•

Net sales of $430.3 million

•

Adjusted EBITDA⁽¹⁾ of $34.2 million

•

Diluted net income per share of $0.05, $0.19 on an adjusted basis⁽¹⁾

•

Net sales of $1,443.4 million

•

Adjusted EBITDA⁽¹⁾ of $83.1 million

•

Diluted net loss per share of $0.55, $0.35 loss on an adjusted basis⁽¹⁾

•

The negative impacts COVID-19 has had and will continue to have on our 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 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;

•

geographic factors and political and economic conditions and risks;

•

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

•

government approval and funding of projects and the effect of government-related issues or developments;

•

unanticipated changes in capital and financial markets;

•

unanticipated changes in revenues, margins and costs;

•

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

•

the ability to significantly improve profitability; and

•

risks and factors detailed in Manitowoc's 2019 Annual Report on Form 10-K, as such were previously supplemented and amended in Manitowoc’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 and its other filings with the United States Securities and Exchange Commission.

Three Months Ended

December 31,

Year Ended

December 31,

2020

2019

2020

2019

Net sales

$

430.3

$

463.4

$

1,443.4

$

1,834.1

Cost of sales

352.3

383.1

1,188.7

1,490.0

Gross profit

78.0

80.3

254.7

344.1

Operating costs and expenses:

Engineering, selling and administrative expenses

53.7

60.9

208.8

225.6

Amortization of intangible assets

0.1

0.1

0.3

0.3

Restructuring expense

1.4

1.5

7.0

9.8

Total operating costs and expenses

55.2

62.5

216.1

235.7

Operating income

22.8

17.8

38.6

108.4

Other income (expense):

Interest expense

(7.4

)

(7.1

)

(29.1

)

(32.7

)

Amortization of deferred financing fees

(0.4

)

(0.3

)

(1.5

)

(1.5

)

Loss on debt extinguishment

—

—

—

(25.0

)

Other income (expense) - net

(5.7

)

0.9

(10.0

)

9.8

Total other expense

(13.5

)

(6.5

)

(40.6

)

(49.4

)

Income (loss) before income taxes

9.3

11.3

(2.0

)

59.0

Provision for income taxes

7.5

2.1

17.1

12.4

Net income (loss)

$

1.8

$

9.2

$

(19.1

)

$

46.6

Per Share Data

Basic income (loss) per common share

$

0.05

$

0.26

$

(0.55

)

$

1.31

Diluted income (loss) per common share

$

0.05

$

0.26

$

(0.55

)

$

1.31

Weighted average shares outstanding - Basic

34,573,243

35,366,843

34,691,063

35,487,358

Weighted average shares outstanding - Diluted

34,711,032

35,499,167

34,691,063

35,641,800

2020

2019

Assets

Current Assets:

Cash and cash equivalents

$

128.7

$

199.3

Accounts receivable, less allowances of $8.5 and $7.9, respectively

215.1

168.3

Inventories — net

473.1

461.4

Notes receivable — net

13.6

17.4

Other current assets

35.5

26.0

Total current assets

866.0

872.4

Property, plant and equipment — net

294.3

289.9

Operating lease right-of-use assets

37.9

47.6

Goodwill

235.1

232.5

Other intangible assets — net

121.6

116.3

Other non-current assets

48.6

59.0

Total assets

$

1,603.5

$

1,617.7

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable and accrued expenses

$

329.4

$

340.8

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

10.5

3.8

Product warranties

50.2

47.2

Customer advances

25.5

25.8

Other liabilities

20.2

23.3

Total current liabilities

435.8

440.9

Non-Current Liabilities:

Long-term debt

300.4

308.4

Operating lease liabilities

28.4

37.6

Deferred income taxes

5.9

5.5

Pension obligations

89.3

86.4

Postretirement health and other benefit obligations

14.0

16.4

Long-term deferred revenue

32.4

30.3

Other non-current liabilities

53.8

46.3

Total non-current liabilities

524.2

530.9

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, 34,580,638

   and 35,374,537 shares outstanding, respectively)

0.4

0.4

Additional paid-in capital

595.1

592.2

Accumulated other comprehensive loss

(97.5

)

(121.0

)

Retained earnings

216.9

236.2

Treasury stock, at cost (6,213,345 and 5,419,446 shares, respectively)

(71.4

)

(61.9

)

Total stockholders’ equity

643.5

645.9

Total liabilities and stockholders' equity

$

1,603.5

$

1,617.7

Three Months Ended

December 31,

Year Ended

December 31,

2020

2019

2020

2019

Cash Flows From Operating Activities:

Net income (loss)

$

1.8

$

9.2

$

(19.1

)

$

46.6

Adjustments to reconcile net income (loss) to cash provided

   by (used for) operating activities:

Depreciation expense

9.9

8.7

37.2

35.0

Amortization of intangible assets

0.1

0.1

0.3

0.3

Amortization of deferred financing fees

0.4

0.3

1.5

1.5

Deferred income tax (benefit) - net

4.8

1.5

4.8

1.5

Loss on early extinguishment of debt

—

—

—

25.0

Loss (gain) on sale of property, plant and equipment

—

—

—

(3.5

)

Stock-based compensation expense and other

1.0

1.4

6.5

10.1

Changes in operating assets and liabilities, excluding the

   effects of business divestitures:

Accounts receivable

(23.8

)

60.0

(37.7

)

(124.2

)

Inventories

63.6

69.1

8.3

(18.3

)

Notes receivable

1.2

3.4

7.4

2.9

Other assets

3.7

9.2

(3.5

)

23.9

Accounts payable

(14.9

)

(22.3

)

(20.1

)

(59.7

)

Accrued expenses and other liabilities

(11.9

)

4.0

(20.7

)

5.6

Net cash provided by (used for) operating activities

35.9

144.6

(35.1

)

(53.3

)

Cash Flows From Investing Activities:

Capital expenditures

(11.0

)

(12.7

)

(26.3

)

(35.1

)

Proceeds from sale of property, plant and equipment

0.3

—

0.5

17.2

Cash receipts on sold accounts receivable

—

—

—

126.3

Net cash provided by (used for) investing activities

(10.7

)

(12.7

)

(25.8

)

108.4

Cash Flows From Financing Activities:

Proceeds from revolving credit facility

—

8.3

50.0

139.7

Payments on revolving credit facility

—

(8.3

)

(50.0

)

(139.7

)

Payments on long-term debt

—

—

—

(276.6

)

Proceeds from long-term debt

—

—

—

300.0

Other debt - net

(0.2

)

(1.6

)

(2.9

)

(4.4

)

Debt issuance costs

—

—

—

(8.3

)

Exercises of stock options including windfall tax benefits

—

0.2

0.1

0.4

Common stock repurchases

—

—

(12.0

)

(7.4

)

Net cash provided by (used for) financing activities

(0.2

)

(1.4

)

(14.8

)

3.7

Effect of exchange rate changes on cash and cash equivalents

2.6

1.3

5.1

0.2

Net increase (decrease) in cash and cash equivalents

27.6

131.8

(70.6

)

59.0

Cash and cash equivalents at beginning of period

101.1

67.5

199.3

140.3

Cash and cash equivalents at end of period

$

128.7

$

199.3

$

128.7

$

199.3

Reconciliation of Adjusted Net Income (Loss) to Net Income (Loss)

(in millions, except per share data)

Three Months Ended

December 31,

2020

2019

As reported

Adjustments

Adjusted

As reported

Adjustments

Adjusted

Gross profit

$

78.0

$

—

$

78.0

$

80.3

$

—

$

80.3

Engineering, selling and administrative

   expenses (1)

(53.7

)

—

(53.7

)

(60.9

)

2.8

(58.1

)

Amortization of intangible assets

(0.1

)

—

(0.1

)

(0.1

)

—

(0.1

)

Restructuring expense (2)

(1.4

)

1.4

—

(1.5

)

1.5

—

Operating income (loss)

22.8

1.4

24.2

17.8

4.3

22.1

Interest expense

(7.4

)

—

(7.4

)

(7.1

)

—

(7.1

)

Amortization of deferred financing fees

(0.4

)

—

(0.4

)

(0.3

)

—

(0.3

)

Other income (expense) - net (3)

(5.7

)

3.7

(2.0

)

0.9

—

0.9

Income before income taxes

9.3

5.1

14.4

11.3

4.3

15.6

Provision for income taxes (4)

(7.5

)

(0.2

)

(7.7

)

(2.1

)

(0.9

)

(3.0

)

Net income

$

1.8

$

4.9

$

6.7

$

9.2

$

3.4

$

12.6

Diluted net income per share

$

0.05

$

0.19

$

0.26

$

0.35

(1)

The adjustment in 2019 represents the add back of a loss from a long-term note receivable from the 2014 divestiture of the Company’s Chinese joint venture.  

(2)

The adjustment in 2020 and 2019 represents the add back of restructuring related charges.

(3)

The adjustment in 2020 relates to the settlement of a legal matter.   

(4)

The adjustment in 2020 and 2019 represents the net income tax impact of items (1), (2) and (3), as applicable.

