- Consolidated revenue of $555
million, representing a 16 percent increase year over
year
- Earnings per share of $1.07
and adjusted earnings per share of $1.27, which represent a year over year increase
of 18 percent and 25 percent, respectively
- Total backlog of $1.0
billion increased 15 percent year over year
- Completed Alco and Bevcorp acquisitions, expanding JBT's
presence in protein processing and carbonated beverage
applications, respectively
CHICAGO, Oct. 26,
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 third quarter of 2022.
"In the third quarter, we delivered sequential improvement in
revenue and margins for both FoodTech and AeroTech despite the
continued challenging operating environment," said Brian Deck, President and Chief Executive
Officer. "At the same time, the uncertainty associated with global
macroeconomic conditions impacted our customers' timeline to invest
in food and beverage processing equipment during the third quarter.
Nevertheless, we believe that JBT remains well-positioned given the
resiliency of our recurring revenue and our core technologies,
which provide critical support for yield, uptime, automation, and
sustainability within the highly attractive food and beverage
markets."
Comparisons in this news release are to the comparable period of
the prior year, unless otherwise noted.
Third Quarter 2022 Results
"As we anticipated, our third quarter results improved both
sequentially and year over year," said Matt
Meister, Executive Vice President and Chief Financial
Officer. "We are encouraged by the meaningful progress we made in
margins and price cost realization, especially at FoodTech, even as
our businesses navigated supply chain constraints and inflationary
pressures."
|
Summary of Third
Quarter 2022 Results
|
|
FoodTech
|
|
AeroTech
|
|
Total JBT
|
Total Revenue Growth
(Year over Year)
|
11.1 %
|
|
32.4 %
|
|
16.3 %
|
Operating Profit
Margin
|
14.4 %
|
|
7.4 %
|
|
8.3 %
|
Adjusted
EBITDA Margin(1)
|
19.3 %
|
|
8.2 %
|
|
13.4 %
|
|
|
|
|
|
|
(1) Non-GAAP figure.
Please see supplemental schedules for adjustments and
reconciliations.
|
Third quarter 2022 FoodTech revenue of $399 million increased 11 percent year over year
driven by 11 percent organic growth and 7 percent growth from
acquisitions; this was partially offset by a foreign exchange
headwind of 7 percent versus an expectation of 5 - 6 percent.
Operating profit was $57 million.
Adjusted EBITDA of $77 million
increased 15 percent, and adjusted EBITDA margin of 19.3 percent
improved 60 basis points year over year and 210 basis points
sequentially. FoodTech orders totaled $349
million and declined 9 percent. On a constant currency
basis, orders were $370 million. The
decline in orders was driven by continued softness in Europe coupled with lengthening conversion
rates in North America, which
materialized in the third quarter, as customers slowed investment
decision making for equipment due to economic uncertainty,
including rising interest rates and high energy costs. FoodTech
backlog was $662 million and
increased 22 percent.
AeroTech revenue of $157 million
increased 32 percent year over year. Operating profit was
$12 million. Adjusted EBITDA of
$13 million increased
$5 million, or 56 percent. Adjusted EBITDA margin of 8.2
percent increased 130 basis points year over year and improved 60
basis points sequentially. AeroTech orders totaled $113 million, which decreased 18 percent. The
decline in orders was expected due to timing of large projects.
AeroTech backlog was $387 million and
increased 5 percent.
In total, consolidated JBT revenue of $555 million increased 16 percent year over year.
Operating income was $46 million, and
net income was $34 million. Diluted
earnings per share (EPS) from net income was $1.07 for the third quarter of 2022 compared with
$0.91 in the prior year period.
Adjusted EPS was $1.27 compared with
$1.02 in the year-ago period. Third
quarter 2022 earnings included a discrete tax benefit of
$0.02 per share and a $0.10 per share headwind from foreign
exchange.
Year to date, JBT generated cash from operations of $75 million, which included an investment in
inventory in support of double-digit revenue growth and to help
mitigate supply chain risks. Year to date free cash flow was
$13 million, including capital
expenditures of $30 million
associated with our digital strategy. Liquidity at quarter end
stood at $425 million, and the
Company's net leverage ratio was 3.4x net debt to trailing twelve
months pro forma adjusted EBITDA. The Company's net leverage ratio
is currently above its target range due to the acquisitions of Alco
and Bevcorp, which were completed in the third quarter. The Company
expects its net leverage ratio to be approximately 3.0x by year end
2022.
