JBT - Earnings call transcript Q1 2024

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Operator

Good morning and welcome to JBT Corporation's First Quarter 2024 Earnings Conference Call. My name is Marvelou, and I will be your conference operator today.

As reminder, today's call is being recorded. [Operator Instructions] I will now turn the call over to JBT's Vice President of Corporate Development and Investor Relations, Kedric Meredith, to begin today's conference. Kedric, you may begin.

Kedric Meredith

Marvelou. you, Thank and call. everyone, our quarter first Good welcome conference XXXX morning, to With Chief is Deck; call me the on our Financial Matt and Officer, Executive Meister. Chief Brian Officer,

are Relations results. in yesterday's an that Investor release we in forward-looking of will filings In periodic filing. may These impact press website. available the regarding also the today's language statements have contain and call, information that documents our harbor are safe subject section JBT's use our SEC X-K on to factors risk

our today A website. can Relations to comparable Also, discussion certain Investor includes non-GAAP our measure reconciliation the references measures. GAAP be to the of measures found in of these section most

over Brian. the turn call I'll Now to

Brian Deck

period, outlined Thanks, Consistent a prior as adjusted Kedric, margins and we morning, commentary, XX JBT's in EBITDA good margin with lightest in compared with basis came expected. everyone. expansion previously first to seasonally continued the capture largely increase with period. point our year quarter,

in for of press stakeholders. significant announced belief offer. by industrial April X The of companies' which our on the of was diligence, between teams. voluntary our creation signed with and submittal agreement in a anticipation combination forward The takeover Based Directors, step shareholders logic in release, value and opportunities agreement Marel. Board the our confirms a also both extensive approved transaction a customers, it collaboration agreement, As other definitive the reflects represents of the we

we've and with in on to I'll market merger provide Marel. about through first Then our call poultry With speak the detail proposed Matt? that, about the you I'll recovery anticipated quarter turn Matt, progress greater who walk over made will the the performance. the

Matthew Meister

morning. Thanks, Brian, and good

$XXX first million, the an year-over-year. X% increase revenue was of our For quarter,

initiatives. of an progress chain XX.X%, basis our on Our cost benefits supply was saving by of of XXX margin in the actions points, restructuring and driven quarter primarily improvement the gross continued

adjusted the partially and the basis X% as $XX we incentive inflation in improvements Adjusted to XX.X% profit EBITDA in increased EBITDA increases offset points XX gross margin labor of year-over-year, million quarter. realized increased and compensation

we continued margin with From expansion. an pleased operating perspective, our are

As initiatives. our first that we approximately believe the opportunity quarter is chain realized logistics we terms supply have and JBT's $X for margin In from savings of alone, improvement in we discussed, spend. direct, indirect million of greatest

steady meaningful Additionally, positive and a improvement delivery businesses our This supply further effect allowing shift in suppliers. resources to efficiency, manufacturing their to on-time had by procurement we projects. our driven have a and activity and with on production seen supplier to consolidate actions additional key significant has JBT's productivity chain

First by EPS net quarter was in $X.XX about included EPS of contributed offset which added by well about our partially which $X.XX item $X.XX as improvement, share. improvements, as expense higher interest $X year. This discrete $X.XX per prior a $X.XX effective million for was the operational which per impacted a share tax versus share. rate positively approximately was per quarter, the adjusted of

reflect quarter slowest generally results year. first through remainder the our revenue the free seasonally of and cash quarter, in preparation our First our quarter flow the for is growth

XXX% While our rate to ability we do on still have working a free we cash excess capital flow work remained confident achieve in management, to of year. on the conversion full for

of second cumulative are savings recording XXXX, million. total quarter All-in, completed charges annual the rate run as -- million on we $XX of of the of $XX quarter our restructuring the we of exit to be track multiyear XXXX. first quarter As end program,

at represents $X.XX growth, and $X.XX, XX% adjusted EPS full to respectively. $XXX Regarding are $XXX XX% which year midpoint the we year-over-year outlook, adjusted our reiterating our million to guidance at XXXX for EBITDA at million and

to of X% growth revenue continue expect X%. to organic We

translation. account to range revenue total the foreign adjust exchange did current for we However, for expectations

