Wisconsin | 1-11978 | 39-0448110 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(d) | Exhibit | |||
99.1 | The Manitowoc Company, Inc. press release dated October 28, 2015. |
THE MANITOWOC COMPANY, INC. | ||
(Registrant) | ||
DATE: October 28, 2015 | /s/ Carl J. Laurino | |
Carl J. Laurino | ||
Senior Vice President & Chief Financial Officer |
Exhibit No. | Description | Furnished Herewith | ||
99.1 | Press Release dated October 28, 2015, regarding the earnings of The Manitowoc Company, Inc. for the three and nine months ended September 30, 2015. | X |
• | Crane revenue - approximate 15 to 20 percent decline |
• | Crane operating margins - low single-digit percentage |
• | Foodservice revenue - approximately flat |
• | Foodservice operating margins - mid-teens percentage |
• | Capital expenditures - approximately $70 million |
• | Depreciation & amortization - approximately $110 million |
• | Interest expense - approximately $90 million |
• | Amortization of deferred financing fees - approximately $4 million |
• | Total leverage - approximately 4.0x debt-to-EBITDA |
• | Effective tax rate excluding one-time costs caused by the spin-off - approximately 30 percent |
• | 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; changes in capex spending by large foodservice chains, 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 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. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales | $ | 863.5 | $ | 986.3 | $ | 2,501.0 | $ | 2,849.1 | ||||||||
Cost of sales | 657.8 | 742.4 | 1,890.3 | 2,108.7 | ||||||||||||
Gross profit | 205.7 | 243.9 | 610.7 | 740.4 | ||||||||||||
Engineering, selling and administrative expenses | 144.4 | 152.1 | 447.7 | 478.9 | ||||||||||||
Restructuring expense | 0.4 | 1.7 | 1.6 | 4.7 | ||||||||||||
Separation expense | 10.0 | — | 19.8 | — | ||||||||||||
Amortization expense | 8.6 | 8.8 | 25.8 | 26.4 | ||||||||||||
Other | 0.1 | — | 0.5 | 0.1 | ||||||||||||
Operating earnings | 42.2 | 81.3 | 115.3 | 230.3 | ||||||||||||
Amortization of deferred financing fees | (1.1 | ) | (1.0 | ) | (3.2 | ) | (3.3 | ) | ||||||||
Interest expense | (24.3 | ) | (24.7 | ) | (72.3 | ) | (69.1 | ) | ||||||||
Loss on debt extinguishment | — | — | — | (25.3 | ) | |||||||||||
Other (expense) income - net | (1.0 | ) | 0.7 | 4.4 | (1.6 | ) | ||||||||||
Earnings from continuing operations before taxes on income | 15.8 | 56.3 | 44.2 | 131.0 | ||||||||||||
Provision (benefit) for taxes on income | 11.1 | (18.1 | ) | 24.6 | 3.7 | |||||||||||
Earnings from continuing operations | 4.7 | 74.4 | 19.6 | 127.3 | ||||||||||||
Discontinued operations: | ||||||||||||||||
Earnings (loss) from discontinued operations, net of income taxes | 0.1 | (0.2 | ) | 0.1 | (1.5 | ) | ||||||||||
Loss on sale of discontinued operations, net of income taxes | — | (1.1 | ) | — | (11.0 | ) | ||||||||||
Net earnings | 4.8 | 73.1 | 19.7 | 114.8 | ||||||||||||
Less: net earnings attributable to noncontrolling interests | — | — | — | 3.9 | ||||||||||||
Net earnings attributable to Manitowoc | $ | 4.8 | $ | 73.1 | $ | 19.7 | $ | 110.9 | ||||||||
Amounts attributable to the Manitowoc common shareholders: | ||||||||||||||||
Earnings from continuing operations | $ | 4.7 | $ | 74.4 | $ | 19.6 | $ | 123.0 | ||||||||
Earnings (loss) from discontinued operations, net of income taxes | 0.1 | (0.2 | ) | 0.1 | (1.1 | ) | ||||||||||
Loss on sale of discontinued operations, net of income taxes | — | (1.1 | ) | — | (11.0 | ) | ||||||||||
