UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Washington, D.C. 20549 FORM 10-K (Address of principal executive offices) (Zip Code) For the fiscal year ended December 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-11978 The Manitowoc Company, Inc. (Exact name of registrant as specified in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-11978 Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | --- | --- | --- | | Title of each class | ...

Financial Data and Key Metrics Changes - Sales for Q3 2023 were $521 million, with an adjusted EBITDA of $33 million, representing 6.4% of sales [4][44] - Non-new machine sales increased by 21% year-over-year to $155 million, with total non-new machine sales exceeding $600 million for the first time on a trailing 12-month basis [4][44] - Adjusted EBITDA increased by $9 million or 39% year-over-year, with an adjusted EBITDA margin of 6.4%, up 110 basis points from the prior year [45][46] - Net working capital increased year-over-year by $57 million, driven by inflation and supply chain constraints [20] Business Line Data and Key Metrics Changes - Tower crane machine orders were down 55% year-over-year, indicating a significant decline in demand [12] - The European mobile cranes business was not as adversely affected by the soft residential construction market, with demand holding up in the U.K., Italy, and Iberia [13] - Orders in the Middle East increased by 57% year-over-year, driven by modernization efforts in Saudi Arabia [14][43] Market Data and Key Metrics Changes - The backlog as of September 30 was flat sequentially at $1.028 billion, but increased by 9% year-over-year, predominantly in the Americas [17] - In Europe, housing permits were down 37% in France and 34% in Germany year-over-year, reflecting a slowdown in the residential construction market [40] - The Asia Pacific market remained mixed, with China experiencing softness while India showed strength [42] Company Strategy and Development Direction - The company is transitioning from a product-driven model to a services-oriented business under the Cranes+50 strategy [5][8] - The focus is on expanding service locations and improving the used machine business, with a target to increase non-new machine sales from $675 million to $1 billion [25][34] - The company aims to achieve a long-term sales target of $3 billion, with a split between organic growth and acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the short-term outlook for the U.S. market but maintains a positive long-term view [11] - The company expects challenges in Europe due to difficult comparisons in the first half of 2024, while the Middle East continues to strengthen [23][50] - The resilience of the U.S. economy and government responses to the housing crisis in the EU will significantly impact 2024 results [50] Other Important Information - The company generated $26 million in cash from operating activities during the quarter, with a free cash flow of $3 million [47] - A $35 million share repurchase program was approved by the Board of Directors [48] Q&A Session Summary Question: Impact of the war in the Middle East on business - Management indicated that there has been no impact on business from the ongoing conflict, as projects in Saudi Arabia continue to be active [53] Question: Guidance for the fourth quarter - Management discussed the challenges posed by the tower crane business and the uncertainty around vessel issues affecting guidance [31][72] Question: Backlog trends by region or product - The majority of the backlog remains in the U.S., with no specific breakdown by region provided [77] Question: Key areas of cost inflation - Labor remains a significant challenge, particularly in fabricated parts, with high-strength steel prices not decreasing as expected [78][80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | Wisconsin | 39-0448110 | | --- | --- | | (State or other jurisdiction | (I.R.S. Employer | | of incorporation or organization) | Identification Number) | ...

The Manitowoc Company Inc. (NYSE:MTW) Q2 2023 Results Conference Call August 8, 2023 10:00 AM ET Company Participants Ion Warner - Senior Vice President of Marketing and Investor Relations Aaron Ravenscroft - President and Chief Executive Officer Brian Regan - Executive Vice President and Chief Financial Officer Conference Call Participants Jamie Cook - Credit Suisse Mig Dobre - Baird Seth Weber - Wells Fargo Securities Operator Good morning, and welcome to The Manitowoc Second Quarter 2023 Earnings Call. M ...

