JOHN BEAN TECHNOLOGIES CORPORATION CHICAGO, April 25, 2017 /PRNewswire/ --
First-Quarter 2017 Highlights:
-- Revenue of $345 million, up 29 percent from prior year period
-- Segment operating profit of $30.1 million, an increase of 10 percent
-- Diluted earnings per share from continuing operations of $0.58,
including a $0.19 discrete tax benefit; this compares with $0.17, or
$0.34 on an adjusted basis, in the first quarter of 2016
-- Inbound orders of $404 million, ahead 18 percent
-- Completed a 2.3 million share equity offering, with net proceeds of $184
million
JBT Corporation (NYSE: JBT), a leading global technology solutions provider to high-value segments of the food & beverage industry, today reported results for the first quarter of 2017.
Revenue increased 29 percent from the same period in 2016, comprised of 16 percent organic growth and 13 percent growth from acquisitions. Segment operating profit increased 10 percent year over year. Segment operating profit margin declined 150 basis points to 8.7 percent in the first quarter of 2017, due to acquisition-related items and product mix at FoodTech and AeroTech.
Diluted earnings per share from continuing operations was $0.58 for first quarter of 2017, including the previously disclosed discrete tax benefit, resulting in a $0.19 per share benefit. In the first quarter of 2016, diluted earnings per share from continuing operations was $0.17, or $0.34 on an adjusted basis.
"Our first quarter performance reflected strong customer activity and healthy business conditions," said Tom Giacomini, Chairman, President and Chief Executive Officer.
Orders and Backlog
For the first quarter of 2017, inbound orders of $404 million increased 18 percent from the prior year, reflecting a gain of 43 percent at FoodTech and a 29 percent decline at AeroTech. Backlog improved 4 percent compared to year-end 2016.
Acquisitions
On February 27, 2017, JBT announced it had acquired Avure Technologies, Inc., a leading provider of high pressure processing (HPP) systems. "Our customers' reception to Avure's technology, and its application across Protein and Liquid Foods, has been very encouraging," stated Giacomini.
Equity Offering
In the first quarter of 2017, JBT completed a 2.3 million share equity offering, generating net proceeds of $184 million. "The offering strengthens our balance sheet and provides greater flexibility to continue our disciplined, strategically-driven acquisition program," said Brian Deck, Executive Vice President and Chief Financial Officer.
2017 Outlook
As a result of the equity offering, the Company expects higher net income, due to lower interest expense. However, with the increased share count, there will be modest EPS dilution. The Company now forecasts full-year diluted earnings per share from continuing operations of $2.95 - $3.10.
While the Company's operating income guidance is unchanged, it now expects slightly higher revenue growth and lower segment margins. JBT is raising its forecast for organic revenue growth to 4 to 6 percent, compared with previous guidance of 3 to 5 percent, bringing the total revenue growth forecast to 16 percent, inclusive of 11 percent growth from acquisitions. The Company also expects segment operating margin expansion of 25 to 50 basis points in 2017, compared with the previous guidance of approximately 50 basis points.
The Company estimates second quarter 2017 revenues of approximately $380 million and income from continuing operations of $0.50 per diluted share. Segment operating profit will reflect continued acquisition-related items and a similar product mix to the first quarter.
First Quarter 2017 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. EDT on Wednesday, April 26, 2017 to discuss first quarter 2017 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 93411330, 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 April 26, 2017.
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 5,100 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.
JBT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and in millions, except per share data)
Three Months Ended
March 31,
2017 2016
---- ----
Revenue $344.5 $267.1
Cost of sales 246.9 190.3
Gross profit 97.6 76.8
Selling, general and administrative
expense 70.5 53.9
Research and development expense 6.3 5.5
Restructuring expense 0.4 7.2
Other expense (income), net (0.1) 0.5
---- ---
Operating income 20.5 9.7
Net interest expense 3.4 2.0
--- ---
Income from continuing operations
before income taxes 17.1 7.7
Provision (benefit) for income taxes (0.5) 2.5
---- ---
Income from continuing operations 17.6 5.2
Loss from discontinued operations,
net of taxes (0.2) (0.1)
---- ----
Net income $17.4 $5.1
===== ====
Basic earnings per share:
Income from continuing operations $0.59 $0.18
Loss from discontinued operations (0.01) (0.01)
Net income $0.58 $0.17
===== =====
Diluted earnings per share:
Income from continuing operations $0.58 $0.17
Loss from discontinued operations (0.01) -
Net income $0.57 $0.17
===== =====
Weighted average shares outstanding
Basic 30.0 29.5
Diluted 30.4 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
March 31,
2017 2016
---- ----
Income from continuing operations as
reported $17.6 $5.2
Non-GAAP adjustments:
Restructuring expense 0.4 7.2
Impact on tax provision from Non-GAAP
adjustments(1) (0.1) (2.3)
---- ----
Adjusted income from continuing
operations $17.9 $10.1
===== =====
Income from continuing operations as
reported $17.6 $5.2
----- ----
Total shares and dilutive securities 30.4 29.8
---- ----
Diluted earnings per share from
continuing operations $0.58 $0.17
===== =====
Adjusted income from continuing
operations $17.9 $10.1
----- -----
Total shares and dilutive securities 30.4 29.8
---- ----
Adjusted diluted earnings per share
from continuing operations $0.59 $0.34
===== =====
(1) Impact on tax
provision was calculated using the
Company's annual effective tax
rate of 30.78% and 32.00%, for
2017 and 2016, respectively.
