JBT Corporation Reports Fourth Quarter and Full Year 2023 Results and Establishes 2024 Guidance with Solid Organic Revenue Growth and Continued Margin Expansion
- Record income from continuing operations and earnings per share for the fourth quarter and full year 2023, with significant increases of 69 percent and 25 percent, respectively.
- Adjusted EBITDA increased by 18 percent for the fourth quarter and 20 percent for the full year 2023, with improved margins.
- JBT's revenue grew by 1 percent in the fourth quarter and 5 percent for the full year 2023, primarily driven by acquisitions.
- The company's 2024 outlook includes expectations of mid-single-digit organic growth, margin expansion, and improvement in the North American poultry market.
- JBT announced its intention to pursue a merger with Marel, aiming to create a combined company with enhanced scale, global reach, and innovation.
- The potential merger offer for Marel is expected to be launched in the second quarter of 2024, subject to confirmatory due diligence and board approvals.
- None.
Insights
The reported increase in income from continuing operations and earnings per share (EPS) by 69% in Q4 and by 25% and 24% respectively for the full year, indicates a strong profitability growth for JBT Corporation. The substantial rise in adjusted EBITDA by 18% for the quarter and 20% for the year, alongside the expansion of the adjusted EBITDA margin, suggests efficient cost management and operational leverage. The shift to FIFO inventory method and the discrete tax benefit point to strategic financial management, which investors may view positively as it reflects an improvement in net income without affecting core operational metrics like adjusted EBITDA.
Moreover, the restructuring program seems to be yielding cost savings that are in line with the expenses incurred, indicating a neutral to positive impact on the company's financial health in the near term. The leverage ratio of 0.6x is notably low, suggesting a strong balance sheet with low debt levels relative to earnings, which provides financial flexibility and may be attractive to risk-averse investors. The free cash flow conversion rate of 129% is exceptional, highlighting the company's ability to convert earnings into cash effectively, which is crucial for funding operations, paying dividends, or investing in growth initiatives.
The 5% year-over-year revenue growth primarily attributed to acquisitions indicates JBT's strategic use of M&A to drive top-line growth. The focus on becoming a pure-play food and beverage technology solutions provider and the growth in recurring revenue demonstrates a strategic pivot towards more stable, predictable income streams. This is particularly significant for investors who value business models with a recurring revenue component due to their potential for greater earnings stability and predictability.
The company's outlook for mid-single-digit organic growth in 2024, driven by recurring revenue initiatives and improved market conditions, suggests confidence in the underlying demand for JBT's offerings. The anticipated improvement in the North American poultry market and ongoing benefits from restructuring efforts provide a positive outlook for future performance. The potential merger with Marel could significantly affect the company's market position, combining complementary product portfolios and expanding global reach, which could lead to enhanced shareholder value over the long term. However, the associated M&A costs and the need for due diligence and regulatory approvals introduce elements of uncertainty that will require close monitoring.
The potential merger with Marel is a significant strategic move that could reshape JBT's competitive landscape. The merger would not only enhance JBT's product offerings and brand reputation but also expand its global footprint. The legal complexities involved in such cross-border transactions, including due diligence, mutual agreement on terms, regulatory approvals and the assumption of Marel's debt obligations, are non-trivial and could impact the timeline and finalization of the deal.
The intention to maintain a significant Icelandic presence and a secondary listing on Nasdaq Iceland, subject to regulatory approval, indicates a commitment to Marel's heritage and could be viewed positively in terms of corporate responsibility and local stakeholder engagement. It is important for investors to consider the legal and regulatory hurdles that could affect the merger's success, as well as the potential for synergies and cost savings that typically drive the rationale behind such transactions.
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 $1.64
-
Adjusted EBITDA of
$81 million
-
Adjusted earnings per share of
$1.40
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 $4.02
-
Adjusted EBITDA of
$273 million
-
Adjusted earnings per share of
$4.10
"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
Diluted earnings per share (EPS) of
Full Year 2023 Results
Full year 2023 revenue of
Diluted EPS of
JBT generated full year 2023 operating cash flow from continuing operations of
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 |
|
Income from continuing operations |
|
Adjusted EBITDA(1) |
|
Adjusted EBITDA margin |
17.0 - |
GAAP EPS |
|
Adjusted EPS(1) |
|
|
|
(1) Non-GAAP figure. Please see supplemental schedules for adjustments and reconciliations. |
|
For the full year 2024, JBT expects net interest income of approximately
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
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
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
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
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
Note to
It is important that
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 |
|
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JBT CORPORATION |
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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. |
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|
|
|
|
|
|
|
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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. |
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JBT CORPORATION |
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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 |
||||||||||||||||||
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 |
|
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 |
|
|
|
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 |
|
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 |
|
|
|
(1) Restructuring related costs is estimated to be approximately |
|
|
|
(2) M&A related costs are estimated to be approximately |
|
|
|
(3) Impact on tax provision was calculated using the Company's effective tax rate of approximately 22 to |
|
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
Source: JBT Corporation
FAQ
What were JBT Corporation's income and earnings per share for the fourth quarter of 2023?
How much did JBT Corporation's adjusted EBITDA increase by for the full year 2023?
What was the revenue growth percentage for JBT Corporation in the full year 2023?
What is JBT Corporation's outlook for 2024 in terms of revenue and adjusted EBITDA?
What strategic initiative did JBT Corporation announce regarding a potential merger?
When is the expected launch of the potential merger offer for Marel?