PART I. FINANCIAL INFORMATION This section provides an overview of financial statements, management's analysis, and market risk disclosures [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements and detailed notes for Q1 2023 and 2022 [Condensed Consolidated Statements of Operations](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income significantly increased to $16.5 million, and net sales grew to $508.3 million for Q1 2023 Condensed Consolidated Statements of Operations | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $508.3 million | $459.0 million | | Cost of sales | $402.0 million | $374.0 million | | Gross profit | $106.3 million | $85.0 million | | Operating income | $30.2 million | $17.6 million | | Net income | $16.5 million | $3.1 million | | Basic net income per common share | $0.47 | $0.09 | | Diluted net income per common share | $0.46 | $0.09 | - Net income increased by **432.3%** year-over-year, from **$3.1 million** in Q1 2022 to **$16.5 million** in Q1 2023[7](index=7&type=chunk) - Net sales grew by **10.7%** to **$508.3 million** in Q1 2023 from **$459.0 million** in Q1 2022[7](index=7&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income improved to $16.4 million for Q1 2023, driven by higher net income and positive foreign currency adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net income | $16.5 million | $3.1 million | | Unrealized losses on derivatives, net | $(3.3) million | $(0.2) million | | Employee pension and postretirement benefit expense, net | $(1.0) million | $(0.6) million | | Foreign currency translation adjustments, net | $4.2 million | $(5.5) million | | Total other comprehensive loss, net | $(0.1) million | $(6.3) million | | Comprehensive income (loss) | $16.4 million | $(3.2) million | - Comprehensive income improved from a loss of **$3.2 million** in Q1 2022 to an income of **$16.4 million** in Q1 2023[10](index=10&type=chunk) - Foreign currency translation adjustments shifted from a loss of **$5.5 million** in Q1 2022 to a gain of **$4.2 million** in Q1 2023[10](index=10&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1,691.1 million as of March 31, 2023, primarily due to higher inventories, with liabilities and equity also rising Condensed Consolidated Balance Sheets | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Total assets | $1,691.1 million | $1,615.5 million | | Cash and cash equivalents | $56.5 million | $64.4 million | | Accounts receivable, net | $250.6 million | $266.3 million | | Inventories | $720.6 million | $611.9 million | | Total current assets | $1,079.4 million | $998.5 million | | Total current liabilities | $617.6 million | $547.8 million | | Total liabilities and stockholders' equity | $1,691.1 million | $1,615.5 million | | Total stockholders' equity | $552.8 million | $537.8 million | - Inventories increased by **17.8%** from **$611.9 million** at December 31, 2022, to **$720.6 million** at March 31, 2023[13](index=13&type=chunk) - Total assets increased by **4.7%** from **$1,615.5 million** at December 31, 2022, to **$1,691.1 million** at March 31, 2023[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $15.4 million for Q1 2023, while financing cash use decreased Condensed Consolidated Statements of Cash Flows | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $15.4 million | $5.6 million | | Net cash used for investing activities | $(8.6) million | $(8.7) million | | Net cash used for financing activities | $(15.1) million | $(20.7) million | | Net decrease in cash and cash equivalents | $(7.9) million | $(23.8) million | | Cash and cash equivalents at end of period | $56.5 million | $51.6 million | - Net cash provided by operating activities increased by **175%** year-over-year, from **$5.6 million** in Q1 2022 to **$15.4 million** in Q1 2023[15](index=15&type=chunk) - Net cash used for financing activities decreased by **27%** year-over-year, from **$20.7 million** in Q1 2022 to **$15.1 million** in Q1 2023[15](index=15&type=chunk) [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total stockholders' equity increased to $552.8 million as of March 31, 2023, driven by net income and partially offset by repurchases Condensed Consolidated Statements of Equity | Metric | March 31, 2023 | March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Common Stock - Par Value | $0.4 million | $0.4 million | | Additional Paid-in Capital | $605.8 million | $601.7 million | | Accumulated Other Comprehensive Loss | $(108.0) million | $(108.7) million | | Retained Earnings | $120.8 million | $231.0 million | | Treasury Stock | $(66.2) million | $(62.9) million | | Total stockholders' equity | $552.8 million | $661.5 million | - Retained earnings increased to **$120.8 million** as of March 31, 2023, from **$104.3 million** at December 31, 2022, primarily due to net income of **$16.5 million**[18](index=18&type=chunk) - Treasury stock increased to **$(66.2) million** as of March 31, 2023, from **$(65.7) million** at December 31, 2022, reflecting common stock repurchases of **$3.5 million**[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details disclosures for financial statements, covering operations, accounting policies, financial instruments, debt, equity, and segments [Note 1. Company and Basis of Presentation](index=7&type=section&id=Note%201.