Thursday, July 31, 2014 Last update: 7:03 PM
FreshNews.com - All Company Technology News Since 1996

JBT Corporation Reports Fourth Quarter and Full Year 2013 Results

Companies mentioned in this article: JBT Corporation

CHICAGO, March 4, 2014 /PRNewswire/ --

Fourth Quarter 2013 Highlights:

    --  Revenue of $288 million and operating income of $20 million
    --  Diluted earnings per share from continuing operations of $0.46
    --  Adjusted diluted earnings per share from continuing operations of $0.54

Full Year 2013 Highlights:

    --  Revenue of $934 million and operating income of $53 million
    --  Diluted earnings per share from continuing operations of $1.15
    --  Adjusted diluted earnings per share from continuing operations of $1.26

JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported fourth quarter and full year 2013 results.

Fourth quarter diluted earnings per share from continuing operations was $0.46, compared to a record high $0.64 in the fourth quarter of 2012. Revenue for the fourth quarter was $288 million, a decrease of 2 percent from the prior-year record quarter. Higher revenue from aftermarket parts and services across both FoodTech and AeroTech was more than offset by lower equipment sales in AeroTech. A combination of $2.2 million in lower segment operating profit, and $6.4 million in higher corporate and restructuring expenses, resulted in consolidated operating income of $20.2 million. The increases in corporate and restructuring expenses were driven by $4.1 million of costs related to management succession and actions taken by the new management. Excluding these costs, adjusted diluted earnings per share from continuing operations was $0.54.

Fourth quarter inbound orders of $298.3 million and backlog of $376.5 million increased 29 percent and 33 percent, respectively, over the same period last year. The Company expects over 80 percent of the consolidated year-end backlog to convert to revenue in fiscal year 2014, weighted beyond the first quarter.

Full year 2013 diluted earnings per share from continuing operations was $1.15 compared to $1.26 in 2012. Full year 2013 revenue of $934.2 million increased 2 percent year-over-year. Revenue growth from FoodTech equipment and aftermarket parts and services across both segments was primarily offset by lower AeroTech ground support equipment and airport services revenue. Regionally, the Company achieved strong sales in emerging markets, particularly in the Middle East, China, and Latin America. For the year, segment operating profit increased by $3.6 million, or 4 percent from 2012, but was reduced by $11.3 million of higher corporate and restructuring expenses. As a result, consolidated operating income of $53.2 million was $7.7 million lower than prior year. Excluding $5.3 million of costs related to management succession and actions taken, diluted earnings per share from continuing operations was flat at $1.26.

"We ended the year with mixed results. FoodTech achieved record performance, while AeroTech was down. We are particularly encouraged by the overall growth experienced in emerging markets and aftermarket expansion across JBT," said Tom Giacomini, President and Chief Executive Officer. "Our business is healthy and we expect to drive moderate revenue growth in the year. We also have taken several steps for long-term value creation beyond 2014, including operational excellence initiatives and restructuring actions. While associated costs are expected to impact 2014 earnings, we are confident the actions will drive significant future earnings growth," concluded Giacomini.

The Company is currently finalizing restructuring plans, with associated charges expected to be in the range of $10 million to $14 million to be incurred in the first quarter of 2014. The restructuring is projected to deliver between $9 million and $12 million of annualized run rate savings.

JBT FoodTech

JBT FoodTech's record fourth quarter revenue of $187.8 million increased slightly over the fourth quarter 2012. Strong sales of fruit and juice equipment was offset by lower freezing equipment sales. Segment operating profit of $21.5 million decreased 10 percent from the same period in 2012, driven primarily by higher execution costs in Europe and, to a lesser degree, the impact of a smaller citrus crop. Inbound orders in the fourth quarter of $178.1 million increased 9 percent from the same period last year. Strong order activity for freezing and protein processing equipment, particularly in Asia, drove the increase in inbound orders. Backlog of $213.7 million increased 26 percent over the fourth quarter of 2012.

