Record Fourth Quarter Highlights as a Pure-Play Food and
Beverage Business: (Results are from continuing operations with
comparisons to the prior year period)
- Income from continuing operations of $53 million and
earnings per share of $1.64 both increased 69 percent
- Adjusted EBITDA of $81 million increased 18 percent and
adjusted EBITDA margin of 18.2 percent increased 260 basis
points
- Adjusted earnings per share of $1.40 increased 24
percent
Record Full Year Highlights as a Pure-Play Food and Beverage
Business: (Results are from continuing operations with comparisons
to the prior year period)
- Income from continuing operations of $129 million and
earnings per share of $4.02 increased 25 percent and 24 percent,
respectively
- Adjusted EBITDA of $273 million increased 20 percent and
adjusted EBITDA margin of 16.4 percent increased 210 basis
points
- Adjusted earnings per share of $4.10 increased 12
percent
JBT Corporation (NYSE: JBT), a leading global
technology solutions provider to high-value segments of the food
& beverage industry, today reported results for the fourth
quarter and full year 2023.
"JBT delivered solid year-over-year earnings growth and
continued margin expansion in 2023," said Brian Deck, President and
Chief Executive Officer. "Moreover, we made continued progress on
our Elevate 2.0 strategy by becoming a pure-play food and beverage
technology solutions provider, advancing the adoption of our
digital solutions, and growing recurring revenue."
Comparisons in this news release are to the comparable period of
the prior year, unless otherwise noted. An earnings presentation
with supplemental information is also available on the Company's
Investor Relations website at
https://ir.jbtc.com/events-and-presentations/.
Fourth Quarter 2023 Results
"We are pleased with our financial performance, as fourth
quarter margins and earnings per share exceeded our guidance while
revenue met our expectations," said Matt Meister, Executive Vice
President and Chief Financial Officer. "Our margin improvement was
highlighted by strong operational performance and excellent
execution on our supply chain initiatives."
AeroTech's financial results were transitioned to discontinued
operations beginning in the second quarter of 2023, and prior
period financial results have been recast accordingly. The below
paragraphs reflect JBT's results from continuing operations.
During the fourth quarter of 2023, JBT elected to move to the
FIFO inventory method for all inventories historically on LIFO. As
a result, historical financial results have been recast. This
election change does not impact adjusted EBITDA or adjusted
earnings per share as JBT’s metrics already reflected a FIFO
accounting basis.
Fourth quarter 2023 revenue of $445 million increased 1 percent
year over year. Income from continuing operations of $53 million
increased 69 percent. Included in income from continuing operations
was an $11 million discrete benefit to the tax provision, resulting
from the sale of a subsidiary. Adjusted EBITDA of $81 million
increased 18 percent, and adjusted EBITDA margin of 18.2 percent
increased 260 basis points. JBT incurred approximately $2 million
of expense and realized approximately $4 million in savings related
to its ongoing restructuring program.
Diluted earnings per share (EPS) of $1.64 increased 69 percent,
and adjusted EPS of $1.40 increased 24 percent. The discrete
benefit to the tax provision was excluded from adjusted EPS.
Full Year 2023 Results
Full year 2023 revenue of $1,664 million increased 5 percent
year over year, which was primarily due to growth from
acquisitions. Income from continuing operations of $129 million
increased 25 percent. Adjusted EBITDA of $273 million increased 20
percent, and adjusted EBITDA margin of 16.4 percent increased 210
basis points. JBT incurred approximately $11 million of expense and
realized approximately $11 million in savings related to its
ongoing restructuring program.
Diluted EPS of $4.02 increased 24 percent, and adjusted EPS of
$4.10 increased 12 percent. Orders of $1,668 million increased 5
percent, and year-end backlog of $678 million increased 2
percent.
JBT generated full year 2023 operating cash flow from continuing
operations of $74 million and free cash flow of $167 million,
representing a free cash flow conversion of 129 percent. Free cash
flow excludes the income taxes related to the gain from the sale of
AeroTech as well as voluntary pension contributions. At year-end,
JBT's leverage ratio was 0.6x net debt to trailing twelve months
adjusted EBITDA.
