Increased demand from U.S. and European markets boost Manitowoc bottom line for 2017
The Manitowoc Company, Inc., a global manufacturer of cranes and lifting solutions, has reported fourth-quarter net sales of $481.5 million, diluted earnings per share ("DEPS") on a GAAP basis of $0.97 and a loss of $(0.15) on an adjusted basis.
Fourth-quarter orders of $620.2 million increased 78% from the comparable period in 2016. Backlog totaled $606.6 million at December 31, 2017, an increase of 87%, from the prior year ending backlog of $323.8 million.
Fourth-quarter 2017 net sales were $481.5 million versus $378.2 million in the comparable period in 2016. The majority of the year-over-year increase was attributable to increased demand, primarily in the U.S. and European markets. More than 40% of unit revenue in the fourth-quarter came from new products introduced since becoming a stand-alone crane company.
The Company reported net income from continuing operations of $35.6 million, or $0.98 per diluted share, in the fourth-quarter 2017 versus a net loss from continuing operations of $(32.0) million, or $(0.92) per diluted share, in the fourth-quarter 2016. Non-GAAP adjusted net loss from continuing operations(1) was $(5.3) million, or $(0.15) per diluted share, in the fourth-quarter 2017 versus a net loss of $(32.6) million, or $(0.94) per diluted share, in the comparable period of 2016. GAAP net income benefited from discrete tax items in the period totaling $46.4 million or $1.28 per diluted share. Non-GAAP adjusted EBITDA(1) for the fourth-quarter 2017 was $22.2 million compared to a loss of $(5.7) million in the same period last year.
Full-year 2017 results included orders of $1,864.2 million, which was an increase of 32% year-over-year. Full-year revenue decreased $31.8 million year-over-year to $1,581.3 million. Adjusted EBITDA was $67.4 million, and represented a year-over-year increase of 313-basis points in adjusted EBITDA margin.
"2017 was a pivotal year for Manitowoc. Despite a two percent decline in revenue vs the prior year, we delivered a 313-basis point improvement in adjusted EBITDA margin, and operating cash flow improvement of over $200 million. Our net debt improved over $55 million vs prior-year due to prudent cash management. These results clearly demonstrate strong operational improvements in the core business through the continued implementation of the principles of The Manitowoc Way," said Barry L. Pennypacker, President and Chief Executive Officer of The Manitowoc Company, Inc.
"During the fourth-quarter of 2017, we saw an increase of 78% year-over-year in orders primarily driven by increasing customer sentiment in the North American market, coupled with continued market share gains in our key areas of focus. Looking ahead, as reflected in our guidance provided above, we expect profitability to continue to increase as we execute our strategic priorities," concluded Pennypacker.
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