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The Manitowoc Company Reports Fourth-Quarter and Full-Year 2021 Financial Results and Full-Year 2022 Guidance

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Fourth-quarter 2021 Highlights

  • Net sales of $497.8 million

  • Adjusted EBITDA(1) of $34.2 million

  • Diluted net income (loss) per share of $(0.10), $0.27 on an adjusted basis(1)

Full-year 2021 Highlights

  • Net sales of $1,720.2 million

  • Adjusted EBITDA(1) of $116.0 million

  • Diluted net income per share of $0.31, $0.86 on an adjusted basis(1)

  • Free cash flow of $35.8 million

MILWAUKEE, Wis., February 21, 2022--(BUSINESS WIRE)--The Manitowoc Company, Inc. (NYSE: MTW), (the "Company" or "Manitowoc") a leading global manufacturer of cranes and lifting solutions, today reported a fourth-quarter net loss of $(3.6) million, or $(0.10) per diluted share. The results were unfavorably impacted by a $13.9 million charge due to a legal matter with the U.S. Environmental Protection Agency. Fourth-quarter adjusted net income(1) was $9.4 million, or $0.27 per diluted share.

Net sales in the fourth quarter increased 15.7% year-over-year to $497.8 million and were unfavorably impacted from changes in foreign currency exchange rates of $8.5 million. Adjusted EBITDA(1) in the quarter was $34.2 million, or 6.9% of net sales.

Fourth-quarter orders increased 21.0% year-over-year to $615.2 million and were unfavorably impacted by $13.0 million, or 2.1%, from changes in foreign currency exchange rates. Backlog as of December 31, 2021 totaled $1,010.9 million, an increase of 86.1% year-over-year.

Full-year 2021 net sales of $1,720.2 million were favorably impacted by $31.0 million from changes in foreign currency exchange rates. Full-year 2021 adjusted EBITDA(1) was $116.0 million, or 6.7% of net sales. Manitowoc recorded full-year net income of $11.0 million, or $0.31 per diluted share. Full-year net income on an adjusted basis(1) was $30.6 million, or $0.86 per diluted share.

"In spite of the multitude of operational challenges we faced during the year, the Manitowoc team ended the quarter exceptionally strong and delivered great results," commented Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc. "As the crane market dynamics remain robust, orders for the quarter increased 21% year-over-year, and our backlog ended the year in excess of $1.0 billion, our highest level in over 10 years. This improved demand combined with our recent acquisitions provide us with a solid foundation as we focus on growth in 2022 and beyond. As previously indicated, we will continue to battle inflation, parts shortages, and logistic disruptions. However, we expect those headwinds to subside as the year progresses," said Ravenscroft.

"On the back of our four strategic initiatives, we are introducing Cranes+50, which codifies our ambition to increase our non-new machine sales by 50% over the next five years. Growing our aftermarket business is critical to reducing our cyclicality and expanding our margins long-term," concluded Ravenscroft.

We are introducing 2022 guidance based on the current economic environment and our expectations for the remainder of 2022 as follows:

  • Net sales - approximately $2.0 billion to $2.2 billion

  • Adjusted EBITDA - approximately $130 million to $160 million

  • Depreciation and amortization - approximately $65 million

  • Interest expense - approximately $28 million to $30 million

  • Provision for income taxes - approximately $13 million to $17 million

  • Adjusted diluted earnings per share - approximately $0.65 to $1.35

  • Capital expenditures - approximately $85 million, of which approximately $35 million will be funded from sales of the existing rental fleet

Investor Conference Call

The Manitowoc Company will host a conference call for security analysts and institutional investors to discuss its fourth-quarter and full-year 2021 earnings results on Tuesday, February 22, 2022, at 10:00 a.m. ET (9:00 a.m. CT). A live audio webcast of the call, along with the related presentation, published in conjunction with this press release, 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, was founded in 1902 and has over a 119-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain and Shuttlelift brand names.

Footnote

(1) Adjusted net income (loss), adjusted diluted net income (loss) per share, adjusted EBITDA, adjusted operating income and free cash flows 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:

  • The negative impacts COVID-19 has had and will continue to have on Manitowoc’s business, financial condition, cash flows, results of operations and supply chain, as well as customer demand (including future uncertain impacts);

  • actions of competitors;

  • changes in raw material and commodity prices;

  • 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;

  • failure to comply with regulatory requirements related to the products the Company sells;

  • the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;

  • the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures or other significant transactions;

  • unanticipated changes in revenues, margins and costs;

  • geographic factors and political and economic conditions and risks;

  • the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies;

  • risks and factors detailed in Manitowoc's 2021 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 Reports on Form 10-K for the fiscal years ended December 31, 2020 and 2021.

THE MANITOWOC COMPANY, INC.

Unaudited Consolidated Financial Information

For the three and twelve months ended December 31, 2021 and 2020

(In millions, except per share data)

CONSOLIDATED STATEMENT OF OPERATIONS

Three Months Ended
December 31,

Year Ended
December 31,

2021

2020

2021

2020

Net sales

$

497.8

$

430.3

$

1,720.2

$

1,443.4

Cost of sales

418.4

352.3

1,413.0

1,188.7

Gross profit

79.4

78.0

307.2

254.7

Operating costs and expenses:

Engineering, selling and administrative expenses

77.5

53.7

258.5

208.8

Asset impairment expense

1.9

Amortization of intangible assets

0.7

0.1

1.4

0.3

Restructuring (income) expense

(0.6

)

1.4

(1.1

)

7.0

Total operating costs and expenses

77.6

55.2

260.7

216.1

Operating income

1.8

22.8

46.5

38.6

Other income (expense):

