Company accelerating restructuring activities to drive long-term cash
flow generation and margin expansion
MANITOWOC, Wis.--(BUSINESS WIRE)--
The Manitowoc Company, Inc. (NYSE: MTW) (“Manitowoc”) today reported
third-quarter 2016 net sales of $349.8 million versus $438.2 million in
the comparable period in 2015.
On a GAAP basis, the company reported a net loss of ($140.0) million, or
($1.01) per diluted share, in the third-quarter 2016 versus net income
of $4.8 million, or $0.04 per diluted share, in the third-quarter 2015.
The company’s loss from continuing operations in the third-quarter 2016
and 2015 was ($138.2) million and ($29.6) million, respectively.
Non-GAAP adjusted net loss from continuing operations(1) was
($38.1) million, or ($0.28) per diluted share, in the third-quarter 2016
versus a non-GAAP adjusted net loss from continuing operations of
($29.8) million, or ($0.22) per diluted share, in the third-quarter 2015.
“As previously announced, the mobile crane market continued its downward
trend in the third-quarter and remains very challenging. The weak global
oil and gas market, coupled with lower used equipment prices, continues
to have a negative effect on demand. Our tower crane business continues
to perform as expected and we look forward to its continued success as
the new line of HUP products are introduced in the fourth-quarter,”
commented Barry L. Pennypacker, President and Chief Executive Officer of
The Manitowoc Company, Inc.
“Our priority is to continue to improve our quality, make significant
market share gains and right-size the business to current demand levels.
We will do this without impacting our long-term strategy of margin
expansion, growth, innovation and velocity. We have significantly cut
production levels to match the lower demand and accelerated the
transition of crawler crane manufacturing from Manitowoc, Wisconsin, to
Shady Grove, Pennsylvania. While this will have an adverse impact on our
near-term earnings outlook, we expect this action will have a positive
impact on our ability to maintain adequate liquidity levels. We continue
to transition the culture to one being driven by the principles of The
Manitowoc Way and remain committed during this challenging time to our
goals of improving our long-term performance and attaining double-digit
operating margins by 2020,” concluded Pennypacker.
Financial Results
Third-quarter 2016 net sales were $349.8 million versus $438.2 million
in the third-quarter 2015. The year-over-year decrease was primarily due
to continued deterioration within the company’s mobile crane markets,
mainly in North America and the Middle East. This was partially offset
by growth in towers due to residential and commercial construction
trends, particularly in Western Europe.
GAAP operating loss for the third-quarter 2016 was ($133.5) million,
compared to ($8.2) million in the third-quarter 2015, and includes $96.9
million of non-cash impairment charges primarily related to certain
software assets and other charges related to the relocation of crawler
and tower crane manufacturing operations. In addition, $3.9 million of
restructuring costs were recognized during the third-quarter mainly
related to severance costs.
Non-GAAP adjusted operating loss(1) for the third-quarter
2016 was ($31.5) million compared to ($7.7) million in the same period
last year. This resulted in an adjusted operating margin of (9.0)
percent for the third-quarter 2016 versus (1.8) percent for the
third-quarter 2015. The 2016 non-GAAP adjusted operating loss of ($31.5)
million included $29.9 million of expenses related to the relocation of
crawler crane production from Manitowoc, Wisconsin to Shady Grove,
Pennsylvania, including certain inventory related charges and charges
associated with declines in used crane market values. Non-GAAP adjusted
operating loss excluding these items would have been ($1.6) million, as
outlined in the schedule of “Non-GAAP Financial Measures” at the end of
this press release.
Backlog totaled $353.6 million for the third-quarter, down from the
second-quarter 2016 backlog of $393.5 million. Third-quarter 2016 orders
of $309.9 million were lower by approximately $28 million or 8% compared
to the third-quarter 2015. The third-quarter 2016 orders also included
approximately $10 million of prototype units for the U.S. military, of
which approximately $3 million was shipped in the quarter. The
year-over-year order decline is due to continued softness in the North
American and Middle East markets, partially offset by growth in Western
Europe.
Cash Flow
Net cash flow from operating activities in the third-quarter 2016 was a
use of $3.0 million, which includes continuing and discontinued
operations. This compares to a source of net cash flow from operating
activities in the third-quarter 2015 of $6.3 million, which also
included continuing and discontinued operations. Third-quarter capital
expenditures totaled $10.1 million as compared to $9.4 million in the
third-quarter 2015.
