Manufacturing efficiencies and savings initiatives partially
offset lingering sluggish demand;
Company updates
full-year 2014 outlook
MANITOWOC, Wis. -- (Business Wire)
The Manitowoc Company, Inc. (NYSE: MTW) today reported sales of $1.013
billion for the second quarter of 2014, a decrease of 2.3 percent
compared to sales of $1.037 billion in the second quarter of 2013.
During the quarter, the Foodservice segment had a sales increase of 4.4
percent, which was offset by the 6.4 percent decrease in Crane segment
sales.
On a GAAP basis, the company reported net earnings of $46.6 million, or
$0.34 per diluted share, in the second quarter versus earnings of $57.6
million, or $0.43 per diluted share, in the second quarter of 2013.
Contributing to the year-over-year decline in net earnings is the
provision for income taxes of $19.2 million that is more than double the
$9.3 million tax expense incurred in the second quarter of 2013 which
significantly benefited from discrete items during the period. Excluding
special items, the adjusted earnings from continuing operations was
$47.8 million, or $0.35 per diluted share in the second quarter of 2014,
versus adjusted earnings of $63.0 million, or $0.47 per diluted share in
the second quarter of 2013. A reconciliation of GAAP net earnings to net
earnings before special items for the quarter is provided later in this
press release.
“Our results for the quarter fell short of our expectations with
disappointing top-line performance in Cranes driven by uncertainty
spanning certain end markets, as well as limited margin expansion in
Foodservice. However, our ability to react swiftly, maintain responsive
cost controls, and enhance our operational efficiencies should help
mitigate the impact on our overall profitability for the year,”
commented Glen E. Tellock, Manitowoc’s chairman and chief executive
officer. “We are committed to executing our strategies across the
enterprise, in spite of some of the challenges we faced in the first
half of the year. The strength of our product offerings, as well as our
commitment to innovation, product quality, and reliability should enable
us to drive long-term profitable growth as the markets improve.”
Foodservice Segment Results
Second-quarter 2014 net sales in the Foodservice segment were $406.7
million, up 4.4 percent from $389.7 million in the second quarter of
2013. The increase was driven by a new product rollout in the EMEA
region boosted by brisk sales of hot holding, ice, and beverage
equipment in the Americas.
Foodservice operating earnings for the second quarter of 2014 were $65.9
million, up 4.6 percent versus $63.0 million for the second quarter of
2013. This resulted in a Foodservice segment operating margin of 16.2
percent for the second quarter of 2014, which matches the prior-year
quarter. The year-over-year increase in operating earnings was driven by
operating efficiencies from key manufacturing strategies that were
largely offset by an unfavorable product mix and a lag in the company’s
Americas ovens consolidation.
“We successfully generated sales growth within our Foodservice segment
driven by our ability to deliver innovative technologies, coupled with
our ongoing focus on customers. During the quarter, we completed the
successful rollout of blended beverage equipment in EMEA and a hot
holding rollout in the United States, while expanding the penetration
and success of our KitchenCare aftermarket services offering. Despite
flat operating margins, we made significant strides in realigning the
business in such a way that we expect to deliver superior performance
over the long-term,” Tellock stated.
Crane Segment Results
Second-quarter 2014 net sales in the Crane segment were $606.1 million,
versus $647.4 million in the second quarter of 2013. The decline in
sales is due to volume decreases that were most pronounced in the boom
truck and rough-terrain product categories.
Crane segment operating earnings for the second quarter of 2014 were
$54.4 million, down from $70.0 million in the same period last year.
This resulted in an operating margin of 9.0 percent for the second
quarter of 2014 versus 10.8 percent for the second quarter of 2013.
Second-quarter 2014 margins were affected by lower sales volume that was
only partially offset by ongoing operational efficiencies.
Crane segment backlog totaled $728 million as of June 30, 2014, a
decrease of $114 million, or 14 percent, from the first quarter 2014.
