Manitex International, Inc. (Nasdaq: MNTX), a
leading international provider of truck and knuckle boom cranes,
today announced Second Quarter 2018 results. Net revenues for
the second quarter were $63.9 million, compared to $52.1 million in
the prior year’s period*, and net loss from continuing operations
attributable to shareholders of Manitex of $(1.0) million, or
$(0.05) per share, compared to a net loss from continuing
operations attributable to shareholders of Manitex of $(1.5)
million, or $(0.09) per share, in the second quarter of
2017*. Adjusted net income** from continuing operations in
the second quarter 2018 was $1.9 million, or $0.11 per share,
compared to adjusted net loss of $(1.0) million, or $(0.06) per
share, for the second quarter of 2017*.
Highlights (versus prior year,
unless otherwise noted):
- Net revenues of $63.9 million, up 22.8%
- Adjusted EBITDA** increased 188% to $5.2 million, or 8.1% of
sales, from $1.8 million or 3.5% of sales
- Adjusted earnings per share** improved to $0.11 compared to an
adjusted loss per share of $(0.06)
- Backlog declined moderately from $88 million in Q1 2018 to $76
million, up 59% from Q2 2017
- $32.7 million strategic investment by Tadano
- Net debt of $51 million represents reduction of $39 million
from year-end 2017
*All references in this release to financial
results of periods ending prior to the third quarter of 2017
reflect such results as restated pursuant to the recently completed
restatement of such periods.**Adjusted Numbers are discussed in
greater detail and reconciled under “Non-GAAP Financial Measures
and Other Items” at the end of this release.
“The results reported today continue to show steady improvement
in our operations, with growth in sales, margins, and adjusted
income. However, we believe, the most significant event which
occurred in the second quarter was the $32.7 million investment in
Manitex by Tadano Corporation,” commented David J. Langevin, Chief
Executive Officer of Manitex.
“The Tadano investment has enabled us to reduce our net debt to
approximately $51 million, which represents a $144 million
reduction from its peak level just over three years ago. We believe
we now have sufficient working capital position to execute our
global growth plans and take advantage of opportunities that our
new relationship with Tadano presents.”
Steve Kiefer, President and Chief Operating Officer of Manitex
stated, “In the quarter, we generated improved revenue and earnings
reflecting strengthening global demand for our products and
operational execution of our sales and manufacturing teams.
Revenue of $63.9 million increased 23% versus the same period last
year, and 13% versus the previous quarter. Our ongoing
efforts to diligently manage near-term currency, inflation and
supply chain challenges allowed us to maintain our gross margin
compared to last quarter and increase by 140 basis points versus
the same period last year. To offset supply chain inflation and
continue gross profit expansion, we are currently executing the
necessary cost reductions and operational improvements that we
believe will allow us to achieve our near-term target of gross
margin exceeding 20% and EBITDA margins of 10%.
"We saw our core product lines well-positioned to allow us to
take advantage of the overall strength within the industrial goods
market during the quarter. As of the end of the June quarter,
backlog for our European Group, primarily consisting of our PM
global knuckleboom business, was up 133 percent compared to the
same period last year. Going forward, we are confident that
revenues contributed by PM will continue growing as a percentage of
our total enterprise revenues, through ongoing dealer development
and new product enhancements, as well as our important partnership
with Tadano, particularly in Asia and the Middle East.
"On the straight mast side, as we previously reported, we
experienced a spike in order rate at the beginning of the year
which has since moderated, and the total industry volume was
approximately 800 units for the first half of the year, a healthy
level, still below peak with potential to continue to go
higher. 65% of our backlog is comprised of cranes with
ratings of 30 tons and higher being driven by activity within the
energy, utility, infrastructure and general rental segments.
"Going forward, we remain focused on operational execution,
revenue expansion, and new product development, and we are working
hard to increase value for our customers, shareholders, employees
and other stakeholders,” concluded Mr. Kiefer.
Other Matters:As previously
disclosed, the Company has received an inquiry from the SEC
requesting certain information in connection with the Company’s
recently completed restatement of prior financial statements and is
continuing to comply with such request.
