The Manitowoc Company Reports Second-Quarter 2017 Financial Results
- Orders Grow 9% year over year
- Revenue in line with consensus
- GAAP EPS of $0.00
- Adjusted EPS of $0.05
- Improves full-year guidance
The Manitowoc Company, Inc. (NYSE: MTW), a leading global manufacturer of cranes and lifting solutions, today reported
second-quarter net sales of $394.6 million, diluted EPS on a GAAP basis of breakeven and $0.05 on an adjusted basis.
Second-quarter orders of $379.5 million, which included the initial production order related to the U.S. Army contract, were up
9% from the comparable period in 2016. Backlog totaled $491.2 million at June 30, 2017, up 25%, from the second-quarter 2016 ending
backlog of $393.5 million.
Second-quarter 2017 net sales were $394.6 million versus $457.7 million in the comparable period in 2016. The majority of the
year-over-year decline was attributable to lower crawler crane shipments in the Americas as the Company shipped a significant
volume of these cranes in the prior year, and lower Rough-terrain crane shipments primarily in the Americas and the Middle-East,
mainly due to continued weakness in oil and gas market demand.
The Company reported net income from continuing operations of $0.7 million, or $0.00 per diluted share, in the second-quarter
2017 versus a net loss from continuing operations of $(5.0) million, or $(0.04) per diluted share, in the second-quarter 2016.
Non-GAAP adjusted net income from continuing operations(1) was $6.5 million, or $0.05 per diluted share, in the
second-quarter 2017 versus $3.9 million, or $0.03 per diluted share, in the comparable period of 2016. Non-GAAP adjusted
EBITDA(1) for the second-quarter 2017 was $25.2 million compared to $25.3 million in the same period last year.
“We are very pleased with our second-quarter performance as we made considerable progress in consolidating our manufacturing
footprint and reducing the cost of our organizational structure. We delivered $0.05 of adjusted EPS and our adjusted EBITDA
(1) was flat year-over-year despite a $63 million decline in revenue. Considering our year-to-date performance and
future market outlook, we have improved our full year 2017 guidance. This underscores that our team can deliver improved results
using the principles of The Manitowoc Way. The relocation of our crawler crane production is complete, on time and under budget,”
commented Barry L. Pennypacker, President and Chief Executive Officer of The Manitowoc Company, Inc.
“In the second-quarter we have seen order improvement in most product categories except lattice boom crawler cranes. We have
experienced pockets of improved demand in specific markets like the Permian and Eagle Ford basins in North America. European
markets continue to experience moderate growth, mainly in residential and non-residential construction markets, partly offset by
continued weakness in the Middle-East,” said Pennypacker.
“While we remain cautiously optimistic in the near term, we continue to focus on delivering value through innovative products
that provide superior return on invested capital for our customers. In these challenging times, we are maintaining our disciplined
adherence to The Manitowoc Way, positioning us to achieve our long-term target of double-digit operating margins by 2020 and
becoming the leading global crane company as the market recovers,” concluded Pennypacker.
Full-Year 2017 Guidance
Manitowoc is updating its full year 2017 financial guidance as follows:
- Revenue – down approximately 5-7% year-over-year;
- Adjusted EBITDA – approximately $59 to $69 million;
- Depreciation – approximately $40 million;
- Capital expenditures – approximately $30 million; and
- Income tax expense – approximately $7 to $10 million.
The Company provides guidance on a non-GAAP basis as there is uncertainty in the timing and magnitude of future charges that
would be included in the reported GAAP results.
Investor Conference Call
On Tuesday, August 8th, 2017, at 10:00 a.m. ET (9:00 a.m. CT), The Manitowoc Company’s senior management will discuss its
second-quarter 2017 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 2016, Manitowoc’s net sales totaled $1.6 billion, with over half
generated outside the United States.
