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| 8-K - FORM 8-K - Manitex International, Inc. | d8k.htm |
 Manitex
International, Inc.
Corporate Presentation
(NASDAQ: MNTX)
May 2011
“Focused
manufacturer of
engineered lifting
equipment”
Exhibit 99.1 |
 2
Forward Looking Statements &
Non GAAP Measures
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of
1995: This presentation 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 presentation 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. Non-GAAP Measures: Manitex
International from time to time refers to various non-GAAP (generally
accepted accounting principles) financial measures in this presentation.
Manitex believes that this
information is useful to understanding its operating results without the impact of
special items. See Manitex’s
first quarter 2011 earnings release on the Investor Relations section of our website
www.manitexinternational.com
for a description and/or reconciliation of these measures.
“Focused
manufacturer of
engineered lifting
equipment” |
 3
Company Snapshot
Company Description
Manitex
International,
Inc.
provides
engineered
lifting
solutions. The company operates through two segments,
Lifting Equipment and Equipment Distribution. The Lifting
Equipment segment designs, manufactures, and
distributes boom trucks and crane products. The
Equipment Distribution segment sells, services and
distributes lifting equipment to end users. The company
was
formerly
known
as
Veri-Tek
International,
Corp.
and
changed
its
name
to
Manitex
International,
Inc.
in
May
2008. Manitex
International was founded in 1993 and is
based in Bridgeview, Illinois.
Financial Summary
Total Enterprise Value
(05/06/2011):
$101.0 million
Market Cap (05/06/2011):
$67.1 million
2010 Revenue:
$95.9 million
2010 Net Income:
$2.1 million
2010 EBITDA:
$8.7 million
Stock Price (05/06/2011):
$5.88
Ticker / Exchange:
MNTX / NASDAQ
LTM
Share
Price
Performance
(05/05/2010
–
05/06/2011)
Equity Capitalization
Diluted shares outstanding
03/31/2011):
11.6 million
Warrants outstanding (03/31/2011):
$4.4 million
Avg. warrant strike price
$4.59
“Focused
manufacturer of
engineered lifting
equipment”
$5.88
1.75
2.25
2.75
3.25
3.75
4.25
4.75
5.25
5.75
6.25
6.75 |
 4
Corporate Overview
Manitex
International
“Focused
manufacturer of
engineered lifting
equipment”
•Global provider of boom trucks, sign cranes, specialized
material handling equipment, and container handling
equipment primarily used in commercial, port, state, local
and international government, and military applications
•Major industries served include energy (extraction and
processing), utilities, railroads, commercial building, rental
fleets, cargo transportation, infrastructure development
and port and inter-modal operations
•Historically serving North American markets; recent
international diversification and growth
•Business Model based in part on an aggressive program
of making accretive acquisitions of complementary
businesses
•High margin niche markets
•Including two in 2009 (Badger and Load King) and
CVS rental agreement in July 2010
•Utilize seller financing (favorable terms, limited
covenants)
Manitex
International
Businesses |
 5
Product Overview
Manitex, Manitex Liftking, Badger, CVS
“Focused
manufacturer of
engineered lifting
equipment”
•
Manitex specializes in
engineered lifting
equipment and its
product family includes
Manitex Boom Trucks,
SkyCrane Aerial Platforms
and Sign Cranes
•
Manufacturer of a complete
line of RT Forklifts, Special
Mission Oriented Vehicles,
Carriers, Heavy Material
Handling Transporters and
Steel Mill Equipment
•
Badger Equipment has
manufactured specialized
earthmoving, railroad and
material handling
equipment since 1945 and
has built over 10,000 units
during its existence.
•
Manufacturer of container
handling equipment for the
global port and inter-modal
sectors. Products include reach
stackers, laden and unladen
container forklifts and straddle
carriers |
 6
Select Financial Data
“Focused
manufacturer of
engineered lifting
equipment”
$000, except percentages
2007
2008
2009
2010
Revenue
$106,946
$106,341
$55,887
$95,875
Gross Margin
18.6%
16.4%
20.0%
24.3%
EBITDA
8,461
5,416
1,982
8,676
EBITDA Margin (%)
7.9%
5.1%
3.5%
9.0%
Net Income
2,126
1,799
3,639 *
2,109
* Includes gain on bargain purchase of $3,815
$106,946
$106,341
$55,887
$95,875
$8,461
$5,416
$1,982
$8,676
$1,799
$3,639
$2,109
$2,126
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2007
2008
2009
2010
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Revenue
EBITDA
Net Income |
 7
Key Management
“Focused
manufacturer of
engineered lifting
equipment”
Name & Title
Experience
David Langevin
Chairman & CEO
20+ years principally with Terex
Andrew Rooke
President & COO
20+ years principally with Rolls Royce, GKN Sinter
Metals, Off-Highway & Auto Divisions
David Gransee
CFO & Treasurer
Formerly with Arthur Andersen, 15+ years with Eon
Labs (formerly listed)
Robert Litchev
President –
Material Handling & SVP
International Distribution
10+ years principally with Terex
Scott Rolston
SVP Sales & Marketing –
Manitex
International
13+ years principally with Manitowoc |
 8
Investment Highlights
“Focused
manufacturer of
engineered lifting
equipment”
1)
2010 Solid return to Operating and Net profitability
–
Sales rebounded 72% in 2010
–
Backlog up 80% to $40 million at 12/31/2010
–
Gross margin and EBITDA margin expansion continues as a result of continued
emphasis on cost control
•
2010 gross margin 24%, $6.7m increase in EBITDA
•
2010 EBITDA margin of 9% was the highest achieved
2)
Experienced senior management
–
Senior management has over 70 years of collective experience from well-known
industrial leaders such as Terex, Manitowoc, Rolls Royce, GKN Sinter
Metals, Off-Highway and Auto Divisions and Genie
3)
The Company has a global presence with more than 20,000 units
operating worldwide spanning equipment dealerships throughout the
country
–
High
recurring
parts
revenue
stream:
approximately
20%
of
total
sales
(average
40%
margin)
4)
Growing market share
–
Increased penetration in oil and gas, power grid and rail
–
Rebounding commercial sales
–
Expanding international sales
5)
Focused on earnings, cash flow and working capital management
|
 9
Company Timeline
“Focused
manufacturer of
engineered lifting
equipment”
March 2002:
Manitowoc (NYSE:MTW)
acquires Grove.
