Strong execution drives company-wide margin improvement;
Company
updates 2013 Crane and Foodservice revenue outlook
MANITOWOC, Wis.--(BUSINESS WIRE)--Oct. 24, 2013--
The Manitowoc Company, Inc. (NYSE: MTW) today reported sales of $1.015
billion for the third quarter of 2013, an increase of 7.1 percent
compared to sales of $947.5 million in the third quarter of 2012. The
sales increase was primarily driven by a 10.4 percent increase in Crane
segment sales.
On a GAAP basis, the company reported net earnings of $52.9 million, or
$0.39 per diluted share, in the third quarter versus earnings of $22.2
million, or $0.17 per diluted share, in the third quarter of 2012. Both
periods included special items. A reconciliation of GAAP net earnings to
net earnings before special items for the quarter and year-to-date
periods is provided later in this press release.
“Our results for the third quarter demonstrate our efforts to deliver
sustainable organic improvements through operational initiatives and new
product introductions in spite of a tepid macro environment,” commented
Glen E. Tellock, Manitowoc’s chairman and chief executive officer. “With
continuing growth, expanding margins, and strong cash flows, the focus
on our core competencies underscores our ability to navigate through the
prolonged uncertainty that exists in the marketplace. As we look longer
term, we will continue to solidify our competitive positioning globally
through the steadfast execution of our strategic imperatives.”
Crane Segment Results
Third-quarter 2013 net sales in the Crane segment were $612.6 million,
up 10.4 percent from $555.1 million in the third quarter of 2012, driven
primarily by continued growth in the Americas region as a result of
increased crawler crane activity, as well as ongoing success with
Manitowoc Crane Care, our aftermarket product support solution.
Crane segment operating earnings for the third quarter of 2013 were
$55.7 million, up 110.2 percent compared to $26.5 million in the same
period last year. This resulted in an operating margin of 9.1 percent
for the third quarter of 2013, up from 4.8 percent in the same period in
2012. Third-quarter 2013 earnings were driven by higher sales volume and
operational efficiencies.
Crane segment backlog totaled $568 million as of September 30, 2013, a
decrease of $158 million from the second quarter 2013. Third-quarter
2013 orders of $450 million were 23 percent lower than the third quarter
of 2012.
Tellock continued, “While the global markets have not rebounded to the
degree that we had expected, we generated solid third-quarter sales
growth and notable margin improvement, driven by strength in our crawler
crane product line, the success of our new products, as well as the
execution of our Lean manufacturing, purchasing, and product quality
initiatives. Order intake, however, did track lower than expected,
reflecting the cautious and conservative spending actions of many
customers. Despite these headwinds, we continue to execute our
strategies and focus on the areas we can control, which will ultimately
drive long-term, sustainable growth and margin improvement including
expanding our global footprint, accelerating new product innovation, and
driving operational excellence.”
Foodservice Segment Results
Third-quarter 2013 net sales in the Foodservice segment were $401.9
million, up from $392.4 million in the third quarter of 2012. The
increase was driven by growth in the Americas and EMEA regions,
complemented by continued traction from new products.
Foodservice operating earnings for the third quarter of 2013 were $69.5
million, down 2.9 percent versus $71.6 million for the third quarter of
2012. This resulted in a Foodservice segment operating margin of 17.3
percent for the third quarter of 2013, compared to an operating margin
of 18.2 percent for the prior-year period. The year-over-year margin
decrease was due to ongoing investments in our key brand manufacturing
strategies, as well as new product development costs.
“Our Foodservice segment posted modest sales growth during the quarter.
These results were driven by sustained improvements in North America,
increasing demand in Europe from the successful roll-out of our blended
beverage technology, and overall strength among select products in our
accelerated cooking platform,” Tellock added. “As we look to the future,
we are confident in the growth prospects that lie ahead, which were
enhanced by our recent acquisition of Inducs, a market leader in
induction cooking technology. Our unique offering that is created
through our world-class R&D center and close collaboration with
customers, coupled with our investments in manufacturing and operational
efficiencies, make the team confident in our long-term outlook,” Tellock
concluded.
