JBT Corporation Reports Third Quarter 2019 Results
CHICAGO, Oct. 28, 2019 /PRNewswire/ -- 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 2019. Comparisons in this news release are to the comparable period of the prior year, unless otherwise noted.
"We continued to capture the benefits of our initiatives that make JBT a more efficient operation, with better than expected margin expansion in the third quarter of 2019," said Tom Giacomini, Chairman, President, and Chief Executive Officer. "We also enjoyed continued strength at AeroTech and across our aftermarket business. However, we have not seen improvement in orders at FoodTech, with a continued lag converting commercial activity to customer commitments due to business uncertainty."
Third quarter 2019 revenue of $489.4 million increased 2 percent, as 10 percent growth from acquisitions offset a 3 percent decline organically, a 2 percent headwind from foreign exchange translation, and a 4 percent decline attributable to the absence of the ASC 606 transition benefit recorded in the third quarter of 2018.
Operating income was $48.6 million in the third quarter of 2019. Net income for the third quarter of 2019 was $33.5 million. Adjusted EBITDA expanded 15 percent to $75.8 million, with a 190 basis point margin improvement to 15.5 percent.
Margins benefited from continued operational improvements resulting from the restructuring program and implementation of the JBT operating system as well as a higher percentage of revenue from aftermarket business. FoodTech operating profit margins in the third quarter of 2019 were roughly level with the year-ago period, while absorbing higher acquisition-related costs. FoodTech adjusted EBITDA margins expanded 240 basis points to 19.7 percent. AeroTech operating profit margin increased 250 basis points while AeroTech adjusted EBITDA margins expanded 280 basis points to 15.2 percent.
Diluted earnings per share from continuing operations was $1.04 for the third quarter of 2019 compared with $0.82 in the third quarter of 2018. Adjusted earnings per share was $1.28 compared with $1.12 in the year-ago period.
Orders and Backlog
Third quarter 2019 orders increased 3.5 percent year over year on flat orders at FoodTech and a 9 percent increase at AeroTech. Backlog declined 8 percent at FoodTech and increased 8 percent at AeroTech.
Restructuring Program
"We continued to capture benefits from our company-wide restructuring program as reflected in incremental savings of $7 million in the third quarter," said Brian Deck, Executive Vice President and Chief Financial Officer.
Outlook
"We have adjusted full-year 2019 guidance to reflect better than expected margin gains, offset by softer FoodTech revenue," added Deck. For 2019, JBT expects revenue growth of 2 - 3 percent organically, with about 1 percent at FoodTech and 5 - 6 percent at AeroTech, and 7 percent from acquisitions. Foreign exchange is expected to be a 2 - 3 percent revenue headwind. Reported revenue is expected to be flat to up 1 percent year over year, considering 2018 included revenue of $127 million associated with the transition to ASC 606.
The Company changed full-year 2019 GAAP diluted earnings per share from continuing operations guidance to $4.10 - $4.20, including a projected $0.10 per share discrete tax benefit in the fourth quarter. This tax benefit does not impact adjusted earnings guidance, which has been narrowed to $4.80 - $4.90.
Third Quarter 2019 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET on Tuesday, October 29, 2019 to discuss third quarter financial results. Participants may access the conference call by dialing (833) 238-7952 in the U.S. and Canada or (647) 689-4200 for international callers and using conference ID 4516347 or through the link on our website at https://www.jbtc.com/investors. 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 October 29, 2019.
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 6,400 people worldwide and operates sales, service, manufacturing and sourcing operations in more than 25 countries. For more information, please visit www.jbtc.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.
We provide non-GAAP financial measures in order to increase transparency in our operating results and trends. These non-GAAP measures eliminate certain costs or benefits from, or changes the calculation of, a measure as calculated under U.S. GAAP. By eliminating these items, we believe we provide a more meaningful comparison of our ongoing operating results, consistent with how management evaluates performance. Management uses these non-GAAP measures in financial and operational evaluation, planning and forecasting.
These calculations may differ from similarly-titled measures used by other companies. The non-GAAP financial measures disclosed are not intended to be used as a substitute for, nor should they be considered in isolation of, financial measures prepared in accordance with U.S. GAAP.
