JOHN BEAN TECHNOLOGIES CORPORATION CHICAGO, Oct. 26, 2016 /PRNewswire/ --
Third-quarter 2016 Highlights and 2016 Guidance:
-- Revenue of $349.6 million, up 28 percent from prior year period
-- Segment operating profit of $40.2 million, an increase of 34 percent
-- Inbound orders increased 21 percent year over year
-- Diluted earnings per share from continuing operations of $0.69 vs. $0.43
in the third quarter of 2015
-- Raises full-year 2016 diluted earnings per share guidance to $2.05 -
$2.15 or $2.30 - $2.40 on an adjusted basis, inclusive of a projected
$0.06 - $0.10 per share reduction from fourth quarter acquisitions
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 2016.
Third quarter 2016 revenue increased 28 percent from the same period in 2015, comprised of 17 percent organic growth and 11 percent growth from acquisitions. Segment operating profit increased 34 percent year over year. Segment operating profit margin improved 50 basis points to 11.5 percent in the third quarter of 2016. The third quarter results benefitted from strong aftermarket performance and a few customer shipments that had been anticipated in the fourth quarter.
Diluted earnings per share from continuing operations was $0.69 for the third quarter of 2016, including acquisition-related costs of $2 million pretax, or $0.04 per share, and a discrete tax benefit of $1.5 million, or $0.05 per share, associated with R&D credits. Diluted earnings per share from continuing operations was $0.43 in the third quarter of 2015.
"We are very pleased to report another quarter of robust earnings growth and expanded profitability," said Tom Giacomini, Chairman, President and Chief Executive Officer. "Our investments in the business, including selective strategic acquisitions, have made us a stronger equipment and service provider, deepening relationships with our customers."
Orders and Backlog
For the third quarter of 2016, inbound orders of $347 million increased 21 percent, reflecting year-over-year increases of 27 percent and 9 percent at FoodTech and AeroTech, respectively. Backlog increased 25 percent year over year.
Acquisitions
On October 14, 2016, JBT completed the acquisition of Cooling and Applied Technologies (C.A.T.), Inc. The purchase price was $90 million, before customary post-closing adjustments. C.A.T. is a leading producer of chillers, injection, marination, weighing, freezing, and refrigeration systems, primarily for the poultry industry. On October 3, 2016, JBT announced a definitive agreement to purchase Tipper Tie, Inc., a leading provider of engineered production and packaging solutions, and related consumables to the food industry. The purchase price is $160 million, before customary post-closing adjustments.
"Both acquisitions add highly complementary product lines to JBT's protein platform, enabling us to offer customers a more complete production solution to their operating challenges," added Giacomini. "The acquisitions also create value for shareholders, with significant projected earnings accretion in 2017 and 2018."
The acquisition of C.A.T. is expected to add annual revenue of approximately $50 million. JBT expects transaction costs and purchase price accounting associated with the acquisition to result in a $0.03 - $0.05 per share negative impact in the fourth quarter of 2016. The Company expects C.A.T. to contribute $0.05 - $0.10 per share to earnings in 2017, inclusive of the impact of continuing purchase price accounting and integration costs. In 2018, the Company anticipates earnings accretion associated with the acquisition of $0.15 - $0.20 per share.
The acquisition of Tipper Tie, slated to close in the fourth quarter of 2016, is expected to add annual revenue of approximately $90 million. JBT projects the acquisition of Tipper Tie to result in dilution of $0.03 - $0.05 per share in the fourth quarter of 2016 and accretion of approximately $0.08 - $0.12 per share in 2017 and $0.23 - $0.28 per share in 2018.
2016 Outlook
"We are raising our full-year 2016 guidance, while absorbing $0.06 to $0.10 per share associated with fourth quarter acquisitions," concluded Giacomini.
Due to strong top-line growth in 2016 and the expected contribution from the recently announced acquisitions, JBT raises its full-year revenue guidance to approximately 20 percent growth - comprised of 7 percent organic growth and 13 percent growth from acquisitions. That compares with the previous forecast of 16 percent revenue growth, with 5 to 6 percent organic growth and 10 percent growth from acquisitions. Segment operating margins are expected to increase 25 to 50 basis points. Excluding the impact of the fourth-quarter acquisitions, the Company continues to expect segment margin expansion of 50 to 75 basis points.
For 2016, the Company anticipates diluted earnings per share of $2.05 - $2.15, or $2.30 - $2.40 on an adjusted basis. That compares with previous guidance of $2.00 - $2.10, or $2.25 - $2.35 on an adjusted basis, and diluted earnings per share of $1.88 in 2015.