Cash Flow
Cash flow provided from operating activities from continuing operations
in the third quarter of 2013 was $114.4 million, versus $49.7 million in
the prior-year quarter, driven by cash from profitability and partially
offset by seasonal working capital requirements in both segments.
Third-quarter 2013 capital expenditures totaled $26.4 million, while net
debt reduction in the same period totaled $95.4 million. On a
year-to-date basis, the company has repaid approximately $11 million of
debt compared to increasing its net borrowings by $126 million for the
same period one year ago.
2013 Guidance
Based on year-to-date results and its outlook for the fourth quarter,
the company is lowering its Crane and Foodservice revenue guidance, as
well as its full-year effective tax rate, while reaffirming margin
guidance and all other key full-year financial metrics. For the
full-year 2013, Manitowoc expects:
■ Crane revenue – mid single-digit percentage growth
■ Crane operating margins – high single-digit percentage
■ Foodservice revenue – modest single-digit percentage growth
■ Foodservice operating margins – continuing mid-teens percentage
■ Capital expenditures – approximately $100 million
■ Depreciation & amortization – approximately $115 million
■ Interest expense – approximately $125 million
■ Amortization of deferred financing fees – approximately $10 million
■ Debt reduction – to exceed $200 million
■ Full-year effective tax rate below 30 percent
Investor Conference Call
On October 25 at 10:00 a.m. ET (9:00 a.m. CT), Manitowoc’s senior
management will discuss its third-quarter results during an investor
conference call. All interested parties may listen to the live
conference call via the Internet by going to the Investor Relations area
of Manitowoc’s Web site at http://www.manitowoc.com.
A replay of the conference call will also be available at the same
location on the Web site.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a multi-industry,
capital goods manufacturer with over 115 manufacturing, distribution,
and service facilities in 26 countries. The company is recognized
globally 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 product
support services. In addition, Manitowoc is one of the world’s leading
innovators and manufacturers of commercial foodservice equipment, which
includes 24 market-leading brands of hot- and cold-focused equipment. In
2012, Manitowoc’s revenues totaled $3.9 billion, with more than half of
these revenues generated outside of the United States.
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;
-
uncertainties associated with new product introductions, the
successful development and market acceptance of new and innovative
products that drive growth;
-
the ability to focus and capitalize on product quality and
reliability;
-
the ability to increase operational efficiencies across each of
Manitowoc’s business segments and to capitalize on those efficiencies;
-
the ability to capitalize on key strategic opportunities;
-
the ability to generate cash and manage working capital consistent
with Manitowoc’s stated goals;
-
pressure of financing leverage;
-
matters impacting the successful and timely implementation of ERP
systems;
-
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 of materials and
components sourced from third parties and the resolution of those
issues;
-
unexpected issues associated with the availability and viability of
suppliers;
-
the risks associated with growth;
-
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 and foodservice equipment in emerging economies,
and changes in demand for used lifting equipment and foodservice
equipment;
-
global expansion of customers;
-
the replacement cycle of technologically obsolete cranes;
-
the ability of Manitowoc's customers to receive financing;
-
foodservice equipment replacement cycles in national accounts and
global chains, including unanticipated issues associated with
refresh/renovation plans by national restaurant accounts and global
chains;
-
efficiencies and capacity utilization of facilities;
-
issues relating to the ability to timely and effectively execute on
manufacturing strategies, including issues relating to new plant
start-ups, plant closings, and/or consolidations of existing
facilities and operations;
-
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 U.S.
government budget sequestration;
-
the ability to complete and appropriately integrate restructurings,
consolidations, acquisitions, divestitures, strategic alliances, and
joint ventures;
-
realization of anticipated earnings enhancements, cost savings,
strategic options and other synergies, and the anticipated timing to
realize those savings, synergies, and options;
-
unanticipated issues affecting the effective tax rate for the year;
-
unanticipated issues associated with the resolution or settlement
of uncertain tax positions, including unfavorable settlement of a tax
matter with the IRS related to the 2008 and 2009 calendar years;
-
changes in laws throughout the world;
-
natural disasters disrupting commerce in one or more regions of the
world;
-
acts of terrorism; and
-
risks and other factors cited in Manitowoc's 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, 2012.
|
THE MANITOWOC COMPANY, INC.
