- Segment operating profit of $24.6 million on consolidated revenue of
$258.6 million for the third quarter of 2008
- On track to achieve full-year 2008 earnings projection
- Strong year-to-date operating cash flow
CHICAGO, Nov. 10 /PRNewswire-FirstCall/ -- JBT Corporation (NYSE: JBT), a
leading global technology solutions provider to the food processing and air
transportation industries, today reported third quarter 2008 results.
For the third quarter of 2008, revenue of $258.6 million increased from
$254.7 million in the third quarter of 2007. Segment operating profit of
$24.6 million decreased $0.8 million from $25.4 million in the prior year
quarter. Diluted earnings per share from continuing operations were $0.31.
Year-to-date diluted earnings per share from continuing operations were $1.22.
Third quarter pro forma diluted earnings per share from continuing operations
(a non-GAAP measure which includes comparable debt and interest expense in all
periods) were $0.29, down 31 percent from $0.42 per diluted share in the prior
year quarter. Year-to-date pro forma diluted earnings per share from
continuing operations (a non-GAAP measure which includes comparable debt and
interest expense in all periods) were $1.08, an increase of 48 percent from
$0.73 per diluted share in the same period last year. The Company is on track
to achieve its full-year earnings projection of pro forma diluted earnings per
share of $1.30-$1.40 after adjusting comparable debt and interest expense for
January through July 2008 (or GAAP diluted earning per share of $1.44-$1.54).
Year-to-date cash flow from continuing operations reduced net debt to $108.9
million.
"We are pleased with our operating results for the quarter. We executed
well across all business units. AeroTech continued its top-line growth while
maintaining operating margin in an industry facing significant headwinds. We
also provided strong cash flow that supported debt reduction, completion of
the company's first acquisition, and the declaration of our very first
dividend to shareholders. As with most other companies, we are concerned
about general economic conditions and are closely monitoring the impact on our
future business levels. However, we believe our global market positions and
diversified revenue streams including a meaningful proportion of recurring
revenue will help us navigate this challenging environment while maintaining
focus on our longer-term growth opportunities," said Charlie Cannon, Chairman
and Chief Executive Officer.
JBT FoodTech
JBT FoodTech's third quarter revenue of $142.8 million declined 3 percent
from $146.9 million in the same period last year reflecting the slowdown in
the North American markets partially offset by favorable foreign currency
translation. JBT FoodTech's operating profit of $13.1 million decreased 11
percent from $14.7 million in the third quarter of last year. Operating
margin declined to 9.2 percent from 10.0 percent in the prior year quarter
mainly due to lower volume and unfavorable product mix compared to the
prior-year quarter; partially offset by reduced selling and administration
expenses. Inbound orders totaled $138.5 million during the quarter, declining
12 percent, versus $156.9 million in last year's third quarter, reflecting
project delays due to the tightening credit market. Backlog of $150.7 million
was down 18 percent from $184.4 million in the prior year.
JBT AeroTech
JBT AeroTech's third quarter revenue of $115.2 million increased 9 percent
from $106.0 million in the same period last year primarily due to strong
shipments of aviation fuel-saving pre-conditioned air units as well as
Halverson cargo loaders. JBT AeroTech's operating profit increased 8 percent
to $11.5 million from $10.7 million in the same period last year primarily
resulting from the increase in revenue. Operating margin remained flat at
10.0 percent. Inbound orders totaled $98.5 million, down 26 percent from
$132.6 million in last year's third quarter reflecting the unfavorable
industry and economic conditions facing airlines and air freight companies as
well as timing of orders. Backlog of $170.9 million was down 32 percent from
$252.0 million in the prior year quarter.
Corporate Items
Corporate expense in the third quarter of 2008 was $4.2 million, an
increase of $1.1 million versus the prior-year quarter in part due to initial
recruiting, relocation and other expenses associated with the build-up of
corporate staff.
Other expense, net, of $5.8 million increased $3.4 million from the third
quarter of 2007. The company incurred non-cash, mark-to-market expenses on
foreign currency contracts of $1.1 million as a result of the recent
strengthening of the U.S. dollar. As the foreign currency contracts will be
held to maturity and economically hedge expected exposure, the mark-to-market
difference is a timing difference and will reverse. In addition, the company
incurred a loss of $2.3 million on a currency hedge resulting from the
disaggregation of pooled hedges associated with our spin-off and the recent
significant strengthening of the U.S. dollar.
The company ended the quarter with debt, net of cash, of $108.9 million
after closing the acquisition of USA Sales & Automation in September. Net
interest expense was $1.5 million in the third quarter of 2008 reflecting two
months of interest expense on debt incurred as a result of the spin-off from
FMC Technologies on July 31st.
In October 2008, the company completed the dividend "true-up" process
required by its separation agreement with FMC Technologies; the estimated
dividend payment made at the closing of the spin-off was to be adjusted to
reflect actual results. An additional payment of $38.9 million was made on
October 14, 2008. The payment includes reimbursement to FTI for $22.2 million
cash & cash equivalents retained by JBT's foreign operations at the time of
the spin-off.
