Manitex International, Inc. (Nasdaq:MNTX), a leading international
provider of truck and knuckle boom cranes and compact track
loaders, today announced Fourth Quarter and Full Year 2016
results.
Net revenues for the fourth quarter were $65.0 million compared
to $76.1 million in the prior year’s period and GAAP net loss
attributable to shareholders of Manitex International was $(14.3)
million, or $(0.88) per share compared to a net loss attributable
to shareholders of Manitex International of $(5.5) million, or
$(0.34) per share in the fourth quarter of 2015. The Company
reported a fourth quarter net loss from continuing operations
attributable to shareholders of Manitex International of $(7.0)
million or $(0.44) per share, compared to net loss from continuing
operations attributable to shareholders of Manitex International of
$(3.8) million or $(0.24) per share for the three months ended
December 31, 2015. Adjusted net income* of $0.3 million or $0.02
per share for the fourth quarter of 2016 compared to adjusted net
loss of $(2.1) million or $(0.13) for fourth quarter 2015.
Fourth Quarter 2016 Financial Highlights for Continuing
Operations:
- 91% increase in backlog to $51.9 million as of January 31,
2017, compared to $27.1 million at the end of the third quarter of
2016.
- Adjusted for divestitures, net sales improved sequentially from
$62.6 million in Q3 to $65.6 million in Q4, or 4.8%.
- Adjusted EBITDA* increased nearly 400 basis points to $4.4
million, or 6.8% of sales, for the fourth quarter of 2016 compared
to adjusted EBITDA of $2.2 million, or 2.9% of sales for the fourth
quarter of 2015.
- Adjusted gross margin* increased to 20.7% for the fourth
quarter 2016 compared to 16.8% in the fourth quarter of 2015.
- Adjusted net income* of $0.3 million or $0.02 per share for the
fourth quarter of 2016 compared to adjusted net loss of $(2.1)
million or $(0.13) for fourth quarter 2015.
- $25.3 million reduction in North American recourse debt in the
quarter.
- Cost reductions of $3.6 million achieved in the quarter and
$11.0 million for the full year represented 192% of 2016
target.
*Adjusted Numbers are defined in non-GAAP explanation at end of
this release.
Chairman and Chief Executive Officer, David Langevin commented,
“As we have consistently indicated throughout the year, demand in
the bulk of the industrial equipment markets we serve remained at
very low levels in 2016, which resulted in a drop-off in sales
throughout our product lines at Manitex. However, we have made
excellent progress in transforming the company, as we took steps
that would optimize our margin profile and reduce our debt. These
steps included the divestiture of CVS Ferrari and Liftking, the
continued rebuild of ASV, and cost reduction initiatives which
saved us nearly $11 million in 2016, ahead of plan for the second
consecutive year.
“These actions during the transitional year of 2016 have
positioned us well to take advantage of the strengthening backlog
which as we have reported, is up 91% since September, and give us
optimism that we can recapture what we estimate to be an
incremental $175 million in peak-level revenues in our remaining
crane businesses. As we scale up, and layer our production to
meet demand, we are targeting EBITDA margins in the 10%-plus range,
which is what we have historically experienced in the crane
business, unencumbered by the lower margin materials handling
businesses that are no longer part of the enterprise. We continue
to manage our growth conservatively, and not put undue stress on
our balance sheet, and are cautiously optimistic that we will see
improvements in our financial results as we gradually come out of a
multi-year cyclical downturn.”
“We enter 2017 a more focused company with an increasing global
presence in the mobile crane markets and anticipate improving
financial performance throughout 2017. We are currently planning
our straight-mast crane production out into the second half of this
year and retain a product portfolio that we believe is
well-positioned for a recovery in our niche markets.”