Numerous opportunities have been identified to accelerate the application of automated systems technologies within the food processing industry. Therefore, the Company's automated systems business, previously reported within the JBT AeroTech segment, is now included within JBT FoodTech. Historical segment results have been adjusted to reflect this change.

JBT AeroTech

JBT AeroTech's fourth quarter revenue of $100.8 million decreased 5 percent from the prior-year quarter. Strong sales of gate equipment were offset by significantly lower sales of ground support equipment. Despite the overall lower volume, segment operating profit was essentially flat due to improved sales mix and lower operating costs. Several large gate equipment orders drove inbound orders in the fourth quarter to $120.7 million, an increase of 76 percent from the prior-year quarter. Backlog of $162.8 million was ahead 43 percent year over year. Approximately 70 percent of the year-end AeroTech backlog is expected to convert to revenue in fiscal year 2014.

Corporate Items

For the full year, corporate and restructuring expenses increased by $11.3 million driven primarily by $5.3 million in costs related to management succession and actions taken, $3.0 million in unfavorable comparison of foreign currency transactions and $1.7 million in higher self-insured healthcare costs. For 2014, corporate expense, excluding management succession and consulting costs, is expected to be in the range of $26 to $28 million.

Income tax expense for 2013 reflected an income tax rate of 29 percent compared to 31 percent in 2012. The lower rate reflects $2.1 million of additional research and development credits. The Company expects its 2014 tax rate to be in a range of 31 to 33 percent.

The Company generated solid full year cash flow from continuing operating activities of $63.1 million. Full year capital expenditures totaled $29.2 million, inclusive of $7 million related to progress on replacing the Company's Lakeland, Florida manufacturing facility.

2014 Outlook

For the first quarter, the Company expects revenue to increase by about 10 percent over the first quarter of 2013. Due to an unfavorable sales mix and higher corporate expense in the quarter, diluted earnings per share from continuing operations is expected to be slightly above breakeven, compared to $0.14 in the first quarter of 2013. This estimate excludes restructuring charges the Company plans to incur in the first quarter.

For the full year, the Company anticipates a revenue growth in the mid-single digit range. The Company expects total segment operating margin in 2014 to remain flat relative to 2013, excluding benefits from operational excellence and restructuring initiatives. While these initiatives will impact 2014 earnings, the actions are expected to drive future margin expansion and significant earnings growth.

Fourth Quarter and Full Year 2013 Earnings Conference Call

A conference call is scheduled for 10:00 a.m. EST on Wednesday, March 5, 2014 to discuss the fourth quarter results. Participants may access the conference call by dialing (866) 625-2980 or (706) 679-5175 and using conference ID 17034499, or through the Investor Relations link on JBT Corporation's website at http://ir.jbtcorporation.com. An online audio replay of the call will be available on the Company's Investor Relations website at approximately 1:30 p.m. EST on March 5, 2014.

JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to the food processing and air transportation industries. JBT Corporation 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 3,300 people worldwide and operates sales, service, manufacturing and sourcing operations located in over 25 countries. For more information, please visit 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 2012 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.


                                               JBT CORPORATION
                                               ---------------

                                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 -------------------------------------------

                             (Unaudited and in millions, except per share data)



                                     Three                          Twelve
                                     Months                         Months
                                     Ended                          Ended

                                      December                      December
                                         31,                         31,
                                     ---------                     ---------

                                           2013              2012                 2013    2012
                                           ----              ----                 ----    ----


    Revenue                              $288.1            $292.9               $934.2  $917.3

    Cost
     of
     sales                                218.8             218.2                701.3   686.5
                                          -----             -----                -----   -----


                  Gross
                   profit                  69.3              74.7                232.9   230.8


     Selling,
     general
     and
     administrative
     expense                               43.7              42.0                164.3   156.6

     Research
     and
     development
     expense                                3.4               3.8                 14.0    14.3

     Restructuring
     expense                                1.6               0.4                  1.6     0.1

    Other
     expense
     (income),
     net                                    0.4              (0.3)                (0.2)   (1.1)
                                            ---              ----                 ----    ----


                   Operating
                   income                  20.2              28.8                 53.2    60.9