2024 Outlook
"In 2024, we expect to deliver mid-single-digit organic top line
growth primarily through recurring revenue initiatives and a
strengthening demand environment for equipment, which includes
improvement in the North American poultry market in the back half
of the year," added Meister. "We also expect to capture continued
margin expansion through further advancement of our supply chain
and manufacturing efficiency initiatives as well as ongoing
benefits from our restructuring efforts."
The table below reflects JBT's guidance for full year 2024.
Since the preliminary outlook provided on January 19, 2024, JBT
updated income from continuing operations and GAAP EPS guidance to
reflect additional expected M&A related costs in the first half
of 2024. These M&A costs relate to the potential merger offer
for Marel hf (Marel) and do not impact adjusted EBITDA or adjusted
EPS guidance.
Guidance
$ millions except EPS
FY 2024
Revenue
$1,750 - $1,780
Income from continuing operations
$150 - $162
Adjusted EBITDA(1)
$295 - $310
Adjusted EBITDA margin
17.0 - 17.5%
GAAP EPS
$4.65 - $5.05
Adjusted EPS(1)
$5.05 - $5.45
(1) Non-GAAP figure. Please see
supplemental schedules for adjustments and reconciliations.
For the full year 2024, JBT expects net interest income of
approximately $4 million. Additionally, JBT expects to incur
approximately $1 million in restructuring costs and $15 million in
M&A related costs in the first half of 2024. The tax rate is
forecast to be 22 - 23 percent, which is prior to any discrete
items.
For the first quarter of 2024, JBT anticipates typical
seasonality in revenue and earnings. JBT expects a revenue split of
approximately 47 percent in the first half of 2024 with
approximately 53 percent in the second half of 2024 driven by
improvement in demand in the North American poultry market. JBT
also anticipates margin improvement during each sequential quarter
in 2024 as market conditions are expected to improve and strategic
sourcing actions flow through to the results.
Potential Merger with Marel
Consistent with JBT's strategy to deploy capital to strategic
mergers and acquisitions while maintaining financial flexibility,
the Company announced its intention to pursue a merger with Marel
on January 19, 2024.
A combination of JBT and Marel would bring together two renowned
companies with long histories and complementary product portfolios,
highly respected brands, and impressive technology. The combined
company's enhanced operating scale, expanded global reach, and
scalable innovation are expected to create beneficial outcomes for
customers while also providing meaningful shareholder value
creation.
The combined company would maintain a long-term commitment to
Marel’s heritage, including a significant Icelandic presence. The
combined company shares would have a secondary listing on Nasdaq
Iceland, subject to Icelandic regulatory approval, in addition to
continuing JBT’s listing on the NYSE.
JBT anticipates the launch of the tender offer for Marel at an
offer price of €3.60. The offer will include terms that are
expected to achieve a weighted average mix consideration of 65
percent in JBT shares and 35 percent in cash. The stock portion of
the offer is expected to be set at a fixed exchange ratio using a
JBT share price of $96.25. Additionally, JBT's offer contemplates
the assumption of Marel's outstanding debt obligations. Launch of
the offer will most likely occur in the second quarter of 2024 and
remains subject to confirmatory due diligence, mutual agreement on
non-price deal terms, and board approvals of both Marel and
JBT.
Fourth Quarter and Full Year 2023 Earnings Conference
Call
A conference call is scheduled for 10:00 a.m. ET on Wednesday,
February 21, 2024, to discuss fourth quarter and full year 2023
results. Participants may access the conference call through online
registration at https://registrations.events/direct/Q4I767667. A
simultaneous webcast and audio replay of the call will be available
on the Company’s Investor Relations website at
https://ir.jbtc.com/events-and-presentations/.
JBT Corporation (NYSE: JBT) is a leading global technology
solutions provider to high-value segments of the food &
beverage industry. JBT designs, produces and services sophisticated
products and systems for a broad range of end markets, generating
roughly one-half of its annual revenue from recurring parts,
service, rebuilds, and leasing operations. JBT employs
approximately 5,100 people worldwide and operates sales, service,
manufacturing and sourcing operations in more than 25 countries.
