Second Quarter Highlights: (Results are from continuing
operations with comparisons to the prior year period)
- Strong orders of $437 million, just below all-time
record
- Revenue of $402 million decreased 6 percent; expect full
year revenue growth of 3 - 5%
- Income from continuing operations of $31 million and
earnings per share of $0.95 increased 8 percent and 7 percent,
respectively
- Adjusted earnings per share of $1.05 increased 8
percent
- Formally issued voluntary takeover offer for the combination
with Marel hf. (Marel)
JBT Corporation (NYSE: JBT), a leading global
technology solutions provider to high-value segments of the food
& beverage industry, today reported results for the second
quarter of 2024.
"As expected, JBT's second quarter orders improved sequentially
driven primarily by an initial recovery in equipment demand from
North American poultry customers and continued strength in
warehouse automation," said Brian Deck, President and Chief
Executive Officer. "Our second quarter revenue fell short of our
expectations, much of which we expect will be recovered in the back
half of the year."
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/.
Second Quarter 2024 Results
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.
"Our second quarter results were impacted by a shortfall in
revenue, due in part to the performance of book and ship orders and
a temporary delay in progress on over time projects and aftermarket
parts orders from a system upgrade," said Matt Meister, Executive
Vice President and Chief Financial Officer. "With the system
implementation now stabilized and our expected strong backlog
conversion in the second half of the year, we are anticipating
double-digit year-over-year revenue growth in both the third and
fourth quarter."
Second quarter 2024 revenue of $402 million decreased 6 percent
year over year with a 1 percent unfavorable impact from foreign
exchange translation. Income from continuing operations of $31
million increased 8 percent. Included in income from continuing
operations was a $9 million net interest expense benefit and $9
million in discrete tax benefits.
Adjusted EBITDA of $64 million decreased 11 percent and adjusted
EBITDA margin of 15.8 percent declined 90 basis points as the
benefits from restructuring and supply chain initiatives were more
than offset by the impact of lower volume. Sequentially, revenue
and adjusted EBITDA improved 3 percent and 11 percent,
respectively.
During the second quarter of 2024, JBT realized approximately $3
million in restructuring savings and achieved cumulative annual
run-rate cost savings of approximately $17 million exiting the
quarter. Diluted earnings per share (EPS) of $0.95 increased 7
percent, and adjusted EPS of $1.05 increased 8 percent.
Second quarter 2024 backlog totaled $697 million, and orders
were $437 million. Orders improved 13 percent sequentially driven
by an increase in equipment demand from North American poultry
customers and fruit and vegetable processing, along with continued
strength in warehouse automation. North American poultry market
fundamentals are stabilizing and customer profitability continues
to strengthen, and as a result, JBT expects continued improvement
in equipment demand within this market in the second half of
2024.
JBT generated year to date operating cash flow from continuing
operations of $32 million and free cash flow of $14 million. JBT's
net leverage ratio was 0.6x net debt to trailing twelve months
adjusted EBITDA.
2024 Outlook
JBT updated its year-over-year revenue growth guidance to 3 to 5
percent, primarily reflecting year-to-date performance, which is
partially offset by additional warehouse automation growth in the
back half of 2024. As a result of the revenue update, the Company
narrowed its full year 2024 guidance for adjusted EBITDA and EPS.
The Company is maintaining its adjusted EBITDA margin forecast and
is expecting margins to improve sequentially in both the third and
fourth quarter of 2024.
For the full year 2024, JBT now expects to incur approximately
$40 million in pre-closing M&A costs related to the combination
with Marel. The Company updated its guidance for income from
continuing operations and GAAP EPS to reflect the estimate for
M&A costs.
Guidance
$ millions except EPS
FY 2024
Revenue
$1,715 - $1,750
Income from continuing operations
$137 - $146
Adjusted EBITDA(1)
$295 - $305
Adjusted EBITDA margin
17.0 - 17.5%
GAAP EPS
$4.25 - $4.55
Adjusted EPS(1)
$5.05 - $5.35
(1) Non-GAAP figure. Please see
supplemental schedules for adjustments and reconciliations.
Combination with Marel
On June 24, 2024, JBT formally issued the voluntary takeover
offer to acquire all issued and outstanding shares of Marel (ICL:
Marel). Subject to a proration feature, Marel shareholders will
have the option to elect to receive either all cash, all JBT common
stock, or a combination of cash and JBT common stock in respect of
each Marel share. This proration feature will result in an overall
consideration mix of approximately 65 percent stock and
approximately 35 percent cash. Marel shareholders will receive, in
the aggregate, €950 million in cash and hold approximately a 38
percent ownership interest in the combined company. The offer will
expire on September 2, 2024, unless such offer period is extended
in accordance with the terms of the definitive agreement between
JBT and Marel.