Second-quarter 2014 orders of $491 million were 19 percent lower than
the second quarter of 2013, representing a book-to-bill of 0.8 times.
However, first-half 2014 orders were six percent higher than the first
half of 2013.
Tellock continued, “During the second quarter, our Crane segment orders
were impacted by prolonged economic pressures from the North American
boom truck and rough-terrain crane markets, limited activity in Latin
America and the Greater Asia/Pacific region, plus ongoing project delays
in Russia. Our initiatives around Lean, quality, procurement, and
productivity improvements partially offset the negative impact of lower
absorption and volume. Looking ahead, there is significant room for
improvement, and we remain confident with our strategies to realize the
tangible market opportunities that are developing.”
Cash Flow
Cash flow provided from operating activities from continuing operations
in the second quarter of 2014 was $72.5 million, driven by cash from
profitability and partially offset by seasonal working capital
requirements in both segments. Use of cash in the first half of the year
was consistent with the normal seasonal pattern for the company.
Second-quarter capital expenditures totaled $18.3 million.
2014 Guidance
Based on year-to-date results, the company is lowering its guidance for
Crane segment revenue and Foodservice operating margins, as well as its
full-year effective tax rate and amortization of deferred financing
fees, while reaffirming all other key full-year financial metrics.
For the full-year 2014, Manitowoc now expects:
■ Crane revenue – flat to slightly down
■ Crane operating margins – high single-digit percentage
■ Foodservice revenue – mid single-digit percentage growth
■ Foodservice operating margins – mid-teens percentages
■ Capital expenditures – approximately $90 million
■ Depreciation & amortization – approximately $120 million
■ Interest expense – less than $100 million
■ Amortization of deferred financing fees – less than $5 million
■ Total leverage – below 3x Debt-to-EBITDA
■ Effective tax rate in the mid-teens percent range driven by expected 3rd
quarter discrete items
Investor Conference Call
On July 31 at 10:00 a.m. ET (9:00 a.m. CT), Manitowoc’s senior
management will discuss its second-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 100 manufacturing, distribution,
and service facilities in 24 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
2013, Manitowoc’s revenues totaled $4.0 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;
- the ability to significantly improve profitability;
- 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 each of
Manitowoc’s business segments 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 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