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,
2019 2018 2019 2018
---
Revenue $
489.4 $
481.9 $
1,400.2 $
1,382.4
Cost of sales 341.8 346.8 970.0 1,003.4
Gross profit 147.6 135.1 430.2 379.0
Gross profit % 30.2 28.0 30.7 27.4
%
%
%
%
Selling, general and administrative expense 97.7 86.9 293.1 261.5
Restructuring expense 1.3 11.6 11.5 32.8
Operating income 48.6 36.6 125.6 84.7
Operating income % 9.9 7.6 9.0 6.1
%
%
%
%
Pension expense, other than service cost 0.5 1.5 0.6
Net interest expense 5.9 3.4 13.4 10.5
Income from continuing operations before income taxes 42.2 33.2 110.7 73.6
Provision for income taxes 8.7 6.8 23.5 12.1
Income from continuing operations 33.5 26.4 87.2 61.5
Loss from discontinued operations, net of taxes - 0.3 0.3
Net income $
33.5 $
26.4 $
86.9 $
61.2
Basic earnings per share:
Income from continuing operations $
1.05 $
0.83 $
2.74 $
1.93
Loss from discontinued operations - 0.01 0.01
Net income $
1.05 $
0.83 $
2.73 $
1.92
Diluted earnings per share:
Income from continuing operations $
1.04 $
0.82 $
2.72 $
1.91
Loss from discontinued operations - 0.01 0.01
Net income $
1.04 $
0.82 $
2.71 $
1.90
Weighted average shares outstanding
Basic 31.9 31.9 31.9 31.9
Diluted 32.1 32.1 32.0 32.2
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,
2019 2018 2019 2018
---
Income from continuing operations as reported $
33.5 $
26.4 $
87.2 $
61.5
Non-GAAP adjustments:
Restructuring expense 1.3 11.6 11.5 32.8
M&A related cost(1) 8.7 2.2 20.2 4.0
Impact on tax provision from Non-GAAP adjustments(2) (2.5) (3.5) (7.8) (9.5)
Impact on tax provision from repatriation - 0.6 0.6
Impact on tax provision from rate change on deferred taxes - (1.5) (1.5)
Adjusted income from continuing operations $
41.0 $
35.8 $
111.1 $
87.9
Income from continuing operations as reported $
33.5 $
26.4 $
87.2 $
61.5
Total shares and dilutive securities 32.1 32.1 32.0 32.2
Diluted earnings per share from continuing operations $
1.04 $
0.82 $
2.72 $
1.91
Adjusted income from continuing operations $
41.0 $
35.8 $
111.1 $
87.9
Total shares and dilutive securities 32.1 32.1 32.0 32.2
Adjusted diluted earnings per share from continuing operations $
1.28 $
1.12 $
3.47 $
2.73
(1) Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs,
specifically amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance
and operating trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded
from the prior year results to conform to the current year presentation.
(2) Impact on tax provision was calculated using the Company's annual effective tax rate of 24.7% and 25.7% for September 30, 2019
and 2018, respectively.
The above table reports adjusted income from continuing operations and adjusted diluted earnings per share from continuing operations,
which are non-GAAP financial measures. We use these measures internally to make operating decisions and for the planning and forecasting
of future periods, and therefore provide this information to investors because we believe it allows more meaningful period-to-period comparisons
of our ongoing operating results, without the fluctuations in the amount of certain costs that do not reflect our underlying operating results.
JBT CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Unaudited and in millions)
Three Months Ended Nine Months Ended As of October 28,
September 30, September 30, 2019
2019 2018 2019 2018 Outlook FY 2019
Net income $
33.5 $
26.4 $
86.9 $
61.2
$131.0 to $136.0
Loss from discontinued operations, net of taxes 0.3 0.3
~1.0
Income from continuing operations as reported 33.5 26.4 87.2 61.5
$127.0 to $132.0
Income tax provision 8.7 6.8 23.5 12.1
39.0 to 40.0
Interest expense, net 5.9 3.4 13.4 10.5
23.0 to 24.0
Depreciation and amortization 17.2 15.3 47.5 43.1
69.0 to 70.0
EBITDA 65.3 51.9 171.6 127.2
$254.0 to $261.0
Restructuring expense 1.3 11.6 11.5 32.8
12.0 to 15.0
Pension expense, other than service cost 0.5 1.5 0.6
~1.0
M&A related cost 8.7 2.2 20.2 4.0
~22.0
Adjusted EBITDA $
75.8 $
65.7 $
204.8 $
164.6
$290.0 to $300.0
Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance and operating
trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from the prior year
results to conform to the current year presentation.