JBT and Marel continue to make meaningful progress on the
requirements to close the transaction and are beginning integration
planning to ensure alignment and day one readiness. The waiting
period for JBT and Marel’s filing under the U.S. Hart-Scott-Rodino
Act expired and work to obtain other required approvals under
competition and similar laws is in process. JBT and Marel have
submitted filing materials in all relevant jurisdictions and are
now engaging with regulators on follow up questions and requests.
On August 8, 2024, JBT will hold a special meeting of its
stockholders to, among other things, vote on a proposal to approve
the issuance of JBT common stock to Marel shareholders in
connection with the transaction. The Company is also actively
working on the secondary listing application for Nasdaq Iceland.
JBT continues to plan for a transaction close by year end 2024.
Second Quarter 2024 Earnings Conference Call
A conference call is scheduled for 11:00 a.m. ET on Wednesday,
July 31, 2024, to discuss second quarter 2024 results. Participants
may access the conference call through online registration at
https://registrations.events/direct/Q4I767664. 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 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 for the Offer that
could reduce anticipated benefits or cause the parties to abandon
the transaction; 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 Offer in a timely manner or at all; the risk that
the 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 that it may take longer than expected to
achieve those synergies; fluctuations in our financial results;
unanticipated delays or accelerations 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; the 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; 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; the risk factors discussed in our
proxy statement/prospectus filed pursuant to Rule 424(b) under the
Securities Act (File No. 333-279438) on June 25, 2024, forming part
of the Registration Statement on Form S-4, initially filed by us on
May 15, 2024 and declared effective on June 25, 2024; 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 (the "SEC")
and in any subsequently filed Quarterly Reports on 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 is not intended to and 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, Iceland, the Netherlands or Denmark.
Note to U.S. Shareholders
It is important that U.S. shareholders understand that the Offer
and any related offer documents are subject to disclosure and
takeover laws and regulations in Iceland and other European
jurisdictions, which may be different from those of the United
States. The Offer will be made in compliance with the U.S. tender
offer rules, including Regulation 14E under 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 of 1933, as amended, or an exemption from registration, and
applicable European regulations, including the Icelandic Prospectus
Act no. 14/2020 and the Icelandic Takeover Act no. 108/2007 on
takeovers. In connection with the Offer, JBT filed with the SEC a
registration statement on Form S-4 (No. 333-279438) (the
“Registration Statement”) that included a proxy
statement/prospectus (the “Proxy Statement/Prospectus”). The
Registration Statement was declared effective by the SEC on June
25, 2024, and JBT commenced the mailing of the Proxy
Statement/Prospectus to its stockholders on June 25, 2024.
Additionally, JBT filed with the Financial Supervisory Authority of
the Central Bank of Iceland (the “FSA”) an offer document and a
prospectus, which have been approved by the FSA and which have been
published.
SHAREHOLDERS OF JBT AND MAREL ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS, THE PROSPECTUS, AND THE OFFER DOCUMENT, AS
APPLICABLE, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE
DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC OR
THE FSA CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR
WILL CONTAIN IMPORTANT INFORMATION.
JBT and Marel shareholders may obtain a free copy of the Proxy
Statement/Prospectus, as well as other filings containing
information about JBT, without charge, at the SEC’s website at
www.sec.gov, and on JBT’s website at
https://ir.jbtc.com/overview/default.aspx. You may obtain a free
copy of the prospectus on the FSA’s website at www.fme.is and on
JBT’s website at https://www.jbtc.com/jbt-marel-offer-launch/ as
well as a free copy of the offer document.
