Manitowoc reports Net Sales of $355.6
million; Adjusted EBITDA(1) of $24.8 million
The Manitowoc Company, Inc. (NYSE: MTW), (the “Company” or
“Manitowoc”) a leading global manufacturer of cranes and lifting
solutions, today reported a third-quarter net loss of $(0.4)
million, or $(0.01) per diluted share. Third-quarter adjusted net
income(1) was $3.5 million, or $0.10 per diluted share.
Net sales in the third quarter decreased 20.6% year-over-year to
$355.6 million, favorably impacted by $7.4 million from changes in
foreign currency exchange rates. Adjusted EBITDA(1) of $24.8
million, or 7.0% of sales, declined $18.0 million year-over-year
mainly due to the lower sales in the quarter.
Third-quarter orders of $389.9 million increased 10.5% from the
prior year, favorably impacted by 1.7% due to changes in foreign
currency exchange rates. Backlog as of September 30, 2020 totaled
$464.8 million, approximately flat to prior year and an increase of
8.0% from June 30, 2020.
“Our third-quarter results were led by stronger than anticipated
orders. We continue to manage our costs and production schedules
tightly, and I was very pleased with our operational execution and
cash generation in the period. I thank our team for their
extraordinary effort in continuing to manage the headwinds due to
COVID-19 while exceeding our financial expectations,” commented
Aaron H. Ravenscroft, President and Chief Executive Officer of The
Manitowoc Company, Inc.
“We ended the third quarter with nearly $400 million of
liquidity. In spite of the challenging environment, we continue to
invest in the future. Our new product development programs remain
on-track, and we have begun to invest in organic strategies to grow
sales. Our balance sheet is strong, and we are prepared to pursue
acquisitions once the overall economic environment stabilizes. I am
confident in our long-term growth opportunities and ability to
increase shareholder value,” concluded Ravenscroft.
On March 27, 2020, the Company suspended guidance for 2020 as a
result of the significant uncertainty around the future impact that
COVID-19 would have on the Company’s end market demand and supply
chain. Although the significant uncertainty persists in the markets
the Company serves, line of sight to fourth-quarter results have
improved. Accordingly, the Company’s fourth-quarter forecast for
revenue is between $425.0 million and $450.0 million and between
$18.0 million and $23.0 million for adjusted EBITDA.
Investor Conference Call
The Manitowoc Company will host a conference call for security
analysts and institutional investors to discuss its third-quarter
earnings results on Thursday, November 5th, 2020, at 10:00 a.m. ET
(9:00 a.m. CT). A live audio webcast of the call, along with the
related presentation, published in conjunction with this press
release, 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.
The Manitowoc Company, Inc. was founded in 1902 and has over a
117-year tradition of providing high-quality, customer-focused
products and support services to its markets. Manitowoc is one of
the world's leading providers of engineered lifting solutions.
Manitowoc, through its wholly-owned subsidiaries, designs,
manufactures, markets, and supports comprehensive product lines of
mobile telescopic cranes, tower cranes, lattice-boom crawler cranes
and boom trucks under the Grove, Manitowoc, National Crane, Potain,
Shuttlelift and Manitowoc Crane Care brand names.
Footnote
(1)Adjusted net income (loss), adjusted diluted net income
(loss) per share, adjusted EBITDA, adjusted operating income,
adjusted operating cash flows and free cash flows 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:
• The negative impacts COVID-19 has had and will continue to
have on our business, financial condition, cash flows, results of
operations and supply chain, as well as customer demand (including
future uncertain impacts);
• actions of competitors;
• 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;
• geographic factors and political and economic conditions and
risks;
• the ability to capitalize on key strategic opportunities and
the ability to implement Manitowoc’s long-term initiatives;
• government approval and funding of projects and the effect of
government-related issues or developments;
• unanticipated changes in capital and financial markets;
• unanticipated changes in revenues, margins and costs;
• the ability to increase operational efficiencies across
Manitowoc and to capitalize on those efficiencies;
• the ability to significantly improve profitability; and
• risks and factors detailed in Manitowoc's 2019 Annual Report
on Form 10-K, as such were previously supplemented and amended in
Manitowoc’s Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2020 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, 2019, as
supplemented and amended in its Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 2020.
THE MANITOWOC COMPANY,
INC.
