JOHN BEAN TECHNOLOGIES CORPORATION CHICAGO, Nov. 5, 2014 /PRNewswire/ --
Highlights:
-- Revenue of $243 million, up 4 percent year over year
-- Segment operating profit of $25 million, up 16 percent year over year
-- Diluted earnings per share from continuing operations of $0.30 vs. $0.25
in the third quarter of 2013
-- Adjusted diluted earnings per share from continuing operations of $0.36
vs. $0.27 in the year-ago period.
JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported results for the third quarter of 2014.
Revenue for the third quarter was $243.2 million, an increase of 4 percent from the prior-year quarter. Segment operating profit increased 16 percent, led by segment operating margin expansion at both JBT FoodTech and JBT AeroTech. Corporate expense in the quarter was $8.0 million, including $1.2 million in management succession and consulting costs. In addition, the Company recorded a $1.3 million restructuring charge. Diluted earnings from continuing operations were $0.30 per share in the third quarter of 2014 compared to $0.25 per share in the year-ago period. Excluding restructuring charges and management succession and consulting costs, adjusted diluted earnings per share from continuing operations increased 33% to $0.36, compared to $0.27 in the year-ago period.
Third quarter inbound orders of $263.8 million increased 7% year over year. Backlog of $427.3 million increased 17% over the prior-year period.
"The initial success of our restructuring and strategic pricing initiative is apparent in JBT's expanding operating margins," said Tom Giacomini, Chairman, President and Chief Executive Officer. "On a longer-term basis, our Next Level strategy is establishing the foundation for faster revenue growth and increased profitability."
2014 Outlook
For the full year, the Company projects earnings from continuing operations of $1.45 - $1.55 per share on an adjusted diluted basis and $0.92 - $1.02 on a GAAP basis. The adjusted projection excludes estimated restructuring costs of approximately $14 million, management succession costs of $7 million, and consulting costs of $3 million.
The Company continues to anticipate revenue growth in the mid-single digit range for 2014. It now expects segment operating margin to improve slightly more than previously projected, due to the effectiveness of the restructuring actions and strategic pricing initiatives. However, this improvement is expected to be offset by higher corporate expense, due to greater variable performance-based compensation and higher tax project spending.
Third Quarter 2014 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET on Thursday, November 6, 2014 to discuss the third quarter 2014 financial results. Participants may access the conference call by dialing (877) 235-3250 or (706) 643-5005 and using conference ID 20721693, or through the Investor Relations link on JBT Corporation's 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. ET on November 6, 2014.
JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to the food processing and air transportation industries. JBT Corporation designs, manufactures, tests and services technologically sophisticated systems and products for regional and multi-national industrial food processing customers through its JBT FoodTech segment and for domestic and international air transportation customers through its JBT AeroTech segment. JBT Corporation employs approximately 3,400 people worldwide and operates sales, service, manufacturing and sourcing operations located in over 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 2013 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 Nine Months Ended
September 30, September 30,
------------- -------------
2014 2013 2014 2013
---- ---- ---- ----
Revenue $243.2 $233.5 $688.8 $646.1
Cost of sales 179.0 179.3 504.3 482.5
----- ----- ----- -----
Gross profit 64.2 54.2 184.5 163.6
Selling, general and
administrative expense 43.5 39.2 132.0 120.6
Research and development
expense 3.4 3.7 10.6 10.6
Restructuring expense 1.3 - 12.5 -
Other (income) expense, net 0.8 (0.3) 0.9 (0.6)
--- ---- --- ----
Operating income 15.2 11.6 28.5 33.0
Net interest expense 1.7 1.2 4.5 4.2
--- --- --- ---
Income from continuing
operations before income
taxes 13.5 10.4 24.0 28.8
Provision for income taxes 4.5 3.0 8.3 8.5
--- --- --- ---
Income from continuing
operations 9.0 7.4 15.7 20.3
Loss from discontinued
operations, net of taxes - 0.6 0.1 0.8
--- --- --- ---
Net income $9.0 $6.8 $15.6 $19.5
Basic earnings per share:
Income from
continuing
operations $0.30 $0.25 $0.53 $0.69
Loss from discontinued
operations - (0.02) - (0.02)
--- ----- --- -----
Net income $0.30 $0.23 $0.53 $0.67
Diluted earnings per share:
Income from
continuing
operations $0.30 $0.25 $0.53 $0.68
Loss from discontinued
operations - (0.02) (0.01) (0.02)
--- ----- ----- -----
Net income $0.30 $0.23 $0.52 $0.66
Weighted average shares
outstanding
Basic 29.6 29.2 29.5 29.2
==== ==== ==== ====
Diluted 29.9 29.7 29.8 29.6
==== ==== ==== ====
JBT CORPORATION
---------------
NON-GAAP FINANCIAL MEASURE
--------------------------
(Unaudited and in millions, except per
share data)
The results for the three and nine
months ended September 30, 2014 and
2013 include several items that affect
the comparability of our results.
