Business Journal
– Monetary outcomes replicate dynamic working atmosphere
– EPS better than doubled yr-over-yr
– Monetary outlook up previously for corpulent-yr 2021
– Persevered generating sure quarterly free money drift
– Persevered reduction of leverage by prepayment of time period loan in October
NORWALK, Conn., Oct. 28, 2021 /PRNewswire/ — Terex Company (NYSE: TEX) announced third quarter 2021 profits from continuing operations of $47.5 million, or $0.67 per share, on catch gross sales of $993.8 million. Within the third quarter of 2020, the reported profits from continuing operations became as soon as $22.0 million, or $0.31 per share, on catch gross sales of $765.6 million.
“Cease-market inquire remains exceptionally sturdy demonstrated by vital yr-over-yr convey in orders, backlog and a well-known e book-to-bill ratio,” acknowledged Terex Chairman and Chief Govt Officer John L. Garrison, Jr. “Our ability to meet this high stage of inquire is constrained by supply chain, labor, freight and logistics challenges. We’re riding our suppliers on availability and worth to diminish the influence on our customers and distributors. I’m joyful how our crew members hang worked tirelessly to attend overcome these external headwinds.”
Garrison persisted, “Our industrial excellence initiatives are demonstrating outcomes, as pricing actions continue to partially offset accelerating worth inflation. Designate will increase are being clearly communicated with our customers and distributors and we are able to be implementing extra label will increase.”
“AWP improved its working margins regardless of input worth headwinds. MP had another superb quarter because it continues its sturdy execution all the map by its portfolio of agencies,” added Garrison.
We’re updating our corpulent-yr 2021 EPS outlook to $2.75 to $2.85 on catch gross sales of $3.85 billion reflecting the original atmosphere.
John Sheehan, Senior Vice President and Chief Monetary Officer, acknowledged, “Aggressive working capital administration drove $43 million of free money drift in the quarter and $183 million of free money drift yr-to-date. Our sturdy monetary outcomes and liquidity enabled us to continue to diminish leverage by prepaying an additional $150 million of time period loans in October. Debt prepayments of $429 million yr-to-date hang reduced leverage, bolstered our balance sheet, and positioned the Firm for convey.”
Mr. Garrison concluded, “We’re going to end out corpulent yr 2021 with sturdy backlog, persisted worth self-discipline, and sure free money drift. We remain assured in our crew’s ability to administer by original market prerequisites and emerge with stronger buyer and vendor relationships. We’re going to continue our investments to enable longer-time period convey.”
Non-GAAP Measures and Numerous Items
Results of operations replicate continuing operations. All per share amounts are on an fully diluted basis. A comprehensive overview of the quarterly monetary performance is contained in the presentation that can accompany the Firm’s earnings convention name.
On this press delivery, Terex refers to plenty of GAAP (U.S. in most cases favorite accounting ideas) and non-GAAP monetary measures. These non-GAAP measures would possibly well perchance not be the same to equally titled measures being disclosed by assorted corporations. Terex believes that this non-GAAP recordsdata is priceless to determining its working outcomes and the continuing performance of its underlying agencies.
The Glossary at the cease of this press delivery contains extra critical parts about this enviornment.
Conference Name
The Firm has scheduled a convention name to overview the monetary outcomes on Friday, October 29, 2021 starting at 8: 30 a.m. ET. John Garrison, Chairman and CEO, will host the option. A simultaneous webcast of this name would possibly well perchance even be accessed at https://patrons.terex.com. Contributors are encouraged to access the option 10 minutes sooner than the starting time. The option will additionally be archived in the Tournament Archive at https://patrons.terex.com.