Footnote
(1) Non-GAAP adjusted net income (loss) from continuing operations 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:
- unanticipated changes in revenues, margins, costs, and capital expenditures;
- the ability to significantly improve profitability;
- potential delays or failures to implement specific initiatives within the restructuring
program;
- issues relating to the ability to timely and effectively execute on manufacturing strategies,
including issues relating to plant closings, new plant start-ups, and/or consolidations of existing facilities and operations,
and its ability to achieve the expected benefits from such actions, as well as general efficiencies and capacity utilization of
our facilities;
- the ability to direct resources to those areas that will deliver the highest returns;
- uncertainties associated with new product introductions, the successful development and market
acceptance of new and innovative products that drive growth;
- the ability to focus on the customer, new technologies, and innovation;
- the ability to focus and capitalize on product quality and reliability;
- the ability to increase operational efficiencies across Manitowoc’s business segment and to
capitalize on those efficiencies;
- the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s
long-term initiatives;
- the ability to generate cash and manage working capital consistent with Manitowoc’s stated
goals;
- the ability to convert order and order activity into sales and the timing of those sales;
- pressure of financing leverage;
- foreign currency fluctuations and their impact on reported results and hedges in place with
Manitowoc;
- changes in raw material and commodity prices;
- unexpected issues associated with the quality and availability of materials and components sourced
from first parties and the resolution of those issues;
- unexpected issues associated with the availability, operations and viability of
suppliers;
- the risks associated with growth and contraction;
- geographic factors and political and economic conditions and risks;
- 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;
- global expansion of customers;
- the replacement cycle of technologically obsolete cranes;
- the ability of Manitowoc's customers to receive financing;
- issues related to workforce reductions and subsequent rehiring;
- work stoppages, labor negotiations, labor rates, and temporary labor costs;
- government approval and funding of projects and the effect of government-related issues or
developments;
- the ability to complete and appropriately integrate restructurings, consolidations, acquisitions,
divestitures, strategic alliances, joint ventures, and other strategic alternatives;
- realization of anticipated earnings enhancements, cost savings, strategic options and other
synergies, and the anticipated timing to realize those savings, synergies, and options;
- impairment of goodwill and/or intangible assets;
- unanticipated issues affecting the effective tax rate for the year;
- unanticipated changes in the capital and financial markets;
- risks related to actions of activist shareholders;
- changes in laws throughout the world;
- natural disasters disrupting commerce in one or more regions of the world;
- risks associated with data security and technological systems and protections;
- acts of terrorism; and
- risks and other factors cited in Manitowoc's 2016 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,
