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

$132.0 to $137.0

Income tax provision

8.7

6.8

23.5

12.1

34.0 to 35.0

Interest expense, net

5.9

3.4

13.4

10.5

21.0 to 22.0

Depreciation and amortization

17.2

15.3

47.5

43.1

65.0 to 66.0

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

$

(8.3)

$

88.7

Revenue

$

363.7

$

173.5

$

0.1

$

537.3

Operating profit %

16.1

%

13.8

%

11.0

%

Adjusted operating profit %

16.2

%

14.0

%

13.8

%

Adjusted EBITDA %

19.8

%

14.4

%

16.5

%

Twelve Months Ended December 31, 2018

(In millions)

JBT FoodTech

JBT AeroTech

Corporate
(Unallocated)

Consolidated

Operating profit

$

169.5

$

64.1

$

(89.8)

$

143.8

Restructuring expense

—

—

47.0

47.0

M&A related cost

4.2

0.6

—

4.8

Adjusted operating profit

173.7

64.7

(42.8)

195.6

Depreciation and amortization

51.7

2.9

3.1

57.7

Adjusted EBITDA

$

225.4

$

67.6

$

(39.7)

$

253.3

Revenue

$

1,361.4

$

558.1

$

0.2

$

1,919.7

Operating profit %

12.5

%

11.5

%

7.5

%

Adjusted operating profit %

12.8

%

11.6

%

10.2

%

Adjusted EBITDA %

16.6

%

12.1

%

13.2

%

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. This historical information is being provided for
comparative purposes. We are providing this historical information for comparison purposes. 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in millions)

September 30,

December 31,

2019

2018

Cash and cash equivalents

$

49.1

$

43.0

Trade receivables, net

354.7

323.7

Inventories

264.0

206.1

Other current assets

57.3

45.7

Total current assets

725.1

618.5

Property, plant and equipment, net

264.5

239.7

Other assets

929.2

584.3

Total assets

$

1,918.8

$

1,442.5

Short-term debt and current portion of long-term debt

$

1.6

$

0.5

Accounts payable, trade and other

186.8

191.2

Advance and progress payments

116.5

145.8

Other current liabilities

167.9

147.8

Total current liabilities

472.8

485.3

Long-term debt, less current portion

768.7

387.1

Accrued pension and other postretirement benefits, less current portion

61.2

72.5

Other liabilities

92.4

40.7

Common stock and additional paid-in capital

227.6

226.9

Retained earnings

493.9

416.5

Accumulated other comprehensive loss

(197.8)

(186.5)

Total stockholders' equity

523.7

456.9

Total liabilities and stockholders' equity

$

1,918.8

$

1,442.5

JBT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in millions)

Nine Months Ended September 30,

2019

2018

Cash flows from operating activities:

Income from continuing operations

$

87.2

$

61.5

Adjustments to reconcile income to cash provided by operating activities:

Depreciation and amortization

47.5

43.1

Other

12.1

(16.0)

Changes in operating assets and liabilities:

Trade accounts receivable, net

(16.2)

(18.5)

Inventories

(18.5)

(49.2)

Accounts payable, trade and other

(12.8)

16.4

Advance and progress payments

(37.1)

17.3

Other - assets and liabilities, net

(27.1)

(28.0)

Cash provided by continuing operating activities

35.1

26.6

Cash required by discontinued operating activities

(0.2)

(0.6)

Cash provided by operating activities

34.9

26.0

Cash flows required by investing activities:

Acquisitions, net of cash acquired

(368.4)

(57.6)

Capital expenditures

(29.2)

(28.5)

Other

1.3

1.8

Cash required by investing activities

(396.3)

(84.3)

Cash flows provided by financing activities:

Net proceeds on credit facilities

388.1

107.4

Dividends

(9.5)

(9.8)

Other

(10.1)

(32.4)

Cash provided by financing activities

368.5

65.2

Effect of foreign exchange rate changes on cash and cash equivalents

(1.0)

(2.4)

(Decrease) increase in cash and cash equivalents

6.1

4.5

Cash and cash equivalents, beginning of period

43.0

34.0

Cash and cash equivalents, end of period

$

49.1

$

38.5

JBT CORPORATION

NON-GAAP FINANCIAL MEASURES

FREE CASH FLOW

(Unaudited and in millions)

Nine Months Ended
September 30,

2019

2018

Cash provided (required) by continuing operating activities

$

35.1

$

26.6

Less: capital expenditures

29.2

28.5

Plus: proceeds from sale of fixed assets

1.3

1.8

Plus: pension contributions

7.2

18.3

Free cash flow (FCF)

$

14.4

$

18.2

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 more comparable to payment of debt, and therefore exclude these contributions from the calculation of Free cash flow.

