The Manitowoc Company, Inc.

Transcription

1 The Manitowoc Company, Inc. RBC CAPITAL MARKETS GLOBAL INDUSTRIALS CONFERENCE SEPTEMBER 5, 2018 LAS VEGAS, NV Dave Antoniuk, SVP & CFO Ion Warner, VP Marketing & IR

2 Forward- Looking Statements Safe Harbor Statement Any statements contained in this presentation that are not historical facts are forward-looking statements. These statements are based on the current expectations of the management of the company, only speak as of the date on which they are made, and are subject to uncertainty and changes in circumstances. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. 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. For a list of factors that could cause actual results to differ materially from those discussed or implied, please see the company s periodic filings with the SEC, particularly those disclosed in Risk Factors in the company s Form 10-K for the fiscal year ended December 31, Any forward-looking statements in this presentation are intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of Non-GAAP Measures The company uses certain non-gaap measures in discussing the company s performance. The company believes that 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; however, these measures are not substitutes for GAAP financial measures. The reconciliation of those measures to the most comparable GAAP measures is detailed in Manitowoc s press release for the second-quarter of 2018, which is available at together with this presentation. 2

3 Industry-Leading Crane Company Global leader in lifting equipment Global customer financing and aftermarket solutions Serving wide range of end markets Stable customer base across diverse range of geographies Strategically located manufacturing footprint allows us to serve attractive markets globally Leader in innovation (41 new products introduced since being a stand-alone crane company) Continued transformation to a high quality, higher margin crane company compared to peers 3

4 Strong Aftermarket Solutions Aftermarket Parts and Service Skills Training Fleet Management/ Diagnostics (Tower) Financing Rebuild/Refurbish Special Applications 4

5 Situational Analysis Geographic Exposure 1 Crane market seeing sustainable growth Americas: growth in U.S. commercial construction and energy end markets Western/Central Europe: Stable commercial and industrial demand APAC: Australia continues to improve Improving U.S. rental utilization rates 1 Reflects 2017FY sales Market recovery coming into focus 5

6 State of the Business Signs of Market Recovery from Cyclical Downturn Year-over-Year order growth Increasing manufacturing flexibility to manage through the cycle Renewed Focus on Quality and Reliability Embed quality prior to new product delivery Winning back customers Well Accepted New Products New crane shipments starting Continue NPD pipeline Balance Sheet Focus Sufficient liquidity Cash flow focus 6

7 Global Footprint Manufacturing footprint and extensive sales and customer service reach to serve both mature and emerging markets 7

8 The Manitowoc Way Customers 1. Margin Expansion Velocity Innovation 2. Growth 3. Innovation Shareholders Employees 4. Velocity 8

9 Strategic Priorities Margin Expansion Optimize Global Capacity Increase Manufacturing Agility Improve Productivity Reduce Material Cost Growth Renew Focus on Quality & Reliability Strengthen Channel Management Increase Market Share Innovation Implement VOC Process in New Product Development Leverage Advanced Manufacturing Technologies Velocity Implement The Manitowoc Way Re-invigorate the Company Culture Strengthen Balance Sheet by Better Working Capital Mgmt. 9

10 Progress on Strategic Priorities Margin Expansion Pricing to offset input cost headwinds Proactive support of supply chain Growth Localized sourcing strategy leveraging available manufacturing capacity Deliver sales performance excellence using The Manitowoc Way principles Innovation Five new products introduced at Crane Days including new 100-ton crawler Velocity China tower crane development and launch and factory transformation 10

11 S e c o n d - Q u a r t e r U p d a t e 11

12 Financial (3) & Other Key Metrics Q Q Y/Y Orders $ $ % Net Sales % SG&A Expense % Operating income (loss) % Non-GAAP adjusted operating % income (loss) (1) Income (loss) NmN Non-GAAP adjusted income (loss) (1) % Non-GAAP Adjusted EBITDA (1) % CFOA (2) (107.8) (81.4) (32.4)% Non-GAAP CFOA (1) (5.7) (12.0) 52.5 % Capital Expenditures % Backlog $ $ % (1) Please see appendix for reconciliation of GAAP to non-gaap measures (2) Cash Flow from Operating Activities (3) All financial data from continuing operations 12

