EXHIBIT 99.1
Published on March 3, 2010
Exhibit 99.1
|
News
Release
|
JBT
Corporation
|
| 200 E. Randolph Drive | |
| Chicago, IL 60601 |
For
Release: Immediate
|
Investors:
|
Cindy
Shiao
|
(312)
861-5931
|
|
Media:
|
Ken
Jones
|
(312)
861-6791
|
JBT
Corporation Reports Fourth Quarter and Full Year 2009 Results
Full
Year 2009 highlights:
|
|
o
|
Diluted
earnings per share from continuing operations of
$1.15
|
|
|
o
|
Strong cash
flow from operating activities of $54
million
|
|
|
o
|
Revenue of
$842 million down 18 percent from
2008
|
|
|
o
|
Gross
profit margin of 26.2 percent increased 170 basis points from
2008
|
Fourth
quarter highlights:
|
|
o
|
Diluted
earnings per share from continuing operations of
$0.37
|
|
|
o
|
Revenue of
$246 million up 5 percent from
2008
|
|
|
o
|
Net debt
reduced by $15 million to $118
million
|
CHICAGO, March 2, 2010—JBT
Corporation (NYSE:
JBT), a leading global technology solutions provider to the food
processing and air transportation industries, today reported fourth quarter and
full year 2009 results.
Revenue
for the quarter of $246.0 million increased 5 percent from the prior-year
quarter. Fourth-quarter income from continuing operations was $10.6
million, up 3 percent from the prior-year quarter. Diluted
earnings per share from continuing operations for the quarter were $0.37, flat
compared to the prior-year quarter. During the quarter, the company
incurred restructuring charges of $0.4 million to continue to reduce costs and
recorded a $1.4 million loss reserve related to product liability litigation in
Tunisia. Additionally, the company reported a lower tax rate in the
quarter due to recognition of international withholding tax credits and certain
deferred tax assets amounting to $1.1 million associated with a foreign
subsidiary. The net unfavorable impact of these items to fourth
quarter earnings per diluted share was $0.01. Fourth-quarter inbound
orders of $195.0 million declined 5 percent from the prior-year
quarter. Backlog of $211.2 million was down 26 percent from the same
period in 2008.
Full-year
revenue of $841.6 million was 18 percent lower than the prior year; 2 percentage
points of this decline resulted from unfavorable foreign currency
translation. Gross profit margin of 26.2 percent increased 170 basis
points from 2008. Full-year income from continuing operations was
$32.8 million, down 18 percent from pro forma income from continuing operations
in 2008 (calculated on a pro forma basis to include comparable debt and interest
expense). Full-year diluted earnings per share from continuing
operations were $1.15, a 20 percent decline compared to pro forma diluted
earnings per share in 2008. In 2009, the company incurred
restructuring charges of $3.9 million in response to lower demand for some of
its product lines.
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“We are
pleased with the strong finish to 2009,” said Charlie Cannon, Chairman and Chief
Executive Officer. “Our profit margins held up well despite the challenging
environment, reflecting our focus on project execution, aggressive cost control
and the strength of our recurring revenue base, and we further significantly
reduced net debt. We are seeing signs of increasing order activity;
however, the trend toward smaller projects and longer sales cycles
continues. We expect our strong recurring revenue base and continued
cost control initiatives to position the company well for another solid year of
performance in 2010.”
JBT
FoodTech
JBT
FoodTech’s fourth quarter revenue was $161.4 million, a 21 percent increase over
the prior-year period. In constant currencies, revenue increased 13
percent due to strong demand for freezing equipment in Asia and shipment of two
large sterilization projects in the U.S. Activity in both Western
Europe and North America is improving, but demand from Latin America remains
very weak. JBT FoodTech’s operating profit was $16.0 million, down 13
percent from the same period in 2008. Operating margins were 9.9
percent, down from 13.8 percent in the prior-year quarter, primarily due to a
higher proportion of new equipment sales versus higher margin aftermarket sales,
a loss reserve for product liability litigation in Tunisia as well as
competitive pricing pressure. Inbound orders totaled $127.9 million
for the quarter, a decline of 5 percent from the prior-year quarter and down 11
percent in constant currencies largely reflecting smaller project
sizes. Inbound orders were 2 percent higher than in the third quarter
of 2009. Backlog of $96.7 million was down 35 percent from the
prior-year quarter and down 26 percent sequentially from the third quarter of
2009. The shipment of two large orders during the fourth quarter and
the trend toward smaller order sizes contributed to the backlog
decline.