These include significant expenses
that are not indicative of our on-
going operations as detailed in the
table below:
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2014 2013 2014 2013
---- ---- ---- ----
Income from continuing operations as reported $9.0 $7.4 $15.7 $20.3
Non-GAAP adjustments:
Restructuring expense 1.3 - 12.5 -
Management succession costs 0.8 0.9 3.4 1.2
Strategy and pricing consulting 0.4 - 2.3 -
Impact on tax provision from Non-GAAP adjustments (0.8) (0.3) (5.6) (0.4)
---- ---- ---- ----
Adjusted income from continuing operations $10.7 $8.0 $28.3 $21.1
===== ==== ===== =====
Income from continuing operations as reported 9.0 7.4 15.7 20.3
--- --- ---- ----
Total shares and dilutive securities 29.9 29.7 29.8 29.6
---- ---- ---- ----
Diluted earnings per share from continuing operations $0.30 $0.25 $0.53 $0.68
===== ===== ===== =====
Adjusted income from continuing operations 10.7 8.0 28.3 21.1
---- --- ---- ----
Total shares and dilutive securities 29.9 29.7 29.8 29.6
---- ---- ---- ----
Adjusted diluted earnings per share from continuing operations $0.36 $0.27 $0.95 $0.71
===== ===== ===== =====
The above table contains non-GAAP
financial measures, including
adjusted income from continuing
operations and adjusted diluted
earnings per share. The non-GAAP
measures exclude certain amounts
for the purpose of determining
adjusted income from continuing
operations and adjusted diluted
earnings per share. Adjusted
income from continuing operations
and adjusted diluted earnings per
share are intended to provide an
indication of our underlying
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 Company
performance and for the planning
and forecasting of future periods.
This information is not intended
to 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 Nine Months Ended
September 30, September 30,
------------- -------------
2014 2013 2014 2013
---- ---- ---- ----
Revenue
-------
JBT FoodTech $146.8 $149.0 $455.9 $423.2
JBT AeroTech 95.1 86.0 231.8 222.6
Other revenue (1) and
intercompany eliminations 1.3 (1.5) 1.1 0.3
--- ---- --- ---
Total revenue $243.2 $233.5 $688.8 $646.1
Income before income taxes
--------------------------
Segment operating profit
------------------------
JBT FoodTech $14.8 $13.9 $49.6 $43.0
JBT AeroTech 9.7 7.2 17.3 13.8
--- --- ---- ----
Total segment operating
profit 24.5 21.1 66.9 56.8
Corporate expense (2) (8.0) (9.5) (25.9) (23.8)
Restructuring expense (1.3) - (12.5) -
---- --- ----- ---
Operating income 15.2 11.6 28.5 33.0
Net interest expense 1.7 1.2 4.5 4.2
--- --- --- ---
Income from
continuing
operations before
income taxes $13.5 $10.4 $24.0 $28.8
(1) Other revenue is comprised of
certain gains and losses related
to foreign exchange exposure.
