John Bean Technologies(JBT) - 2022 Q4 - Annual Report

Revenue and Financial Performance - Total revenue for 2022 increased by $297.7 million, or 15.9$282.0 million[171]. - The gross profit for 2022 was $617.3 million, representing a gross profit margin of 28.5$168.4 million, with an operating income margin of 7.8%, a decrease of 80 basis points from 8.6% in 2021[171]. - Net income for 2022 was $130.7 million, reflecting a 10.4$118.4 million in 2021[171]. - Total revenue for 2022 was $2,166.0 million, a 15.9$1,868.3 million in 2021, driven by growth in both FoodTech and AeroTech segments[179]. - FoodTech revenue increased by $190.2 million or 13.6$171.8 million and acquisition-related revenue growth of $93.5 million[180]. - AeroTech revenue rose by$108.2 million or 23.1% in 2022, attributed to higher sales in mobile equipment, fixed equipment, and service businesses[182]. - FoodTech operating profit increased by $24.5 million or 13.1$10.9 million or 33.4%[181][183]. - Total order backlog increased to $1,054.9 million as of December 31, 2022, up from$1,006.7 million in 2021, with expectations to convert 84% into revenue in 2023[187][188]. Recurring Revenue and Digital Solutions - Recurring revenue accounted for 47% of FoodTech total revenue and 38% of AeroTech total revenue in 2022[31]. - The company launched a new digital solution called OmniBlu™ in 2022, which is a subscription-based offering leveraging AI and predictive analytics[25]. - The company is investing in the OmniBlu™ digital solution to enhance customer access to parts and services, aiming to increase recurring revenue[164]. - Significant investments in the digital solution OmniBlu™ are expected, but development timelines may not align with market demands, risking competitive positioning[119]. Operational and Market Risks - The company faces business and operational risks that could lead to fluctuations in financial results, including volatility in demand and supply chain disruptions[61][62][63]. - Labor shortages and increased turnover rates have adversely affected the company's operations, leading to decreased efficiency and increased costs[74]. - Economic conditions, including lower growth rates and high unemployment, could negatively impact demand for the company's products and increase raw material costs[75]. - Variability in sales cycles makes revenue estimation difficult, resulting in significant fluctuations in quarterly operating results[77]. - Supply chain disruptions have led to longer lead times and increased raw material costs, which may materially affect the company's financial condition[79]. - High energy prices, particularly in Europe, are reducing customer profitability and could negatively impact the company's business and cash flows[80]. - Changes in food consumption patterns due to dietary trends may adversely affect demand for the company's products, impacting financial results[83]. - Natural disasters and adverse weather conditions could limit the availability of raw materials, negatively affecting the company's operations and financial condition[87]. - Cybersecurity risks pose threats to sensitive information and operational integrity, potentially leading to financial losses and regulatory costs[73]. Corporate Governance and Compliance - The company emphasizes a commitment to safety with a goal of "Zero Incidents, Worldwide, Every Day"[40]. - Compliance with U.S. government contract regulations is critical, as any non-compliance could result in significant sanctions and adversely impact operations[91]. - The company is subject to various U.S. and international laws, which may lead to uncertainties regarding compliance and potential liabilities[106]. - The company faces evolving expectations regarding environmental, social, and governance (ESG) issues, which could affect market valuation and customer retention[103]. Strategic Initiatives and Growth - The company is pursuing strategic acquisitions to achieve growth, which may involve additional debt and integration risks[111]. - Acquisitions are a focus for the company, targeting complementary products and technology solutions to enhance customer offerings[164]. - The company has taken steps to mitigate increased raw material costs through supply chain and strategic sourcing initiatives[36]. Financial Position and Capital Management - As of December 31, 2022, the company had total operating cash flow of $142.3 million and liquidity of$526.3 million[193][194]. - Cash provided by operating activities decreased by $83.4 million to$142.3 million in 2022 compared to 2021, primarily due to higher inventory investment and increased trade receivables[202]. - Cash required by investing activities increased by $143.2 million to$416.1 million in 2022, driven by higher acquisition and capital expenditure spending[203]. - Cash provided by financing activities rose by $189.8 million to$270.6 million in 2022, mainly due to increased borrowings for acquisitions[204]. - As of December 31, 2022, total contractual and other obligations amounted to $1,330.2 million, with long-term debt at$977.3 million and interest payments on long-term debt at $107.7 million[197]. - Approximately 34$987.1 million remained subject to floating interest rates, which could negatively impact earnings if rates increase[210]. Management and Workforce - The company has approximately 7,200 employees worldwide, with 56% located in the United States[39]. - Key personnel retention is critical for business growth, with potential impacts from the loss of senior management on strategic planning[63][65]. - The company actively invests in diversity, equity, inclusion, and belonging initiatives to foster innovation and a supportive work environment[41]. - JBT Corporation's executive team includes Brian A. Deck as President and CEO, Matthew J. Meister as CFO, and other key officers with extensive industry experience[50][51][52][53][54][55][56][57][58][59].