    Net
     interest
     expense                                1.2               1.7                  5.4     6.9
                                            ---               ---                  ---     ---

     Income
     from
     continuing
     operations
     before
     income
     taxes                                 19.0              27.1                 47.8    54.0

     Provision
     for
     income
     taxes                                  5.3               8.1                 13.8    16.9
                                            ---               ---                 ----    ----

     Income
     from
     continuing
     operations                            13.7              19.0                 34.0    37.1

    Loss
     from
     discontinued
     operations,
     net
     of
     taxes                                  0.1               0.5                  0.9     0.9
                                            ---               ---                  ---     ---

                   Net
                   income                 $13.6             $18.5                $33.1   $36.2



    Basic
     earnings
     per
     share:

               Income
               from
               continuing
               operations                 $0.47             $0.65                $1.16   $1.27

              Loss
               from
               discontinued
               operations                     -             (0.01)               (0.03)  (0.03)
                                            ---             -----                -----   -----

               Net
               income                     $0.47             $0.64                $1.13   $1.24



     Diluted
     earnings
     per
     share:

               Income
               from
               continuing
               operations                 $0.46             $0.64                $1.15   $1.26

              Loss
               from
               discontinued
               operations                     -             (0.01)               (0.04)  (0.03)
                                            ---             -----                -----   -----

               Net
               income                     $0.46             $0.63                $1.11   $1.23



     Weighted
     average
     shares
     outstanding

              Basic                        29.3              29.1                 29.2    29.1
                                           ====              ====                 ====    ====

              Diluted                      29.8              29.6                 29.7    29.5
                                           ====              ====                 ====    ====


                              JBT CORPORATION
                              ---------------

                           BUSINESS SEGMENT DATA
                           ---------------------

                        (Unaudited and in millions)


                                        Three                  Twelve
                                      Months               Months
                                      Ended                Ended

                                      December            December
                                           31,                   31,
                                      ---------            ---------

                                        2013        2012      2013      2012
                                        ----        ----      ----      ----

    Revenue
    -------


    JBT FoodTech                      $187.8      $185.9    $611.0    $589.1

    JBT AeroTech                       100.8       106.2     323.4     325.4

    Other revenue (1) and
     intercompany eliminations          (0.5)        0.8      (0.2)      2.8
                                        ----         ---      ----       ---

    Total revenue                     $288.1      $292.9    $934.2    $917.3



    Income before income taxes
    --------------------------


    Segment operating profit
    ------------------------

    JBT FoodTech                       $21.5       $24.0     $64.5     $58.8

    JBT AeroTech                        12.8        12.5      26.6      28.7
                                        ----        ----      ----      ----

    Total segment operating
     profit                             34.3        36.5      91.1      87.5


    Corporate items
    ---------------

    Corporate expense (2)              (12.5)       (7.3)    (36.3)    (26.5)

    Restructuring expense               (1.6)       (0.4)     (1.6)     (0.1)

    Net interest expense                (1.2)       (1.7)     (5.4)     (6.9)
                                        ----        ----      ----      ----

    Total corporate items              (15.3)       (9.4)    (43.3)    (33.5)
                                       -----        ----     -----     -----


    Income from continuing
     operations before income
     taxes                             $19.0       $27.1     $47.8     $54.0

    (1) Other revenue is
     comprised of certain gains
     and losses related to
     foreign exchange exposure.


    (2) Corporate expense
     generally includes corporate
     staff costs, stock-based
     compensation, pension and
     other postretirement benefit
     expenses not related to
     service, LIFO adjustments,
     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                  Twelve
                                    Months                Months
                                    Ended                 Ended

                                      December
                                          31,             December 31,
                                      ---------          ------------

                                     2013           2012      2013       2012
                                     ----           ----      ----       ----

    Inbound Orders
    --------------


    JBT FoodTech                   $178.1         $162.8    $655.3     $630.1

    JBT AeroTech                    120.7           68.5     372.5      339.0

    Other and
     intercompany
     eliminations                    (0.5)           0.8      (0.2)       2.8
                                     ----            ---      ----        ---