The above table reports EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Given the Company's focus on
growth through acquisitions, management believes EBITDA facilitates an evaluation of 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.
JBT CORPORATION
BUSINESS SEGMENT DATA
(Unaudited and in millions)
Three Months Ended
Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
---
Revenue
---
JBT FoodTech $
334.3 $
332.5 $
972.2 $
997.7
JBT AeroTech 155.0 149.5 427.8 384.6
Other revenue and intercompany eliminations $
0.1 $
(0.1) $
0.2 $
0.1
Total revenue $
489.4 $
481.9 $
1,400.2 $
1,382.4
Income before income taxes
---
Segment operating profit
(1)
---
JBT FoodTech $
42.5 $
41.9 $
132.5 $
110.8
JBT FoodTech segment operating profit % 12.7 12.6 13.6 11.1
%
%
%
%
JBT AeroTech 22.2 17.6 50.2 40.2
JBT AeroTech segment operating profit % 14.3 11.8 11.7 10.5
%
%
%
%
---
Total segment operating profit(2) 64.7 59.5 182.7 151.0
Total segment operating profit % 13.2 12.3 13.0 10.9
%
%
%
%
Corporate expense(1) 14.8 11.3 45.6 33.5
Restructuring expense 1.3 11.6 11.5 32.8
Operating income $
48.6 $
36.6 $
125.6 $
84.7
Operating income % 9.9 7.6 9.0 6.1
%
%
%
%
Other business segment information
---
Three Months Ended
Nine Months Ended
September 30, September 30,
Inbound Orders 2019 2018 2019 2018
--- ---
JBT FoodTech $
283.3 $
282.3 $
900.1 $
952.9
JBT AeroTech 180.3 165.7 492.3 467.3
Other revenue and intercompany eliminations 0.1 0.1 0.2 0.2
Total inbound orders $
463.7 $
448.1 $
1,392.6 $
1,420.4
As of September 30,
2019 2018
Order Backlog
---
JBT FoodTech $
377.3 $
408.2
JBT AeroTech 376.2 346.9
Total order backlog $
753.5 $
755.1
(1) Segment operating profit is defined as total segment revenue less segment operating expenses. Corporate expense, restructuring expense, interest income
and expense, pension expense other than service, and income taxes are not allocated to the segments. Corporate expense generally includes corporate staff-
related expense, stock-based compensation, LIFO adjustments, certain foreign currency related gains and losses, and the impact of unusual or strategic events
not representative of segment operations.
(2) Total segment operating profit, as presented elsewhere in this release, is a non-GAAP measure. The table above includes a reconciliation of total segment
operating profit to operating income. We believe that this measure provides to investors a more comprehensive understanding of the information used by
management in evaluating the performance of its segment operations. It is not intended to nor shall be considered in isolation or as a substitute for financial
measures prepared in accordance with U.S. GAAP.
JBT CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT
(Unaudited and in millions)
Three Months Ended September 30, 2019
(In millions) JBT FoodTech JBT AeroTech Corporate Consolidated
(Unallocated)
---
Operating profit $
42.5 $
22.2 $
(16.1) $
48.6
Restructuring expense - 1.3 1.3
M&A related cost(1) 7.9 0.8 8.7
Adjusted operating profit 50.4 22.2 (14.0) 58.6
Depreciation and amortization 15.4 1.3 0.5 17.2
Adjusted EBITDA $
65.8 $
23.5 $
(13.5) $
75.8
Revenue $
334.3 $
155.0 $
0.1 $
489.4
Operating profit % 12.7 14.3
% % 9.9
%
Adjusted operating profit % 15.1 14.3
% % 12.0
%
Adjusted EBITDA % 19.7 15.2
% % 15.5
%
Nine Months Ended September 30, 2019
(In millions) JBT FoodTech JBT AeroTech Corporate Consolidated
(Unallocated)
---
Operating profit $
132.5 $
50.2 $
(57.1) $
125.6
Restructuring expense - 11.5 11.5
M&A related cost (1) 13.2 0.9 6.1 20.2
Adjusted operating profit 145.7 51.1 (39.5) 157.3
Depreciation and amortization 42.0 3.5 2.0 47.5
Adjusted EBITDA $
187.7 $
54.6 $
(37.5) $
204.8
Revenue $
972.2 $
427.8 $
0.2 $
1,400.2
Operating profit % 13.6 11.7
% % 9.0
%
Adjusted operating profit % 15.0 11.9
% % 11.2
%
Adjusted EBITDA % 19.3 12.8
% % 14.6
%
Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance and operating trends
after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from the prior year results to
conform to the current year presentation.