Segment Reporting |
|
|
Continuing Operations |
As Reported |
As Adjusted |
Q4 Segment Results |
Three Months Ended December
31 |
Three Months Ended December
31 |
$000 |
2016 |
2015 |
2016 |
2015 |
Consolidated |
|
|
|
|
Net Revenues |
64,979 |
|
76,139 |
|
65,617 |
|
76,139 |
|
Operating Income |
(3,033 |
) |
(1,879 |
) |
1,802 |
|
(534 |
) |
Operating Margin % |
-4.7 |
% |
-2.5 |
% |
2.7 |
% |
-0.7 |
% |
Lifting Segment |
|
|
|
|
Net Revenues |
37,204 |
|
48,732 |
|
37,502 |
|
48,732 |
|
Operating Income |
(1,061 |
) |
72 |
|
2,058 |
|
1,087 |
|
Operating Margin % |
-2.9 |
% |
0.1 |
% |
5.5 |
% |
2.2 |
% |
ASV Segment |
|
|
|
|
Net Revenues |
25,051 |
|
25,773 |
|
25,051 |
|
25,773 |
|
Operating Income |
1,226 |
|
176 |
|
1,696 |
|
176 |
|
Operating Margin % |
4.9 |
% |
0.7 |
% |
6.8 |
% |
0.7 |
% |
Equipment Distribution Segment |
|
|
|
|
Net Revenues |
3,693 |
|
2,853 |
|
4,033 |
|
2,853 |
|
Operating Income |
(1,325 |
) |
(146 |
) |
(723 |
) |
(146 |
) |
Operating Margin % |
-35.9 |
% |
-5.1 |
% |
-17.9 |
% |
-5.1 |
% |
Corporate & Eliminations |
|
|
|
|
Revenue eliminations |
969 |
|
1,219 |
|
969 |
|
1,219 |
|
Corporate charges & inter segment profit in
inventory |
1,873 |
|
1,981 |
|
1,229 |
|
1,651 |
|
|
|
|
|
|
Continuing Operations |
As Reported |
As Adjusted |
Full Year Segment Results |
Full Year Ended December 31 |
Full Year Ended December 31 |
$000 |
2016 |
2015 |
2016 |
2015 |
Consolidated |
|
|
|
|
Net Revenues |
288,959 |
|
319,681 |
|
290,041 |
|
319,681 |
|
Operating (Loss) Income |
(1,715 |
) |
5,208 |
|
6,205 |
|
11,028 |
|
Operating Margin % |
-0.6 |
% |
1.6 |
% |
2.1 |
% |
3.4 |
% |
Lifting Segment |
|
|
|
|
Net Revenues |
172,405 |
|
193,436 |
|
172,964 |
|
193,436 |
|
Operating Income |
2,301 |
|
8,557 |
|
7,430 |
|
10,882 |
|
Operating Margin % |
1.3 |
% |
4.4 |
% |
4.3 |
% |
5.6 |
% |
ASV Segment |
|
|
|
|
Net Revenues |
103,803 |
|
116,935 |
|
103,803 |
|
116,935 |
|
Operating Income |
6,009 |
|
5,496 |
|
6,479 |
|
6,416 |
|
Operating Margin % |
5.8 |
% |
4.7 |
% |
6.2 |
% |
5.5 |
% |
Equipment Distribution Segment |
|
|
|
|
Net Revenues |
16,404 |
|
13,216 |
|
16,927 |
|
13,216 |
|
Operating (Loss) Income |
(2,893 |
) |
(136 |
) |
(2,398 |
) |
(136 |
) |
Operating Margin % |
-17.6 |
% |
-1.0 |
% |
-14.2 |
% |
-1.0 |
% |
Corporate & Eliminations |
|
|
|
|
Revenue eliminations |
3,653 |
|
3,906 |
|
3,653 |
|
3,906 |
|
Corporate charges & inter segment profit in
inventory |
7,132 |
|
8,709 |
|
5,306 |
|
6,134 |
|
|
|
|
|
|
(Narrative below relates to adjusted numbers per the table
above).
Lifting Segment Results
Fourth quarter 2016 revenue of $37.5 million was down $11.2
million, or 23%, year-over-year. Despite seeing an increase
in backlog in 2016, the orders were received too late in the
calendar year to allow units to be shipped. As a result, the
revenues reflect lower sales of Manitex and PM cranes. Operating
income of $2.1 million was 5.5% of revenue in fourth quarter 2016
versus operating income of $1.1 million which was 2.2% of revenue
in fourth quarter of 2015. Improved operating margin reflects
the impact of cost reductions taken in 2016.
Full Year 2016 revenue of $173.0 million was down $20.4 million,
or 10.6% over 2015. This is consistent with discussion throughout
the year of the loss of sales particularly in the energy
sector. Manitex straight mast and industrial cranes, and PM
knuckle boom crane sales were all lower during the year.
Additionally the mix of cranes reflected a large portion of lower
capacity units. Operating income of $7.4 million was 4.3% of
revenue in 2016 versus operating income of $10.8 million which was
5.6% of revenue in 2015. This decrease was a result of lower
volumes combined with an unfavorable mix of lower capacity
cranes.
ASV Segment Results
Fourth Quarter 2016 revenue of $25.0 million was down slightly
compared to fourth quarter 2015. ASV continued to expand the
ASV managed distribution throughout the quarter and focus on higher
capacity machine sales, which offset lower sales of undercarriages
to Caterpillar due to their reduced demand. Operating income of
$1.7 million, or 6.8% of revenue in fourth quarter of 2016 versus
operating income of $0.2 million, or 0.7% of revenue in fourth
quarter of 2015. This increase in profit was a result of a
full quarter of improved gross margins, a combination of selling
higher capacity machines, and improved net pricing into the ASV
managed distribution network and the benefit of cost reductions,
including reduced SG&A costs.
Full Year 2016 revenue of $103.8 million was down $13.1 million,
or 11.2% over 2015. While machine sales were down 6.4% in
2016, sales through ASV managed distribution continued to increase
and reached 70% compared to 44% in 2015. Sales of
undercarriages to Caterpillar were down 51%, or $9.8 million, and
were the major part of the total year over year revenue reduction.
Operating income of $6.5 million was 6.2% of revenue in 2016
versus operating income of $6.5 million which was 5.5% of revenue
in 2015. This increase in profit was a result of improved
gross margin as noted above, combined with lower SG&A
expenses.