|
Unaudited Consolidated Financial Information
|
For the Three and Nine Months Ended September 30, 2013 and 2012
|
(In millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2013
|
|
2012*
|
|
2013
|
|
2012*
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,014.5
|
|
|
$
|
947.5
|
|
|
$
|
2,959.1
|
|
|
$
|
2,796.6
|
|
Cost of sales
|
|
|
|
754.4
|
|
|
|
713.6
|
|
|
|
2,206.2
|
|
|
|
2,108.2
|
|
Gross profit
|
|
|
|
260.1
|
|
|
|
233.9
|
|
|
|
752.9
|
|
|
|
688.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, selling and administrative expenses
|
|
|
151.0
|
|
|
|
152.5
|
|
|
|
470.4
|
|
|
|
449.0
|
|
Restructuring expense
|
|
|
|
0.4
|
|
|
|
0.7
|
|
|
|
1.6
|
|
|
|
1.6
|
|
Amortization expense
|
|
|
|
8.7
|
|
|
|
9.3
|
|
|
|
26.8
|
|
|
|
27.9
|
|
Other
|
|
|
|
|
0.2
|
|
|
|
1.9
|
|
|
|
0.5
|
|
|
|
2.0
|
|
Operating earnings
|
|
|
|
99.8
|
|
|
|
69.5
|
|
|
|
253.6
|
|
|
|
207.9
|
|
Amortization of deferred financing fees
|
|
|
(1.8
|
)
|
|
|
(2.0
|
)
|
|
|
(5.3
|
)
|
|
|
(6.1
|
)
|
Interest expense
|
|
|
|
(32.0
|
)
|
|
|
(34.4
|
)
|
|
|
(97.9
|
)
|
|
|
(101.2
|
)
|
Loss on debt extinguishment
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.4
|
)
|
|
|
-
|
|
Other income (expense) - net
|
|
|
0.9
|
|
|
|
(0.2
|
)
|
|
|
1.1
|
|
|
|
-
|
|
Earnings from continuing operations before taxes on income
|
|
|
66.9
|
|
|
|
32.9
|
|
|
|
151.1
|
|
|
|
100.6
|
|
Provision for taxes on income
|
|
|
17.0
|
|
|
|
13.5
|
|
|
|
34.8
|
|
|
|
40.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
49.9
|
|
|
|
19.4
|
|
|
|
116.3
|
|
|
|
60.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations, net of income taxes
|
|
|
0.7
|
|
|
|
0.3
|
|
|
|
(1.5
|
)
|
|
|
0.3
|
|
Loss on sale of discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
(1.6
|
)
|
|
|
-
|
|
Net earnings
|
|
|
|
50.6
|
|
|
|
19.7
|
|
|
|
113.2
|
|
|
|
60.5
|
|
Less net loss attributable to noncontrolling interests
|
|
|
(2.3
|
)
|
|
|
(2.5
|
)
|
|
|
(7.7
|
)
|
|
|
(6.7
|
)
|
Net earnings attributable to Manitowoc
|
|
|
52.9
|
|
|
|
22.2
|
|
|
|
120.9
|
|
|
|
67.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to the Manitowoc common shareholders:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
52.2
|
|
|
|
21.9
|
|
|
|
124.0
|
|
|
|
66.9
|
|
Earnings (loss) from discontinued operations, net of income taxes
|
|
|
0.7
|
|
|
|
0.3
|
|
|
|
(1.5
|
)
|
|
|
0.3
|
|
Loss on sale of discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
(1.6
|
)
|
|
|
-
|
|
Net earnings attributable to Manitowoc
|
|
|
52.9
|
|
|
|
22.2
|
|
|
|
120.9
|
|
|
|
67.2
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations attributable to the Manitowoc
|
|
$
|
0.39
|
|
|
$
|
0.17
|
|
|
$
|
0.93
|
|
|
$
|
0.51
|
|
common shareholders, net of income taxes