The above table reports EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Given the Company's focus on growth
through acquisitions, management believes EBITDA facilitates an evaluation of 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.
JBT CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT
(Unaudited and in millions)
Three Months Ended September 30, 2018
(In millions) JBT FoodTech JBT AeroTech Corporate Consolidated
(Unallocated)
---
Operating profit $
41.9 $
17.6 $
(22.9) $
36.6
Restructuring expense - 11.6 11.6
M&A related cost (1) 2.0 0.2 2.2
Adjusted operating profit 43.9 17.8 (11.3) 50.4
Depreciation and amortization 13.6 0.7 1.0 15.3
Adjusted EBITDA $
57.5 $
18.5 $
(10.3) $
65.7
Revenue $
332.5 $
149.5 $
(0.1) $
481.9
Operating profit % 12.6 11.8
% % 7.6
%
Adjusted operating profit % 13.2 11.9
% % 10.5
%
Adjusted EBITDA % 17.3 12.4
% % 13.6
%
Nine Months Ended September 30, 2018
(In millions) JBT FoodTech JBT AeroTech Corporate Consolidated
(Unallocated)
---
Operating profit $
110.8 $
40.2 $
(66.3) $
84.7
Restructuring expense - 32.8 32.8
M&A related cost (1) 3.8 0.2 4.0
Adjusted operating profit 114.6 40.4 (33.5) 121.5
Depreciation and amortization 38.8 2.2 2.1 43.1
Adjusted EBITDA $
153.4 $
42.6 $
(31.4) $
164.6
Revenue $
997.7 $
384.6 $
0.1 $
1,382.4
Operating profit % 11.1 10.5
% % 6.1
%
Adjusted operating profit % 11.5 10.5
% % 8.8
%
Adjusted EBITDA % 15.4 11.1
% % 11.9
%
Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance and operating
trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from the prior year
results to conform to the current year presentation.
The above table reports EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Given the Company's focus on growth
through acquisitions, management believes EBITDA facilitates an evaluation of 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.
JBT CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT FOR FISCAL YEAR 2018
(Unaudited and in millions)
Three Months Ended December 31, 2018
(In millions) JBT FoodTech JBT AeroTech Corporate Consolidated
(Unallocated)
---
Operating profit $
58.7 $
23.9 $
(23.5) $
59.1
Restructuring expense - 14.2 14.2
M&A related cost 0.4 0.4 0.8
Adjusted operating profit 59.1 24.3 (9.3) 74.1
Depreciation and amortization 13.0 0.6 1.0 14.6
Adjusted EBITDA $
72.1 $
24.9 $
(8.3) $
88.7
Revenue $
363.7 $
173.5 $
0.1 $
537.3
Operating profit % 16.1
% 13.8
% 11.0
%
Adjusted operating profit % 16.2
% 14.0
% 13.8
%
Adjusted EBITDA % 19.8
% 14.4
% 16.5
%
Twelve
Months Ended December 31, 2018
(In millions) JBT FoodTech JBT AeroTech Corporate Consolidated
(Unallocated)
---
Operating profit $
169.5 $
64.1 $
(89.8) $
143.8
Restructuring expense - 47.0 47.0
M&A related cost 4.2 0.6 4.8
Adjusted operating profit 173.7 64.7 (42.8) 195.6
Depreciation and amortization 51.7 2.9 3.1 57.7
Adjusted EBITDA $
225.4 $
67.6 $
(39.7) $
253.3
Revenue $
1,361.4 $
558.1 $
0.2 $
1,919.7
Operating profit % 12.5
% 11.5
% 7.5
%
Adjusted operating profit % 12.8
% 11.6
% 10.2
%
Adjusted EBITDA % 16.6
% 12.1
% 13.2
%
Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically
amortization of inventory step up, integration costs, and transaction expenses. This historical information is being provided for
comparative purposes. We are providing this historical information for comparison purposes. We evaluate operational performance
and operating trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from
the prior year results to conform to the current year presentation.
