JBT Quarterly Results

JBT Reports Robust Results in the 2nd Quarter of 2016

JBT Reports Robust Results in the 2nd Quarter of 2016

CHICAGO, July 26, 2016 /PRNewswire/ — 

Second quarter 2016 Highlights and 2016 Guidance:

  • Revenue of $328.8 million, up 29 percent from prior year period
  • Segment operating profit of $42.4 million, an increase of 38 percent
  • Diluted earnings per share of $0.63 and adjusted diluted earnings per share of $0.67 vs. diluted earnings per share of $0.48 in the second quarter of 2015
  • Raises full-year 2016 diluted earnings per share guidance to $2.00 – $2.10, or $2.25 – $2.35 on an adjusted basis, compared with previous guidance of $1.90 – $2.05, or $2.15 – $2.30 on an adjusted basis

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 2016.

Second quarter 2016 revenue increased 29 percent from the same period in 2015, comprised of 14 percent organic growth and 15 percent growth from acquisitions. Segment operating profit increased 38 percent year over year. Segment operating profit margin improved 80 basis points to 12.9 percent in the second quarter of 2016.

Diluted earnings per share from continuing operations was $0.63 for the second quarter of 2016 versus $0.48 in the second quarter of 2015. Excluding restructuring charges of $1.9 million in the second quarter of 2016, adjusted diluted earnings per share was $0.67. There were no restructuring charges in the second quarter of 2015.

“JBT continued to capture the benefits of our Next Level strategy and investments, translating to robust sales growth and improved profitability,” said Tom Giacomini, Chairman, President and Chief Executive Officer. “FoodTech’s protein equipment sales and aftermarket performance were particularly strong in the quarter. Profitability also benefited from strong military sales and a favorable product mix at AeroTech.”

Orders and Backlog

For the second quarter of 2016, inbound orders of $307 million expanded 27 percent, reflecting year-over-year increases of 38 percent and 12 percent, respectively, at FoodTech and AeroTech. Backlog expanded 36 percent year over year. “While orders increased substantially year over year – including a 15 percent increase in organic orders – some FoodTech orders anticipated in the quarter were delayed,” continued Giacomini.

2016 Outlook

“Based on our strong first-half performance and improved profitability, we are raising our full-year 2016 guidance,” concluded Giacomini. For 2016, the Company now anticipates GAAP diluted earnings per share of $2.00 – $2.10, or $2.25 – $2.35 on an adjusted basis. That compares with previous GAAP guidance of $1.90 – $2.05, or $2.15 – $2.30 on an adjusted basis, and diluted earnings per share of $1.88 in 2015. JBT anticipates revenue growth of approximately 16 percent, reflecting organic growth of 5 – 6 percent and 10 percent growth from acquisitions. The Company expects segment operating margin expansion of 50 – 75 basis points, compared with the previous guidance of 25 – 50 basis point expansion. For the third quarter of 2016, the Company anticipates a seasonal decline in earnings from second quarter levels, similar to 2015. The fourth quarter is expected to be seasonally stronger, with performance in line with the fourth quarter of 2015.

Second Quarter 2016 Earnings Conference Call

A conference call is scheduled for 10:00 a.m. EDT on Wednesday, July 27, 2016to discuss second quarter 2016 financial results.  Participants may access the conference call by dialing (877) 201-0168 in the U.S. and Canada or (647) 788-4901 for international callers and using conference ID 42437631, or through the Investor Relations link on our website at http://ir.jbtcorporation.com. An online audio replay of the call will be available on the Company’s Investor Relations website at approximately 1:30 p.m. EDT on July 27, 2016.

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 4,200 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 the Company’s ability to control. These risks and uncertainties are described under the caption “Risk Factors” in the Company’s periodic filings 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,


2016


2015


2016


2015









Revenue

$328.8



$254.6



$595.9



$479.6


Cost of sales

233.0



180.4



423.3



340.9










Gross profit

95.8



74.2



172.6



138.7










Selling, general and administrative expense

58.0



46.6



111.9



94.0


Research and development expense

5.9



4.3



11.4



8.0


Restructuring expense

1.9





9.1




Other expense (income), net

0.1



0.1



0.6



(0.2)










Operating income

29.9



23.2



39.6



36.9










Net interest expense

2.2



2.0



4.2



3.8


Income from continuing operations before income taxes

27.7



21.2



35.4



33.1


Provision for income taxes

8.9



6.8



11.4



10.7


Income from continuing operations

18.8



14.4



24.0



22.4


Loss from discontinued operations, net of taxes





(0.1)




Net income

$18.8



$14.4



$23.9



$22.4










Basic earnings per share:








Income from continuing operations

$0.64



$0.49



$0.81



$0.76


Loss from discontinued operations








Net income

$0.64



$0.49



$0.81



$0.76










Diluted earnings per share:








Income from continuing operations

$0.63



$0.48



$0.80



$0.75


Loss from discontinued operations








Net income

$0.63



$0.48



$0.80



$0.75










Weighted average shares outstanding








Basic

29.4



29.5



29.4



29.5


Diluted

29.8



29.8



29.8



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,


2016


2015


2016


2015









Income from continuing operations as reported

$18.8



$14.4



$24.0



$22.4










Non-GAAP adjustments:








Restructuring expense

1.9





9.1












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

(0.6)





(2.9)












Adjusted income from continuing operations

$20.1



$14.4



$30.2



$22.4


















Income from continuing operations as reported

$18.8



$14.4



$24.0



$22.4


Total shares and dilutive securities

29.8



29.8



29.8



29.8


Diluted earnings per share from continuing operations

$0.63



$0.48



$0.80



$0.75










Adjusted income from continuing operations

$20.1



$14.4



$30.2



$22.4


Total shares and dilutive securities

29.8



29.8



29.8



29.8


Adjusted diluted earnings per share from continuing operations

$0.67



$0.48



$1.01



$0.75










(1) Impact on tax provision was calculated using the Company’s annual effective tax rate of 32.0%.


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,


2016


2015


2016


2015









Net income

$18.8



$14.4



$23.9



$22.4










Loss from discontinued operations, net of taxes





0.1












Income from continuing operations as reported

18.8



14.4



24.0



22.4










Provision for income taxes

8.9



6.8



11.4



10.7


Net interest expense