Fourth-Quarter 2016 Guidance:
-
Revenue – down approximately 25% to 30% year-over-year;
-
Margin on non-GAAP adjusted operating loss(1) –
approximately (4)% to (6)%;
-
Depreciation – approximately $11 million;
-
Amortization of intangibles – approximately $1 million; and
-
Capital expenditures – approximately $10 to $15 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 Wednesday, November 2nd, 2016, at 10:00 a.m. ET (9:00 a.m.
CT), The Manitowoc Company's senior management will discuss its
third-quarter earnings results and updated fourth-quarter outlook 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 lift 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 2015, Manitowoc’s revenues
totaled $1.9 billion, with over half of these revenues generated outside
the United States.
Footnote:
(1) Non-GAAP adjusted net loss from continuing operations and non-GAAP
adjusted operating loss 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
from net loss and operating loss 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;
-
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;
-
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 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;
-
efficiencies and capacity utilization of facilities;
-
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;
-
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 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, 2015.
|
|
|
THE MANITOWOC COMPANY, INC.
|
|
Unaudited Consolidated Financial Information
|
|
For the Three and Nine Months Ended September 30, 2016 and 2015
|
|
(In millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
349.8
|
|
|
$
|
438.2
|
|
|
$
|
1,234.9
|
|
|
$
|
1,322.6
|
|
|
Cost of sales
|
|
|
308.3
|
|
|
|
368.3
|
|
|
|
1,023.3
|
|
|
|
1,082.4
|
|
|
Gross profit
|
|
|
41.5
|
|
|
|
69.9
|
|
|
|
211.6
|
|
|
|
240.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, selling and administrative expenses
|
|
|
73.0
|
|
|
|
77.6
|
|
|
|
218.8
|
|
|
|
239.8
|
|
|
Asset impairment expense
|
|
|
96.9
|
|
|
|
-
|
|
|
|
96.9
|
|
|
|
-
|
|
|
Restructuring expense
|
|
|
3.9
|
|
|
|
(0.4
|
)
|
|
|
17.1
|
|
|
|
0.4
|
|
|
Amortization expense
|
|
|
0.7
|
|
|
|
0.8
|
|
|
|
2.2
|
|
|
|
2.3
|
|
|
Other
|
|
|
0.5
|
|
|
|
0.1
|
|
|
|
2.3
|
|
|
|
(0.0
|
)
|
|
Operating loss
|
|
|
(133.5
|
)
|
|
|
(8.2
|
)
|
|
|
(125.7
|
)
|
|
|
(2.3
|
)
|
|
Amortization of deferred financing fees
|
|
|
(0.5
|
)
|
|
|
(1.1
|
)
|
|
|
(1.8
|
)
|
|
|
(3.2
|
)
|
|
Interest expense
|
|
|
(10.0
|
)
|
|
|
(24.0
|
)
|
|
|
(29.6
|
)
|
|
|
(71.3
|
)
|
|
Loss on debt extinguishment
|
|
|
-
|
|
|
|
-
|
|
|
|
(76.3
|
)
|
|
|
-
|
|
|
Other income (expense) - net
|
|
|
0.5
|
|
|
|
(2.4
|
)
|
|
|
3.7
|
|
|
|
0.2
|
|
|
Loss from continuing operations before taxes
|
|
|
(143.5
|
)
|
|
|
(35.7
|
)
|
|
|
(229.7
|
)
|
|
|
(76.6
|
)
|
|
(Benefit) provision for taxes on income
|
|
|
(5.3
|
)
|
|
|
(6.1
|
)
|
|
|
116.9
|
|
|
|
(17.3
|
)
|
|
Loss from continuing operations
|
|
|
(138.2
|
)
|
|
|
(29.6
|
)
|
|
|
(346.6
|
)
|
|
|
(59.3
|
)
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued
|
|
|
|
|
|
|
|
|
|
operations, net of income taxes
|
|
|
(1.8
|
)
|
|
|
34.4
|
|
|
|
(5.8
|
)
|
|
|
79.0
|
|
|
Net (loss) income
|
|
$
|
(140.0
|
)
|
|
$
|
4.8
|
|
|
$
|
(352.4
|
)
|
|
$
|
19.7
|
|
|
BASIC (LOSS) INCOME PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(1.00
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(2.52
|
)
|
|
$
|
(0.44
|
)
|
|
(Loss) income from discontinued operations
|
|
|
(0.01
|
)
|
|
|
0.25
|
|
|
|
(0.04
|
)
|
|
|
0.58
|
|
|
BASIC (LOSS) INCOME PER COMMON SHARE
|
|
$
|
(1.01
|
)
|
|
$
|
0.04
|
|
|
$
|
(2.56
|
)
|
|
$
|
0.14
|
|
|
DILUTED (LOSS) INCOME PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(1.00
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(2.52
|
)
|
|
$
|
(0.44
|
)
|
|
(Loss) income from discontinued operations
|
|
|
(0.01
|
)
|
|
|
0.25
|
|
|
|
(0.04
|
)
|
|
|
0.58
|
|
|
DILUTED (LOSS) INCOME PER COMMON SHARE
|
|
$
|
(1.01
|
)
|
|
$
|
0.04
|
|
|
$
|
(2.56
|
)
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
|
|
138,422,953
|
|
|
|
136,164,053
|
|
|
|
137,390,809
|
|
|
|
135,983,603
|
|
|
Weighted Average Shares Outstanding - Diluted
|
|
|
138,422,953
|
|
|
|
136,164,053
|
|
|
|
137,390,809
|
|
|
|
135,983,603
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MANITOWOC COMPANY, INC.