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations attributable to the
Manitowoc
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
(0.01
|
)
|
|
|
0.00
|
|
common shareholders, net of income taxes
|
|
|
|
|
|
|
|
|
Loss on sale of discontinued operations attributable to the Manitowoc
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
common shareholders, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE:
|
|
$
|
0.40
|
|
|
$
|
0.17
|
|
|
$
|
0.91
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations attributable to the Manitowoc
|
|
$
|
0.39
|
|
|
$
|
0.17
|
|
|
$
|
0.92
|
|
|
$
|
0.50
|
|
common shareholders, net of income taxes
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations attributable to the
Manitowoc
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
(0.01
|
)
|
|
|
0.00
|
|
common shareholders, net of income taxes
|
|
|
|
|
|
|
|
|
Loss on sale of discontinued operations attributable to the Manitowoc
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
common shareholders, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE
|
|
$
|
0.39
|
|
|
$
|
0.17
|
|
|
$
|
0.89
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Average Shares Outstanding - Basic
|
|
|
133,079,254
|
|
|
|
130,704,895
|
|
|
|
132,798,086
|
|
|
|
130,610,592
|
|
Average Shares Outstanding - Diluted
|
|
|
135,304,501
|
|
|
|
132,602,292
|
|
|
|
135,141,947
|
|
|
|
132,576,695
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2013
|
|
2012*
|
|
2013
|
|
2012*
|
Net sales from continuing operations:
|
|
|
|
|
|
|
|
|
Cranes and related products
|
|
$
|
612.6
|
|
|
$
|
555.1
|
|
|
$
|
1,816.9
|
|
|
$
|
1,673.6
|
|
Foodservice equipment
|
|
|
|
401.9
|
|
|
|
392.4
|
|
|
|
1,142.2
|
|
|
|
1,123.0
|
|
Total
|
|
|
|
$
|
1,014.5
|
|
|
$
|
947.5
|
|
|
$
|
2,959.1
|
|
|
$
|
2,796.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss) from continuing operations:
|
|
|
|
|
|
|
|
|
Cranes and related products
|
|
$
|
55.7
|
|
|
$
|
26.5
|
|
|
$
|
152.0
|
|
|
$
|
99.7
|
|
Foodservice equipment
|
|
|
|
69.5
|
|
|
|
71.6
|
|
|
|
181.6
|
|
|
|
188.8
|
|
General corporate expense
|
|
|
(16.1
|
)
|
|
|
(16.7
|
)
|
|
|
(51.1
|
)
|
|
|
(49.1
|
)
|
Restructuring expense
|
|
|
|
(0.4
|
)
|
|
|
(0.7
|
)
|
|
|
(1.6
|
)
|
|
|
(1.6
|
)
|
Amortization
|
|
|
|
(8.7
|
)
|
|
|
(9.3
|
)
|
|
|
(26.8
|
)
|
|
|
(27.9
|
)
|
Other
|
|
|
|
|
(0.2
|
)
|
|
|
(1.9
|
)
|
|
|
(0.5
|
)
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$
|
99.8
|
|
|
$
|
69.5
|
|
|
$
|
253.6
|
|
|
$
|
207.9
|
|
* Results have been prepared with the previously announced divested
Jackson warewashing business treated as a discontinued operation.
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THE MANITOWOC COMPANY, INC.