For more information, please visit www.jbtc.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
JBT’s ability to control. These forward-looking statements include,
among others, statements relating to our business and our results
of operations, a potential transaction with Marel, our strategic
plans, our restructuring plans and expected cost savings from those
plans, and our liquidity. The factors that could cause our actual
results to differ materially from expectations include but are not
limited to the following factors: the completion of confirmatory
due diligence by us prior to launching the offer for Marel shares
(the offer); the occurrence of any event, change or other
circumstances that could give rise to the termination or
abandonment of the offer; the expected timing and likelihood of
completion of the proposed transaction with Marel, including the
timing, receipt and terms and conditions of any required
governmental and regulatory approvals of the offer that could
reduce anticipated benefits or cause the parties to abandon the
transaction; the ability to successfully integrate the businesses
of JBT and Marel; the possibility that our stockholders may not
approve the issuance of new shares of common stock in the offer;
the risk that Marel and/or JBT may not be able to satisfy the
conditions to the proposed offer in a timely manner or at all; the
risk that the proposed offer and its announcement could have an
adverse effect on the ability of JBT and Marel to retain customers
and retain and hire key personnel and maintain relationships with
their suppliers and customers and on their operating results and
businesses generally; the risk that problems may arise in
successfully integrating the businesses of Marel and JBT, which may
result in the combined company not operating as effectively and
efficiently as expected; the risk that the combined company may be
unable to achieve cost-cutting synergies or it may take longer than
expected to achieve those synergies; fluctuations in our financial
results; unanticipated delays or acceleration in our sales cycles;
deterioration of economic conditions, including impacts from supply
chain delays and reduced material or component availability;
inflationary pressures, including increases in energy, raw
material, freight, and labor costs; disruptions in the political,
regulatory, economic and social conditions of the countries in
which we conduct business; changes to trade regulation, quotas,
duties or tariffs; fluctuations in currency exchange rates; changes
in food consumption patterns; impacts of pandemic illnesses, food
borne illnesses and diseases to various agricultural products;
weather conditions and natural disasters; impact of climate change
and environmental protection initiatives; acts of terrorism or war,
including the ongoing conflicts in Ukraine and the Middle East;
termination or loss of major customer contracts and risks
associated with fixed-price contracts, particularly during periods
of high inflation; customer sourcing initiatives; competition and
innovation in our industries; difficulty in implementing our pure
play food and beverage strategy, including our ability to execute
on strategic investments, merger or acquisition opportunities; our
ability to develop and introduce new or enhanced products and
services and keep pace with technological developments; difficulty
in developing, preserving and protecting our intellectual property
or defending claims of infringement; catastrophic loss at any of
our facilities and business continuity of our information systems;
cyber-security risks such as network intrusion or ransomware
schemes; loss of key management and other personnel; potential
liability arising out of the installation or use of our systems;
our ability to comply with U.S. and international laws governing
our operations and industries; increases in tax liabilities; work
stoppages; fluctuations in interest rates and returns on pension
assets; a systemic failure of the banking system in the United
States or globally impacting our customers' financial condition and
their demand for our goods and services; availability of and access
to financial and other resources; and other factors described under
the captions “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in JBT’s
most recent Annual Report on Form 10-K filed with the Securities
and Exchange Commission and in any subsequently filed Form 10-Q.
JBT cautions shareholders and prospective investors that actual
results may differ materially from those indicated by the
forward-looking statements. JBT undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future developments, subsequent
events or changes in circumstances or otherwise.
JBT provides non-GAAP financial measures in order to increase
transparency in our operating results and trends. These non-GAAP
measures eliminate certain costs or benefits from, or change the
calculation of, a measure as calculated under U.S. GAAP. By
eliminating these items, JBT provides a more meaningful comparison
of our ongoing operating results, consistent with how management
evaluates performance. Management uses these non-GAAP measures in
financial and operational evaluation, planning and forecasting.
These calculations may differ from similarly-titled measures
used by other companies. The non-GAAP financial measures disclosed
are not intended to be used as a substitute for, nor should they be
considered in isolation of, financial measures prepared in
accordance with U.S. GAAP.
Important Notices
This release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. In particular, this
release is not an offer of securities for sale in the United
States.