Full Year 2022 Guidance
"We are updating our full year guidance to account for greater
than expected foreign exchange headwinds as a result of the strong
dollar, timing of margin progression at AeroTech, and the addition
of Bevcorp," said Matt Meister.
FoodTech year over year revenue growth is estimated to be 13.25
- 13.75 percent, which is comprised of 12.5 - 13 percent from
organic growth, approximately 6.5 percent from acquisitions, and a
negative foreign exchange impact of approximately 6
percent.
FoodTech operating profit margin is forecast to be 13.0 - 13.3
percent, and adjusted EBITDA margin is expected to be 18 - 18.3
percent.
AeroTech year over year revenue growth is estimated to be 23 -
24 percent. AeroTech operating profit margin is forecast to be 7.75
- 8.25 percent, and adjusted EBITDA margin is projected to be 8.5 -
9 percent.
The table below reflects consolidated JBT guidance, unless
otherwise stated.
|
FY 2022
Guidance
|
Consolidated Revenue
Growth (Year over Year)
|
15.75 –
16.25%
|
Corporate Expense (% of
Sales)
|
~2.9%
|
Interest
Expense
|
~$15M
|
Tax Rate (Excluding
Discrete Items)
|
21 – 22%
|
GAAP EPS
|
$4.05 –
$4.20
|
Adjusted
EPS(1)
|
$4.65 –
$4.80
|
|
|
(1) Non-GAAP figure.
Please see supplemental schedules for adjustments and
reconciliations.
|
Corporate expense guidance excludes approximately $8 million in M&A related costs, $7 million in LIFO expense, and $3 million in restructuring
expense.
Third Quarter 2022 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET on Thursday, October 27, 2022, to discuss third
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 7,200 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: higher energy and
other input costs adversely impacting financial condition of our
customers in Europe and demand for
our goods and services in that region; impact of the on-going
COVID-19 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; 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. 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.
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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Revenue
|
$
555.4
|
|
$
477.4
|
|
$
1,566.9
|
|
$
1,370.7
|
Cost of
sales
|
395.7
|
|
334.9
|
|
1,116.4
|
|
945.1
|
|
|
|
|
|
|
|
|
Gross
profit
|
159.7
|
|
142.5
|
|
450.5
|
|
425.6
|
Gross profit
%
|
28.8 %
|
|
29.8 %
|
|
28.8 %
|
|
31.0 %
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
112.3
|
|
100.9
|
|
329.0
|
|
296.9
|
Restructuring
expense
|
1.5
|
|
1.1
|
|
2.8
|
|
3.1
|
|
|
|
|
|
|
|
|
Operating
income
|
45.9
|
|
40.5
|
|
118.7
|
|
125.6
|
Operating income
%
|
8.3 %
|
|
8.5 %
|
|
7.6 %
|
|
9.2 %
|
|
|
|
|
|
|
|
|
Pension expense, other
than service cost
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
Net interest
expense
|
3.6
|
|
2.1
|
|
8.2
|
|
6.3
|
Net income before
income taxes
|
42.2
|
|
38.3
|
|
110.4
|
|
119.2
|
Provision for income
taxes
|
8.0
|
|
9.0
|
|
17.2
|
|
32.4
|
Net income
|
$
34.2
|
|
$
29.3
|
|
$
93.2
|
|
$
86.8
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