Equipment Distribution Segment
Fourth Quarter 2016 revenue of $4.0 million was up $1.2 million
or 41.4% over fourth quarter 2015, with the increase primarily
related to used equipment sales and a slight increase in rental
income offset by a decrease in parts sales. Operating loss of
$(723,000) was (17.9)% of revenue in the fourth quarter of 2016
versus operating loss of $(146,000) which was (5.1)% of revenue in
the fourth quarter of 2015. The higher fourth quarter 2016
loss was a result of aggressive pricing related to the sale of used
equipment as the company sought to generate cash and decrease
debt.
Full Year 2016 revenue of $16.9 million was up $3.7 million, or
28.1% over 2015. The increase, as previously mentioned, was
primarily a result of used equipment sales as the company sought to
reduce used inventory on hand. We also saw a slight increase in
rental income offset by a reduction in part sales. Operating
loss of $(2.4) million was (14.2)% of revenue in 2016 versus
operating loss of $(136,000) which was (1.0)% of revenue in
2015. As previously noted, this increase in loss was a
primarily result of aggressive pricing related to the aggressive
sale of used equipment as the company sought to lower working
capital, generate cash and decrease debt.
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 1-888-684-1282
if calling within the United States or 913-312-1448 if calling
internationally. A replay will be available until March 13, 2017,
and can be accessed by dialing 844-512-2921 if calling within the
United States or 412-317-6671 if calling internationally. Please
use passcode 4831879 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.
About Manitex International, Inc.
Manitex International, Inc. is a leading worldwide provider of
highly engineered specialized equipment including boom trucks,
cranes, and other related industrial equipment. Our products, which
are manufactured in facilities located in the USA and Europe, 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, Badger, Sabre, and
Valla. ASV, our Joint Venture with Terex Corporation,
manufactures and sells a line of high quality compact track and
skid steer loaders.
Forward-Looking Statement
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.
|
MANITEX INTERNATIONAL, INC.CONSOLIDATED BALANCE
SHEETS(In thousands, except share and per share data) |
|
|
|
|
|
|
As of December 31, |
|
|
|
2016 |
|
|
2015 |
|
ASSETS |
|
Unaudited |
|
|
Unaudited |
|
Current
assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
5,110 |
|
|
$ |
5,918 |
|
Cash -
restricted |
|
|
1,308 |
|
|
|
— |
|
Trade
receivables (net) |
|
|
47,267 |
|
|
|
50,101 |
|
Accounts
receivable from related party |
|
|
501 |
|
|
|
388 |
|
Other
receivables |
|
|
1,332 |
|
|
|
1,743 |
|
Inventory
(net) |
|
|
90,901 |
|
|
|
99,846 |
|
Prepaid
expense and other |
|
|
4,745 |
|
|
|
4,393 |
|
Current
assets of discontinued operations |
|
|
— |
|
|
|
37,360 |
|
Total current assets |
|
|
151,164 |
|
|
|
199,749 |
|
Total
fixed assets (net) |
|
|
37,241 |
|
|
|
41,381 |
|
Intangible assets (net) |
|
|
56,809 |
|
|
|
63,675 |
|
Goodwill |
|
|
70,248 |
|
|
|
71,337 |
|
Other
long-term assets |
|
|
1,978 |
|
|
|
3,003 |
|
Deferred
tax asset |
|
|
545 |
|
|
|
216 |
|
Non-marketable equity investment |
|
|
— |
|
|
|
5,752 |
|
Long-term
assets of discontinued operations |
|
|
— |
|
|
|
16,310 |
|
Total assets |
|
$ |
317,985 |
|
|
$ |
401,423 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Notes
payable—short term |
|
$ |
27,408 |
|
|
$ |
27,212 |
|
Revolving
credit facilities |
|
|
— |
|
|
|
— |
|
Current
portion of capital lease obligations |
|
|
338 |
|
|
|
1,004 |
|
Accounts
payable |
|
|
45,778 |
|
|
|
53,601 |
|
Accounts
payable related parties |
|
|
4,373 |
|
|
|
1,611 |
|
Accrued
expenses |
|
|
16,658 |
|
|
|
17,708 |
|
Other
current liabilities |
|
|
2,150 |
|
|
|
2,030 |
|
Current
liabilities of discontinued operations |
|
|
— |
|
|
|
16,870 |
|
Total current liabilities |
|
|
96,705 |
|
|
|
120,036 |
|
Long-term
liabilities |
|
|
|
|
|
|
|
|
Revolving
term credit facilities |
|
|
35,562 |
|
|
|
38,872 |
|
Notes
payable |
|
|
49,986 |
|
|
|
64,174 |
|
Capital