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
JBT’s common stock in respect of the Offer. Information about the
directors and executive officers of JBT is set forth in the proxy
statement for JBT’s 2024 Annual Meeting of Stockholders, which was
filed with the SEC on March 28, 2024, 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 Offer. 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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue
$
402.3
$
427.7
$
794.6
$
816.2
Cost of sales
259.1
280.5
511.1
536.1
Gross profit
143.2
147.2
283.5
280.1
Gross profit %
35.6
%
34.4
%
35.7
%
34.3
%
Selling, general and administrative
expense
116.2
100.4
226.3
204.1
Restructuring expense
0.2
2.5
1.3
3.3
Operating income
26.8
44.3
55.9
72.7
Operating income %
6.7
%
10.4
%
7.0
%
8.9
%
Pension expense, other than service
cost
1.0
0.2
2.0
0.4
Interest (income) expense, net
(1.6
)
7.1
(4.4
)
13.6
Income from continuing operations before
income taxes
27.4
37.0
58.3
58.7
Income tax (benefit) provision
(3.3
)
8.6
4.8
13.2
Equity in net earnings of unconsolidated
affiliate
—
—
(0.1
)
—
Income from continuing operations
30.7
28.4
53.4
45.5
Income from discontinued operations, net
of taxes
—
4.3
0.1
14.4
Net income
$
30.7
$
32.7
$
53.5
$
59.9
Basic earnings per share from:
Continuing operations
$
0.96
$
0.89
$
1.67
$
1.42
Discontinued operations
—
0.13
—
0.45
Net income
$
0.96
$
1.02
$
1.67
$
1.87
Diluted earnings per share from net income
from:
Continuing operations
$
0.95
$
0.89
$
1.66
$
1.42
Discontinued operations
—
0.13
—
0.45
Net income
$
0.95
$
1.02
$
1.66
$
1.87
Weighted average shares outstanding:
Basic
32.0
32.0
32.0
32.0
Diluted
32.2
32.1
32.2
32.1
Other business information from continuing
operations:
Inbound orders
$
437.1
$
445.4
$
825.6
$
851.3
Orders backlog
$
697.2
$
697.4
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,
2024
2023
2024
2023
Income from continuing operations
$
30.7
$
28.4
$
53.4
$
45.5
Non-GAAP adjustments
Restructuring related costs(1)
0.2
2.5
1.3
3.3
M&A related costs(2)
14.5
1.1
19.7
3.6
Amortization of bridge financing debt
issuance cost
1.2
—
1.2
—
Impact on tax provision from Non-GAAP
adjustments(3)
(4.1
)
(0.9
)
(5.7
)
(1.8
)
Deferred tax benefit related to an
internal reorganization
(8.8
)
—
(8.8
)
—
Adjusted income from continuing
operations
$
33.7
$
31.1
$
61.1
$
50.6
Income from continuing operations
$
30.7
$
28.4
$
53.4
$
45.5
Total shares and dilutive securities
32.2
32.1
32.2
32.1
Diluted earnings per share from continuing
operations
$
0.95
$
0.89
$
1.66
$
1.42
Adjusted income from continuing
operations
$
33.7
$
31.1
$
61.1
$
50.6
Total shares and dilutive securities
32.2
32.1
32.2
32.1
Adjusted diluted earnings per share from
continuing operations
$
1.05
$
0.97
$
1.90
$
1.58
(1) Costs incurred as a direct result of
the restructuring program are excluded because they are not part of
the ongoing operations of our underlying business.
(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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Income from continuing operations
$
30.7
$
28.4
$
53.4
$
45.5
Income tax (benefit) provision
(3.3
)
8.6
4.8
13.2
Interest (income) expense, net
(1.6
)
7.1
(4.4
)
13.6
Depreciation and amortization
22.2
23.5
44.3
46.2
EBITDA from continuing operations
48.0
67.6
98.1
118.5
Restructuring related costs(1)
0.2
2.5
1.3
3.3
Pension expense, other than service
cost(2)
1.0
0.2
2.0
0.4
M&A related costs(3)
14.5
1.1
19.7
3.6
Adjusted EBITDA from continuing
operations
$
63.7
$
71.4
$
121.1
$
125.8
Total revenue
$
402.3
$
427.7
$
794.6
$
816.2
Adjusted EBITDA %
15.8
%
16.7
%
15.2
%
15.4
%
(1) Costs incurred as a direct result of
the restructuring program are excluded because they are not part of
the ongoing operations of our underlying business.
(2) Pension expense, other than service
cost is excluded as it represents all non service-related pension
expense, which consists of non-cash interest cost, expected return
on plan assets and amortization of actuarial gains and losses.