%20Company%20and%20Basis%20of%20Presentation) Manitowoc is a leading provider of engineered lifting solutions, operating through Americas, EURAF, and MEAP segments - Manitowoc is one of the world's leading providers of engineered lifting solutions, offering mobile hydraulic, lattice-boom crawler, boom trucks, and tower cranes[21](index=21&type=chunk) - Key brands include Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift[21](index=21&type=chunk) - The company has three reportable segments: Americas, Europe and Africa ("EURAF"), and Middle East and Asia Pacific ("MEAP")[22](index=22&type=chunk) [Note 2. Recent Accounting Changes and Pronouncements](index=7&type=section&id=Note%202.%20Recent%20Accounting%20Changes%20and%20Pronouncements) The company adopted ASU No. 2022-04 as of January 1, 2023, with no material impact on financial statements - Adopted Accounting Standards Update ("ASU") No. 2022-04, "Disclosure of Supplier Financing Program Obligations," as of January 1, 2023[25](index=25&type=chunk) - The adoption of this ASU did not have a material impact on the Company's consolidated financial statements[25](index=25&type=chunk) [Note 3. Net Sales](index=8&type=section&id=Note%203.%20Net%20Sales) Revenue deferrals from customer advances increased to $34.4 million for Q1 2023, with $32.4 million recognized Note 3. Net Sales Summary | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Balance at beginning of period | $21.9 million | $28.7 million | | Cash received in advance of satisfying performance obligations | $34.4 million | $15.5 million | | Revenue recognized | $(32.4) million | $(17.9) million | | Currency translation | $0.1 million | $(0.8) million | | Balance at end of period | $24.0 million | $25.5 million | - Cash received in advance of satisfying performance obligations increased by **121.9%** from **$15.5 million** in Q1 2022 to **$34.4 million** in Q1 2023[28](index=28&type=chunk) [Note 4. Fair Value of Financial Instruments](index=8&type=section&id=Note%204.%20Fair%20Value%20of%20Financial%20Instruments) Financial instruments include FX Forward Contracts (Level 2) and senior secured second lien notes (Level 1) FX Forward Contracts Fair Value | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | FX Forward Contracts (Current Assets) | $3.5 million | $5.7 million | | FX Forward Contracts (Current Liabilities) | $0.1 million | $0.3 million | - The fair value of the **$300.0 million** senior secured second lien notes due on April 1, 2026, was approximately **$301.1 million** as of March 31, 2023[30](index=30&type=chunk) - FX Forward Contracts are classified within Level 2 of the fair value hierarchy, while the 2026 Notes are classified as Level 1[31](index=31&type=chunk)[32](index=32&type=chunk) [Note 5. Derivative Financial Instruments](index=8&type=section&id=Note%205.%20Derivative%20Financial%20Instruments) The company uses FX Forward Contracts to manage currency exposure, with $84.4 million notional amount outstanding as of March 31, 2023 - Aggregate notional amounts of FX Forward Contracts were **$84.4 million** as of March 31, 2023, down from **$87.7 million** as of December 31, 2022[35](index=35&type=chunk) - Net unrealized gains, net of income tax, recorded in Accumulated Other Comprehensive Income (AOCI) were **$2.1 million** as of March 31, 2023, compared to **$5.4 million** as of December 31, 2022[35](index=35&type=chunk) Derivative Gains and Losses by Recognition Location | Recognized Location | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------ | :------------------------------ | :------------------------------ | | Designated (Cost of sales) | $3.4 million | $(0.1) million | | Non-Designated (Other income (expense) - net) | $(2.3) million | $0.7 million | [Note 6. Inventories](index=9&type=section&id=Note%206.%20Inventories) Total inventories increased to $720.6 million as of March 31, 2023, driven by higher work-in-process and finished goods Inventories by Component | Component | March 31, 2023 | December 31, 2022 | | :---------------- | :------------------------------ | :------------------------------ | | Raw materials | $163.0 million | $161.2 million | | Work-in-process | $175.9 million | $141.3 million | | Finished goods | $381.7 million | $309.4 million | | Total Inventories | $720.6 million | $611.9 million | - Total inventories increased by **17.8%** from **$611.9 million** at December 31, 2022, to **$720.6 million** at March 31, 2023[37](index=37&type=chunk) - Work-in-process inventories increased by **24.5%** from **$141.3 million** to **$175.9 million**[37](index=37&type=chunk) [Note 7. Notes Receivable](index=9&type=section&id=Note%207.