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JBT Quarterly Results
Jul 31, 2017

JBT Reports Second Quarter 2017 Earnings

Raises Revenue Guidance for Full-year 2017

CHICAGO, July 31, 2017 /PRNewswire/ -- JBT Corporation (NYSE: JBT), a global technology solutions provider to high-value segments of the food & beverage industry, announced today it has purchased PLF International Limited (PLF), a provider of powder filling systems for the global food and beverage markets. The purchase price is £28 million, before customary post-closing adjustments. Privately held PLF is headquartered in Harwich (Essex), England.  

"JBT and PLF have collaborated on numerous, successful projects over the past 10 years," said Tom Giacomini, Chairman, President and Chief Executive Officer. "Specifically, customers have purchased PLF fillers and JBT closers as part of an integrated solution. Adding PLF's expertise and complementary products to Liquid Foods provides a valuable extension to our portfolio. Additionally, we can expand PLF's business geographically and strengthen its aftermarket opportunities."

The acquisition of PLF adds annual revenue of approximately $25 million. Transaction costs and purchase price accounting associated with the acquisition are expected to more than offset earnings generated under JBT ownership in 2017, with a negative impact of approximately $0.03 per share. The Company anticipates earnings accretion of $0.03 - $0.05 per share for 2018 and $0.06 - $0.08 per share for 2019.

Additional information on PLF can be found on JBT's website at www.jbtc.com/acquisitions/PLF-International-Limited, while further information on JBT's acquisition strategy can be found at the Investor Relations link at http://ir.jbtcorporation.com.

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 5,700 people worldwide and operates sales, service, manufacturing and sourcing operations in more than 25 countries. For more information, please visit www.jbtc.com.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption "Risk Factors" in the Company's most recent Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission that may be accessed on the Company's website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.



JBT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited and in millions, except per share data)










Three Months Ended


Six Months Ended


June 30 ,


June 30 ,


2017


2016


2017


2016









Revenue

$386.1



$328.8



$730.6



$595.9


Cost of sales

271.3



233.0



518.2



423.3










Gross profit

114.8



95.8



212.4



172.6










Selling, general and administrative expense

77.0



58.0



147.5



111.9


Research and development expense

6.4



5.9



12.7



11.4


Restructuring expense

0.6



1.9



1.0



9.1


Other expense (income), net

1.1



0.1



1.0



0.6










Operating income

29.7



29.9



50.2



39.6










Net interest expense

3.3



2.2



6.7



4.2


Income from continuing operations before income taxes

26.4



27.7



43.5



35.4


Provision for income taxes

8.1



8.9



7.6



11.4


Income from continuing operations

18.3



18.8



35.9



24.0


Loss from discontinued operations, net of taxes

(0.4)





(0.6)



(0.1)


Net income

$17.9



$18.8



$35.3



$23.9










Basic earnings per share:








Income from continuing operations

$0.57



$0.64



$1.16



$0.81


Loss from discontinued operations

(0.01)





(0.02)




Net income

$0.56



$0.64



$1.14



$0.81










Diluted earnings per share:








Income from continuing operations

$0.57



$0.63



$1.14



$0.80


Loss from discontinued operations

(0.01)





(0.02)




Net income

$0.56



$0.63



$1.12



$0.80










Weighted average shares outstanding








Basic

31.9



29.4



31.0



29.4


Diluted

32.3



29.8



31.4



29.8











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


Six Months Ended


June 30 ,


June 30 ,


2017


2016


2017


2016









Income from continuing operations as reported

$18.3



$18.8



$35.9



$24.0










Non-GAAP adjustments:








Restructuring expense

0.6



1.9



1.0



9.1










Impact on tax provision from Non-GAAP adjustments(1)

(0.2)



(0.6)



(0.3)



(2.9)










Adjusted income from continuing operations

$18.7



$20.1



$36.6



$30.2


















Income from continuing operations as reported

$18.3



$18.8



$35.9



$24.0


Total shares and dilutive securities

32.3



29.8



31.4



29.8


Diluted earnings per share from continuing operations

$0.57



$0.63



$1.14



$0.80










Adjusted income from continuing operations

$18.7



$20.1



$36.6



$30.2


Total shares and dilutive securities

32.3



29.8



31.4



29.8


Adjusted diluted earnings per share from continuing operations

$0.58



$0.67



$1.17



$1.01










(1) Impact on tax provision was calculated using the Company's annual effective tax rate of 30.6%.


The above table contains adjusted income from continuing operations and adjusted diluted earnings per share from continuing operations, which are non-GAAP financial measures, and are intended to provide an indication of our underlying ongoing operating results and to enhance investors' overall understanding of our financial performance by eliminating the effects of certain items that are not comparable from one period to the next. In addition, this information is used as a basis for evaluating our performance and for the planning and forecasting of future periods. This information is not intended to nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.


