This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

The Manitowoc Company Reports Financial Results For 2012

Stocks in this article: MTW

■ Foodservice operating margins – continuing mid-teens percentage

■ Capital expenditures – approximately $100 million

■ Depreciation & amortization – approximately $115 million

■ Interest expense – approximately $125 million

■ Amortization of deferred financing fees – approximately $10 million

■ Debt reduction – to exceed $200 million

■ Full-year effective tax rate in mid 30-percent range

Investor Conference Call

On February 1 at 10:00 a.m. ET (9:00 a.m. CT), Manitowoc's senior management will discuss its fourth-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 115 manufacturing, distribution, and service facilities in 26 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 2012, Manitowoc’s revenues totaled $3.9 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;
  • uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth;
  • 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 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 related to new plant start-ups;
  • issues related to plant closings and/or consolidation of existing facilities;
  • issues related to workforce reductions and subsequent rehiring;
  • work stoppages, labor negotiations, labor rates, and temporary labor costs;
  • government approval and funding of projects;
  • the ability to complete and appropriately integrate or transition restructurings, consolidations, acquisitions, divestitures, strategic alliances, and joint ventures; and the finalization of the price and other terms of the foregoing;
  • 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; 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, 2011.

 

THE MANITOWOC COMPANY, INC.

Unaudited Consolidated Financial Information
For the Three and Twelve Months Ended December 31, 2012 and 2011
(In millions, except share data)
     
INCOME STATEMENT                
Three Months Ended Twelve Months Ended
December 31, December 31,

2012*

2011*

2012*

2011*
 
Net sales $ 1,130.4 $ 1,027.9 $ 3,927.0 $ 3,619.2
Cost of sales   883.9     821.3     2,990.6     2,790.6  
Gross profit 246.5 206.6 936.4 828.6
 
Engineering, selling and administrative expenses 154.5 141.6 603.5 565.4
Restructuring expense 7.9 1.8 9.5 5.5
Amortization expense 9.2 9.4 37.1 37.9
Other   0.5     (0.9 )   2.5     (0.5 )
Operating earnings 74.4 54.7 283.8 220.3
Amortization of deferred financing fees (2.1 ) (2.2 ) (8.2 ) (10.4 )
Interest expense (35.9 ) (35.0 ) (137.1 ) (146.7 )
Loss on debt extinguishment (6.3 ) (1.9 ) (6.3 ) (29.7 )
Other (expense) income - net   0.1     (0.8 )   0.1     2.3  
Earnings from continuing operations before taxes on income 30.2 14.8 132.3 35.8
Provision (benefit) for taxes on income   (2.8 )   -     38.7     14.7  
 
Earnings from continuing operations 33.0 14.8 93.6 21.1
 
Discontinued operations:
Loss from discontinued operations, net of income taxes (0.9 ) (1.3 ) (1.0 ) (4.2 )
Loss on sale of discontinued operations, net of income taxes   -     (1.0 )   -     (34.6 )
Net earnings (loss) 32.1 12.5 92.6 (17.7 )
Less net loss attributable to noncontrolling interests   (2.4 )   (2.4 )   (9.1 )   (6.5 )
Net earnings (loss) attributable to Manitowoc   34.5     14.9     101.7     (11.2 )
 
Amounts attributable to the Manitowoc common shareholders:
Earnings from continuing operations 35.4 17.2 102.7 27.6
Loss from discontinued operations, net of income taxes (0.9 ) (1.3 ) (1.0 ) (4.2 )
Loss on sale of discontinued operations, net of income taxes   -     (1.0 )   -     (34.6 )
Net earnings (loss) attributable to Manitowoc 34.5 14.9 101.7 (11.2 )
 