%20Notes%20Receivable) Current notes receivable decreased to $9.4 million; prior year included a $4.8 million recovery from a written-off note - Current notes receivable were **$9.4 million** as of March 31, 2023, down from **$10.6 million** as of December 31, 2022[38](index=38&type=chunk) - Long-term notes receivable were **$2.1 million** as of March 31, 2023, slightly up from **$2.0 million** as of December 31, 2022[38](index=38&type=chunk) - During Q1 2022, the Company recorded **$4.8 million** in income from the partial recovery of a previously written-off long-term note receivable from a 2014 divestiture[38](index=38&type=chunk) [Note 8. Property, Plant, and Equipment](index=10&type=section&id=Note%208.%20Property,%20Plant,%20and%20Equipment) Net property, plant, and equipment decreased slightly to $331.6 million, with $6.2 million classified as held for sale Note 8. Property, Plant, and Equipment Summary | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Total cost | $831.3 million | $822.6 million | | Less: accumulated depreciation | $(499.7) million | $(487.3) million | | Property, plant, and equipment - net | $331.6 million | $335.3 million | - Net property, plant, and equipment decreased by **1.1%** from **$335.3 million** to **$331.6 million**[40](index=40&type=chunk) - As of March 31, 2023, **$6.2 million** of property, plant, and equipment was classified as assets held for sale[41](index=41&type=chunk) [Note 9. Goodwill and Intangible Assets](index=10&type=section&id=Note%209.%20Goodwill%20and%20Intangible%20Assets) Goodwill decreased to $79.9 million due to foreign currency impact; no impairment events in Q1 2023 Goodwill and Intangible Assets Summary | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Consolidated Goodwill | $79.9 million | $80.1 million | | Total Intangible Assets (Net) | $126.6 million | $126.7 million | - Goodwill decreased by **$0.2 million** due to foreign currency impact[42](index=42&type=chunk) - Amortization expense for definite-lived intangible assets was **$1.0 million** for Q1 2023, up from **$0.8 million** in Q1 2022[44](index=44&type=chunk) [Note 10. Accounts Payable and Accrued Expenses](index=11&type=section&id=Note%2010.%20Accounts%20Payable%20and%20Accrued%20Expenses) Total accounts payable and accrued expenses increased to $518.1 million, primarily due to higher trade accounts payable Accounts Payable and Accrued Expenses Components | Component | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Trade accounts payable | $338.1 million | $274.6 million | | Employee-related expenses | $44.9 million | $51.0 million | | Accrued vacation | $24.8 million | $22.4 million | | Miscellaneous accrued expenses | $110.3 million | $98.4 million | | Total accounts payable and accrued expenses | $518.1 million | $446.4 million | - Total accounts payable and accrued expenses increased by **16.1%** from **$446.4 million** to **$518.1 million**[45](index=45&type=chunk) - Trade accounts payable increased by **23.1%** from **$274.6 million** to **$338.1 million**[45](index=45&type=chunk) [Note 11. Debt](index=11&type=section&id=Note%2011.%20Debt) Total debt decreased to $377.4 million due to lower ABL borrowings, with the company in compliance with all debt covenants Debt Breakdown | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Borrowings under ABL revolving credit facility | $70.0 million | $80.0 million | | Senior secured second lien notes due 2026 | $300.0 million | $300.0 million | | Other debt | $9.6 million | $8.0 million | | Total debt | $377.4 million | $385.6 million | | Long-term debt | $369.5 million | $379.5 million | - Borrowings under the ABL Revolving Credit Facility decreased by **$10.0 million** to **$70.0 million**[46](index=46&type=chunk)[133](index=133&type=chunk) - As of March 31, 2023, the Company was in compliance with all affirmative and negative covenants in its debt instruments[55](index=55&type=chunk) [Note 12. Accounts Receivable Factoring](index=14&type=section&id=Note%2012.%20Accounts%20Receivable%20Factoring) Accounts receivable factoring programs generated $36.0 million in cash proceeds for Q1 2023, with a U.S. program maximum of $27.0 million - Cash proceeds from the factoring of accounts receivable qualifying as sales were **$36.0 million** for Q1 2023, up from **$33.3 million** for Q1 2022[57](index=57&type=chunk) - The U.S. accounts receivable financing program has a maximum availability of **$27.0 million**[56](index=56&type=chunk) - Financing charges associated with factoring were immaterial for both periods[58](index=58&type=chunk) [Note 13. Income Taxes](index=14&type=section&id=Note%2013.%20Income%20Taxes) Provision for income taxes decreased to $4.2 million for Q1 2023 due to a change in the jurisdictional mix of income - Provision for income taxes decreased by **35.4%** to **$4.2 million** for Q1 2023 from **$6.5 million** for Q1 2022[60](index=60&type=chunk) - The decrease is due to a change in the jurisdictional mix of income, reflecting a reduction of losses in jurisdictions where no tax benefit can be realized[60](index=60&type=chunk) - Unrecognized tax benefits, excluding interest and penalties, remained unchanged at **$9.1 million** as of March 31, 2023, and December 31, 2022[61](index=61&type=chunk) [Note 14. Net Income Per Common Share](index=14&type=section&id=Note%2014.