Unaudited Consolidated
Financial Information
For the three and nine months
ended September 30, 2020 and 2019
(In millions, except per share
and share amounts)
CONSOLIDATED STATEMENT OF
OPERATIONS
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net sales
$
355.6
$
448.0
$
1,013.1
$
1,370.7
Cost of sales
290.5
359.6
836.4
1,106.9
Gross profit
65.1
88.4
176.7
263.8
Operating costs and expenses:
Engineering, selling and administrative
expenses
49.5
54.8
155.1
164.7
Amortization of intangible assets
—
—
0.2
0.2
Restructuring expense
3.9
1.1
5.6
8.3
Total operating costs and expenses
53.4
55.9
160.9
173.2
Operating income
11.7
32.5
15.8
90.6
Other income (expense):
Interest expense
(7.3
)
(7.2
)
(21.7
)
(25.6
)
Amortization of deferred financing
fees
(0.4
)
(0.4
)
(1.1
)
(1.2
)
Loss on debt extinguishment
—
—
—
(25.0
)
Other income (expense) - net
2.6
(3.8
)
(4.3
)
8.8
Total other income (expense)
(5.1
)
(11.4
)
(27.1
)
(43.0
)
Income (loss) before income taxes
6.6
21.1
(11.3
)
47.6
Provision for income taxes
7.0
3.1
9.6
10.3
Net income (loss)
$
(0.4
)
$
18.0
$
(20.9
)
$
37.3
Per Share Data
Basic income (loss) per common share
$
(0.01
)
$
0.51
$
(0.60
)
$
1.05
Diluted income (loss) per common share
$
(0.01
)
$
0.51
$
(0.60
)
$
1.05
Weighted average shares outstanding -
basic
34,538,814
35,348,597
34,730,623
35,527,971
Weighted average shares outstanding -
diluted
34,538,814
35,458,956
34,730,623
35,686,831
THE MANITOWOC COMPANY,
INC.
Unaudited Consolidated
Financial Information
As of September 30, 2020 and
December 31, 2019
(In millions, except share
amounts)
CONSOLIDATED BALANCE SHEETS
September 30, 2020
December 31, 2019
Assets
Current Assets:
Cash and cash equivalents
$
101.1
$
199.3
Accounts receivable, less allowances of
$8.4 and $7.9, respectively
184.1
168.3
Inventories — net
526.7
461.4
Notes receivable — net
14.3
17.4
Other current assets
32.3
26.0
Total current assets
858.5
872.4
Property, plant and equipment — net
281.3
289.9
Operating lease right-of-use assets
41.7
47.6
Goodwill
233.2
232.5
Other intangible assets — net
118.8
116.3
Other non-current assets
57.4
59.0
Total assets
$
1,590.9
$
1,617.7
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts payable and accrued expenses
$
342.2
$
340.8
Short-term borrowings and current portion
of long-term debt
3.7
3.8
Product warranties
46.1
47.2
Customer advances
23.1
25.8
Other liabilities
22.8
23.3
Total current liabilities
437.9
440.9
Non-Current Liabilities:
Long-term debt
306.8
308.4
Operating lease liabilities
32.4
37.6
Deferred income taxes
7.5
5.5
Pension obligations
84.8
86.4
Postretirement health and other benefit
obligations
15.4
16.4
Long-term deferred revenue
28.8
30.3
Other non-current liabilities
47.6
46.3
Total non-current liabilities
523.3
530.9
Stockholders' Equity:
Preferred stock (authorized 3,500,000
shares of $.01 par value; none outstanding)
—
—
Common stock (75,000,000 shares
authorized, 40,793,983 shares issued, 34,558,608
and 35,374,537 shares outstanding,
respectively)
0.4
0.4
Additional paid-in capital
594.9
592.2
Accumulated other comprehensive loss
(109.1
)
(121.0
)
Retained earnings
215.1
236.2
Treasury stock, at cost (6,235,375 and
5,419,446 shares, respectively)
(71.6
)
(61.9
)
Total stockholders' equity
629.7
645.9
Total liabilities and stockholders'
equity
$
1,590.9
$
1,617.7
THE MANITOWOC COMPANY,
INC.