Capital expenditures during the third quarter of 2008 were $4.4 million,
up from $4.0 million in the prior year quarter. Depreciation and amortization
for the third quarter was $6.9 million, up from $6.6 million in the prior-year
quarter.
The company recorded an effective tax rate of 32.8 percent for continuing
operations in the third quarter.
First Nine Months 2008
For the nine months ended September 30, 2008, total revenue increased 16
percent to $795.6 million from $687.5 million during the same period last
year. Segment operating profit of $73.0 million was up 27 percent from $57.6
million last year. The diluted earnings per share from continuing operations
were $1.22, up 33 percent from $0.92 per diluted share in the prior year
period. Pro forma diluted earnings per share from continuing operations (a
non-GAAP measure which includes comparable debt and interest expense in all
periods) were $1.08, an increase of 48 percent from $0.73 per diluted share in
the same period last year.
Year-to-date capital expenditures totaled $16.6 million and depreciation
and amortization totaled $19.5 million.
Outlook
The company reaffirms 2008 year-over-year total revenue growth in the
range of 6-10 percent and stable segment margins versus 2007 in both the JBT
FoodTech and JBT AeroTech segments. Full-year US GAAP diluted earnings per
share from continuing operations are projected between $1.44 and $1.54. After
adjusting for comparable debt and interest expense for January through July
2008, adjusted diluted earnings per share from continuing operations are
projected to be in the range of $1.30-$1.40.
Third Quarter Earnings Conference Call
The company will hold a conference call at 10:30 AM EST Monday, November
10, 2008, to discuss the third 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
November 17, 2008 and can be accessed by dialing (800) 642-1687 and
referencing passcode 68726594, or visiting the Investor Relations Center of
the website.
JBT Corporation (NYSE: JBT) is a leading global technology 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 Registration Statement on Form 10 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 September 30,
2008 2007
Historical Pro Forma(1) Historical Pro Forma(1)
Revenue $258.6 $258.6 $254.7 $254.7
Costs and expenses 244.0 244.0 234.8 234.8
Income before net interest
income (expense) and
income taxes 14.6 14.6 19.9 19.9
Net interest income
(expense) (1.5) (2.4) 0.1 (2.6)
Income from continuing
operations before
income taxes 13.1 12.2 20.0 17.3
Provision for income taxes 4.3 4.0 6.6 5.6
Income from continuing
operations 8.8 8.2 13.4 11.7
Income (loss) from
discontinued operations,
net of tax -- -- (0.7) (0.7)
Net income $8.8 $8.2 $12.7 $11.0
Income from continuing
operations per common
share:
Basic $0.32 $0.30 $0.49 $0.42
Diluted $0.31 $0.29 $0.49 $0.42
Weighted average shares
outstanding:
Basic (2) 27.5 27.5 27.5 27.5
Diluted (2) 28.1 28.1 27.5 27.5
(1) In connection with the separation from FMC Technologies, JBT
Corporation agreed to pay FMC Technologies a dividend of $189.4
million, $150.5 of which was paid upon separation on July 31, 2008
and $38.9 million was paid on October 14, 2008. The dividend was
funded through issuance of unsecured debt. Pro forma results include
an estimate of interest expense that JBT Corporation would have
incurred had the spin-off occurred on January 1, 2008. Interest
expense is based on $189.4 million of debt at the interest rate
applicable on July 31, 2008, or 5.8%, for all periods prior to the
separation date. Related income tax impact has been estimated using a
rate of 37%.
(2) The number of shares used to compute basic and diluted earnings per
share for the period ending September 30, 2007 is based on the number
of shares outstanding on July 31, 2008, the distribution date in
connection with the separation from FMC Technologies, or 27.5 million
shares.
JBT CORPORATION
CONDENSED COMBINED STATEMENTS OF INCOME
(Unaudited and in millions)
Nine Months Ended September 30,
2008 2007
Historical Pro Forma(1) Historical Pro Forma(1)
Revenue $795.6 $795.6 $687.5 $687.5
Costs and expenses 742.4 742.4 649.2 649.2
Income before net interest
income (expense) and
income taxes 53.2 53.2 38.3 38.3
Net interest income
(expense) (1.2) (7.6) 0.2 (8.0)
Income from continuing
operations before income
taxes 52.0 45.6 38.5 30.3
Provision for income taxes 18.2 15.8 13.1 10.1
Income from continuing
operations 33.8 29.8 25.4 20.2
Income (loss) from
discontinued operations,
net of tax 0.3 0.3 (1.7) (1.7)
Net income $34.1 $30.1 $23.7 $18.5
Income from continuing
operations per common
share:
Basic $1.23 $1.08 $0.92 $0.73
Diluted $1.22 $1.08 $0.92 $0.73
Weighted average shares
outstanding:
Basic (2) 27.5 27.5 27.5 27.5
Diluted (2) 27.7 27.7 27.5 27.5
(1) In connection with the separation from FMC Technologies, JBT
Corporation agreed to pay FMC Technologies a dividend of $189.4
million, $150.5 of which was paid upon separation on July 31, 2008
and $38.9 million was paid on October 14, 2008. The dividend was
funded through issuance of unsecured debt. Pro forma results include
an estimate of interest expense that JBT Corporation would have
incurred had the spin-off occurred on January 1, 2008. Interest
expense is based on $189.4 million of debt at the interest rate
applicable on July 31, 2008, or 5.8%, for all periods prior to the
separation date. Related income tax impact has been estimated using a
rate of 37%.