%20Net%20Income%20Per%20Common%20Share) Diluted net income per common share increased to $0.46 for Q1 2023, with more dilutive securities from equity awards Weighted Average Common Shares Outstanding | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Basic weighted average common shares outstanding | 35,121,473 | 35,131,889 | | Diluted weighted average common shares outstanding | 35,748,021 | 35,565,935 | | Anti-dilutive equity instruments excluded | 682,930 | 588,050 | - Diluted net income per common share increased by **411.1%** from **$0.09** in Q1 2022 to **$0.46** in Q1 2023[7](index=7&type=chunk) - No cash dividends were declared or paid during the three months ended March 31, 2023 and 2022[63](index=63&type=chunk) [Note 15. Equity](index=15&type=section&id=Note%2015.%20Equity) The company repurchased 191,846 shares for $3.5 million in Q1 2023, with $4.1 million remaining under authorization - The company repurchased **191,846 shares** of common stock for **$3.5 million** during Q1 2023[65](index=65&type=chunk)[146](index=146&type=chunk) - As of March 31, 2023, **$4.1 million** remained under the Board of Directors' authorization to purchase common stock[65](index=65&type=chunk)[145](index=145&type=chunk) - Accumulated other comprehensive loss was **$(108.0) million** as of March 31, 2023, compared to **$(107.9) million** as of December 31, 2022[66](index=66&type=chunk) [Note 16. Stock-Based Compensation](index=16&type=section&id=Note%2016.%20Stock-Based%20Compensation) Stock-based compensation expense remained at $3.1 million, with more restricted and performance share units granted in Q1 2023 - Stock-based compensation expense was **$3.1 million** for both the three months ended March 31, 2023, and 2022[69](index=69&type=chunk) - Granted **478,411** restricted stock units in Q1 2023, up from **378,623** in Q1 2022[70](index=70&type=chunk) - Issued **233,409** performance share units in Q1 2023, up from **198,334** in Q1 2022, with 2023 goals weighted **60%** on adjusted EBITDA percentage and **40%** on cumulative non-new machine sales[71](index=71&type=chunk)[72](index=72&type=chunk) [Note 17. Segments](index=17&type=section&id=Note%2017.%20Segments) Segments showed varied performance: Americas saw significant growth, while EURAF and MEAP operating income declined despite stable sales Segment Performance Summary | Segment | Net Sales (Q1 2023) | Net Sales (Q1 2022) | Segment Operating Income (Q1 2023) | Segment Operating Income (Q1 2022) | | :-------- | :------------------ | :------------------ | :--------------------------------- | :--------------------------------- | | Americas | $264.4 million | $215.9 million | $28.5 million | $5.8 million | | EURAF | $178.2 million | $179.2 million | $3.6 million | $11.4 million | | MEAP | $65.7 million | $63.9 million | $8.6 million | $13.1 million | - Americas segment operating income increased by **391.4%** year-over-year[78](index=78&type=chunk) Sales Type Breakdown | Sales Type | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :----------- | :------------------------------ | :------------------------------ | | New machine sales | $357.3 million | $329.6 million | | Non-new machine sales | $151.0 million | $129.4 million | | Total net sales | $508.3 million | $459.0 million | [Note 18. Commitments and Contingencies](index=18&type=section&id=Note%2018.%20Commitments%20and%20Contingencies) The company faces legal proceedings and an EPA inquiry; product liability and warranty reserves decreased, while EPA liability remains $14.9 million - Product liability reserves were **$8.5 million** as of March 31, 2023, down from **$9.4 million** as of December 31, 2022[82](index=82&type=chunk) - Reserves for warranty and other related claims were **$56.4 million** as of March 31, 2023, down from **$58.0 million** as of December 31, 2022[83](index=83&type=chunk) - The total recorded estimated liability for the U.S. EPA inquiry is **$14.9 million**, with statutory maximum penalties under the Clean Air Act estimated at approximately **$174.0 million**[86](index=86&type=chunk) [Note 19. Guarantees](index=19&type=section&id=Note%2019.%20Guarantees) The company provides buyback commitments and product warranties; deferred revenue for buybacks was $26.4 million, and warranty accruals decreased to $56.4 million - Deferred revenue related to buyback obligations was **$26.4 million** as of March 31, 2023, down from **$27.3 million** as of December 31, 2022[87](index=87&type=chunk) - Total buyback commitments outstanding were **$41.5 million** as of March 31, 2023, down from **$42.5 million** as of December 31, 2022[87](index=87&type=chunk) Warranty Accruals Summary | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Warranty balance at beginning of period | $58.0 million | $60.2 million | | Adjustments to accruals for warranties | $6.6 million | $5.9 million | | Settlements made | $(8.5) million | $(6.1) million | | Warranty balance at end of period | $56.4 million | $59.4 million | [Note 20. Employee Benefit Plans](index=19&type=section&id=Note%2020.