lease obligations |
|
|
6,004 |
|
|
|
5,850 |
|
Convertible note-related party (net) |
|
|
6,862 |
|
|
|
6,737 |
|
Convertible note (net) |
|
|
14,098 |
|
|
|
13,923 |
|
Deferred
gain on sale of building |
|
|
1,058 |
|
|
|
1,288 |
|
Deferred
tax liability |
|
|
3,242 |
|
|
|
1,790 |
|
Other
long-term liabilities |
|
|
4,906 |
|
|
|
7,198 |
|
Long-term
liabilities of discontinued operations |
|
|
— |
|
|
|
11,255 |
|
Total long-term liabilities |
|
|
121,718 |
|
|
|
151,087 |
|
Total liabilities |
|
|
218,423 |
|
|
|
271,123 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preferred
Stock—Authorized 150,000 shares, no shares issued or outstanding
at December 31, 2016 and December 31, 2015 |
|
|
— |
|
|
|
— |
|
Common
Stock—no par value 25,000,000 shares authorized, 16,200,294 and
16,072,100 shares issued and outstanding at December 31, 2016
and December 31, 2015, respectively |
|
|
94,324 |
|
|
|
93,186 |
|
Paid in
capital |
|
|
2,918 |
|
|
|
2,630 |
|
Retained
earnings |
|
|
(18,572 |
) |
|
|
16,588 |
|
Accumulated other comprehensive loss |
|
|
(4,272 |
) |
|
|
(5,392 |
) |
Equity attributable to shareholders of Manitex
International, Inc. |
|
|
74,398 |
|
|
|
107,012 |
|
Equity
attributable to noncontrolling interest |
|
|
25,164 |
|
|
|
23,288 |
|
Total
equity |
|
|
99,562 |
|
|
|
130,300 |
|
Total liabilities and equity |
|
$ |
317,985 |
|
|
$ |
401,423 |
|
|
|
|
|
|
|
|
|
|
MANITEX INTERNATIONAL, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except share and per share
data) |
|
|
|
Three months ended December 31, |
|
|
Year ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Unaudited |
|
Unaudited |
|
|
Unaudited |
|
Unaudited |
Net
revenues |
|
$ |
64,979 |
|
|
$ |
76,139 |
|
|
|
$ |
288,959 |
|
|
$ |
319,681 |
|
Cost of
sales |
|
|
54,967 |
|
|
|
63,642 |
|
|
|
|
240,375 |
|
|
|
260,775 |
|
Gross profit |
|
|
10,012 |
|
|
|
12,497 |
|
|
|
|
48,584 |
|
|
|
58,906 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Research
and development costs |
|
|
1,208 |
|
|
|
1,222 |
|
|
|
|
4,877 |
|
|
|
4,983 |
|
Selling,
general and administrative expenses |
|
|
11,837 |
|
|
|
13,154 |
|
|
|
|
45,422 |
|
|
|
48,715 |
|
Total operating expenses |
|
|
13,045 |
|
|
|
14,376 |
|
|
|
|
50,299 |
|
|
|
53,698 |
|
Operating (loss) income |
|
|
(3,033 |
) |
|
|
(1,879 |
) |
|
|
|
(1,715 |
) |
|
|
5,208 |
|
Other
income (expense) |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(2,643 |
) |
|
|
(3,294 |
) |
|
|
|
(11,000 |
) |
|
|
(11,842 |
) |
Interest
expense related to write off of debt issuance costs |
|
|
(2,196 |
) |
|
|
— |
|
|
|
|
(3,635 |
) |
|
|
— |
|
Foreign
currency transaction loss |
|
|
(124 |
) |
|
|
(483 |
) |
|
|
|
(1,115 |
) |
|
|
(293 |
) |
Other
income (loss) |
|
|
28 |
|
|
|
(32 |
) |
|
|
|
897 |
|
|
|
(43 |
) |
Total other expense |
|
|
(4,935 |
) |
|
|
(3,809 |
) |
|
|
|
(14,853 |
) |
|
|
(12,178 |
) |
Loss
before income taxes and loss in non-marketable equity
interest from continuing operations |
|
|
(7,968 |
) |
|
|
(5,688 |
) |
|
|
|
(16,568 |
) |
|
|
(6,970 |
) |
Income
tax (benefit) from continuing operations |
|
|
212 |
|
|
|
(1,489 |
) |
|
|
|
(545 |
) |
|
|
(1,908 |
) |
Loss in
non-marketable equity interest, net of taxes |
|
|
— |
|
|
|
(80 |
) |
|
|
|
(5,752 |
) |
|
|
(199 |
) |
Net loss from continuing operations |
|
|
(8,180 |
) |
|
|
(4,279 |
) |
|
|
|
(21,775 |
) |
|
|
(5,261 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
|
|
(Loss)
income from operations of discontinued operations (including loss
on disposals and income taxes) |
|
|
(7,237 |
) |
|
|
(1,663 |
) |
|
|
|
(13,959 |
) |
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
(Loss)
earnings on discontinued operations |
|
|
(7,237 |
) |
|
|
(1,663 |
) |
|
|
|
(13,959 |
) |
|
|
(63 |
) |
Net loss |
|
|
(15,417 |
) |
|
|
(5,942 |
) |
|
|
|
(35,734 |
) |
|
|
(5,324 |
) |
Net loss
(income) attributable to noncontrolling interest |
|
|
1,140 |
|
|
|
447 |
|
|
|
|
574 |
|
|
|
(48 |
) |
Net loss
attributable to shareholders of Manitex International,
Inc. |
|
$ |
(14,277 |
) |
|
$ |
(5,495 |
) |
|
|
$ |
(35,160 |
) |
|
$ |
(5,372 |
) |
Earnings (loss) Per Share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
