Orders grow 14% year-over-year to $430.8
million; GAAP Operating Income increased by 103% year-over-year;
Updates 2018 guidance
The Manitowoc Company, Inc. (NYSE: MTW), a leading global
manufacturer of cranes and lifting solutions, today reported
second-quarter net sales of $495.3 million and diluted EPS (“DEPS”)
on a GAAP basis of $0.27 and $0.40 on an adjusted basis.
Second-quarter orders of $430.8 million were up 14% from the
comparable period in 2017. Backlog totaled $692.1 million at
June 30, 2018, up 41% from the second-quarter 2017.
Second-quarter 2018 net sales were $495.3 million versus $394.6
million in the comparable period in 2017; a year-over-year increase
of 26%. The increase was attributable to improved crane shipments
across all regions, with the U.S. and European markets generating
the majority of the increase.
The Company reported operating income of $24.1 million as
compared to $11.9 million in the prior year. Income from continuing
operations of $9.9 million, or $0.27 per diluted share, in the
second-quarter 2018 versus $0.7 million, or $0.02 per diluted
share, in the second-quarter 2017. Adjusted income from continuing
operations(1) was $14.3 million, or $0.40 per diluted share, in the
second-quarter 2018 versus adjusted income from continuing
operations of $6.5 million, or $0.18 per diluted share, in the
comparable period of 2017. Adjusted EBITDA(1) for the
second-quarter 2018 was $37.5 million compared to $27.2 million in
the same period last year.
“I am very pleased with our continuing momentum in delivering
solid financial results using the principles of The Manitowoc Way.
We achieved our fifth consecutive quarter of year-over-year
improvement in adjusted EBITDA percentage, along with a 14 percent
year-over-year increase in orders. Our product revolution is real,
highlighted by the outstanding customer, dealer and investor
feedback from our Crane Days event held in June, 2018 at our Shady
Grove manufacturing facility,” commented Barry L. Pennypacker,
President and Chief Executive Officer of The Manitowoc Company,
Inc.
“Key markets continue to show signs of recovery, particularly in
North America. In spite of the well-documented increased input
costs such as tariffs and steel costs, we remain committed to
delivering on our financial targets and transforming Manitowoc into
a world-class crane manufacturer while continuing to improve the
returns for our shareholders. We have updated our EBITDA guidance
by narrowing the range as a result of better visibility for the
remainder of the year,” added Pennypacker.
Full-Year 2018 Guidance
Manitowoc updates its’ full-year 2018 financial guidance as
follows:
- Revenue – approximately $1.775 to
$1.850 billion;
- Adjusted EBITDA - approximately $105 to
$115 million;
- Depreciation - approximately $36
million;
- Restructuring expense - approximately
$13 to $15 million;
- Capital expenditures - approximately
$25 to $30 million; and
- Income tax expense - approximately $14
to $20 million.
Investor Conference Call
On Tuesday, August 7th, 2018, at 10:00 a.m. ET (9:00 a.m. CT),
The Manitowoc Company’s senior management will discuss its
second-quarter 2018 earnings results during a live conference call
for security analysts and institutional investors. A live audio
webcast of the call, along with the related presentation, can be
accessed in the Investor Relations section of Manitowoc’s website
at www.manitowoc.com. A replay of the conference call will also be
available at the same location on the website.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a leading global
manufacturer of cranes and lifting solutions with manufacturing,
distribution, and service facilities in 20 countries. Manitowoc is
recognized as one of the premier innovators and providers of
crawler cranes, tower cranes, and mobile cranes for the heavy
construction industry, which are complemented by a slate of
industry-leading aftermarket product support services. In 2017,
Manitowoc’s net sales totaled $1.6 billion, with over half
generated outside the United States.
Footnote
(1) Non-GAAP adjusted net income (loss) (“adjusted net income
(loss)”) and non-GAAP adjusted EBITDA (“adjusted EBITDA”) are
financial measures that are not in accordance with GAAP. For a
reconciliation to the comparable GAAP numbers please see schedule
of “Non-GAAP Financial Measures” at the end of this press release.
Manitowoc believes these non-GAAP financial measures provide
important supplemental information to both management and investors
regarding financial and business trends used in assessing its
results of operations. Manitowoc believes excluding specified items
provides a more meaningful comparison to the corresponding
reporting periods and internal budgets and forecasts, assists
investors in performing analysis that is consistent with financial
models developed by investors and research analysts, provides
management with a more relevant measure of operating performance
and is more useful in assessing management performance.