BASIC EARNINGS (LOSS) PER SHARE:
Earnings (loss) from continuing operations attributable to the Manitowoc $ 0.27 $ 0.13 $ 0.78 $ 0.21
common shareholders, net of income taxes
Earnings (loss) from discontinued operations attributable to the Manitowoc (0.01 ) (0.01 ) (0.01 ) (0.03 )
common shareholders, net of income taxes
Loss on sale of discontinued operations attributable to the Manitowoc - (0.01 ) - (0.27 )
common shareholders, net of income taxes
       
BASIC EARNINGS (LOSS) PER SHARE: $ 0.26   $ 0.11   $ 0.77   $ (0.09 )
 
DILUTED EARNINGS (LOSS) PER SHARE:
Earnings (loss) from continuing operations attributable to the Manitowoc $ 0.26 $ 0.13 $ 0.77 $ 0.21
common shareholders, net of income taxes
Earnings (loss) from discontinued operations attributable to the Manitowoc (0.01 ) (0.01 ) (0.01 ) (0.03 )
common shareholders, net of income taxes
Loss on sale of discontinued operations attributable to the Manitowoc - (0.01 ) - (0.26 )
common shareholders, net of income taxes
       
DILUTED EARNINGS (LOSS) PER SHARE $ 0.26   $ 0.11   $ 0.76   $ (0.08 )
 
AVERAGE SHARES OUTSTANDING:
Average Shares Outstanding - Basic 131,782,183 130,535,697 131,447,895 130,481,436
Average Shares Outstanding - Diluted 133,730,595 132,740,196 133,317,050 133,377,109
 
SEGMENT SUMMARY                
Three Months Ended Twelve Months Ended
December 31, December 31,

2012*

2011*

2012*

2011*
Net sales from continuing operations:
Cranes and related products $ 767.2 $ 687.6 $ 2,440.8 $ 2,164.6
Foodservice equipment   363.2     340.3     1,486.2     1,454.6  
Total $ 1,130.4   $ 1,027.9   $ 3,927.0   $ 3,619.2  
 
Operating earnings (loss) from continuing operations:
Cranes and related products $ 56.3 $ 38.8 $ 156.0 $ 108.2
Foodservice equipment 50.3 44.9 240.6 216.3
General corporate expense (14.6 ) (18.7 ) (63.7 ) (61.3 )
Restructuring expense (7.9 ) (1.8 ) (9.5 ) (5.5 )
Amortization (9.2 ) (9.4 ) (37.1 ) (37.9 )
Other (0.5 ) 0.9 (2.5 ) 0.5
       
Total $ 74.4   $ 54.7   $ 283.8   $ 220.3  
 
 
  THE MANITOWOC COMPANY, INC.
Unaudited Consolidated Financial Information
For the Three and Twelve Months Ended December 31, 2012 and 2011
(In millions)
     
BALANCE SHEET          
 
December 31, December 31,
ASSETS

2012*

2011*

Current assets:
Cash and temporary investments $ 76.1 $ 71.3
Restricted cash 10.6 7.2
Accounts receivable - net 332.7 294.5
Inventories - net 707.6 662.3
Deferred income taxes 89.0 116.7
Other current assets 105.2 77.8

Current assets of discontinued operations

  6.8     7.1  
Total current assets 1,328.0 1,236.9
 
Property, plant and equipment - net 556.1 564.5
Intangible assets - net 2,007.1

2,039.6

Other long-term assets 130.3 144.5

Long-term assets of discontinued operations

  35.8    

37.1

 
TOTAL ASSETS $ 4,057.3   $ 4,022.6  
 
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 912.9 $ 864.2
Short-term borrowings 92.8 79.1
Customer advances 24.2 35.1
Product warranties 82.1 93.1
Product liabilities 27.9 26.8

Current liabilities of discontinued operations

  6.0     5.2  
Total current liabilities 1,145.9 1,103.5
 
Long-term debt 1,732.0 1,810.9
Other non-current liabilities 590.7 619.6

Long-term liabilities of discontinued operations

7.4 7.5
Stockholders' equity   581.3     481.1  
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 4,057.3   $ 4,022.6  
 