    Total inbound
     orders                        $298.3         $232.1  $1,027.6     $971.9





                         December
                            31,
                        ---------

                             2013            2012
                             ----            ----

    Order Backlog
    -------------


    JBT FoodTech                   $213.7         $169.4

    JBT AeroTech            162.8           113.7
                            -----           -----


    Total order
     backlog                       $376.5         $283.1


                              JBT CORPORATION
                              ---------------

                   CONDENSED CONSOLIDATED BALANCE SHEETS
                   -------------------------------------

                        (Unaudited and In millions)



                                    December 31,             December 31,

                                                       2013                 2012
                                                       ----                 ----



    Cash and cash
     equivalents                                      $29.4                $99.0

    Trade receivables, net                            186.4                188.4

    Inventories                                       117.6                109.2

    Other current assets                               63.2                 54.5
                                                       ----                 ----

         Total current assets                         396.6                451.1


    Property, plant and
     equipment, net                                   132.7                126.2

    Other assets                                       91.9                100.7

    Total assets                                     $621.2               $678.0




    Short term debt and
     current portion of
     long-term debt                                    $6.3                 $2.0

    Accounts payable, trade
     and other                                         88.1                 88.7

    Advance payments and
     progress billings                                 88.3                 74.3

    Other current
     liabilities                                       94.9                 85.8
                                                       ----                 ----

         Total current
          liabilities                                 277.6                250.8


    Long-term debt, less
     current portion                                   94.1                189.1

    Accrued pension and
     other postretirement
     benefits, less current
     portion

                                            52.5                    104.6

    Other liabilities                                  42.6                 27.9


    Common stock and paid-
     in capital                                        68.0                 63.1

    Retained earnings                                 146.5                123.5

    Accumulated other
     comprehensive loss                               (60.1)               (81.0)

         Total stockholders'
          equity                                      154.4                105.6
                                                      -----                -----

    Total liabilities and
     stockholders' equity                            $621.2               $678.0


                       JBT CORPORATION
                       ---------------

      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
      -----------------------------------------------

                 (Unaudited and in millions)


                                           Twelve
                                          Months
                                          Ended

                                           December 31,
                                           ------------

                                             2013              2012
                                             ----              ----


    Cash Flows From Operating
     Activities:

         Income from continuing
          operations                        $34.0             $37.1


    Adjustments to reconcile income
     to cash provided by operating
     activities:

         Depreciation and amortization       25.0              23.6

         Other                               10.4              15.4


    Changes in operating assets and
     liabilities:

         Trade accounts receivable, net       0.8               2.3

         Inventories                         (9.6)             14.6

         Accounts payable, trade and
          other                              (1.9)              5.2

         Advance payments and progress
          billings                           14.1              15.8

         Other -assets and liabilities,
          net                                (9.7)            (27.4)
                                             ----             -----


    Cash provided by continuing
     operating activities                    63.1              86.6
                                             ----              ----


    Cash required by discontinued
     operating activities                    (1.1)             (0.6)


    Cash Flows From Investing
     Activities:

         Acquisitions                 -              (10.0)

         Capital expenditures               (29.2)            (24.7)

         Other                                1.1               2.1


    Cash required by continuing
     investing activities                   (28.1)            (32.6)
                                            -----             -----


    Cash Flows From Financing
     Activities:

         Net (payments) proceeds on
          credit facilities                 (89.5)             51.2

         Dividends paid                     (10.1)             (8.5)

         Purchase of stock held in
          treasury                           (0.2)             (3.6)

         Other                               (1.8)             (3.0)
                                             ----              ----


    Cash (required) provided by
     financing activities                  (101.6)             36.1
                                           ------              ----


    Effect of foreign exchange rate
     changes on cash and cash
     equivalents                             (1.9)              0.5
                                             ----               ---


    (Decrease) increase in cash and
     cash equivalents                       (69.6)             90.0


    Cash and cash equivalents,
     beginning of period                     99.0               9.0
                                             ----               ---


    Cash and cash equivalents, end
     of period                              $29.4             $99.0

SOURCE JBT Corporation