JBT Corporation Reports Third Quarter 2019 Results

JBT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited and in millions, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2019

2018

2019

2018

Revenue

$

489.4

$

481.9

$

1,400.2

$

1,382.4

Cost of sales

341.8

346.8

970.0

1,003.4

Gross profit

147.6

135.1

430.2

379.0

       Gross profit %

30.2

%

28.0

%

30.7

%

27.4

%

Selling, general and administrative expense

97.7

86.9

293.1

261.5

Restructuring expense

1.3

11.6

11.5

32.8

Operating income

48.6

36.6

125.6

84.7

       Operating income %

9.9

%

7.6

%

9.0

%

6.1

%

Pension expense, other than service cost

0.5

—

1.5

0.6

Net interest expense

5.9

3.4

13.4

10.5

Income from continuing operations before income taxes

42.2

33.2

110.7

73.6

Provision for income taxes

8.7

6.8

23.5

12.1

Income from continuing operations

33.5

26.4

87.2

61.5

Loss from discontinued operations, net of taxes

—

—

0.3

0.3

Net income

$

33.5

$

26.4

$

86.9

$

61.2

Basic earnings per share:

Income from continuing operations

$

1.05

$

0.83

$

2.74

$

1.93

Loss from discontinued operations

—

—

0.01

0.01

Net income

$

1.05

$

0.83

$

2.73

$

1.92

Diluted earnings per share:

Income from continuing operations

$

1.04

$

0.82

$

2.72

$

1.91

Loss from discontinued operations

—

—

0.01

0.01

Net income

$

1.04

$

0.82

$

2.71

$

1.90

Weighted average shares outstanding

Basic

31.9

31.9

31.9

31.9

Diluted

32.1

32.1

32.0

32.2

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

September 30,

Nine Months Ended

September 30,

2019

2018

2019

2018

Income from continuing operations as reported

$

33.5

$

26.4

$

87.2

$

61.5

Non-GAAP adjustments:

Restructuring expense

1.3

11.6

11.5

32.8

M&A related cost⁽¹⁾

8.7

2.2

20.2

4.0

Impact on tax provision from Non-GAAP adjustments⁽²⁾

(2.5)

(3.5)

(7.8)

(9.5)

Impact on tax provision from repatriation

—

0.6

—

0.6

Impact on tax provision from rate change on deferred taxes

—

(1.5)

—

(1.5)

Adjusted income from continuing operations

$

41.0

$

35.8

$

111.1

$

87.9

Income from continuing operations as reported

$

33.5

$

26.4

$

87.2

$

61.5

Total shares and dilutive securities

32.1

32.1

32.0

32.2

Diluted earnings per share from continuing operations

$

1.04

$

0.82

$

2.72

$

1.91

Adjusted income from continuing operations

$

41.0

$

35.8

$

111.1

$

87.9

Total shares and dilutive securities

32.1

32.1

32.0

32.2

Adjusted diluted earnings per share from continuing operations

$

1.28

$

1.12

$

3.47

$

2.73

(1)           Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs,

                specifically amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance

                and operating trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded

                from the prior year results to conform to the current year presentation.

(2)           Impact on tax provision was calculated using the Company's annual effective tax rate of 24.7% and 25.7% for September 30, 2019

                and 2018, respectively.

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 NET INCOME TO ADJUSTED EBITDA

(Unaudited and in millions)

Three Months Ended

September 30,

Nine Months Ended

September 30,

As of October 28,

2019

2019

2018

2019

2018

Outlook FY 2019

Net income

$

33.5

$

26.4

$

86.9

$

61.2

$131.0 to $136.0

Loss from discontinued operations, net of taxes

—

—

0.3

0.3

~1.0

Income from continuing operations as reported

33.5

26.4

87.2

61.5

$127.0 to $132.0

Income tax provision

8.7

6.8

23.5

12.1

39.0 to 40.0

Interest expense, net

5.9

3.4

13.4

10.5

23.0 to 24.0

Depreciation and amortization

17.2

15.3

47.5

43.1

69.0 to 70.0

EBITDA

65.3

51.9

171.6

127.2

$254.0 to $261.0

Restructuring expense

1.3

11.6

11.5

32.8

12.0 to 15.0

Pension expense, other than service cost

0.5

—

1.5

0.6

~1.0

M&A related cost

8.7

2.2

20.2

4.0

~22.0

Adjusted EBITDA

$

75.8

$

65.7

$

204.8

$

164.6

Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically

amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance and operating

trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from the prior year

results to conform to the current year presentation.