Loss from
continuing operations attributable to shareholders' of
Manitex International, Inc. |
|
$ |
(0.44 |
) |
|
$ |
(0.24 |
) |
|
|
$ |
(1.31 |
) |
|
$ |
(0.33 |
) |
(Loss)
earnings from discontinued operations attributable to shareholders
of Manitex International, Inc. |
|
$ |
(0.45 |
) |
|
$ |
(0.10 |
) |
|
|
$ |
(0.87 |
) |
|
$ |
- |
|
Loss
attributable to shareholders of Manitex International,
Inc. |
|
$ |
(0.88 |
) |
|
$ |
(0.34 |
) |
|
|
$ |
(2.18 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
Loss from
continuing operations attributable to shareholders' of
Manitex International, Inc. |
|
$ |
(0.44 |
) |
|
$ |
(0.24 |
) |
|
|
$ |
(1.31 |
) |
|
$ |
(0.33 |
) |
(Loss)
earnings from discontinued operations attributable to shareholders
of Manitex International, Inc. |
|
$ |
(0.45 |
) |
|
$ |
(0.10 |
) |
|
|
$ |
(0.87 |
) |
|
$ |
- |
|
Loss
attributable to shareholders of Manitex International, Inc. |
|
$ |
(0.88 |
) |
|
$ |
(0.34 |
) |
|
|
$ |
(2.18 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
16,174,403 |
|
|
|
16,015,219 |
|
|
|
|
16,133,284 |
|
|
|
15,970,074 |
|
Diluted |
|
|
16,174,403 |
|
|
|
16,015,219 |
|
|
|
|
16,133,284 |
|
|
|
15,970,074 |
|
MANITEX INTERNATIONAL, INC.CONSOLIDATED STATEMENT OF
CASH FLOWS(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Cash flows from
operating activities: |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
Net
(loss) income |
|
$ |
(35,734 |
) |
|
$ |
(5,324 |
) |
|
$ |
6,967 |
|
Adjustments to reconcile net income to cash used for operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
11,241 |
|
|
|
11,506 |
|
|
|
3,605 |
|
Changes
in allowances for doubtful accounts |
|
|
(162 |
) |
|
|
(1 |
) |
|
|
2 |
|
Acquisition expenses financed by seller |
|
|
— |
|
|
|
— |
|
|
|
183 |
|
Loss
(gain) on disposal of assets |
|
|
44 |
|
|
|
(136 |
) |
|
|
— |
|
Changes
in inventory reserves |
|
|
1,655 |
|
|
|
792 |
|
|
|
97 |
|
Deferred
income taxes |
|
|
1,178 |
|
|
|
(2,074 |
) |
|
|
(254 |
) |
Amortization of deferred financing cost |
|
|
4,336 |
|
|
|
1,204 |
|
|
|
259 |
|
Revaluation of contingent acquisition liability |
|
|
(915 |
) |
|
|
— |
|
|
|
— |
|
Write
down of goodwill |
|
|
275 |
|
|
|
— |
|
|
|
— |
|
Amortization of debt discount |
|
|
528 |
|
|
|
743 |
|
|
|
— |
|
Change in
value of interest rate swaps |
|
|
(776 |
) |
|
|
(706 |
) |
|
|
— |
|
Loss in
non-marketable equity interest |
|
|
5,752 |
|
|
|
199 |
|
|
|
— |
|
Share-based compensation |
|
|
1,129 |
|
|
|
1,481 |
|
|
|
1,104 |
|
Deferred
gain on sale and lease back |
|
|
(124 |
) |
|
|
301 |
|
|
|
— |
|
Reserves
for uncertain tax provisions |
|
|
54 |
|
|
|
60 |
|
|
|
(35 |
) |
Loss on
sale of discontinued operations |
|
|
16,913 |
|
|
|
1,378 |
|
|
|
— |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
|
1,119 |
|
|
|
18,762 |
|
|
|
(4,671 |
) |
(Increase) decrease in inventory |
|
|
2,174 |
|
|
|
(8,095 |
) |
|
|
(7,803 |
) |
(Increase) decrease in prepaid expenses |
|
|
(368 |
) |
|
|
(3,253 |
) |
|
|
318 |
|
(Increase) decrease in other assets |
|
|
189 |
|
|
|
111 |
|
|
|
(123 |
) |
Increase
(decrease) in accounts payable |
|
|
(4,259 |
) |
|
|
8,225 |
|
|
|
485 |
|
Increase
(decrease) in accrued expense |
|
|
(662 |
) |
|
|
(2,475 |
) |
|
|
(1,105 |
) |
Increase
(decrease) in income tax payable on ASV conversion |
|
|
— |
|
|
|
(16,231 |
) |
|
|
— |
|
Increase
(decrease) in other current liabilities |
|
|
171 |
|
|
|
(658 |
) |
|
|
300 |
|
Increase
(decrease) in other long-term liabilities |
|
|
(1,356 |
) |
|
|
1,403 |
|
|
|
(30 |
) |
Discontinued operations - cash provided by (used) for operating
activities |
|
|
(5,406 |
) |
|
|
(837 |
) |
|
|
(802 |
) |
Net cash
(used) for provided by operating activities |
|
|
(3,004 |
) |
|
|
6,375 |
|
|
|
(1,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of businesses, net of cash acquired |
|
|
— |
|
|
|
(13,747 |
) |
|
|
(24,998 |
) |
Proceeds
from the sale of fixed assets |
|
|
206 |
|
|
|
518 |
|
|
|
— |
|
Purchase
of property and equipment |
|
|
(1,486 |
) |
|
|
(2,327 |
) |
|
|
(751 |
) |
Investment in intangibles other than goodwill |
|
|
(97 |
) |
|
|
(233 |
) |
|
|
— |
|