JBT
AeroTech
While JBT
AeroTech’s fourth quarter revenue of $84.8 million declined 18 percent,
operating profit of $8.0 million improved 10 percent compared to the prior-year
period. The lower revenue reflected continued weak demand for JBT
AeroTech’s ground support equipment product line from both airline and
airfreight industries. Cost savings from restructuring initiatives,
improved project margins for the gate equipment product line, and favorable mix
of higher margin products more than offset the impact of lower
revenue. As a result, JBT AeroTech operating margin for the quarter
was 9.4 percent - the best performing quarter in 2009, reflecting a 230 basis
point increase from the prior-year period. Inbound orders totaled
$67.1 million, down 9 percent from the same period last year, primarily due to
timing of contract awards for the gate equipment product line and down 8 percent
sequentially from the third quarter of 2009. Inbound orders for the
ground support equipment product line were slightly higher than the prior-year
period, pointing to an apparent bottom in demand decline for this product
line. Backlog of $114.7 million was down 17 percent from the
prior-year quarter and down 13 percent sequentially from the third quarter of
2009.
Corporate
Items
Corporate
expense in the quarter was $4.4 million, down $0.6 million from the fourth
quarter of 2008, reflecting lower expense levels.
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JBT
Corporation
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Other
expense, net of $2.1 million declined $1.5 million versus the prior-year
quarter, primarily driven by the absence of unrealized foreign exchange losses
recorded in the fourth quarter of 2008.
Cash
generated from operating activities in the quarter was $20.9 million. The
company ended the quarter with debt, net of cash, of $117.8 million, a reduction
of $15.0 million from the third quarter of 2009. Net interest expense
for the quarter was $2.2 million.
The
year-to-date effective tax rate from continuing operations was 32.9
percent.
Full-year
capital expenditures totaled $19.8 million and depreciation and amortization
totaled $22.6 million.
2010
Outlook
The
company anticipates improved market conditions for many of its product lines in
2010. However, smaller projects and longer project lead-times have
limited the company’s visibility into 2010. As a result, the company
will provide a market update during tomorrow’s earnings call and will consider
providing earnings guidance with its first quarter 2010 earnings
report.
Fourth
Quarter Earnings Conference Call
The
company will hold a conference call at 9:00 AM EST Wednesday, March 3, 2010, to
discuss the fourth quarter and full year 2009 results. The call can
be accessed live by dialing (877) 235-3250 or (706) 643-5005 and using
conference ID 49085858, or through the Investor Relations link on JBT
Corporation’s website at http://ir.jbtcorporation.com. A
replay of the call will be available through March 10, 2010 and can be accessed
by dialing (800) 642-1687 or (706) 645-9291 and referencing passcode
49085858. A rebroadcast also will available on the company’s Investor
Relations website.
###
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 3,300 people worldwide and operates sales,
service, manufacturing and sourcing operations located in over 25
countries. For more information, please visit www.jbtcorporation.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 2008 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.