The above table reports EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Given the Company's focus on growth
through acquisitions, management believes EBITDA facilitates an evaluation of 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.
JBT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in millions)
September 30, December 31,
2019 2018
---
Cash and cash equivalents $
49.1 $
43.0
Trade receivables, net 354.7 323.7
Inventories 264.0 206.1
Other current assets 57.3 45.7
Total current assets 725.1 618.5
Property, plant and equipment, net 264.5 239.7
Other assets 929.2 584.3
Total assets $
1,918.8 $
1,442.5
Short-term debt and current portion of long-term debt $
1.6 $
0.5
Accounts payable, trade and other 186.8 191.2
Advance and progress payments 116.5 145.8
Other current liabilities 167.9 147.8
Total current liabilities 472.8 485.3
Long-term debt, less current portion 768.7 387.1
Accrued pension and other postretirement benefits, less current portion 61.2 72.5
Other liabilities 92.4 40.7
Common stock and additional paid-in capital 227.6 226.9
Retained earnings 493.9 416.5
Accumulated other comprehensive loss (197.8) (186.5)
Total stockholders' equity 523.7 456.9
Total liabilities and stockholders' equity $
1,918.8 $
1,442.5
JBT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
Nine Months Ended September 30,
2019 2018
---
Cash flows from operating activities:
Income from continuing operations $
87.2 $
61.5
Adjustments to reconcile income to cash provided by operating activities:
Depreciation and amortization 47.5 43.1
Other 12.1 (16.0)
Changes in operating assets and liabilities:
Trade accounts receivable, net (16.2) (18.5)
Inventories (18.5) (49.2)
Accounts payable, trade and other (12.8) 16.4
Advance and progress payments (37.1) 17.3
Other - assets and liabilities, net (27.1) (28.0)
Cash provided by continuing operating activities 35.1 26.6
Cash required by discontinued operating activities (0.2) (0.6)
Cash provided by operating activities 34.9 26.0
Cash flows required by investing activities:
Acquisitions, net of cash acquired (368.4) (57.6)
Capital expenditures (29.2) (28.5)
Other 1.3 1.8
Cash required by investing activities (396.3) (84.3)
Cash flows provided by financing activities:
Net proceeds on credit facilities 388.1 107.4
Dividends (9.5) (9.8)
Other (10.1) (32.4)
Cash provided by financing activities 368.5 65.2
Effect of foreign exchange rate changes on cash and cash equivalents (1.0) (2.4)
(Decrease) increase in cash and cash equivalents 6.1 4.5
Cash and cash equivalents, beginning of period 43.0 34.0
Cash and cash equivalents, end of period $
49.1 $
38.5
JBT CORPORATION
NON-GAAP FINANCIAL MEASURES
FREE CASH FLOW
(Unaudited and in millions)
Nine Months Ended
September 30,
2019 2018
---
Cash provided
(required) by
continuing
operating
activities $
35.1 $
26.6
Less: capital
expenditures 29.2 28.5
Plus: proceeds
from sale of
fixed assets 1.3 1.8
Plus: pension
contributions 7.2 18.3
Free cash flow
(FCF) $
14.4 $
18.2
The above table reports Free cash flow, which is a non-GAAP financial measure. We use Free
cash flow internally as a key indicator of our liquidity and ability to service debt,
invest in business combinations, and return money to shareholders and believe this
information is useful to investors because it provides an understanding of the cash
available to fund these initiatives. For Free cash flow purposes we consider contributions
to pension plans to more comparable to payment of debt, and therefore exclude these
contributions from the calculation of Free cash flow.
JBT CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF DILUTED EARNINGS PER SHARE GUIDANCE
TO ADJUSTED DILUTED
EARNINGS PER SHARE GUIDANCE
(Unaudited and in cents)
Guidance
Full Year 2019
Diluted earnings per share
from continuing operations
$4.10 - $4.20
Non-GAAP adjustments:
Restructuring expense (1) 0.40
M&A related costs(2) 0.66
Impact on tax provision
from Non-GAAP
adjustments(3) (0.27)
Impact on tax provision
from repatriation (4) (0.10)
Adjusted diluted earnings
per share from continuing
operations
$4.80 - $4.90
(1) Restructuring expense is estimated to be
approximately $12 - 15 million for full year 2019.
The mid-point amount has been divided by our estimate
of 32.1 million total shares and dilutive securities
to derive earnings per share.
(2) M&A related costs are estimated to be approximately
$22 million for full year 2019. The mid-point amount
has been divided by our estimate of 32.1 million total
shares and dilutive securities to derive earnings per
share. Beginning in the first quarter of 2019, we
changed our presentation of non-GAAP measures to
exclude M&A related costs, specifically amortization
of inventory step up, integration costs, and
transaction expenses. We evaluate operational
performance and operating trends after excluding
certain expenses incurred to fulfill our acquisition
(3) Impact on tax provision was calculated using the
Company's effective tax rate of approximately 25%.
(4) We expect to include a discrete tax benefit related
to repatriation of previously taxed income.
JBT CORPORATION
ADJUSTMENTS DUE TO ASC 606 BY SEGMENT FOR FISCAL YEAR 2018
(Unaudited and in millions)
As reported
Year-to-Date
Q1 Q2 Q3 Q4 December 31, 2018
---
Revenue
---
JBT FoodTech $
303.6 $
361.6 $
332.5 $
363.7 $
1,361.4
JBT AeroTech 105.6 129.5 149.5 173.5 558.1
Other revenue and intercompany eliminations - 0.2 (0.1) 0.1 0.2
Total revenue $
409.2 $
491.3 $
481.9 $
537.3 $
1,919.7
Segment operating profit
---
JBT FoodTech $
21.5 $
47.4 $
41.9 $
58.7 $
169.5
JBT AeroTech 7.9 14.7 17.6 23.9 64.1
Total segment operating profit $
29.4 $
62.1 $
59.5 $
82.6 $
233.6
Adjustments due to ASC 606
Year-to-Date
Q1 Q2 Q3 Q4 December 31, 2018
---
Revenue
---
JBT FoodTech $
(51.6) $
(28.0) $
(18.2) $
(15.8) $
(113.6)
JBT AeroTech 1.1 (3.6) 0.4 (11.4) (13.5)
Other revenue and intercompany eliminations -
Total revenue $
(50.5) $
(31.6) $
(17.8) $
(27.2) $
(127.1)
Segment operating profit
---
JBT FoodTech $
(13.1) $
(6.0) $
(3.7) $
(1.2) $
(24.0)
JBT AeroTech 0.1 (1.4) (0.4) (2.0) (3.7)
Total segment operating profit $
(13.0) $
(7.4) $
(4.1) $
(3.2) $
(27.7)
Amounts without adoption
Year-to-Date
Q1 Q2 Q3 Q4 December 31, 2018
---
Revenue
---
JBT FoodTech $
252.0 $
333.6 $
314.3 $
347.9 $
1,247.8
JBT AeroTech 106.7 125.9 149.9 162.1 544.6
Other revenue and intercompany eliminations - 0.2 (0.1) 0.1 0.2
Total revenue $
358.7 $
459.7 $
464.1 $
510.1 $
1,792.6
Segment operating profit
---
JBT FoodTech $
8.4 $
41.4 $
38.2 $
57.5 $
145.5
JBT AeroTech 8.0 13.3 17.2 21.9 60.4
Total segment operating profit $
16.4 $
54.7 $
55.4 $
79.4 $
205.9
Investors & Media: Megan Rattigan +1 312 861 6048
View original content:http://www.prnewswire.com/news-releases/jbt-corporation-reports-third-quarter-2019-results-300946630.html
SOURCE JBT Corporation
