Previous FY 2023 Guidance Bridge Removing Prior AeroTech Guidance | |||||||||||||||||
$ millions except EPS | Previous Total JBT Guidance | Previous AeroTech Guidance | Implied Continuing Operations | ||||||||||||||
Revenue | $2,315 - $2,385 | ($645 - $655) | $1,670 - $1,730 | ||||||||||||||
Net income | $145 - $161 | ($56 - $59) | $89 - $102 | ||||||||||||||
Adjusted EBITDA | $330 - $360 | ($77 - $82) | $253 - $278 | ||||||||||||||
GAAP EPS | $4.50 - $5.00 | ($1.75 - $1.85) | $2.75 - $3.15 | ||||||||||||||
Adjusted EPS | $5.00 - $5.50 | ($1.75 - $1.85) | $3.25 - $3.65 | ||||||||||||||
As Reported YTD | Guidance | ||||||||||||||||
$ millions except EPS | June 30, 2023 | Q3 2023 | FY 2023 | ||||||||||||||
Revenue | $816 | $410 - $425 | $1,670 - $1,720 | ||||||||||||||
Income from continuing operations | $44 | $21 - $26 | $104 - $112 | ||||||||||||||
Adjusted EBITDA(1) | $126 | $63 - $68 | $263 - $278 | ||||||||||||||
GAAP EPS | $1.37 | $0.65 - $0.80 | $3.25 - $3.50 | ||||||||||||||
Adjusted EPS(1) | $1.57 | $0.90 - $1.05 | $3.80 - $4.05 | ||||||||||||||
(1) Non-GAAP figure. Please see supplemental schedules for adjustments and reconciliations. | |||||||||||||||||
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, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | 427.7 | $ | 394.0 | $ | 816.2 | $ | 750.3 | |||||||||||||||
Cost of sales | 281.4 | 265.3 | 537.9 | 501.8 | |||||||||||||||||||
Gross profit | 146.3 | 128.7 | 278.3 | 248.5 | |||||||||||||||||||
Gross profit % | 34.2% | 32.7% | 34.1% | 33.1% | |||||||||||||||||||
Selling, general and administrative expense | 100.4 | 95.9 | 204.1 | 192.1 | |||||||||||||||||||
Restructuring expense | 2.5 | 0.8 | 3.3 | 1.4 | |||||||||||||||||||
Operating income | 43.4 | 32.0 | 70.9 | 55.0 | |||||||||||||||||||
Operating income % | 10.1% | 8.1% | 8.7% | 7.3% | |||||||||||||||||||
Pension expense, other than service cost | 0.2 | — | 0.4 | — | |||||||||||||||||||
Interest expense, net | 7.1 | 2.1 | 13.6 | 3.9 | |||||||||||||||||||
Income from continuing operations before income taxes | 36.1 | 29.9 | 56.9 | 51.1 | |||||||||||||||||||
Income tax provision | 8.4 | 4.2 | 12.8 | 5.5 | |||||||||||||||||||
Income from continuing operations | 27.7 | 25.7 | 44.1 | 45.6 | |||||||||||||||||||
Income from discontinued operations, net of taxes | 3.3 | 7.7 | 12.5 | 13.4 | |||||||||||||||||||
Net income | $ | 31.0 | $ | 33.4 | $ | 56.6 | $ | 59.0 | |||||||||||||||
Basic earnings per share from: | |||||||||||||||||||||||
Continuing operations | $ | 0.87 | $ | 0.81 | $ | 1.38 | $ | 1.42 | |||||||||||||||
Discontinued operations | 0.10 | 0.24 | 0.39 | 0.42 | |||||||||||||||||||
Net income | $ | 0.97 | $ | 1.05 | $ | 1.77 | $ | 1.84 | |||||||||||||||
Diluted earnings per share from net income from: | |||||||||||||||||||||||
Continuing operations | $ | 0.87 | $ | 0.80 | $ | 1.37 | $ | 1.42 | |||||||||||||||
Discontinued operations | 0.10 | 0.24 | 0.39 | 0.42 | |||||||||||||||||||
Net income | $ | 0.97 | $ | 1.04 | $ | 1.76 | $ | 1.84 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 32.0 | 32.0 | 32.0 | 32.0 | |||||||||||||||||||
Diluted | 32.1 | 32.1 | 32.1 | 32.1 | |||||||||||||||||||
Other business information from continuing operations: | |||||||||||||||||||||||
Inbound orders | $ | 445.4 | $ | 395.6 | $ | 851.3 | $ | 807.4 | |||||||||||||||
Orders backlog | $ | 697.4 | $ | 670.4 |
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, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Income from continuing operations | $ | 27.7 | $ | 25.7 | $ | 44.1 | $ | 45.6 | |||||||||||||||
Non-GAAP adjustments | |||||||||||||||||||||||
Restructuring related costs(1) | 2.5 | 0.8 | 3.3 | 1.6 | |||||||||||||||||||
M&A related costs(2) | 1.1 | 1.9 | 3.6 | 4.5 | |||||||||||||||||||
LIFO expense | 0.9 | 0.5 | 1.8 | 0.6 | |||||||||||||||||||