Conference
Call:
Management will host a conference call at 4:30 PM Eastern Time
today to discuss the results with the investment community. Anyone
interested in participating in the call should dial 800-949-2175 if
calling within the United States or 323-994-2132 if calling
internationally. A replay will be available until August 14, 2018,
which can be accessed by dialing 844-512-2921 if calling within the
United States, or 412-317-6671 if calling internationally. Please
use passcode 1055909 to access the replay. The call will
additionally be broadcast live and archived for 90 days over the
internet with accompanying slides, accessible at the investor
relations portion of the Company's corporate website,
www.manitexinternational.com/eventspresentations.aspx.
Non-GAAP Financial Measures
and Other Items
Results of operations reflect continuing
operations. All per share amounts are on a fully diluted basis. In
this press release, Manitex refers to various non-GAAP (U.S.
generally accepted accounting principles) financial measures which
management uses to evaluate operating performance, to establish
internal budgets and targets, and to compare the Company’s
financial performance against such budgets and targets. These
non-GAAP measures, as defined by the Company, may not be comparable
to similarly titled measures being disclosed by other companies.
While adjusted financial measures are not intended to replace any
presentation included in our consolidated financial statements
under generally accepted accounting principles (GAAP) and should
not be considered an alternative to operating performance or an
alternative to cash flow as a measure of liquidity, we believe
these measures are useful to investors in assessing our operating
results, capital expenditure and working capital requirements and
the ongoing performance of its underlying businesses. The
amounts described below are unaudited, are reported in thousands of
U.S. dollars, and are as of, for three month period ended June 30,
2018 and June 30, 2017, unless otherwise indicated. A
reconciliation of Adjusted GAAP financial measures for the three
month periods ended June 30, 2018 and 2017 is included with this
press release below and with the Company's related Form 8-K.
About Manitex International,
Inc.
Manitex International, Inc. is a leading
worldwide provider of highly engineered specialized equipment
including boom truck, truck and knuckle boom cranes. Our products,
which are manufactured in facilities located in the USA and Italy,
are targeted to selected niche markets where their unique designs
and engineering excellence fill the needs of our customers and
provide a competitive advantage. We have consistently added
to our portfolio of branded products and equipment both through
internal development and focused acquisitions to diversify and
expand our sales and profit base while remaining committed to our
niche market strategy. Our brands include Manitex, PM,
O&S, Badger, Sabre, and Valla.
Forward-Looking Statements
Safe Harbor Statement under the U.S. Private
Securities Litigation Reform Act of 1995: This release contains
statements that are forward-looking in nature which express the
beliefs and expectations of management including statements
regarding the Company’s expected results of operations or
liquidity; statements concerning projections, predictions,
expectations, estimates or forecasts as to our business, financial
and operational results and future economic performance; and
statements of management’s goals and objectives and other similar
expressions concerning matters that are not historical facts.
In some cases, you can identify forward-looking statements by
terminology such as “anticipate,” “estimate,” “plan,” “project,”
“continuing,” “ongoing,” “expect,” “we believe,” “we intend,”
“may,” “will,” “should,” “could,” and similar expressions. Such
statements are based on current plans, estimates and expectations
and involve a number of known and unknown risks, uncertainties and
other factors that could cause the Company's future results,
performance or achievements to differ significantly from the
results, performance or achievements expressed or implied by such
forward-looking statements. These factors and additional
information are discussed in the Company's filings with the
Securities and Exchange Commission and statements in this release
should be evaluated in light of these important factors. Although
we believe that these statements are based upon reasonable
assumptions, we cannot guarantee future results. Forward-looking
statements speak only as of the date on which they are made, and
the Company undertakes no obligation to update publicly or revise
any forward-looking statement, whether as a result of new
information, future developments or otherwise.