%20Employee%20Benefit%20Plans) Net periodic benefit cost for Q1 2023 was $1.0 million for U.S. Pension, $1.0 million for Non-U.S. Pension, and $(0.2) million for Postretirement Health plans Net Periodic Benefit Cost Components | Component of Net Periodic Benefit Cost | U.S. Pension Plan (Q1 2023) | Non-U.S. Pension Plans (Q1 2023) | Postretirement Health and Other Plans (Q1 2023) | | :------------------------------------- | :-------------------------- | :------------------------------- | :---------------------------------------------- | | Service cost | $0.0 million | $0.3 million | $0.0 million | | Interest cost | $1.4 million | $0.7 million | $0.1 million | | Expected return on plan assets | $(1.0) million | $(0.4) million | $0.0 million | | Amortization of prior service cost | $0.0 million | $0.0 million | $(0.3) million | | Amortization of actuarial net (gain) loss | $0.6 million | $0.4 million | $0.0 million | | Net periodic benefit cost | $1.0 million | $1.0 million | $(0.2) million | - Net periodic benefit cost for the U.S. Pension Plan increased to **$1.0 million** in Q1 2023 from **$0.0 million** in Q1 2022[92](index=92&type=chunk) - Net periodic benefit cost for Postretirement Health and Other Plans improved from a cost of **$(0.4) million** in Q1 2022 to a benefit of **$(0.2) million** in Q1 2023[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial performance, condition, and liquidity, noting increased net sales and operating income despite challenges [Cautionary Statements Regarding Forward-Looking Information](index=21&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Information) This section outlines risks and uncertainties that could impact forward-looking statements, including macroeconomic, geopolitical, and supply chain factors - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially[97](index=97&type=chunk) - Key risks include macroeconomic conditions (inflation, rising interest rates, recessionary concerns), global supply chain constraints, labor availability and cost pressures, and changes in raw material costs[98](index=98&type=chunk)[101](index=101&type=chunk) - Geopolitical events, such as the Russia-Ukraine conflict, can lead to market disruptions, volatility in commodity prices, and potential asset impairment[98](index=98&type=chunk) [Current Events](index=23&type=section&id=Current%20Events) The company faces inflation, rising interest rates, and supply chain constraints; Russian operations are curtailed with expected future charges [Inflation and Interest Rate Environment](index=23&type=section&id=Inflation%20and%20Interest%20Rate%20Environment) Inflation negatively impacted costs; price increases were implemented, but realization is delayed, and high interest rates may affect demand - The Company was negatively impacted by inflation in wages, logistics, energy, raw material, and component costs for Q1 2023[101](index=101&type=chunk) - Implemented price increases and provisional pricing strategies to mitigate cost inflation, but realization is delayed due to long lead times[101](index=101&type=chunk) - Elevated interest rates and global macroeconomic uncertainty could impact customer decisions to purchase cranes[101](index=101&type=chunk) [Supply Chain, Labor and Logistics Constraints](index=23&type=section&id=Supply%20Chain,%20Labor%20and%20Logistics%20Constraints) Global supply chain, labor, and logistics constraints continue to impact sourcing and shipping, requiring alternative strategies - Global supply chain, labor, and logistics constraints negatively impacted the Company's ability to timely source parts and complete/ship units in Q1 2023[102](index=102&type=chunk) - Supply chains for certain key components remain distressed despite some relief[102](index=102&type=chunk) - The Company actively monitors and manages constraints through alternative sourcing and adapting production[102](index=102&type=chunk) [Curtailment of Operations in Russia](index=23&type=section&id=Curtailment%20of%20Operations%20in%20Russia) Russian operations are curtailed, with expected future non-cash charges of $5.0 million to $10.0 million from foreign currency adjustments - The Company's operations in Russia have been substantially curtailed as of March 31, 2023[103](index=103&type=chunk) - Expects future charges of **$5.0 million** to **$10.0 million** related to the non-cash write-off of foreign currency adjustments in accumulated other comprehensive loss[103](index=103&type=chunk) [Segment Operating Performance](index=24&type=section&id=Segment%20Operating%20Performance) Americas segment showed strong growth in sales and operating income, while EURAF and MEAP operating income declined due to various factors Segment Operating Performance Summary | Segment | Net Sales (Q1 2023) | Net Sales (Q1 2022) | Net Sales Change (YoY) | Operating Income (Q1 2023) | Operating Income (Q1 2022) | Operating Income Change (YoY) | | :-------- | :------------------ | :------------------ | :--------------------- | :------------------------- | :------------------------- | :---------------------------- | | Americas | $264.4 million | $215.9 million | +22.5% | $28.5 million | $5.8 million | +391.4% | | EURAF | $178.2 million | $179.2 million | -0.6% | $3.6 million | $11.4 million | -68.4% | | MEAP | $65.7 million | $63.9 million | +2.8% | $8.6 million | $13.1 million | -34.4% | [Americas Segment](index=24&type=section&id=Americas%20Segment) Americas segment net sales increased by 22.5% to $264.4 million, with operating income surging to $28.5 million due to sales and pricing - Americas segment net sales increased **22.5%** to **$264.4 million** for Q1 2023[107](index=107&type=chunk) - Americas segment operating income increased by **$22.7 million** to **$28.5 million** for Q1 2023[108](index=108&type=chunk) - The increase was primarily attributable to higher new machine sales, non-new machine sales, pricing actions, and favorable product mix[107](index=107&type=chunk)[108](index=108&type=chunk) [EURAF Segment](index=24&type=section&id=EURAF%20Segment) EURAF segment net sales slightly decreased to $178.2 million, and operating income significantly declined to $3.6 million due to costs and mix - EURAF segment net sales decreased **0.6%** to **$178.2 million** for Q1 2023, unfavorably impacted by **$8.0 million** from foreign currency exchange rates[109](index=109&type=chunk) - EURAF segment operating income decreased **68.4%** to **$3.6 million** for Q1 2023[110](index=110&type=chunk) - The decrease in operating income was primarily due to unfavorable new machine product mix and higher material, transportation, and labor costs[110](index=110&type=chunk) [MEAP Segment](index=24&type=section&id=MEAP%20Segment) MEAP segment net sales increased to $65.7 million, but operating income decreased to $8.6 million due to higher costs and prior-year recovery absence - MEAP segment net sales increased **2.8%** to **$65.7 million** for Q1 2023, despite an unfavorable impact of **$3.2 million** from foreign currency exchange rates[111](index=111&type=chunk) - MEAP segment operating income decreased **34.4%** to **$8.6 million** for Q1 2023[112](index=112&type=chunk) - The decrease in operating income was primarily due to higher labor and administrative costs and a **$4.8 million** income recorded in the prior year from a note receivable recovery[112](index=112&type=chunk) [Results of Operations for the three months ended March 31, 2023 and 2022](index=25&type=section&id=Results%20of%20Operations%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022) The company reported strong Q1 2023 growth in orders, backlog, net sales, and gross profit, with increased net income and decreased tax provision Key Financial Metrics Summary | Metric | Q1 2023 | Q1 2022 | Percentage Change | | :------------------------------------ | :------------------------------ | :------------------------------ | :---------------- | | Orders | $524.8 million | $481.5 million | +9.0% | | Backlog | $1,075.7 million | $1,033.4 million | +4.1% | | Net sales | $508.3 million | $459.0 million | +10.7% | | Gross profit | $106.3 million | $85.0 million | +25.1% | | Gross profit % | 20.9% | 18.5% | +2.4 percentage points | | Engineering, selling, and administrative expenses | $75.1 million | $66.5 million | +12.9% | | Interest expense | $8.1 million | $7.4 million | +9.5% | | Provision for income taxes | $4.2 million | $6.5 million | -35.4% | [Orders and Backlog](index=25&type=section&id=Orders%20and%20Backlog) Orders increased by 9.0% to $524.8 million for Q1 2023, driven by Americas demand, and total backlog grew by 4.1% - Orders for Q1 2023 increased **9.0%** to **$524.8 million** from **$481.5 million** in Q1 2022[115](index=115&type=chunk) - The increase in orders was primarily attributable to higher demand in the Americas segment, partially offset by softening demand in the EURAF segment[115](index=115&type=chunk) - Total backlog as of March 31, 2023, was **$1,075.7 million**, a **4.1%** increase from **$1,033.4 million** as of March 31, 2022[116](index=116&type=chunk) [Net Sales](index=25&type=section&id=Net%20Sales) Consolidated net sales increased by 10.7% to $508.3 million for Q1 2023, driven by Americas sales and pricing, despite currency impact

The Manitowoc Company, Inc. (NYSE:MTW) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET Company Participants Ion Warner - Investor Relations Aaron Ravenscroft - President and Chief Executive Officer Brian Regan - Executive Vice President and Chief Financial Officer Conference Call Participants Jamie Cook - Credit Suisse Tami Zakaria - JPMorgan Joseph Grabowski - Baird Stephen Volkmann - Jefferies Steven Fisher - UBS Seth Weber - Wells Fargo Securities Operator Good morning. My name is David and I wi ...

$800 $200 $ | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------|------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|----------------------------|----------------|----------------------------------------------------- ...

