-
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
MANITOWOC, Wis.--(BUSINESS WIRE)--
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170807005978/en/
Source: The Manitowoc Company, Inc.