BRIDGEVIEW, Ill., May 09, 2018 (GLOBE NEWSWIRE) -- Manitex International, Inc. (Nasdaq:MNTX), a leading international provider of truck and knuckle boom cranes, today announced First Quarter 2018 results. Net revenues for the first quarter were $56.7 million, compared to $40.1 million in the prior year’s period*, and net loss from continuing operations attributable to shareholders of Manitex was $(1.5) million, or $(0.09) per share, compared to a net loss from continuing operations attributable to shareholders of Manitex of $(3.3) million, or $(0.21) per share, in the first quarter of 2017*. Adjusted net income** from continuing operations in the first quarter 2018 was $0.8 million, or $0.05 per share, compared to adjusted net loss of $(2.3) million, or $(0.14) per share, for the first quarter of 2017*.
Highlights (versus prior year, unless otherwise noted):
- Net revenues of $56.7 million, up 41.3%
- Adjusted EBITDA** increased to $3.7 million, or 6.5% of sales, from $0.3 million, or 0.8% of sales
- Adjusted earnings per share** improved to $0.05 compared to an adjusted loss per share of $(0.14)
- Backlog increased $26 million to $88 million, representing growth of 43% year to date, and 75% from September 30, 2017
- First quarter book to bill ratio increased to 1.44 vs 1.25 for the fourth quarter of 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.
“In the quarter we saw a 41% improvement in sales, driven by strengthening global demand across our product lines and geographies, led by Manitex straight-mast cranes, where we estimate our market share has risen from 39% at the end of last year, to over 50%,” commented David J. Langevin, Chief Executive Officer of Manitex. “Gross margins were closer to our 20%-plus target, but legal and accounting expenses of approximately $1.0 million related to our restatements were a significant drain of earnings and an offset to the benefits of the sales increase and other improvements to margins and produced a net loss for the quarter. A backlog of over $85 million and continued positive order flow in April gives us visibility for higher sales throughout the year, and we’re targeting significant gross and EBITDA margin improvements as well. We are positioned to benefit from manufacturing throughput and efficiency gains, as well as repricing actions already implemented to offset steel cost increases, to get us to sustainable profitability, with EBITDA margins of 10%, likely by the end of the year. Recovery fundamentals in the industrial equipment market and for our company look strong, and we’re working hard to take advantage of the opportunities that are available to us.”
Steve Kiefer, President and Chief Operating Officer of Manitex stated, “During the first-quarter of 2018, we saw an increase in orders, industry activity and market share in each of our key product categories. Our book to bill ratio in the first quarter increased to 1.44 versus 1.25 in the fourth quarter of 2017, and orders for our PM knuckle-boom cranes again represented a significant portion of our growing backlog. From a product and end-market perspective, the recovery in the straight mast crane market strengthened during the first quarter with industry orders reaching a level not observed since the 2012 – 2014 period, and early indications are that the trend is continuing into Q2. We also began initial shipments of the A62 truck mounted aerial work platform and trolley boom loader during the quarter.”
Outlook:
Based on the current visibility and production plans the company anticipates revenues in the second quarter in the range of $60 million to $65 million with EBITDA margins in the range of 8.0% to 8.5%, with sales and margins continuing to expand throughout the year.