Forward-looking Statements
This press release includes “forward-looking statements”
intended to qualify for the safe harbor from liability under the
Private Securities Litigation Reform Act of 1995. Any statements
contained in this press release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on the current expectations of the management of the Company
and are subject to uncertainty and changes in circumstances.
Forward-looking statements include, without limitation, statements
typically containing words such as “intends,” “expects,”
“anticipates,” “targets,” “estimates,” and words of similar import.
By their nature, forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties
because they relate to events and depend on circumstances that will
occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements. Factors
that could cause actual results and developments to differ
materially include, among others:
• changes in economic or industry conditions generally or in the
markets served by Manitowoc;
• unanticipated changes in customer demand, including changes in
global demand for high-capacity lifting equipment, changes in
demand for lifting equipment in emerging economies, and changes in
demand for used lifting equipment;
• unanticipated changes in revenues, margins, costs, and capital
expenditures;
• the ability to increase operational efficiencies across
Manitowoc’s businesses and to capitalize on those efficiencies;
• the ability to significantly improve profitability;
• the risks associated with growth or contraction;
• changes in raw material and commodity prices;
• foreign currency fluctuation and its impact on reported
results and hedges in place with Manitowoc;
• the ability to focus on customers, new technologies, and
innovation;
• uncertainties associated with new product introductions, the
successful development and market acceptance of new and innovative
products that drive growth; and
• risks and factors detailed in Manitowoc's 2017 Annual Report
on Form 10-K and its other filings with the United States
Securities and Exchange Commission.
Manitowoc undertakes no obligation to update or revise
forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements only speak
as of the date on which they are made. Information on the potential
factors that could affect the Company's actual results of
operations is included in its filings with the Securities and
Exchange Commission, including but not limited to its Annual Report
on Form 10-K for the fiscal year ended December 31, 2017.
THE MANITOWOC COMPANY, INC.
Unaudited Consolidated Financial
Information
For the three and six months ended June
30, 2018 and 2017
($ in millions, except share data)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months
Ended Six Months Ended June 30, June
30, 2018 2017 2018
2017 Net sales $ 495.3 $ 394.6 $ 881.4
$ 700.4 Cost of sales 404.8 318.3
722.5 572.2 Gross profit 90.5
76.3 158.9 128.2
Operating costs and expenses:
Engineering, selling and administrative
expenses
62.1 58.4 122.5 119.8 Asset impairment expense 0.4 — 0.4 —
Amortization of intangible assets 0.1 0.3 0.2 0.7 Restructuring
expense 3.8 5.9 10.0 17.6 Other operating income - net —
(0.2 ) — — Total
operating costs and expenses 66.4 64.4
133.1 138.1 Operating income (loss)
24.1 11.9 25.8 (9.9 ) Other income (expense): Interest expense (9.4
) (9.7 ) (19.4 ) (19.8 ) Amortization of deferred financing fees
(0.4 ) (0.4 ) (0.9 ) (0.9 ) Other income (expense) - net
(5.6 ) 1.2 (2.9 ) (0.9 ) Total other
expense (15.4 ) (8.9 ) (23.2 ) (21.6 )
Income (loss) from continuing operations before taxes 8.7 3.0 2.6
(31.5 ) Provision (benefit) for taxes on income (1.2 )
2.3 2.7 3.8 Income (loss)
from continuing operations 9.9 0.7 (0.1 ) (35.3 ) Discontinued
operations: Loss from discontinued operations, net of income taxes
(0.2 ) (0.2 ) (0.2 ) (0.2 ) Net
income (loss) $ 9.7 $ 0.5 $ (0.3 ) $ (35.5 )
BASIC INCOME (LOSS) PER COMMON SHARE: Income (loss) from continuing
operations $ 0.28 $ 0.02 $ — $ (1.01 ) Loss from discontinued
operations, net of income taxes (0.01 ) (0.01 )
(0.01 ) — BASIC INCOME (LOSS) PER COMMON SHARE
$ 0.27 $ 0.01 $ (0.01 ) $ (1.01 ) DILUTED
INCOME (LOSS) PER COMMON SHARE: Income (loss) from continuing
operations $ 0.27 $ 0.02 $ — $ (1.01 ) Loss from discontinued
operations, net of income taxes (0.00 ) (0.01 )
(0.01 ) — DILUTED INCOME (LOSS) PER COMMON
SHARE $ 0.27 $ 0.01 $ (0.01 ) $ (1.01 )
Weighted average shares outstanding - Basic 35,530,356 35,109,426
35,449,298 35,065,173 Weighted average shares outstanding - Diluted
36,064,108 35,654,672 35,449,298 35,065,173
In the first-quarter of 2018, the Company adopted Accounting
Standards Update(“ASU”) 2017-07 “Compensation-Retirement Benefits
(Topic 715): Improving the Presentation of Net Periodic Pension
Cost and Net Periodic Postretirement Benefit Cost.” Under ASU
2017-07 the service component of pension costs is included in
Engineering, Selling and Administrative expenses while the other
components of pension costs are included in Other Income (Expense)
– Net on the income statement. This ASU was applied retrospectively
by adjusting the prior period financial statements.