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Unaudited Consolidated Financial Information
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|
For the Three and Nine Months Ended September 30, 2013 and 2012
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|
|
(In millions)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
September 30,
|
|
December 31,
|
|
|
|
|
ASSETS
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and temporary investments
|
|
|
|
$
|
87.2
|
|
|
$
|
76.1
|
|
|
|
|
|
Restricted cash
|
|
|
|
|
9.5
|
|
|
|
10.6
|
|
|
|
|
|
Accounts receivable - net
|
|
|
|
|
291.3
|
|
|
|
332.7
|
|
|
|
|
|
Inventories - net
|
|
|
|
|
854.9
|
|
|
|
707.6
|
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
88.4
|
|
|
|
89.0
|
|
|
|
|
|
Other current assets
|
|
|
|
|
131.2
|
|
|
|
105.2
|
|
|
|
|
|
Current assets of discontinued operation
|
|
|
|
-
|
|
|
|
6.8
|
|
|
|
|
|
Total current assets
|
|
|
|
|
1,462.5
|
|
|
|
1,328.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment - net
|
|
|
|
|
575.0
|
|
|
|
556.1
|
|
|
|
|
|
Intangible assets - net
|
|
|
|
|
1,982.7
|
|
|
|
2,007.1
|
|
|
|
|
|
Other long-term assets
|
|
|
|
|
146.9
|
|
|
|
130.3
|
|
|
|
|
|
Long-term assets of discontinued operation
|
|
|
|
-
|
|
|
|
35.8
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
|
$
|
4,167.1
|
|
|
$
|
4,057.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY
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|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
902.9
|
|
|
$
|
912.9
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
|
97.2
|
|
|
|
92.8
|
|
|
|
|
|
Customer advances
|
|
|
|
|
35.4
|
|
|
|
24.2
|
|
|
|
|
|
Product warranties
|
|
|
|
|
82.9
|
|
|
|
82.1
|
|
|
|
|
|
Product liabilities
|
|
|
|
|
26.5
|
|
|
|
27.9
|
|
|
|
|
|
Current liabilities of discontinued operation
|
|
|
|
-
|
|
|
|
6.0
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
1,144.9
|
|
|
|
1,145.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
1,706.0
|
|
|
|
1,732.0
|
|
|
|
|
|
Other non-current liabilities
|
|
|
|
|
601.7
|
|
|
|
589.5
|
|
|
|
|
|
Long-term liabilities of discontinued operation
|
|
|
|
-
|
|
|
|
8.6
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
714.5
|
|
|
|
581.3
|
|
|
|
|
|
TOTAL LIABILITIES &
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
$
|
4,167.1
|
|
|
$
|
4,057.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
2013
|
|
2012*
|
|
2013
|
|
2012*
|
Net earnings attributable to Manitowoc
|
|
$
|
52.9
|
|
|
$
|
22.2
|
|
|
$
|
120.9
|
|
|
$
|
67.2
|
|
Non-cash adjustments
|
|
|
27.0
|
|
|
|
31.5
|
|
|
|
96.6
|
|
|
|
92.5
|
|
Changes in operating assets and liabilities
|
|
|
34.5
|
|
|
|
(4.0
|
)
|
|
|
(161.6
|
)
|
|
|
(233.4
|
)
|
Net cash provided from (used for) operating activities of continuing
operations
|
|
|
114.4
|
|
|
|
49.7
|
|
|
|
55.9
|
|
|
|
(73.7
|
)
|
Net cash provided from (used for) operating activities of
discontinued operations
|
|
|
0.7
|
|
|
|
1.2
|
|
|
|
(3.3
|
)
|
|
|
2.8
|
|
Net cash provided from (used for) operating activities
|
|
|
115.1
|
|
|
|
50.9
|
|
|
|
52.6
|
|
|
|
(70.9
|
)
|
Capital expenditures
|
|
|
(26.4
|
)
|
|
|
(15.5
|
)
|
|
|
(73.3
|
)
|
|
|
(50.2
|
)
|
Restricted cash
|
|
|
1.4
|
|
|
|
0.1
|
|
|
|
1.2
|
|
|
|
(2.9
|
)
|
Proceeds from sale of business
|
|
|
-
|
|
|
|
-
|
|
|
|
39.2
|
|
|
|
-
|
|
Proceeds from sale of fixed assets
|
|
|
0.5
|
|
|
|
0.5
|
|
|
|
1.4
|
|
|
|
0.7
|
|
Net cash used for investing activities of discontinued operations
|
|
|
(0.1
|
)
|
|
|
(0.0
|
)
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
Proceeds from swap monetization
|
|
|
-
|
|
|
|
14.8
|
|
|
|
-
|
|
|
|
14.8
|
|
(Payments) proceeds on borrowings - net
|
|
|
(95.4
|
)
|
|
|
(39.2
|
)
|
|
|
(10.8
|
)
|
|
|
126.2
|
|
Payments on receivable financing - net
|
|
|
(3.2
|
)
|
|
|
(2.8
|
)
|
|
|
(0.9
|
)
|
|
|
(21.5
|
)
|
Stock options exercised
|
|
|
0.9
|
|
|
|
1.0
|
|
|
|
3.8
|
|
|
|
2.6
|
|
Debt issuance costs
|
|
|
-
|
|
|
|
(0.3
|
)
|
|
|
-
|
|
|
|
(0.3
|
)
|
Effect of exchange rate changes on cash
|
|
|
-
|
|
|
|
2.0
|
|
|
|
(2.0
|
)
|
|
|
1.3
|
|
Net increase (decrease) in cash & temporary investments
|
|
$
|
(7.2
|
)
|
|
$
|
11.5
|
|
|
$
|
11.1
|
|
|
$
|
(0.3
|
)
|
* Results have been prepared with the previously announced divested
Jackson warewashing business treated as a discontinued operation.
