UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 |
CURRENT REPORT | ||
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 001-34036 | 91-1650317 | ||||||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
Check the appropriate box below if the Forms 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||||||||
☒ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | JBT | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
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Emerging growth company | ☐ | |||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act | ☐ | |||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
John Bean Technologies Corporation | ||||||||||||||
Date: February 20, 2024 | By: | /s/ Jessi L. Corcoran | ||||||||||||
Name | Jessi L. Corcoran | |||||||||||||
Title | Vice President, Corporate Controller and duly authorized officer | |||||||||||||
(Principal Accounting Officer) |
Guidance | |||||
$ millions except EPS | FY 2024 | ||||
Revenue | $1,750 - $1,780 | ||||
Income from continuing operations | $150 - $162 | ||||
Adjusted EBITDA(1) |
$295 - $310 | ||||
Adjusted EBITDA margin | 17.0 - 17.5% | ||||
GAAP EPS | $4.65 - $5.05 | ||||
Adjusted EPS(1) |
$5.05 - $5.45 | ||||
(1) Non-GAAP figure. Please see supplemental schedules for adjustments and reconciliations. | |||||
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 | |||||||||||||||||||
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 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. | |||||||||||||||||||||||
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 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 $401.7 million and Marketable securities of $125.0 million. |
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 | $4.65 - $5.05 | ||||
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 | $5.05 - $5.45 | ||||
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 | $150.0 - $162.0 | ||||
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 | $295.0 - $310.0 | ||||
(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 32.1 million total shares and dilutive securities to derive earnings per share. | |||||
(2) M&A related costs are estimated to be approximately $15 million for the full year 2024. The mid-point amount has been divided by our estimate of 32.1 million total shares and dilutive securities to derive earnings per share. | |||||
(3) Impact on tax provision was calculated using the Company's effective tax rate of approximately 22 to 23%. |