Unaudited Consolidated
Financial Information
For the three and nine months
ended September 30, 2020 and 2019
(In millions)
CONSOLIDATED STATEMENT OF CASH
FLOWS
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Cash Flows from Operating
Activities:
Net income (loss)
$
(0.4
)
$
18.0
$
(20.9
)
$
37.3
Adjustments to reconcile net income (loss)
to cash provided
by (used for) operating activities:
Depreciation
9.2
8.9
27.3
26.3
Amortization of intangible assets
—
—
0.2
0.2
Amortization of deferred financing
fees
0.4
0.4
1.1
1.2
Loss on debt extinguishment
—
—
—
25.0
(Gain) loss on sale of property, plant and
equipment
—
(3.5
)
—
(3.5
)
Other
(0.4
)
2.7
5.5
8.7
Changes in operating assets and
liabilities
Accounts receivable
(7.5
)
38.4
(13.9
)
(184.2
)
Inventories
18.1
19.1
(55.3
)
(87.4
)
Notes receivable
0.6
1.8
6.2
(0.5
)
Other assets
(0.7
)
(11.3
)
(7.1
)
14.8
Accounts payable
1.3
(59.5
)
(5.2
)
(37.4
)
Accrued expenses and other liabilities
7.2
22.5
(8.8
)
1.6
Net cash provided by (used for) operating
activities
27.8
37.5
(70.9
)
(197.9
)
Cash Flows from Investing
Activities:
Capital expenditures
(7.3
)
(12.7
)
(15.3
)
(22.4
)
Proceeds from sale of fixed assets
0.1
12.4
0.2
17.2
Cash receipts on sold accounts
receivable
—
—
—
126.3
Net cash provided by (used for) investing
activities
(7.2
)
(0.3
)
(15.1
)
121.1
Cash Flows from Financing
Activities:
Proceeds from revolving credit
facility
—
48.6
50.0
131.4
Payments on revolving credit facility
(50.0
)
(48.6
)
(50.0
)
(131.4
)
Payments on long-term debt
—
—
—
(276.6
)
Proceeds from long-term debt
—
—
—
300.0
Other debt - net
(1.2
)
(4.7
)
(2.7
)
(2.8
)
Debt issuance costs
—
(0.1
)
—
(8.3
)
Exercise of stock options
—
0.1
0.1
0.2
Common stock repurchases
—
—
(12.0
)
(7.4
)
Net cash provided by (used for) financing
activities
(51.2
)
(4.7
)
(14.6
)
5.1
Effect of exchange rate changes on cash
and cash equivalents
3.4
—
2.4
(1.1
)
Net increase (decrease) in cash and cash
equivalents
$
(27.2
)
$
32.5
$
(98.2
)
$
(72.8
)
Non-GAAP Financial Measures
Non-GAAP Items
Adjusted net income (loss), adjusted diluted net income (loss)
per share, adjusted EBITDA, adjusted operating income, adjusted
operating cash flows and free 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.
Reconciliation of Adjusted Net Income
(Loss) to Net Income (Loss)
(in millions, except per share
amounts)
Three Months Ended
September 30,
2020
2019
As reported
Adjustments
Adjusted
As reported
Adjustments
Adjusted
Gross profit
$
65.1
$
—
$
65.1
$
88.4
$
—
$
88.4
Engineering, selling and
administrative
expenses (1)
(49.5
)
—
(49.5
)
(54.8
)
0.3
(54.5
)
Restructuring expense (2)
(3.9
)
3.9
—
(1.1
)
1.1
—
Operating income
11.7
3.9
15.6
32.5
1.4
33.9
Interest expense
(7.3
)
—
(7.3
)
(7.2
)
—
(7.2
)
Amortization of deferred financing
fees
(0.4
)
—
(0.4
)
(0.4
)
—
(0.4
)
Other income (expense) - net
2.6
—
2.6
(3.8
)
—
(3.8
)
Income before income taxes
6.6
3.9
10.5
21.1
1.4
22.5
Provision for income taxes (3)
(7.0
)
—
(7.0
)
(3.1
)
(0.3
)
(3.4
)
Net income (loss)
$
(0.4
)
$
3.9
$
3.5
$
18.0
$
1.1
$
19.1
Diluted net income (loss) per share
$
(0.01
)
$
0.10
$
0.51
$
0.54
(1)
The adjustment in 2019 relates to other
non-recurring items.
(2)
The adjustment in 2020 and 2019 represents
the add back of restructuring related charges.
(3)
The adjustment in 2019 represents the net
income tax impact of items (1) and (2).
Nine Months Ended
September 30,
2020
2019
As reported
Adjustments
Adjusted
As reported
Adjustments
Adjusted
Gross profit
$
176.7
$
—
$
176.7
$
263.8
$
—
$
263.8
Engineering, selling and
administrative
expenses (1)
(155.1
)
—
(155.1
)
(164.7
)
0.3
(164.4
)
Amortization of intangible assets
(0.2
)
—
(0.2
)
(0.2
)
—
(0.2
)
Restructuring expense (2)
(5.6
)
5.6
—
(8.3
)
8.3
—
Operating income
15.8
5.6
21.4
90.6
8.6
99.2
Interest expense
(21.7
)
—
(21.7
)
(25.6
)
—
(25.6
)
Amortization of deferred financing
fees
(1.1
)
—
(1.1
)
(1.2
)
—
(1.2
)
Loss on debt extinguishment (3)
—
—
—
(25.0
)
25.0
—
Other income (expense) - net (4)
(4.3
)
—
(4.3
)
8.8
(15.5
)
(6.7
)
Income (loss) before income
taxes
(11.3
)
5.6
(5.7
)
47.6
18.1
65.7
Provision for income taxes (5)
(9.6
)
(3.7
)
(13.3
)
(10.3
)
(0.7
)
(11.0
)
Net income (loss)
$
(20.9
)
$
1.9
$
(19.0
)
$
37.3
$
17.4
$
54.7
Diluted income (loss) per share
$
(0.60
)
$
(0.55
)
$
1.05
$
1.53
(1)
The adjustment in 2019 relates to other
non-recurring items.
