John Bean Technologies Corporation (NYSE:JBT) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 02, 2018 • 10:00 am ET
Good morning, and welcome to JBT Corporation's First Quarter 2018 Earnings Conference Call. My name is Jodie, and I will be your operator today. At this time, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session (Operator Instructions). Thank you.
I will now turn the call over to JBT's Director of Investor Relations, Mr. Jeff Scipta, to begin today's conference.
Thank you, Jodie. Good morning, everyone. And welcome to our first quarter 2018 conference call. With me on the call are our Chairman, President and CEO, Tom Giacomini; and our Executive Vice President and CFO, Brian Deck.
Before we begin, I would like to remind everyone that forward-looking statements in today's call are subject to the safe harbor language in yesterday's press release and 8-K filing. JBT's periodic SEC filings also contain information regarding certain risk factors that may have an impact on our results. These documents are available on our Investor Relations Web site. Also, our discussion today includes references to certain non-GAAP measures. A reconciliation of these measures to the most comparable GAAP measure can be found on our Investor Relations Web site.
Now I'd like to turn the call over to Tom.
Thanks, Jeff. And good morning, all. As you read in the earnings release, our view of JBT's outlook in 2018 remains upbeat. With record orders and strong market conditions, we are on track to generate double-digit growth in revenue and adjusted earnings for the year.
Our restructuring program with well developed initiatives to significantly enhance our operating efficiency and profitability is underway. Although FoodTech margins fell short of expectations in the first quarter, we are confident in our ability to post significant improvement through the remaining three quarters of the year.
Let me turn the call over to Brian to review results for the quarter and the outlook for the year. Then I'll provide some details about restructuring, which will enable JBT to unlock the benefits of our expanded global size and scope as well as an update on our market conditions and the acquisition program. Brian?
Thanks, Tom. And good morning, everyone. JBT's first quarter headline EPS results were within the range of guidance we provided on the year end 2017 conference call. However, the components deviated from expectations on an operating basis and due to the January 1 adoption of the new ASC 606 revenue recognition standard. Generally speaking, JBT appears to be more affected by 606 than most industrials. As a refresher, the revenue recognition rules provide new guidance as to when large project revenues should be recorded at a point in time or on an over time basis, meaning over multiple periods.
JBT has elected to present information related to the new standard on a modified retrospective basis. For 2018 and each quarter, we will both pick up and lose revenue compared with legacy GAAP. We will be recognizing some revenues in 2018 that were previously recognized in 2017.