|
|
Company
Contact |
|
Manitex International,
Inc. |
Darrow Associates
Inc. |
Steve Kiefer |
Peter Seltzberg,
Managing Director |
President and Chief
Operating Officer |
Investor
Relations |
(708) 237-2065 |
(516) 419-9915 |
skiefer@manitex.com |
pseltzberg@darrowir.com |
|
|
MANITEX INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except share and per share
data)
|
|
|
|
|
|
|
June 30, 2018 |
|
December 31, 2017 |
|
|
Unaudited |
|
Unaudited |
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash |
|
$ |
20,630 |
|
|
$ |
5,014 |
|
Cash -
restricted |
|
|
308 |
|
|
|
352 |
|
Marketable equity securities |
|
|
6,253 |
|
|
|
— |
|
Trade
receivables (net) |
|
|
47,607 |
|
|
|
46,633 |
|
Other
receivables |
|
|
2,898 |
|
|
|
1,946 |
|
Inventory
(net) |
|
|
69,154 |
|
|
|
54,360 |
|
Prepaid
expense and other |
|
|
2,369 |
|
|
|
2,017 |
|
Total current assets |
|
|
149,219 |
|
|
|
110,322 |
|
Total
fixed assets, net of accumulated depreciation of $13,870 and
$12,921 for June 30, 2018 and December 31, 2017, respectively |
|
|
20,850 |
|
|
|
22,038 |
|
Intangible assets (net) |
|
|
29,042 |
|
|
|
31,014 |
|
Goodwill |
|
|
42,654 |
|
|
|
43,569 |
|
Equity
investment in ASV Holdings, Inc. |
|
|
— |
|
|
|
14,931 |
|
Other
long-term assets |
|
|
1,270 |
|
|
|
1,475 |
|
Deferred
tax asset |
|
|
1,839 |
|
|
|
1,839 |
|
Total assets |
|
$ |
244,874 |
|
|
$ |
225,188 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current
liabilities |
|
|
|
|
Notes
payable |
|
$ |
24,263 |
|
|
$ |
29,131 |
|
Current
portion of capital lease obligations |
|
|
398 |
|
|
|
378 |
|
Accounts
payable |
|
|
46,183 |
|
|
|
35,386 |
|
Accounts
payable related parties |
|
|
475 |
|
|
|
1,331 |
|
Accrued
expenses |
|
|
9,570 |
|
|
|
10,070 |
|
Customer
deposits |
|
|
2,556 |
|
|
|
2,242 |
|
Other
current liabilities |
|
|
142 |
|
|
|
890 |
|
Total current liabilities |
|
|
83,587 |
|
|
|
79,428 |
|
Long-term
liabilities |
|
|
|
|
Revolving
term credit facilities |
|
|
— |
|
|
|
12,893 |
|
Notes
payable (net) |
|
|
26,827 |
|
|
|
26,656 |
|
Capital
lease obligations, (net of current portion) |
|
|
5,279 |
|
|
|
5,483 |
|
Convertible note related party (net) |
|
|
7,080 |
|
|
|
7,005 |
|
Convertible note (net) |
|
|
14,419 |
|
|
|
14,310 |
|
Deferred
gain on sale of property |
|
|
906 |
|
|
|
969 |
|
Deferred
tax liability |
|
|
3,558 |
|
|
|
3,384 |
|
Other
long-term liabilities |
|
|
3,883 |
|
|
|
4,215 |
|
Total long-term liabilities |
|
|
61,952 |
|
|
|
74,915 |
|
Total liabilities |
|
|
145,539 |
|
|
|
154,343 |
|
Commitments and
contingencies |
|
|
|
|
Equity |
|
|
|
|
Preferred
Stock—Authorized 150,000 shares, no shares issued or outstanding
at June 30, 2018 and December 31, 2017 |
|
|
— |
|
|
|
— |
|
Common
Stock—no par value 25,000,000 shares authorized, 19,606,518 and
16,617,932 shares issued and outstanding |
|
|
|
|
|
|
|
|
at
June 30, 2018 and December 31, 2017, respectively |
|
|
130,083 |
|
|
|
97,661 |
|
Paid in
capital |
|
|
2,708 |
|
|
|
2,802 |
|
Retained
deficit |
|
|
(31,035 |
) |
|
|
(28,583 |
) |
Accumulated other comprehensive loss |
|
|
(2,421 |
) |
|
|
(1,035 |
) |
Total equity |
|
|
99,335 |
|
|
|
70,845 |
|
Total liabilities and equity |
|
$ |
244,874 |
|
|
$ |
225,188 |
|
|
|
|
|
|
MANITEX INTERNATIONAL, INC.CONSOLIDATED
STATEMENTS OF OPERATIONS(In thousands, except for
share and per share amounts)
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
Net revenues |
|
$ |
63,904 |
|
|
$ |
52,051 |
|
|
$ |
120,579 |
|
|
$ |
92,170 |
|
Cost of sales |
|
|
51,463 |
|
|
|
42,647 |
|
|
|
97,038 |
|
|
|
75,374 |
|
Gross profit |
|
|
12,441 |
|
|
|