Net income
|
$
1.07
|
|
$
0.91
|
|
$
2.91
|
|
$
2.71
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Net income
|
$
1.07
|
|
$
0.91
|
|
$
2.90
|
|
$
2.71
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
Q3
2022
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
|
|
|
|
|
|
Net Income
|
$ 34.2
|
$ 33.4
|
$ 25.6
|
$ 31.6
|
$ 29.3
|
|
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
Restructuring related
costs
|
|
|
|
|
|
Restructuring
expense
|
1.5
|
0.8
|
0.5
|
2.5
|
1.1
|
Inventory impairment
due to restructuring
|
—
|
—
|
0.2
|
0.2
|
—
|
M&A related
cost(1)
|
4.4
|
1.9
|
2.6
|
0.7
|
3.6
|
LIFO
expense(2)
|
2.8
|
1.2
|
0.3
|
0.4
|
—
|
Impact on tax
provision from Non-GAAP adjustments(3)
|
(2.2)
|
(1.1)
|
(1.0)
|
(1.1)
|
(1.1)
|
Impact on tax
provision from remeasurement of a deferred tax liability
|
—
|
—
|
—
|
(4.6)
|
—
|
Adjusted net
income
|
$ 40.7
|
$ 36.2
|
$ 28.2
|
$ 29.7
|
$ 32.9
|
|
|
|
|
|
|
Net income
|
$ 34.2
|
$ 33.4
|
$ 25.6
|
$ 31.6
|
$ 29.3
|
Total shares and
dilutive securities
|
32.1
|
32.1
|
32.1
|
32.1
|
32.1
|
Diluted earnings per
share from net income
|
$ 1.07
|
$ 1.04
|
$ 0.80
|
$ 0.99
|
$ 0.91
|
|
|
|
|
|
|
Adjusted net
income
|
$ 40.7
|
$ 36.2
|
$ 28.2
|
$ 29.7
|
$ 32.9
|
Total shares and
dilutive securities
|
32.1
|
32.1
|
32.1
|
32.1
|
32.1
|
Adjusted diluted
earnings per share from net income
|
$ 1.27
|
$ 1.13
|
$ 0.88
|
$ 0.93
|
$ 1.02
|
|
(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 the
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 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)
|
|
|
|
|
|
|
|
Q3
2022
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
Net income
|
$
34.2
|
$
33.4
|
$
25.6
|
$
31.6
|
$
29.3
|
Income tax
provision
|
8.0
|
6.3
|
2.9
|
1.9
|
9.0
|
Interest expense,
net
|
3.6
|
2.5
|
2.1
|
2.4
|
2.1
|
Depreciation and
amortization
|
20.1
|
19.2
|
19.9
|
20.2
|
20.0
|
EBITDA
|
65.9
|
61.4
|
50.5
|
56.1
|
60.4
|
|
|
|
|
|
|
Restructuring related
costs
|
|
|
|
|
|
Restructuring
expense
|
1.5
|
0.8
|
0.5
|
2.5
|
1.1
|
Inventory impairment
due to restructuring
|
—
|
—
|
0.2
|
0.2
|
—
|
Pension expense
(income), other than service cost
|
0.1
|
—
|
—
|
(1.4)
|
0.1
|
M&A related
cost(1)
|
4.4
|
1.9
|
2.6
|
0.7
|
3.6
|
LIFO
expense(2)
|
2.8
|
1.2
|
0.3
|
0.4
|
—
|
Adjusted
EBITDA
|
$
74.7
|
$
65.3
|
$
54.1
|
$
58.5
|
$
65.2
|
|
|
|
|
|
|
Total
revenue
|
$
555.4
|
$
542.3
|
$
469.2
|
$
497.6
|
$
477.4
|
Adjusted EBITDA
%
|
13.4 %
|
12.0 %
|
11.5 %
|
11.8 %
|
13.7 %
|
|
(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 the
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 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
398.9
|
|
$
359.1
|
|
$
1,149.3
|
|
$
1,031.6
|
JBT AeroTech
|
156.6
|
|
118.3
|
|
417.8
|
|
339.1
|
Other revenue and
intercompany eliminations
|
(0.1)
|
|
—
|
|
(0.2)
|
|
—
|
Total
revenue
|
$
555.4
|
|
$
477.4
|
|
$
1,566.9
|
|
$
1,370.7
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
|
|
|
|
|
Segment operating
profit(1)(2)