(2)
The adjustment in 2020 and 2019 represents
the add back of restructuring related charges.
(3)
The adjustment in 2019 represents the
removal of charges related to the Company’s refinancing of its
previous asset based lending revolving credit facility and senior
secured second lien notes.
(4)
The adjustment in 2019 represents the
removal of a gain associated with the settlement of a legal
matter.
(5)
The adjustment in 2020 represents the net
income tax impact of item (2) and the removal of an income tax
benefit related to the Coronavirus Aid, Relief and Economic
Security Act. The adjustment in 2019 represents the net income tax
impact of items (1) through (4).
Adjusted Operating Cash Flows and Free Cash Flows
(In millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net cash provided by (used for)
operating
activities
$
27.8
$
37.5
$
(70.9
)
$
(197.9
)
Cash receipts on sold accounts
receivable
—
—
—
126.3
Net payments on accounts
receivable securitization program
—
—
—
75.0
Adjusted operating cash flows
27.8
37.5
(70.9
)
3.4
Capital expenditures
(7.3
)
(12.7
)
(15.3
)
(22.4
)
Free cash flows
$
20.5
$
24.8
$
(86.2
)
$
(19.0
)
Adjusted EBITDA and Adjusted Operating Income
The Company defines adjusted EBITDA as earnings before interest,
income taxes, depreciation and amortization, plus an addback of
certain restructuring and other charges. The reconciliation of net
income (loss) to adjusted EBITDA and operating income to adjusted
operating income for the three and nine months ended September 30,
2020 and 2019 and trailing twelve months, is as follows. All dollar
amounts are in millions of dollars:
Three Months Ended
September 30,
Nine Months Ended
September 30,
Trailing
Twelve
2020
2019
2020
2019
Months
Net income (loss)
$
(0.4
)
$
18.0
$
(20.9
)
$
37.3
$
(11.7
)
Interest expense and amortization of
deferred
financing fees
7.7
7.6
22.8
26.8
30.2
Provision for income taxes
7.0
3.1
9.6
10.3
11.7
Depreciation expense
9.2
8.9
27.3
26.3
36.0
Amortization of intangible assets
—
—
0.2
0.2
0.3
EBITDA
23.5
37.6
39.0
100.9
66.5
Restructuring expense
3.9
1.1
5.6
8.3
7.1
Loss on debt extinguishment
—
—
—
25.0
—
Other non-recurring charges (1)
—
0.3
—
0.3
2.8
Other (income) expense - net (2)
(2.6
)
3.8
4.3
(8.8
)
3.4
Adjusted EBITDA
24.8
42.8
48.9
125.7
79.8
Depreciation expense
(9.2
)
(8.9
)
(27.3
)
(26.3
)
(36.0
)
Amortization of intangible assets
—
—
(0.2
)
(0.2
)
(0.3
)
Adjusted operating income
15.6
33.9
21.4
99.2
43.5
Restructuring expense
(3.9
)
(1.1
)
(5.6
)
(8.3
)
(7.1
)
Other non-recurring charges
—
(0.3
)
—
(0.3
)
(2.8
)
Operating income
$
11.7
$
32.5
$
15.8
$
90.6
$
33.6
Adjusted EBITDA margin percentage
7.0
%
9.6
%
4.8
%
9.2
%
5.4
%
Adjusted operating income margin
percentage
4.4
%
7.6
%
2.1
%
7.2
%
2.9
%
(1)
Other non-recurring charges for the
trailing twelve months includes losses from a long-term note
receivable resulting from the 2014 divestiture of the Company’s
Chinese joint venture recorded in the fourth quarter of 2019. Other
non-recurring charges for the three and nine months ended September
30, 2019 includes other charges included in engineering, selling
and administrative expenses.
(2)
Other (income) expense - net includes the
settlement of a legal matter in 2019, along with net foreign
currency gains (losses), other components of net periodic pension
costs and other miscellaneous items recorded in 2020 and 2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201104005728/en/
Ion Warner VP, Marketing and Investor Relations +1
414-760-4805
Manitowoc (NYSE:MTW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Manitowoc (NYSE:MTW)
Historical Stock Chart
From Apr 2023 to Apr 2024