(2) The number of shares used to compute basic and diluted earnings per
share for the period ending September 30, 2007 is based on the number
of shares outstanding on July 31, 2008, the distribution date in
connection with the separation from FMC Technologies, or 27.5 million
shares.
JBT CORPORATION
BUSINESS SEGMENT DATA
(Unaudited and in millions)
Three Months Ended Nine Months Ended
September 30 September 30
2008 2007 2008 2007
Revenue
JBT FoodTech $142.8 $146.9 $451.1 $424.0
JBT AeroTech 115.2 106.0 343.9 264.6
Other revenue (1) and intercompany
eliminations 0.6 1.8 0.6 (1.1)
Total revenue $258.6 $254.7 $795.6 $687.5
Income before income taxes
Segment operating profit
JBT FoodTech $13.1 $14.7 $41.8 $38.3
JBT AeroTech 11.5 10.7 31.2 19.3
Total segment operating profit 24.6 25.4 73.0 57.6
Corporate items
Corporate expense (4.2) (3.1) (10.0) (8.7)
Other expense, net (1) (5.8) (2.4) (9.8) (10.7)
Net interest income (1.5) 0.1 (1.2) 0.3
Total corporate items (11.5) (5.4) (21.0) (19.1)
Income from continuing operations
before income taxes $13.1 $20.0 $52.0 $38.5
(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 Nine Months Ended
September 30 September 30
2008 2007 2008 2007
Inbound Orders
JBT FoodTech $138.5 $156.9 $434.4 $444.6
JBT AeroTech 98.5 132.6 284.1 357.5
Other orders and intercompany
eliminations (1.0) (0.1) (3.1) (0.9)
Total inbound orders $236.0 $289.4 $715.4 $801.2
September 30
2008 2007
Order Backlog
JBT FoodTech $150.7 $184.4
JBT AeroTech 170.9 252.0
Intercompany eliminations (3.4) (0.6)
Total order backlog $318.2 $435.8
JBT CORPORATION
CONDENSED COMBINED BALANCE SHEETS
(In millions)
September 30 December 31
2008 2007
(Unaudited)
Cash and cash equivalents $31.1 $9.5
Trade receivables, net 162.6 179.2
Inventories 141.3 147.2
Other current assets 31.5 33.9
Total current assets 366.5 369.8
Property, plant and equipment, net 125.1 126.8
Goodwill 27.6 23.8
Intangible assets, net 19.9 21.2
Other assets 46.9 32.3
Total assets $586.0 $573.9
Accounts payable, trade and other $78.7 $101.3
Advance payments and progress billings 105.7 105.3
Payable to former parent 38.9 --
Other current liabilities 118.3 99.6
Total current liabilities 341.6 306.2
Long-term debt 140.0 --
Long term deferred tax liability 3.5 6.7
Other liabilities 79.5 46.7
Stockholders Equity 49.4 218.3
Accumulated other comprehensive income (loss) (28.0) (4.0)
Total liabilities and stockholders' equity $586.0 $573.9
JBT CORPORATION
CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
Nine Months Ended
September 30
2008 2007
Cash provided (required) by operating
activities of continuing operations:
Income from continuing operations $33.8 $25.4
Depreciation and amortization 19.5 19.0
Trade accounts receivable, net 12.4 (18.5)
Inventories 5.3 (31.4)
Accounts payable, trade and other (22.9) 11.1
Advance payments and progress billings 7.9 (1.1)
Other 26.1 10.3
Net cash provided by operating
activities of continuing operations 82.1 14.8
Cash required by operating activities
of discontinued operations (0.1) (2.1)
Cash provided (required) by investing
activities of continuing operations:
Acquisitions (4.5) --
Capital expenditures (16.6) (14.2)
Proceeds on disposal of assets and other 2.4 1.4
Net cash required by investing
activities of continuing operations (18.7) (12.8)
Cash provided by investing activities
of discontinued operations 0.7 5.1
Cash required by financing activities:
Net Increase (decrease) in debt (0.4) 0.5
Issuance of Long-term debt, net of payments 140.0 --
Distribution to Owner (181.2) (8.0)
Purchase of stock held in treasury (0.7) --
Net cash required by financing activities (42.3) (7.5)
Effect of changes in foreign exchange
rates on cash and cash equivalents (0.1) 0.6
Increase (decrease) in cash and cash equivalents 21.6 (1.9)
Cash and cash equivalents, beginning of period 9.5 10.3
Cash and cash equivalents, end of period $31.1 $8.4
SOURCE JBT Corporation
CONTACT: investors, Cindy Shiao, +1-312-861-5931, or media, Ken Jones,
+1-312-861-6791, both for JBT Corporation