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
57.3
|
|
$
48.9
|
|
$
147.4
|
|
$
141.9
|
JBT FoodTech segment
operating profit %
|
14.4 %
|
|
13.6 %
|
|
12.8 %
|
|
13.8 %
|
|
|
|
|
|
|
|
|
JBT AeroTech
|
11.6
|
|
7.0
|
|
28.4
|
|
29.0
|
JBT AeroTech segment
operating profit %
|
7.4 %
|
|
5.9 %
|
|
6.8 %
|
|
8.6 %
|
|
|
|
|
|
|
|
|
Total segment
operating profit
|
68.9
|
|
55.9
|
|
175.8
|
|
170.9
|
Total segment
operating profit %
|
12.4 %
|
|
11.7 %
|
|
11.2 %
|
|
12.5 %
|
|
|
|
|
|
|
|
|
Corporate
expense
|
21.5
|
|
14.3
|
|
54.3
|
|
42.2
|
Restructuring
expense
|
1.5
|
|
1.1
|
|
2.8
|
|
3.1
|
Operating
income
|
$
45.9
|
|
$
40.5
|
|
$
118.7
|
|
$
125.6
|
Operating income
%
|
8.3 %
|
|
8.5 %
|
|
7.6 %
|
|
9.2 %
|
|
|
|
|
|
|
|
|
Other business
segment information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
Inbound
orders
|
2022
|
|
2021
|
|
2022
|
|
2021
|
JBT FoodTech
|
$
348.5
|
|
$
382.0
|
|
$
1,155.9
|
|
$
1,165.3
|
JBT AeroTech
|
113.2
|
|
138.7
|
|
434.1
|
|
421.6
|
Total inbound
orders
|
$
461.7
|
|
$
520.7
|
|
$
1,590.0
|
|
$
1,586.9
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30,
|
Order
Backlog
|
|
|
|
|
2022
|
|
2021
|
JBT FoodTech
|
|
|
|
|
$
662.0
|
|
$
544.7
|
JBT AeroTech
|
|
|
|
|
387.1
|
|
369.3
|
Total order
backlog
|
|
|
|
|
$
1,049.1
|
|
$
914.0
|
|
(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, 2022
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
57.3
|
|
$
11.6
|
|
$
(23.0)
|
|
$
45.9
|
Restructuring
expense
|
—
|
|
—
|
|
1.5
|
|
1.5
|
M&A related
cost(1)
|
1.9
|
|
—
|
|
2.5
|
|
4.4
|
LIFO
expense(2)
|
—
|
|
—
|
|
2.8
|
|
2.8
|
Adjusted operating
profit
|
59.2
|
|
11.6
|
|
(16.2)
|
|
54.6
|
Depreciation and
amortization
|
17.8
|
|
1.2
|
|
1.1
|
|
20.1
|
Adjusted
EBITDA
|
$
77.0
|
|
$
12.8
|
|
$
(15.1)
|
|
$
74.7
|
|
|
|
|
|
|
|
|
Revenue
|
$
398.9
|
|
$
156.6
|
|
$
(0.1)
|
|
$
555.4
|
Operating profit
%
|
14.4 %
|
|
7.4 %
|
|
|
|
8.3 %
|
Adjusted operating
profit %
|
14.8 %
|
|
7.4 %
|
|
|
|
9.8 %
|
Adjusted EBITDA
%
|
19.3 %
|
|
8.2 %
|
|
|
|
13.4 %
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2022
|
(In
millions)
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
Corporate
(Unallocated)
|
|
Consolidated
|
Operating
profit
|
$
147.4
|
|
$
28.4
|
|
$
(57.1)
|
|
$
118.7
|
Restructuring related
costs
|
|
|
|
|
|
|
|
Restructuring
expense
|
—
|
|
—
|
|
2.8
|
|
2.8
|
Inventory impairment
due to restructuring
|
0.2
|
|
—
|
|
—
|
|
0.2
|
M&A related
cost(1)
|
2.4
|
|
—
|
|
6.5
|
|
8.9
|
LIFO
expense(2)
|
—
|
|
—
|
|
4.3
|
|
4.3
|
Adjusted operating
profit
|
150.0
|
|
28.4
|
|
(43.5)
|
|
134.9
|
Depreciation and
amortization
|
52.7
|
|
3.6
|
|
2.9
|
|
59.2
|
Adjusted
EBITDA
|
$
202.7
|
|
$
32.0
|
|
$
(40.6)
|
|
$
194.1
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
1,149.3
|
|
$
417.8
|
|
$
(0.2)
|
|
$
1,566.9
|
Operating profit
%
|
12.8 %
|
|
6.8 %
|
|
|
|
7.6 %
|
Adjusted operating
profit %
|
13.1 %
|
|
6.8 %
|
|
|
|
8.6 %
|
Adjusted EBITDA
%
|
17.6 %
|
|
7.7 %
|
|
|
|
12.4 %
|
|
(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.