MANITOWOC COMPANY, INC. Unaudited Consolidated
Financial Information
As of June 30, 2018 and December 31,
2017
($ in millions)
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2018
December 31, 2017 ASSETS Current
assets: Cash, cash equivalents and restricted cash $ 83.7 $ 123.0
Accounts receivable - net 210.2 179.2 Inventories - net 469.6 400.6
Notes receivable - net 24.9 31.1 Other current assets 57.8
56.5 Total current assets 846.2 790.4 Property, plant
and equipment - net 292.2 303.7 Intangible assets - net 437.5 443.4
Other long-term assets 62.4 70.3 TOTAL ASSETS
$ 1,638.3 $ 1,607.8
LIABILITIES & STOCKHOLDERS’
EQUITY Current liabilities: Accounts payable and accrued
expenses $ 433.0 $ 375.8 Short-term borrowings and current portion
of long-term debt 7.0 8.2 Product warranties 37.1 35.5 Customer
advances 15.3 12.7 Product liabilities 21.2
20.8 Total current liabilities 513.6 453.0 Non-current liabilities:
Long-term debt 265.4 266.7 Other non-current liabilities
193.3 210.6 Total non-current liabilities 458.7 477.3
Stockholders’ equity 666.0 677.5 TOTAL
LIABILITIES & STOCKHOLDERS’ EQUITY $ 1,638.3 $ 1,607.8
MANITOWOC COMPANY, INC. Unaudited
Consolidated Financial Information
For the six months ended June 30, 2018 and
2017
($ in millions)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended June 30,
2018 2017 Cash flows from
operations: Net income (loss) $ (0.3 ) $ (35.5 ) Depreciation 18.2
19.9 Asset impairment expense 0.4 — Other non-cash adjustments -
net (0.2 ) 5.2 Accounts receivable (286.6 ) (186.5 ) Inventories
(79.5 ) (37.3 ) Notes receivable 8.3 9.5 Other assets 0.3 (1.7 )
Accounts payable 69.2 46.8 Accrued expenses and other liabilities
(10.6 ) (11.1 ) Net cash used for operating
activities of continuing operations (280.8 ) (190.7 ) Net cash used
for operating activities of discontinued operations (0.2 )
(0.2 ) Net cash used for operating activities (281.0
) (190.9 ) Cash flows from investing: Capital expenditures
(15.2 ) (11.9 ) Proceeds from fixed assets 8.4 5.3 Cash receipts on
sold accounts receivable 250.7 146.3 Other —
0.2 Net cash provided by investing activities of continuing
operations 243.9 139.9 Net cash used for investing activities of
discontinued operations — — Net cash
provided by investing activities 243.9 139.9
Cash flows from financing: Proceeds from (payments on)
long-term debt- net (3.0 ) 5.5 Payments on notes financing - net —
(2.9 ) Exercise of stock options 2.0
2.9 Net cash provided by (used for) financing activities of
continuing operations
(1.0 ) 5.5 Net cash provided by financing activities of
discontinued
operations
— — Net cash provided by (used for)
financing activities (1.0 ) 5.5 Effect of
exchange rate changes on cash (1.2 ) 0.8 Net
decrease in cash, cash equivalents and restricted cash $ (39.3 ) $
(44.7 )
In the first-quarter of 2018, the Company adopted ASU No.
2016-15 - “Statement of Cash Flows (Topic 230): Classification of
Certain Cash Receipts and Cash Payments.” Under ASU 2016-15 cash
collections related to the deferred purchase price from the
Company’s accounts receivable securitization program are recorded
as cash flows from investing. Previously, cash collections related
to the deferred purchase price were recorded as cash flows from
operating activities. This ASU was applied retrospectively by
adjusting the prior period financial statements.