2016.
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| THE MANITOWOC COMPANY, INC. |
| Unaudited Consolidated Financial Information |
| For the Three and Six Months Ended June 30, 2017 and 2016 |
| ($ in millions, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
394.6 |
|
|
$ |
457.7 |
|
|
$ |
700.4 |
|
|
$ |
885.1 |
|
| Cost of sales |
|
|
318.3 |
|
|
|
370.4 |
|
|
|
572.2 |
|
|
|
718.1 |
|
|
Gross profit |
|
|
76.3 |
|
|
|
87.3 |
|
|
|
128.2 |
|
|
|
167.0 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
Engineering, selling and administrative expenses |
|
|
60.4 |
|
|
|
73.4 |
|
|
|
123.7 |
|
|
|
145.8 |
|
|
Amortization of intangible assets |
|
|
0.3 |
|
|
|
0.8 |
|
|
|
0.7 |
|
|
|
1.5 |
|
|
Restructuring expense |
|
|
5.9 |
|
|
|
8.8 |
|
|
|
17.6 |
|
|
|
13.2 |
|
|
Other operating (income) expense - net |
|
|
(0.2 |
) |
|
|
0.4 |
|
|
|
- |
|
|
|
1.8 |
|
|
|
Total operating costs and expenses |
|
|
66.4 |
|
|
|
83.4 |
|
|
|
142.0 |
|
|
|
162.3 |
|
| Operating income (loss) |
|
|
9.9 |
|
|
|
3.9 |
|
|
|
(13.8 |
) |
|
|
4.7 |
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(9.7 |
) |
|
|
(9.9 |
) |
|
|
(19.8 |
) |
|
|
(19.6 |
) |
|
Amortization of deferred financing fees |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.9 |
) |
|
|
(1.3 |
) |
|
Loss on debt extinguishment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(76.3 |
) |
|
Other income - net |
|
|
3.2 |
|
|
|
2.1 |
|
|
|
3.0 |
|
|
|
3.2 |
|
|
|
Total other expense |
|
|
(6.9 |
) |
|
|
(8.2 |
) |
|
|
(17.7 |
) |
|
|
(94.0 |
) |
| Income (loss) from continuing operations before taxes |
|
|
3.0 |
|
|
|
(4.3 |
) |
|
|
(31.5 |
) |
|
|
(89.3 |
) |
| Provision for taxes on income |
|
|
2.3 |
|
|
|
0.7 |
|
|
|
3.8 |
|
|
|
108.4 |
|
| Income (loss) from continuing operations |
|
|
0.7 |
|
|
|
(5.0 |
) |
|
|
(35.3 |
) |
|
|
(197.7 |
) |
| Discontinued operations: |
|
|
|
|
|
|
|
|
| Loss from discontinued operations, net of income taxes |
|
|
(0.2 |
) |
|
|
(0.8 |
) |
|
|
(0.2 |
) |
|
|
(4.0 |
) |
| Net income (loss) |
|
$ |
0.5 |
|
|
$ |
(5.8 |
) |
|
$ |
(35.5 |
) |
|
$ |
(201.7 |
) |
| BASIC INCOME (LOSS) PER COMMON SHARE: |
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations |
|
$ |
0.00 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.44 |
) |
| Loss from discontinued operations, net of income taxes |
|
|
(0.00 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
|
|
(0.03 |
) |
| BASIC INCOME (LOSS) PER COMMON SHARE |
|
$ |
0.00 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.47 |
) |
| DILUTED INCOME (LOSS) PER COMMON SHARE: |
|
|
|
|
|
|
| Income (loss) from continuing operations |
|
$ |
0.00 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.44 |
) |
| Loss from discontinued operations, net of income taxes |
|
|
(0.00 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
|
|
(0.03 |
) |
| DILUTED INCOME (LOSS) PER COMMON SHARE |
|
$ |
0.00 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.47 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding - Basic |
|
|
140,437,702 |
|
|
|
137,138,220 |
|
|
|
140,260,690 |
|
|
|
136,869,066 |
|
| Weighted average shares outstanding - Diluted |
|
|
142,618,685 |
|
|
|
137,138,220 |
|
|
|
140,260,690 |
|
|
|
136,869,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In the fourth-quarter of 2016, the Company changed its method of
