JBT CORPORATION | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited and in millions, except per share data) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenue | $ | 475.5 | $ | 411.5 | $ | 893.3 | $ | 869.2 |
Cost of sales | 325.6 | 281.3 | 610.2 | 596.0 | ||||
Gross profit | 149.9 | 130.2 | 283.1 | 273.2 | ||||
Gross profit % | 31.5 | % | 31.6 | % | 31.7 | % | 31.4 | % |
Selling, general and administrative expense | 101.6 | 80.5 | 196.0 | 177.8 | ||||
Restructuring expense | 1.0 | 2.1 | 2.0 | 4.1 | ||||
Operating income | 47.3 | 47.6 | 85.1 | 91.3 | ||||
Operating income % | 9.9 | % | 11.6 | % | 9.5 | % | 10.5 | % |
Pension expense, other than service cost | - | 1.0 | - | 2.0 | ||||
Net interest expense | 2.1 | 3.5 | 4.2 | 8.3 | ||||
Income from continuing operations before income taxes | 45.2 | 43.1 | 80.9 | 81.0 | ||||
Provision for income taxes | 14.7 | 10.6 | 23.4 | 19.5 | ||||
Income from continuing operations | 30.5 | 32.5 | 57.5 | 61.5 | ||||
Net income | $ | 30.5 | $ | 32.5 | $ | 57.5 | $ | 61.5 |
Basic earnings per share: | ||||||||
Income from continuing operations | $ | 0.95 | $ | 1.02 | $ | 1.80 | $ | 1.92 |
Net income | $ | 0.95 | $ | 1.02 | $ | 1.80 | $ | 1.92 |
Diluted earnings per share: | ||||||||
Income from continuing operations | $ | 0.95 | $ | 1.01 | $ | 1.79 | $ | 1.92 |
Net income | $ | 0.95 | $ | 1.01 | $ | 1.79 | $ | 1.92 |
Weighted average shares outstanding | ||||||||
Basic | 32.0 | 32.0 | 32.0 | 31.9 | ||||
Diluted | 32.1 | 32.0 | 32.1 | 32.1 | ||||
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 June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Income from continuing operations as reported | $ | 30.5 | $ | 32.5 | $ | 57.5 | $ | 61.5 |
Non-GAAP adjustments: | ||||||||
Restructuring expense | 1.0 | 2.1 | 2.0 | 4.1 | ||||
M&A related cost(1)
| 3.5 | 1.0 | 4.9 | 3.5 | ||||
Impact on tax provision from Non-GAAP adjustments(2)
| (1.1) | (0.7) | (1.7) | (1.8) | ||||
Impact on tax provision from remeasurement of deferred taxes from material tax rate changes | 4.4 | - | 4.4 | - | ||||
Adjusted income from continuing operations | $ | 38.3 | $ | 34.9 | $ | 67.1 | $ | 67.3 |
Income from continuing operations as reported | $ | 30.5 | $ | 32.5 | $ | 57.5 | $ | 61.5 |
Total shares and dilutive securities | 32.1 | 32.0 | 32.1 | 32.1 | ||||
Diluted earnings per share from continuing operations | $ | 0.95 | $ | 1.01 | $ | 1.79 | $ | 1.92 |
Adjusted income from continuing operations | $ | 38.3 | $ | 34.9 | $ | 67.1 | $ | 67.3 |
Total shares and dilutive securities | 32.1 | 32.0 | 32.1 | 32.1 | ||||
Adjusted diluted earnings per share from continuing operations | $ | 1.19 | $ | 1.09 | $ | 2.09 | $ | 2.10 |
(1) M&A related costs include integration costs, amortization of inventory step-up from business combinations, earn out adjustments to fair value, advisory and transaction costs for both potential and completed M&A transactions and strategy.
| ||||||||
(2) Impact on income tax provision was calculated using our annual effective tax rate of 24.4% and 23.8% for the quarters ended June 30, 2021 and 2020, 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 June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net income | $ | 30.5 | $ | 32.5 | $ | 57.5 | $ | 61.5 |
Income from continuing operations as reported | 30.5 | 32.5 | 57.5 | 61.5 | ||||
Income tax provision | 14.7 | 10.6 | 23.4 | 19.5 | ||||
Interest expense, net | 2.1 | 3.5 | 4.2 | 8.3 | ||||
Depreciation and amortization | 18.3 | 17.7 | 36.6 | 35.2 | ||||
EBITDA | 65.6 | 64.3 | 121.7 | 124.5 | ||||
Restructuring expense | 1.0 | 2.1 | 2.0 | 4.1 | ||||
Pension expense, other than service cost | - | 1.0 | - | 2.0 | ||||
M&A related cost(1)
| 3.5 | 1.0 | 4.9 | 3.5 | ||||
Adjusted EBITDA | $ | 70.1 | $ | 68.4 | $ | 128.6 | $ | 134.1 |
(1) M&A related costs include integration costs, amortization of inventory step-up from business combinations, earn out adjustments to fair value, advisory and transaction costs for both potential and completed M&A transactions and strategy.
