JOHN BEAN TECHNOLOGIES CORPORATION CHICAGO, July 27, 2015 /PRNewswire/ --
Highlights:
-- Revenue of $255 million, up 3 percent from prior-year period, or up 11
percent on a constant currency basis
-- Segment operating profit of $30.8 million, up 8 percent, or up 20
percent on a constant currency basis
-- Diluted earnings per share from continuing operations of $0.48 vs. $0.38
and adjusted diluted earnings per share from continuing operations of
$0.45 in the prior-year period
-- Inbound orders increased 15 percent year over year, or up 23 percent on
a constant currency basis
-- Raised low end of full-year 2015 earnings per share guidance to $1.70,
for a revised range of $1.70 - $1.80 compared to prior guidance of $1.65
- $1.80, while absorbing $0.05 per share of acquisition-related dilutive
impact in the back half of 2015
JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported results for the second quarter of 2015.
Revenue for the second quarter of 2015 was $254.6 million, an increase of 2.8 percent from the second quarter of 2014. On a constant currency basis, revenue increased 10.8 percent year over year. Segment operating profit increased 8.5 percent, or 19.6 percent on a constant currency basis, with margin expansion at both FoodTech and AeroTech. Corporate expense for the quarter was $7.6 million compared to $8.9 million in the year-ago period. In the second quarter of 2014, corporate expense included management succession and consulting costs of $2.1 million.
Diluted earnings per share from continuing operations was $0.48 versus $0.38 in the prior-year period. Excluding restructuring charges of $1.0 million and the aforementioned management succession and consulting costs, adjusted diluted earnings per share from continuing operations was $0.45 in the prior-year period.
The Company announced the signing of a definitive agreement to acquire the shares of Stork Food & Dairy Systems B.V. on July 17, 2015. The purchase price will be EUR47 million, before customary post-closing adjustments. Stork Food & Dairy Systems is a leading provider of integrated aseptic processing / sterilization and filling systems to the beverage and food processing industries. The transaction is expected to close in the third quarter of 2015 and be accretive to earnings in 2016.
"JBT delivered another good quarter, with healthy inbound orders and continued progress on our Next Level initiatives," said Tom Giacomini, Chairman, President and Chief Executive Officer. "In July, we announced an agreement to acquire Stork Food & Dairy Systems, an addition that significantly enhances JBT's Liquid Foods business."
Orders and Backlog
In the second quarter of 2015, inbound orders of $241.6 million increased 14.6 percent and backlog grew 6.6 percent from the prior-year period. On a constant currency basis, inbound orders increased 23.2 percent.
2015 Outlook
The Company has increased its full-year revenue growth projection to approximately 7 percent. This outlook reflects organic and acquisition growth of 5 and 7 percent, respectively, and a headwind from foreign currency translation of 5 percent. Segment operating profit margin for the full year 2015 is expected to improve 50 to 75 basis points from the 10.4 percent achieved in 2014, including transaction costs and purchase price accounting associated with the acquisition of Stork Food & Dairy Systems.
The Company has raised the low end of its 2015 earnings guidance and projects full year diluted earnings per share in the range of $1.70 - $1.80, compared to previous guidance of $1.65 - $1.80, while absorbing approximately $0.05 per share dilutive impact of the acquisition.
Second Quarter 2015 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. EDT on Tuesday, July 28, 2015 to discuss second quarter 2015 financial results. Participants may access the conference call by dialing (877) 235-3250 in the U.S. and Canada or (706) 643-5005 for international callers and using conference ID 73608959, 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 28, 2015.