inventory costing for certain inventory to the FIFO method from the LIFO method. The Company applied this change in method of
inventory costing by retrospectively adjusting the prior period financial statements. |
| |
|
|
|
|
|
| THE MANITOWOC COMPANY, INC. |
| Unaudited Consolidated Financial Information |
| As of June 30, 2017 and December 31, 2016 |
| ($ in millions) |
| BALANCE SHEET |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
| ASSETS |
|
2017 |
|
2016 |
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
26.3 |
|
$ |
69.9 |
| Accounts receivable - net |
|
|
181.6 |
|
|
134.4 |
| Inventories - net |
|
|
476.2 |
|
|
429.0 |
| Notes receivable - net |
|
|
47.0 |
|
|
62.4 |
| Other current assets |
|
|
55.4 |
|
|
54.0 |
|
Total current assets |
|
|
786.5 |
|
|
749.7 |
| Property, plant and equipment - net |
|
|
313.7 |
|
|
308.8 |
| Intangible assets - net |
|
|
431.2 |
|
|
413.7 |
| Other long-term assets |
|
|
44.3 |
|
|
45.6 |
|
|
|
|
|
|
| TOTAL ASSETS |
|
$ |
1,575.7 |
|
$ |
1,517.8 |
|
|
|
|
|
|
| LIABILITIES & STOCKHOLDERS' EQUITY |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable and accrued expenses |
|
$ |
370.9 |
|
$ |
321.2 |
| Short-term borrowings and current portion of long-term debt |
|
|
11.0 |
|
|
12.4 |
| Product warranties |
|
|
32.5 |
|
|
36.5 |
| Customer advances |
|
|
23.0 |
|
|
21.0 |
| Product liabilities |
|
|
22.3 |
|
|
21.7 |
|
Total current liabilities |
|
|
459.7 |
|
|
412.8 |
| Non-current liabilities: |
|
|
|
|
| Long-term debt |
|
|
278.1 |
|
|
269.1 |
| Other non-current liabilities |
|
|
241.8 |
|
|
245.4 |
|
Total non-current liabilities |
|
|
519.9 |
|
|
514.5 |
| Stockholders' equity |
|
|
596.1 |
|
|
590.5 |
| TOTAL LIABILITIES & |
|
|
|
|
| STOCKHOLDERS' EQUITY |
|
$ |
1,575.7 |
|
$ |
1,517.8 |
|
|
|
|
|
|
| In the fourth-quarter of 2016, the Company changed its method of
inventory costing for certain inventory to the FIFO method from the LIFO method. The Company applied this change in method of
inventory costing by retrospectively adjusting the prior period financial statements. |
| |
| THE MANITOWOC COMPANY, INC. |
| Unaudited Consolidated Financial Information |
| For the Three and Six Months Ended June 30, 2017 and 2016 |
| ($ in millions) |
| CASH FLOW SUMMARY |
|
|
|
|
|
|
|
|
| |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Cash flows from operations: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
0.5 |
|
|
$ |
(5.8 |
) |
|
$ |
(35.5 |
) |
|
$ |
(201.7 |
) |
|
Depreciation |
|
|
9.3 |
|
|
|
11.4 |
|
|
|
19.9 |
|
|
|
23.6 |
|
|
Other non-cash adjustments - net |
|
|
(2.4 |
) |
|
|
10.5 |
|
|
|
5.2 |
|
|
|
130.8 |
|
|
Accounts receivable |
|
|
(38.4 |
) |
|
|
(7.2 |
) |
|
|
(40.2 |
) |
|
|
(33.3 |
) |
|
Inventories |
|
|
(3.4 |
) |
|
|
(6.2 |
) |
|
|
(34.6 |
) |
|
|
(39.9 |
) |
|
Notes receivable |
|
|
3.8 |
|
|
|
5.9 |
|
|
|
9.5 |
|
|
|
7.5 |
|
|
Other assets |
|
|
(3.0 |
) |
|
|
(3.3 |
) |
|
|
(4.4 |
) |
|
|
(9.7 |
) |
|
Accounts payable |
|
|
9.6 |
|
|
|
(29.6 |
) |
|
|
46.8 |
|
|
|
(40.8 |
) |
|
Accrued expenses and other liabilities |
|
|
12.1 |
|
|
|
8.9 |
|
|
|
(11.1 |
) |
|
|
(15.3 |
) |
| Net cash used for operating activities of continuing operations |
|
|
(11.9 |
) |
|
|
(15.4 |
) |
|
|
(44.4 |
) |
|
|
(178.8 |
) |
| Net cash used for operating activities of discontinued
operations |
|
|
(0.2 |
) |
|
|
(0.9 |
) |
|
|
(0.2 |
) |
|
|
(47.7 |
) |
| Net cash used for operating activities |
|
|
(12.1 |
) |
|
|
(16.3 |
) |
|
|
(44.6 |
) |
|
|