2016 Investor Day
JBT Corporation will be hosting its 2016 Investor Day on Thursday, November 3, at the Omni Berkshire Place Hotel in New York, NY. The presentation will be simultaneously webcast in listen-only mode from 12:30 p.m. until 3:30 p.m. EDT. The webcast and presentation materials will be accessible through the Investor Relations link on JBT's website at http://ir.jbtcorporation.com or through a direct link at http://www.wsw.com/webcast/cc/jbt2/. An online audio replay of the presentation will be available on JBT's Investor Relations website starting at approximately 6:00 p.m. EDT on November 3, 2016.
At the Investor Day, Giacomini and the senior management team will present the Company's Elevate strategy and financial framework.
Third Quarter 2016 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. EDT on Thursday, October 27, 2016 to discuss third 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 91012572, 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 October 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 4,300 people worldwide and operates sales, service, manufacturing and sourcing operations in more than 25 countries. For more information, please visit www.jbtcorporation.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.
Investors & Media: Debarshi Sengupta +1 312 861 6933
JBT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2016 2015 2016 2015
---- ---- ---- ----
Revenue $349.6 $273.3 $945.5 $752.9
Cost of sales 255.5 197.1 678.8 538.0
Gross profit 94.1 76.2 266.7 214.9
Selling, general and administrative expense 56.5 48.1 168.4 142.1
Research and development expense 6.3 5.0 17.7 13.0
Restructuring expense 0.3 - 9.4 -
Other expense (income), net 1.5 2.0 2.1 1.8
--- --- --- ---
Operating income 29.5 21.1 69.1 58.0
Net interest expense 2.8 1.5 7.0 5.3
--- --- --- ---
Income from continuing operations before income taxes 26.7 19.6 62.1 52.7
Provision for income taxes 6.1 6.9 17.5 17.6
--- --- ---- ----
Income from continuing operations 20.6 12.7 44.6 35.1
Loss from discontinued operations, net of taxes - (0.1) (0.1) (0.1)
--- ---- ---- ----
Net income $20.6 $12.6 $44.5 $35.0
===== ===== ===== =====
Basic earnings per share:
Income from continuing operations $0.70 $0.43 $1.52 $1.19
Loss from discontinued operations - - (0.01) -
Net income $0.70 $0.43 $1.51 $1.19
===== ===== ===== =====
Diluted earnings per share:
Income from continuing operations $0.69 $0.43 $1.50 $1.18
Loss from discontinued operations - (0.01) (0.01) (0.01)
Net income $0.69 $0.42 $1.49 $1.17
===== ===== ===== =====
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 Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Income from continuing operations as reported $20.6 $12.7 $44.6 $35.1
Non-GAAP adjustments:
Restructuring expense 0.3 - 9.4 -
Impact on tax provision from Non-GAAP adjustments(1) (0.1) - (3.0) -
---- --- ---- ---
Adjusted income from continuing operations $20.8 $12.7 $51.0 $35.1
===== ===== ===== =====
Income from continuing operations as reported $20.6 $12.7 $44.6 $35.1
----- ----- ----- -----
Total shares and dilutive securities 29.8 29.8 29.8 29.8
---- ---- ---- ----
Diluted earnings per share from continuing operations $0.69 $0.43 $1.50 $1.18
===== ===== ===== =====
Adjusted income from continuing operations $20.8 $12.7 $51.0 $35.1
----- ----- ----- -----
Total shares and dilutive securities 29.8 29.8 29.8 29.8
---- ---- ---- ----
Adjusted diluted earnings per share from continuing operations $0.70 $0.43 $1.71 $1.18
===== ===== ===== =====
(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 Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Net income $20.6 $12.6 $44.5 $35.0
Loss from discontinued operations, net of taxes - (0.1) (0.1) (0.1)
--- ---- ---- ----
Income from continuing operations as reported 20.6 12.7 44.6 35.1
Provision for income taxes 6.1 6.9 17.5 17.6
Net interest expense 2.8 1.5 7.0 5.3
Depreciation and amortization 9.1 7.3 27.2 20.9
--- --- ---- ----
EBITDA 38.6 28.4 96.3 78.9
Restructuring expense 0.3 - 9.4 -
Adjusted EBITDA $38.9 $28.4 $105.7 $78.9
===== ===== ====== =====
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 Next Level 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
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF DILUTED EARNINGS PER SHARE GUIDANCE TO
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE
(Unaudited and in cents)
Updated Guidance
Full Year 2016
--------------
Diluted earnings per share from
continuing operations $2.05 - $2.15
Non-GAAP adjustments:
Restructuring expense (1) $0.40
Impact on tax provision from Non-
GAAP adjustments(2) $(0.15)
Adjusted diluted earnings per
share from continuing operations $2.30 - $2.40
=============
(1) Restructuring expense is estimated to be between $11.0
million and $13.0 million for the full year of 2016. We
have used the mid-point of the full year estimate in the
table above. These amounts have been divided by our
estimate of 29.8 million total shares and dilutive
securities to derive the earnings per share value.