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 this information is helpful to investors because it allows more meaningful period-to-period

comparisons of our ongoing operating results.

JBT CORPORATION

BUSINESS SEGMENT DATA

(Unaudited and in millions)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2019

2018

2019

2018

Revenue

JBT FoodTech

$

334.3

$

332.5

$

972.2

$

997.7

JBT AeroTech

155.0

149.5

427.8

384.6

Other revenue and intercompany eliminations

$

0.1

$

(0.1)

$

0.2

$

0.1

Total revenue

$

489.4

$

481.9

$

1,400.2

$

1,382.4

Income before income taxes

Segment operating profit⁽¹⁾

JBT FoodTech

$

42.5

$

41.9

$

132.5

$

110.8

JBT FoodTech segment operating profit %

12.7

%

12.6

%

13.6

%

11.1

%

JBT AeroTech

22.2

17.6

50.2

40.2

JBT AeroTech segment operating profit %

14.3

%

11.8

%

11.7

%

10.5

%

Total segment operating profit⁽²⁾

64.7

59.5

182.7

151.0

Total segment operating profit %

13.2

%

12.3

%

13.0

%

10.9

%

Corporate expense⁽¹⁾

14.8

11.3

45.6

33.5

Restructuring expense

1.3

11.6

11.5

32.8

Operating income

$

48.6

$

36.6

$

125.6

$

84.7

Operating income %

9.9

%

7.6

%

9.0

%

6.1

%

Other business segment information

Three Months Ended

September 30,

Nine Months Ended

September 30,

Inbound Orders

2019

2018

2019

2018

JBT FoodTech

$

283.3

$

282.3

$

900.1

$

952.9

JBT AeroTech

180.3

165.7

492.3

467.3

Other revenue and intercompany eliminations

0.1

0.1

0.2

0.2

Total inbound orders

$

463.7

$

448.1

$

1,392.6

$

1,420.4

As of September 30,

2019

2018

Order Backlog

JBT FoodTech

$

377.3

$

408.2

JBT AeroTech

376.2

346.9

Total order backlog

$

753.5

$

755.1

(1) Segment operating profit is defined as total segment revenue less segment operating expenses.  Corporate expense, restructuring expense, interest income

and expense, pension expense other than service, and income taxes are not allocated to the segments.  Corporate expense generally includes corporate staff-

related expense, stock-based compensation, LIFO adjustments, certain foreign currency related gains and losses, and the impact of unusual or strategic events

not representative of segment operations.

(2) Total segment operating profit, as presented elsewhere in this release, is a non-GAAP measure.  The table above includes a reconciliation of total segment

operating profit to operating income.  We believe that this measure provides to investors a more comprehensive understanding of the information used by

management in evaluating the performance of its segment operations.  It is not intended to nor shall be considered in isolation or as a substitute for financial

measures prepared in accordance with U.S. GAAP.

JBT CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT

(Unaudited and in millions)

Three Months Ended September 30, 2019

(In millions)

JBT FoodTech

JBT AeroTech

Corporate

(Unallocated)

Consolidated

Operating profit

$

42.5

$

22.2

$

(16.1)

$

48.6

Restructuring expense

—

—

1.3

1.3

M&A related cost⁽¹⁾

7.9

—

0.8

8.7

Adjusted operating profit

50.4

22.2

(14.0)

58.6

Depreciation and amortization

15.4

1.3

0.5

17.2

Adjusted EBITDA

$

65.8

$

23.5

$

(13.5)