| ||||||||
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 June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenue | ||||||||
JBT FoodTech | $ | 360.7 | $ | 302.8 | $ | 672.5 | $ | 612.5 |
JBT AeroTech | 114.8 | 108.7 | 220.8 | 256.7 | ||||
Total revenue | $ | 475.5 | $ | 411.5 | $ | 893.3 | $ | 869.2 |
Income before income taxes | ||||||||
Segment operating profit(1)(2):
| ||||||||
JBT FoodTech | $ | 51.5 | $ | 49.0 | $ | 93.0 | $ | 89.7 |
JBT FoodTech segment operating profit % | 14.3% | 16.2% | 13.8% | 14.6% | ||||
JBT AeroTech | 12.1 | 10.3 | 22.0 | 28.8 | ||||
JBT AeroTech segment operating profit % | 10.5% | 9.5% | 10.0% | 11.2% | ||||
Total segment operating profit | 63.6 | 59.3 | 115.0 | 118.5 | ||||
Total segment operating profit % | 13.4% | 14.4% | 12.9% | 13.6% | ||||
Corporate expense | 15.3 | 9.6 | 27.9 | 23.1 | ||||
Restructuring expense | 1.0 | 2.1 | 2.0 | 4.1 | ||||
Operating income | $ | 47.3 | $ | 47.6 | $ | 85.1 | $ | 91.3 |
Operating income % | 9.9% | 11.6% | 9.5% | 10.5% | ||||
Other business segment information | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
Inbound orders | 2021 | 2020 | 2021 | 2020 | ||||
JBT FoodTech | $ | 397.6 | $ | 262.7 | $ | 783.3 | $ | 578.2 |
JBT AeroTech | 182.5 | 81.9 | 282.9 | 236.5 | ||||
Total inbound orders | $ | 580.1 | $ | 344.6 | $ | 1,066.2 | $ | 814.7 |
As of June 30, | ||||||||
2021 | 2020 | |||||||
Order Backlog | ||||||||
JBT FoodTech | $ | 531.5 | $ | 360.0 | ||||
JBT AeroTech | 348.6 | 283.1 | ||||||
Total order backlog | $ | 880.1 | $ | 643.1 | ||||
(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 June 30, 2021 | ||||||||
(In millions) | JBT FoodTech | JBT AeroTech | Corporate (Unallocated) | Consolidated | ||||
Operating profit | $ | 51.5 | $ | 12.1 | $ | (16.3) | $ | 47.3 |
Restructuring expense | - | - | 1.0 | 1.0 | ||||
M&A related cost(1)
| 0.3 | - | 3.2 | 3.5 | ||||
Adjusted operating profit | 51.8 | 12.1 | (12.1) | 51.8 | ||||
Depreciation and amortization | 16.9 | 0.6 | 0.8 | 18.3 | ||||
Adjusted EBITDA | $ | 68.7 | $ | 12.7 | $ | (11.3) | $ | 70.1 |
Total revenue | $ | 360.7 | $ | 114.8 | $ | - | $ | 475.5 |
Operating profit % | 14.3 | % | 10.5 | % | 9.9 | % | ||
Adjusted operating profit % | 14.4 | % | 10.5 | % | 10.9 | % | ||
Adjusted EBITDA % | 19.0 | % | 11.1 | % | 14.7 | % | ||
Six Months Ended June 30, 2021 | ||||||||
(In millions) | JBT FoodTech | JBT AeroTech | Corporate (Unallocated) | Consolidated | ||||
Operating profit | $ | 93.0 | $ | 22.0 | $ | (29.9) | $ | 85.1 |
Restructuring expense | - | - | 2.0 | 2.0 | ||||
M&A related cost(1)
| 0.8 | - | 4.1 | 4.9 | ||||
Adjusted operating profit | 93.8 | 22.0 | (23.8) | 92.0 | ||||
Depreciation and amortization | 33.2 | 2.0 | 1.4 | 36.6 | ||||
Adjusted EBITDA | $ | 127.0 | $ | 24.0 | $ | (22.4) | $ | 128.6 |
Total revenue | $ | 672.5 | $ | 220.8 | $ | - | $ | 893.3 |
Operating profit % | 13.8 | % | 10.0 | % | 9.5 | % | ||
Adjusted operating profit % | 13.9 | % | 10.0 | % | 10.3 | % | ||
Adjusted EBITDA % | 18.9 | % | 10.9 | % | 14.4 | % | ||
(1) M&A related costs include integration costs, amortization of inventory step-up from business combinations, earn out adjustments to fair value, advisory and transaction costs for both potential and completed M&A transactions and strategy.