Impact on tax provision from Non-GAAP adjustments(3) | (1.2) | (0.9) | (2.3) | (2.0) | |||||||||||||||||||
Adjusted income from continuing operations | $ | 31.0 | $ | 28.0 | $ | 50.5 | $ | 50.3 | |||||||||||||||
Income from continuing operations | $ | 27.7 | $ | 25.7 | $ | 44.1 | $ | 45.6 | |||||||||||||||
Total shares and dilutive securities | 32.1 | 32.1 | 32.1 | 32.1 | |||||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.87 | $ | 0.80 | $ | 1.37 | $ | 1.42 | |||||||||||||||
Adjusted income from continuing operations | $ | 31.0 | $ | 28.0 | $ | 50.5 | $ | 50.3 | |||||||||||||||
Total shares and dilutive securities | 32.1 | 32.1 | 32.1 | 32.1 | |||||||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 0.97 | $ | 0.87 | $ | 1.57 | $ | 1.57 | |||||||||||||||
(1) Includes restructuring expense as well as any charges reported in cost of products for restructuring related inventory write-offs. | |||||||||||||||||||||||
(2) 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. | |||||||||||||||||||||||
(3) Impact on tax provision was calculated using the enacted rate for the relevant jurisdiction for each quarter shown. | |||||||||||||||||||||||
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 INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
(Unaudited and in millions) | |||||||||||||||||||||||||||||||||||
Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||
Income from continuing operations | $ | 27.7 | $ | 16.4 | $ | 29.7 | $ | 25.7 | $ | 25.7 | $ | 19.9 | |||||||||||||||||||||||
Income tax provision | 8.4 | 4.4 | 4.0 | 5.8 | 4.2 | 1.3 | |||||||||||||||||||||||||||||
Interest expense, net | 7.1 | 6.5 | 5.5 | 3.2 | 2.1 | 1.8 | |||||||||||||||||||||||||||||
Depreciation and amortization | 23.5 | 22.7 | 20.8 | 18.8 | 18.0 | 18.6 | |||||||||||||||||||||||||||||
EBITDA from continuing operations | 66.7 | 50.0 | 60.0 | 53.5 | 50.0 | 41.6 | |||||||||||||||||||||||||||||
Restructuring related costs(1) | 2.5 | 0.8 | 4.2 | 1.5 | 0.8 | 0.8 | |||||||||||||||||||||||||||||
Pension expense, other than service cost | 0.2 | 0.2 | (0.1) | 0.1 | — | — | |||||||||||||||||||||||||||||
M&A related costs(2) | 1.1 | 2.5 | 2.7 | 4.4 | 1.9 | 2.6 | |||||||||||||||||||||||||||||
LIFO expense | 0.9 | 0.9 | 1.9 | 1.1 | 0.5 | 0.1 | |||||||||||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 71.4 | $ | 54.4 | $ | 68.7 | $ | 60.6 | $ | 53.2 | $ | 45.1 | |||||||||||||||||||||||
Total revenue | $ | 427.7 | $ | 388.5 | $ | 441.2 | $ | 398.8 | $ | 394.0 | $ | 356.3 | |||||||||||||||||||||||
Adjusted EBITDA % | 16.7% | 14.0% | 15.6% | 15.2% | 13.5% | 12.7% | |||||||||||||||||||||||||||||
(1) Includes restructuring expense as well as any charges reported in cost of products for restructuring related inventory write-offs. | |||||||||||||||||||||||||||||||||||
(2) 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 that adjusted EBITDA is useful to investors as a measure of the Company’s operational performance and a way to evaluate and compare operating performance against peers in the Company's industry. |
JBT CORPORATION | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited and in millions) | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 42.8 | $ | 71.7 | |||||||
Trade receivables, net of allowances | 279.6 | 265.6 | |||||||||
Inventories | 237.2 | 239.8 | |||||||||
Other current assets | 77.5 | 75.8 | |||||||||
Current assets held for sale | 249.7 | 216.1 | |||||||||
Total current assets | 886.8 | 869.0 | |||||||||
Property, plant and equipment, net | 246.6 | 245.4 | |||||||||
Other assets | 1,369.0 | 1,383.3 | |||||||||
Non-current assets held for sale | 85.4 | 85.8 | |||||||||
Total assets | $ | 2,587.8 | $ | 2,583.5 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Short-term debt | $ | 0.9 | $ | 0.6 | |||||||
Accounts payable, trade and other | 137.4 | 170.6 | |||||||||