estimated any updated have transaction revised for excluding costs, $X.XX $XX the our full contingent to are fees. we expectations for million for First, year, now to for range items: M&A be EPS guidance which we $X.XX of the a to GAAP following to million Additionally, $XX

net bridge income updated our tender impact the offer for million of secured $X expected forecast facility part our of credit from the includes interest Additionally, of Marel. as new

the we related of million in Finally, second tax actions. tax successful are $X forecasting between implementation discrete a of to internal million the planning quarter, $X benefit to

me call turn back the that, Brian. let to With

Brian Deck

softness we of issues XXXX have Thanks, timing North Matt. some booked business, quite in we market but our saying, that robust. the Orders as been market Separately, remains America. in reflected quarter order first select in experienced AGV

in And Corn while have improve. while input stable, poultry economics in pricing remained due has have price increased quarter, favorable of poultry the first from the wholesale the market more supply-demand recover to to costs continued industry orders dynamics. North didn't America that

hovering For now is example, bird the months benchmark $X X $X just breast large around versus meat less deboned ago. pound than per

second improved to the the that during will translate economics industry We poultry orders quarter. are optimistic

very of are We quote the by level activity. encouraged expanding

we for more output looking equipment, processes increase Producers and to dollars and margin seeing address downstream midstream Specifically, and to we further of secondary efficiency call are processing. are capture and deferred demand value-added investments. which their

Middle softened posted quarter. while orders America, Geographically, remained inbound as solid North a in in and discussed, East year-over-year Europe record

particular and we in convenience of fruit enjoyed strength processing end meals. terms In juice markets,

the Let proposed gears on merger Marel. updates with me provide and switch

the mentioned I our transaction the was major combining a in execution of earlier, companies. definitive As agreement X milestone

as opportunity the the heritage business. transaction, of culture with closer logic ever creation value important As the combined the the to the of industrial Marel's execution since as and meaningful preserving Marel agreement, including outlined opportunities. having is agreement, compelling the And in to on work advancing I'm confident transaction

launch. proposition, revenue service which improved to enhanced and expect We such offer we cross-selling, with the in an substantial value intend overall synergies to continue and analyze connection as communicate

work. cost sold come and we million cost XX% anticipate synergies, Regarding years X will upside expect our We of of $XXX expenses. cost XX% annual close to than from goods refine of benefits of approximately rate continue operating more for the from and we explore transaction approximately run within as synergies

standardizes company as In best-cost goods optimizes we sourcing. consolidates chain and meaningful sold, value-add, country expand combined cost terms of engineering to of components and procurement, value generate expect through processes the supply savings

also leverage combined We gain across production broader capacity efficiencies the footprint. expect and a to

to savings certain relates we to IT overlaps, resources. costs, from cost and it systems, OpEx, office realize expect back contracts including As public company third-party

we combined the Additionally, and R&D and resources selling for collective will impact have a leverage the greater company's to customer. service

and Form of Supervisory considerable proxy FSA. offer. expect plan required with the registration prospectus the offer In May, the Since we process Marel In or will S-X review required transaction of agreement, document Subject the on a prospectus. host initiated point, the launch of expect we and call. which At Iceland, file conditions approval on joint contain JBT of with the made we FSA, that a to to the and to by offer. progress launch announcement we the have documents the Authority transaction-specific to the the Financial investor promptly the to the takeover preliminary SEC, voluntary statement mid-April,

with the a have long-term pursue transaction. committed funds We a financing as closing for of and in fully structure offer secured bridge conventional the connection the required, facility financing guarantee takeover we'll to

antitrust notification listing, formal and final application in commence NASDAQ the the clearance hold to later of terms have we regulatory documents filing summer. approval Iceland the in work and S-X expect we In JBT's other for secondary we started streams, the shareholder the jurisdictions. pending summer, In comparable other filed the expect of U.S. by early work to vote SEC, in

our clearance for we year-end close overall the transaction. on continue to the transaction timetable plan regulatory the While process, remains primarily dependent of

that globe every we As our extend Marel sincere together around always, solutions work value-creating exceptional day. as thanks our of and also advance let extend me our the the to to deliver would like my to partners teams combination great our service businesses. I X appreciation to at to my customers

With that, questions. take Operator? let's your

Operator

line comes of Company. And Baird Instructions] Robert Dobre go Mig W. your Please first & [Operator with question the ahead. from

Joseph Grabowski

Joe Grabowski for It's this Mig morning. on

with the So and to would on with or your half to XX%, I I sales last of the me Correct that that on you the -- your half, confidence orders in X% I'm organic a right about bit half. second second the X% quarters, in gives the lift that. XX% the the sales in level first of first guidance, split, But wanted organic half guidance. what about sales imply second each that see of down seem start if guess, X% X you'll Based not little half?