Net earnings attributable to Manitowoc | $ | 4.8 | $ | 73.1 | $ | 19.7 | $ | 110.9 | ||||||||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Earnings from continuing operations attributable to the Manitowoc common shareholders, net of income taxes | $ | 0.03 | $ | 0.55 | $ | 0.14 | $ | 0.91 | ||||||||
Loss from discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | — | — | — | (0.01 | ) | |||||||||||
Loss on sale of discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | — | (0.01 | ) | — | (0.08 | ) | ||||||||||
BASIC EARNINGS PER SHARE | $ | 0.04 | $ | 0.54 | $ | 0.14 | $ | 0.82 | ||||||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Earnings from continuing operations attributable to the Manitowoc common shareholders, net of income taxes | $ | 0.03 | $ | 0.54 | $ | 0.14 | $ | 0.89 | ||||||||
Loss from discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | — | — | — | (0.01 | ) | |||||||||||
Loss on sale of discontinued operations attributable to the Manitowoc common shareholders, net of income taxes | — | (0.01 | ) | — | (0.08 | ) | ||||||||||
DILUTED EARNINGS PER SHARE | $ | 0.03 | $ | 0.53 | $ | 0.14 | $ | 0.81 | ||||||||
AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
Average Shares Outstanding - Basic | 136,164,053 | 135,222,411 | 135,983,603 | 134,803,784 | ||||||||||||
Average Shares Outstanding - Diluted | 137,408,104 | 137,597,804 | 137,331,454 | 137,606,011 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales from continuing operations: | ||||||||||||||||
Cranes and related products | $ | 438.2 | $ | 569.2 | $ | 1,322.6 | $ | 1,642.0 | ||||||||
Foodservice equipment | 425.3 | 417.1 | 1,178.4 | 1,207.1 | ||||||||||||
Total | $ | 863.5 | $ | 986.3 | $ | 2,501.0 | $ | 2,849.1 | ||||||||
Operating earnings (loss) from continuing operations: | ||||||||||||||||
Cranes and related products | $ | 4.3 | $ | 41.6 | $ | 40.2 | $ | 118.6 | ||||||||
Foodservice equipment | 70.4 | 61.9 | 167.0 | 185.7 | ||||||||||||
General corporate expense | (13.4 | ) | (11.7 | ) | (44.2 | ) | (42.8 | ) | ||||||||
Restructuring expense | (0.4 | ) | (1.7 | ) | (1.6 | ) | (4.7 | ) | ||||||||
Separation expense | (10.0 | ) | — | (19.8 | ) | — | ||||||||||
Amortization | (8.6 | ) | (8.8 | ) | (25.8 | ) | (26.4 | ) | ||||||||
Other | (0.1 | ) | — | (0.5 | ) | (0.1 | ) | |||||||||
Total | $ | 42.2 | $ | 81.3 | $ | 115.3 | $ | 230.3 |
September 30, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and temporary investments | $ | 75.2 | $ | 68.0 | ||||
Restricted cash | 20.1 | 23.7 | ||||||
Accounts receivable - net | 259.0 | 227.4 | ||||||
Inventories - net | 717.9 | 644.5 | ||||||
Deferred income taxes | 67.4 | 71.3 | ||||||
Other current assets | 129.5 | 144.6 | ||||||
Current assets held for sale | 8.1 | 6.6 | ||||||
Total current assets | 1,277.2 | 1,186.1 | ||||||
Property, plant and equipment - net | 551.8 | 591.0 | ||||||
Intangible assets - net | 1,801.8 | 1,912.8 | ||||||
Other long-term assets | 109.8 | 126.2 | ||||||
Long-term assets held for sale | 64.2 | 0.5 | ||||||
TOTAL ASSETS | $ | 3,804.8 | $ | 3,816.6 | ||||
LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 720.7 | $ | 807.4 | ||||
Short-term borrowings | 63.2 | 80.3 | ||||||
Customer advances | 27.3 | 21.3 | ||||||
Product warranties | 72.8 | 77.7 | ||||||
Product liabilities | 26.8 | 24.6 | ||||||
Current liabilities held for sale | 20.2 | — | ||||||
Total current liabilities | 931.0 | 1,011.3 | ||||||
Long-term debt | 1,575.3 | 1,443.2 | ||||||
Other non-current liabilities | 507.9 | 538.0 | ||||||
Long-term liabilities held for sale | 0.7 | — | ||||||