Note to U.S. Shareholders
It is important that U.S. shareholders understand that the offer
to Marel shareholders and any related offer documents are subject
to disclosure and takeover laws and regulations in Iceland that may
be different from the United States. To the extent applicable, the
offer to Marel shareholders will be made in compliance with the
U.S. tender offer rules, including Regulation 14E under the U.S.
Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and any exemption available to JBT in respect of securities of
foreign private issuers provided by Rule 14d-1(d) under the
Exchange Act.
Important Additional Information
No offer of JBT securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act or an exemption from registration. In connection with the
offer, JBT is expected to file a proxy statement with the SEC and
JBT may, upon launch of the formal offer, file with the SEC a
Registration Statement on Form S-4, which will contain a proxy
statement/prospectus in connection with the proposed offer.
SHAREHOLDERS OF JBT AND MAREL ARE URGED TO READ THE PROXY STATEMENT
(AND, IF APPLICABLE, PROSPECTUS) AND OTHER DOCUMENTS THAT WILL BE
FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. JBT and
Marel shareholders will be able to obtain a free copy of the proxy
statement/prospectus (when available), as well as other filings
containing information about JBT, without charge, at the SEC’s
website, www.sec.gov, and on JBT’s website at
https://ir.jbtc.com/overview/default.aspx.
Participants in the Solicitation
JBT and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the holders of the
JBT’s common stock in respect of the offer to Marel shareholders.
Information about the directors and executive officers of JBT is
set forth in the proxy statement for JBT’s 2023 Annual Meeting of
Stockholders, which was filed with the SEC on March 31, 2023, and
in the other documents filed after the date thereof by JBT with the
SEC. Investors may obtain additional information regarding the
interests of such participants by reading the proxy
statement/prospectus regarding the proposed offer when it becomes
available. You may obtain free copies of these documents as
described in the preceding paragraph.
JBT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited and in millions,
except per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Revenue
$
444.6
$
441.2
$
1,664.4
$
1,590.3
Cost of sales
283.8
297.5
1,078.7
1,060.9
Gross profit
160.8
143.7
585.7
529.4
Gross profit %
36.2
%
32.6
%
35.2
%
33.3
%
Selling, general and administrative
expense
104.0
98.4
409.6
389.7
Restructuring expense
1.7
4.2
11.4
7.1
Operating income
55.1
41.1
164.7
132.6
Operating income %
12.4
%
9.3
%
9.9
%
8.3
%
Pension expense (income), other than
service cost
0.1
(0.1
)
0.7
—
Interest (income) expense, net
(3.6
)
5.5
10.9
12.6
Income from continuing operations before
income taxes
58.6
35.7
153.1
120.0
Income tax provision
5.7
4.5
23.5
16.2
Equity in net earnings of unconsolidated
affiliate
(0.2
)
—
(0.3
)
—
Income from continuing operations
52.7
31.2
129.3
103.8
Income from discontinued operations, net
of taxes
28.4
9.8
453.3
33.6
Net income
$
81.1
$
41.0
$
582.6
$
137.4
Basic earnings per share from:
Continuing operations
$
1.65
$
0.97
$
4.04
$
3.24
Discontinued operations
0.89
0.31
14.17
1.05
Net income
$
2.54
$
1.28
$
18.21
$
4.29
Diluted earnings per share from net income
from:
Continuing operations
$
1.64
$
0.97
$
4.02
$
3.23
Discontinued operations
0.88
0.31
14.11
1.05
Net income
$
2.52
$
1.28
$
18.13
$
4.28
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
$
418.1
$
431.5
$
1,667.5
$
1,587.4
Orders backlog
$
678.2
$
664.4
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
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Income from continuing operations
$
52.7
$
31.2
$
129.3
$
103.8
Non-GAAP adjustments
Restructuring related costs(1)
1.7
4.2
11.4
7.3
M&A related costs(2)
2.4
2.7
6.0
11.6
Impact on tax provision from