Proceeds
from the sale of discontinued operations |
|
|
19,074 |
|
|
|
6,525 |
|
|
|
— |
|
Discontinued operations - cash used for investing activities |
|
|
746 |
|
|
|
(138 |
) |
|
|
(173 |
) |
Net cash
provided by (used) for investing activities |
|
|
18,443 |
|
|
|
(9,402 |
) |
|
|
(25,922 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings—2014 term loan |
|
|
— |
|
|
|
14,000 |
|
|
|
— |
|
Repayment
of 2014 term loan |
|
|
(2,200 |
) |
|
|
(11,800 |
) |
|
|
— |
|
Net
proceeds from stock offering |
|
|
— |
|
|
|
— |
|
|
|
12,500 |
|
New
borrowings—convertible notes |
|
|
— |
|
|
|
15,000 |
|
|
|
7,500 |
|
(Payments) Borrowing on revolving term credit facilities |
|
|
(11,900 |
) |
|
|
1,045 |
|
|
|
3,957 |
|
Net
borrowings (repayments) on working capital facilities |
|
|
1,828 |
|
|
|
(4,274 |
) |
|
|
294 |
|
Investment received from noncontrolling interest |
|
|
2,450 |
|
|
|
— |
|
|
|
— |
|
New
borrowings—except 2014 term loan |
|
|
30,701 |
|
|
|
2,446 |
|
|
|
677 |
|
Note
payments |
|
|
(43,703 |
) |
|
|
(8,119 |
) |
|
|
(947 |
) |
Bank fees
and cost related to new financing |
|
|
(2,155 |
) |
|
|
(1,274 |
) |
|
|
(519 |
) |
Shares
repurchased for income tax withholding on share-based
compensation |
|
|
(80 |
) |
|
|
(75 |
) |
|
|
(114 |
) |
Proceeds
from sale and leaseback |
|
|
4,080 |
|
|
|
|
|
|
|
— |
|
Excess
tax benefits related to vesting of restricted stock |
|
|
— |
|
|
|
— |
|
|
|
22 |
|
Proceeds
from capital leases |
|
|
— |
|
|
|
— |
|
|
|
942 |
|
Payments
on capital lease obligations |
|
|
(510 |
) |
|
|
(1,446 |
) |
|
|
(1,397 |
) |
Discontinued operations - cash used for financing activities |
|
|
4,735 |
|
|
|
437 |
|
|
|
3,731 |
|
Net cash
(used) for provided by financing activities |
|
|
(16,754 |
) |
|
|
5,940 |
|
|
|
26,646 |
|
Net
(decrease) increase in cash and cash equivalents |
|
|
(1,315 |
) |
|
|
2,913 |
|
|
|
(779 |
) |
Effect of
exchange rate changes on cash |
|
|
1,815 |
|
|
|
(1,363 |
) |
|
|
(944 |
) |
Cash and cash
equivalents at the beginning of the year |
|
|
5,918 |
|
|
|
4,368 |
|
|
|
6,091 |
|
Cash and cash
equivalents at end of period |
|
$ |
6,418 |
|
|
$ |
5,918 |
|
|
$ |
4,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information
In an effort to provide investors with additional information
regarding the Company’s results, Manitex International 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 may not be
comparable to similarly titled measures being disclosed by other
companies. In addition, the Company believes that non-GAAP
financial measures should be considered in addition to, and not in
lieu of, GAAP financial measures. Manitex International believes
that this information is useful to understanding its operating
results and the ongoing performance of its underlying businesses.
Management of Manitex International uses both GAAP and non–GAAP
financial measures to establish internal budgets and targets and to
evaluate the Company’s financial performance against such budgets
and targets. 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 December 31, 2016, unless otherwise
indicated.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures: “Adjusted EBITDA” (GAAP Operating Income adjusted for
acquisition transaction related expense, restructuring and related
expense, and Foreign exchange and other, and depreciation and
amortization) and Adjusted Net Income (net income attributable to
Manitex shareholders adjusted for acquisition transaction related
and restructuring and related expense, net of tax, and change
in net income attributable to non-controlling interest).
These non-GAAP terms, as defined by the Company, may not be
comparable to similarly titled measures used by other companies.
Neither Adjusted Net Income nor Adjusted EBITDA are a measure of
financial performance under generally accepted accounting
principles. Items excluded from Adjusted EBITDA and Adjusted Net
Income are significant components in understanding and assessing
financial performance. Adjusted EBITDA and Adjusted Net Income
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 Operating Income to
Adjusted EBITDA and Adjusted Net Income is provided below.