(226.5 |
) |
| Cash flows from investing: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(8.1 |
) |
|
|
(14.1 |
) |
|
|
(11.9 |
) |
|
|
(24.7 |
) |
|
Proceeds from fixed assets |
|
|
3.6 |
|
|
|
- |
|
|
|
5.3 |
|
|
|
0.9 |
|
|
Other |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
1.3 |
|
|
|
0.3 |
|
| Net cash used for investing activities of continuing operations |
|
|
(4.3 |
) |
|
|
(13.8 |
) |
|
|
(5.3 |
) |
|
|
(23.5 |
) |
| Net cash used for investing activities of discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2.4 |
) |
| Net cash used for investing activities |
|
|
(4.3 |
) |
|
|
(13.8 |
) |
|
|
(5.3 |
) |
|
|
(25.9 |
) |
| Cash flows from financing: |
|
|
|
|
|
|
|
|
|
Proceeds from (payments on) long-term debt - net |
|
|
6.8 |
|
|
|
(14.8 |
) |
|
|
5.5 |
|
|
|
(1,104.8 |
) |
|
Payments on notes financing - net |
|
|
(0.7 |
) |
|
|
(1.3 |
) |
|
|
(2.9 |
) |
|
|
(5.0 |
) |
|
Exercises of stock options |
|
|
0.2 |
|
|
|
0.6 |
|
|
|
2.9 |
|
|
|
2.5 |
|
|
Debt issuance costs |
|
|
- |
|
|
|
(0.4 |
) |
|
|
- |
|
|
|
(8.3 |
) |
|
Cash transferred to spun-off subsidiary |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(17.7 |
) |
|
Dividend from spun-off subsidiary |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,361.7 |
|
| Net cash provided by (used for) financing activities of continuing
operations |
|
|
6.3 |
|
|
|
(15.9 |
) |
|
|
5.5 |
|
|
|
228.4 |
|
| Net cash provided by financing activities of discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.2 |
|
| Net cash provided by (used for) financing activities |
|
|
6.3 |
|
|
|
(15.9 |
) |
|
|
5.5 |
|
|
|
228.6 |
|
|
Effect of exchange rate changes on cash |
|
|
0.3 |
|
|
|
(0.4 |
) |
|
|
0.8 |
|
|
|
1.2 |
|
| Net decrease in cash and cash equivalents |
|
$ |
(9.8 |
) |
|
$ |
(46.4 |
) |
|
$ |
(43.6 |
) |
|
$ |
(22.6 |
) |
| |
| Non-GAAP Financial Measures |
| |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP adjusted net income (loss) from continuing operations and
non-GAAP adjusted EBITDA 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 Net 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, |
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations |
|
$ |
0.7 |
|
|
$ |
(5.0 |
) |
|
$ |
(35.3 |
) |
|
$ |
(197.7 |
) |
| Special items: |
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
76.3 |
|
|
Restructuring expense |
|
|
5.9 |
|
|
|
8.8 |
|
|
|
17.6 |
|
|
|
13.2 |
|
|
Separation equity awards |
|
|
(0.1 |
) |
|
|
0.5 |
|
|
|
- |
|
|
|
1.9 |
|
|
Tax valuation allowance and one time tax items |
|
|
- |
|
|
|
0.5 |
|
|
|
- |
|
|
|
103.8 |
|
|
Tax on special items |
|
|
- |
|
|
|
(0.9 |
) |
|
|
- |
|
|
|
(1.0 |
) |
| Non-GAAP adjusted net income (loss) from continuing
operations |
|
$ |
6.5 |
|
|
$ |
3.9 |
|
|
$ |
(17.7 |
) |
|
$ |
(3.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Diluted income (loss) from continuing operations per share |
|
$ |
0.00 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.44 |
) |
| Special items, net of tax: |
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.56 |
|
|
Restructuring expense |
|
|
0.04 |
|
|
|
0.06 |
|
|
|
0.13 |
|
|
|
0.09 |
|
|
Separation equity awards |
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
- |
|
|
|
0.01 |
|
|
Tax valuation allowance and one time tax items |
|
|
- |
|
|
|
0.00 |
|
|
|
- |
|
|
|
0.76 |
|
| Diluted non-GAAP adjusted net income (loss) |
|
|
|
|
|
|
|
|
|