Non-GAAP adjustments(3)
(1.1
)
(1.7
)
(4.5
)
(4.8
)
Impact on tax provision from tax
basis write-off
(10.7
)
—
(10.7
)
—
Adjusted income from continuing
operations
$
45.0
$
36.4
$
131.5
$
117.9
Income from continuing operations
$
52.7
$
31.2
$
129.3
$
103.8
Total shares and dilutive securities
32.1
32.1
32.1
32.1
Diluted earnings per share from continuing
operations
$
1.64
$
0.97
$
4.02
$
3.23
Adjusted income from continuing
operations
$
45.0
$
36.4
$
131.5
$
117.9
Total shares and dilutive securities
32.1
32.1
32.1
32.1
Adjusted diluted earnings per share from
continuing operations
$
1.40
$
1.13
$
4.10
$
3.67
(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, 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
period 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)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Income from continuing operations
$
52.7
$
31.2
$
129.3
$
103.8
Income tax provision
5.7
4.5
23.5
16.2
Interest (income) expense, net
(3.6
)
5.5
10.9
12.6
Depreciation and amortization
22.0
20.8
91.3
76.2
EBITDA from continuing operations
76.8
62.0
255.0
208.8
Restructuring related costs(1)
1.7
4.2
11.4
7.3
Pension expense (income) , other than
service cost
0.1
(0.1
)
0.7
—
M&A related costs(2)
2.4
2.7
6.0
11.6
Adjusted EBITDA from continuing
operations
$
81.0
$
68.8
$
273.1
$
227.7
Total revenue
$
444.6
$
441.2
$
1,664.4
$
1,590.3
Adjusted EBITDA %
18.2
%
15.6
%
16.4
%
14.3
%
(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, 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)
December 31,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
483.3
$
71.7
Trade receivables, net of allowances
288.9
265.6
Inventories
238.9
264.0
Other current assets
89.1
75.7
Current assets of discontinued
operations
—
249.5
Total current assets
1,100.2
926.5
Property, plant and equipment, net
248.0
245.4
Other assets
1,362.2
1,383.3
Non-current assets of discontinued
operations
—
85.8
Total assets
$
2,710.4
$
2,641.0
Liabilities and Stockholders'
Equity
Short-term debt
$
—
$
0.6
Accounts payable, trade and other
134.6
170.6
Advance and progress payments
172.0
173.7
Other current liabilities
177.8
161.3
Current liabilities of discontinued
operations
—
117.8
Total current liabilities
484.4
624.0
Long-term debt, less current portion
646.4
977.3
Accrued pension and other post-retirement
benefits, less current portion
24.6
32.0
Other liabilities
66.1
91.2
Non-current liabilities of discontinued
operations
—
11.1
Common stock and additional paid-in
capital
221.1
215.7
Retained earnings
1,463.6
894.0
Accumulated other comprehensive loss
(195.8
)
(204.3
)
Total stockholders' equity
1,488.9
905.4
Total liabilities and stockholders'
equity
$
2,710.4
$
2,641.0
JBT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited and in
millions)
Twelve Months Ended
December 31,
2023
2022
Cash flows from continuing operating
activities
Net income
$
582.6
$
137.4
Less: Income from discontinued operations,
net of taxes
453.3
33.6
Income from continuing operations
129.3
103.8
Adjustments to reconcile income to cash
provided by operating activities
Depreciation and amortization
91.3
76.2
Stock-based compensation
11.4
8.9
Other
(13.2
)
(8.9
)
Changes in operating assets and
liabilities
Trade accounts receivable, net
(21.6
)
(28.2
)
Inventories
26.9
(47.3
)
Accounts payable, trade and other
(32.1
)
29.1
Advance and progress payments
(1.6
)
(7.6
)
Income taxes on gain from sale of
AeroTech
(133.2
)
—
Other - assets and liabilities, net
17.0
9.2
Cash provided by continuing operating
activities
74.2
135.2
Cash flows from continuing investing
activities
Proceeds from sale of AeroTech, net
792.8
—
Acquisitions, net of cash acquired
(0.1
)
(329.7
)
Capital expenditures
(55.1
)
(84.6
)
Purchase of Marketable Securities
(125.0
)
—
Proceeds from sale of marketable
securities
125.0
—
Other
(8.3
)
1.1
Cash provided by (required by) continuing
investing activities
729.3
(413.2
)
Cash flows from continuing financing
activities