JBT CORPORATION

NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF DILUTED EARNINGS PER SHARE GUIDANCE TO ADJUSTED DILUTED 
EARNINGS PER SHARE GUIDANCE

(Unaudited and in cents)

Guidance

Full Year 2019

Diluted earnings per share from continuing operations

$4.10 - $4.20

Non-GAAP adjustments:

Restructuring expense ⁽¹⁾

0.40

M&A related costs⁽²⁾

0.66

Impact on tax provision from Non-GAAP adjustments⁽³⁾

(0.27)

Impact on tax provision from repatriation ⁽⁴⁾

(0.10)

Adjusted diluted earnings per share from continuing operations

(1) Restructuring expense is estimated to be approximately $12 - 15 million for full year 2019. 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 $22 million for full year 2019. The mid-point amount has been divided by our estimate of 32.1 million total shares and dilutive securities to derive earnings per share. 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.

(3) Impact on tax provision was calculated using the Company's effective tax rate of approximately 25%.

(4) We expect to include a discrete tax benefit related to repatriation of previously taxed income.

JBT CORPORATION

ADJUSTMENTS DUE TO ASC 606 BY SEGMENT FOR FISCAL YEAR 2018

(Unaudited and in millions)

As reported

Year-to-Date

Q1

Q2

Q3

Q4

December 31, 2018

Revenue

JBT FoodTech

$

303.6

$

361.6

$

332.5

$

363.7

$

1,361.4

JBT AeroTech

105.6

129.5

149.5

173.5

558.1

Other revenue and intercompany eliminations

—

0.2

(0.1)

0.1

0.2

Total revenue

$

409.2

$

491.3

$

481.9

$

537.3

$

1,919.7

Segment operating profit

JBT FoodTech

$

21.5

$

47.4

$

41.9

$

58.7

$

169.5

JBT AeroTech

7.9

14.7

17.6

23.9

64.1

Total segment operating profit

$

29.4

$

62.1

$

59.5

$

82.6

$

233.6

Adjustments due to ASC 606

Year-to-Date

Q1

Q2

Q3

Q4

December 31, 2018

Revenue

JBT FoodTech

$

(51.6)

$

(28.0)

$

(18.2)

$

(15.8)

$

(113.6)

JBT AeroTech

1.1

(3.6)

0.4

(11.4)

(13.5)

Other revenue and intercompany eliminations

—

—

—

—

—

Total revenue

$

(50.5)

$

(31.6)

$

(17.8)

$

(27.2)

$

(127.1)

Segment operating profit

JBT FoodTech

$

(13.1)

$

(6.0)

$

(3.7)

$

(1.2)

$

(24.0)

JBT AeroTech

0.1

(1.4)

(0.4)

(2.0)

(3.7)

Total segment operating profit

$

(13.0)

$

(7.4)

$

(4.1)

$

(3.2)

$

(27.7)

Amounts without adoption

Year-to-Date

Q1

Q2

Q3

Q4

December 31, 2018

Revenue

JBT FoodTech

$

252.0

$

333.6

$

314.3

$

347.9

$

1,247.8

JBT AeroTech

106.7

125.9

149.9

162.1

544.6

Other revenue and intercompany eliminations

—

0.2

(0.1)

0.1

0.2

Total revenue

$

358.7

$

459.7

$

464.1

$

510.1

$

1,792.6

Segment operating profit

JBT FoodTech

$

8.4

$

41.4

$

38.2

$

57.5

$

145.5

JBT AeroTech

8.0

13.3

17.2

21.9

60.4

Total segment operating profit

$

16.4

$

54.7

$

55.4

$

79.4

$

205.9