Ahead-Having a explore Statements
Obvious recordsdata on this press delivery entails ahead-having a explore statements (interior the meaning of Portion 27A of the Securities Act of 1933, Portion 21E of the Securities Alternate Act of 1934 and the Private Securities Litigation Reform Act of 1995) referring to future occasions or our future monetary performance that involve sure contingencies and uncertainties, collectively with these mentioned in our Annual Record on Produce 10-Good ample for the yr ending December 31, 2020, and subsequent reports we file with the U.S. Securities and Alternate Rate in most cases, in the sections entitled “Administration’s Discussion and Diagnosis of Monetary Condition and Results of Operations – Contingencies and Uncertainties.” To boot to, when included on this press delivery or in paperwork incorporated herein by reference, the words “would possibly well perchance,” “expects,” “must easy,” “intends,” “anticipates,” “believes,” “plans,” “initiatives,” “estimates,” “will” and the negatives thereof and analogous or same expressions are supposed to title ahead-having a explore statements. On the opposite hand, the absence of these words does not imply that the assertion isn’t ahead-having a explore. Now we hang primarily based fully mostly these ahead-having a explore statements on original expectations and projections about future occasions. These statements aren’t guarantees of future performance. Such statements are inherently enviornment to a diversity of risks and uncertainties that would possibly well perchance motive staunch outcomes to differ materially from these mirrored in such ahead-having a explore statements. Such risks and uncertainties, a selection of which would possibly well perchance be beyond our control, embody, among others:
- our enterprise has been, and is at risk of be extra, adversely impacted by world health pandemics comparable to the outbreak of a peculiar rigidity of coronavirus (“COVID-19”);
- our enterprise is extremely aggressive and is tormented by our worth constructing, pricing, product initiatives and assorted actions taken by opponents;
- we’re dependent upon third-occasion suppliers, making us at threat of supply shortages and worth will increase;
- our operations are enviornment to a option of doable risks that come up from working a multinational enterprise, collectively with compliance with changing regulatory environments and political instability;
- a material disruption to one in all our vital facilities;
- our enterprise is sensitive to govt spending;
- our enterprise is tormented by the cyclical nature of markets we aid;
- our monetary outcomes would possibly well perchance be adversely impacted by the UK’s (“U.Good ample.”) departure from the European Union (“E.U.”);
- changes affecting the provision of the London Interbank Supplied Price (“LIBOR”) can hang penalties on us that would possibly well not yet moderately be predicted;
- our favor to be aware restrictive covenants contained in our debt agreements;
- our ability to generate ample money drift to provider our debt obligations and operate our enterprise;
- our ability to access the capital markets to decide funds and present liquidity;
- the monetary situation of suppliers and customers, and their persisted access to capital;
- exposure from providing financing and credit serve for just a few of our customers;
- we would possibly well perchance ride losses in extra of recorded reserves;
- our enterprise is world and enviornment to changes in trade rates between currencies, commodity label changes, regional financial prerequisites and trade relatives;
- our retention of key administration personnel;
- doable work stoppages and assorted labor matters;
- changes in import/export regulatory regimes, imposition of tariffs, escalation of world trade conflicts and unfairly traded imports, specifically from China, would possibly well perchance continue to negatively influence our enterprise;
- compliance with changing legal tricks and laws, specifically environmental and tax legal tricks and laws;
- litigation, product obligation claims and assorted liabilities;
- our compliance with the usa (“U.S.”) International Notorious Practices Act and same worldwide anti-corruption legal tricks;
- increased regulatory focal level on privacy and records security points and expanding legal tricks;
- our ability to be aware an injunction and connected obligations imposed by the U.S. Securities and Alternate Rate (“SEC”);
- our ability to successfully put in force our approach:
- disruption or breach in our recordsdata abilities programs and storage of sensitive records; and
- assorted factors.