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 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;
- 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, 2013.
THE MANITOWOC COMPANY, INC. |
Unaudited Consolidated Financial Information |
For the Three and Six Months Ended June 30, 2014 and 2013
|
(In millions, except share data)
|
| |
| |
| |
| |
INCOME STATEMENT |
|
|
|
|
|
|
|
| Three Months Ended | | Six Months Ended |
| June 30, | | June 30, |
| 2014 | | 2013* | | 2014 | | 2013* |
| | | | | | |
|
Net sales
|
$
|
1,012.8
| | |
$
|
1,037.1
| | |
$
|
1,862.8
| | |
$
|
1,931.7
| |
Cost of sales
|
|
740.5
|
| |
|
761.1
|
| |
|
1,363.4
|
| |
|
1,433.6
|
|
Gross profit
| |
272.3
| | | |
276.0
| | | |
499.4
| | | |
498.1
| |
| | | | | | |
|
Engineering, selling and administrative expenses
| |
167.0
| | | |
159.5
| | | |
329.7
| | | |
316.1
| |
Restructuring expense
| |
1.0
| | | |
0.9
| | | |
3.0
| | | |
1.2
| |
Amortization expense
| |
8.8
| | | |
8.9
| | | |
17.6
| | | |
17.9
| |
Other
|
|
0.1
|
| |
|
-
|
| |
|
0.1
|
| |
|
0.3
|
|
Operating earnings
| |
95.4
| | | |
106.7
| | | |
149.0
| | | |
162.6
| |
Amortization of deferred financing fees
| |
(1.1
|
)
| | |
(1.7
|
)
| | |
(2.3
|
)
| | |
(3.5
|
)
|
Interest expense
| |
(25.1
|
)
| | |
(32.2
|
)
| | |
(44.4
|
)
| | |
(65.2
|
)
|
Loss on debt extinguishment
| |
-
| | | |
-
| | | |
(25.3
|
)
| | |
(0.4
|
)
|
Other (expense) income - net
|
|
(3.1
|
)
| |
|
(1.4
|
)
| |
|
(2.3
|
)
| |
|
0.2
|
|
Earnings from continuing operations before taxes on income
| |
66.1
| | | |
71.4
| | | |
74.7
| | | |
93.7
| |
Provision for taxes on income
|
|
19.2
|
| |
|
9.3
|
| |
|
21.8
|
| |
|
17.8
|
|
| | | | | | |
|
Earnings from continuing operations
| |
46.9
| | | |
62.1
| | | |
52.9
| | | |
75.9
| |
| | | | | | |
|
Discontinued operations:
| | | | | | | |
Loss from discontinued operations, net of income taxes
| |
(0.3
|
)
| | |
(7.6
|
)
| | |
(1.3
|
)
| | |
(11.7
|
)
|
Loss on sale of discontinued operations, net of income taxes
|
|
-
|
| |
|
-
|
| |
|
(9.9
|
)
| |
|
(1.6
|
)
|
Net earnings
| |
46.6
| | | |
54.5
| | | |
41.7
| | | |
62.6
| |
Less net (loss) earnings attributable to noncontrolling interests
|
|
-
|
| |
|
(3.1
|
)
| |
|
3.9
|
| |
|
(5.4
|
)
|
Net earnings attributable to Manitowoc
|
|
46.6
|
| |
|
57.6
|
| |
|
37.8
|
| |
|
68.0
|
|
| | | | | | |
|
Amounts attributable to the Manitowoc common shareholders:
| | | | | | | |
Earnings from continuing operations
| |
46.9
| | | |
62.4
| | | |
48.6
| | | |
76.5
| |
Loss from discontinued operations, net of income taxes
| |
(0.3
|
)
| | |
(4.8
|
)
| | |
(0.9
|
)
| | |
(6.9
|
)
|
Loss on sale of discontinued operations, net of income taxes
|
|
-
|
| |
|
-
|
| |
|
(9.9
|
)
| |
|
(1.6
|
)
|
Net earnings attributable to Manitowoc
| |
46.6
| | | |
57.6
| | | |
37.8
| | | |
68.0
| |
| | | | | | |
|
BASIC EARNINGS (LOSS) PER SHARE:
| | | | | | | |