| ||||||||
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 June 30, 2020 | ||||||||
(In millions) | JBT FoodTech | JBT AeroTech | Corporate (Unallocated) | Consolidated | ||||
Operating profit | 49.0 | 10.3 | (11.7) | 47.6 | ||||
Restructuring expense | - | - | 2.1 | 2.1 | ||||
M&A related cost(1)
| 0.3 | - | 0.7 | 1.0 | ||||
Adjusted operating profit | 49.3 | 10.3 | (8.9) | 50.7 | ||||
Depreciation and amortization | 15.6 | 1.5 | 0.6 | 17.7 | ||||
Adjusted EBITDA | $ | 64.9 | $ | 11.8 | $ | (8.3) | $ | 68.4 |
Total revenue | $ | 302.8 | $ | 108.7 | $ | - | $ | 411.5 |
Operating profit % | 16.2 | % | 9.5 | % | 11.6 | % | ||
Adjusted operating profit % | 16.3 | % | 9.5 | % | 12.3 | % | ||
Adjusted EBITDA % | 21.4 | % | 10.9 | % | 16.6 | % | ||
Six Months Ended June 30, 2020 | ||||||||
(In millions) | JBT FoodTech | JBT AeroTech | Corporate (Unallocated) | Consolidated | ||||
Operating profit | $ | 89.7 | $ | 28.8 | $ | (27.2) | $ | 91.3 |
Restructuring expense | - | - | 4.1 | 4.1 | ||||
M&A related cost(1)
| 0.3 | - | 3.2 | 3.5 | ||||
Adjusted operating profit | 90.0 | 28.8 | (19.9) | 98.9 | ||||
Depreciation and amortization | 31.2 | 2.7 | 1.3 | 35.2 | ||||
Adjusted EBITDA | $ | 121.2 | $ | 31.5 | $ | (18.6) | $ | 134.1 |
Total revenue | $ | 612.5 | $ | 256.7 | $ | - | $ | 869.2 |
Operating profit % | 14.6 | % | 11.2 | % | 10.5 | % | ||
Adjusted operating profit % | 14.7 | % | 11.2 | % | 11.4 | % | ||
Adjusted EBITDA % | 19.8 | % | 12.3 | % | 15.4 | % | ||
(1) M&A related costs include integration costs, amortization of inventory step-up from business combinations, earn out adjustments to fair value, advisory and transaction costs for both potential and completed M&A transactions and strategy.
| ||||||||
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) | ||||
June 30, | December 31, | |||
2021 | 2020 | |||
Cash and cash equivalents | $ | 202.3 | $ | 47.5 |
Trade receivables, net of allowances | 307.1 | 304.4 | ||
Inventories | 204.1 | 197.3 | ||
Other current assets | 64.6 | 66.9 | ||
Total current assets | 778.1 | 616.1 | ||
Property, plant and equipment, net | 267.8 | 268.0 | ||
Other assets | 930.4 | 921.8 | ||
Total assets | $ | 1,976.3 | $ | 1,805.9 |
Short-term debt and current portion of long-term debt | $ | 0.6 | $ | 2.4 |
Accounts payable, trade and other | 177.9 | 140.7 | ||
Advance and progress payments | 144.9 | 137.5 | ||
Other current liabilities | 155.5 | 176.9 | ||
Total current liabilities | 478.9 | 457.5 | ||
Long-term debt, less current portion | 641.1 | 522.5 | ||
Accrued pension and other post-retirement benefits, less current portion | 88.8 | 94.1 | ||
Other liabilities | 81.8 | 94.7 | ||
Common stock and additional paid-in capital | 212.3 | 229.2 | ||
Retained earnings | 678.9 | 627.8 | ||
Accumulated other comprehensive loss | (205.5) | (219.9) | ||
Total stockholders equity | 685.7 | 637.1 | ||
Total Liabilities and Stockholders Equity | $ | 1,976.3 | $ | 1,805.9 |
JBT CORPORATION | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(Unaudited and in millions) | ||||
Six Months Ended June 30, | ||||
2021 | 2020 | |||
Cash flows from operating activities: | ||||
Income from continuing operations | $ | 57.5 | $ | 61.5 |
Adjustments to reconcile income to cash provided by operating activities: | ||||
Depreciation and amortization | 36.6 | 35.2 | ||
Other | 6.5 | 6.2 | ||
Changes in operating assets and liabilities: | ||||
Trade accounts receivable, net | (2.8) | 53.5 | ||
Inventories | (11.0) | 2.6 | ||
Accounts payable, trade and other | 37.6 | (46.2) | ||
Advance and progress payments | 8.4 | (3.5) | ||
Other - assets and liabilities, net | (2.5) | (8.3) | ||
Cash provided by continuing operating activities | 130.3 | 101.0 | ||
Cash provided by operating activities | 130.3 | 101.0 | ||
