- Revenue up 16 percent to $276.7 million
- Net Income up 67 percent to $13.0 million
- Pro Forma Diluted Earnings per share from continuing operations of
$0.42 versus $0.22 one year ago
- Spin-off from FMC Technologies, Inc. completed on July 31
- Company anticipates Full-Year 2008 Adjusted Diluted Earnings Per Share
from Continuing Operations of $1.30 to $1.40
CHICAGO, Aug. 11 /PRNewswire-FirstCall/ -- JBT Corporation (NYSE: JBT), a
leading global technology solutions provider to the food processing and air
transportation industries, today reported second quarter 2008 results
following the July 31, 2008 spin-off from FMC Technologies, Inc. (NYSE: FTI).
For the second quarter of 2008, revenue of $276.7 million increased
16 percent from $237.9 million in the second quarter of 2007. Pre-tax income
from continuing operations of $19.5 million increased 68 percent from
$11.6 million in the prior year quarter. Net income of $13.0 million
increased 67 percent from $7.8 million in the second quarter of 2007. Pro
forma diluted earnings per share from continuing operations were $0.42, up
91 percent from $0.22 per diluted share in the prior year quarter.
"We are pleased to provide this inaugural earnings release as an
independent public company. We have accomplished a lot in a short period of
time, all while continuing to deliver strong results. Over the past year, we
have devoted significant resources to the successful separation from our
parent company. We have established a top notch Board of Directors, initiated
sound corporate governance practices and filled several key senior executive
positions. We believe we are well positioned to capture future growth
opportunities and create value for our shareholders," said Charlie H. Cannon,
Chairman and Chief Executive Officer.
JBT FoodTech
JBT FoodTech's second quarter revenue of $159.9 million increased 5
percent from $152.0 million in the same period last year primarily driven by
foreign currency translation. Second quarter JBT FoodTech segment operating
profit of $15.8 million increased 52 percent from $10.4 million in the second
quarter of last year. Segment operating margin expanded to 9.9 percent from
6.8 percent for the same period last year primarily due to favorable product
mix as well as a higher proportion of aftermarket revenue. Inbound orders
totaled $147.0 million during the quarter, up 3 percent versus $142.2 million
in last year's second quarter. Backlog of $154.7 million was down 12 percent
from $176.5 million in the prior year quarter.
JBT AeroTech
JBT AeroTech's second quarter revenue of $117.0 million increased
35 percent from $86.7 million in the same period last year primarily due to
higher ground support equipment volume. Strong cargo loader sales to
international airlines as well as increased passenger boarding bridge sales to
domestic airport authorities contributed to the favorable comparison. Second
quarter JBT AeroTech segment operating profit increased 62 percent to $10.5
million from $6.5 million in the same period last year due to the higher
volume and leveraging selling and administrative costs, partially offset by
higher steel costs. Segment operating margin increased to 9.0 percent from
7.5 percent last year. Inbound orders totaled $98.9 million, down 24 percent
from $130.7 million in last year's second quarter. Backlog of $187.6 million
was down 17 percent from $225.4 million in the prior year quarter primarily
due to industry and economic conditions facing airlines and air freight
companies.
Corporate Items
Corporate expense in the second quarter of 2008 was $3.0 million, in line
with the prior year quarter.
Other expense, net, of $4.0 million increased $1.6 million from the second
quarter of 2007.
The company recorded an effective tax rate of 33.3 percent for continuing
operations in the second quarter.
In July 2008, the company issued $75 million senior unsecured notes
payable on July 31, 2015. In addition, the company entered into a $225
million, 5-year revolving credit facility. On July 31, 2008, a $150.5 million
initial dividend was paid to FMC Technologies, Inc. in connection with the
spin-off transaction. The final dividend amount will be determined by a
"true-up" process in accordance with the Separation and Distribution Agreement
between the companies.
First Six Months 2008
For the six months ended June 30, 2008, total revenue of $536.9 million
increased 24 percent from $432.7 million during the same period last year.
Pre-tax income from continuing operations of $38.9 million was up 110 percent
from $18.5 million last year. Net income of $25.3 million was up 130 percent
from $11.0 million for the same period in the prior year. Pro forma diluted
earnings per share from continuing operations were $0.79, up 172 percent from
$0.29 per diluted share in the same period last year.
Year-to-date capital expenditures totaled $12.2 million and depreciation
and amortization totaled $12.6 million.
Outlook
The company expects 2008 year-over-year total revenue growth in the range
of 6-10 percent with continued top line growth and stable segment margins
versus 2007 in both the JBT FoodTech and JBT AeroTech segments. Adjusted
diluted earnings per share from continuing operations are expected to be in
the range of $1.30-$1.40, including a full year of interest expense.