FINANCIAL
TABLES FOLLOW
MORE
|
JBT CORPORATION
|
||||||||
|
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF
INCOME
|
||||||||
|
(Unaudited
and in millions)
|
||||||||
|
Three
Months Ended December 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Revenue
|
$ | 246.0 | $ | 234.5 | ||||
|
Costs
and expenses:
|
||||||||
|
Costs
of sales
|
185.5 | 173.8 | ||||||
|
Selling,
general and administrative expense
|
38.6 | 34.9 | ||||||
|
Research
and development expense
|
4.7 | 5.2 | ||||||
|
Total
costs and expenses
|
228.8 | 213.9 | ||||||
|
Other
income (expense), net
|
0.3 | (3.5 | ) | |||||
|
Net
interest (expense) income
|
(2.2 | ) | (2.6 | ) | ||||
|
Income
from continuing operations before income taxes
|
15.3 | 14.5 | ||||||
|
Provision
for income taxes
|
4.7 | 4.2 | ||||||
|
Income
from continuing operations
|
10.6 | 10.3 | ||||||
|
Income
(Loss) from discontinued operations, net of taxes
|
0.1 | (0.2 | ) | |||||
|
Net
income
|
$ | 10.7 | $ | 10.1 | ||||
|
Basic
earnings per share:
|
||||||||
|
Income
from continuing operations
|
$ | 0.39 | $ | 0.37 | ||||
|
Income
from discontinued operations
|
- | - | ||||||
|
Basic
earnings per share
|
$ | 0.39 | $ | 0.37 | ||||
|
Diluted
earnings per share:
|
||||||||
|
Income
from continuing operations
|
$ | 0.37 | $ | 0.37 | ||||
|
Income
from discontinued operations
|
- | (0.01 | ) | |||||
|
Diluted
earnings per share
|
$ | 0.37 | $ | 0.36 | ||||
|
Weighted
average shares outstanding
|
||||||||
|
Basic
|
27.7 | 27.5 | ||||||
|
Diluted
|
28.9 | 28.1 | ||||||
| JBT CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME | ||||||||||||
| (Unaudited and in millions) | ||||||||||||
|
Twelve
Months Ended December 31,
|
||||||||||||
|
2009
|
2008
|
|||||||||||
|
Historical
|
Pro
Forma (1)
|
|||||||||||
|
Revenue
|
$ | 841.6 | $ | 1,028.1 | $ | 1,028.1 | ||||||
|
Costs
and expenses:
|
||||||||||||
|
Costs
of sales
|
621.2 | 776.3 | 776.3 | |||||||||
|
Selling,
general and administrative expense
|
147.8 | 152.9 | 152.9 | |||||||||
|
Research
and development expense
|
17.1 | 22.0 | 22.0 | |||||||||
|
Total
costs and expenses
|
786.1 | 951.2 | 951.2 | |||||||||
|
Other
income (expense), net
|
2.2 | (6.6 | ) | (6.6 | ) | |||||||
|
Net
interest (expense) income
|
(8.8 | ) | (3.8 | ) | (10.2 | ) | ||||||
|
Income
from continuing operations before income taxes
|
48.9 | 66.5 | 60.1 | |||||||||
|
Provision
for income taxes
|
16.1 | 22.4 | 20.0 | |||||||||
|
Income
from continuing operations
|
32.8 | 44.1 | 40.1 | |||||||||
|
Income
from discontinued operations, net of taxes
|
- | 0.1 | 0.1 | |||||||||
|
Net
income
|
$ | 32.8 | $ | 44.2 | $ | 40.2 | ||||||
|
Basic
earnings per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 1.19 | $ | 1.60 | $ | 1.46 | ||||||
|
Income
from discontinued operations
|
- | 0.01 | - | |||||||||
|
Basic
earnings per share
|
$ | 1.19 | $ | 1.61 | $ | 1.46 | ||||||
|
Diluted
earnings per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 1.15 | $ | 1.59 | $ | 1.44 | ||||||
|
Income
from discontinued operations
|
- | - | 0.01 | |||||||||
|
Diluted
earnings per share
|
$ | 1.15 | $ | 1.59 | $ | 1.45 | ||||||
|
Weighted
average shares outstanding
|
||||||||||||
|
Basic
|
27.6 | 27.5 | 27.5 | |||||||||
|
Diluted
|
28.6 | 27.8 | 27.8 | |||||||||
|
(1)
|
In
connection with the separation from FMC Technologies, JBT Corporation paid
FMC Technologies $189.4 million, which was funded through issuance of
unsecured debt. Pro forma results include an estimate of interest expense
that JBT Corporation would have incurred had the spin-off occurred on
January 1, 2008. Interest expense is based on $189.4 million of debt at
the interest rate applicable on July 31, 2008, or 5.8%, for all periods
prior to the separation date. Related income tax impact has been estimated
using a rate of 37%.