Cash flows from investing activities: | ||||
Acquisitions, net of cash acquired | (15.9) | (4.5) | ||
Capital expenditures | (20.3) | (16.2) | ||
Other | 1.7 | 1.7 | ||
Cash required by investing activities | (34.5) | (19.0) | ||
Cash flows from financing activities: | ||||
Net payments on credit facilities | (271.9) | (51.7) | ||
Proceeds from issuance of 2026 convertible senior notes, net of issuance costs | 392.2 | - | ||
Purchase of convertible bond hedge | (65.6) | - | ||
Proceeds from sale of warrants | 29.5 | - | ||
Dividends | (6.3) | (6.3) | ||
Payment of acquisition date earnout liability | (16.1) | - | ||
Other | (2.0) | (2.2) | ||
Cash provided (required) by financing activities | 59.8 | (60.2) | ||
Effect of foreign exchange rate changes on cash and cash equivalents | (0.8) | (3.3) | ||
Increase in cash and cash equivalents | 154.8 | 18.5 | ||
Cash and cash equivalents, beginning of period | 47.5 | 39.5 | ||
Cash and cash equivalents, end of period | $ | 202.3 | $ | 58.0 |
JBT CORPORATION | ||||
NON-GAAP FINANCIAL MEASURES | ||||
FREE CASH FLOW | ||||
(Unaudited and in millions) | ||||
Six Months Ended June 30, | ||||
2021 | 2020 | |||
Cash provided by continuing operating activities | $ | 130.3 | $ | 101.0 |
Less: capital expenditures | 20.3 | 16.2 | ||
Plus: proceeds from sale of fixed assets | 1.7 | 1.7 | ||
Plus: pension contributions | 0.5 | 0.4 | ||
Free cash flow (FCF) | $ | 112.2 | $ | 86.9 |
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 | ||||||||||
NET DEBT CALCULATION | ||||||||||
(Unaudited and in millions) | ||||||||||
June 30, | December 31, | June 30, | Change from | Change from | ||||||
2021 | 2020 | 2020 | Prior Year-End | Prior Year | ||||||
Total debt | $ | 641.7 | $ | 524.9 | $ | 647.7 | $ | 116.8 | $ | (6.0) |
Cash and cash equivalents | (202.3) | (47.5) | (58.0) | (154.8) | (144.3) | |||||
Net debt | $ | 439.4 | $ | 477.4 | $ | 589.7 | $ | (38.0) | $ | (150.3) |
JBT CORPORATION | ||
BANK LEVERAGE RATIO CALCULATION | ||
(Unaudited and in millions) | ||
Four Quarters Ended | ||
June 30, 2021 | ||
Total debt | $ | 641.7 |
Cash and cash equivalents | (202.3) | |
Other items considered debt under the credit agreement | 24.5 | |
Consolidated total indebtedness(1)
| $ | 463.9 |
Last four quarters Adjusted EBITDA | $ | 254.0 |
Other adjustments net to earnings under the credit agreement | (18.5) | |
Consolidated EBITDA(1)
| $ | 235.5 |
Bank leverage ratio (Consolidated Total Indebtedness / Consolidated EBITDA) | 2.0 | |
(1) As defined in the credit agreement |
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 | Guidance | |
Q3 2021 | Full Year 2021 | |
Diluted earnings per share from continuing operations | $1.00 - 1.10 | $4.15 - 4.35 |
Non-GAAP adjustments: | ||
Restructuring expense(1)
| 0.05 | 0.12 |
M&A related costs(2)
| 0.08 | 0.28 |
Impact on tax provision from Non-GAAP adjustments(3)
| (0.03) | (0.09) |
Impact on tax provision from remeasurement of deferred taxes from material tax rate changes | - | 0.14 |
Adjusted diluted earnings per share from continuing operations | $1.10 - 1.20 | $4.60 - 4.80 |
(1) Restructuring expense is estimated to be approximately $1-2 million and $3-4 million for the third quarter 2021 and full year 2021, respectively. 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 $2-3 million and $8-9 million for the third quarter 2021 and full year 2021, respectively. The mid-point amount has been divided by our estimate of 32.1 million total shares and dilutive securities to derive earnings per share. | ||
(3) Impact on tax provision was calculated using the Company's effective tax rate of approximately 25%. |
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JBT - John Bean Technologies Corporation published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 20:49:56 UTC.