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
March 31,
2017 2016
---- ----
Net income $17.4 $5.1
Loss from
discontinued
operations, net
of taxes (0.2) (0.1)
---- ----
Income from
continuing
operations as
reported 17.6 5.2
Provision
(benefit) for
income taxes (0.5) 2.5
Net interest
expense 3.4 2.0
Depreciation and
amortization 12.2 8.6
---- ---
EBITDA 32.7 18.3
Restructuring
expense 0.4 7.2
Adjusted EBITDA $33.1 $25.5
===== =====
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
March 31,
2017 2016
---- ----
Revenue
-------
JBT FoodTech $241.6 $177.5
JBT AeroTech 102.9 90.1
Intercompany eliminations - (0.5)
Total revenue $344.5 $267.1
====== ======
Income before income taxes
--------------------------
Segment operating profit(1)
--------------------------
JBT FoodTech $20.5 $18.8
JBT AeroTech 9.6 8.5
--- ---
Total segment operating
profit 30.1 27.3
Corporate expense(1) (9.2) (10.4)
Restructuring expense (0.4) (7.2)
Operating income $20.5 $9.7
===== ====
Other business segment information
----------------------------------
Inbound Orders
--------------
JBT FoodTech $317.9 $222.7
JBT AeroTech 86.3 121.7
Intercompany
eliminations/other 0.1 (0.4)
Total inbound orders $404.3 $344.0
====== ======
As of March 31,
2017 2016
---- ----
Order Backlog
-------------
JBT FoodTech $413.4 $360.3
JBT AeroTech 214.4 244.8
Total order backlog $627.8 $605.1
====== ======
(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)
March 31, December 31,
2017 2016
---- ----
Cash and cash
equivalents $42.9 $33.2
Trade
receivables, net 246.6 260.5
Inventories 178.4 139.6
Other current
assets 52.6 51.7
---- ----
Total current
assets 520.5 485.0
Property, plant
and equipment,
net 216.8 210.2
Other assets 534.5 492.2
----- -----
Total assets $1,271.8 $1,187.4
======== ========
Short-term debt
and current
portion of long-
term debt $7.8 $7.1
Accounts payable,
trade and other 137.3 135.7
Advance and
progress
payments 136.4 110.5
Other current
liabilities 120.7 139.7
----- -----
Total current
liabilities 402.2 393.0
Long-term debt,
less current
portion 372.6 491.6
Accrued pension
and other
postretirement
benefits, less
current portion 85.4 86.1
Other liabilities 35.3 36.8
Common stock and
additional paid-
in capital 247.5 70.3
Retained earnings 280.3 266.6
Accumulated other
comprehensive
loss (151.5) (157.0)
------ ------
Total
stockholders'
equity 376.3 179.9
----- -----
Total liabilities
and
stockholders'
equity $1,271.8 $1,187.4
======== ========
JBT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
Three Months Ended
March 31,
2017 2016
---- ----
Cash flows from operating
activities:
Income from
continuing
operations $17.6 $5.2
Adjustments to reconcile income to
cash provided by operating
activities:
Depreciation and
amortization 12.2 8.6
Other 1.5 3.5
Changes in operating assets and
liabilities:
Trade accounts
receivable, net 18.5 4.6
Inventories (22.8) (29.6)
Accounts payable,
trade and other (2.6) (1.6)
Advance and
progress payments 20.5 19.9
Other -assets and
liabilities, net (20.9) (10.4)
----- -----
Cash provided by
continuing
operating
activities 24.0 0.2
Cash required by
discontinued
operating
activities (0.2) -
---- ---
Cash provided by
operating
activities 23.8 0.2
---- ---
Cash flows required by investing
activities:
Acquisitions, net
of cash acquired (61.0) (3.2)
Capital
expenditures (7.9) (11.4)
Other 0.5 0.4
--- ---
Cash required by
investing
activities (68.4) (14.2)
----- -----
Cash flows provided by financing
activities:
Net proceeds
(payments) on
credit facilities (118.4) 16.4
Dividends (3.2) (3.1)
Purchase of
treasury stock - (1.1)
Proceeds form stock
issuance, net of
stock issuance
costs 184.6 -
Other (9.5) (1.1)
---- ----
Cash provided by
financing
activities 53.5 11.1
---- ----
Effect of foreign
exchange rate
changes on cash
and cash
equivalents 0.8 1.7
--- ---
Increase (Decrease)
in cash and cash
equivalents 9.7 (1.2)
Cash and cash
equivalents,
beginning of
period 33.2 37.2
Cash and cash
equivalents, end
of period $42.9 $36.0
===== =====
Investors & Media: Jeff Scipta, +1 312 861 5930
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SOURCE JBT Corporation