(2) Impact on tax provision was calculated using the
Company's expected tax rate to be incurred on these
restructuring costs of 36%.
JBT CORPORATION
BUSINESS SEGMENT DATA
(Unaudited and in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Revenue
-------
JBT FoodTech $235.9 $177.8 $642.2 $480.9
JBT AeroTech 112.7 95.8 303.3 272.8
Intercompany eliminations 1.0 (0.3) - (0.8)
Total revenue $349.6 $273.3 $945.5 $752.9
====== ====== ====== ======
Income before income taxes
--------------------------
Segment operating profit (1)
---------------------------
JBT FoodTech $28.2 $20.5 $78.0 $56.1
JBT AeroTech 12.0 9.5 31.9 26.2
---- --- ---- ----
Total segment operating profit 40.2 30.0 109.9 82.3
Corporate expense (1) (10.4) (8.9) (31.4) (24.3)
Restructuring expense (0.3) - (9.4) -
Operating income $29.5 $21.1 $69.1 $58.0
===== ===== ===== =====
Other business segment information
----------------------------------
Inbound Orders
--------------
JBT FoodTech $242.2 $190.5 $665.0 $542.6
JBT AeroTech 104.6 96.2 333.2 292.1
Intercompany eliminations - (0.2) - (0.7)
Total inbound orders $346.8 $286.5 $998.2 $834.0
====== ====== ====== ======
As of September 30,
-------------------
2016 2015
---- ----
Order Backlog
-------------
JBT FoodTech $334.1 $276.0
JBT AeroTech 242.5 185.0
Total order backlog $576.6 $461.0
====== ======
(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)
September 30, December 31,
2016 2015
---- ----
Cash and
cash
equivalents $47.9 $37.2
Trade
receivables,
net 240.9 212.5
Inventories 143.4 104.9
Other
current
assets 40.2 41.6
---- ----
Total
current
assets 472.4 396.2
Property,
plant and
equipment,
net 187.6 181.1
Other
assets 300.7 298.8
----- -----
Total
assets $960.7 $876.1
====== ======
Short-
term debt
and
current
portion
of long-
term debt $5.4 $2.2
Accounts
payable,
trade and
other 120.7 110.7
Advance
and
progress
payments 127.2 115.8
Other
current
liabilities 137.2 124.4
----- -----
Total
current
liabilities 390.5 353.1
Long-term
debt,
less
current
portion 300.2 280.6
Accrued
pension
and other
postretirement
benefits,
less
current
portion 75.3 90.7
Other
liabilities 25.6 22.0
Common
stock and
additional
paid-in
capital 67.5 65.8
Retained
earnings 246.6 211.1
Accumulated
other
comprehensive
loss (145.0) (147.2)
------ ------
Total
stockholders'
equity 169.1 129.7
----- -----
Total
liabilities
and
stockholders'
equity $960.7 $876.1
====== ======
JBT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
Nine Months Ended
September 30,
-------------
2016 2015
---- ----
Cash flows from operating
activities:
Income from
continuing
operations $44.6 $35.1
Adjustments to reconcile income
to cash provided by operating
activities:
Depreciation and
amortization 27.2 20.9
Other 8.0 7.0
Changes in operating assets and
liabilities:
Trade accounts
receivable, net (27.0) (0.5)
Inventories (37.9) (17.2)
Accounts payable,
trade and other 10.3 14.2
Advance and
progress
payments 10.3 18.9
Other -assets
and liabilities,
net (8.6) (30.5)
---- -----
Cash provided by
continuing
operating
activities 26.9 47.9
Cash required by
discontinued
operating
activities (0.1) (0.1)
---- ----
Cash provided by
operating
activities 26.8 47.8
---- ----
Cash flows required by investing
activities:
Acquisitions, net
of cash acquired (3.2) (50.9)
Capital
expenditures (24.9) (26.5)
Other 1.9 2.9
--- ---
Cash required by
investing
activities (26.2) (74.5)
----- -----
Cash flows provided (required)
by financing activities:
Net proceeds
(payments) on
credit
facilities 22.4 56.6
Dividends (8.9) (8.3)
Purchase of
treasury stock (4.4) (7.7)
Other (1.1) (3.4)
---- ----
Cash provided
(required) by
financing
activities 8.0 37.2
--- ----
Effect of foreign
exchange rate
changes on cash
and cash
equivalents 2.1 (5.9)
--- ----
Decrease in cash
and cash
equivalents 10.7 4.6
Cash and cash
equivalents,
beginning of
period 37.2 33.3
Cash and cash
equivalents, end
of period $47.9 $37.9
===== =====
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SOURCE JBT Corporation
