Manitex International, Inc. Reports Third Quarter 2017 Results and Selected Restated Prior Period Results

BRIDGEVIEW, Ill., Feb. 06, 2018 (GLOBE NEWSWIRE) -- Manitex International, Inc. (Nasdaq:MNTX), a leading international provider of truck and knuckle boom cranes, today announced Third Quarter 2017 results.  Net revenues for the third quarter were $56.5 million compared to $39.1 million in the prior year’s period and GAAP net loss attributable to shareholders of Manitex International was $(1.5) million, or $(0.09) per share compared to a net loss attributable to shareholders of Manitex International of $(23.4) million, or $(1.45) per share in the third quarter of 2016.  Adjusted net income* was $1.2 million or $0.07 per share for third quarter 2017, compared to adjusted net loss of $(3.1) million or $(0.19) per share for third quarter 2016. 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 previously announced restatement of such periods. Manitex International plans to file amended reports with the SEC covering all periods affected by the restatement, as well as its quarterly report on Form 10-Q for the quarter ended September 30, 2017.

Third Quarter 2017 Financial Highlights:

• Net revenues grew 44.5% to $56.5 million from $39.1 million in the third quarter of 2016.
• Adjusted operating income was $2.9 million for Q3 2017, compared to an operating loss of $(1.8) million in Q3 2016.
  
• Adjusted net income from continuing operations attributable to shareholders swung to a profit of $1.2 million, or $0.07 per share for the third quarter of 2017, compared to adjusted net loss from continuing operations attributable to shareholders of $(3.1) million or $(0.19) per share for the third quarter of 2016.
• Adjusted EBITDA* was $4.2 million, or 7.4% of sales, for the third quarter of 2017 compared to adjusted EBITDA of $(0.3) million for the third quarter of 2016.
• Achieved cost reductions of $1.8 million for the quarter.
• Backlog of $50.3 million, represents a 60.8% increase from December 31, 2016, and an increase of 5.7% from June 30, 2017.

*Adjusted Numbers are discussed in greater detail under “Non-GAAP Financial Measures and Other Items” at the end of this release.

Subsequent to the end of the Third Quarter:

• 2017 fourth quarter sales were $64.5 million and backlog as of 12/31/17 was $61.5 million an increase of 22.3% from Q3 2017.
• Backlog increased to $81.3 million as of January 26, 2018, an increase of 32% versus year-end 2017.

David Langevin, Chairman and Chief Executive Officer of Manitex International, commented, “We are glad to finally be reporting our third quarter results and the numbers reflect an accelerating recovery in our markets that we first noted in early 2017. We continue to see excellent opportunities throughout our primary product groups and expect to continue to add production and deliveries to meet demand into the foreseeable future. While we believe our financial results reflect just the beginning of our turnaround, with good top-line growth, higher operating income, and a growing backlog, we expect to see a meaningful contribution of profits, cash flows, and returns for our shareholders in 2018 and beyond.”

Steve Kiefer, President and Chief Operating Officer of Manitex International, stated, “Manitex’s commitment to providing the market with world class products and brands in boom trucks and lifting equipment has never wavered and we’re in a very strong position today, globally with both our Manitex straight mast cranes and PM articulated mast cranes. The backlog has steadily grown throughout the back half of 2017 and into 2018, and we’re excited about the opportunity to reap the benefits as a market leader in a recovering market, which in our view, is still in a very early stage of growth. Continued strengthening of the straight-mast crane market has led the way with industry orders in the fourth quarter of 2017 increasing 70.6% versus the fourth quarter of 2016.”

Other Matters:

The previously announced investigation by the Company’s Audit Committee has been substantially completed.  Separately, the Company has received an informal inquiry from the SEC requesting certain information in connection with the Company’s previously announced restatement of prior financial statements, and is complying 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 800-239-9838 if calling within the United States or 323-794-2551 if calling internationally. A replay will be available until February 13, 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 6763263 to access the replay. The call will additionally be broadcast live and archived for 90 days over the internet, 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 believes provides useful information to investors. These non-GAAP measures, as defined by the Company, may not be comparable to similarly titled measures being disclosed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for net earnings, operating income and other consolidated earnings data prepared in accordance with GAAP or as a measure of our profitability.  A reconciliation of Adjusted GAAP financial measures for the three month periods ended September 30, 2016 and 2017 is included with this press release below and with the Company's related Form 8-K.

Management of Manitex International uses both GAAP and non–GAAP financial measures to evaluate operating performance, to establish internal budgets and targets, and to compare the Company’s financial performance against such budgets and targets. 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, or for the three month period ended September 30, 2017, unless otherwise indicated.

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.
David Langevin
Chairman and Chief Executive Officer
(708) 237-2060
dlangevin@manitex.com

Darrow Associates Inc.
Peter Seltzberg, Managing Director
Investor Relations
(516) 419-9915
pseltzberg@darrowir.com

MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)

Reconciliation of GAAP Operating Income (Loss) from Continuing Operations to Adjusted EBITDA (in thousands)  

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)

EPS Impact of Foreign Exchange, Inventory Reserves, Restructuring and Stock Option Expenses

After tax expense and per share amounts (Adjusted Net Income) are calculated using pre-tax amounts, applying a tax rate based on the jurisdictional tax rate to arrive at an after-tax amount. This number is divided by the weighted average diluted shares to provide the impact on earnings per share. The company assesses the impact of these items because when discussing earnings per share, the Company adjusts for items it believes are not reflective of operating activities in the periods.

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.

Current Ratio is calculated by dividing current assets by current liabilities (but excludes assets and liabilities from discontinued operations).

Days Sales Outstanding, (DSO), is calculated by taking the sum of net trade and related party receivables divided by adjusted annualized sales per day (sales for the quarter, multiplied by 4, and the sum divided by 365).

Days Payables Outstanding, (DPO), is calculated by taking the sum of net trade and related party payables divided by adjusted annualized cost of sales per day (cost of goods sold for the quarter, multiplied by 4, and the sum divided by 365).

Inventory turns are calculated by multiplying adjusted cost of goods sold for the referenced three month period by 4 and dividing that figure by inventory as at the referenced period.

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. Debt to Adjusted EBITDA ratio is calculated by dividing total debt at the balance sheet date by the trailing twelve month Adjusted EBITDA.

Interest Cover is calculated by dividing Adjusted EBITDA (GAAP Operating Income adjusted for acquisition transaction expense and restructuring related expense and other exceptional costs and depreciation and amortization) for the trailing twelve month period by cash interest expense.

Operating Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus inventories, less Accounts payable. The Company considers excessive working capital as an inefficient use of resources, and seeks to minimize the level of investment without adversely impacting the ongoing operations of the business.

Trailing Three Month Annualized Net Sales is calculated using the net sales for the quarter, multiplied by four.

Working capital is calculated as total current assets less total current liabilities (but excludes assets and liabilities from discontinued operations).