Manitowoc q1 2017 conf call deck 05092017 v8
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Transcript of Manitowoc q1 2017 conf call deck 05092017 v8
Q1 2017 Earnings Conference Call
May 9, 2017Barry Pennypacker – President & Chief Executive Officer
Dave Antoniuk – SVP & Chief Financial Officer
Ion Warner – VP Marketing & Investor Relations
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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, 2016. 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 1995.
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 first-quarter of 2017, which is available at www.manitowoc.com, together with this presentation.
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• Strong customer reception to new products at ConExpo• Mobile cranes: Soft market conditions in Americas &
Middle East• Tower cranes: stable, in line with expectations
Q1 2017 Summary
• Backlog up 56% sequentially• Nearly half of order from new products• Revenue down 28.5 percent• Focused actions to manage costs and right-size the
business• Improved cash flow YOY with no borrowings on ABL
facility at quarter end
FinancialSummary
BusinessHighlights
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Financial & Other Key Metrics
(1) Please see appendix for reconciliation of GAAP to non-GAAP measures(2) Cash Flow from Operating Activities of continuing operations (3) Reflects the retrospective change in accounting for inventories from LIFO to FIFO in 2016
Q1 2017 Q1 2016 (3) YoY ∆
Orders 488.3$ 417.1$ 17.1 %
Net Sales 305.8$ 427.4$ (28.5)%
SG&A Expense 63.3$ 72.4$ (12.5)%
Operating (loss) income (23.7)$ 0.8$ n/m
Non-GAAP adjusted operating
(loss) income (1)
(11.4)$ 7.3$ n/m
Net Loss from contiuing
operations
(36.0)$ (192.7)$ 81.3 %
Non-GAAP adjusted net loss from
continuing operations (1)
(24.2)$ (7.6)$ n/m
Non-GAAP Adjusted EBITDA (1) (0.8)$ 19.5$ n/m
CFOA (2) (32.5)$ (163.4)$ 80.1 %
Capital Expenditures 3.8$ 10.9$ (65.2)%
Backlog 506.3$ 502.3$ 0.8 %
Book-to-bill 1.60 0.98 63.6 %
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2017 Guidance - Unchanged
2017 Guidance
RevenueDown approximately 8 - 10% year-over-year
Adjusted EBITDA Approximately $41 to $59 million
Depreciation Approximately $40 to $45 million
Capital expenditures Approximately $30 million
Income tax expense Approximately $7 to $10 million
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Progress on Strategic Priorities
• Eight new crane introductions at ConExpo
• Two cranes developed from ground up in six months
• Aligning capacity to current demand -- plant relocations on schedule
• Unwavering focus on cost management and to eliminate waste
• Key account management program• Military project on schedule • Aftermarket initiatives
Margin Expansion
Innovation
Growth
Velocity• Implement The Manitowoc Way• Kaizen-driven success stories
Actions to Target Double Digit Operating Margins (EBITA) by 2020
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ConExpo Trade Show
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The Manitowoc Way Success Stories
Automated Mast line - Moulins
Boom Assembly -- Wilhelmshaven
Outrigger Box Cell – Shady Grove
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Appendix- GAAP to Non-GAAP ReconciliationNon-GAAP Adjusted Net Loss and Loss Per Share from Continuing Operations
2017 2016
Net loss (36.0)$ (195.9)$
Special items, net of tax:
Loss from discontinued operations, net of income taxes - 3.2
Loss on debt extinguishment - 76.3
Restructuring expense 11.7 4.4
Separation equity awards 0.1 1.4
Tax valuation allowance and one time tax items - 103.3
Tax on special items - (0.3)
Non-GAAP adjusted net loss from continuing operations (24.2)$ (7.6)$
Diluted loss per share (0.26)$ (1.43)$
Special items, net of tax:
Loss from discontinued operations, net of income taxes - 0.02
Loss on debt extinguishment - 0.56
Restructuring expense 0.08 0.03
Separation equity awards 0.00 0.01
Tax valuation allowance and one time tax items - 0.76
Diluted non-GAAP adjusted net loss
per share from continuing operations (0.17)$ (0.05)$
Non-GAAP Adjusted Operating (Loss) Income
2017 2016
Operating (loss) income (23.7)$ 0.8$
Adjustments:
Restructuring expense 11.7 4.4
Amortization of intangible assets 0.4 0.7
Other expense 0.2 1.4
Non-GAAP adjusted operating (loss) income (11.4)$ 7.3$
Margin on non-GAAP adjusted operating (loss) income -3.7% 1.7%
March 31,
Three Months Ended
March 31,
Three Months Ended
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