Adjusted EBITDA
The company defines Adjusted EBITDA as earnings before interest, taxes,
depreciation, and amortization, plus certain items such as pro-forma
acquisition results and the addback of certain restructuring charges,
that are adjustments per the credit agreement definition. The company's
trailing twelve-month Adjusted EBITDA for covenant compliance purposes
as of September 30, 2013 was $451.9 million. The reconciliation of net
income attributable to Manitowoc to Adjusted EBITDA is as follows (in
millions):
|
|
|
|
|
Net income attributable to Manitowoc
|
|
$
|
155.4
|
|
Loss from discontinued operations
|
|
|
1.5
|
|
Loss on sale of discontinued operations
|
|
|
1.6
|
|
Depreciation and Amortization
|
|
|
108.6
|
|
Interest expense and amortization of deferred financing fees
|
|
|
141.2
|
|
Costs due to early extinguishment of debt
|
|
|
6.7
|
|
Restructuring charges
|
|
|
9.5
|
|
Income taxes
|
|
|
32.4
|
|
Other
|
|
|
(5.0
|
)
|
Adjusted EBITDA
|
|
$
|
451.9
|
|
|
|
|
|
|
GAAP Reconciliation
In this release, the company refers to various non-GAAP measures. We
believe that these measures are helpful to investors in assessing the
company's ongoing performance of its underlying businesses before the
impact of special items. In addition, these non-GAAP measures provide a
comparison to commonly used financial metrics within the professional
investing community which do not include special items. Earnings and
earnings per share before special items reconcile to earnings presented
according to GAAP as follows (in millions, except per share data):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2013
|
|
2012*
|
|
2013
|
|
2012*
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Manitowoc
|
|
$
|
52.9
|
|
|
$
|
22.2
|
|
|
$
|
120.9
|
|
$
|
67.2
|
|
Special items, net of tax:
|
|
|
|
|
|
|
|
|
|
|
(Earnings) Loss from discontinued operations
|
|
|
(0.7
|
)
|
|
|
(0.3
|
)
|
|
|
1.5
|
|
|
(0.3
|
)
|
|
|
Loss on sale of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
1.6
|
|
|
-
|
|
|
|
Early Extinguishment of Debt
|
|
|
-
|
|
|
|
-
|
|
|
|
0.3
|
|
|
-
|
|
|
|
Restructuring expense
|
|
|
0.3
|
|
|
|
0.5
|
|
|
|
1.0
|
|
|
1.0
|
|
Net earnings before special items
|
|
$
|
52.5
|
|
|
$
|
22.4
|
|
|
$
|
125.3
|
|
$
|
67.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.39
|
|
|
$
|
0.17
|
|
|
$
|
0.89
|
|
$
|
0.51
|
|
Special items, net of tax:
|
|
|
|
|
|
|
|
|
|
|
(Earnings) Loss from discontinued operations
|
|
|
(0.01
|
)
|
|
|
(0.00
|
)
|
|
|
0.01
|
|
$
|
(0.00
|
)
|
|
|
Loss on sale of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
$
|
-
|
|
|
|
Early Extinguishment of Debt
|
|
|
-
|
|
|
|
-
|
|
|
|
0.00
|
|
$
|
-
|
|
|
|
Restructuring expense
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.01
|
|
$
|
0.01
|
|
Diluted earnings per share before special items
|
|
$
|
0.39
|
|
|
$
|
0.17
|
|
|
$
|
0.93
|
|
$
|
0.51
|
|
* Results have been prepared with the previously announced divested
Jackson warewashing business treated as a discontinued operation.
Source: The Manitowoc Company, Inc.
The Manitowoc Company, Inc.
Carl J. Laurino
Senior Vice
President & Chief Financial Officer