Brian Deck

This I'll is that. Sure. to speak Brian.

into first So year-end have we here and strong foremost, as today. backlog a sit we going the

visibility have to in backlog delivery schedule do as the So that. and what's for already we the

industry. mentioned the Secondly, some next we course respect I to also our over the quarters with few say on as do poultry of the expect I'd improvements call, that,

that's general know, market. our you about As of XX%

through the progress improve So year we expect of that do here. as we to course the

us with the as to expected everything no modification in So Everything QX, we so out change for gears. any laying is really translation. expected played FX out need as the of slight

Joseph Grabowski

Okay. orders some the I Great. quarter. slide American to half of into those year? into of second risk doesn't recognized that of of any next the flowing drilling maybe guess market. prepared North that expected the in and the And The maybe level going to they're revenue start in the year poultry visibility some you deck And then end maybe get you in slip on kind remarks, second said just orders? the maybe is until there

Brian Deck

looked I that the here sit we always couple at we -- talking of as Well, we last were strong there's about certainly today, risk. quarters, if But pipeline. a did

quotes strong X Now Generally one We the are through lead really X quarter the as So we of slip things we're times next those talking always converting from it's couple can right? about months. quarters. go orders speaking, always our -- quotes, about to to to next.

your even numbers. third opportunity you and go still have the quarter So to into can meet

And business, accepting what's are right they're crazy our good. Honestly, conversations, of customers fundamentals just, up we're the money, quoting because really They've again, now. is which like is of making quotes. opened encouraging the the

frankly, think those matter So be in and from we'll there. And flow the beginning to to do expect don't full of see it's we that third a the -- rate quarter, quotes orders. run of quarter at into I second converted getting then activity but that really

Operator

next comes Seaport Walter line question with from And your Global. the of Liptak

Walter Liptak

ask of us into went a to some Can quarter? Are AGV? like the come that do -- April? just follow-on then poultry? April you anything Are how still comes maybe in, see any those April? with last about in the about with for timing wanted The starting to tell orders, And in the later same you those I to orders. of in thing they lift one

Brian Deck

Sure. don't month what quarter. than better first will couple within the guidance individual of got give quarter, is through But One, went a as things. prior. We tell I subsequent the the we on typically months you every

is in So the generally the quarter trend a do we confidence have good, whole. second as and

from, you or for shift in the that I say specifically, the closer million $XX if and On QX $XX was expect AGV strong the speaking, in certainly quarter, somewhere expect from million. actually quarter. to AGV $XX between second and we here miss generally will million second in We the a quarter AGV,

exception laying one that or So slip almost out again, expected of everything as the the so. AGV with million is essentially $XX of on

Walter Liptak

Great. just follow-on. then Okay. And maybe another

to, would be quarter? That could the better, you wasn't if You be that quarter mentioned like a what orders tough it should looked wonder Could period. that $XXX second not that thinking but be would good it you it's million, last the maybe orders. look Is year, we in which like back get that for orders means a -- about? when order flat comp second at I if looks full. say, I

Brian Deck

the tend one have on I do guidance to you revenue, specific and last continue numbers, had the to to Do quarter better a quarter. those the I a and we momentum comp expect look quarter so look, we individual bit tough. at very recall, year pharma is second backlog? the The on giving do. our versus certainly have I without trends, orders, tough I without focus question. we if because do it's little feel support Well, not any large just we in we

how see I things the feel I out. do But good certainly, improvement sequentially. about turn it, we'll So and expect

Walter Liptak

could think quotes us and if from sales. talk starting about you about ask I point to on pick I aftermarket. you Yes, data the down a year. one wonder great, the tell for get growth last I quarter about? shifted up poultry. the one aftermarket that, can there Okay. They we if in a I that's is rate is maybe And that, bit little talk about could that wonder last