|
|
JBT CORPORATION
|
||||||||||||||||
|
BUSINESS SEGMENT DATA
|
||||||||||||||||
|
(Unaudited
and in millions)
|
||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 161.4 | $ | 132.9 | $ | 515.8 | $ | 584.0 | ||||||||
|
JBT
AeroTech
|
84.8 | 103.0 | 320.7 | 446.9 | ||||||||||||
|
Other
revenue (1) and intercompany eliminations
|
(0.2 | ) | (1.4 | ) | 5.1 | (2.8 | ) | |||||||||
|
Total
revenue
|
$ | 246.0 | $ | 234.5 | $ | 841.6 | $ | 1,028.1 | ||||||||
|
Income before income taxes
|
||||||||||||||||
|
Segment operating profit
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 16.0 | $ | 18.4 | $ | 50.7 | $ | 60.2 | ||||||||
|
JBT
AeroTech
|
8.0 | 7.3 | 25.0 | 38.5 | ||||||||||||
|
Total
segment operating profit
|
24.0 | 25.7 | 75.7 | 98.7 | ||||||||||||
|
Corporate items
|
||||||||||||||||
|
Corporate
expense
|
(4.4 | ) | (5.0 | ) | (15.4 | ) | (15.0 | ) | ||||||||
|
Other
expense, net (2)
|
(2.1 | ) | (3.6 | ) | (2.6 | ) | (13.4 | ) | ||||||||
|
Net
interest expense
|
(2.2 | ) | (2.6 | ) | (8.8 | ) | (3.8 | ) | ||||||||
|
Total
corporate items
|
(8.7 | ) | (11.2 | ) | (26.8 | ) | (32.2 | ) | ||||||||
|
Income
from continuing operations before income taxes
|
$ | 15.3 | $ | 14.5 | $ | 48.9 | $ | 66.5 | ||||||||
|
(1)
|
Other revenue comprises certain gains and losses on derivatives related to foreign exchange exposure. |
|
(2)
|
Other expense, net, generally includes stock-based compensation, other employee benefits, LIFO adjustments, foreign exchange gains and losses, and the impact of unusual or strategic transactions not representative of segment operations. |
|
JBT CORPORATION
|
||||||||||||||||
|
BUSINESS SEGMENT DATA
|
||||||||||||||||
|
(Unaudited
and in millions)
|
||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Inbound Orders
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 127.9 | $ | 134.9 | $ | 463.5 | $ | 568.6 | ||||||||
|
JBT
AeroTech
|
67.1 | 73.5 | 297.9 | 357.8 | ||||||||||||
|
Other
and intercompany eliminations
|
- | (2.1 | ) | 5.9 | (6.1 | ) | ||||||||||
|
Total
inbound orders
|
$ | 195.0 | $ | 206.3 | $ | 767.3 | $ | 920.3 | ||||||||
|
December
31,
|
||||||||||||||||
| 2009 | 2008 | |||||||||||||||
|
Order Backlog
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 96.7 | $ | 149.0 | ||||||||||||
|
JBT
AeroTech
|
114.7 | 137.5 | ||||||||||||||
|
Intercompany
eliminations
|
(0.2 | ) | (1.0 | ) | ||||||||||||
|
Total
order backlog
|
$ | 211.2 | $ | 285.5 | ||||||||||||
|
JBT CORPORATION
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
||||||||
|
(In
millions)
|
||||||||
|
December
31,
|
December
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash
and cash equivalents
|
$ | 14.4 | $ | 43.6 | ||||
|
Trade
receivables, net
|
149.3 | 159.0 | ||||||
|
Inventories
|
107.0 | 123.0 | ||||||
|
Other
current assets
|
32.7 | 31.4 | ||||||
|
Total
current assets
|
303.4 | 357.0 | ||||||
|
Property,
plant and equipment, net
|
126.5 | 119.7 | ||||||
|
Other
assets
|
103.2 | 114.6 | ||||||
|
Total
assets
|
$ | 533.1 | $ | 591.3 | ||||
|
Accounts
payable, trade and other
|
$ | 65.9 | $ | 67.2 | ||||
|
Advance
payments and progress billings
|
69.5 | 92.9 | ||||||
|
Other
current liabilities
|
98.2 | 104.3 | ||||||
|
Total
current liabilities
|
233.6 | 264.4 | ||||||
|
Long-term
debt, less current portion
|
131.8 | 185.0 | ||||||
|
Accrued
pension and other postretirement benefits,
|
||||||||
|
less
current portion
|
77.1 | 118.3 | ||||||
|
Other
liabilities
|
28.8 | 32.4 | ||||||
|
Common
stock, paid-in capital and retained earnings
|