Stockholders’ equity | 789.9 | 824.1 | ||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 3,804.8 | $ | 3,816.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net earnings attributable to Manitowoc | $ | 4.8 | $ | 73.1 | $ | 19.7 | $ | 110.9 | ||||||||
Non-cash adjustments | 31.3 | 15.6 | 93.5 | 86.3 | ||||||||||||
Changes in operating assets and liabilities | (29.9 | ) | (28.8 | ) | (187.2 | ) | (329.4 | ) | ||||||||
Net cash provided by (used for) operating activities of continuing operations | 6.2 | 59.9 | (74.0 | ) | (132.2 | ) | ||||||||||
Net cash provided by (used for) operating activities of discontinued operations | 0.1 | (0.1 | ) | 0.1 | (7.2 | ) | ||||||||||
Net cash provided by (used for) operating activities | 6.3 | 59.8 | (73.9 | ) | (139.4 | ) | ||||||||||
Capital expenditures | (12.3 | ) | (22.9 | ) | (41.5 | ) | (57.9 | ) | ||||||||
Restricted cash | (0.4 | ) | 0.4 | 2.6 | (12.8 | ) | ||||||||||
Proceeds from sale of fixed assets | 1.2 | 6.7 | 6.3 | 8.8 | ||||||||||||
Proceeds (payments) from borrowings - net | 14.1 | (71.2 | ) | 123.1 | 224.9 | |||||||||||
Payments on receivable financing - net | (0.7 | ) | (2.2 | ) | (10.0 | ) | (14.8 | ) | ||||||||
Stock options exercised | 0.1 | 2.4 | 4.0 | 25.2 | ||||||||||||
Debt issuance costs | — | (0.1 | ) | — | (5.0 | ) | ||||||||||
Net cash used for financing activities of discontinued operations | — | — | — | (7.2 | ) | |||||||||||
Effect of exchange rate changes on cash | (0.8 | ) | (1.6 | ) | (3.4 | ) | (1.9 | ) | ||||||||
Net increase (decrease) in cash and temporary investments | $ | 7.5 | $ | (28.7 | ) | $ | 7.2 | $ | 19.9 |
Net income attributable to Manitowoc | $ | 53.3 | |
Earnings from discontinued operations | (0.2 | ) | |
Depreciation and amortization | 103.6 | ||
Interest expense and amortization of deferred financing fees | 101.5 | ||
Costs due to early extinguishment of debt | 0.2 | ||
Restructuring expense | 5.9 | ||
Separation expense | 19.8 | ||
Income taxes | 29.5 | ||
Pension and post-retirement | 13.8 | ||
Stock-based compensation | 12.5 | ||
Other | 1.8 | ||
Adjusted EBITDA | $ | 341.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net earnings attributable to Manitowoc | $ | 4.8 | $ | 73.1 | $ | 19.7 | $ | 110.9 | ||||||||
Special items, net of tax: | ||||||||||||||||
(Earnings) loss from discontinued operations | (0.1 | ) | 0.2 | (0.1 | ) | 1.1 | ||||||||||
Loss on sale of discontinued operations | — | 1.1 | — | 11.0 | ||||||||||||
Early extinguishment of debt | — | — | — | 16.4 | ||||||||||||
Restructuring expense | 0.3 | 1.5 | 1.1 | 3.7 | ||||||||||||
Separation expense | 7.8 | — | 16.4 | — | ||||||||||||
Tax restructuring benefit | — | (25.8 | ) | — | (25.8 | ) | ||||||||||
Forgiveness of loan to Manitowoc Dong Yue | — | — | — | 4.3 | ||||||||||||
Net earnings before special items | $ | 12.8 | $ | 50.1 | $ | 37.1 | $ | 121.6 | ||||||||
Diluted earnings per share | $ | 0.03 | $ | 0.53 | $ | 0.14 | $ | 0.81 | ||||||||
Special items, net of tax: | ||||||||||||||||
(Earnings) loss from discontinued operations | — | — | — | 0.01 | ||||||||||||
Loss on sale of discontinued operations | — | 0.01 | — | 0.08 | ||||||||||||
Early extinguishment of debt | — | — | — | 0.12 | ||||||||||||
Restructuring expense | — | 0.01 | 0.01 | 0.03 | ||||||||||||
Separation expense | 0.06 | — | 0.12 | — | ||||||||||||
Tax restructuring benefit | — | (0.19 | ) | — | (0.19 | ) | ||||||||||
Forgiveness of loan to Manitowoc Dong Yue | — | — | — | 0.03 | ||||||||||||
Diluted earnings per share before special items | $ | 0.09 | $ | 0.36 | $ | 0.27 | $ | 0.88 |