Second Quarter Earnings Conference Call
The company will hold a conference call at 9:00 AM EDT Tuesday, August 12,
2008, to discuss the second quarter results and the business outlook. The call
can be accessed live by dialing (800) 437-4632 or (706) 634-1012, or through
the Investor Relations Center of JBT Corporation's website at
http://ir.jbtcorporation.com. A replay of the call will be available through
August 19, 2008 and can be accessed by dialing (800) 642-1687 and referencing
passcode 59100551, or visiting the Investor Relations Center of the website.
JBT Corporation (NYSE: JBT) is a leading global solutions provider to the
food processing and air transportation industries. The Company 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 3,100 people worldwide and operates sales, service,
manufacturing and sourcing operations located in over 25 countries. For more
information please visit http://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 Information Statement 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.
FINANCIAL TABLES FOLLOW
JBT CORPORATION
CONDENSED COMBINED STATEMENTS OF INCOME
(Unaudited and in millions)
Three Months Ended June 30,
2008 2007
Historical Pro Forma(1) Historical Pro Forma(1)
Revenue $276.7 $276.7 $237.9 $237.9
Costs and expenses 257.4 257.4 226.3 226.3
Income before net interest
income (expense)
and income taxes 19.3 19.3 11.6 11.6
Net interest income
(expense) 0.2 (1.9) - (3.0)
Income from continuing
operations before
income taxes 19.5 17.4 11.6 8.6
Provision for income taxes 6.5 5.7 3.6 2.5
Income from continuing
operations 13.0 11.7 8.0 6.1
Income (loss) from discontinued
operations, net of tax - - (0.2) (0.2)
Net income $13.0 $11.7 $7.8 $5.9
Income from continuing
operations per
common share:
Basic $0.42 $0.22
Diluted $0.42 $0.22
Weighted average shares
outstanding:
Basic (2) 27.6 27.6
Diluted (3) 28.1 28.1
(1) Pro forma results include transactions associated with the company's
spin-off from FMC Technologies, which was effective July 31, 2008.
These include a dividend payment of $150.5 million paid to FMC
Technologies on July 31, 2008 and issuance of $150.5 million of
unsecured debt in order to fund the dividend. The final dividend
amount will be determined by a "true-up" process in accordance with
the Separation and Distribution Agreement. Interest expense has been
estimated using the three month LIBOR and applicable costs to obtain
financing (8.2% in 2007 and 5.6% in 2008) and excludes the interest
rate impact of interest rate swaps and notes payable signed in July
2008. Related income tax impact has been estimated using a rate of
37%.
(2) The number of shares used to compute basic earnings per share is based
on the number of shares outstanding on July 31, 2008, the distribution
date in connection with the spin-off from FMC Technologies, or 27.6
million shares.
(3) The number of shares used to compute diluted earnings per share adds
potential dilutive securities to the shares used in computing basic
earnings per share. We converted certain stock-based compensation
awards for FMC Technologies common stock into awards for JBT
Corporation common stock on the distribution date.
JBT CORPORATION
CONDENSED COMBINED STATEMENTS OF INCOME
(Unaudited and in millions)
Six Months Ended June 30,
2008 2007
Historical Pro Forma(1) Historical Pro Forma(1)
Revenue $536.9 $536.9 $432.7 $432.7
Costs and expenses 498.3 498.3 414.3 414.3
Income before net interest
income (expense)
and income taxes 38.6 38.6 18.4 18.4
Net interest income
(expense) 0.3 (4.3) 0.1 (6.0)
Income from continuing
operations before
income taxes 38.9 34.3 18.5 12.4
Provision for income taxes 13.9 12.2 6.5 4.2
Income from continuing
operations 25.0 22.1 12.0 8.2
Income (loss) from
discontinued operations,
net of tax 0.3 - (1.0) (0.2)
Net income $25.3 $22.1 $11.0 $8.0
Income from continuing
operations per
common share:
Basic $0.80 $0.30
Diluted $0.79 $0.29
Weighted average shares
outstanding:
Basic (2) 27.6 27.6
Diluted (3) 28.1 28.1
(1) Pro forma results include transactions associated with the company's
spin-off from FMC Technologies, which was effective July 31, 2008.
These include a dividend payment of $150.5 million paid to FMC
Technologies on July 31, 2008 and issuance of $150.5 million of
unsecured debt in order to fund the dividend. The final dividend
amount will be determined by a "true-up" process in accordance with
the Separation and Distribution Agreement. Interest expense has been
estimated using the three month LIBOR and applicable costs to obtain
financing (8.2% in 2007 and 6.2% in 2008) and excludes the interest
rate impact of interest rate swaps and notes payable signed in July
2008. Related income tax impact has been estimated using a rate of
37%.