Earnings from continuing operations attributable to the Manitowoc
|
$
|
0.35
| | |
$
|
0.47
| | |
$
|
0.36
| | |
$
|
0.58
| |
common shareholders, net of income taxes
| | | | | | | |
Loss from discontinued operations attributable to the Manitowoc
| |
(0.00
|
)
| | |
(0.04
|
)
| | |
(0.01
|
)
| | |
(0.05
|
)
|
common shareholders, net of income taxes
| | | | | | | |
Loss on sale of discontinued operations attributable to the Manitowoc
| |
-
| | | |
-
| | | |
(0.07
|
)
| | |
(0.01
|
)
|
common shareholders, net of income taxes
| | | | | | | |
|
| |
| |
| |
|
BASIC EARNINGS PER SHARE
|
$
|
0.35
|
| |
$
|
0.43
|
| |
$
|
0.28
|
| |
$
|
0.51
|
|
| | | | | | |
|
DILUTED EARNINGS (LOSS) PER SHARE:
| | | | | | | |
Earnings from continuing operations attributable to the Manitowoc
|
$
|
0.34
| | |
$
|
0.46
| | |
$
|
0.35
| | |
$
|
0.57
| |
common shareholders, net of income taxes
| | | | | | | |
Loss from discontinued operations attributable to the Manitowoc
| |
(0.00
|
)
| | |
(0.04
|
)
| | |
(0.01
|
)
| | |
(0.05
|
)
|
common shareholders, net of income taxes
| | | | | | | |
Loss on sale of discontinued operations attributable to the Manitowoc
| |
-
| | | |
-
| | | |
(0.07
|
)
| | |
(0.01
|
)
|
common shareholders, net of income taxes
| | | | | | | |
|
| |
| |
| |
|
DILUTED EARNINGS PER SHARE
|
$
|
0.34
|
| |
$
|
0.43
|
| |
$
|
0.28
|
| |
$
|
0.50
|
|
| | | | | | |
|
AVERAGE SHARES OUTSTANDING:
| | | | | | | |
Average Shares Outstanding - Basic
| |
134,990,382
| | | |
132,999,781
| | | |
134,590,994
| | | |
132,655,172
| |
Average Shares Outstanding - Diluted
| |
137,426,642
| | | |
135,112,730
| | | |
137,420,479
| | | |
135,029,444
| |
| | | | | | |
|
SEGMENT SUMMARY |
|
|
|
|
|
|
|
| Three Months Ended | | Six Months Ended |
| June 30, | | June 30, |
| 2014 | | 2013* | | 2014 | | 2013* |
Net sales from continuing operations:
| | | | | | | |
Cranes and related products
|
$
|
606.1
| | |
$
|
647.4
| | |
$
|
1,072.8
| | |
$
|
1,191.4
| |
Foodservice equipment
|
|
406.7
|
| |
|
389.7
|
| |
|
790.0
|
| |
|
740.3
|
|
Total
|
$
|
1,012.8
|
| |
$
|
1,037.1
|
| |
$
|
1,862.8
|
| |
$
|
1,931.7
|
|
| | | | | | |
|
Operating earnings (loss) from continuing operations:
| | | | | | | |
Cranes and related products
|
$
|
54.4
| | |
$
|
70.0
| | |
$
|
77.0
| | |
$
|
104.9
| |
Foodservice equipment
| |
65.9
| | | |
63.0
| | | |
123.8
| | | |
112.1
| |
General corporate expense
| |
(15.0
|
)
| | |
(16.5
|
)
| | |
(31.1
|
)
| | |
(35.0
|
)
|
Restructuring expense
| |
(1.0
|
)
| | |
(0.9
|
)
| | |
(3.0
|
)
| | |
(1.2
|
)
|
Amortization
| |
(8.8
|
)
| | |
(8.9
|
)
| | |
(17.6
|
)
| | |
(17.9
|
)
|
Other
| |
(0.1
|
)
| | |
-
| | | |
(0.1
|
)
| | |
(0.3
|
)
|
|
| |
| |
| |
|
Total
|
$
|
95.4
|
| |
$
|
106.7
|
| |
$
|
149.0
|
| |
$
|
162.6
|
|
| | | | | | |
|
* Results have been prepared with the Manitowoc Dong Yue business
treated as a discontinued operation.