9,404 |
|
|
|
23,541 |
|
|
|
16,796 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research
and development costs |
|
|
726 |
|
|
|
596 |
|
|
|
1,378 |
|
|
|
1,283 |
|
Selling,
general and administrative expenses |
|
|
9,008 |
|
|
|
8,574 |
|
|
|
18,994 |
|
|
|
17,515 |
|
Total operating expenses |
|
|
9,734 |
|
|
|
9,170 |
|
|
|
20,372 |
|
|
|
18,798 |
|
Operating income (loss) |
|
|
2,707 |
|
|
|
234 |
|
|
|
3,169 |
|
|
|
(2,002 |
) |
Other (expense)
income |
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(1,503 |
) |
|
|
(1,574 |
) |
|
|
(3,056 |
) |
|
|
(2,782 |
) |
Change in
fair value of securities held |
|
|
(1,588 |
) |
|
|
— |
|
|
|
(1,401 |
) |
|
|
— |
|
Foreign
currency transaction loss |
|
|
(106 |
) |
|
|
(256 |
) |
|
|
(225 |
) |
|
|
(339 |
) |
Interest
income and other (loss) income |
|
|
29 |
|
|
|
70 |
|
|
|
(325 |
) |
|
|
343 |
|
Total other expense |
|
|
(3,168 |
) |
|
|
(1,760 |
) |
|
|
(5,007 |
) |
|
|
(2,778 |
) |
Income (loss) before income taxes and income (loss)
in equity interest from continuing operations |
|
|
(461 |
) |
|
|
(1,526 |
) |
|
|
(1,838 |
) |
|
|
(4,780 |
) |
Income tax expense (benefit) from continuing operations |
|
|
506 |
|
|
|
(36 |
) |
|
|
205 |
|
|
|
135 |
|
Loss on equity
investments (including loss on sale of shares) |
|
|
— |
|
|
|
— |
|
|
|
(409 |
) |
|
|
— |
|
Net loss from continuing operations |
|
|
(967 |
) |
|
|
(1,490 |
) |
|
|
(2,452 |
) |
|
|
(4,915 |
) |
Discontinued
operations |
|
|
|
|
|
|
|
|
Loss from
operations of discontinued operations (including loss on
disposal for the three and six months 2017 of
$1,133) |
|
|
— |
|
|
|
(805 |
) |
|
|
— |
|
|
|
(573 |
) |
Income
tax benefit |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
(13 |
) |
Loss from
discontinued operations |
|
|
— |
|
|
|
(811 |
) |
|
|
— |
|
|
|
(560 |
) |
Net loss |
|
|
(967 |
) |
|
|
(2,301 |
) |
|
|
(2,452 |
) |
|
|
(5,475 |
) |
Net income attributable
to noncontrolling interest from discontinued operations |
|
|
— |
|
|
|
(160 |
) |
|
|
— |
|
|
|
(274 |
) |
Net loss attributable to shareholders of Manitex
International, Inc. |
|
$ |
(967 |
) |
|
$ |
(2,461 |
) |
|
$ |
(2,452 |
) |
|
$ |
(5,749 |
) |
Earnings (loss)
Per Share |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Earnings
(loss) from continuing operations attributable to shareholders of
Manitex International, Inc. |
|
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.30 |
) |
Loss from
discontinued operations attributable to shareholders of Manitex
International, Inc. |
|
$ |
— |
|
|
$ |
(0.06 |
) |
|
$ |
— |
|
|
$ |
(0.05 |
) |
Net
earnings (loss) attributable to shareholders of Manitex
International, Inc. |
|
$ |
(0.05 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.35 |
) |
Diluted |
|
|
|
|
|
|
|
|
Earnings
(loss) from continuing operations attributable to
shareholders of Manitex International, Inc. |
|
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.30 |
) |
Loss from
discontinued operations attributable to shareholders of Manitex
International, Inc. |
|
$ |
— |
|
|
$ |
(0.06 |
) |
|
$ |
— |
|
|
$ |
(0.05 |
) |
Net
earnings (loss) attributable to shareholders of Manitex
International, Inc. |
|
$ |
(0.05 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.35 |
) |
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
17,734,383 |
|
|
|
16,553,667 |
|
|
|
17,200,660 |
|
|
|
16,512,061 |
|
Diluted |
|
|
17,734,383 |
|
|
|
16,553,667 |
|
|
|
17,200,660 |
|
|
|
16,512,061 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Operating Income
(Loss) from Continuing Operations to Adjusted EBITDA (in
thousands)
|