97.8 | 61.6 | ||||||
|
Accumulated
other comprehensive loss
|
(36.0 | ) | (70.4 | ) | ||||
|
Total
liabilities and stockholders' equity
|
$ | 533.1 | $ | 591.3 | ||||
|
JBT CORPORATION
|
||||||||
|
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF
CASH FLOWS
|
||||||||
|
(Unaudited
and in millions)
|
||||||||
|
Twelve
Months Ended
|
||||||||
|
December
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash
Flows From Operating Activities:
|
||||||||
|
Income
from continuing operations
|
$ | 32.8 | $ | 44.1 | ||||
|
Adjustments
to reconcile income to cash provided by operating
activities:
|
||||||||
|
Depreciation
and amortization
|
22.6 | 25.5 | ||||||
|
Pension
expense
|
7.9 | 5.9 | ||||||
|
Other
- non-cash expenses
|
11.7 | 19.1 | ||||||
|
Changes
in operating assets and liabilities:
|
||||||||
|
Trade
accounts receivable, net
|
13.7 | 4.2 | ||||||
|
Inventories
|
22.8 | 17.0 | ||||||
|
Accounts
payable, trade and other
|
(3.4 | ) | (32.0 | ) | ||||
|
Advance
payments and progress billings
|
(26.5 | ) | (0.4 | ) | ||||
|
Pension
and other post retirement benefits, net
|
(17.6 | ) | (4.4 | ) | ||||
|
Other
- assets and liabilities
|
(9.9 | ) | 2.8 | |||||
|
Cash
provided by operating activities
|
54.1 | 81.8 | ||||||
|
Cash
Flows From Investing Activities:
|
||||||||
|
Acquisitions
|
(6.7 | ) | (4.5 | ) | ||||
|
Capital
expenditures
|
(19.8 | ) | (22.9 | ) | ||||
|
Proceeds
on disposal of assets and other
|
1.7 | 2.1 | ||||||
|
Cash
required by continuing investing activities
|
(24.8 | ) | (25.3 | ) | ||||
|
Cash
provided by discontinued investing activities
|
- | 0.7 | ||||||
|
Cash
Flows From Financing Activities:
|
||||||||
|
Net
(payment) borrowing on credit facilities
|
(53.3 | ) | 184.4 | |||||
|
Distributions
to former parent, net
|
- | (203.9 | ) | |||||
|
Dividends
paid
|
(7.7 | ) | (1.9 | ) | ||||
|
Other
|
0.8 | (0.7 | ) | |||||
|
Cash
required by financing activities
|
(60.2 | ) | (22.1 | ) | ||||
|
Effect
of foreign exchange rate changes on cash and cash
equivalents
|
1.7 | (1.0 | ) | |||||
|
(Decrease)
increase in cash and cash equivalents
|
(29.2 | ) | 34.1 | |||||
|
Cash
and cash equivalents, beginning of period
|
43.6 | 9.5 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 14.4 | $ | 43.6 | ||||
|
JBT
CORPORATION
|
|
RECONCILIATION OF NON-GAAP
MEASURES
|
|
(Unaudited
and in millions)
|
|
Three
Months Ended December 31,
|
Twelve
Months Ended December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
Pro Forma
|
|||||||||||||
|
EBIT
(Non-GAAP measure)
|
$ | 17.5 | $ | 17.1 | $ | 57.7 | $ | 70.3 | ||||||||
|
Net
interest expense
|
(2.2 | ) | (2.6 | ) | (8.8 | ) | (10.2 | ) | ||||||||
|
Provision
for income taxes
|
(4.7 | ) | (4.2 | ) | (16.1 | ) | (20.0 | ) | ||||||||
|
Income
from continuing operations
|
10.6 | 10.3 | 32.8 | 40.1 | ||||||||||||
|
Income
(loss) from discontinued operations, net of taxes
|
0.1 | (0.2 | ) | - | 0.1 | |||||||||||
|
Net
income
|
$ | 10.7 | $ | 10.1 | $ | 32.8 | $ | 40.2 | ||||||||
|
Three
Months Ended December 31,
|
Twelve
Months Ended December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
Pro Forma
|
|||||||||||||
|
Revenue
|
$ | 246.0 | $ | 234.5 | $ | 841.6 | $ | 1,028.1 | ||||||||
|
EBIT
(Non-GAAP measure)
|
$ | 17.5 | $ | 17.1 | $ | 57.7 | $ | 70.3 | ||||||||
|
EBIT
as percent of Revenue (Non-GAAP measure)
|
7.1 | % | 7.3 | % | 6.9 | % | 6.8 | % | ||||||||
|
Net
Income
|
$ | 10.7 | $ | 10.1 | $ | 32.8 | $ | 40.2 | ||||||||
|
Net
Income as percent of Revenue
|
4.3 | % | 4.3 | % | 3.9 | % | 3.9 | % | ||||||||