Manitex International, Inc. (Nasdaq:MNTX), a leading international
provider of truck and knuckleboom cranes, today announced Second
Quarter 2017 results.
Net revenues for the second quarter were $51.6
million compared to $48.7 million in the prior year’s period and
GAAP net loss attributable to shareholders of Manitex International
was $(2.3) million, or $(0.14) per share compared to a net loss
attributable to shareholders of Manitex International of $(1.8)
million, or $(0.11) per share in the second quarter of 2016.
The Company reported a second quarter net loss from continuing
operations attributable to shareholders of Manitex International of
$(1.4) million or $(0.08) per share, compared to net loss from
continuing operations attributable to shareholders of Manitex
International of $(2.5) million or $(0.16) per share for the three
months ended June 30, 2016.
Second Quarter 2017 Financial Highlights from
Continuing Operations*:
- Net revenues were higher at $51.6 million, compared to $48.7
million in the same period in 2016 and represent a sequential
increase of 29.5% over Q1 2017
- Adjusted net income from continuing operations* of $1.0
million, or $0.06 per share for the second quarter of 2017,
compared to adjusted net loss from continuing operations of $(0.1)
million or $(0.01) per share for the second quarter of 2016.
- Adjusted operating income* of $2.3 million for Q2 2017,
compared to $1.1 million in Q1 2017, and compared to adjusted
operating loss of $(0.1) million in Q2 2016.
- Adjusted EBITDA* doubled to $3.4 million, or 6.7% of sales, for
the second quarter of 2017 compared to adjusted EBITDA of $1.7
million, or 3.5% of sales for the second quarter of 2016.
- Net debt decreased by $49.7 million (or 35.6%) from $139.2
million at March 31, 2017, to $89.5 million at June 30, 2017.
- Backlog as of 6/30/2017 was $47.6 million, representing growth
of 52.1% from December 31, 2016.
- Cost reductions of $2.9 million achieved in the second quarter
of 2017.
*All Reported numbers, have been
restated and adjusted to reflect the May 2017 divestiture of
approximately one-half of Manitex International’s equity ownership
of ASV, which completed a public offering (IPO) on May 17, 2017;
*Adjusted Numbers are defined in non-GAAP explanation at end of
this release.
David J. Langevin, Chairman and Chief Executive Officer of
Manitex commented, “The increased order rate that began at the end
of 2016 enabled us to achieve much improved results from top to
bottom in the second quarter of 2017. While there remains
much work to do to optimize our production and margins, we are
optimistic that this year represents the beginning of a healthy
uptrend for our markets and Manitex as we are well-positioned to
execute our plan. In May we took another step forward in our
debt reduction program by selling approximately half of our
holdings in the ASV joint venture and using the proceeds from this
transaction to pay down debt. Our reduced ownership percentage
enabled us to deconsolidate the ASV debt from our balance sheet,
and together with proceeds and cash generation, we have reduced
total debt to under $100 million. We maintain ownership of
approximately 2.1 million shares of the now public ASV entity,
which we believe will prove an excellent long-term investment for
our shareholders. With that behind us, we have shifted our focus to
growing PM, our international knuckleboom business and recently
announced the appointment of several key North American
distributors for that product line subsequent to the end of the
second quarter. We have begun producing PM units here in North
America, and we are working diligently to integrate the entire PM
operation onto the Manitex platform.
“Further, we reported a 29% sequential increase in Q2 2017
revenues compared with Q1 2017 revenues, as well as a doubling of
adjusted operating income in the same period, which also
represented a two million dollar improvement in adjusted operating
income as compared to the second quarter of 2016. Our Adjusted
EBITDA doubled compared to last year’s same quarter and we also saw
a significant recovery in our adjusted gross margins. Given the
long-awaited recovery of the order book that we continue to enjoy,
we expect that the third quarter will show further improvement in
our results. We anticipate that additional cost reductions
implemented in the second quarter will continue to enhance our
margins through the rest of this year, incremental to the one
million dollars in cost savings we’ve achieved in our General and
Administrative expenses to date. Our outlook remains positive as
supported by discussions with our customers and we look forward to
a strong close to this year and continuing into 2018,” concluded
Mr. Langevin.
Segment Reporting
We previously reported the operations of our
Company as operating in three segments – the Lifting Segment, the
ASV Segment, and the Equipment Distribution Segment. Since
2015, the Company has sought to redefine itself strategically and
operationally, including a series of divestitures. In May
2017, this program continued with the sale of a portion of our
holdings in ASV. As result, ASV is no longer a consolidated
subsidiary and, therefore, is no longer a reporting segment.
The previously reported Equipment Distribution
segment was comprised of C&M and C&M Leasing. The Company
previously sought to grow C&M by adding a used equipment
business, which involved actively buying both lifting and
non-lifting construction equipment, re-furbishing that equipment,
and then re-marketing that equipment. During Q2 2017, the
Company discontinued its used equipment sales operations. It
also has decided not to build a national rental program. Because
our emphasis is now on products manufactured by the Company, the
C&M operations are now being used to facilitate sale of the
Company's products. As such, the Company has determined that
the operations of C&M and C&M Leasing no longer constitute
a business segment and consequently, it will no longer report it as
a separate segment.
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- 800‐441‐0022 if calling within the United States or
719‐457‐2653 if calling internationally. A replay will be available
until August 10, 2017 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 4896207 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 truck, truck and knuckleboom 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 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. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
June 30,2017 |
|
|
December 31,2016 |
|
|
|
Unaudited |
|
|
Unaudited |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
2,816 |
|
|
$ |
4,538 |
|
Cash -
restricted |
|
|
773 |
|
|
|
773 |
|
Trade
receivables (net) |
|
|
43,994 |
|
|
|
33,664 |
|
Other
receivables |
|
|
2,392 |
|
|
|
1,332 |
|
Inventory
(net) |
|
|
63,487 |
|
|
|
59,979 |
|
Prepaid
expense and other |
|
|
4,454 |
|
|
|
4,234 |
|
Current
assets of discontinued operations |
|
|
— |
|
|
|
46,644 |
|
Total current assets |
|
|
117,916 |
|
|
|
151,164 |
|
Total
fixed assets (net) |
|
|
22,152 |
|
|
|
21,839 |
|
Intangible assets (net) |
|
|
31,094 |
|
|
|
30,985 |
|
Goodwill |
|
|
41,948 |
|
|
|
39,669 |
|
Equity
investment in ASV Holdings, Inc. |
|
|
14,560 |
|
|
|
— |
|
Other
long-term assets |
|
|
1,600 |
|
|
|
1,606 |
|
Deferred
tax asset |
|
|
545 |
|
|
|
545 |
|
Long-term
assets of discontinued operations |
|
|
— |
|
|
|
72,177 |
|
Total assets |
|
$ |
229,815 |
|
|
$ |
317,985 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Notes
payable—short term |
|
$ |
28,972 |
|
|
$ |
24,408 |
|
Current
portion of capital lease obligations |
|
|
850 |
|
|
|
338 |
|
Accounts
payable |
|
|
40,847 |
|
|
|
33,802 |
|
Accounts
payable related parties |
|
|
1,762 |
|
|
|
2,098 |
|
Accrued
expenses |
|
|
10,528 |
|
|
|
10,278 |
|
Other
current liabilities |
|
|
2,511 |
|
|
|
2,150 |
|
Current
liabilities of discontinued operations |
|
|
— |
|
|
|
23,631 |
|
Total current liabilities |
|
|
85,470 |
|
|
|
96,705 |
|
Long-term
liabilities |
|
|
|
|
|
|
|
|
Revolving
term credit facilities |
|
|
13,235 |
|
|
|
19,957 |
|
Notes
payable (net) |
|
|
23,261 |
|
|
|
23,719 |
|
Capital
lease obligations, (net of current portion) |
|
|
5,682 |
|
|
|
6,004 |
|
Convertible note related party (net) |
|
|
6,932 |
|
|
|
6,862 |
|
Convertible note (net) |
|
|
14,203 |
|
|
|
14,098 |
|
Deferred
gain on sale of property |
|
|
947 |
|
|
|
1,058 |
|
Deferred
tax liability |
|
|
3,287 |
|
|
|
3,242 |
|
Other
long-term liabilities |
|
|
3,382 |
|
|
|
4,133 |
|
Long-term
liabilities of discontinued operations |
|
|
— |
|
|
|
42,645 |
|
Total long-term liabilities |
|
|
70,929 |
|
|
|
121,718 |
|
Total liabilities |
|
|
156,399 |
|
|
|
218,423 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preferred
Stock—Authorized 150,000 shares, no shares issued or outstanding
at June 30, 2017 and December 31, 2016 |
|
|
— |
|
|
|
— |
|
Common
Stock—no par value 25,000,000 shares authorized, 16,556,679 and
16,200,294 shares issued and outstanding at June 30, 2017 and
December 31, 2016, respectively |
|
|
97,279 |
|
|
|
94,324 |
|
Paid in
capital |
|
|
2,618 |
|
|
|
2,918 |
|
Retained
deficit |
|
|
(24,309 |
) |
|
|
(18,572 |
) |
Accumulated other comprehensive loss |
|
|
(2,172 |
) |
|
|
(4,272 |
) |
Equity attributable to shareholders of Manitex
International, Inc. |
|
|
73,416 |
|
|
|
74,398 |
|
Equity
attributable to noncontrolling interests |
|
|
— |
|
|
|
25,164 |
|
Total
equity |
|
|
73,416 |
|
|
|
99,562 |
|
Total liabilities and equity |
|
$ |
229,815 |
|
|
$ |
317,985 |
|
|
|
|
|
|
|
|
|
|
MANITEX INTERNATIONAL, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except for share and per share
amounts) |
|
|
|
|
|
|
|
|
|
Three Months
EndedJune 30, |
|
|
Six Months
EndedJune 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
Net revenues |
|
$ |
51,592 |
|
|
$ |
48,685 |
|
|
$ |
91,434 |
|
|
$ |
105,603 |
|
Cost of sales |
|
|
42,163 |
|
|
|
39,938 |
|
|
|
74,503 |
|
|
|
86,063 |
|
Gross profit |
|
|
9,429 |
|
|
|
8,747 |
|
|
|
16,931 |
|
|
|
19,540 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development costs |
|
|
596 |
|
|
|
735 |
|
|
|
1,283 |
|
|
|
1,478 |
|
Selling,
general and administrative expenses |
|
|
8,657 |
|
|
|
9,540 |
|
|
|
18,133 |
|
|
|
18,488 |
|
Total operating expenses |
|
|
9,253 |
|
|
|
10,275 |
|
|
|
19,416 |
|
|
|
19,966 |
|
Operating income (loss) |
|
|
176 |
|
|
|
(1,528 |
) |
|
|
(2,485 |
) |
|
|
(426 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(1,301 |
) |
|
|
(1,783 |
) |
|
|
(2,268 |
) |
|
|
(3,274 |
) |
Interest
expense related to write off of debt issuance costs |
|
|
— |
|
|
|
(1,439 |
) |
|
|
— |
|
|
|
(1,439 |
) |
Foreign
currency transaction loss |
|
|
(256 |
) |
|
|
(393 |
) |
|
|
(339 |
) |
|
|
(909 |
) |
Other
(expense) income |
|
|
(7 |
) |
|
|
620 |
|
|
|
265 |
|
|
|
602 |
|
Total other expense |
|
|
(1,564 |
) |
|
|
(2,995 |
) |
|
|
(2,342 |
) |
|
|
(5,020 |
) |
Loss before income
taxes and loss in non-marketable equity interest from
continuing operations |
|
|
(1,388 |
) |
|
|
(4,523 |
) |
|
|
(4,827 |
) |
|
|
(5,446 |
) |
Income tax (benefit)
expense from continuing operations |
|
|
(23 |
) |
|
|
(2,051 |
) |
|
|
86 |
|
|
|
(109 |
) |
Loss in non-marketable
equity interest, net of taxes |
|
|
— |
|
|
|
(40 |
) |
|
|
— |
|
|
|
(79 |
) |
Net loss from continuing operations |
|
|
(1,365 |
) |
|
|
(2,512 |
) |
|
|
(4,913 |
) |
|
|
(5,416 |
) |
Discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from operations of discontinued operations
(including loss on disposal for the three and six months 2017
of $1,133 and a gain on disposal for the six months 2016 of
$2,212) |
|
|
(805 |
) |
|
|
2,051 |
|
|
|
(573 |
) |
|
|
4,863 |
|
Income
tax (benefit) expense |
|
|
(4 |
) |
|
|
926 |
|
|
|
(23 |
) |
|
|
(499 |
) |
(Loss)
income from discontinued operations |
|
|
(801 |
) |
|
|
1,125 |
|
|
|
(550 |
) |
|
|
5,362 |
|
Net loss |
|
|
(2,166 |
) |
|
|
(1,387 |
) |
|
|
(5,463 |
) |
|
|
(54 |
) |
Net loss (income)
attributable to noncontrolling interest from discontinued
operations |
|
|
(160 |
) |
|
|
(399 |
) |
|
|
(274 |
) |
|
|
(272 |
) |
Net loss attributable to shareholders of Manitex
International, Inc. |
|
$ |
(2,326 |
) |
|
$ |
(1,786 |
) |
|
$ |
(5,737 |
) |
|
$ |
(326 |
) |
Earnings (loss)
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations attributable to shareholders
of Manitex International, Inc. |
|
$ |
(0.08 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.34 |
) |
(Loss)
income from discontinued operations attributable to shareholders
of Manitex International, Inc. |
|
$ |
(0.06 |
) |
|
$ |
0.05 |
|
|
$ |
(0.05 |
) |
|
$ |
0.32 |
|
Net loss
attributable to shareholders of Manitex International,
Inc. |
|
$ |
(0.14 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.02 |
) |
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations attributable to shareholders
of Manitex International, Inc. |
|
$ |
(0.08 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.34 |
) |
(Loss)
income from discontinued operations attributable to shareholders
of Manitex International, Inc. |
|
$ |
(0.06 |
) |
|
$ |
0.05 |
|
|
$ |
(0.05 |
) |
|
$ |
0.32 |
|
Net loss
attributable to shareholders of Manitex International,
Inc. |
|
$ |
(0.14 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.02 |
) |
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
16,553,667 |
|
|
|
16,125,788 |
|
|
|
16,512,061 |
|
|
|
16,115,695 |
|
Diluted |
|
|
16,553,667 |
|
|
|
16,125,788 |
|
|
|
16,512,061 |
|
|
|
16,115,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANITEX INTERNATIONAL, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
|
|
|
|
|
|
Six Months
EndedJune 30, |
|
|
|
2017 |
|
|
2016 |
|
|
|
Unaudited |
|
|
Unaudited |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(5,463 |
) |
|
$ |
(54 |
) |
Adjustments to reconcile net loss to cash used for operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,688 |
|
|
|
3,593 |
|
Changes
in allowances for doubtful accounts |
|
|
55 |
|
|
|
68 |
|
Changes
in inventory reserves |
|
|
(237 |
) |
|
|
548 |
|
Revaluation of contingent acquisition liability |
|
|
(346 |
) |
|
|
(915 |
) |
Write
down of goodwill |
|
|
— |
|
|
|
275 |
|
Deferred
income taxes |
|
|
(169 |
) |
|
|
(283 |
) |
Amortization and write off of deferred debt issuance costs |
|
|
196 |
|
|
|
1,815 |
|
Amortization of debt discount |
|
|
219 |
|
|
|
286 |
|
Change in
value of interest rate swaps |
|
|
(408 |
) |
|
|
(373 |
) |
Loss in
non-marketable equity interest |
|
|
— |
|
|
|
79 |
|
Share-based compensation |
|
|
357 |
|
|
|
565 |
|
Adjustment to deferred gain on sales and lease back |
|
|
(71 |
) |
|
|
(118 |
) |
Loss
(gain) on disposal of assets |
|
|
16 |
|
|
|
(43 |
) |
Reserves
for uncertain tax provisions |
|
|
54 |
|
|
|
32 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
|
(9,385 |
) |
|
|
(7,527 |
) |
(Increase) decrease in inventory |
|
|
(347 |
) |
|
|
4,460 |
|
(Increase) decrease in prepaid expenses |
|
|
(192 |
) |
|
|
311 |
|
(Increase) decrease in other assets |
|
|
32 |
|
|
|
182 |
|
Increase
(decrease) in accounts payable |
|
|
4,471 |
|
|
|
(1,661 |
) |
Increase
(decrease) in accrued expense |
|
|
(249 |
) |
|
|
(2,017 |
) |
Increase
(decrease) in other current liabilities |
|
|
211 |
|
|
|
708 |
|
Increase
(decrease) in other long-term liabilities |
|
|
(654 |
) |
|
|
(136 |
) |
Discontinued operations - cash provided by (used for) operating
activities |
|
|
4,797 |
|
|
|
(7,046 |
) |
Net cash
used for operating activities |
|
|
(4,425 |
) |
|
|
(7,251 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from the sale of fixed assets |
|
|
— |
|
|
|
187 |
|
Proceeds
from the sale of discontinued operations (Note 17) |
|
|
12,892 |
|
|
|
— |
|
Purchase
of property and equipment |
|
|
(449 |
) |
|
|
(654 |
) |
Investment in intangibles other than goodwill |
|
|
(40 |
) |
|
|
(55 |
) |
Discontinued operations - cash (used for) provided by investing
activities |
|
|
(84 |
) |
|
|
4,034 |
|
Net cash
provided by investing activities |
|
|
12,319 |
|
|
|
3,512 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
(Payments) borrowing on revolving term credit facilities |
|
|
(6,722 |
) |
|
|
855 |
|
Net
borrowings on working capital facilities |
|
|
3,209 |
|
|
|
3,865 |
|
New
borrowings—other |
|
|
518 |
|
|
|
749 |
|
Debt
issuance costs incurred |
|
|
(50 |
) |
|
|
(393 |
) |
Note
payments |
|
|
(3,218 |
) |
|
|
(4,556 |
) |
Shares
repurchased for income tax withholding on share-based
compensation |
|
|
(128 |
) |
|
|
(43 |
) |
Proceeds
from stock offering |
|
|
2,426 |
|
|
|
|
|
Proceeds
from sale and lease back |
|
|
— |
|
|
|
4,080 |
|
Payments
on capital lease obligations |
|
|
(709 |
) |
|
|
(322 |
) |
Discontinued operations - cash (used for) provided by financing
activities |
|
|
(5,058 |
) |
|
|
498 |
|
Net cash
(used for) provided by financing activities |
|
|
(9,732 |
) |
|
|
4,733 |
|
Net
(decrease) increase in cash and cash equivalents |
|
|
(1,838 |
) |
|
|
994 |
|
Effect of
exchange rate changes on cash |
|
|
116 |
|
|
|
324 |
|
Cash and cash
equivalents at the beginning of the year |
|
|
5,311 |
|
|
|
8,578 |
|
Cash and cash
equivalents at end of period |
|
$ |
3,589 |
|
|
$ |
9,896 |
|
|
|
|
|
|
|
|
|
|
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 June 30, 2017,
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 three month periods ended June 30, 2016 and 2017 is
included with this press release below and with the Company's
related Form 8-K.
Reconciliation of GAAP Operating Income
(Loss) from Continuing Operations to Adjusted EBITDA
($1,000) |
Three Months Ended |
Six Months Ended |
|
June 30,2017 |
June 30,2016 |
June 30,2017 |
June 30,2016 |
Operating income (loss) |
$176 |
($1,528) |
($2,485) |
($426) |
Adjustments related to normalized margin, trade show
and restructuring, and other expenses |
2,084 |
1,434 |
5,807 |
1,744 |
Adjusted operating income (loss) |
2,260 |
(94) |
3,322 |
1,318 |
Depreciation and amortization |
1,211 |
1,799 |
2,688 |
3,593 |
Adjusted EBITDA |
$3,471 |
$1,705 |
$6,010 |
$4,911 |
Adjusted EBITDA % to sales |
6.7% |
3.5% |
6.6% |
4.7% |
|
|
|
|
|
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
($1,000)-except share count and per share data |
Three Months Ended |
Six Months Ended |
|
June 30,2017 |
June 30,2016 |
June 30,2017 |
June 30,2016 |
Net (Loss) Income from continuing operations attributable to
shareholders |
($1,365) |
($2,512) |
($4,913) |
($5,416) |
Adjustments related to normalized margin, trade show,
restructuring, and other expenses |
2,340 |
2,428 |
6,146 |
3,254 |
Adjusted Net Income (Loss) from continuing operations attributable
to shareholders |
975 |
(84) |
1,233 |
(2,162) |
Weighted diluted shares outstanding |
16,553,667 |
16,125,788 |
16,512,061 |
16,115,695 |
Diluted (loss) per share attributable to shareholders as
reported |
($0.08) |
($0.16) |
($0.30) |
($0.34) |
Total EPS effect |
$0.14 |
$0.15 |
$0.37 |
$0.20 |
Adjusted diluted income (loss) per share attributable to
shareholders |
$0.06 |
($0.01) |
$0.07 |
($0.13) |
|
|
|
|
|
Normalized plant absorption, 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. During
the current period the jurisdictional tax rate is zero, and no
pre-tax or after-tax presentation is provided.
($1,000) |
Three Months Ended |
Six Months Ended |
|
June 30, 2017 |
June 30, 2017 |
June 30, 2017 |
June 30, 2017 |
Normalized plant absorption levels |
$1,687 |
$0.10 |
$3,848 |
$0.23 |
Trade show expenses (tri-annual only) |
$0 |
$0.00 |
$1,106 |
$0.07 |
Restructuring fees |
$301 |
$0.02 |
$574 |
$0.03 |
Stock options |
$96 |
$0.01 |
$279 |
$0.02 |
Foreign exchange |
$256 |
$0.01 |
$339 |
$0.02 |
Total |
$2,340 |
$0.14 |
$6,146 |
$0.37 |
|
|
|
|
|
|
|
|
|
($1,000) |
Three Months Ended |
Six Months Ended |
|
June 30, 2016 |
June 30, 2016 |
June 30, 2016 |
June 30, 2016 |
Write off deferred finance costs |
$1,439 |
$0.09 |
$1,439 |
$0.09 |
Normalized plant absorption levels |
$814 |
$0.05 |
$814 |
$0.05 |
Restructuring fees |
$339 |
$0.02 |
$364 |
$0.02 |
Stock options |
$281 |
$0.02 |
$566 |
$0.04 |
Write off goodwill |
$275 |
$0.02 |
$275 |
$0.02 |
Foreign exchange |
$200 |
$0.01 |
$716 |
$0.04 |
Contingent liability adjustment |
($920) |
($0.06) |
($920) |
($0.06) |
Total |
$2,428 |
$0.15 |
$3,254 |
$0.20 |
|
|
|
|
|
|
|
|
|
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.
($1,000) |
June 30,2017 |
March 31,2017 |
December 31,2016 |
September 30,2016 |
June 30,2016 |
Backlog |
$47,554 |
$51,237 |
$31,266 |
$20,494 |
$27,329 |
Change Versus Current Period |
|
(7.2%) |
52.1% |
132.0% |
74.0% |
|
|
|
|
|
|
Current Ratio is calculated by dividing current
assets by current liabilities (but excludes assets and liabilities
from discontinued operations).
($1,000) |
June 30, 2017 |
December 31, 2016 |
Current Assets |
$117,916 |
$104,520 |
Current Liabilities |
$85,470 |
$73,074 |
Current Ratio |
1.4 |
1.4 |
|
|
|
|
|
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).
|
June 30, 2017 |
June 30, 2016 |
DSO |
77.8 |
72.4 |
|
|
|
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).
|
June 30, 2017 |
June 30, 2016 |
DPO |
96.1 |
83.2 |
|
|
|
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.
|
June 30, 2017 |
June 30, 2016 |
Inventory Turns |
2.6 |
2.6 |
|
|
|
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.
($1,000) |
June 30, 2017 |
December 31, 2016 |
Notes payable - short term |
$28,972 |
$24,408 |
Current portion of capital leases |
850 |
338 |
Revolving term credit facilities |
13,235 |
19,957 |
Notes payable - long term |
23,261 |
23,719 |
Capital lease obligations |
5,682 |
6,004 |
Convertible notes |
21,135 |
20,960 |
Total debt |
$93,135 |
$95,386 |
|
|
|
Adjusted EBITDA (TTM) |
$7,465 |
$6,366 |
Debt to Adjusted EBITDA Ratio |
12.5 |
15.0 |
|
|
|
|
|
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.
($1,000) |
12 Month Period July 1, 2016 to June 30,
2017 |
12 Month Period January 1, 2016 to December 31,
2016 |
Adjusted EBITDA |
$7,465 |
$6,366 |
Interest Expense |
5,031 |
6,037 |
Interest Cover Ratio |
1.5 |
1.1 |
|
|
|
|
|
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.
($1,000) |
June 30, 2017 |
June 30, 2016 |
December 31, 2016 |
Trade Receivables (Net) |
$43,994 |
$38,571 |
$33,664 |
Inventory (Net) |
63,487 |
59,587 |
59,979 |
Less: Accounts Payable |
42,609 |
35,689 |
35,900 |
Total Operating Working Capital |
$64,872 |
$62,469 |
$57,743 |
Trailing Three Month Annualized Net Sales |
$206,368 |
$194,540 |
$162,268 |
% of Trailing Three Month Annualized Net
Sales |
31.4% |
32.1% |
35.6% |
|
|
|
|
Trailing Three Month Annualized Net
Sales is calculated using the net sales for the quarter,
multiplied by four.
($1,000) |
June 30, 2017 |
June 30, 2016 |
December 31, 2016 |
Net Sales |
$51,592 |
$48,635 |
$40,567 |
Multiplied by 4 |
4 |
4 |
4 |
Trailing three Month Annualized Sales |
$206,368 |
$194,540 |
$162,268 |
|
|
|
|
Working capital is calculated
as total current assets less total current liabilities (but
excludes assets and liabilities from discontinued operations).
($1,000) |
June 30, 2017 |
December 31, 2016 |
Total Current Assets |
$117,916 |
$104,520 |
Less: Current Liabilities |
85,470 |
73,074 |
Working Capital |
$32,446 |
$31,446 |
|
|
|
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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