| | | | |
| | | |
|
THE MANITOWOC COMPANY, INC. |
Unaudited Consolidated Financial Information |
For the Three and Six Months Ended June 30, 2014 and 2013
|
(In millions)
|
|
BALANCE SHEET |
| |
| |
|
| |
| | | | | |
| | June 30, | | December 31, | | | | |
ASSETS | | 2014 | | 2013 | | | | |
Current assets:
| | | | | | | | |
Cash and temporary investments
| |
$
|
103.5
| | |
$
|
54.9
| | | | |
|
Restricted cash
| | |
25.8
| | | |
12.8
| | | | | |
Accounts receivable - net
| | |
316.9
| | | |
255.5
| | | | | |
Inventories - net
| | |
830.9
| | | |
720.8
| | | | | |
Deferred income taxes
| | |
88.8
| | | |
89.9
| | | | | |
Other current assets
| | |
126.2
| | | |
113.9
| | | | | |
Current assets of discontinued operation
| |
|
-
|
| |
|
15.1
|
| | | | |
Total current assets
| | |
1,492.1
| | | |
1,262.9
| | | | | |
| | | | | | | |
|
Property, plant and equipment - net
| | |
601.6
| | | |
578.8
| | | | | |
Intangible assets - net
| | |
1,967.4
| | | |
1,984.8
| | | | | |
Other long-term assets
| | |
126.7
| | | |
126.8
| | | | | |
Long-term assets of discontinued operation
| |
|
-
|
| |
|
23.3
|
| | | | |
TOTAL ASSETS
| |
$
|
4,187.8
|
| |
$
|
3,976.6
|
| | | | |
| | | | | | | |
|
LIABILITIES & STOCKHOLDERS' EQUITY | | | | | | | | |
Current liabilities:
| | | | | | | | |
Accounts payable and accrued expenses
| |
$
|
840.6
| | |
$
|
935.6
| | | | | |
Short-term borrowings
| | |
74.7
| | | |
22.7
| | | | | |
Customer advances
| | |
27.0
| | | |
34.9
| | | | | |
Product warranties
| | |
78.9
| | | |
81.1
| | | | | |
Product liabilities
| | |
26.1
| | | |
25.0
| | | | | |
Current liabilities of discontinued operation
| |
|
-
|
| |
|
26.1
|
| | | | |
Total current liabilities
| | |
1,047.3
| | | |
1,125.4
| | | | | |
| | | | | | | |
|
Long-term debt
| | |
1,747.0
| | | |
1,504.1
| | | | | |
Other non-current liabilities
| | |
548.1
| | | |
562.6
| | | | | |
Long-term liabilities of discontinued operation
| | |
-
| | | |
2.2
| | | | | |
Stockholders' equity
| |
|
845.4
|
| |
|
782.3
|
| | | | |
TOTAL LIABILITIES &
| | | | | | | | |
STOCKHOLDERS' EQUITY
| |
$
|
4,187.8
|
| |
$
|
3,976.6
|
| | | | |
| | | | | | | |
|
CASH FLOW SUMMARY |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2014 | | 2013* | | 2014 | | 2013* |
Net earnings attributable to Manitowoc
| |
$
|
46.6
| | |
$
|
57.6
| | |
$
|
37.8
| | |
$
|
68.0
| |
Non-cash adjustments
| | |
28.2
| | | |
39.0
| | | |
70.7
| | | |
78.2
| |
Changes in operating assets and liabilities
| |
|
(2.3
|
)
| |
|
(48.6
|
)
| |
|
(300.6
|
)
| |
|
(201.1
|
)
|
Net cash provided from (used for) operating activities of continuing
operations
| | |
72.5
| | | |
48.0
| | | |
(192.1
|
)
| | |
(54.9
|
)
|
Net cash used for operating activities of discontinued operations
| |
|
(0.3
|
)
| |
|
(2.4
|
)
| |
|
(7.1
|
)
| |
|
(7.5
|
)
|
Net cash provided from (used for) operating activities
| | |
72.2
| | | |
45.6
| | | |
(199.2
|
)
| | |
(62.4
|
)
|
Capital expenditures
| | |
(18.3
|
)
| | |
(25.6
|
)
| | |
(35.0
|
)
| | |
(46.5
|
)
|
Restricted cash
| | |
-
| | | |
0.3
| | | |
(13.2
|
)
| | |
(0.2
|
)
|
Proceeds from sale of business
| | |
-
| | | |
-
| | | |
-
| | | |
39.2
| |
Proceeds from sale of fixed assets
| | |
1.1
| | | |
0.4
| | | |
2.1
| | | |
0.9
| |