January 2003:
Manitowoc divests
Manitex
December 2009:
Acquire Load King
Trailers
July 2009 Acquire Badger
Equipment Co
November 2006: Veri-
Tek Acquires LiftKing
July 2007: VCC
acquires Noble
forklift
August 2007: Sale of assets and
closure of legacy VCC business
May 2008: Name changed to Manitex International
and listed on Nasdaq (MNTX)
October 2008:
Crane &
Machinery and
Schaeff Forklift
acquired
July 2006: Manitex
merges into Veri-Tek,
Intl. (VCC)
2002
2003
2004
2005
2006
2007
2008
2009
2010
July 2010 :CVS
Operating Agreement |
 10
Recent Transactions (subject to approval)
CVS
“Focused
manufacturer of
engineered lifting
equipment”
•
July 1 2010 MNTX subsidiary, CVS Ferrari srl, entered into an agreement to
rent certain assets of CVS SpA
in Liquidation, on an exclusive basis
•
CVS SpA, located near Milan, Italy, designed and manufactured a range of
reach stackers and associated lifting equipment for the global container
handling market
•
CVS had 2008 annual sales of $106 million prior to the global downturn
•
The rental agreement has been filed with the Italian Court and includes an
offer to purchase the business at the conclusion of the Italian insolvency
process (“Concordato
Preventivo”). Rental period could extend for up to
two years but creditors approval was received in May 2011 so expect
completion Q3-2011
•
Sales and profits are consolidated into Manitex
International from July
2010. No debt or liabilities of “old CVS”
were assumed. Revenues currently
tracking at approx $2 million per month
•
Acquisition is transformational:
•
Adds global product offering
•
European manufacturing and design
•
Adds scale
•
Above average growth profile sectors of containers / ports / inter-
modal |
 Replacement Parts & Service
Consistent Recurring Revenue
“Focused
manufacturer of
engineered lifting
equipment”
•
Recurring revenue of approximately 20% of total sales
•
Spares relate to swing drives, rotating components, and booms among others,
many of which are proprietary
–
Serve additional brands
–
Service team for crane equipment
11 |
 12
Pro-forma Revenues ($ millions)
“Focused
manufacturer of
engineered lifting
equipment”
•
Pro-forma revenues are based on 2007
revenue numbers for each respective
business, regardless of date of acquisition by
Manitex
International
•
We believe Pro-forma revenues are more
representative of revenue opportunity than
revenues in the current phase of the
economic cycle
Manitex, $80.0
Liftking, $26.0
Crane & Machinery, $18.1
Schaeff, $3.3
Noble, $1.1
Badger, $8.0
LoadKing, $20.0
CVS Ferrari, $80.0
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
Pro-forma Annual Revenue |
 13
Increased Market Share as
Market Declined
“Focused
manufacturer of
engineered lifting
equipment”
Boom Truck Crane Market
23.4%
16.7%
20.8%
29.6%
36.1%
32.0%
76.6%
83.3%
79.2%
70.4%
63.9%
68.0%
0.0%
25.0%
50.0%
75.0%
100.0%
2005
2006
2007
2008
2009
2010
Market Share
0
500
1000
1500
2000
2500
3000
Units Shipped
MNTX
Others
Total Units Shipped |
 14
Select Financial Data
“Focused
manufacturer of
engineered lifting
equipment”
$000, except percentages
2007
2008
2009
2010
Revenue
$106,946
$106,341
$55,887
$95,875
Gross Margin
18.6%
16.4%
20.0%
24.3%
EBITDA
8,461
5,416
1,982
8,676
EBITDA Margin (%)
7.9%
5.1%
3.5%
9.0%
Net Income
2,126
1,799
3,639 *
2,109
* Includes gain on bargain purchase of $3,815
$106,946
$106,341
$55,887
$95,875
$8,461
$5,416
$1,982
$8,676
$1,799
$3,639
$2,109
$2,126
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2007
2008
2009
2010
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Revenue
EBITDA
Net Income |
 15
Growth Drivers-
2010 and Beyond
“Focused
manufacturer of
engineered lifting
equipment”
•
World wide improvements in GDP, economic recovery
•
Increased market penetration with product developments and
innovative distribution
•
Leverage synergy with railroad industry
•
Developed products specifically for the following industries: Oil &
Gas, Railroads, Power Grid & Wind Power
•
