Market Overview

The Manitowoc Company Reports First-Quarter 2019 Financial Results

Share:

Manitowoc delivers strong first quarter; Adjusted EBITDA improves
73% year-over-year; Raises full-year guidance

The Manitowoc Company, Inc. (NYSE:MTW), (the "Company" or "Manitowoc")
a leading global manufacturer of cranes and lifting solutions, today
reported first-quarter Adjusted EBITDA(1) of $29.6 million
compared to $17.1 million last year, representing a $12.5 million or 73%
improvement. First-quarter GAAP net loss was $26.7 million or $0.75 per
diluted share, which included a $25.0 million charge, or $0.70 per
diluted share impact, associated with the Company's refinancing of its
credit facilities. Adjusted net income (loss)(1) was $2.7
million, or $0.08 per diluted share, in the first-quarter 2019 versus
$(4.1) million, or $(0.12) per diluted share, in 2018.

Net sales in the first quarter were $418.0 million versus $386.1 million
in 2018; a year-over-year increase of 8.3%. The increase was
attributable to higher crane shipments in the Americas and EURAF
regions, coupled with favorable price realization, partly offset by
unfavorable changes in foreign currency exchange rates.

Adjusted EBITDA margin increased 264 basis points year-over-year to 7.1%
of net sales, in spite of an unfavorable 31 basis point foreign currency
translation impact in the quarter. Organic growth in the North American
market, favorable mix, global price initiatives and cost reductions
realized through restructuring initiatives were the key drivers in the
year-over-year improvement.

"Manitowoc once again delivered a strong start to the year, delivering
our eighth straight quarter of year-over-year adjusted EBITDA margin
increase. The operating principles of The Manitowoc Way continue to
produce improving financial results as we execute our strategy for
profitable growth by delivering innovation and velocity in everything we
do," commented Barry L. Pennypacker, President and Chief Executive
Officer of The Manitowoc Company, Inc. "In March, we successfully
refinanced our capital structure to further strengthen our balance
sheet. This action increases liquidity, reduces interest expense and
allows us more flexibility to deploy our capital in order to increase
shareholder value."

Pennypacker continued, "Market conditions remain very competitive. We
continue to focus on providing innovative products and services for
customers as evidenced by positive customer reception to our six new
cranes introduced at the bauma trade show in April. As a result of our
first-quarter performance and our proven ability to execute on our
strategy, we are raising our full-year guidance."

Full-Year 2019 Guidance

Manitowoc updates its full-year 2019 financial guidance as follows:

  • Revenue – approximately $1.900 to $1.975 billion;
  • Adjusted EBITDA - approximately $130 to $150 million;
  • Depreciation - approximately $35 to $37 million;
  • Restructuring expense - approximately $12 to $15 million;
  • Interest expense – approximately $29 million to $33 million, excluding
    debt refinancing costs;
  • Income tax expense - approximately $12 to $16 million, excluding
    discrete items; and
  • Capital expenditures - approximately $35 million.

Investor Conference Call

On Friday, May 10th, 2019, at 10:00 a.m. ET (9:00 a.m. CT), The
Manitowoc Company's senior management will discuss its first-quarter
2019 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.

The Manitowoc Company, Inc. was founded in 1902 and has over a 116-year
tradition of providing high-quality, customer-focused products and
support services to its markets and for the year ended December 31, 2018
had net sales of approximately $1.8 billion. Manitowoc is one of the
world's leading providers of engineered lifting solutions. Manitowoc
designs, manufactures, markets, and supports one of the most
comprehensive product lines of mobile telescopic cranes, tower cranes,
lattice-boom crawler cranes, and boom trucks.

Footnote

(1) Non-GAAP adjusted net income (loss), non-GAAP adjusted
EBITDA ("adjusted EBITDA"), non-GAAP adjusted operating cash flow, and
non-GAAP adjusted DEPS 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:

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;

unanticipated changes in revenues, margins, costs, and
capital expenditures;

the ability to increase operational efficiencies across
Manitowoc's businesses and to capitalize on those efficiencies;

the ability to significantly improve profitability;

the risks associated with economic growth or contraction;

changes in raw material and commodity prices;

impairment of goodwill and/or intangible assets;

foreign currency fluctuation and its impact on reported
results and hedges in place with Manitowoc;

the ability to focus on customers, new technologies, and
innovation; and

risks and factors detailed in Manitowoc's 2018 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, 2018.

THE MANITOWOC COMPANY, INC.
Unaudited Condensed Consolidated Financial Information

For the three months ended March 31, 2019 and 2018

(In millions, except share data)

 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
  Three Months Ended
March 31,
2019   2018
Net sales $ 418.0 $ 386.1
Cost of sales   337.8     317.7  
Gross profit   80.2     68.4  
Operating costs and expenses:
Engineering, selling and administrative expenses 59.4 60.4
Amortization of intangible assets 0.1 0.1
Restructuring expense   4.5     6.2  
Total operating costs and expenses   64.0     66.7  
Operating income 16.2 1.7
Other income (expense):
Interest expense (10.9 ) (10.0 )
Amortization of deferred financing fees (0.4 ) (0.5 )
Loss on debt extinguishment (25.0 )
Other income (expense) - net   (3.3 )   2.7  
Total other expense
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com