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 800-289-0438 if calling within the United States or 323-794-2423 if calling internationally. A replay will be available until May 16, 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 8829959 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 March 31, 2018 and March 31, 2017, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three month periods ended March 31, 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. | ||
| David Langevin | Peter Seltzberg, Managing Director | ||
| Chairman and Chief Executive Officer | Investor Relations | ||
| (708) 237-2060 | (516) 419-9915 | ||
| dlangevin@manitex.com | pseltzberg@darrowir.com | ||
MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| March 31, 2018 | December 31, 2017 | |||||||
| Unaudited | Unaudited | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 2,177 | $ | 5,014 | ||||
| Cash - restricted | 325 | 352 | ||||||
| Marketable equity securities | 7,841 | — | ||||||
| Trade receivables (net) | 49,645 | 46,633 | ||||||
| Other receivables | 3,462 | 1,946 | ||||||
| Inventory (net) | 64,168 | 54,360 | ||||||
| Prepaid expense and other | 2,743 | 2,017 | ||||||
| Total current assets | 130,361 | 110,322 | ||||||
| Total fixed assets, net of accumulated depreciation of $13,624 and $12,921 for March 31, 2018 and December 31, 2017, respectively | 21,898 | 22,038 | ||||||
| Intangible assets (net) | 30,847 | 31,014 | ||||||
| Goodwill | 44,359 | 43,569 | ||||||
| Equity investment in ASV Holdings, Inc. | — | 14,931 | ||||||
| Other long-term assets | 1,473 | 1,475 | ||||||
| Deferred tax asset | 1,839 | 1,839 | ||||||
| Total assets | $ | 230,777 | $ | 225,188 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Notes payable | $ | 25,877 | $ | 29,131 | ||||
| Current portion of capital lease obligations | 388 | 378 | ||||||
| Accounts payable | 45,875 | 35,386 | ||||||
| Accounts payable related parties | 92 | 1,331 | ||||||
| Accrued expenses | 9,842 | 10,070 | ||||||
| Customer deposits | 2,622 | 2,242 | ||||||
| Other current liabilities | 259 | 890 | ||||||
| Total current liabilities | 84,955 | 79,428 | ||||||
| Long-term liabilities | ||||||||
| Revolving term credit facilities | 12,480 | 12,893 | ||||||
| Notes payable (net) | 28,042 | 26,656 | ||||||
| Capital lease obligations, (net of current portion) | 5,382 | 5,483 | ||||||
| Convertible note related party (net) | 7,043 | 7,005 | ||||||
| Convertible note (net) | 14,365 | 14,310 | ||||||
| Deferred gain on sale of property | 937 | 969 | ||||||
| Deferred tax liability | 3,381 | 3,384 | ||||||
| Other long-term liabilities | 4,120 | 4,215 | ||||||
| Total long-term liabilities | 75,750 | 74,915 | ||||||
| Total liabilities | 160,705 | 154,343 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at March 31, 2018 and December 31, 2017 | — | — | ||||||
| Common Stock—no par value 25,000,000 shares authorized, 16,668,986 and 16,617,932 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 98,081 | 97,661 | ||||||
| Paid in capital | 2,458 | 2,802 | ||||||
| Retained deficit | (30,068 | ) | (28,583 | ) | ||||
| Accumulated other comprehensive loss | (399 | ) | (1,035 | ) | ||||
| Equity attributable to shareholders of Manitex International, Inc. | 70,072 | 70,845 | ||||||
| Total equity | 70,072 | 70,845 | ||||||
| Total liabilities and equity | $ | 230,777 | $ | 225,188 | ||||
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| Unaudited | Unaudited | |||||||
| Net revenues | $ | 56,675 | $ | 40,119 | ||||
| Cost of sales | 45,575 | 32,727 | ||||||
| Gross profit | 11,100 | 7,392 | ||||||
| Operating expenses | ||||||||
| Research and development costs | 652 | 687 | ||||||
| Selling, general and administrative expenses | 9,986 | 8,941 | ||||||
| Total operating expenses | 10,638 | 9,628 | ||||||
| Operating income (loss) | 462 | (2,236 | ) | |||||
| Other (expense) income | ||||||||
| Interest expense: | ||||||||
| Interest expense | (1,553 | ) | (1,208 | ) | ||||
| Change in fair value of securities held | 187 | — | ||||||
| Foreign currency transaction loss | (119 | ) | (83 | ) | ||||
| Other (loss) income | (354 | ) | 273 | |||||
| Total other expense | (1,839 | ) | (1,018 | ) | ||||
| Income (loss) before income taxes and income (loss) in equity interest from continuing operations | (1,377 | ) | (3,254 | ) | ||||