(2) Corporate expense includes
corporate staff costs, stock-
based compensation, pension and
other postretirement benefit
expenses not related to service,
LIFO adjustments, foreign exchange
gains and losses, and the impact
of unusual or strategic
transactions not representative of
segment operations.
JBT CORPORATION
---------------
BUSINESS SEGMENT DATA
---------------------
(Unaudited and in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2014 2013 2014 2013
---- ---- ---- ----
Inbound Orders
--------------
JBT FoodTech $151.7 $146.3 $450.4 $477.2
JBT AeroTech 110.8 102.7 282.4 251.8
Other and intercompany
eliminations 1.3 (1.5) 1.1 0.3
--- ---- --- ---
Total inbound
orders $263.8 $247.5 $733.9 $729.3
September 30,
-------------
2014 2013
---- ----
Order Backlog
-------------
JBT FoodTech $213.9 $223.4
JBT AeroTech 213.4 142.9
----- -----
Total order
backlog $427.3 $366.3
JBT CORPORATION
---------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited and in millions)
September 30, December 31,
2014 2013
---- ----
Cash and cash
equivalents $23.3 $29.4
Trade receivables, net 155.1 186.4
Inventories 138.6 117.6
Other current assets 71.0 63.2
---- ----
Total current assets 388.0 396.6
Property, plant and
equipment, net 137.6 132.7
Other assets 122.8 91.9
Total assets $648.4 $621.2
Short term
debt and
current
portion of
long-term
debt $4.4 $6.3
Accounts payable, trade
and other 88.8 88.1
Advance payments and
progress billings 95.6 88.3
Other current
liabilities 112.1 94.9
----- ----
Total current
liabilities 300.9 277.6
Long-term debt, less
current portion 122.9 94.1
Accrued pension and
other postretirement
benefits,
less current portion 32.5 52.5
Other liabilities 40.3 42.6
Common stock and paid-
in capital 69.3 68.0
Retained earnings 153.9 146.5
Accumulated other
comprehensive loss (71.4) (60.1)
Total stockholders'
equity 151.8 154.4
----- -----
Total
liabilities
and
stockholders'
equity $648.4 $621.2
JBT CORPORATION
---------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited and in millions)
Nine Months Ended
September 30,
-------------
2014 2013
---- ----
Cash Flows From Operating
Activities:
Income from
continuing
operations $15.7 $20.3
Adjustments to reconcile
income to cash provided by
operating activities:
Depreciation and
amortization 18.7 18.8
Other 7.5 5.2
Changes in operating assets
and liabilities:
Trade accounts receivable,
net 30.4 45.9
Inventories (24.5) (37.2)
Accounts payable, trade and
other 3.1 (4.5)
Advance payments and
progress billings 8.8 18.1
Other -assets and
liabilities, net (10.2) (17.7)
----- -----
Cash provided by continuing
operating activities 49.5 48.9
---- ----
Cash required by
discontinued operating
activities (0.4) (0.5)
Cash Flows From Investing
Activities:
Acquisitions, net of cash (37.6) -
Capital expenditures (28.0) (20.8)
Other 1.3 0.7
Cash required by continuing
investing activities (64.3) (20.1)
----- -----
Cash Flows From Financing
Activities:
Net proceeds (payments) on
credit facilities 27.1 (81.6)
Dividends paid (8.1) (7.5)
Other (4.3) (2.3)
---- ----
Cash provided (required) by
financing activities 14.7 (91.4)
---- -----
Effect of foreign exchange
rate changes on cash and
cash equivalents (5.6) (0.3)
---- ----
Decrease in cash and cash
equivalents (6.1) (63.4)
Cash and cash equivalents,
beginning of period 29.4 99.0
---- ----
Cash and cash
equivalents, end
of period $23.3 $35.6
SOURCE JBT Corporation