Actual occasions or our staunch future outcomes would possibly well perchance differ materially from any ahead-having a explore assertion due to those and assorted risks, uncertainties and materials factors. The ahead-having a explore statements contained herein discuss only as of the date of this press delivery and the ahead-having a explore statements contained in paperwork incorporated herein by reference discuss only as of the date of the respective paperwork. We expressly disclaim any duty or endeavor to delivery publicly any updates or revisions to any ahead-having a explore assertion contained or incorporated by reference on this press delivery to replicate any replace in our expectations with reference thereto or any replace in occasions, prerequisites or conditions on which this kind of assertion relies mostly.
About Terex
Terex Company is a world producer of aerial work platforms and supplies processing equipment. The Firm designs, builds, and helps merchandise worn in constructing, repairs, manufacturing, vitality, minerals and supplies administration applications. The Firm’s merchandise are manufactured in North and South The US, Europe, Australia, and Asia and sold worldwide. The Firm engages with customers by all stages of the product existence cycle, from initial specification and financing to parts and repair serve. Terex makes utilize of its web space (www.terex.com) to supply recordsdata on hand to its patrons.
Contact Knowledge
Terex Company
Randy Wilson
Director, Investor Relations & Corporate Treasury
203-221-5415
| (unaudited) (in thousands and thousands, except per share records) | |||||||||||||||
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| Obtain gross sales | $ | 993.8 | | | $ | 765.6 | | | $ | 2,896.7 | | | $ | 2,289.7 | |
| Designate of issues sold | | (815.3) | | | | (619.3) | | | | (2,311.2) | | | | (1,899.6) | |
| Inferior revenue | | 178.5 | | | | 146.3 | | | | 585.5 | | | | 390.1 | |
| Selling, fundamental and administrative fees | | (104.3) | | | | (109.8) | | | | (327.3) | | | | (353.3) | |
| Earnings (loss) from operations | | 74.2 | | | | 36.5 | | | | 258.2 | | | | 36.8 | |
| Numerous profits (expense) | | | | | | | | | | | | ||||
| Hobby profits | | 0.6 | | | | 0.8 | | | | 2.9 | | | | 2.5 | |
| Hobby expense | | (12.3) | | | | (15.8) | | | | (40.6) | | | | (50.0) | |
| Loss on early extinguishment of debt | | — | | | | — | | | | (27.7) | | | | — | |
| Numerous profits (expense) – catch | | (1.1) | | | | (0.6) | | | | 2.7 | | | | (0.1) | |
| Earnings (loss) from continuing operations earlier than profits taxes | | 61.4 | | | | 20.9 | | | | 195.5 | | | | (10.8) | |
| (Provision for) serve from profits taxes | | (13.9) | | | | 1.1 | | | | (36.0) | | | | 4.9 | |
| Earnings (loss) from continuing operations | | 47.5 | | | | 22.0 | | | | 159.5 | | | | (5.9) | |
| Earnings (loss) from discontinued operations – catch of tax | | — | | | | (0.1) | | | | — | | | | (1.3) | |
| Make a selection up (loss) on disposition of discontinued operations- catch of tax | | 0.6 | | | | (16.1) | | | | 2.6 | | | | (21.1) | |
| Obtain profits (loss) | $ | 48.1 | | | $ | 5.8 | | | $ | 162.1 | | | $ | (28.3) | |
| Fundamental earnings (loss) per Half: | | | | | | | | | | | | ||||
| Earnings (loss) from continuing operations | $ | 0.68 | | | $ | 0.31 | | | $ | 2.29 | | | $ | (0.09) | |
| Earnings (loss) from discontinued operations – catch of tax | | — | | | | — | | | | — | | | | (0.02) | |
| Make a selection up (loss) on disposition of discontinued operations – catch of tax | | 0.01 | | | | (0.23) | | | | 0.04 | | | | (0.30) | |
| Obtain profits (loss) | $ | 0.69 | | | $ | 0.08 | | | $ | 2.33 | | | $ | (0.41) | |