Brian Deck

Sure.

somewhat we the mean. I -- sure. And it interesting so quarter, was an for would And reversion to say

had happen really revenue lower last equipment. you year, first if XX% -- It aftermarket. had we and our like high to of actually quarter we So recall, mix relatively was

XX% by declined and actually you amount sweating than we a revenue on had on the first aftermarket. more about of the started recall, quarter, again, tremendous customers grew X% refurbishments line would. last if the But assets equipment year, quarter as they and about aftermarket specifically otherwise This

basically mix, rates year again, do we're equipment actually, XX% is I strong us. growth at outpace the -- XX% But actually, for rest to back number recovery backlog. mean. So of and of rest the expect the the of quite for the generally the expect aftermarket for the I delivery to slightly a the year, as And

statement. you of but best -- our speaking, generally our aftermarket financial and resource, if kind So within remains probably will, stability

really it. well good feel super I hover range, about And this in we we're set. if So XX%

Operator

Walter we And queue. Instructions] [Operator the again on Liptak have

Walter Liptak

in you. half? cadence How the wholly for about quarter one the it What's think savings second the pretty Matt, maybe, should Is split? that? on and cost for the So we second

Matthew Meister

hit run end QX. in Well, by rate of $XX of we savings will million the the

expect I achieve out would expect But bit that So the would little majority the for end we that from savings to play of program, of QX. into be by our much there the that restructuring more pretty QX. to filters a

Walter Liptak

Great. right. And... Okay. All

Brian Deck

Yes. bit And just more to on color give a little that.

give Sorry, will say, at Generally a given color every perspective. than we every on quarter XXXX, sequentially supply bit be speaking, a and expect I to chain the better increase restructuring, if quarter activity, given XXXX margin it. look you you just to our in the from Walt, margins more margins, would little

Walter Liptak

put you're one Okay, info of percentage on Thanks all with revenue putting numbers any your try Marel sales you dollar as synergies us realize to great. idea Or could provide not come guidance? growth? synergies. if the for the plans the fruition? may of And you be to or a it for will the Is there a going amount Is cost-related to how I and on provide synergies. any synergies. on be But on are like going -- you future as able to through sales could I synergies

Brian Deck

we points. value the really Yes. would buckets. we leverage but and is would potential of We're target in dollar end would you itself, customer amount, More up, say, solutions make X we equipment And proposition we a it to terms basis there's intensely that see. X as speak. full-line of synergy give we working the pull-through of likely, We'll convert the just pretty I that on to opportunity one or that certainly, biggest this better can another's portfolio. But

solution would pull-through there on could a their on in exist the you examples, market. given that believe for well JBT into give the portioning, secondary waterjet leaders to right? Just Certainly, out known primary is and side, some we strength really a otherwise couple the side be feel the Marel's we're own. right? certainly We that of or customers the to wouldn't figure have

value an full-line pulling makes engineering solution helpful. perspective, from So that perspective, it really from a

on of the products, side, we -- we strong in side, hole particularly they're our the strong the overall the So we're the some portfolio. -- processing Marel where on a right? just FP in kind further leaders, but is that's very forming some but have side, opposite FP in on Similarly, exposure

that. to expect through So to able we pull would be

product the side. of So on those examples a just couple are

just capabilities, from large service tremendous our would service. of I think their overall, help to Also, this very we is continent, combined tremendous with that's together large better globe, X company, customers, improved with throughout service to the every say want them about uptime, efficiency, And the and bringing opportunity with see what service helping, their opportunity. our customers a side, on making a think capabilities we their the really our you and organizations those in hear bringing right, they

So the once opportunities other we call give get We'll of here those into the on do we are X very about as more on commercial some largest. shareholder feel the buckets But the good color joint the side. offer. we

Walter Liptak

great. Okay,

you those color Thank good. buckets. for Sounds providing on some

Operator

Brian That closing over I for turn concludes session. will Mr. remarks. our to call Deck the Q&A

Brian Deck

joining all us you morning. Thank for this

As always, follow-up available will Marlee Patrick have if you and questions. be any

Operator

today's conference concludes call. This

disconnect. may You now

JBT Marel (JBTM) 2 May 242024 Q1 Earnings call transcript