|
|
(2) Beginning in the
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 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
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
|
|
|
|
|
|
|
|
|
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
|
LIFO
expense(2)
|
—
|
|
—
|
|
0.6
|
|
0.6
|
Adjusted operating
profit
|
143.0
|
|
29.0
|
|
(34.2)
|
|
137.8
|
Depreciation and
amortization
|
51.1
|
|
3.2
|
|
2.3
|
|
56.6
|
Adjusted
EBITDA
|
$
194.1
|
|
$
32.2
|
|
$
(31.9)
|
|
$
194.4
|
|
|
|
|
|
|
|
|
Revenue
|
$
1,031.6
|
|
$
339.1
|
|
$
—
|
|
$
1,370.7
|
Operating profit
%
|
13.8 %
|
|
8.6 %
|
|
|
|
9.2 %
|
Adjusted operating
profit %
|
13.9 %
|
|
8.6 %
|
|
|
|
10.1 %
|
Adjusted EBITDA
%
|
18.8 %
|
|
9.5 %
|
|
|
|
14.2 %
|
|
(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 the
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 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)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
Cash and cash
equivalents
|
$
52.6
|
|
$
78.8
|
Trade receivables, net
of allowances
|
374.1
|
|
333.5
|
Inventories
|
346.8
|
|
229.1
|
Other current
assets
|
100.9
|
|
77.3
|
Total current
assets
|
874.4
|
|
718.7
|
|
|
|
|
Property, plant and
equipment, net
|
262.2
|
|
267.6
|
Other assets
|
1,417.9
|
|
1,155.1
|
Total assets
|
$
2,554.5
|
|
$
2,141.4
|
|
|
|
|
|
|
|
|
Short-term
debt
|
$
0.8
|
|
$
—
|
Accounts payable, trade
and other
|
221.0
|
|
186.0
|
Advance and progress
payments
|
216.4
|
|
190.2
|
Other current
liabilities
|
181.0
|
|
173.7
|
Total current
liabilities
|
619.2
|
|
549.9
|
Long-term debt, less
current portion
|
979.0
|
|
674.4
|
Accrued pension and
other post-retirement benefits, less current portion
|
44.4
|
|
57.6
|
Other
liabilities
|
105.7
|
|
109.0
|
|
|
|
|
Common stock and
additional paid-in capital
|
217.8
|
|
214.5
|
Retained
earnings
|
817.0
|
|
733.4
|
Accumulated other
comprehensive loss
|
(228.6)
|
|
(197.4)
|
Total stockholders'
equity
|
806.2
|
|
750.5
|
Total liabilities and
stockholders' equity
|
$
2,554.5
|
|
$
2,141.4
|
JBT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
93.2
|
|
$
86.8
|
|
|
|
|
Adjustments to
reconcile income to cash provided by operating
activities
|
|
|
|
Depreciation and
amortization
|
59.2
|
|
56.6
|
Other
|
17.7
|
|
9.5
|
|
|
|
|
Changes in operating
assets and liabilities
|
|
|
|
Trade accounts
receivable, net
|
(43.0)
|
|
(16.1)
|
Inventories
|
(92.7)
|
|
(26.6)
|
Accounts payable,
trade and other
|
41.6
|
|
40.0
|
Advance and progress
payments
|
15.1
|
|
22.7
|
Other - assets and
liabilities, net
|
(16.5)
|
|
(9.6)
|
|
|
|
|
Cash provided by
operating activities
|
74.6
|
|
163.3
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions, net of
cash acquired
|
(329.7)
|
|
(185.3)
|
Capital
expenditures
|
(65.7)
|
|
(33.9)
|
Other
|
0.9
|
|
2.0
|
|
|
|
|
Cash required by
investing activities
|
(394.5)
|
|
(217.2)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Net proceeds
(payments) for domestic credit facilities
|
312.4
|
|
(260.8)
|
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
|
(9.8)
|
|
(9.5)
|
Payment of acquisition
date earnout liability
|
—
|
|
(16.1)
|
Other
|
(4.0)
|
|
(2.1)
|
|
|
|
|
Cash provided by
financing activities
|
298.6
|
|
66.9
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(4.9)
|
|
(2.3)
|
|
|
|
|
(Decrease) increase in
cash and cash equivalents
|
(26.2)
|
|
10.7
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
78.8
|
|
47.5
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
52.6
|
|
$
58.2
|
|
|
|