| Diluted earnings (loss) per Half: | | | | | | | | | | | | ||||
| Earnings (loss) from continuing operations | $ | 0.67 | | | $ | 0.31 | | | $ | 2.25 | | | $ | (0.09) | |
| Earnings (loss) from discontinued operations – catch of tax | | — | | | | — | | | | — | | | | (0.02) | |
| Make a selection up (loss) on disposition of discontinued operations – catch of tax | | 0.01 | | | | (0.23) | | | | 0.04 | | | | (0.30) | |
| Obtain profits (loss) | $ | 0.68 | | | $ | 0.08 | | | $ | 2.29 | | | $ | (0.41) | |
| Weighted life like option of shares prominent in per share calculation | | | | | | | | | | | | ||||
| Fundamental | | 69.8 | | | | 69.3 | | | | 69.7 | | | | 69.7 | |
| Diluted | | 70.9 | | | | 69.5 | | | | 70.8 | | | | 69.7 | |
| (unaudited) (in thousands and thousands, except par worth) | |||||
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| Assets | | | | | |
| Contemporary resources | | | | | |
| Money and money equivalents | $ | 553.2 | | $ | 665.0 |
| Numerous original resources | | 1,452.6 | | | 1,213.6 |
| Complete original resources | | 2,005.8 | | | 1,878.6 |
| Non-original resources | | | | | |
| Property, plant and equipment – catch | | 412.6 | | | 406.6 |
| Numerous non-original resources | | 649.5 | | | 746.6 |
| Complete non-original resources | | 1,062.1 | | | 1,153.2 |
| Complete resources | $ | 3,067.9 | | $ | 3,031.8 |
| | | | | | |
| Liabilities and Stockholders’ Equity | | | | | |
| Contemporary liabilities | | | | | |
| Contemporary portion of long-time period debt | $ | 5.7 | | $ | 7.6 |
| Numerous original liabilities | | 934.1 | | | 715.7 |
| Complete original liabilities | | 939.8 | | | 723.3 |
| Non-original liabilities | | | | | |
| Lengthy-time period debt, less original portion | | 887.7 | | | 1,166.2 |
| Numerous non-original liabilities | | 189.7 | | | 220.8 |
| Complete non-original liabilities | | 1,077.4 | | | 1,387.0 |
| Complete liabilities | | 2,017.2 | | | 2,110.3 |
| | | | | | |
| Complete stockholders’ equity | | 1,050.7 | | | 921.5 |
| Complete liabilities and stockholders’ equity | $ | 3,067.9 | | $ | 3,031.8 |
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| Working Actions | | | | | ||
| Obtain profits (loss) | $ | 162.1 | | $ | (28.3) | |
| Depreciation and amortization | | 37.9 | | | 36.3 | |
| Adjustments in working resources and liabilities and non-money fees | | 124.1 | | | 80.9 | |
| Obtain money offered by (worn in) working activities | | 324.1 | | | 88.9 | |
| Investing Actions | | | | | | |
| Capital expenditures | | (31.7) | | | (53.9) | |
| Numerous investing activities, catch | | (41.7) | | | 13.9 | |
| Obtain money offered by (worn in) investing activities | | (73.4) | | | (40.0) | |
| Financing Actions | | | | | | |
| Obtain money offered by (worn in) financing activities | | (348.7) | | | (80.8) | |
| Invent of trade rate changes on money and money equivalents | | (13.9) | | | 4.4 | |
| Obtain boost (decrease) in money and money equivalents | | (111.9) | | | (27.5) | |
| Money and money equivalents at starting of period | | 670.1 | | | 540.1 | |
| Money and money equivalents at cease of period | $ | 558.2 | | $ | 512.6 | |
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| Obtain gross sales | $ | 993.8 | | $ | 765.6 | | | $ | 2,896.7 | | | $ | 2,289.7 | | | ||
| Earnings (loss) from operations | $ | 74.2 | 7.5% | $ | 36.5 | 4.8% | | $ | 258.2 | | 8.9% | $ | 36.8 | | 1.6% | ||
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| Obtain gross sales | $ | 572.5 | | $ | 445.0 | | | $ | 1,644.4 | | | $ | 1,370.6 | | | ||
| Earnings (loss) from operations | $ | 34.9 | 6.1% | $ | 13.3 | 3.0% | | $ | 126.7 | | 7.7% | $ | 2.4 | | 0.2% | ||
