Manitowoc Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

mtw-10q_20200630.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-11978

The Manitowoc Company, Inc.

(Exact Name of Registrant as Specified in its Charter)

Wisconsin		39-0448110
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification Number)

11270 West Park Place

Suite 1000

Milwaukee, Wisconsin

53224

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (414) 760-4600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 Par Value

MTW

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of June 30, 2020, the registrant had 34,521,063 shares of common stock, $.01 par value per share, outstanding.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Operations

For the three and six months ended June 30, 2020 and 2019

(Unaudited)

($ in millions, except per share and average share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net sales	$	328.3		$	504.7		$	657.5		$	922.7
Cost of sales		279.9			409.5			545.9			747.3
Gross profit		48.4			95.2			111.6			175.4
Operating costs and expenses:
Engineering, selling and administrative expenses		49.7			50.5			105.6			109.9
Amortization of intangible assets		0.1			0.1			0.2			0.2
Restructuring expense		0.2			2.7			1.7			7.2
Total operating costs and expenses		50.0			53.3			107.5			117.3
Operating income (loss)		(1.6	)		41.9			4.1			58.1
Other income (expense):
Interest expense		(7.2	)		(7.5	)		(14.4	)		(18.4	)
Amortization of deferred financing fees		(0.3	)		(0.4	)		(0.7	)		(0.8	)
Loss on debt extinguishment		—			—			—			(25.0	)
Other income (expense) - net		(2.9	)		15.9			(6.9	)		12.6
Total other income (expense)		(10.4	)		8.0			(22.0	)		(31.6	)
Income (loss) before income taxes		(12.0	)		49.9			(17.9	)		26.5
Provision for income taxes		0.7			3.9			2.6			7.2
Net income (loss)	$	(12.7	)	$	46.0		$	(20.5	)	$	19.3

Per Share Data
Basic income (loss) per common share	$	(0.37	)	$	1.29		$	(0.59	)	$	0.54

Diluted income (loss) per common share	$	(0.37	)	$	1.29		$	(0.59	)	$	0.54

Weighted average shares outstanding - basic		34,519,889			35,595,718			34,827,582			35,619,145
Weighted average shares outstanding - diluted		34,519,889			35,725,908			34,827,582			35,799,089

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the three and six months ended June 30, 2020 and 2019

(Unaudited)

($ in millions)

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
Net income (loss)	$	(12.7	)	$	46.0	$	(20.5	)	$	19.3
Other comprehensive income (loss), net of income tax
Unrealized income on derivatives, net of income tax provision of $0.0, $0.0, $0.0 and $0.0, respectively		0.1			0.6		0.1			0.7
Employee pension and postretirement benefit expense, net of income tax benefit of $0.3, $0.0, $0.0 and $0.0, respectively		0.6			0.5		1.8			1.0
Foreign currency translation adjustments		8.6			1.2		(5.0	)		(1.3	)
Total other comprehensive income (loss), net of income tax		9.3			2.3		(3.1	)		0.4
Comprehensive income (loss)	$	(3.4	)	$	48.3	$	(23.6	)	$	19.7

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Balance Sheets

As of June 30, 2020 and December 31, 2019

(Unaudited)

($ in millions, except per share amounts)

	June 30, 2020			December 31, 2019
Assets
Current Assets:
Cash and cash equivalents	$	128.3		$	199.3
Accounts receivable, less allowances of $9.4 and $7.9, respectively		171.9			168.3
Inventories — net		534.5			461.4
Notes receivable — net		14.0			17.4
Other current assets		33.0			26.0
Total current assets		881.7			872.4

Property, plant and equipment — net		277.8			289.9
Operating lease right-of-use assets		42.8			47.6
Goodwill		232.0			232.5
Other intangible assets — net		115.9			116.3
Other non-current assets		54.7			59.0
Total assets	$	1,604.9		$	1,617.7
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued expenses	$	332.6		$	340.8
Short-term borrowings and current portion of long-term debt		4.3			3.8
Product warranties		45.8			47.2
Customer advances		15.8			25.8
Other liabilities		22.2			23.3
Total current liabilities		420.7			440.9
Non-Current Liabilities:
Long-term debt		356.9			308.4
Operating lease liabilities		33.3			37.6
Deferred income taxes		4.3			5.5
Pension obligations		83.7			86.4
Postretirement health and other benefit obligations		15.6			16.4
Long-term deferred revenue		27.4			30.3
Other non-current liabilities		47.3			46.3
Total non-current liabilities		568.5			530.9
Commitments and contingencies (Note 18)
Stockholders' Equity:
Preferred stock (authorized 3,500,000 shares of $.01 par value; none outstanding)		—			—
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 34,521,063 and 35,374,537 shares outstanding, respectively)		0.4			0.4
Additional paid-in capital		596.0			592.2
Accumulated other comprehensive loss		(124.1	)		(121.0	)
Retained earnings		215.5			236.2
Treasury stock, at cost (6,272,920 and 5,419,446 shares, respectively)		(72.1	)		(61.9	)
Total stockholders' equity		615.7			645.9
Total liabilities and stockholders' equity	$	1,604.9		$	1,617.7

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2020 and 2019

(Unaudited)

($ in millions)