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
FREE CASH
FLOW
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
|
|
|
Cash provided by
operating activities
|
$
74.6
|
|
$
163.3
|
Less: capital
expenditures
|
65.7
|
|
33.9
|
Plus: proceeds from
disposal of assets
|
0.9
|
|
2.0
|
Plus: pension
contributions
|
2.9
|
|
12.3
|
Free cash flow
(FCF)
|
$
12.7
|
|
$
143.7
|
|
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
|
|
2022
|
|
2021
|
|
2021
|
|
Prior
Year-End
|
|
Prior
Year
|
Total debt
|
$
979.8
|
|
$
674.4
|
|
$
653.2
|
|
$
305.4
|
|
$
326.6
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
(52.6)
|
|
(78.8)
|
|
(58.2)
|
|
26.2
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
$
927.2
|
|
$
595.6
|
|
$
595.0
|
|
$
331.6
|
|
$
332.2
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BANK TOTAL NET
LEVERAGE RATIO CALCULATION
|
(Unaudited and in
millions)
|
|
|
|
As of
|
|
September 30,
2022
|
Total debt
|
$
979.8
|
Cash and cash
equivalents
|
(52.6)
|
Net debt
|
927.2
|
Other items considered
debt under the credit agreement
|
20.5
|
Consolidated total
indebtedness(1)
|
$
947.7
|
|
|
Trailing twelve months
Adjusted EBITDA
|
$
252.6
|
Pro forma EBITDA of
recent acquisitions(2)
|
23.3
|
Trailing twelve months
pro forma Adjusted EBITDA
|
275.9
|
Other adjustments net
to earnings under the credit agreement
|
(2.9)
|
Consolidated
EBITDA(1)
|
$
273.0
|
|
|
Bank total net leverage
ratio (Consolidated Total Indebtedness / Consolidated
EBITDA)
|
3.5
|
|
|
Total net debt to
trailing twelve months pro forma Adjusted EBITDA
|
3.4
|
|
|
(1) As defined in the
credit agreement
|
|
|
(2) Pro forma EBITDA
related to the acquisitions in the prior twelve months.
|
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
2022
|
|
Full Year
2022
|
|
|
|
|
Diluted earnings per
share from net income
|
$1.15 -
$1.30
|
|
$4.05 -
$4.20
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
Restructuring related
costs(1)
|
—
|
|
0.09
|
M&A related
costs(2)
|
0.17
|
|
0.45
|
LIFO
expense(3)
|
0.08
|
|
0.22
|
|
|
|
|
Impact on tax provision
from Non-GAAP adjustments(4)
|
(0.05)
|
|
(0.16)
|
|
|
|
|
Adjusted diluted
earnings per share from net income
|
$1.35 -
$1.50
|
|
$4.65 -
$4.80
|
|
(1) Restructuring
related costs is estimated to be approximately $3 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 $5-6 million and $14-15
million for the fourth 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 $2-3 million and $7 million for the
fourth 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 21-22%.
|
JBT
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
OPERATING PROFIT MARGIN GUIDANCE TO ADJUSTED EBITDA MARGIN
GUIDANCE
|
(Unaudited and in
percents)
|
|
|
|
|
|
|
|
|
|
Guidance Q4
2022
|
|
Guidance Full Year
2022
|
|
JBT
FoodTech
|
|
JBT
AeroTech
|
|
JBT
FoodTech
|
|
JBT
AeroTech
|
Operating
profit
|
13.75 - 14.50
%
|
|
11.00 - 12.00
%
|
|
13.00 - 13.30
%
|
|
7.75 - 8.25
%
|
M&A related
cost(1)
|
~ 0.75
|
|
—
|
|
~ 0.50
|
|
—
|
Adjusted operating
profit
|
14.50 -
15.25
|
|
11.00 -
12.00
|
|
13.50 -
13.80
|
|
7.75 - 8.25
|
Depreciation and
amortization
|
~ 4.50
|
|
~ 0.75
|
|
~ 4.50
|
|
~ 0.75
|
Adjusted EBITDA
%
|
19.00 - 19.75
%
|
|
11.75 - 12.75
%
|
|
18.00 - 18.30
%
|
|
8.50 - 9.00
%
|
|
(1) Guidance includes
M&A related costs which 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.
|
Investors & Media: Kedric
Meredith, 312.861.6034
View original
content:https://www.prnewswire.com/news-releases/jbt-corporation-reports-third-quarter-2022-results-301660448.html
SOURCE JBT Corporation