Wisconsin | 1-11978 | 39-0448110 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
THE MANITOWOC COMPANY, INC. | |
(Registrant) | |
DATE: October 24, 2013 | /s/ Carl J. Laurino |
Carl J. Laurino | |
Senior Vice President & Chief Financial Officer |
Exhibit No. | Description | Furnished Herewith | |||
99.1 | Press Release dated October 24, 2013, regarding the earnings of The Manitowoc Company, Inc. for the three and nine months ended September 30, 2013. | X |
• | 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. |
Three Months Ended September 30, | Nine Months Ended 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 (expense) income - 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 common shareholders, net of income taxes | $ | 0.39 | $ | 0.17 | $ | 0.93 | $ | 0.51 | ||||||||
Earnings (loss) from discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | 0.01 | — | (0.01 | ) | — | |||||||||||
Loss on sale of discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | — | — | (0.01 | ) | — | |||||||||||
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 common shareholders, net of income taxes | $ | 0.39 | $ | 0.17 | $ | 0.92 | $ | 0.50 | ||||||||
Earnings (loss) from discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | 0.01 | — | (0.01 | ) | — | |||||||||||
Loss on sale of discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | — | — | (0.01 | ) | — | |||||||||||
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 |
Three Months Ended September 30, | Nine Months Ended 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 |
September 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
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 | ||||||||
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 |
Three Months Ended September 30, | Nine Months Ended 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 | ) | — | (0.1 | ) | (0.1 | ) | |||||||||
Proceeds from swap monetization | — | 14.8 | — | 14.8 | ||||||||||||
(Payments) proceeds from 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 | ) |
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 |
Three Months Ended September 30, | Nine Months Ended 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 | ) | — | 0.01 | — | |||||||||||
Loss on sale of discontinued operations | — | — | 0.01 | — | ||||||||||||
Early Extinguishment of Debt | — | — | — | — | ||||||||||||
Restructuring expense | — | — | 0.01 | 0.01 | ||||||||||||
Diluted earnings per share before special items | $ | 0.39 | $ | 0.17 | $ | 0.93 | $ | 0.51 |