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 FoodTech segment and for domestic and international air transportation customers through its AeroTech segment. JBT Corporation employs approximately 3,600 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 2014 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,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Revenue $254.6 $247.6 $479.6 $445.6
Cost of sales 181.9 179.3 343.9 325.3
----- ----- ----- -----
Gross profit 72.7 68.3 135.7 120.3
Selling, general and
administrative expense 45.1 44.9 91.0 88.5
Research and development
expense 4.3 3.7 8.0 7.2
Restructuring expense - 1.0 - 11.2
Other (income) expense, net 0.1 0.2 (0.2) 0.1
--- --- ---- ---
Operating income 23.2 18.5 36.9 13.3
Net interest expense 2.0 1.5 3.8 2.8
--- --- --- ---
Income from continuing
operations before income
taxes 21.2 17.0 33.1 10.5
Provision for income taxes 6.8 5.6 10.7 3.8
--- --- ---- ---
Income from continuing
operations 14.4 11.4 22.4 6.7
Loss from discontinued
operations, net of taxes - - - 0.1
--- --- --- ---
Net income $14.4 $11.4 $22.4 $6.6
Basic earnings per share:
Income from
continuing
operations $0.49 $0.39 $0.76 $0.23
Loss from discontinued
operations - - - -
--- --- --- ---
Net income $0.49 $0.39 $0.76 $0.23
Diluted earnings per share:
Income from
continuing
operations $0.48 $0.38 $0.75 $0.23
Loss from discontinued
operations - - - (0.01)
--- --- --- -----
Net income $0.48 $0.38 $0.75 $0.22
Weighted average shares
outstanding
Basic 29.5 29.5 29.5 29.5
==== ==== ==== ====
Diluted 29.8 29.8 29.8 29.8
==== ==== ==== ====
JBT CORPORATION
---------------
NON-GAAP FINANCIAL MEASURES
---------------------------
The results for the three and six months ended June 30, 2015 and 2014 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 Six Months Ended
June 30, June 30,
-------- --------
(In millions) 2015 2014 2015 2014
---- ---- ---- ----
Income from
continuing
operations as
reported $14.4 $11.4 $22.4 $6.7
Non-GAAP adjustments:
Restructuring
expense - 1.0 - 11.2
Management
succession costs - 1.1 - 2.6
Strategy and
pricing consulting - 1.0 - 1.9
Impact on tax
provision from
Non-GAAP
adjustments - (1.1) - (4.8)
--- ---- --- ----
Adjusted income
from continuing
operations $14.4 $13.4 $22.4 $17.6
===== ===== ===== =====
(In millions, except EPS)
Income from
continuing
operations as
reported 14.4 11.4 22.4 6.7
---- ---- ---- ---
Total shares and
dilutive
securities 29.8 29.8 29.8 29.8
---- ---- ---- ----
Diluted earnings
per share from
continuing
operations $0.48 $0.38 $0.75 $0.23
===== ===== ===== =====
Adjusted income
from continuing
operations 14.4 13.4 22.4 17.6
---- ---- ---- ----
Total shares and
dilutive
securities 29.8 29.8 29.8 29.8
---- ---- ---- ----
Adjusted diluted
earnings per share
from continuing
operations $0.48 $0.45 $0.75 $0.59
===== ===== ===== =====
The above table contains non-GAAP
financial measures, including
adjusted income from continuing
operations and adjusted diluted
earnings per share from continuing
operations. Adjusted income from
continuing operations and adjusted
diluted earnings per share from
continuing operations 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 Company
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
---------------------------
The tables below show a calculation of EBITDA and adjusted EBITDA by segment and consolidated for JBT.
For the three months ended June 30, 2015:
(In millions) Operating income Depreciation and Amortization EBITDA Adjustments Adjusted EBITDA
---------------- ----------------------------- ------ ----------- ---------------
JBT FoodTech $22.5 $5.9 $28.4 $ - $28.4
JBT AeroTech 8.3 0.5 8.8 - 8.8
Corporate expense (7.6) 0.4 (7.2) - (7.2)
Restructuring expense - - - - -
---
Total $23.2 $6.8 $30.0 $ - $30.0
===== ==== ===== ================== =====
For the three months ended June 30, 2014:
(In millions) Operating income Depreciation and Amortization EBITDA Adjustments Adjusted EBITDA
---------------- ----------------------------- ------ ----------- ---------------
JBT FoodTech $23.1 $5.2 $28.3 $ - $28.3
JBT AeroTech 5.3 0.4 5.7 - 5.7
Corporate expense (8.9) 0.4 (8.5) 2.1 (6.4)
Restructuring expense (1.0) - (1.0) 1.0 -
Total $18.5 $6.0 $24.5 $3.1 $27.6
===== ==== ===== ==== =====
For the six months ended June 30, 2015:
(In millions) Operating income Depreciation and Amortization EBITDA Adjustments Adjusted EBITDA
---------------- ----------------------------- ------ ----------- ---------------
JBT FoodTech $35.6 $11.8 $47.4 $ - $47.4
JBT AeroTech 16.7 1.0 17.7 - 17.7
Corporate expense (15.4) 0.8 (14.6) - (14.6)
Restructuring expense - - - - -
Total $36.9 $13.6 $50.5 $ - $50.5
===== ===== ===== ================== =====
For the six months ended June 30, 2014:
(In millions) Operating income Depreciation and Amortization EBITDA Adjustments Adjusted EBITDA
---------------- ----------------------------- ------ ----------- ---------------
JBT FoodTech $34.9 $10.1 $45.0 $ - $45.0
JBT AeroTech 7.6 0.9 8.5 - 8.5
Corporate expense (18.0) 0.6 (17.4) 4.5 (12.9)
Restructuring expense (11.2) - (11.2) 11.2 -
Total $13.3 $11.6 $24.9 $15.7 $40.6
===== ===== ===== ===== =====
The tables above provide our
operating income (loss) as
adjusted by depreciation and
amortization expense booked
during the period to arrive at
a segmental and consolidated
EBITDA value. Further, we add
back to EBITDA significant
expenses that are not
indicative of our ongoing
operations to calculate an
adjusted EBITDA for the two
periods reported. Given the
Company's Next Level focus on
growth through strategic
acquisitions, management
considers adjusted EBITDA to be
an important non-GAAP 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.