Sales and Growth Strategy - The Manitowoc Company aims to grow non-new machine sales by 50% to approximately $675 million by 2026 as part of its CRANES+50 strategy[18] - The Company has invested $30 million in capital expenditures to expand its tower crane rental fleet in Europe, enhancing aftermarket services[20] - The acquisition of Aspen Equipment and H&E Equipment Services has expanded Manitowoc's ability to provide new machine sales and aftermarket services in North America[23] - The Company continues to invest in its rental fleet to further expand aftermarket services, primarily in the United States and Europe[24] Product Development and Innovation - Seven new models of innovative topless tower cranes have been developed for the China Belt and Road market, reducing the product development cycle from 18-24 months to 12-14 months[21] - Ten new all-terrain cranes have been announced, featuring enhancements such as longer boom lengths and increased load capacity[22] - The company continues to focus on engineering, research, and development to create innovative products, with dedicated teams across three continents[48] - Manitowoc's lattice-boom crawler cranes are designed to provide higher lifting capacities and are used in heavy construction and energy-related projects[24] - The company has numerous patents globally, protecting its intellectual property and maintaining its competitive edge in engineered lifting solutions[47] Operational Efficiency and Manufacturing - Manitowoc operates three reportable segments: the Americas, Europe and Africa, and the Middle East and Asia Pacific[15] - The Company focuses on continuous improvement through The Manitowoc Way, which includes lean tools to enhance operational efficiency and product quality[16] - The company operates eleven manufacturing facilities globally, including remanufacturing facilities, utilizing advanced manufacturing and quality assurance processes[42] Supply Chain and Workforce - In 2022, the company faced supply chain, labor, and logistics constraints, particularly on electronic components and hydraulics, negatively impacting operations and cash flows[46] - The company employed approximately 4,800 people worldwide as of December 31, 2022, with the majority in the EURAF segment[51] - The company maintains long-term agreements with critical suppliers to mitigate risks related to raw material availability[45] Health, Safety, and Employee Development - The year-end Recordable Injury Rate (RIR) was 1.53, significantly lower than the industry average of 3.6, indicating strong health and safety performance[53] - The company provides extensive training programs for employees, including environmental health and safety and leadership development[55] - The company invests in employee development through various training programs, including environmental health and safety and Lean manufacturing methodologies[55] Diversity and Inclusion - The company launched its first women's resource group in 2022 as part of its commitment to diversity, equity, and inclusion[54] - The company has a strong commitment to diversity and inclusion, launching its first women's resource group in 2022[54] Aftermarket Services - Manitowoc's aftermarket services portfolio continues to expand, supporting its growth strategy in North America and Europe[24] - The company provides extensive aftermarket services, including parts sales, maintenance, and technical support, enhancing customer satisfaction[34]

Financial Data and Key Metrics Changes - The company reported fourth-quarter net sales of $622 million, a 25% increase year-over-year, driven by pricing, a stronger shippable backlog, and incremental sales from acquisitions [43][67] - Adjusted EBITDA for the fourth quarter was $52 million, a 51% increase year-over-year, with an adjusted EBITDA margin of 8.3%, up 140 basis points from the prior year [22][46] - For the full year, net sales totaled $2.33 billion, an 18% increase year-over-year, primarily due to pricing actions and higher volume [67] - The company generated $80 million in cash from operating activities in the fourth quarter, resulting in free cash flows of $50 million [24] Business Line Data and Key Metrics Changes - Non-new machine sales increased by 22% to $545 million for the year, contributing to overall growth [6][41] - The company launched 9 new cranes in 2022 and introduced 10 new all-terrain models, enhancing its product offerings [29][40] Market Data and Key Metrics Changes - Orders for the fourth quarter were $708 million, a 15% increase year-over-year, primarily driven by higher pricing and large dealer orders [20] - The European mobile crane market showed positive signs, but the tower crane market faced a lack of confidence due to the Ukraine conflict and rising interest rates [12] - In Asia Pacific, market sentiment varied, with Southeast Asia remaining muted due to a corruption scandal, while optimism exists for Vietnam's future [13] Company Strategy and Development Direction - The company is focused on growing its European tower crane rental fleet and has invested $30 million in this area over the last three years [17] - The company aims to grow its non-new machine sales organically and through strategic acquisitions, positioning itself for future growth [53] Management's Comments on Operating Environment and Future Outlook - Management expects 2023 results to be similar to 2022, with headwinds from inflation, supply chain constraints, and a softening European tower crane market [48][49] - The company remains optimistic about the long-term recovery in crane demand, driven by infrastructure spending and projects in Saudi Arabia [72][73] Other Important Information - The company achieved ISO 50001 certification for all manufacturing facilities and met its 2025 greenhouse gas emissions target three years ahead of schedule [8] - The company ended the quarter with a cash balance of $64 million, a decrease of $11 million from the prior year [47] Q&A Session Summary Question: Can you expand on the opportunity in the Middle East? - Management indicated that the current projects are just beginning, with tenders expected to emerge in the fourth quarter of the year [54] Question: What are your expectations for sales guidance regarding price versus volume? - Management noted that the sales guidance includes both price increases and volume changes, but specifics were not disclosed [57] Question: How do you see the competitive environment in the Middle East compared to Europe? - Management described the Middle East as having a mixed competitive environment, with pricing varying based on machine availability and project size [117]