per share from continuing operations |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
(0.13 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Months |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
June 30, 2016 |
| Net income (loss) |
|
$ |
(209.6 |
) |
|
$ |
0.5 |
|
|
$ |
(36.0 |
) |
|
$ |
(33.4 |
) |
|
$ |
(140.7 |
) |
|
$ |
(5.8 |
) |
|
Loss from discontinued operations, net of income taxes |
|
|
3.4 |
|
|
|
0.2 |
|
|
|
- |
|
|
|
1.4 |
|
|
|
1.8 |
|
|
|
0.8 |
|
|
Interest expense and amortization of deferred financing fees |
|
|
41.6 |
|
|
|
10.1 |
|
|
|
10.6 |
|
|
|
10.4 |
|
|
|
10.5 |
|
|
|
10.3 |
|
|
Provision (benefit) for taxes |
|
|
(4.1 |
) |
|
|
2.3 |
|
|
|
1.5 |
|
|
|
(2.6 |
) |
|
|
(5.3 |
) |
|
|
0.7 |
|
|
Depreciation expense |
|
|
41.9 |
|
|
|
9.3 |
|
|
|
10.6 |
|
|
|
10.7 |
|
|
|
11.3 |
|
|
|
11.4 |
|
|
Amortization of intangible assets |
|
|
2.2 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.8 |
|
|
|
0.7 |
|
|
|
0.8 |
|
| EBITDA |
|
|
(124.6 |
) |
|
|
22.7 |
|
|
|
(12.9 |
) |
|
|
(12.7 |
) |
|
|
(121.7 |
) |
|
|
18.2 |
|
|
Restructuring expense |
|
|
27.8 |
|
|
|
5.9 |
|
|
|
11.7 |
|
|
|
6.3 |
|
|
|
3.9 |
|
|
|
8.8 |
|
|
Asset impairment expense |
|
|
96.9 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
96.9 |
|
|
|
- |
|
|
Other (income) expense - net (1) |
|
|
(2.3 |
) |
|
|
(3.4 |
) |
|
|
0.4 |
|
|
|
0.7 |
|
|
|
(0.0 |
) |
|
|
(1.7 |
) |
| Adjusted EBITDA |
|
|
(2.2 |
) |
|
|
25.2 |
|
|
|
(0.8 |
) |
|
|
(5.7 |
) |
|
|
(20.9 |
) |
|
|
25.3 |
|
|
Depreciation expense |
|
|
(41.9 |
) |
|
|
(9.3 |
) |
|
|
(10.6 |
) |
|
|
(10.7 |
) |
|
|
(11.3 |
) |
|
|
(11.4 |
) |
| Non-GAAP adjusted operating income (loss) |
|
|
(44.1 |
) |
|
|
15.9 |
|
|
|
(11.4 |
) |
|
|
(16.4 |
) |
|
|
(32.2 |
) |
* |
|
13.9 |
|
|
Restructuring expense |
|
|
(27.8 |
) |
|
|
(5.9 |
) |
|
|
(11.7 |
) |
|
|
(6.3 |
) |
|
|
(3.9 |
) |
|
|
(8.8 |
) |
|
Asset impairment expense |
|
|
(96.9 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(96.9 |
) |
|
|
- |
|
|
Amortization of intangible assets |
|
|
(2.2 |
) |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
Other operating (income) expense - net |
|
|
(0.8 |
) |
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
(0.3 |
) |
|
|
(0.5 |
) |
|
|
(0.4 |
) |
| GAAP operating income (loss) |
|
$ |
(171.8 |
) |
|
$ |
9.9 |
|
|
$ |
(23.7 |
) |
|
$ |
(23.8 |
) |
|
$ |
(134.2 |
) |
|
$ |
3.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA margin percentage |
|
|
-0.2 |
% |
|
|
6.4 |
% |
|
|
-0.3 |
% |
|
|
-1.5 |
% |
|
|
-6.0 |
% |
|
|
5.5 |
% |
| Non-GAAP adjusted operating income (loss) margin percentage |
|
|
-3.1 |
% |
|
|
4.0 |
% |
|
|
-3.7 |
% |
|
|
-4.3 |
% |
|
|
-9.2 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Other (income) expense - net includes foreign currency translation
adjustments and other miscellaneous items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
As previously disclosed in the Company's third-quarter press release,
adjusted operating loss includes $29.9 million of non-cash charges related to inventory reserves, losses from the decline in
used crane values, product improvement initiatives and plant variances. Excluding these amounts the third-quarter adjusted
operating loss would have been $2.3 million. |
The Manitowoc Company, Inc.
Ion M. Warner
VP, Marketing and Investor Relations
717-593-5266
View source version on businesswire.com: http://www.businesswire.com/news/home/20170807005978/en/