The Manitowoc Company, Inc. (NYSE:MTW) Q4 2018 Earnings Conference Call Transcript

Feb 08, 2019 • 10:00 am ET


The Manitowoc Company, Inc. (NYSE:MTW) Q4 2018 Earnings Conference Call Transcript


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Ladies and gentlemen, please stand by. Good day, everyone and welcome to the Manitowoc Fourth Quarter Full-Year 2018 Earnings Conference Call. Today's conference is being recorded.

At this time, for opening remarks and introductions, I would like to turn the call over to Ion Warner, Vice President, Marketing and Investor Relations. Please go ahead.

Ion Warner

Thank you, Jake. Good morning, everyone, and welcome to the Manitowoc conference call to review the Company's fourth quarter 2018 performance and our 2019 full-year business outlook, as outlined in last evening's press release. Conducting the call will be Barry Pennypacker, President and Chief Executive Officer; and David Antoniuk, Senior Vice President and Chief Financial Officer. Today's webcast includes a slide presentation, which can be found in the Investor Relations section of our website. We will reference these slides throughout the prepared remarks. We will be sure to reserve time for questions and answers after our remarks. I would like to request that you limit your questions to one and a follow-up and return to the queue to ensure everyone has an opportunity to ask their questions.

Please turn to slide 2. Before we begin, please note our Safe Harbor statement in the material provided for this call. During today's call, forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, are made based on the Company's current assessment of its markets and other factors that affect its business. However, actual results could differ materially from any implied or actual projections due to one or more of the factors, among others, described in the Company's latest SEC filings. The Manitowoc Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or other circumstances.

And with that, please refer to Slide 3. I will now turn the call over to you, Barry.

Barry L. Pennypacker

Thanks, Ion and welcome, everyone. I'm very pleased to report our fourth quarter results, which showed exceptional performance against very tough year-over-year comps. These results demonstrate that we are a standalone crane company, that can continue to deliver operational improvements and value creation by utilizing the principles of The Manitowoc Way. We achieved our seventh consecutive quarter of year-over-year adjusted EBITDA percentage improvement and generated $40 million of cash from adjusted operating activities for the year. These are significant achievements, in light of the recent market driven headwinds. This was an outstanding team effort by all of us, and I would like to thank all of our 5,000 employees for a job well done.

For the full year, we delivered 17% increase in sales, along with over 150 basis points of adjusted EBITDA margin improvement. This is a result of increased crane shipments across all regions, primarily due to recovery in the commercial construction and energy end markets. The all-too-familiar headwinds, such as material costs and tariffs, skilled labor shortages, rising logistic costs, and a constrained supply chain, were effectively managed and evidenced by the aforementioned EBITDA margin improvement.

Looking forward,