JBT Corporation Reports Third Quarter 2019 Results

CHICAGO, Oct. 28, 2019 /PRNewswire/ -- JBT Corporation (NYSE: JBT), a leading global technology solutions provider to high-value segments of the food & beverage industry, today reported results for the third quarter of 2019. Comparisons in this news release are to the comparable period of the prior year, unless otherwise noted.

"We continued to capture the benefits of our initiatives that make JBT a more efficient operation, with better than expected margin expansion in the third quarter of 2019," said Tom Giacomini, Chairman, President, and Chief Executive Officer. "We also enjoyed continued strength at AeroTech and across our aftermarket business. However, we have not seen improvement in orders at FoodTech, with a continued lag converting commercial activity to customer commitments due to business uncertainty."

Third quarter 2019 revenue of $489.4 million increased 2 percent, as 10 percent growth from acquisitions offset a 3 percent decline organically, a 2 percent headwind from foreign exchange translation, and a 4 percent decline attributable to the absence of the ASC 606 transition benefit recorded in the third quarter of 2018.

Operating income was $48.6 million in the third quarter of 2019. Net income for the third quarter of 2019 was $33.5 million. Adjusted EBITDA expanded 15 percent to $75.8 million, with a 190 basis point margin improvement to 15.5 percent.

Margins benefited from continued operational improvements resulting from the restructuring program and implementation of the JBT operating system as well as a higher percentage of revenue from aftermarket business. FoodTech operating profit margins in the third quarter of 2019 were roughly level with the year-ago period, while absorbing higher acquisition-related costs. FoodTech adjusted EBITDA margins expanded 240 basis points to 19.7 percent. AeroTech operating profit margin increased 250 basis points while AeroTech adjusted EBITDA margins expanded 280 basis points to 15.2 percent.

Diluted earnings per share from continuing operations was $1.04 for the third quarter of 2019 compared with $0.82 in the third quarter of 2018. Adjusted earnings per share was $1.28 compared with $1.12 in the year-ago period.

Orders and Backlog

Third quarter 2019 orders increased 3.5 percent year over year on flat orders at FoodTech and a 9 percent  increase at AeroTech. Backlog declined 8 percent at FoodTech and increased 8 percent at AeroTech.

Restructuring Program

"We continued to capture benefits from our company-wide restructuring program as reflected in incremental savings of $7 million in the third quarter," said Brian Deck, Executive Vice President and Chief Financial Officer.

Outlook

"We have adjusted full-year 2019 guidance to reflect better than expected margin gains, offset by softer FoodTech revenue," added Deck. For 2019, JBT expects revenue growth of 2 - 3 percent organically, with about 1 percent at FoodTech and 5 - 6 percent at AeroTech, and 7 percent from acquisitions. Foreign exchange is expected to be a 2 - 3 percent revenue headwind. Reported revenue is expected to be flat to up 1 percent year over year, considering 2018 included revenue of $127 million associated with the transition to ASC 606.

The Company changed full-year 2019 GAAP diluted earnings per share from continuing operations guidance to $4.10 - $4.20, including a projected $0.10 per share discrete tax benefit in the fourth quarter. This tax benefit does not impact adjusted earnings guidance, which has been narrowed to $4.80 - $4.90.

Third Quarter 2019 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET on Tuesday, October 29, 2019 to discuss third quarter financial results. Participants may access the conference call by dialing (833) 238-7952 in the U.S. and Canada or (647) 689-4200 for international callers and using conference ID 4516347 or through the link on our website at https://www.jbtc.com/investors. 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 October 29, 2019.

JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to high-value segments of the food & beverage industry with focus on proteins, liquid foods and automated system solutions. JBT designs, produces and services sophisticated products and systems for multi-national and regional customers through its FoodTech segment. JBT also sells critical equipment and services to domestic and international air transportation customers through its AeroTech segment. JBT Corporation employs approximately 6,400 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 the Company's ability to control. These risks and uncertainties are described under the caption "Risk Factors" in the Company's most recent 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.

We provide 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 changes the calculation of, a measure as calculated under U.S. GAAP. By eliminating these items, we believe we provide 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.