Advance and progress payments | 192.1 | 173.7 | |||||||||
Other current liabilities | 149.9 | 157.8 | |||||||||
Current liabilities held for sale | 129.7 | 117.8 | |||||||||
Total current liabilities | 610.0 | 620.5 | |||||||||
Long-term debt, less current portion | 949.6 | 977.3 | |||||||||
Accrued pension and other post-retirement benefits, less current portion | 28.7 | 32.0 | |||||||||
Other liabilities | 65.9 | 79.9 | |||||||||
Non-current liabilities held for sale | 12.4 | 11.1 | |||||||||
Common stock and additional paid-in capital | 219.4 | 215.7 | |||||||||
Retained earnings | 901.5 | 851.3 | |||||||||
Accumulated other comprehensive loss | (199.7) | (204.3) | |||||||||
Total stockholders' equity | 921.2 | 862.7 | |||||||||
Total liabilities and stockholders' equity | $ | 2,587.8 | $ | 2,583.5 | |||||||
JBT CORPORATION | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Unaudited and in millions) | |||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from continuing operating activities | |||||||||||
Income from continuing operations | $ | 44.1 | $ | 45.6 | |||||||
Adjustments to reconcile income to cash provided by operating activities | |||||||||||
Depreciation and amortization | 46.2 | 36.6 | |||||||||
Stock-based compensation | 4.6 | 4.0 | |||||||||
Other | 6.6 | 3.5 | |||||||||
Changes in operating assets and liabilities | |||||||||||
Trade accounts receivable, net | (15.5) | (10.8) | |||||||||
Inventories | 0.1 | (47.8) | |||||||||
Accounts payable, trade and other | (29.0) | 21.9 | |||||||||
Advance and progress payments | 20.8 | 29.5 | |||||||||
Other - assets and liabilities, net | (15.3) | (7.5) | |||||||||
Cash provided by continuing operating activities | 62.6 | 75.0 | |||||||||
Cash flows from continuing investing activities | |||||||||||
Acquisitions, net of cash acquired | (0.1) | (0.4) | |||||||||
Capital expenditures | (35.3) | (42.7) | |||||||||
Other | 0.5 | 0.6 | |||||||||
Cash required by continuing investing activities | (34.9) | (42.5) | |||||||||
Cash flows from continuing financing activities | |||||||||||
Net payments for domestic credit facilities | (32.8) | 0.9 | |||||||||
Dividends | (6.4) | (6.7) | |||||||||
Other | (1.6) | (3.5) | |||||||||
Cash required by continuing financing activities | (40.8) | (9.3) | |||||||||
Net (decrease) increase in cash and cash equivalents from continuing operations | (13.1) | 23.2 | |||||||||
Net cash required by discontinued operations | (14.7) | (31.9) | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (0.6) | (2.0) | |||||||||
Net decrease in cash and cash equivalents | (28.4) | (10.7) | |||||||||
Cash and cash equivalents from continuing operations, beginning of period | 71.7 | 76.9 | |||||||||
Add: Cash and cash equivalents from discontinued operations, beginning of period | 1.4 | 1.9 | |||||||||
Add: Net decrease in cash and cash equivalents | (28.4) | (10.7) | |||||||||
Less: Cash and cash equivalents from discontinued operations, end of period | (1.9) | (1.5) | |||||||||
Cash and cash equivalents from continuing operations, end of period | $ | 42.8 | $ | 66.6 | |||||||
JBT CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||
FREE CASH FLOW | |||||||||||
(Unaudited and in millions) | |||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash provided by continuing operating activities | $ | 62.6 | $ | 75.0 | |||||||
Less: capital expenditures | 35.3 | 42.7 | |||||||||
Plus: proceeds from disposal of assets | 0.5 | 0.6 | |||||||||
Plus: pension contributions | 1.5 | 2.7 | |||||||||
Free cash flow (FCF) | $ | 29.3 | $ | 35.6 | |||||||
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 be 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) | |||||||||||||||||||||||||||||
As of Quarter Ended | Change From | ||||||||||||||||||||||||||||