Year Ended

December 31,

2020

2019

As reported

Adjustments

Adjusted

As reported

Adjustments

Adjusted

Gross profit

$

254.7

$

—

$

254.7

$

344.1

$

—

$

344.1

Engineering, selling and administrative

   expenses (1)

(208.8

)

—

(208.8

)

(225.6

)

3.1

(222.5

)

Amortization of intangible assets

(0.3

)

—

(0.3

)

(0.3

)

—

(0.3

)

Restructuring expense (2)

(7.0

)

7.0

—

(9.8

)

9.8

—

Operating income

38.6

7.0

45.6

108.4

12.9

121.3

Interest expense

(29.1

)

—

(29.1

)

(32.7

)

—

(32.7

)

Amortization of deferred financing fees

(1.5

)

—

(1.5

)

(1.5

)

—

(1.5

)

Loss on debt extinguishment (3)

—

—

—

(25.0

)

25.0

—

Other income (expense) - net (4)

(10.0

)

3.7

(6.3

)

9.8

(15.5

)

(5.7

)

Income (loss) before income taxes

(2.0

)

10.7

8.7

59.0

22.4

81.4

Provision for income taxes (5)

(17.1

)

(3.9

)

(21.0

)

(12.4

)

(1.6

)

(14.0

)

Net income (loss)

$

(19.1

)

$

6.8

$

(12.3

)

$

46.6

$

20.8

$

67.4

Diluted net income (loss) per share

$

(0.55

)

$

(0.35

)

$

1.31

$

1.89

(1)

The adjustment in 2019 represents the add back of a loss from a long-term note receivable from the 2014 divestiture of the Company’s Chinese joint venture and other non-recurring items.  

(2)

The adjustment in 2020 and 2019 represents the add back of restructuring related charges.

(3)

The adjustment in 2019 represents the removal of charges related to the Company’s refinancing of its previous asset based lending revolving credit facility and senior secured second lien notes.  

(4)

The adjustment in 2020 and 2019 relates to the settlement of legal matters.

(5)

The adjustment in 2020 represents the net income tax impact of items (2) and (4) and the removal of an income tax benefit related to the Coronavirus Aid, Relief and Economic Security Act. The adjustment in 2019 represents the net income tax impact of items (1) through (4).

Adjusted Operating Cash Flows and Free Cash Flows

(in millions)

Three Months Ended

December 31,

Year Ended

December 31,

2020

2019

2020

2019

Net cash provided by (used for) operating activities of

   continuing operations

$

35.9

$

144.6

$

(35.1

)

$

(53.3

)

Cash receipts on sold accounts receivable

—

—

—

126.3

Net payments (borrowings) on accounts receivable

   securitization program

—

—

—

75.0

Adjusted operating cash flows

35.9

144.6

(35.1

)

148.0

Capital expenditures

(11.0

)

(12.7

)

(26.3

)

(35.1

)

Free cash flows

$

24.9

$

131.9

$

(61.4

)

$

112.9

Three Months Ended

December 31,

Year Ended

December 31,

2020

2019

2020

2019

Net income (loss)

$

1.8

$

9.2

$

(19.1

)

$

46.6

Interest expense and amortization of deferred

   financing fees

7.8

7.4

30.6

34.2

Provision for income taxes

7.5

2.1

17.1

12.4

Depreciation expense

9.9

8.7

37.2

35.0

Amortization of intangible assets

0.1

0.1

0.3

0.3

EBITDA

27.1

27.5

66.1

128.5

Restructuring expense

1.4

1.5

7.0

9.8

Loss on debt extinguishment

—

—

—

25.0

Other non-recurring charges (1)

—

2.8

—

3.1

Other income (expense) - net (2)

5.7

(0.9

)

10.0

(9.8

)

Adjusted EBITDA

34.2

30.9

83.1

156.6

Depreciation expense

(9.9

)

(8.7

)

(37.2

)

(35.0

)

Amortization of intangible assets

(0.1

)

(0.1

)

(0.3

)

(0.3

)

Adjusted operating income

24.2

22.1

45.6

121.3

Restructuring expense

(1.4

)

(1.5

)

(7.0

)

(9.8

)

Other non-recurring charges

—

(2.8

)

—

(3.1

)

Operating income

$

22.8

$

17.8

$

38.6

$

108.4

Adjusted EBITDA margin percentage

7.9

%

6.7

%

5.8

%

8.5

%

Adjusted operating income margin percentage

5.6

%

4.8

%

3.2

%

6.6

%

(1)

Other non-recurring charges for the three months ended December 31, 2019 includes losses from a long-term note receivable resulting from the 2014 divesture of the Company’s Chinese joint venture included in in engineering, selling and administrative expenses in the Consolidated Statement of Operations. Other non-recurring charges for the year ended December 31, 2019 includes a loss from a long-term note receivable resulting from the 2014 divesture of the Company’s Chinese joint venture and other non-recurring charges included in engineering, selling and administrative expenses in the Consolidated Statement of Operations.

(2)

Other (income) expense – net includes net foreign currency gains (losses), other components of net periodic pension costs, pension settlement charges, settlements of legal matters and other miscellaneous items.