John Bean Technologies: Jbt Corporation Reports Strong Second Quarter 2014 Results
The following excerpt is from the company's SEC filing
Full-year 2014 adjusted diluted earnings per share guidance raised to $1.45 - $1.55 ($0.95 - $1.05 on a GAAP basis), compared to previous guidance of $1.35 - $1.50
CHICAGO, August 6, 2014—JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported results for the second quarter of 2014.
Revenue for the second quarter was $247.6 million, an increase of 9 percent from the prior-year quarter. Segment operating profit increased 21 percent, with higher operating margins at JBT FoodTech and a doubling of operat
ing margins at JBT AeroTech. Corporate expense in the quarter was $9.1 million, including $2.1 million in management succession and certain consulting costs. In addition, the Company recorded a $1.0 million restructuring charge. Diluted earnings from continuing operations was $0.38 per share in the second quarter of 2014 compared with $0.30 per share in the year-ago period. Excluding restructuring charges and management succession and consulting costs, adjusted diluted earnings per share from continuing operations was $0.45.
Second quarter inbound orders of $209.2 million declined 16% year over year, largely due to delays in several orders in both business segments. The Company expects to receive these orders in the back half of the year. Backlog of $401.0 million increased 14% over the prior year period.
“JBT’s business remains healthy and we posted another solid performance in the second quarter of 2014,” said Tom Giacomini, Chairman, President and Chief Executive Officer. “Moreover, we are implementing our Next Level strategy, establishing a culture that drives continuous improvement and growth of our businesses.”
On July 1, 2014, the Company acquired ICS Solutions, a worldwide leader in the engineering, installation, and servicing of high-capacity food preservation equipment. ICS’ large worldwide installed base provides a strong recurring revenue stream. Additionally, with ICS’ complementary product line, JBT now offers the most complete range of in-container sterilization solutions available to the beverage, dairy, and canning industries. “This acquisition furthers our Next Level strategy, which includes making value-creating acquisitions in Liquid Foods and building the profitable aftermarket parts and service business,” added Giacomini.
For the full year, the Company raised its projected adjusted diluted earnings per share to a range of $1.45 – $1.55, compared to the previous estimate of $1.35 - $1.50. The projections exclude restructuring costs of an estimated $12 - $13 million, an estimated $6.5 million in management succession costs, and about $2.5 million in pricing and strategy costs. On a GAAP basis, diluted earnings per share is expected to be in the range of $0.95 – $1.05.
The Company continues to anticipate revenue growth in the mid-single digit range for 2014. It now expects total segment operating margin to improve slightly relative to 2013. The Company expects full-year corporate expense to be greater than previously estimated due to setup costs associated with the Company’s U.S. back-office consolidation initiative and a higher level of M&A activity. Excluding management succession and consulting costs, corporate expense is projected to be closer to the upper end of the previously communicated range of $25 to $27 million for 2014. Anticipated savings of over $3 million from restructuring actions and an additional $3 million in benefits from operational excellence initiatives for the year will fund planned spending on the Company’s strategic initiatives.
A conference call is scheduled for 10:00 a.m. ET on Thursday, August 7, 2014 to discuss the second quarter results. Participants may access the conference call by dialing (877) 235-3250 or (706) 643-5005 and using conference ID 78020406, 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. ET on August 7, 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 3,400 people worldwide and operates sales, service, manufacturing and sourcing operations located in over 25 countries. For more information, please visit www.jbtcorporation.com.
The results for the three and six months ended June 30, 2014 and 2013 include several items that affect the comparability of our results. These include significant expenses that are not indicative of our on-going operations as detailed in the table below:
The above table contains non-GAAP financial measures, including adjusted income from continuing operations and adjusted diluted earnings per share. The non-GAAP measures exclude certain amounts for the purpose of determining adjusted income from continuing operations and adjusted diluted earnings per share. Adjusted income from continuing operations and adjusted diluted earnings per share are intended to provide an indication of our underlying operating results and to enhance investors’ overall understanding of our financial performance by eliminating the effects of certain items that are not comparable from one period to the next. In addition, this information is used as a basis for evaluating company performance and for the planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.
(2) Corporate expense 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 events not representative of segment operations.
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. John Bean Technologies Corporation next reports earnings on August 06, 2014.
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