Any significant governmental infrastructure spending will be a potential
spark to recovery for Manitex
•
International expansion
–
New
dealership
agreements
reached
in
Middle
East,
Russia,
&
with
Caterpillar
Global
Distribution Network
–
Achieved European CE Certification for 50 Ton Cranes in 2009
–
Manitex
International
made
its
first
international
sales
in
2008
and
has
identified
new
markets
to
accelerate
future
growth
(Russian
market
potential
is
estimated
to
be
double that of North America)
–
2010 non -
US sales were over 38% of revenue
•
CVS Ferrari is additive to the Company results |
 16
Summary
“Focused
manufacturer of
engineered lifting
equipment”
Delivering
sound
operational
and
financial
performance
despite
the
historic economic and industry-specific challenges
Poised For Growth
•
Growing market share
•
Increased penetration in oil and gas, power grid and rail
•
Rebound in commercial sales
•
Coordinated distribution of our products worldwide
•
Continued expansion into international markets
•
In the recent past we have scaled our business to match demand and we now
look forward to long term growth
•
Focused on earnings, cash flow and working capital management |
 17
Appendix
“Focused
manufacturer of
engineered lifting
equipment”
Manitex
International, Inc.
Corporate Presentation
May 2011 |
 18
Key figures -
Quarterly
“Focused
manufacturer of
engineered lifting
equipment”
USD thousands
Q1-2010
Q4-2010
Q1-2011
Net sales
$21,970
$29,544
$31,722
% change to prior quarter
44%
7%
Gross profit
5,212
7,660
6,459
Gross margin %
23.7%
25.9%
20.4%
Operating expenses
4,169
5,605
5,207
Net Income
307
932
442
EBITDA
1,823
2,850
2,055
EBITDA % of Sales
8.3%
9.6%
6.5%
Backlog ($ million)
21.8
39.9
47.7
$21,970
$29,544
$31,722
$1,823
$2,850
$2,055
$932
$442
$307
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Q1-2010
Q4-2010
Q1-2011
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Revenue
EBITDA
Net Income |
 19
Summarized Balance Sheet
“Focused
manufacturer of
engineered lifting
equipment”
Current assets
$59,242
$54,703
$40,147
$40,685
Fixed assets
10,387
10,659
11,804
5,878
Other long term assets
39,587
40,155
42,734
39,665
Total Assets
$109,216
$105,517
$94,685
$86,228
Current liabilities
25,413
23,011
14,569
17,062
Long term liabilities
39,786
39,232
39,688
34,152
Total Liabilities
$65,199
$62,243
$54,257
$51,214
Shareholders equity
44,017
43,274
40,428
35,014
Total liabilities & Shareholders equity
$109,216
$105,517
$94,685
$86,228
$000
31-Dec-08
31-Dec-09
31-Dec-10
31-Mar-11 |
 20
Debt & Liquidity
$000
Q1-2011
Q4-2010
Q1-2010
Total Cash
1,441
662
455
Total Debt
35,293
34,019
34,590
Total Equity
44,017
43,274
41,291
Net capitalization
77,869
76,631
75,426
Net debt / capitalization
43.5%
43.5%
45.3%
YTD EBITDA
2,055
8,676
1,823
YTD EBITDA % of sales
6.5%
9.0%
8.3%
•Ebitda
for
Q1-2011
impacted
by
ConExpo
expenditures
of
$0.5m
•N. American revolver facility, based on available collateral at March 31,
2010 was $23.7m. In Italy, additional transactional facilities of $2.4m in
place subject to collateral for CVS. •Cash and N. American revolver
availability at March 31, 2010 $3.9m •Net capitalization is the sum of
debt plus equity minus cash. •Net debt is total debt less cash
“Focused
manufacturer of
engineered lifting
equipment” |
 21
Working Capital
$000
Q1-2010
Q4 2010
Q1 2010
Working Capital
$33,829
$31,692
$27,914
Days sales outstanding
53
60
59
Days payable outstanding
63
62
47
Inventory turns
2.8
2.9
2.6
Current ratio
2.3
2.4
2.9
Operating working capital
38,174
36,763
31,840
Operating working capital %
of LQ sales
30.1%
31.1%
36.2%
•Increase in working capital Q1-2011 v Q4-2010 principally from
increased cash ($0.8m) and inventory ($4.8m), offset by decreased
receivables ($1.1m) and increased accounts payable, accruals & other
liabilities ($1.8m) •Inventory increase v Q4-2010 principally
Manitex cranes and CVS
•Operating working capital improvement to 30% of annualized LQ sales
“Focused
manufacturer of
engineered lifting
equipment” |