(3) 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)
June 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
474.3
$
483.3
Trade receivables, net of allowances
311.5
288.9
Inventories
258.7
238.9
Other current assets
80.9
89.1
Total current assets
1,125.4
1,100.2
Property, plant and equipment, net
242.0
248.0
Other assets
1,322.7
1,362.2
Total assets
$
2,690.1
$
2,710.4
Liabilities and Stockholders'
Equity
Accounts payable, trade and other
$
135.6
$
134.6
Advance and progress payments
150.1
172.0
Other current liabilities
157.2
177.8
Total current liabilities
442.9
484.4
Long-term debt, less current portion
647.6
646.4
Accrued pension and other post-retirement
benefits, less current portion
22.0
24.6
Other liabilities
58.8
66.1
Common stock and additional paid-in
capital
226.0
221.1
Retained earnings
1,510.6
1,463.6
Accumulated other comprehensive loss
(217.8
)
(195.8
)
Total stockholders' equity
1,518.8
1,488.9
Total liabilities and stockholders'
equity
$
2,690.1
$
2,710.4
JBT CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited and in
millions)
Six Months Ended
June 30,
2024
2023
Cash flows from continuing operating
activities
Net income
$
53.5
$
59.9
Less: Income from discontinued operations,
net of taxes
0.1
14.4
Income from continuing operations
53.4
45.5
Adjustments to reconcile income to cash
provided by operating activities
Depreciation and amortization
44.3
46.2
Stock-based compensation
7.8
4.6
Other
5.8
4.8
Changes in operating assets and
liabilities
Trade accounts receivable, net
(29.8
)
(15.5
)
Inventories
(22.6
)
0.1
Accounts payable, trade and other
2.7
(29.0
)
Advance and progress payments
(16.8
)
20.8
Other - assets and liabilities, net
(12.8
)
(14.9
)
Cash provided by continuing operating
activities
32.0
62.6
Cash flows from continuing investing
activities
Proceeds from sale of AeroTech, net
(2.6
)
—
Acquisitions, net of cash acquired
—
(0.1
)
Capital expenditures
(21.0
)
(35.3
)
Other
0.9
0.5
Cash required by continuing investing
activities
(22.7
)
(34.9
)
Cash flows from continuing financing
activities
Net payments for domestic credit
facilities
—
(32.8
)
Payment of debt issuance costs for Bridge
Credit Agreement
(7.1
)
—
Dividends
(6.4
)
(6.4
)
Other
(2.9
)
(1.6
)
Cash required by continuing financing
activities
(16.4
)
(40.8
)
Net decrease in cash and cash equivalents
from continuing operations
(7.1
)
(13.1
)
Net cash required by discontinued
operations
(0.1
)
(14.7
)
Effect of foreign exchange rate changes on
cash and cash equivalents
(1.8
)
(0.6
)
Net decrease in cash and cash
equivalents
(9.0
)
(28.4
)
Cash and cash equivalents from continuing
operations, beginning of period
483.3
71.7
Add: Cash and cash equivalents from
discontinued operations, beginning of period
—
1.4
Add: Net decrease in cash and cash
equivalents
(9.0
)
(28.4
)
Less: Cash and cash equivalents from
discontinued operations, end of period
—
(1.9
)
Cash and cash equivalents from continuing
operations, end of period
$
474.3
$
42.8
JBT CORPORATION
NON-GAAP FINANCIAL
MEASURES
FREE CASH FLOW
(Unaudited and in
millions)
Six Months Ended June
30,
2024
2023
Cash provided by continuing operating
activities
$
32.0
$
62.6
Less: capital expenditures
21.0
35.3
Plus: proceeds from disposal of assets
0.9
0.5
Plus: pension contributions
1.6
1.5
Free cash flow (FCF)
$
13.5
$
29.3
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 2024
Q4 2023
Q2 2023
Prior Year-End
Prior Year
Total debt
$
647.6
$
646.4
$
949.6
$
1.2
$
(302.0
)
Cash and marketable securities(1)
(474.3
)
(483.3
)
(42.8
)
9.0
(431.5
)
Net debt
$
173.3
$
163.1
$
906.8
$
10.2
$
(733.5
)
JBT CORPORATION
BANK TOTAL NET LEVERAGE RATIO
CALCULATION
(Unaudited and in
millions)
Q2 2024
Total debt
$
647.6
Cash and marketable securities
(474.3
)
Net debt
173.3
Other items considered debt under the
credit agreement
14.3
Consolidated total indebtedness(1)
$
187.6
Trailing twelve months Adjusted EBITDA
from continuing operations
268.4
Other adjustments net to earnings under
the credit agreement
1.6
Consolidated EBITDA(1)
$
270.0
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
$4.25 - $4.55
Non-GAAP adjustments
Restructuring related costs(1)
0.03
M&A related costs(2)
1.24
Bridge financing fees and related
costs(3)
0.11
Impact on tax provision from Non-GAAP
adjustments(4)
(0.31)
Deferred tax benefit related to an
internal reorganization(5)
(0.27)
Adjusted diluted earnings per share from
continuing operations
$5.05 - $5.35
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
$137.0 - $146.0
Income tax provision(4)
28.0 - 31.0
Interest income, net
(5.0 - 7.0)
Depreciation and amortization
~ 90.0
EBITDA from continuing operations
250.0 - 260.0
Restructuring related costs(1)
~ 1.0
Pension expense, other than service
cost
~ 4.0
M&A related costs(2)
~ 40.0
Adjusted EBITDA from continuing
operations
$295.0 - $305.0
(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 32.2
million total shares and dilutive securities to derive earnings per
share.
(2) M&A related costs is estimated to
be approximately $40 million for the full year 2024. The mid-point
amount has been divided by our estimate of 32.2 million total
shares and dilutive securities to derive earnings per share.
(3) Bridge financing fees and related
costs are estimated to be $3 - 4 million for the full year 2024.
The mid-point amount has been divided by our estimate of 32.2
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 to
23%.
(5) Deferred tax benefit related to an
internal reorganization is estimated to be $8 - 9 million for the
full year 2024. The mid-point amount has been divided by our
estimate of 32.2 million total shares and dilutive securities to
derive earnings per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730690352/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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