Three Months Ended |
Six Months Ended |
|
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2017 |
Operating income (loss) |
$2,707 |
$234 |
$3,169 |
($2,002) |
Adjustments related to restatement, restructuring, discontinued
model, restricted stock, and other expenses |
1,196 |
397 |
3,138 |
1,416 |
Adjusted operating income (loss) |
3,903 |
631 |
6,307 |
(586) |
Depreciation and amortization |
1,258 |
1,165 |
2,551 |
2,688 |
Adjusted EBITDA |
$5,161 |
$1,796 |
$8,858 |
$2,102 |
Adjusted EBITDA % to sales |
8.1% |
3.5% |
7.3% |
2.3% |
|
|
|
|
|
Reconciliation of GAAP Net Income (Loss)
From Continuing Operations Attributable to Shareholders of Manitex
International to Adjusted Net Income (Loss) From continuing
Operations Attributable to Shareholders of Manitex International
(in thousands)
|
Three Months Ended |
Six Months Ended |
|
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2017 |
Net Income (Loss) from continuing operations attributable to
shareholders |
($967) |
($1,490) |
($2,452) |
($4,915) |
Adjustments related to restatement, restructuring, discontinued
model, restricted stock, foreign exchange, change in fair value of
securities and other expenses |
2,859 |
533 |
5,132 |
1,635 |
Adjusted Net Income (Loss) from continuing operations attributable
to shareholders |
1,892 |
(957) |
2,680 |
(3,280) |
Weighted diluted shares outstanding |
17,734,383 |
16,553,667 |
17,200,660 |
16,512,061 |
Diluted (loss) per share attributable to shareholders as
reported |
($0.05) |
($0.09) |
($0.14) |
($0.30) |
Total EPS effect |
$0.16 |
$0.03 |
$0.30 |
$0.10 |
Adjusted diluted income (loss) per share attributable to
shareholders |
$0.11 |
($0.06) |
$0.16 |
($0.20) |
|
|
|
|
|
Foreign Exchange, Restatement, Restructuring, Restricted
Stock and other Expenses
|
Three Months Ended |
Six Months Ended |
Pre-tax adjustments |
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2017 |
Restatement expenses |
$626 |
- |
$1,823 |
- |
Foreign exchange |
106 |
256 |
225 |
339 |
Discontinued model |
188 |
|
188 |
|
Restructuring |
74 |
301 |
654 |
574 |
Restricted stock |
268 |
96 |
391 |
325 |
Change in fair market value of securities, and other expenses |
1,628 |
|
2,245 |
517 |
Total |
$2,890 |
$653 |
$5,526 |
$1,755 |
|
|
|
|
|
Backlog from Continuing
Operations
Backlog is defined as purchase orders that have
been received by the Company. The disclosure of backlog aids in the
analysis the Company’s customers’ demand for product, as well as
the ability of the Company to meet that demand. Backlog is not
necessarily indicative of sales to be recognized in a specified
future period.
|
|
|
|
|
|
|
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 |
Backlog |
$75,601 |
$87,860 |
$61,530 |
$50,281 |
$47,554 |
Change Versus Current Period |
|
(14.0%) |
22.9% |
50.4% |
59.0% |
|
|
|
|
|
|
Net Debt is calculated using
the Condensed Consolidated Balance Sheet amounts for current and
long term portion of long term debt, capital lease obligations,
notes payable, convertible notes and revolving credit facilities
minus cash.
|
June 30, 2018 |
December 31, 2017 |
Cash |
$27,191 |
$5,366 |
|
|
|
Notes payable - short term |
$24,263 |
$29,131 |
Current portion of capital leases |
398 |
378 |
Revolving term credit facilities |
0 |
12,893 |
Notes payable - long term |
26,827 |
26,656 |
Capital lease obligations |
5,279 |
5,483 |
Convertible notes |
21,499 |
21,315 |
Total debt |
$78,266 |
$95,856 |
Net Debt |
51,075 |
90,490 |
|
|
|
Manitex (NASDAQ:MNTX)
Historical Stock Chart
From Apr 2024 to May 2024
Manitex (NASDAQ:MNTX)
Historical Stock Chart
From May 2023 to May 2024