The Manitowoc Company (MTW) Q4 2021 earnings summary

Executive summary

• FY21 revenue rose 19.2% to $1.720B; adjusted EBITDA increased 40% to $116M, while net income was $11.0M versus a $19.1M loss in FY20.

• Orders reached $2.167B, up 43.4% YoY, and year-end backlog rose 86.1% to $1.011B, the highest in over 10 years.

• Strategy shifted toward growth and higher-margin non-new-machine sales, targeting a 50% increase from the 2021 baseline of $449M over five years.

Financial highlights

• Net sales increased 19.2% to $1,720.2M; gross profit rose 20.6% to $307.2M, while gross margin was 17.9% versus 17.6% in FY20.

• Operating income was $46.5M versus $38.6M; net income was $11.0M versus a $19.1M loss, and diluted EPS was $0.31 versus a $0.55 loss.

• Adjusted EBITDA reached $116.0M versus $83.1M; adjusted operating income was $69.1M versus $45.6M.

• Operating cash flow was $76.2M; adjusted free cash flow was $35.8M. Cash ended FY21 at $75.4M, with total liquidity of $254.2M.

Outlook and guidance

• Management expressed encouragement about recovery across most global end markets and planned continued execution of four growth initiatives in 2022.

• FY22 capital expenditures were forecast at ~$85M, including ~$35M funded from rental fleet sales and older crane disposals; spending may be reduced if fleet sale proceeds fall short.

• CRANES + 50 targets 50% growth in non-new-machine sales over five years from the 2021 baseline of $449M.

• Management expected liquidity and operating cash flows to cover working capital, capital expenditures, contractual obligations, and ongoing needs for the next 12 months.