Q2 2023 | Q4 2022 | Q2 2022 | Prior Year-End | Prior Year | |||||||||||||||||||||||||
Total debt | $ | 950.5 | $ | 977.9 | $ | 674.6 | $ | (27.4) | $ | 275.9 | |||||||||||||||||||
Cash and cash equivalents(1) | (44.7) | (73.1) | (68.1) | 28.4 | 23.4 | ||||||||||||||||||||||||
Net debt | $ | 905.8 | $ | 904.8 | $ | 606.5 | $ | 1.0 | $ | 299.3 | |||||||||||||||||||
JBT CORPORATION | |||||
BANK TOTAL NET LEVERAGE RATIO CALCULATION | |||||
(Unaudited and in millions) | |||||
Q2 2023 | |||||
Total debt | $ | 950.5 | |||
Cash and cash equivalents(1) | (44.7) | ||||
Net debt | 905.8 | ||||
Other items considered debt under the credit agreement | 17.7 | ||||
Consolidated total indebtedness(2) | $ | 923.5 | |||
Trailing twelve months Adjusted EBITDA from continuing operations | $ | 255.1 | |||
Trailing twelve months Adjusted EBITDA from discontinued operations | 62.8 | ||||
Pro forma EBITDA of recent acquisitions(3) | 3.1 | ||||
Trailing twelve months pro forma Adjusted EBITDA | 321.0 | ||||
Other adjustments net to earnings under the credit agreement | (5.4) | ||||
Consolidated EBITDA(2) | $ | 315.6 | |||
Bank total net leverage ratio (Consolidated Total Indebtedness / Consolidated EBITDA) | 2.9 | ||||
Total net debt to trailing twelve months pro forma Adjusted EBITDA | 2.8 | ||||
(1) Cash and cash equivalents includes cash amounts reported in assets held for sale. | |||||
(2) As defined in the credit agreement. | |||||
(3) Pro forma EBITDA related to the acquisitions in the prior twelve months. |
JBT CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||
RECONCILIATION OF DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | |||||||||||
TO ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE | |||||||||||
(Unaudited and in cents) | |||||||||||
Guidance | Guidance | ||||||||||
Q3 2023 | Full Year 2023 | ||||||||||
Diluted earnings per share from continuing operations | $0.65 - $0.80 | $3.25 - $3.50 | |||||||||
Non-GAAP adjustments | |||||||||||
Restructuring related costs(1) | 0.23 | 0.37 | |||||||||
M&A related costs(2) | 0.06 | 0.22 | |||||||||
LIFO expense(3) | 0.03 | 0.11 | |||||||||
Impact on tax provision from Non-GAAP adjustments(4) | (0.07) | (0.15) | |||||||||
Adjusted diluted earnings per share from continuing operations | $0.90 - $1.05 | $3.80 - $4.05 | |||||||||
JBT CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA GUIDANCE | |||||||||||
(Unaudited and in millions) | |||||||||||
Guidance | Guidance | ||||||||||
Q3 2023 | Full Year 2023 | ||||||||||
Income from continuing operations | $21.0 - $26.0 | $104.0 - $112.0 | |||||||||
Income tax provision(4) | ~7.0 | 31.0 - 33.0 | |||||||||
Interest expense, net | ~2.0 | ~14.0 | |||||||||
Depreciation and amortization | ~23.0 | 90.0 - 95.0 | |||||||||
EBITDA from continuing operations | 53.0 - 58.0 | 239.0 - 254.0 | |||||||||
Restructuring related costs(1) | ~7.5 | ~12.0 | |||||||||
Pension expense, other than service cost | — | ~1.0 | |||||||||
M&A related costs(2) | ~1.5 | ~7.0 | |||||||||
LIFO expense(3) | ~1.0 | ~4.0 | |||||||||
Adjusted EBITDA from continuing operations | $63.0 - $68.0 | $263.0 - $278.0 | |||||||||
(1) Restructuring related costs is estimated to be approximately $7 - $8 million and $11 - $13 million for the third quarter and full year 2023, 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 $1.5 million and $7 million for the third quarter and full year 2023, respectively. The mid-point has been divided by our estimate of 32.1 million total shares and dilutive securities to derive earnings per share. | |||||||||||
(3) LIFO expense is estimated to be approximately $1 million and $4 million for the third quarter 2023 and full year 2023, 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. | |||||||||||
(4) Impact on tax provision was calculated using the Company's effective tax rate of approximately 22-23%. |