The Manitowoc Company Inc. (NYSE:MTW) filed Quarterly Report for the period ended 2010-09-30.
The Manitowoc Company Inc. has a market cap of $1.56 billion; its shares were traded at around $11.89 with and P/S ratio of 0.4. The dividend yield of The Manitowoc Company Inc. stocks is 0.2%. The Manitowoc Company Inc. had an annual average earning growth of 13.1% over the past 10 years.MTW is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors, Mario Gabelli of GAMCO Investors, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:Engineering, selling and administrative (ES&A) expenses for the third quarter of 2010 increased approximately $6.1 million to $138.8 million versus $132.7 million for the third quarter of 2009. For the nine months ended September 30, 2010, ES&A expenses were $397.6 million, which was a $22.4 million decrease over ES&A expenses for the nine months ended September 30, 2009. These changes were driven by the Crane segment which increased ES&A expenses versus the prior year three month period by $3.3 million and decreased ES&A expenses compared to the prior year nine month period by $14.4 million, respectively. The higher Crane segment expenses were due to employee related costs for three month period, while the decrease for the comparable nine month period was due to cost reduction activities across all regions. The Foodservice segment increased ES&A expenses versus the prior three month period by $1.8 million due to employee related costs and decreased over the nine month period by $4.3 million primarily due to integration synergies.
Interest expense for the first nine months of 2010 was $130.0 million versus $130.4 million for the first nine months of 2009. Interest expense was $46.3 million and $49.0 million for the three months ended September 30, 2010 and September 30, 2009, respectively. Decreases in each comparable period are due to lower underlying debt levels offset by higher interest rates. Amortization expense for deferred financing fees were $17.4 million for the nine months ended September 30, 2010 compared to $21.7 million in the first nine months of 2009. The lower expense in 2010 is related to the lower balance of deferred financing fees as a result of the accelerated pay downs of Term Loans in 2009 and 2010 and use of the effective interest method.
Other expense, net for the three and nine months ended September 30, 2010 was income of $0.5 million and expense of $11.4 million, respectively, versus other income of $2.3 million and $8.5 million for the same periods ended September 30, 2009. The expense in 2010 is primarily the result of $6.7 million in currency losses as the company was negatively impacted by currency volatility. In addition, we finalized the liquidation of a dormant company in Europe within the Foodservice segment which resulted in reclassifying currency losses of $2.5 million from Accumulated other comprehensive income into other expense, net. The balance of the 2010 expense is primarily related to bank fees. The 2009 periods were positively impacted by currency gains.
Cash and cash equivalents balance as of September 30, 2010 totaled $113.2 million, which was an increase of $7.4 million from the December 31, 2009 balance of $105.8 million. Cash flow provided by operating activities of continuing operations for the first nine months of 2010 was $53.0 million compared to $201.1 million for the first nine months of 2009. The contraction in cash flow was primarily driven by negative working capital results from increases in receivables and inventories only partially offset by related increases in accounts payable. The prior year also included a $70.0 million settlement payment made in connection with the settlement of a long-standing, non-operational legal matter relating to Enodis, during the first half of 2009. See further detail related to the legal settlement at Note 15, Contingencies and Significant Estimates.
The cash and cash equivalents balance as of September 30, 2009 totaled $158.5 million, which was a decrease of $14.5 million from the December 31, 2008 balance of $173.0 million. Cash flow provided by operating activities of continuing operations for the first nine months of 2009 was $201.1 million compared to cash provided of $112.9 million for the same period in 2008. During the first nine months of 2009 the source of cash was primarily driven by effective working capital management resulting in reductions of accounts receivable and inventory levels by $210.6 million and $237.6 million, respectively. Partially offsetting this was a decrease in accounts payable by $271.2 million and a $70.0 million settlement payment made in connection with the settlement of a long-standing, non-operational legal matter relating to Enodis, during the first half of 2009. See further detail related to the legal settlement at Note 15, Contingencies and Significant Estimates.
In April 2008, the company entered into a $2.4 billion credit agreement which was amended and restated as of August 25, 2008, to ultimately increase the size of the total facility to $2.925 billion (New Credit Agreement). The New Credit Agreement became effective November 6, 2008. The New Credit Agreement includes four loan facilities a revolving facility of $400.0 million with a five-year term, a Term Loan A of $1,025.0 million with a five-year term, a Term Loan B of $1,200.0 million with a six-year term, and a Term Loan X of $300.0 million with an eighteen-month term. The company is obligated to prepay the three term loan facilities from the net proceeds of asset sales, casualty losses, equity offerings, and new indebtedness for borrowed money, and from a portion of its excess cash flow, subject to certain exceptions. Term Loan X was repaid in full. At September 30, 2010 the interest rates for Term Loan A and Term Loan B were 5.56% and 8.00%, respectively. Including interest rate swaps, Term Loan A and Term Loan B interest rates were 6.56% and 8.43% respectively, at September 30, 2010.
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