Adjusted EBITDA margin improves 300 bps year-over-year
The Manitowoc Company, Inc., (the “Company” or “Manitowoc”) a global manufacturer of cranes and lifting solutions, has reported second-quarter Adjusted EBITDA(1) of $53.3 million representing a $15.8 million or 42% improvement compared to the prior year. Second-quarter GAAP net income was $46.0 million or $1.29 per diluted share. Adjusted net income(1) was $33.5 million, or $0.94 per diluted share, in the second-quarter 2019 versus $14.3 million, or $0.40 per diluted share, in 2018.
Net sales in the second quarter were $504.7 million versus $495.3 million in 2018; a year-over-year increase of 1.9%. The increase was attributable to higher crane and aftermarket shipments in the Americas region, partly offset by continued weakness in the Middle East and unfavorable changes in foreign currency exchange rates.
Orders in the second quarter were $372.0 million versus $430.8 million in 2018; a year-over-year decrease of 14%. This decrease was primarily in the Americas segment and was partially offset by increased orders in the EURAF segment. Orders were unfavorably impacted by $8.4 million due to changes in foreign currency exchange rates.
Adjusted EBITDA margin increased 300 basis points year-over-year to 10.6% of net sales, which included a $9.2 million recovery of administrative expenses associated with the settlement of a legal matter. Excluding the impact of the settlement, adjusted EBITDA margin rose 120 basis points year-over-year primarily driven by North American revenue growth, favorable price realization, favorable mix and cost reductions.
“The second quarter marked our ninth consecutive quarter of year-over-year adjusted EBITDA margin improvement, and our fifth consecutive quarter of positive adjusted diluted earnings per share. The foundation of The Manitowoc Way is firmly in place reflecting the strength of our operating model to continually improve financial results. In the quarter, we repurchased approximately 473,000 shares of common stock, underscoring our commitment to effectively deploy our capital,” commented Barry L. Pennypacker, President and Chief Executive Officer of The Manitowoc Company, Inc.
Pennypacker added, “In the quarter, order intake from European customers was in line with our expectations, reflecting positive reception of our products showcased at the bauma trade show where we introduced six new cranes. Our North American orders slowed as customers became more cautious as a result of uncertain market conditions. Overall, I am very proud of our team and the results we posted in the first half of the year, and look forward to our continued transformation into a leaner, more profitable Manitowoc.”
Updated Full-Year 2019 Guidance:
- Revenue – approximately $1.880 to $1.920 billion;
- Adjusted EBITDA – approximately $140 to $160 million;
- Depreciation – approximately $35 to $37 million;
- Restructuring expense – approximately $10 to $12 million;
- Interest expense – approximately $29 to $33 million, excluding debt refinancing costs;
- Income tax expense – approximately $12 to $16 million, excluding discrete items; and
- Capital expenditures – approximately $35 million.
Footnote
(1)Adjusted net income (loss), adjusted EBITDA, adjusted operating cash flow, adjusted free cash flows and adjusted DEPS 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.
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