Net payments for domestic credit
facilities
(340.3
)
292.7
Proceeds from settlement of cross currency
swaps
5.8
—
Dividends
(12.8
)
(13.1
)
Other
(6.8
)
(9.0
)
Cash (required by) provided by continuing
financing activities
(354.1
)
270.6
Net increase (decrease) in cash and cash
equivalents from continuing operations
449.4
(7.4
)
Net cash required by discontinued
operations
(38.0
)
4.2
Effect of foreign exchange rate changes on
cash and cash equivalents
(1.2
)
(2.5
)
Net increase (decrease) in cash and cash
equivalents
410.2
(5.7
)
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 increase (decrease) in cash and
cash equivalents
410.2
(5.7
)
Less: Cash and cash equivalents from
discontinued operations, end of period
—
(1.4
)
Cash and cash equivalents from continuing
operations, end of period
$
483.3
$
71.7
JBT CORPORATION
NON-GAAP FINANCIAL
MEASURES
FREE CASH FLOW
(Unaudited and in
millions)
Twelve Months Ended
December 31,
2023
2022
Cash provided by continuing operating
activities
$
74.2
$
135.2
Less: capital expenditures
55.1
84.6
Plus: proceeds from disposal of assets
2.1
1.1
Plus: pension contributions
12.1
3.5
Plus: income taxes on gain from sale of
AeroTech
133.2
—
Free cash flow (FCF)
$
166.5
$
55.2
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. Additionally, we exclude the income
taxes on gain from sale of AeroTech as these represent one-time
taxes paid on the sale of a discontinued operation that are not
representative of taxes from operations.
JBT CORPORATION
NET DEBT CALCULATION
(Unaudited and in
millions)
As of Quarter Ended
Change From
Q4 2023
Q3 2023
Q4 2022
PQ
PY
Total debt
$
646.4
$
645.8
$
977.9
$
0.6
$
(331.5
)
Cash and marketable securities(1)
(483.3
)
(526.7
)
(71.7
)
43.4
(411.6
)
Net debt
$
163.1
$
119.1
$
906.2
$
44.0
$
(743.1
)
(1) For Q3 2023, this balance includes
Cash of $401.7 million and Marketable securities of $125.0
million.
JBT CORPORATION
BANK TOTAL NET LEVERAGE RATIO
CALCULATION
(Unaudited and in
millions)
Q4 2023
Total debt
$
646.4
Cash and marketable securities
(483.3
)
Net debt
163.1
Other items considered debt under the
credit agreement
17.1
Consolidated total indebtedness(1)
$
180.2
Trailing twelve months Adjusted EBITDA
from continuing operations
273.1
Other adjustments net to earnings under
the credit agreement
3.6
Consolidated EBITDA(1)
$
276.7
Bank total net leverage ratio
(Consolidated Total Indebtedness / Consolidated EBITDA)
0.7
Total net debt to trailing twelve months
Adjusted EBITDA from continuing operations
0.6
(1) As defined in the credit
agreement.
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
Full Year 2024
Diluted earnings per share from continuing
operations
$4.65 - $5.05
Non-GAAP adjustments
Restructuring related costs(1)
0.03
M&A related costs(2)
0.48
Impact on tax provision from Non-GAAP
adjustments(3)
(0.11)
Adjusted diluted earnings per share from
continuing operations
$5.05 - $5.45
JBT CORPORATION
NON-GAAP FINANCIAL
MEASURES
RECONCILIATION OF INCOME FROM
CONTINUING OPERATIONS TO ADJUSTED EBITDA GUIDANCE
(Unaudited and in
millions)
Guidance
Full Year 2024
Income from continuing operations
$150.0 - $162.0
Income tax provision(3)
43.0 - 46.0
Interest income, net
~ (4.0)
Depreciation and amortization
~ 90.0
EBITDA from continuing operations
279.0 - 294.0
Restructuring related costs(1)
~ 1.0
Pension expense (income), other than
service cost
—
M&A related costs(2)
~ 15.0
Adjusted EBITDA from continuing
operations
$295.0 - $310.0
(1) Restructuring related costs is
estimated to be approximately $1 million for the full year 2024.
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 $15 million for the full year 2024. 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 22 to
23%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220963004/en/
Investors & Media:
Kedric Meredith (312) 861-6034 kedric.meredith@jbtc.com
Marlee Spangler (312) 861-5789 marlee.spangler@jbtc.com
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