|
|
Unaudited Consolidated Financial Information
|
|
For the Nine Months Ended September 30, 2016 and 2015
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
ASSETS
|
|
|
|
|
|
2016
|
|
2015
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and temporary investments
|
|
|
|
|
|
$
|
42.9
|
|
|
$
|
31.5
|
|
|
Accounts receivable - net
|
|
|
|
|
|
|
132.5
|
|
|
|
155.7
|
|
|
Inventories - net
|
|
|
|
|
|
|
496.3
|
|
|
|
452.6
|
|
|
Notes receivable - net
|
|
|
|
|
|
|
60.4
|
|
|
|
65.1
|
|
|
Other current assets
|
|
|
|
|
|
|
54.5
|
|
|
|
45.9
|
|
|
Current assets of discontinued operations
|
|
|
|
|
|
|
-
|
|
|
|
254.2
|
|
|
Total current assets
|
|
|
|
|
|
|
786.6
|
|
|
|
1,005.0
|
|
|
Property, plant and equipment - net
|
|
|
|
|
|
|
315.3
|
|
|
|
410.7
|
|
|
Intangible assets - net
|
|
|
|
|
|
|
428.7
|
|
|
|
425.8
|
|
|
Other long-term assets
|
|
|
|
|
|
|
63.1
|
|
|
|
191.2
|
|
|
Long-term assets held for sale
|
|
|
|
|
|
|
5.5
|
|
|
|
5.5
|
|
|
Long-term assets of discontinued operations
|
|
|
|
|
|
|
-
|
|
|
|
1,501.5
|
|
|
TOTAL ASSETS
|
|
|
|
|
|
$
|
1,599.2
|
|
|
$
|
3,539.7
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
|
|
$
|
350.3
|
|
|
$
|
436.3
|
|
|
Short-term borrowings and current portion of long-term debt
|
|
|
|
|
|
|
15.3
|
|
|
|
67.2
|
|
|
Customer advances
|
|
|
|
|
|
|
10.3
|
|
|
|
10.3
|
|
|
Product warranties
|
|
|
|
|
|
|
38.4
|
|
|
|
35.9
|
|
|
Product liabilities
|
|
|
|
|
|
|
21.4
|
|
|
|
21.9
|
|
|
Current liabilities of discontinued operations
|
|
|
|
|
|
|
-
|
|
|
|
312.0
|
|
|
Total current liabilities
|
|
|
|
|
|
|
435.7
|
|
|
|
883.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
|
|
293.0
|
|
|
|
1,330.4
|
|
|
Other non-current liabilities
|
|
|
|
|
|
|
247.0
|
|
|
|
286.4
|
|
|
Long-term liabilities of discontinued operations
|
|
|
|
|
|
|
-
|
|
|
|
219.8
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
623.5
|
|
|
|
819.5
|
|
|
TOTAL LIABILITIES &
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
$
|
1,599.2
|
|
|
$
|
3,539.7
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW SUMMARY
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net (loss) income
|
|
$
|
(140.0
|
)
|
|
$
|
4.8
|
|
|
$
|
(352.4
|
)
|
|
$
|
19.7
|
|
|
Non-cash adjustments
|
|
|
115.0
|
|
|
|
(16.1
|
)
|
|
|
283.2
|
|
|
|
5.2
|
|
|
Changes in operating assets and liabilities
|
|
|
23.6
|
|
|
|
(25.9
|
)
|
|
|
(94.8
|
)
|
|
|
(101.7
|
)
|
|
Net cash used for operating activities
|
|
|
|
|
|
|
|
|
|
of continuing operations
|
|
|
(1.4
|
)
|
|
|
(37.2
|
)
|
|
|
(164.0
|
)
|
|
|
(76.8
|
)
|
|
Net cash (used for) provided by operating activities
|
|
|
|
|
|
|
|
|
|
of discontinued operations
|
|
|
(1.6
|
)
|
|
|
43.5
|
|
|
|
(65.5
|
)
|
|
|
2.9
|
|
|
Net cash (used for) provided by operating activities
|
|
|
