The Manitowoc Company (MTW) Q4 2020 earnings summary

Executive summary

• Revenue declined 21% to $1.4B and adjusted EBITDA fell 47% to $83.1M amid a cyclical downturn accelerated by COVID-19; year-end cash was $128.7M and liquidity exceeded $400M.

• After five years focused on creating a sustainable stand-alone crane business and lowering costs, the 2021 priority shifted to growth through organic and inorganic initiatives.

Financial highlights

• FY2020 net sales were $1,443.4M, down 21.3% YoY; gross profit fell 26.0% to $254.7M.

• Operating income was $38.6M versus $108.4M in 2019; net loss from continuing operations was $19.1M versus net income of $46.6M.

• Orders declined 7.8% to $1,511.4M; year-end backlog rose 14.3% to $543.2M, primarily from shipment timing and favorable FX.

Outlook and guidance

• 2021 marked the planned transition from cost-basis improvement to growth, with management citing organic and inorganic initiatives as paths to expansion.

• Management expected available cash, revolving-credit availability, future operating cash and capital-market access to fund capital and debt needs for the foreseeable future; covenant compliance was expected over the next 12 months.

• COVID-19 impacts and demand remained uncertain into 2021, with potential effects on operations, customers, suppliers and estimates for goodwill, taxes and inventory.