Interest expense

(7.4

)

(7.4

)

(28.9

)

(29.1

)

Amortization of deferred financing fees

(0.4

)

(0.4

)

(1.5

)

(1.5

)

Other income (expense) - net

1.2

(5.7

)

1.0

(10.0

)

Total other expense

(6.6

)

(13.5

)

(29.4

)

(40.6

)

Income (loss) before income taxes

(4.8

)

9.3

17.1

(2.0

)

Provision (benefit) for income taxes

(1.2

)

7.5

6.1

17.1

Net income (loss)

$

(3.6

)

$

1.8

$

11.0

$

(19.1

)

Per Share Data

Basic income (loss) per common share

$

(0.10

)

$

0.05

$

0.32

$

(0.55

)

Diluted income (loss) per common share

$

(0.10

)

$

0.05

$

0.31

$

(0.55

)

Weighted average shares outstanding - Basic

35,049,388

34,573,243

34,903,189

34,691,063

Weighted average shares outstanding - Diluted

35,049,388

34,711,032

35,452,555

34,691,063

THE MANITOWOC COMPANY, INC.

Unaudited Consolidated Financial Information

As of December 31, 2021 and December 31, 2020

(In millions, except share amounts)

CONSOLIDATED BALANCE SHEETS

2021

2020

Assets

Current Assets:

Cash and cash equivalents

$

75.4

$

128.7

Accounts receivable, less allowances of $7.3 and $8.5, respectively

236.1

215.1

Inventories — net

576.8

473.1

Notes receivable — net

16.7

13.6

Other current assets

36.8

35.5

Total current assets

941.8

866.0

Property, plant and equipment — net

358.8

294.3

Operating lease right-of-use assets

40.6

37.9

Goodwill

249.7

235.1

Other intangible assets — net

139.6

121.6

Other non-current assets

44.7

48.6

Total assets

$

1,775.2

$

1,603.5

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable and accrued expenses

$

413.4

$

329.4

Short-term borrowings and current portion of long-term debt

7.3

10.5

Product warranties

49.0

50.2

Customer advances

28.7

25.5

Other liabilities

22.6

20.2

Total current liabilities

521.0

435.8

Non-Current Liabilities:

Long-term debt

399.9

300.4

Operating lease liabilities

29.2

28.4

Deferred income taxes

6.5

5.9

Pension obligations

69.4

89.3

Postretirement health and other benefit obligations

12.1

14.0

Long-term deferred revenue

22.9

32.4

Other non-current liabilities

51.8

53.8

Total non-current liabilities

591.8

524.2

Total stockholders' equity:

Preferred stock (3,500,000 shares authorized of $.01 par value; none outstanding)

Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,056,252
and 34,580,638 shares outstanding, respectively)

0.4

0.4

Additional paid-in capital

602.4

595.1

Accumulated other comprehensive loss

(102.4

)

(97.5

)

Retained earnings

227.9

216.9

Treasury stock, at cost (5,737,731 and 6,213,345 shares, respectively)

(65.9

)

(71.4

)

Total stockholders’ equity

662.4

643.5

Total liabilities and stockholders' equity

$

1,775.2

$

1,603.5

THE MANITOWOC COMPANY, INC.

Unaudited Consolidated Financial Information

For the three and twelve months ended December 31, 2021 and 2020

(In millions)

CONSOLIDATED STATEMENT OF CASH FLOWS

Three Months Ended
December 31,

Year Ended
December 31,

2021

2020

2021

2020

Cash Flows From Operating Activities:

Net income (loss)

$

(3.6

)

$

1.8

$

11.0

$

(19.1

)

Adjustments to reconcile net income (loss) to cash provided
by (used for) operating activities:

Asset impairment expense

1.9

Depreciation expense

16.0

9.9

45.5

37.2

Amortization of intangible assets

0.7

0.1

1.4

0.3

Amortization of deferred financing fees

0.4

0.4

1.5

1.5

Deferred income tax - net

(0.3

)

4.8

0.6

4.8

Loss on sale of property, plant and equipment

0.3

0.2

Net unrealized foreign currency transaction losses (gains)

(0.4

)

0.8

0.7

3.6

Stock-based compensation expense

0.7

0.6

7.1

6.0

Other

(0.4

)

0.4

3.2

0.5

Changes in operating assets and liabilities, net of effects
from acquisitions

Accounts receivable

(18.2

)

(23.8

)

(5.2

)

(37.7

)

Inventories

26.1

63.6

(68.3

)

8.3

Notes receivable

2.0

1.2

1.0

7.4

Other assets

2.8

2.9

(7.6

)

(7.1

)

Accounts payable

(14.2

)

(14.9

)

62.9

(20.1

)

Accrued expenses and other liabilities

(3.7

)

(11.9

)

20.3

(20.7

)

Net cash provided by (used for) operating activities

8.2

35.9

76.2

(35.1

)

Cash Flows From Investing Activities:

Capital expenditures

(18.1

)

(11.0

)

(40.4

)

(26.3

)

Proceeds from sale of property, plant and equipment

0.2

0.3

0.3

0.5

Acquisition of business

(135.3

)

(186.2

)

Net cash used for investing activities

(153.2

)

(10.7

)

(226.3

)

(25.8

)

Cash Flows From Financing Activities:

Proceeds from revolving credit facility

100.0

50.0

Payments on revolving credit facility

(50.0

)

Other debt - net

(1.5

)

(0.2

)

(4.9

)

(2.9

)

Exercises of stock options including windfall tax benefits

...

5.8

0.1

Common stock repurchases

...