| Income tax expense (benefit) from continuing operations | (301 | ) | 171 | |||||
| Loss on equity investments (including loss on sale of shares) | (409 | ) | — | |||||
| Net loss from continuing operations | (1,485 | ) | (3,425 | ) | ||||
| Discontinued operations | ||||||||
| Loss from operations of discontinued operations | — | 232 | ||||||
| Income tax benefit | — | (19 | ) | |||||
| Loss from discontinued operations | — | 251 | ||||||
| Net loss | (1,485 | ) | (3,174 | ) | ||||
| Net income attributable to noncontrolling interest from discontinued operations | — | (114 | ) | |||||
| Net loss attributable to shareholders of Manitex International, Inc. | $ | (1,485 | ) | $ | (3,288 | ) | ||
| Earnings (loss) Per Share | ||||||||
| Basic | ||||||||
| Earnings (loss) from continuing operations attributable to shareholders of Manitex International, Inc. | $ | (0.09 | ) | $ | (0.21 | ) | ||
| Loss from discontinued operations attributable to shareholders of Manitex International, Inc. | $ | - | $ | 0.01 | ||||
| Net earnings (loss) attributable to shareholders of Manitex International, Inc. | $ | (0.09 | ) | $ | (0.20 | ) | ||
| Diluted | ||||||||
| Earnings (loss) from continuing operations attributable to shareholders of Manitex International, Inc. | $ | (0.09 | ) | $ | (0.21 | ) | ||
| Loss from discontinued operations attributable to shareholders of Manitex International, Inc. | $ | - | $ | 0.01 | ||||
| Net earnings (loss) attributable to shareholders of Manitex International, Inc. | $ | (0.09 | ) | $ | (0.20 | ) | ||
| Weighted average common shares outstanding | ||||||||
| Basic | 16,666,937 | 16,559,343 | ||||||
| Diluted | 16,666,937 | 16,559,343 | ||||||
Reconciliation of GAAP Operating Income (Loss) from Continuing Operations to Adjusted EBITDA (in thousands)
| Three Months Ended | ||||||
| March 31, 2018 | March 31, 2017 | |||||
| Operating income (loss) | $462 | ($2,236) | ||||
| Adjustments related to restatement, restructuring, tradeshow, restricted stock, and other expenses | 1,942 | 1,019 | ||||
| Adjusted operating income (loss) | 2,404 | (1,217) | ||||
| Depreciation and amortization | 1,293 | 1,523 | ||||
| Adjusted EBITDA | $3,697 | $306 | ||||
| Adjusted EBITDA % to sales | 6.5% | 0.8% | ||||
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 | ||||||
| March 31, 2018 | March 31, 2017 | |||||
| Net Income (Loss) from continuing operations attributable to shareholders | ($1,485) | ($3,425) | ||||
| Adjustments related to restatement, restructuring, tradeshow, restricted stock, foreign exchange, and other expenses | 2,273 | 1,102 | ||||
| Adjusted Net Income (Loss) from continuing operations attributable to shareholders | 788 | (2,323) | ||||
| Weighted diluted shares outstanding | 16,666,937 | 16,559,343 | ||||
| Diluted (loss) per share attributable to shareholders as reported | ($0.09) | ($0.21) | ||||
| Total EPS effect | $0.14 | $0.07 | ||||
| Adjusted diluted income (loss) per share attributable to shareholders | $0.05 | ($0.14) | ||||
Foreign Exchange, Restatement, Restructuring, Restricted Stock and other Expenses
| Three Months Ended | ||||
| Pre-tax adjustments | March 31, 2018 | March 31, 2017 | ||
| Restatement expenses | $1,197 | - | ||
| Foreign exchange | 119 | 83 | ||
| Trade show expenses (tri-annual only) | - | 517 | ||
| Restructuring | 580 | 273 | ||
| Restricted stock | 123 | 229 | ||
| Loss on equity investment (incl. sale of shares), change in fair market value of securities, and other expenses | 617 | |||
| Total | $2,636 | $1,102 | ||
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 of 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.
| March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||
| Backlog | $87,860 | $61,530 | $50,281 | $47,554 | $51,237 | |||||||||
| Change Versus Current Period | 42.8% | 74.7% | 84.8% | 71.5% | ||||||||||
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.
| March 31, 2018 | December 31, 2017 | |||
| Cash | $2,502 | $5,366 | ||
| Notes payable - short term | $25,877 | $29,131 | ||
| Current portion of capital leases | 388 | 378 | ||
| Revolving term credit facilities | 12,480 | 12,893 | ||
| Notes payable - long term | 28,042 | 26,656 | ||
| Capital lease obligations | 5,382 | 5,483 | ||
| Convertible notes | 21,408 | 21,315 | ||
| Total debt | $93,577 | $95,856 | ||
| Net Debt | 91,075 | 90,490 | ||