	Six Months Ended June 30,
	2020			2019
Cash Flows from Operating Activities:
Net income (loss)	$	(20.5	)	$	19.3
Adjustments to reconcile net income (loss) to cash used for operating activities:
Depreciation		18.1			17.4
Amortization of intangible assets		0.2			0.2
Amortization of deferred financing fees		0.7			0.8
Loss on debt extinguishment		—			25.0
Other		5.9			6.0
Changes in operating assets and liabilities:
Accounts receivable		(6.4	)		(222.6	)
Inventories		(73.4	)		(106.5	)
Notes receivable		5.6			(2.3	)
Other assets		(6.4	)		26.1
Accounts payable		(6.5	)		22.1
Accrued expenses and other liabilities		(16.0	)		(20.9	)
Net cash used for operating activities		(98.7	)		(235.4	)

Cash Flows from Investing Activities:
Capital expenditures		(8.0	)		(9.7	)
Proceeds from sale of fixed assets		0.1			4.8
Cash receipts on sold accounts receivable		—			126.3
Net cash provided by (used for) investing activities		(7.9	)		121.4

Cash Flows from Financing Activities:
Proceeds from revolving credit facility		50.0			82.8
Payments on revolving credit facility		—			(82.8	)
Payments on long-term debt		—			(276.6	)
Proceeds from long-term debt		—			300.0
Other debt - net		(1.5	)		1.9
Debt issuance costs		—			(8.2	)
Exercises of stock options		0.1			0.1
Common stock repurchases		(12.0	)		(7.4	)
Net cash provided by financing activities		36.6			9.8

Effect of exchange rate changes on cash and cash equivalents		(1.0	)		(1.1	)

Net decrease in cash and cash equivalents		(71.0	)		(105.3	)
Cash and cash equivalents at beginning of period		199.3			140.3
Cash and cash equivalents at end of period	$	128.3		$	35.0

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Equity

For the three and six months ended June 30, 2020 and 2019

(Unaudited)

($ in millions, except share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Common Stock - Par Value
Balance at beginning of period	$	0.4		$	0.4		$	0.4		$	0.4
Balance at end of period	$	0.4		$	0.4		$	0.4		$	0.4
Additional Paid-in Capital
Balance at beginning of period	$	593.7		$	586.0		$	592.2		$	584.8
Stock options exercised and issuance of other stock awards		(0.2	)		(0.2	)		(2.1	)		(2.1	)
Stock-based compensation		2.5			3.0			5.9			6.1
Balance at end of period	$	596.0		$	588.8		$	596.0		$	588.8
Accumulated Other Comprehensive Loss
Balance at beginning of period	$	(133.4	)	$	(118.5	)	$	(121.0	)	$	(116.6	)
Other comprehensive income (loss)		9.3			2.3			(3.1	)		0.4
Balance at end of period	$	(124.1	)	$	(116.2	)	$	(124.1	)	$	(116.2	)
Retained Earnings

Price	12.43	EPS	-1
Shares	36	P/E	-11
MCap	444	P/FCF	-2
Net Debt	242	EBIT	-9
TEV	685	TEV/EBIT	-76
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-08-06
10-Q	2020-03-31	Filed 2020-05-08
10-K	2019-12-31	Filed 2020-02-14
10-Q	2019-09-30	Filed 2019-11-08
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-10
10-K	2018-12-31	Filed 2019-02-13
10-Q	2018-09-30	Filed 2018-11-06
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-08
10-K	2017-12-31	Filed 2018-02-23
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-06-30	Filed 2017-08-08
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-09-30	Filed 2016-11-03
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-30	Filed 2015-11-03
10-Q	2015-06-30	Filed 2015-08-07
10-Q	2015-03-31	Filed 2015-05-06
10-K	2014-12-31	Filed 2015-02-20
10-Q	2014-09-30	Filed 2014-10-31
10-Q	2014-06-30	Filed 2014-08-01
10-Q	2014-03-31	Filed 2014-05-06
10-K	2013-12-31	Filed 2014-02-21
10-Q	2013-09-30	Filed 2013-11-01
10-Q	2013-06-30	Filed 2013-08-02
10-Q	2013-03-31	Filed 2013-05-07
10-K	2012-12-31	Filed 2013-02-28
10-Q	2012-09-30	Filed 2012-11-05
10-Q	2012-06-30	Filed 2012-08-07
10-Q	2012-03-31	Filed 2012-05-04
10-K	2011-12-31	Filed 2012-02-29
10-Q	2011-09-30	Filed 2011-11-08
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-03-31	Filed 2011-05-10
10-K	2010-12-31	Filed 2011-03-01
10-Q	2010-09-30	Filed 2010-11-09
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-01

8-K	2020-08-05	Earnings, Exhibits
8-K	2020-05-07
8-K	2020-05-05
8-K	2020-04-06
8-K	2020-03-27
8-K	2020-02-06
8-K	2019-12-12
8-K	2019-11-07
8-K	2019-10-11
8-K	2019-06-30
8-K	2019-05-07
8-K	2019-03-31
8-K	2019-03-25
8-K	2019-03-11
8-K	2019-03-06
8-K	2018-12-31
8-K	2018-11-12
8-K	2018-09-30
8-K	2018-07-31
8-K	2018-06-30
8-K	2018-05-01
8-K	2018-03-31
8-K	2018-03-20
8-K	2018-02-23
8-K	2018-02-08

EX-10	mtw-ex10_343.htm
EX-31	mtw-ex31_7.htm
EX-32.1	mtw-ex321_6.htm
EX-32.2	mtw-ex322_8.htm

MTW 10Q Quarterly Report

Manitowoc Earnings 2020-06-30