The Company’s management believes that Adjusted EBITDA and
Adjusted EBITDA as a percentage of sales and Adjusted Net Income
represent key operating metrics for its business. GAAP
Operating Income adjusted for acquisition transaction related
expense, restructuring and related expense, Foreign exchange and
other, and depreciation and amortization (Adjusted EBITDA), and
Adjusted Net Income, GAAP net income adjusted for acquisition
transaction and restructuring related expense are a key indicator
used by management to evaluate operating performance. While
Adjusted EBITDA and Adjusted Net Income 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. These
calculations may differ in method of calculation from similarly
titled measures used by other companies. A reconciliation of
Adjusted EBITDA and Adjusted Net Income to GAAP financial measures
for the full year and three month periods ended December, 2015 and
2016 is included with this press release below and with the
Company's related Form 8-K.
Reconciliation of GAAP Operating (Loss) Income from
Continuing Operations to Adjusted EBITDA (in
thousands)
|
Three Months Ended |
Full Year Ended |
|
December
31, 2016 |
December
31, 2015 |
December
31, 2016 |
December
31, 2015 |
Operating (loss) income |
$ |
(3,033 |
) |
$ |
(1,879 |
) |
$ |
(1,715 |
) |
$ |
5,208 |
|
Pre-tax: transaction related, restructuring and related expense and
foreign exchange and other adjustments |
|
4,835 |
|
|
1,345 |
|
|
7,920 |
|
|
5,820 |
|
Adjusted operating income (loss) |
$ |
1,802 |
|
$ |
(534 |
) |
$ |
6,205 |
|
$ |
11,028 |
|
Depreciation & Amortization |
|
2,634 |
|
|
2,759 |
|
|
11,241 |
|
|
11,506 |
|
Adjusted Earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) |
$ |
4,436 |
|
$ |
2,225 |
|
$ |
17,446 |
|
$ |
22,534 |
|
Adjusted EBITDA % to sales |
|
6.8 |
% |
|
2.9 |
% |
|
6.0 |
% |
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Full Year Ended |
|
December
31, 2016 |
December
31, 2015 |
December
31, 2016 |
December
31, 2015 |
Net (loss) income attributable to shareholders |
$ |
(7,040 |
) |
$ |
(3,832 |
) |
$ |
(21,201 |
) |
$ |
(5,309 |
) |
Pre-tax: transaction related, restructuring and related and Foreign
Exchange and other expense adjustments |
|
7,787 |
|
|
2,093 |
|
|
18,451 |
|
|
6,687 |
|
Tax effect based on effective tax rate |
|
423 |
|
|
390 |
|
|
423 |
|
|
845 |
|
Adjusted Net Income (loss) from continuing operations attributable
to Manitex shareholders |
$ |
324 |
|
$ |
(2,129 |
) |
$ |
(3,172 |
) |
$ |
533 |
|
Weighted average diluted shares outstanding |
|
16,174,403 |
|
|
16,015,219 |
|
|
16,133,284 |
|
|
15,970,074 |
|
Diluted (loss) per share attributable to shareholders as
reported |
$ |
(0.44 |
) |
$ |
(0.24 |
) |
$ |
(1.31 |
) |
$ |
(0.33 |
) |
Total EPS Effect |
$ |
0.46 |
|
$ |
0.11 |
|
$ |
1.12 |
|
$ |
0.37 |
|
Adjusted Diluted earnings (loss) per share attributable to
shareholders |
$ |
0.02 |
|
$ |
(0.13 |
) |
$ |
(0.20 |
) |
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, restructuring, and other expense
adjustments
After tax expense and per share amounts (Adjusted Net Income)
are calculated using pre-tax amounts, applying a tax rate based on
the effective 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.