$

75.8

Revenue

$

334.3

$

155.0

$

0.1

$

489.4

Operating profit %

12.7

%

14.3

%

9.9

%

Adjusted operating profit %

15.1

%

14.3

%

12.0

%

Adjusted EBITDA %

19.7

%

15.2

%

15.5

%

Nine Months Ended September 30, 2019

(In millions)

JBT FoodTech

JBT AeroTech

Corporate

(Unallocated)

Consolidated

Operating profit

$

132.5

$

50.2

$

(57.1)

$

125.6

Restructuring expense

—

—

11.5

11.5

M&A related cost ⁽¹⁾

13.2

0.9

6.1

20.2

Adjusted operating profit

145.7

51.1

(39.5)

157.3

Depreciation and amortization

42.0

3.5

2.0

47.5

Adjusted EBITDA

$

187.7

$

54.6

$

(37.5)

$

204.8

Revenue

$

972.2

$

427.8

$

0.2

$

1,400.2

Operating profit %

13.6

%

11.7

%

9.0

%

Adjusted operating profit %

15.0

%

11.9

%

11.2

%

Adjusted EBITDA %

19.3

%

12.8

%

14.6

%

Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically

amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance and operating trends

after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from the prior year results to

conform to the current year presentation.

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 this information is helpful to investors because it allows more meaningful period-to-period comparisons

of our ongoing operating results.

JBT CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT

(Unaudited and in millions)

Three Months Ended September 30, 2018

(In millions)

JBT FoodTech

JBT AeroTech

Corporate

(Unallocated)

Consolidated

Operating profit

$

41.9

$

17.6

$

(22.9)

$

36.6

Restructuring expense

—

—

11.6

11.6

M&A related cost ⁽¹⁾

2.0

0.2

—

2.2

Adjusted operating profit

43.9

17.8

(11.3)

50.4

Depreciation and amortization

13.6

0.7

1.0

15.3

Adjusted EBITDA

$

57.5

$

18.5

$

(10.3)

$

65.7

Revenue

$

332.5

$

149.5

$

(0.1)

$

481.9

Operating profit %

12.6

%

11.8

%

7.6

%

Adjusted operating profit %

13.2

%

11.9

%

10.5

%

Adjusted EBITDA %

17.3

%

12.4

%

13.6

%

Nine Months Ended September 30, 2018

(In millions)

JBT FoodTech

JBT AeroTech

Corporate

(Unallocated)

Consolidated

Operating profit

$

110.8

$

40.2

$

(66.3)

$

84.7

Restructuring expense

—

—

32.8

32.8

M&A related cost ⁽¹⁾

3.8

0.2

—

4.0

Adjusted operating profit

114.6

40.4

(33.5)

121.5

Depreciation and amortization

38.8

2.2

2.1

43.1

Adjusted EBITDA

$

153.4

$

42.6

$

(31.4)

$

164.6

Revenue

$

997.7

$

384.6

$

0.1

$

1,382.4

Operating profit %

11.1

%

10.5

%

6.1

%

Adjusted operating profit %

11.5

%

10.5

%

8.8

%

Adjusted EBITDA %

15.4

%

11.1

%

11.9

%

Beginning in the first quarter of 2019, we changed our presentation of non-GAAP measures to exclude M&A related costs, specifically

amortization of inventory step up, integration costs, and transaction expenses. We evaluate operational performance and operating

trends after excluding certain expenses incurred to fulfill our acquisition strategy. M&A related costs are excluded from the prior year

results to conform to the current year presentation.

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 this information is helpful to investors because it allows more meaningful period-to-period comparisons

of our ongoing operating results.

JBT CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA BY SEGMENT FOR FISCAL YEAR 2018

(Unaudited and in millions)

Three Months Ended December 31, 2018

(In millions)

JBT FoodTech

JBT AeroTech

Corporate

(Unallocated)

Consolidated

Operating profit

$

58.7

$

23.9

$

(23.5)

$

59.1

Restructuring expense

—

—

14.2

14.2

M&A related cost

0.4

0.4

—

0.8

Adjusted operating profit

59.1

24.3

(9.3)

74.1

Depreciation and amortization

13.0

0.6

1.0

14.6

Adjusted EBITDA

$

72.1

$

24.9