13 2018 Guidance- Updated 2018 Guidance Revenue Approximately $1.775 to $1.850 billion Adjusted EBITDA Approximately $105 to $115 million Depreciation Approximately $36 million Restructuring expense Approximately $13 to $15 million Capital expenditures Approximately $25 to $30 million Income tax expense Approximately $14 to $20 million 13

14 August 7, 2018 Guidance $1, % $ % 5.3% 6.2% 5.9% 5.0% $500 1H 17 2H 17 1H 18 2H 18 Revenue EBITDA % 0.0% 1H 17, 2H 17, 1H 18 actual results 2H 18 at midpoint of updated external guidance 14

15 Appendix 15

16 Appendix- Adjusted EBITDA Reconciliation Adjusted EBITDA and Non-GAAP Adjusted Operating Income (loss) The company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, plus an addback of certain restructuring charges. The reconciliation of GAAP net income (loss) to adjusted EBITDA and adjusted operating income (loss) for the current and previous four quarters, as well as the trailing twelve months is as follows ($ in millions): Trailing Twelve 6/30/2018 3/31/ /31/2017 9/30/2017 Months Income (loss) from continuing operations $ 9.9 $ (10.0) $ 35.6 $ 9.7 $ 45.2 Interest expense and amortization of deferred financing fees Provision (benefit) for taxes (1.2) 3.9 (40.2) (13.1) (50.6) Depreciation expense Amortization of intangible assets EBITDA Restructuring expense Asset impairment expense Other (income) expense - net (1) 5.6 (2.7) Adjusted EBITDA Depreciation expense (9.1) (9.1) (9.0) (9.2) (36.4) Non-GAAP adjusted operating income (loss) Restructuring expense (3.8) (6.2) (5.9) (3.7) (19.6) Asset impairment expense (0.4) (0.1) (0.5) Amortization of intangible assets (0.1) (0.1) (0.1) (0.3) Other operating income (expense) - net (0.1) (0.1) GAAP operating income (loss) $ 24.1 $ 1.7 $ 8.5 $ 9.7 $ 44.0 Adjusted EBITDA margin percentage 7.6 % 4.4 % 4.9 % 5.7 % 5.7 % Non-GAAP adjusted operating income (loss) margin percentage 5.7 % 2.1 % 3.1 % 3.4 % 3.7 % (1) Other (income) expense - net includes foreign currency translation adjustments, other components of net periodic pension costs and other miscellaneous items. 16

17 Appendix- Non-GAAP Financial Measures Non-GAAP Items Non-GAAP adjusted income (loss) from continuing operations, non-gaap adjusted EBITDA and non-gaap adjusted operating cash flows are financial measures that are not in accordance with GAAP. Manitowoc believes these non-gaap financial measures provide important supplemental information to both management and investor s 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. Non-GAAP Adjusted Income (Loss) and Income (Loss) Per Share from Continuing Operations ($ in millions, except share data) Three Months Ended June 30, Six Months Ended June 30, Income (loss) from continuing operations $ 9.9 $ 0.7 $ (0.1) $ (35.3) Special items: Asset impairment Restructuring expense Separation equity awards (0.1) Tax on special items Non-GAAP adjusted income (loss) from continuing operations $ 14.3 $ 6.5 $ 10.8 $ (17.7) Diluted income (loss) from continuing operations per share $ 0.27 $ 0.02 $ $ (1.01) Special items, net of tax: Asset impairment Restructuring expense Separation equity awards Tax valuation allowance and one time tax items Diluted non-gaap adjusted income (loss) per share from continuing operations $ 0.40 $ 0.18 $ 0.30 $ (0.50) Non-GAAP Adjusted Operating Cash Flows ($ in millions, except share data) Six Months Ended June 30, Net cash used for operating activities: $ (281.0) $ (190.9) Cash receipts on sold accounts receivable Non-GAAP adjusted operating cash flows: (30.3) (44.6) 17