|
|
|
|
Three Months Ended December 31, 2016 |
Pre-tax |
After-tax |
EPS |
Normalized plant absorption levels |
$ |
2,931 |
|
$ |
2,732 |
|
$ |
0.17 |
|
Write off deferred financing fees |
$ |
2,196 |
|
$ |
2,119 |
|
$ |
0.13 |
|
Deferred tax timing adjustment |
$ |
1,740 |
|
$ |
1,740 |
|
$ |
0.11 |
|
Sales at negative margins |
$ |
638 |
|
$ |
593 |
|
$ |
0.04 |
|
Non cash provision adjustments |
$ |
622 |
|
$ |
588 |
|
$ |
0.04 |
|
Restructuring fees |
$ |
415 |
|
$ |
386 |
|
$ |
0.02 |
|
Forex |
$ |
322 |
|
$ |
299 |
|
$ |
0.02 |
|
Stock compensation |
$ |
229 |
|
$ |
213 |
|
$ |
0.01 |
|
Adjust minority interest |
$ |
(1,306 |
) |
$ |
(1,306 |
) |
$ |
(0.08 |
) |
Total |
$ |
7,787 |
|
$ |
7,364 |
|
$ |
0.46 |
|
|
|
|
|
Full Year Ended December 31, 2016 |
Pre-tax |
After-tax |
EPS |
Write off equity investment |
$ |
5,752 |
|
$ |
5,752 |
|
$ |
0.36 |
|
Normalized plant absorption levels |
$ |
3,745 |
|
$ |
3,546 |
|
$ |
0.22 |
|
Write off deferred financing fees |
$ |
3,635 |
|
$ |
3,558 |
|
$ |
0.22 |
|
Restructuring fees |
$ |
1,626 |
|
$ |
1,597 |
|
$ |
0.10 |
|
Sales at negative margins |
$ |
1,082 |
|
$ |
1,037 |
|
$ |
0.06 |
|
Deferred tax timing adjustment |
$ |
931 |
|
$ |
931 |
|
$ |
0.06 |
|
Stock compensation |
$ |
844 |
|
$ |
828 |
|
$ |
0.05 |
|
Goodwill impairment/other |
$ |
794 |
|
$ |
794 |
|
$ |
0.05 |
|
Forex |
$ |
726 |
|
$ |
703 |
|
$ |
0.04 |
|
Non cash provision adjustments |
$ |
622 |
|
$ |
588 |
|
$ |
0.04 |
|
Adjust minority interest |
$ |
(1,306 |
) |
$ |
(1,306 |
) |
$ |
(0.08 |
) |
Total |
$ |
18,451 |
|
$ |
18,028 |
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
January 31, 2017 |
December 31, 2016 |
September 30, 2016 |
December 31, 2015 |
Backlog Continuing Operations |
$ |
51,887 |
$ |
38,089 |
|
$ |
27,099 |
|
$ |
65,355 |
|
January 31, 2017 change versus prior periods |
|
|
36.2 |
% |
|
91.5 |
% |
|
(20.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Current Ratio is calculated by dividing current
assets by current liabilities (but excludes assets and liabilities
from discontinued operations).
|
|
|
|
December 31, 2016 |
December 31, 2015 |
Current Assets |
$ |
151,164 |
$ |
162,389 |
Current Liabilities |
|
96,705 |
|
103,166 |
Current Ratio |
|
1.6 |
|
1.6 |
|
|
|
|
|
Days Sales Outstanding, (DSO), is calculated by
taking the sum of net trade and related party receivables divided
by 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 annualized cost of sales per day (cost of goods sold for the
quarter, multiplied by 4, and the sum divided by 365).
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.
|
|
|
|
December 31, 2016 |
December 31, 2015 |
Current portion of long term debt |
|
27,408 |
|
27,212 |
Current portion of capital lease obligations |
|
338 |
|
1,004 |
Revolving term credit facilities |
|
35,562 |
|
38,872 |
Notes payable – long term |
|
49,986 |
|
64,174 |
Capital lease obligations |
|
6,004 |
|
5,850 |
Convertible Notes |
|
20,960 |
|
20,660 |
Debt |
$ |
140,258 |
$ |
157,772 |
|
|
|
Adjusted EBITDA (TTM) |
$ |
17,446 |
$ |
22,534 |
Debt to Adjusted EBITDA Ratio |
|
8.0 |
|
7.0 |
|
|
|
|
|
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.
|
|
|
|
12 Month PeriodJanuary 1, 2016
to December 31, 2016 |
12 Month PeriodJanuary 1, 2015 to
December 31, 2015 |
Adjusted EBITDA |
$ |
17,446 |
$ |
22,534 |
Interest Expense |
|
11,000 |
|
11,842 |
Interest Cover Ratio |
|
1.6 |
|
1.9 |
|
|
|
|
|
Inventory turns are calculated by multiplying
cost of goods sold for the referenced three month period by 4 and
dividing that figure by inventory as at the referenced period.
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.
|
|
|
|
December
31, 2016 |
December
31, 2015 |
Trade receivables (net) |
$ |
47,768 |
|
$ |
50,489 |
|
Inventory (net) |
|
90,901 |
|
|
99,846 |
|
Less: Accounts payable |
|
50,151 |
|
|
55,212 |
|
Total Operating Working Capital |
$ |
88,518 |
|
$ |
95,123 |
|
% of Trailing Three Month Annualized Net
Sales |
|
33.7 |
% |
|
31.2 |
% |
|
|
|
|
|
|
|
Trailing Three Month Annualized Net Sales is
calculated using the net sales for the quarter, multiplied by
four.
|
|
|
Three Months Ended |
|
December
31,2016 |
December 31, 2015 |
September
30, 2016 |
Net sales |
$ |
65,617 |
$ |
76,139 |
$ |
62,636 |
Multiplied by 4 |
|
4 |
|
4 |
|
4 |
Trailing Three Month Annualized Net Sales |
$ |
262,468 |
$ |
304,556 |
$ |
250,544 |
|
|
|
|
|
|
|
Working capital is calculated as total current
assets less total current liabilities (but excludes assets and
liabilities from discontinued operations).
|
|
|
|
December 31, 2016 |
December 31, 2015 |
Total Current Assets |
$ |
151,164 |
$ |
162,389 |
Less: Total Current Liabilities |
|
96,705 |
|
103,166 |
Working Capital |
$ |
54,459 |
$ |
59,223 |
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
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