John Bean Technologies : JBT Reports Second Quarter 2017 Earnings

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 ,

2017

2016

2017

2016

Income from continuing operations as reported

$18.3

$18.8

$35.9

$24.0

Non-GAAP adjustments:

Restructuring expense

0.6

1.9

1.0

9.1

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

(0.2)

(0.6)

(0.3)

(2.9)

Adjusted income from continuing operations

$18.7

$20.1

$36.6

$30.2

Income from continuing operations as reported

$18.3

$18.8

$35.9

$24.0

Total shares and dilutive securities

32.3

29.8

31.4

29.8

Diluted earnings per share from continuing operations

$0.57

$0.63

$1.14

$0.80

Adjusted income from continuing operations

$18.7

$20.1

$36.6

$30.2

Total shares and dilutive securities

32.3

29.8

31.4

29.8

Adjusted diluted earnings per share from continuing operations

$0.58

$0.67

$1.17

$1.01

(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

Six Months Ended

June 30 ,

June 30 ,

2017

2016

2017

2016

Net income

$17.9

$18.8

$35.3

$23.9

Loss from discontinued operations, net of taxes

(0.4)

-

(0.6)

(0.1)

Income from continuing operations as reported

18.3

18.8

35.9

24.0

Provision (benefit) for income taxes

8.1

8.9

7.6

11.4

Net interest expense

3.3

2.2

6.7

4.2

Depreciation and amortization

12.9

9.5

25.1

18.1

EBITDA

42.6

39.4

75.3

57.7

Restructuring expense

0.6

1.9

1.0

9.1

Adjusted EBITDA

$43.2

$41.3

$76.3

$66.8

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

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Revenue

JBT FoodTech

$278.9

$228.8

$520.5

$406.3

JBT AeroTech

107.1

100.5

210.0

190.6

Intercompany eliminations

0.1

(0.5)

0.1

(1.0)

Total revenue

$386.1

$328.8

$730.6

$595.9

Income before income taxes

Segment operating profit (1)

JBT FoodTech

$31.1

$31.0

$51.6

$49.8

JBT AeroTech

10.8

11.4

20.4

19.9

Total segment operating profit

41.9

42.4

72.0

69.7

Corporate expense(1)

(11.6)

(10.6)

(20.8)

(21.0)

Restructuring expense

(0.6)

(1.9)

(1.0)

(9.1)

Operating income

$29.7

$29.9

$50.2

$39.6

Other business segment information

Inbound Orders

JBT FoodTech

$283.0

$201.0

$600.9

$423.07

JBT AeroTech

135.1

106.9

221.4

228.6

Intercompany eliminations

-

(0.5)

0.1

(0.9)

Total inbound orders

$418.1

$307.4

$822.4

$651.4

As of June 30,

2017

2016

Order Backlog

JBT FoodTech

$427.3

$328.9

JBT AeroTech

242.7

250.7

Total order backlog

$670.0

$579.6

(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)

June 30,

Dec. 31,

2017

2016

Cash and cash equivalents

$26.3

$33.2

Trade receivables, net

281.8

260.5

Inventories

198.3

139.6

Other current assets

54.0

51.7

Total current assets

560.4

485.0

Property, plant and equipment, net

220.7

210.2

Other assets

538.5

492.2

Total assets

$1,319.6

$1,187.4

Short-term debt and current portion of long-term debt

$7.6

$7.1

Accounts payable, trade and other

139.4

135.7

Advance and progress payments

129.6

110.5

Other current liabilities

127.1

139.7

Total current liabilities

403.7

393.0

Long-term debt, less current portion

391.9

491.6

Accrued pension and other postretirement benefits, less current portion

85.1

86.1

Other liabilities

36.2

36.8

Common stock and additional paid-in capital

249.8

70.3

Retained earnings

295.0

266.6

Accumulated other comprehensive loss

(142.1)

(157.0)

Total stockholders' equity

402.7

179.9

Total liabilities and stockholders' equity

$1,319.6

$1,187.4

JBT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in millions)

Six Months Ended

June 30 ,

2017

2016

Cash flows from operating activities:

Income from continuing operations

$35.9

$24.0

Adjustments to reconcile income to cash provided by operating activities:

Depreciation and amortization

25.1

18.1

Other

5.1

9.6

Changes in operating assets and liabilities:

Trade accounts receivable, net

(13.2)

(18.0)

Inventories

(39.9)

(44.4)

Accounts payable, trade and other

(4.0)

3.0

Advance and progress payments

10.6

21.6

Other - assets and liabilities, net

(17.6)

(13.2)

Cash provided by continuing operating activities

2.0

0.7

Cash required by discontinued operating activities

(0.6)

(0.1)

Cash provided by operating activities

1.4

0.6

Cash flows required by investing activities:

Acquisitions, net of cash acquired

(62.1)

(3.2)

Capital expenditures

(17.5)

(20.9)

Other

1.1

1.0

Cash required by investing activities

(78.5)

(23.1)

Cash flows provided by financing activities:

Net proceeds (payments) on credit facilities

(99.2)

30.0

Dividends

(6.4)

(6.0)

Purchase of treasury stock

-

(4.4)

Proceeds form stock issuance, net of stock issuance costs

184.1

-

Other

(9.5)

(1.1)

Cash provided by financing activities

69.0

18.5

Effect of foreign exchange rate changes on cash and cash equivalents

1.2

1.9

Decrease in cash and cash equivalents

(6.9)

(2.1)

Cash and cash equivalents, beginning of period

33.2

37.2

Cash and cash equivalents, end of period

$26.3

$35.1