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,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Revenue
-------
JBT FoodTech $163.9 $173.5 $303.1 $309.0
JBT AeroTech 90.8 74.1 177.0 136.8
Intercompany eliminations (0.1) - (0.5) (0.2)
---- --- ---- ----
Total revenue $254.6 $247.6 $479.6 $445.6
Income before income taxes
--------------------------
Segment operating profit
------------------------
JBT FoodTech $22.5 $23.1 $35.6 $34.9
JBT AeroTech 8.3 5.3 16.7 7.6
--- --- ---- ---
Total segment operating
profit 30.8 28.4 52.3 42.5
Corporate expense (1) (7.6) (8.9) (15.4) (18.0)
Restructuring expense - (1.0) - (11.2)
--- ---- --- -----
Operating income $23.2 $18.5 $36.9 $13.3
Other business segment
information
----------------------
Adjusted EBITDA
---------------
JBT FoodTech $28.4 $28.3 $47.4 $45.0
JBT AeroTech 8.8 5.7 17.7 8.5
Corporate (7.2) (6.4) (14.6) (12.9)
Total Adjusted
EBITDA $30.0 $27.6 $50.5 $40.6
Inbound Orders
--------------
JBT FoodTech $146.0 $139.9 $352.1 $300.5
JBT AeroTech 95.6 71.0 195.9 171.5
Intercompany eliminations - - (0.5) (0.2)
--- --- ---- ----
Total inbound
orders $241.6 $210.9 $547.5 $471.8
June 30,
--------
2015 2014
---- ----
Order Backlog
-------------
JBT FoodTech $242.6 $203.3
JBT AeroTech 184.9 197.7
----- -----
Total order
backlog $427.5 $401.0
(1) Corporate expense includes
corporate staff-related expense,
stock-based compensation, pension
and other postretirement benefit
expenses not related to service,
LIFO adjustments, certain foreign
exchange gains and losses, and the
impact of unusual or strategic
transactions not representative of
segment operations.
JBT CORPORATION
---------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited and in millions)
June 30, December 31,
2015 2014
---- ----
Cash and cash
equivalents $19.9 $33.3
Trade receivables, net 164.9 176.2
Inventories 121.7 111.8
Other current assets 63.8 66.6
---- ----
Total current assets 370.3 387.9
Property, plant and
equipment, net 150.7 147.6
Other assets 150.6 162.3
Total assets $671.6 $697.8
Short term debt
and current
portion of long-
term debt $3.2 $4.2
Accounts payable, trade and
other 95.6 89.5
Advance payments and
progress billings 100.2 86.2
Other current liabilities 88.6 106.5
---- -----
Total current liabilities 287.6 286.4
Long-term debt, less
current portion 154.3 173.8
Accrued pension and other
postretirement benefits,
less current portion 81.9 93.1
Other liabilities 23.5 25.3
Common stock and paid-in
capital 66.5 69.9
Retained earnings 183.3 166.4
Accumulated other
comprehensive loss (125.5) (117.1)
Total stockholders' equity 124.3 119.2
----- -----
Total liabilities
and
stockholders'
equity $671.6 $697.8
JBT CORPORATION
---------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited and in millions)
Six Months Ended
June 30,
--------
2015 2014
---- ----
Cash Flows From Operating
Activities:
Income from
continuing
operations $22.4 $6.7
Adjustments to reconcile
income to cash provided
by operating activities:
Depreciation and
amortization 13.6 11.6
Other 5.2 6.9
Changes in operating
assets and liabilities:
Trade accounts
receivable, net 8.9 28.4
Inventories (13.6) (24.0)
Accounts payable, trade
and other 8.9 (0.7)
Advance payments and
progress billings 17.0 (3.9)
Other -assets and
liabilities, net (22.6) (4.7)
----- ----
Cash provided by
continuing operating
activities 39.8 20.3
---- ----
Cash required by
discontinued operating
activities (0.1) (0.3)
---- ----
Cash Flows Required by
Investing Activities:
Acquisitions, net of cash
acquired - (1.7)
Capital expenditures (19.4) (17.1)
Other 2.8 1.1
Cash required by
investing activities (16.6) (17.7)
----- -----
Cash Flows Provided
(Required) by Financing
Activities:
Net proceeds (payments)
on credit facilities (19.6) 40.6
Dividends paid (5.6) (5.5)
Purchase of stock held in
treasury (4.1) -
Other (2.6) (1.7)
---- ----
Cash provided (required)
by financing activities (31.9) 33.4
----- ----
Effect of foreign
exchange rate changes on
cash and cash
equivalents (4.6) (1.4)
---- ----
Increase (decrease) in
cash and cash
equivalents (13.4) 34.3
Cash and cash
equivalents, beginning
of period 33.3 29.4
---- ----
Cash and cash
equivalents,
end of period $19.9 $63.7
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SOURCE JBT Corporation