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| Obtain gross sales | $ | 418.7 | | $ | 311.3 | | | $ | 1,237.7 | | | $ | 890.5 | | | ||
| Earnings (loss) from operations | $ | 57.1 | 13.6% | $ | 40.3 | 12.9% | | $ | 178.3 | | 14.4% | $ | 88.7 | | 10.0% | ||
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| Obtain gross sales | $ | 2.6 | | $ | 9.3 | | | $ | 14.6 | | | $ | 28.6 | | | ||
| Loss from operations | $ | (17.8) | * | $ | (17.1) | * | | $ | (46.8) | | * | $ | (54.3) | | * | ||
| Now not a predominant percentage | | | | | | | | ||||||||||
GLOSSARY
With a belief to supply patrons with extra recordsdata referring to the Firm’s outcomes, Terex refers to plenty of GAAP (U.S. in most cases favorite accounting ideas) and non-GAAP monetary measures which administration believes provides priceless recordsdata to patrons. These non-GAAP measures would possibly well perchance not be the same to equally titled measures being disclosed by assorted corporations. To boot to, the Firm believes that non-GAAP monetary measures must be belief of as along with, and not in lieu of, GAAP monetary measures. Terex believes that this non-GAAP recordsdata is priceless to determining its working outcomes and the continuing performance of its underlying agencies. Administration of Terex makes utilize of both GAAP and non-GAAP monetary measures to attach interior budgets and targets and to mediate the Firm’s monetary performance against such budgets and targets.
The amounts described below are unaudited, are reported in thousands and thousands of U.S. bucks (except share records and percentages), and are as of or for the period ended September 30, 2021, except otherwise indicated.
2021 Outlook
The Firm’s 2021 outlook for earnings per share is a non-GAAP monetary measure on tale of it excludes the influence of doable future acquisitions, divestitures, restructuring, and assorted unheard of devices. The Firm is unable to reconcile this ahead-having a explore non-GAAP monetary measure to its most straight connected ahead-having a explore GAAP monetary measures without unreasonable efforts since the Firm is unable to foretell with a life like stage of sure wager the staunch timing and influence of such devices. The unavailable recordsdata can hang a predominant influence on the Firm’s corpulent-yr 2021 GAAP monetary outcomes. This ahead having a explore recordsdata provides steering to patrons about the Firm’s EPS expectations other than unheard of devices that the Firm does not think is reflective of its ongoing operations.
Free Money Shuffle
The Firm calculates a non-GAAP measure of free money drift. The Firm defines free money drift as Obtain money offered by (worn in) working activities, plus (minus) will increase (decreases) in Terex Monetary Services and products finance receivables consisting of gross sales-form leases and industrial loans (“TFS Assets”), less Capital expenditures, catch of proceeds from sale of capital resources. The Firm believes that this measure of free money drift provides administration and patrons extra priceless recordsdata on money generation or utilize in our main operations. The following table reconciles Obtain money offered by (worn in) working activities to free money drift (in thousands and thousands):
| | | Three Months Ended September 30, 2021 | | 9 Months Ended September 30, 2021 | | ||||
| Obtain money offered by (worn in) working activities | | $ | 54.9 | | | $ | 324.1 | | |
| Develop (decrease) in TFS resources | | (4.6) | | | (110.2) | | | ||
| Capital expenditures, catch of proceeds from sale of capital resources | | (7.8) | | | (30.5) | | | ||
| Free money drift | | $ | 42.5 | | | $ | 183.4 | | |
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SOURCE Terex Company