(2) The number of shares used to compute basic earnings per share is based
on the number of shares outstanding on July 31, 2008, the distribution
date in connection with the spin-off from FMC Technologies, or 27.6
million shares.
(3) The number of shares used to compute diluted earnings per share adds
potential dilutive securities to the shares used in computing basic
earnings per share. We converted certain stock-based compensation
awards for FMC Technologies common stock into awards for JBT
Corporation common stock on the distribution date.
JBT CORPORATION
BUSINESS SEGMENT DATA
(Unaudited and in millions)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenue
JBT FoodTech $159.9 $152.0 $308.6 $275.0
JBT AeroTech 117.0 86.7 228.7 158.6
Other revenue (1) and intercompany
eliminations (0.2) (0.8) (0.4) (0.9)
$276.7 $237.9 $536.9 $432.7
Income before income taxes
Segment operating profit
JBT FoodTech $15.8 $10.4 $29.1 $19.6
JBT AeroTech 10.5 6.5 19.6 8.6
Total segment operating profit 26.3 16.9 48.7 28.2
Corporate items
Corporate expense (3.0) (3.0) (5.8) (5.6)
Other expense, net (1) (4.0) (2.4) (4.3) (4.3)
Net interest income 0.2 0.1 0.3 0.2
Total corporate items (6.8) (5.3) (9.8) (9.7)
Income from continuing operations
before income taxes $19.5 $11.6 $38.9 $18.5
(1) Other revenue comprises certain unrealized gains and losses on
derivative instruments related to unexecuted sales contracts. Other
expense, net, generally includes stock-based compensation, other
employee benefits, LIFO adjustments, certain 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 Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Inbound Orders
JBT FoodTech $147.0 $142.2 $295.9 $287.7
JBT AeroTech 98.9 130.7 185.6 224.9
Other orders and intercompany
eliminations (0.2) (0.7) (2.1) (0.8)
Total inbound orders $245.7 $272.2 $479.4 $511.8
June 30,
2008 2007
Order Backlog
JBT FoodTech $154.7 $176.5
JBT AeroTech 187.6 225.4
Intercompany eliminations (1.4) (0.7)
Total order backlog $340.9 $401.2
JBT CORPORATION
CONDENSED COMBINED BALANCE SHEETS
(In millions)
June 30, December 31,
2008 2007
(Unaudited)
Cash and cash equivalents $5.7 $9.5
Trade receivables, net 163.1 179.2
Inventories 162.8 147.2
Other current assets 36.6 33.9
Total current assets 368.2 369.8
Property, plant and equipment, net 132.5 126.8
Goodwill 24.2 23.8
Intangible assets, net 20.4 21.2
Other assets 33.0 32.3
Total assets $578.3 $573.9
Accounts payable, trade and other $92.3 $101.3
Advance payments and progress billings 102.2 105.3
Other current liabilities 100.8 99.6
Total current liabilities 295.3 306.2
Other liabilities 60.1 53.5
Owner's net investment 220.2 218.3
Accumulated other comprehensive income (loss) 2.7 (4.1)
Total liabilities and stockholders' equity $578.3 $573.9
JBT CORPORATION
CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
Six Months Ended
June 30,
2008 2007
Cash provided (required) by operating
activities of continuing operations:
Income from continuing operations $25.0 $12.0
Depreciation and amortization 12.6 12.4
Trade accounts receivable, net 16.2 (0.2)
Inventories (12.7) (24.3)
Accounts payable, trade and other (12.1) 14.1
Advance payments and progress billings (2.3) 5.0
Other 7.8 2.6
Net cash provided by operating activities of
continuing operations 34.5 21.6
Cash required by operating activities of
discontinued operations (0.2) (2.4)
Cash provided (required) by investing
activities of continuing operations:
Capital expenditures (12.2) (10.2)
Proceeds on disposal of assets and other 0.6 0.9
Net cash required by investing activities of
continuing operations (11.6) (9.3)
Cash provided by investing activities of
discontinued operations 0.7 -
Cash required by financing activities:
Net decrease in debt (0.1) -
Distribution to Owner (27.7) (11.4)
Net cash required by financing activities (27.8) (11.4)
Effect of changes in foreign exchange rates on
cash and cash equivalents 0.6 0.3
Decrease in cash and cash equivalents (3.8) (1.2)
Cash and cash equivalents, beginning of period 9.5 10.3
Cash and cash equivalents, end of period $5.7 $9.1
SOURCE JBT Corporation
CONTACT: Investors, Cindy Shiao, +1-312-861-5931, or Media, Ken Jones,
+1-312-861-6791, both of JBT Corporation