JBT CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(Unaudited and in millions)










Three Months Ended


Six Months Ended


June 30 ,


June 30 ,


2017


2016


2017


2016









Net income

$17.9



$18.8



$35.3



$23.9










Loss from discontinued operations, net of taxes

(0.4)





(0.6)



(0.1)










Income from continuing operations as reported

18.3



18.8



35.9



24.0










Provision (benefit) for income taxes

8.1



8.9



7.6



11.4


Net interest expense

3.3



2.2



6.7



4.2


Depreciation and amortization

12.9



9.5



25.1



18.1










EBITDA

42.6



39.4



75.3



57.7










Restructuring expense

0.6



1.9



1.0



9.1










Adjusted EBITDA

$43.2



$41.3



$76.3



$66.8










The above table provides net income as adjusted by income taxes, net interest expense and depreciation and amortization expense recorded during the period to arrive at EBITDA. Further, we add back to EBITDA significant expenses that are not indicative of our ongoing operations to calculate an Adjusted EBITDA for the periods reported. Given the Company's focus on growth through strategic acquisitions, management considers Adjusted EBITDA to be an important non-GAAP financial measure. This measure allows us to monitor 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. This information is not intended to nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.


JBT CORPORATION

BUSINESS SEGMENT DATA

(Unaudited and in millions)










Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2016


2017


2016

Revenue








JBT FoodTech

$278.9



$228.8



$520.5



$406.3


JBT AeroTech

107.1



100.5



210.0



190.6


Intercompany eliminations

0.1



(0.5)



0.1



(1.0)


Total revenue

$386.1



$328.8



$730.6



$595.9










Income before income taxes







Segment operating profit (1)








JBT FoodTech

$31.1



$31.0



$51.6



$49.8


JBT AeroTech

10.8



11.4



20.4



19.9


Total segment operating profit

41.9



42.4



72.0



69.7










Corporate expense(1)

(11.6)



(10.6)



(20.8)



(21.0)


Restructuring expense

(0.6)



(1.9)



(1.0)



(9.1)










Operating income

$29.7



$29.9



$50.2



$39.6










Other business segment information









Inbound Orders








JBT FoodTech

$283.0



$201.0



$600.9



$423.07


JBT AeroTech

135.1



106.9



221.4



228.6


Intercompany eliminations



(0.5)



0.1



(0.9)


Total inbound orders

$418.1



$307.4



$822.4



$651.4















As of June 30,






2017


2016

Order Backlog








JBT FoodTech





$427.3



$328.9


JBT AeroTech





242.7



250.7


Total order backlog





$670.0



$579.6










(1) Segment operating profit is defined as total segment revenue less segment operating expenses. Corporate expense, restructuring expense, interest income and expense and income taxes are not allocated to the segments. Corporate expense generally includes corporate staff-related expense, stock-based compensation, pension and other postretirement benefit expenses not related to service, LIFO adjustments, certain foreign currency related gains and losses, and the impact of unusual or strategic events not representative of segment operations.


JBT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in millions)






June 30,


Dec. 31,


2017


2016





Cash and cash equivalents

$26.3



$33.2


Trade receivables, net

281.8



260.5


Inventories

198.3



139.6


Other current assets

54.0



51.7


Total current assets

560.4



485.0






Property, plant and equipment, net

220.7



210.2


Other assets

538.5



492.2


Total assets

$1,319.6



$1,187.4










Short-term debt and current portion of long-term debt

$7.6



$7.1


Accounts payable, trade and other

139.4



135.7


Advance and progress payments

129.6



110.5


Other current liabilities

127.1



139.7


Total current liabilities

403.7



393.0






Long-term debt, less current portion

391.9



491.6






Accrued pension and other postretirement benefits, less current portion

85.1



86.1


Other liabilities

36.2



36.8






Common stock and additional paid-in capital

249.8



70.3


Retained earnings

295.0



266.6


Accumulated other comprehensive loss

(142.1)



(157.0)


Total stockholders' equity

402.7



179.9


Total liabilities and stockholders' equity

$1,319.6



$1,187.4



JBT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in millions)






Six Months Ended


June 30 ,


2017


2016





Cash flows from operating activities:




Income from continuing operations

$35.9



$24.0






Adjustments to reconcile income to cash provided by operating activities:




Depreciation and amortization

25.1



18.1


Other

5.1



9.6






Changes in operating assets and liabilities:




Trade accounts receivable, net

(13.2)



(18.0)


Inventories

(39.9)



(44.4)


Accounts payable, trade and other

(4.0)



3.0


Advance and progress payments

10.6



21.6


Other - assets and liabilities, net

(17.6)



(13.2)






Cash provided by continuing operating activities

2.0



0.7






Cash required by discontinued operating activities

(0.6)



(0.1)






Cash provided by operating activities

1.4



0.6






Cash flows required by investing activities:




Acquisitions, net of cash acquired

(62.1)



(3.2)


Capital expenditures

(17.5)



(20.9)


Other

1.1



1.0






Cash required by investing activities

(78.5)



(23.1)






Cash flows provided by financing activities:




Net proceeds (payments) on credit facilities

(99.2)



30.0


Dividends

(6.4)



(6.0)


Purchase of treasury stock



(4.4)


Proceeds form stock issuance, net of stock issuance costs

184.1




Other

(9.5)



(1.1)






Cash provided by financing activities

69.0



18.5






Effect of foreign exchange rate changes on cash and cash equivalents

1.2



1.9






Decrease in cash and cash equivalents

(6.9)



(2.1)






Cash and cash equivalents, beginning of period

33.2



37.2






Cash and cash equivalents, end of period

$26.3



$35.1


 

Investors & Media: Jeff Scipta +1 312 861 5930

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