CASH FLOW SUMMARY                  
Three Months Ended Twelve Months Ended
December 31, December 31,

2012*

2011*

2012*

2011*
Net earnings (loss) attributable to Manitowoc $ 34.5 $ 14.9 $ 101.7 $ (11.2 )
Non-cash adjustments 38.8 65.3 133.3 233.3
Changes in operating assets and liabilities   160.3     118.2     (74.7 )   (188.8 )
Net cash provided from operating activities of continuing operations 233.6 198.4 160.3 33.3
Net cash provided from (used for) operating activities of discontinued operations   (0.4 )   (0.5 )   2.0     (17.7 )
Net cash provided from operating activities 233.2 197.9 162.3 15.6
Capital expenditures (22.7 ) (32.6 ) (72.9 ) (64.8 )
Restricted cash (0.4 ) 2.0 (3.3 ) 2.2
Proceeds from sale of business - - - 143.6
Proceeds from sale of fixed assets 0.2 11.7 0.9 17.5
Net cash used for investing activities of discontinued operations (0.1 ) - (0.2 ) (0.1 )
Proceeds from swap monetization - - 14.8 21.5
Payments on borrowings - net (203.9 ) (211.7 ) (77.7 ) (139.5 )
Proceeds from (payments on) receivable financing - net 11.1 22.2 (10.4 ) 14.8
Dividends paid (10.6 ) (10.6 ) (10.6 ) (10.6 )
Stock options exercised 3.8 1.0 6.4 2.6
Debt issuance costs (5.4 ) (0.4 ) (5.7 ) (14.7 )
Effect of exchange rate changes on cash   (0.1 )   (1.2 )   1.2     (3.2 )
Net increase (decrease) in cash & temporary investments $ 5.1   $ (21.7 ) $ 4.8   $ (15.1 )
 
 

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 December 31, 2012 was $408.1 million. The reconciliation of net income attributable to Manitowoc to Adjusted EBITDA is as follows (in millions):

   
Net income attributable to Manitowoc $ 101.7
Loss from discontinued operations 1.0
Depreciation and Amortization 106.6
Interest expense and amortization of deferred financing fees 145.3
Costs due to early extinguishment of debt 6.3
Restructuring charges 9.5
Income taxes 38.7
Other   (1.0 )
Adjusted EBITDA $ 408.1  

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   Twelve Months Ended
December 31, December 31,

2012*

 

2011*

2012*

  2011*
 
Net earnings (loss) attributable to Manitowoc $ 34.5 $ 14.9 $ 101.7 $ (11.2 )
Special items, net of tax:
Loss from discontinued operations 0.9 1.3 1.0 4.2
Loss on sale of discontinued operations - 1.0 - 34.6
Early extinguishment of debt 4.1 1.2 4.1 19.3
Restructuring expense 7.5 1.2 8.5 3.6
Reversal of tax accrual (11.6 ) - (11.6 ) -
Other   -     (0.7 )   -     (0.7 )
Net earnings before special items $ 35.4   $ 18.9   $ 103.7   $ 49.8  
 
Diluted earnings (loss) per share $ 0.26 $ 0.11 $ 0.76 $ (0.08 )
Special items, net of tax:
Loss from discontinued operations 0.01 0.01 0.01 0.03
Loss on sale of discontinued operations - 0.01 - 0.26
Early extinguishment of debt 0.03 0.01 0.03 0.14
Restructuring expense 0.06 0.01 0.06 0.03
Reversal of tax accrual (0.09 ) - (0.09 ) -
Other   -     (0.01 )   -     (0.01 )
Diluted earnings per share before special items $ 0.27   $ 0.14   $ 0.78   $ 0.37  
 

* Results have been prepared with the recently announced divested Jackson warewashing business treated as a discontinued operation. 2011 results have been revised to reflect the correction of errors identified in the third and fourth quarters of 2012, which were immaterial to the prior periods.

 




4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs