Manitex International, Inc. (Nasdaq: MNTX), a
leading international provider of truck and knuckle boom cranes,
today announced first quarter 2019 results. Net revenues for the
first quarter were $57.4 million, compared to $56.7 million in the
prior year’s period, and net income was $0.9 million, or $0.05 per
share, compared to a net loss of $(1.5) million, or $(0.09) per
share, in the first quarter of 2018. Adjusted net income* in the
first quarter 2019 was $1.2 million, or $0.06 per share, compared
to adjusted net income of $0.8 million, or $0.05 per share, for the
first quarter of 2018.
Highlights (versus prior year,
unless otherwise noted):
- Net revenues of $57.4 million, represents a 1% improvement or
5% excluding unfavorable currency impact
- Earnings per share improved to $0.05 compared to loss per share
of $(0.09)
- Adjusted earnings per share* of $0.06, up 20% from $0.05
- EBITDA increased to $2.9 million from $1.8 million, up 68%
- Adjusted EBITDA* $3.8 million, or 6.6% of sales, nearly 100
basis points higher compared to fourth quarter 2018
- Backlog increased to $75 million, growth of 12% year to
date
* Adjusted Numbers are discussed in greater
detail and reconciled under “Non-GAAP Financial Measures and Other
Items” at the end of this release.
Chief Executive and Chairman David J. Langevin
commented, “We started the year out on a positive note. Our first
quarter financial performance in 2019 was highlighted by a positive
book to bill and gross margin recovery, which at 20.8% is once
again within the bounds of our long term target of 20% to
25%. Further, with continued progress made managing our costs
and production schedules, we are expecting operating and EBITDA
margins to also show consistent progress throughout the year. We
are very pleased with the progress that we continue to make, led by
Manitex straight mast cranes which is a market leader and top
performer in our portfolio.”
“With a solid backlog we anticipate higher
production in the second quarter which should produce expanding
operating profits and EPS. We look forward to building on the
operating efficiencies we have generated in the business that
enabled a greater than $2 million net income improvement on a
modest increase in sales, with operating profit margin up over 200
basis points when compared to the same quarter of a year ago. We
continue to see good order activity in both North America and
Europe, and, as we recently reported, we are producing our first PM
order for the Asian markets which resulted from our relationship
with Tadano. After a solid start to the year we believe we will see
a progression of better financial performance for each quarter for
the remainder of the year,” concluded Mr. Langevin.
Steve Kiefer, President and Chief Operating
Officer of Manitex added, “Despite recent challenges in the
marketplace with tightness and surcharges in certain parts of the
supply chain, volatility in dealer order patterns and tariff policy
changes, we saw an uptick in gross, operating, and EBITDA margins
in the quarter. And, with a backlog of $75 million, we are well
positioned for increased levels of production and expansion in the
second quarter. The first quarter industry order rate for our
Manitex-branded straight-mast crane business was an annualized
1,500 units, which, if realized, would represent nearly 30% growth
over 2018 shipment levels. Our first order from Tadano has come in,
and we’re excited as ever about this partnership’s long-term
potential.”
“We received over $7 million in new orders
coming out of the Bauma Expo in Munich, Germany, early on in the
second quarter, and in addition to introducing important new PM,
Oil & Steel and Valla products at Bauma, PM celebrated its 60th
anniversary. As the first Italian producer of truck mounted
hydraulic cranes, PM remains our most important global growth
opportunity in 2019 as we continue increasing our penetration in
the expanding multi-billion global knuckle boom market. We
added two PM dealers in North America in the first quarter as we
continue strengthening our global PM distribution. We remain
excited about the opportunities to execute and reach our growth
objectives as we move through the rest of 2019,” concluded Mr.
Kiefer.
Other
Matters:
The Company continues to comply with the SEC
investigation regarding the Company’s restatement of prior
financial statements.
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 888-220-8451 if calling within the United States or
323-794-2588 if calling internationally. A replay will be available
until May 13, 2019, 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
6598836 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, or for the three-month periods ended March
31, 2019 and 2018, unless otherwise indicated. A reconciliation of
Adjusted GAAP financial measures for the three-month periods ended
March 31, 2019 and 2018 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 mobile cranes (truck
mounted straight-mast and knuckle boom cranes, industrial cranes,
rough terrain cranes and railroad cranes), truck mounted aerial
work platforms and specialized 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, Oil
& Steel, Badger, Sabre, and Valla. The company also has a
minority ownership in ASV Holdings, Inc. which manufactures and
sells a line of high-quality compact track and skid steer
loaders.
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.Steve
Kiefer President and Chief Operating Officer(708)
237-2065 skiefer@manitex.com |
Darrow Associates Inc.Peter
Seltzberg, Managing DirectorInvestor Relations (516)
419-9915pseltzberg@darrowir.com |
MANITEX INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except share and per share
data)
|
|
|
|
|
|
|
As of March 31, |
|
As of December 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash |
|
$ |
20,889 |
|
|
$ |
22,103 |
|
Cash - restricted |
|
|
234 |
|
|
|
245 |
|
Marketable equity securities |
|
|
2,970 |
|
|
|
2,160 |
|
Trade receivables (net) |
|
|
47,099 |
|
|
|
45,448 |
|
Other receivables |
|
|
2,528 |
|
|
|
2,374 |
|
Inventory (net) |
|
|
64,073 |
|
|
|
58,024 |
|
Prepaid expense and other |
|
|
4,259 |
|
|
|
1,639 |
|
Total current
assets |
|
|
142,052 |
|
|
|
131,993 |
|
Total fixed assets, net of
accumulated depreciation of $15,238 and $14,826 at March 31,
2019 and December 31, 2018, respectively |
|
|
20,193 |
|
|
|
20,249 |
|
Operating lease assets |
|
|
2,911 |
|
|
|
- |
|
Intangible assets (net) |
|
|
23,818 |
|
|
|
24,773 |
|
Goodwill |
|
|
35,808 |
|
|
|
36,298 |
|
Other long-term assets |
|
|
1,313 |
|
|
|
1,570 |
|
Deferred tax asset |
|
|
2,366 |
|
|
|
2,366 |
|
Total assets |
|
$ |
228,461 |
|
|
$ |
217,249 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
Notes payable |
|
$ |
23,835 |
|
|
$ |
22,706 |
|
Current portion of capital lease
obligations |
|
|
436 |
|
|
|
422 |
|
Current portion of operating lease
liabilities |
|
|
1,013 |
|
|
|
- |
|
Accounts payable |
|
|
44,128 |
|
|
|
36,896 |
|
Accounts payable related
parties |
|
|
1,493 |
|
|
|
1,371 |
|
Accrued expenses |
|
|
9,282 |
|
|
|
9,249 |
|
Customer deposits |
|
|
2,312 |
|
|
|
2,310 |
|
Total current
liabilities |
|
|
82,499 |
|
|
|
72,954 |
|
Long-term
liabilities |
|
|
|
|
Notes payable (net) |
|
|
22,639 |
|
|
|
23,134 |
|
Capital lease obligation (net of
current portion) |
|
|
4,947 |
|
|
|
5,061 |
|
Non-current operating lease
liabilities |
|
|
1,913 |
|
|
|
- |
|
Convertible note related party
(net) |
|
|
7,199 |
|
|
|
7,158 |
|
Convertible note (net) |
|
|
14,587 |
|
|
|
14,530 |
|
Deferred gain on sale of
property |
|
|
727 |
|
|
|
842 |
|
Deferred tax liability |
|
|
93 |
|
|
|
92 |
|
Other long-term liabilities |
|
|
5,423 |
|
|
|
5,474 |
|
Total long-term
liabilities |
|
|
57,528 |
|
|
|
56,291 |
|
Total
liabilities |
|
|
140,027 |
|
|
|
129,245 |
|
Commitments and contingencies |
|
|
|
|
Equity |
|
|
|
|
Preferred Stock—Authorized 150,000
shares, no shares issued or outstanding at March 31, 2019
and December 31, 2018 |
|
|
— |
|
|
|
— |
|
Common Stock—no par value
25,000,000 shares authorized, 19,682,713 and 19,645,773
shares issued and outstanding at March 31, 2019 and December 31,
2018, respectively |
|
|
130,492 |
|
|
|
130,260 |
|
Paid in capital |
|
|
2,582 |
|
|
|
2,674 |
|
Retained deficit |
|
|
(40,851 |
) |
|
|
(41,761 |
) |
Accumulated other comprehensive
loss |
|
|
(3,789 |
) |
|
|
(3,169 |
) |
Total equity |
|
|
88,434 |
|
|
|
88,004 |
|
Total liabilities and
equity |
|
$ |
228,461 |
|
|
$ |
217,249 |
|
|
|
|
|
|
MANITEX INTERNATIONAL, INC.CONSOLIDATED
STATEMENTS OF OPERATIONS(In thousands, except for
share and per share amounts)
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
|
2019 |
|
2018 |
|
|
Unaudited |
|
Unaudited |
Net revenues |
|
$ |
57,420 |
|
|
$ |
56,675 |
|
Cost of
sales |
|
|
45,472 |
|
|
|
45,575 |
|
Gross profit |
|
|
11,948 |
|
|
|
11,100 |
|
Operating
expenses |
|
|
|
|
Research and
development costs |
|
|
687 |
|
|
|
652 |
|
Selling,
general and administrative expenses |
|
|
9,496 |
|
|
|
9,986 |
|
Total operating expenses |
|
|
10,183 |
|
|
|
10,638 |
|
Operating income |
|
|
1,765 |
|
|
|
462 |
|
Other
(expense) income |
|
|
|
|
Interest
expense |
|
|
(1,131 |
) |
|
|
(1,553 |
) |
Interest
income |
|
|
69 |
|
|
|
— |
|
Change in
fair value of securities held |
|
|
810 |
|
|
|
187 |
|
Foreign
currency transaction loss |
|
|
(433 |
) |
|
|
(119 |
) |
Other
expense |
|
|
(20 |
) |
|
|
(354 |
) |
Total other expense |
|
|
(705 |
) |
|
|
(1,839 |
) |
Income (loss) before income taxes and loss in
equity
interest |
|
|
1,060 |
|
|
|
(1,377 |
) |
Income tax
expense (benefit) |
|
|
150 |
|
|
|
(301 |
) |
Loss on
equity investments (including loss on sale of shares) |
|
|
— |
|
|
|
(409 |
) |
Net
Income (loss) |
|
|
910 |
|
|
|
(1,485 |
) |
Earnings (loss) Per Share |
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
(0.09 |
) |
Diluted |
|
$ |
0.05 |
|
|
$ |
(0.09 |
) |
Weighted average common shares outstanding |
|
|
|
|
Basic |
|
|
19,678,081 |
|
|
|
16,666,937 |
|
Diluted |
|
|
19,694,973 |
|
|
|
16,666,937 |
|
|
|
|
|
|
Reconciliation of GAAP Operating Income
to Adjusted EBITDA (in thousands)
|
Three Months Ended |
|
March 31, 2019 |
March 31, 2018 |
Operating income |
$1,765 |
$462 |
Adjustments related to plant closing, restatement, restricted
stock, restructuring and other expenses |
819 |
1,942 |
Adjusted operating income |
2,584 |
2,404 |
Depreciation and amortization |
1,183 |
1,293 |
Adjusted EBITDA |
$3,767 |
$3,697 |
Adjusted EBITDA % to sales |
6.6% |
6.5% |
|
Reconciliation of GAAP Net Income (Loss)
to Adjusted Net Income (in thousands)
|
Three Months Ended |
|
March 31, 2019 |
March 31, 2018 |
Net income (loss) |
$910 |
($1,485) |
Adjustments related to change in fair value of securities, foreign
exchange, plant closing, restatement, restricted stock,
restructuring, and other expenses (Including net tax impact) |
258 |
2,273 |
Adjusted net Income |
1,168 |
788 |
Weighted diluted shares outstanding |
19,694,973 |
16,666,937 |
Diluted income (loss) per share as reported |
$0.05 |
($0.09) |
Total EPS effect |
$0.01 |
$0.14 |
Adjusted diluted earnings per share |
$0.06 |
$0.05 |
|
Change in Change in Fair Market Value of Securities,
Foreign Exchange, Restatement, Restricted Stock, Restructuring,
Plant Closing and other Expenses
|
Three Months Ended |
Pre-tax
adjustments |
March 31, 2019 |
March 31, 2018 |
Change in fair market value
of securities |
($810) |
($187) |
Foreign exchange |
433 |
119 |
Restatement expenses |
49 |
1,197 |
Restricted stock |
159 |
123 |
Restructuring |
354 |
580 |
Plant closing |
44 |
- |
Other expenses |
213 |
804 |
Total pre-tax adjustments |
442 |
2,636 |
Net tax impact (including discrete items) |
(184) |
(363) |
Total adjustments |
$258 |
$2,273 |
|
|
|
Backlog
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.
|
Mar 31, 2019 |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Backlog |
$74,885 |
$66,735 |
$60,477 |
$75,601 |
$87,860 |
Change Versus Current Period |
|
12.2% |
23.8% |
-0.9% |
-14.8% |
|
Net Debt
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, 2019 |
December 31, 2018 |
Cash & marketable equity securities |
$24,093 |
$24,508 |
|
|
|
Notes payable - short term |
$23,835 |
$22,706 |
Current portion of capital leases |
436 |
422 |
Notes payable - long term |
22,639 |
23,134 |
Capital lease obligations |
4,947 |
5,061 |
Convertible notes |
21,786 |
21,688 |
Total debt |
$73,643 |
$73,011 |
Net Debt |
$49,550 |
$48,503 |
|
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