(3.0
|
)
|
|
|
6.3
|
|
|
|
(229.5
|
)
|
|
|
(73.9
|
)
|
|
Capital expenditures
|
|
|
(10.1
|
)
|
|
|
(9.4
|
)
|
|
|
(34.8
|
)
|
|
|
(31.9
|
)
|
|
Other
|
|
|
(0.6
|
)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
3.2
|
|
|
Proceeds from sale of fixed assets
|
|
|
1.4
|
|
|
|
1.1
|
|
|
|
2.3
|
|
|
|
6.2
|
|
|
Net cash used for investing activities
|
|
|
|
|
|
|
|
|
|
of discontinued operations
|
|
|
(0.0
|
)
|
|
|
(3.1
|
)
|
|
|
(2.4
|
)
|
|
|
(10.1
|
)
|
|
Proceeds from (payments on) borrowings - net
|
|
|
14.8
|
|
|
|
14.2
|
|
|
|
(1,090.0
|
)
|
|
|
123.0
|
|
|
Payments on receivable financing - net
|
|
|
(3.7
|
)
|
|
|
(0.7
|
)
|
|
|
(8.7
|
)
|
|
|
(10.0
|
)
|
|
Exercise of stock options
|
|
|
3.9
|
|
|
|
0.1
|
|
|
|
6.4
|
|
|
|
4.0
|
|
|
Debt issuance costs
|
|
|
(0.6
|
)
|
|
|
-
|
|
|
|
(8.9
|
)
|
|
|
-
|
|
|
Cash transferred to spun-off subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
(17.7
|
)
|
|
|
-
|
|
|
Dividend from spun-off subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
1,361.7
|
|
|
|
-
|
|
|
Net cash (used for) provided by financing
|
|
|
|
|
|
|
|
|
|
activities of discontinued operations
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
0.2
|
|
|
|
0.1
|
|
|
Effect of exchange rate changes on cash
|
|
|
-
|
|
|
|
(0.8
|
)
|
|
|
1.2
|
|
|
|
(3.4
|
)
|
|
Net increase (decrease) in cash & temporary investments
|
|
$
|
2.1
|
|
|
$
|
7.5
|
|
|
$
|
(20.5
|
)
|
|
$
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
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, 2016 was $112.3 million. The reconciliation of GAAP
net loss attributable to Manitowoc to Adjusted EBITDA is as follows (in
millions):
|
|
|
TTM
|
|
|
|
September 30,
|
|
|
|
2016
|
|
Net loss
|
|
$
|
(308.6
|
)
|
|
Income from discontinued operations
|
|
|
(50.6
|
)
|
|
Depreciation
|
|
|
53.4
|
|
|
Amortization
|
|
|
3.0
|
|
|
Interest expense and amortization of deferred financing fees
|
|
|
56.7
|
|
|
Income taxes
|
|
|
91.9
|
|
|
EBITDA
|
|
|
(154.2
|
)
|
|
Costs due to early extinguishment of debt
|
|
|
76.5
|
|
|
Restructuring expense
|
|
|
26.6
|
|
|
Pension and post-retirement
|
|
|
15.3
|
|
|
Stock-based compensation
|
|
|
5.2
|
|
|
Asset impairment expense
|
|
|
112.2
|
|
|
Other
|
|
|
30.7
|
|
|
Adjusted EBITDA
|
|
$
|
112.3
|
|
|
|
|
|
|
|
Non-GAAP Items
Non-GAAP adjusted net loss from continuing operations and non-GAAP
adjusted operating loss 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
from net loss and operating loss 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 Loss and Loss Per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(140.0
|
)
|
|
$
|
4.8
|
|
|
$
|
(352.4
|
)
|
|
$
|
19.7
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
Loss (income) from discontinued operations, net of tax
|
|
|
1.8
|