Non-GAAP Financial Measures
Non-GAAP Items
Non-GAAP adjusted income (loss) from continuing operations,
non-GAAP adjusted EBITDA and non-GAAP adjusted operating cash flows
are financial measures that are not in accordance with
GAAP. Manitowoc believes these non-GAAP financial measures
provide important supplemental information to both management and
investors regarding financial and business trends used in assessing
its results of operations. Manitowoc believes excluding
specified items provides a more meaningful comparison to the
corresponding reporting periods and internal budgets and forecasts,
assists investors in performing analysis that is consistent with
financial models developed by investors and research analysts,
provides management with a more relevant measure of operating
performance and is more useful in assessing management
performance.
Non-GAAP Adjusted Income (Loss) and Income (Loss) Per
Share from Continuing Operations ($ in millions, except share
data)
Three Months Ended
Six Months Ended June 30, June 30, 2018
2017 2018 2017
Income (loss) from continuing operations $ 9.9 $ 0.7 $ (0.1 ) $
(35.3 ) Special items: Asset impairment 0.4 — 0.4 — Restructuring
expense 3.8 5.9 10.0 17.6 Separation equity awards — (0.1 ) — — Tax
on special items 0.2 — 0.5
— Non-GAAP adjusted income (loss) from
continuing
operations
$ 14.3 $ 6.5 $ 10.8 $ (17.7 ) Diluted
income (loss) from continuing operations per share $ 0.27 $ 0.02 $
— $ (1.01 ) Special items, net of tax: Asset impairment 0.01 — 0.01
— Restructuring expense 0.11 0.16 0.28 0.50 Separation equity
awards — — — — Tax valuation allowance and one time tax items
0.01 — 0.01 0.01
Diluted non-GAAP adjusted income (loss) per share
from continuing operations
$ 0.40 $ 0.18 $ 0.30 $ (0.50 )
Non-GAAP Adjusted Operating Cash Flows ($ in millions,
except share data)
Six Months Ended June
30, 2018 2017 Net cash used for
operating activities: $ (281.0 ) $ (190.9 ) Cash receipts on sold
accounts receivable 250.7 146.3
Non-GAAP adjusted operating cash flows: (30.3 ) (44.6
)
Adjusted EBITDA and Non-GAAP Adjusted Operating Income
(loss)
The company defines adjusted EBITDA as earnings before interest,
taxes, depreciation and amortization, plus an addback of certain
restructuring charges. The reconciliation of GAAP net income (loss)
to adjusted EBITDA and adjusted operating income (loss) for the
current and previous four quarters, as well as the trailing twelve
months is as follows ($ in millions):
Trailing
Twelve 6/30/2018
3/31/2018 12/31/2017
9/30/2017 Months
Income (loss) from continuing operations $ 9.9 $ (10.0 ) $ 35.6 $
9.7 $ 45.2
Interest expense and amortization of
deferred financing fees
9.8 10.5 10.3 10.1 40.7 Provision (benefit) for taxes (1.2 ) 3.9
(40.2 ) (13.1 ) (50.6 ) Depreciation expense 9.1 9.1 9.0 9.2 36.4
Amortization of intangible assets 0.1
0.1 0.1 —
0.3 EBITDA 27.7 13.6 14.8 15.9 72.0 Restructuring
expense 3.8 6.2 5.9 3.7 19.6 Asset impairment expense 0.4 — 0.1 —
0.5 Other (income) expense - net (1) 5.6 (2.7
) 2.9 3.0 8.8 Adjusted
EBITDA 37.5 17.1 23.7 22.6 100.9 Depreciation expense (9.1 )
(9.1 ) (9.0 ) (9.2 ) (36.4 ) Non-GAAP
adjusted operating income (loss) 28.4 8.0 14.7 13.4 64.5
Restructuring expense (3.8 ) (6.2 ) (5.9 ) (3.7 ) (19.6 ) Asset
impairment expense (0.4 ) — (0.1 ) — (0.5 ) Amortization of
intangible assets (0.1 ) (0.1 ) (0.1 ) — (0.3 ) Other operating
income (expense) - net — — (0.1
) — (0.1 ) GAAP operating income (loss) $ 24.1
$ 1.7 $ 8.5 $ 9.7 $ 44.0
Adjusted EBITDA margin percentage 7.6 % 4.4 % 4.9 % 5.7 % 5.7 %
Non-GAAP adjusted operating income (loss)
margin percentage
5.7 % 2.1 % 3.1 % 3.4 % 3.7 %
(1) Other (income) expense - net includes foreign currency
translation adjustments, other components of net periodic pension
costs and other miscellaneous items.
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The Manitowoc Company, Inc.Ion WarnerVP, Marketing and Investor
Relations+1 414-760-4805
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