Net cash used for investing activities of discontinued operations
| | |
-
| | | |
(0.2
|
)
| | |
-
| | | |
(0.4
|
)
|
(Payments) proceeds from borrowings - net
| | |
(27.8
|
)
| | |
(44.7
|
)
| | |
296.1
| | | |
84.6
| |
(Payments) proceeds from receivable financing - net
| | |
(5.4
|
)
| | |
16.6
| | | |
(12.6
|
)
| | |
2.3
| |
Stock options exercised
| | |
2.9
| | | |
0.2
| | | |
22.8
| | | |
2.9
| |
Debt issuance costs
| | |
-
| | | |
-
| | | |
(4.9
|
)
| | |
-
| |
Net cash used for financing activities of discontinued operations
| | |
-
| | | |
-
| | | |
(7.2
|
)
| | |
-
| |
Effect of exchange rate changes on cash
| |
|
-
|
| |
|
(2.0
|
)
| |
|
(0.3
|
)
| |
|
(2.0
|
)
|
Net increase (decrease) in cash & temporary investments
| |
$
|
24.7
|
| |
$
|
(9.4
|
)
| |
$
|
48.6
|
| |
$
|
18.4
|
|
| | | | | | | |
|
* Results have been prepared with the Manitowoc Dong Yue 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 June 30, 2014 was $449.5 million. The reconciliation of net income
attributable to Manitowoc to Adjusted EBITDA is as follows (in millions):
|
| |
Net income attributable to Manitowoc
| |
$
|
111.6
| |
Loss from discontinued operations
| | |
4.3
| |
Loss on sale of discontinued operations
| | |
11.0
| |
Depreciation and amortization
| | |
98.9
| |
Interest expense and amortization of deferred financing fees
| | |
113.4
| |
Costs due to early extinguishment of debt
| | |
27.9
| |
Restructuring charges
| | |
6.6
| |
Income taxes
| | |
40.1
| |
Forgiveness of loan to Manitowoc Dong Yue
| | |
39.9
| |
Other
| |
|
(4.2
|
)
|
Adjusted EBITDA
| |
$
|
449.5
|
|
| | | |
|
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 | | Six Months Ended |
| | June 30, | | June 30, |
| | 2014 | | 2013* | | 2014 | | 2013* |
| | | | | | | |
|
Net earnings attributable to Manitowoc
| |
$
|
46.6
| |
$
|
57.6
| |
$
|
37.8
| |
$
|
68.0
|
Special items, net of tax:
| | | | | | | | |
Loss from discontinued operations
| | |
0.3
| | |
4.8
| | |
0.9
| | |
6.9
|
Loss on sale of discontinued operations
| | |
-
| | |
-
| | |
9.9
| | |
1.6
|
Early extinguishment of debt
| | |
-
| | |
-
| | |
16.4
| | |
0.3
|
Restructuring expense
| | |
0.9
| | |
0.6
| | |
2.2
| | |
0.9
|
Forgiveness of loan to Manitowoc Dong Yue
| |
|
-
| |
|
-
| |
|
4.3
| |
|
-
|
Net earnings before special items
| |
$
|
47.8
| |
$
|
63.0
| |
$
|
71.5
| |
$
|
77.7
|
| | | | | | | |
|
Diluted earnings per share
| |
$
|
0.34
| |
$
|
0.43
| |
$
|
0.28
| |
$
|
0.50
|
Special items, net of tax:
| | | | | | | | |
Loss from discontinued operations
| | |
0.00
| | |
0.04
| | |
0.01
| | |
0.05
|
Loss on sale of discontinued operations
| | |
-
| | |
-
| | |
0.07
| | |
0.01
|
Early extinguishment of debt
| | |
-
| | |
-
| | |
0.12
| | |
0.00
|
Restructuring expense
| | |
0.01
| | |
0.00
| | |
0.02
| | |
0.01
|
Forgiveness of loan to Manitowoc Dong Yue
| |
|
-
| |
|
-
| |
|
0.03
| |
|
-
|
Diluted earnings per share before special items
| |
$
|
0.35
| |
$
|
0.47
| |
$
|
0.52
| |
$
|
0.58
|
| | | | | | | |
|
* Results have been prepared with the Manitowoc Dong Yue business
treated as a discontinued operation.
|
|
Contacts:
The Manitowoc Company, Inc.
Carl J. Laurino
Senior Vice
President & Chief Financial Officer
920-652-1720
Source: The Manitowoc Company, Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.