|
|
|
(34.4
|
)
|
|
|
5.8
|
|
|
|
(79.0
|
)
|
|
Early extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
76.3
|
|
|
|
-
|
|
|
Asset impairment
|
|
|
96.9
|
|
|
|
-
|
|
|
|
96.9
|
|
|
|
-
|
|
|
Restructuring expense
|
|
|
3.9
|
|
|
|
(0.4
|
)
|
|
|
17.1
|
|
|
|
0.4
|
|
|
Separation equity awards
|
|
|
0.4
|
|
|
|
-
|
|
|
|
2.3
|
|
|
|
-
|
|
|
Tax valuation allowance and one time tax items
|
|
|
-
|
|
|
|
-
|
|
|
|
117.7
|
|
|
|
-
|
|
|
Tax on special items
|
|
|
(1.1
|
)
|
|
|
0.2
|
|
|
|
(2.1
|
)
|
|
|
0.1
|
|
|
Non-GAAP adjusted net loss from continuing operations
|
|
$
|
(38.1
|
)
|
|
$
|
(29.8
|
)
|
|
$
|
(38.4
|
)
|
|
$
|
(58.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share
|
|
$
|
(1.01
|
)
|
|
$
|
0.04
|
|
|
$
|
(2.56
|
)
|
|
$
|
0.14
|
|
|
Special items, net of tax:
|
|
|
|
|
|
|
|
|
|
Loss (income) from discontinued operations
|
|
|
0.01
|
|
|
|
(0.25
|
)
|
|
|
0.04
|
|
|
|
(0.58
|
)
|
|
Early extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
0.56
|
|
|
|
-
|
|
|
Asset impairment
|
|
|
0.69
|
|
|
|
-
|
|
|
|
0.70
|
|
|
|
-
|
|
|
Restructuring expense
|
|
|
0.03
|
|
|
|
-
|
|
|
|
0.12
|
|
|
|
-
|
|
|
Separation equity awards
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
-
|
|
|
Tax valuation allowance and one time tax items
|
|
|
-
|
|
|
|
-
|
|
|
|
0.86
|
|
|
|
-
|
|
|
Diluted non-GAAP adjusted net loss
|
|
|
|
|
|
|
|
|
|
per share from continuing operations
|
|
$
|
(0.28
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Operating (Loss) Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
349.8
|
|
|
$
|
438.2
|
|
|
$
|
1,234.9
|
|
|
$
|
1,322.6
|
|
|
Cost of sales
|
|
|
308.3
|
|
|
|
368.3
|
|
|
|
1,023.3
|
|
|
|
1,082.4
|
|
|
Gross profit
|
|
|
41.5
|
|
|
|
69.9
|
|
|
|
211.6
|
|
|
|
240.2
|
|
|
Engineering, selling and administrative expenses
|
|
|
73.0
|
|
|
|
77.6
|
|
|
|
218.8
|
|
|
|
239.8
|
|
|
Non-GAAP adjusted operating (loss) income
|
|
$
|
(31.5
|
)
|
|
$
|
(7.7
|
)
|
|
$
|
(7.2
|
)
|
|
$
|
0.4
|
|
|
Margin on non-GAAP adjusted operating (loss) income
|
|
|
-9.0
|
%
|
|
|
-1.8
|
%
|
|
|
-0.6
|
%
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted operating loss
|
|
$
|
(31.5
|
)
|
|
|
|
$
|
(7.2
|
)
|
|
|
|
Adjustments included in Non-GAAP adjusted operating loss
|
|
|
|
|
|
|
|
|
|
Inventory reserves
|
|
|
9.4
|
|
|
|
|
|
9.4
|
|
|
|
|
Losses from decline in used crane values
|
|
|
13.5
|
|
|
|
|
|
13.5
|
|
|
|
|
Product improvement initiatives
|
|
|
3.4
|
|
|
|
|
|
3.4
|
|
|
|
|
Plant variances
|
|
|
3.6
|
|
|
|
|
|
3.6
|
|
|
|
|
Subtotal adjustments
|
|
|
29.9
|
|
|
|
|
|
29.9
|
|
|
|
|
Non-GAAP adjusted operating loss excluding above adjustments
|
|
$
|
(1.6
|
)
|
|
|
|
$
|
22.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161101006817/en/
Source: The Manitowoc Company, Inc.