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| 8-K - FORM 8-K - Manitex International, Inc. | d395897d8k.htm |
 Manitex International, Inc.
Corporate Presentation
(NASDAQ: MNTX)
August 2012
“Focused manufacturer
of engineered lifting
equipment”
Exhibit 99.1 |
 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 Second Quarter 2012 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”
2 |
 “Focused
manufacturer of
engineered lifting
equipment”
Manitex
International,
Inc.
Niches
Served
Company
Origin
3
Company Snapshot
Global provider of highly specialized and custom configured
cranes, materials and container handling equipment sold
through dealerships
Energy exploration and field development (including Canadian
oil sands and recent oil and natural gas development initiatives
throughout U.S.), power line construction, military, railroads,
port, government/agency
Launched as a private company in 2003, Manitex International
is publicly traded as NASDAQ:MNTX and has steadily grown
organically and as a consolidator in its industry, acquiring
seven branded product lines since going public in 2006
|
 Summary Financials
“Focused
manufacturer of
engineered lifting
equipment”
Financial Summary
Total Enterprise Val. (8/13/2012):
$144.4 million
Market Cap (8/13/2012):
$96.7 million
2011 Revenue:
$142.3 million
2011 Adjusted Net Income
(1)
:
$3.6 million
2011 EBITDA:
$11.1 million
Stock Price (8/13/2012):
$7.91
Ticker / Exchange:
MNTX / NasdaqCM
Capitalization
$000, except percentages
2007
2008
2009
2010
2011
Revenues
$106,946
$106,341
$55,887
$95,875
$142,291
Gross Margin (%)
18.6%
16.4%
20.0%
24.3%
20.6%
EBITDA
$8,461
$5,416
$1,982
$8,676
$11,120
EBITDA Margin (%)
7.9%
5.1%
3.5%
9.0%
7.8%
Adjusted Net income
$2,126
$1,799
$3,639
(2)
$2,109
$3,561
(1)
Backlog
$45,100
$15,703
$22,122
$39,905
$83,700
(1) 2011 excludes $1,200,000 (pre-tax) for present value of legal settlement
agreement as of 12/31/11 (2) 2009 GAAP Net Income includes gain on bargain
purchase of $3,815 Recent Announcements
7/9/12-
Announced 79% Backlog Increase to $149.6M (6/30/2012)
7/12/12-Announced $4.125M private placement (500k shares @ $8.25)
4
Diluted shares outstanding (6/30/2012):
11.7 million
Total Debt (6/30/2012):
$49.4 million
Shares outstanding (8/13/2012)
12.2 million |
 Brand
Products
End Markets
Drivers
•
Boom trucks and cranes
•
Sign cranes
•
Parts
•
Energy exploration
•
Power transmission
•
Industrial projects
•
Infrastructure development
•
Strong end market demand for specialized, competitively
differentiated products for oil, gas, and energy sectors
•
Product development
•
Rough terrain cranes
•
Specialized construction
equipment
•
Parts
•
Railroad
•
Construction
•
Refineries
•
Municipality
•
Equipment replacement cycle in small tonnage flexible cranes for
refinery market
•
More efficient product offering across end markets
•
Rough terrain forklifts
•
Special mission-oriented
vehicles
•
Custom specialized carriers
•
Parts
•
Military
•
Utility
•
Ship building
•
Commercial
•
Steady, profitable growth from both commercial and military
application of products
•
Custom trailers
•
Hauling systems for heavy
equipment transport
•
Parts
•
Energy
•
Mining
•
Railroad
•
Commercial construction
•
U.S. energy exploration build-out
•
Oil and gas exploration
•
General infrastructure construction
•
Reach stackers
•
Container handling forklifts
•
Parts
•
Global container market
•
International container market and global trade
•
Re-establishing customer relationships and select product categories
•
Repair parts
•
Crane dealership
•
North American Equipment
Exchange
•
Distributor of Terex
products
•
Replacement parts
•
Used equipment
•
General construction environment
5
Operating Companies |
 “Focused manufacturer
of engineered lifting
equipment”
•
Engineered lifting equipment
•
Manitex boom trucks
•
SkyCrane aerial platforms
•
Sign cranes
•
RT forklifts
•
Special mission-oriented
vehicles
•
Carriers
•
Heavy material handling
•
Transporters & steel mill
equipment
•
Specialized earthmoving,
railroad and material
handling equipment since
1945
•
Has built ~ 10,000 units
since 1945
•
Manufacturer of container
handling equipment for the
global port and inter-modal
sectors.
•
Products: reach stackers,
laden and unladen container
forklifts & straddle carriers
Product Overview
6 |
 Growth in End
Markets
•
Niche markets with solid demand drivers for products
•
Increased penetration in the oil and gas, as well as power grid and rail
industries •
Demand
in
end
markets
–
such
as
energy,
railroad,
and
utilities
–
is
expected
to
be
consistently
strong
Flexible Operating
Model
•
Customer focused design strategy
•
Diversified product offering
•
Quickly adapt to changes in demand
•
Commitment to innovation, research, and product development
•
Expected impact from new product launches in 2013
Growth in
Backlog, Revenues,
Earnings & Cash
Flow
•
Nine
consecutive
quarters
of
backlog
growth;
6/30/12
backlog
of
$150M,
a
79%
YTD
•
Full Year 2011 Sales increased 48% to $142M with record EBITDA of $11.1M and
adjusted earnings per share of $0.31 •
Second
Quarter
2012
EBITDA
of
$5.1M
(9.7%
of
sales),
represented
a
68%
Y-o-Y
increase
and
a
quarterly
record
for Manitex
•
Focus on growing bottom line faster than top line; output increases throughout
2012-2013 in North America Broad Industry
& Geographic
Distribution
•
Diversity of end markets offers a cushion in the event of weak demand within any
one or two segments •
North American currently represents ~75% of revenue, mitigating concerns regarding
the European economic climate •
Existing global presence (~20K units worldwide)
•
International dealer network provides footprint for on-going international
growth Experienced
Management
•
Seasoned senior management with over 70 years of collective industry
experience •
Successfully integrated multiple acquisitions
•
Significant management ownership
7
Investment Highlights
“Focused manufacturer
of engineered lifting
equipment” |
 “Focused manufacturer
of engineered lifting
equipment”
•
Strong brand history
•
Acknowledged product development record
•
International dealers enable us to follow demand
•
Focused on specialized equipment and niche end-
markets
Core competencies
Products
Superior ROI
•
Niche Markets
•
Broad end-user base
•
Highly customized/specialized; will configure-to-
order
•
Parts and service an important part of business
model
•
Lower capital commitment for a boom truck vs.
competitors’
custom cranes of similar lifting
capacity
•
Usually less or no special permitting vs.
competitors’
custom cranes of similar lifting
capacity
8
Competitive Positioning |
 “Focused manufacturer
of engineered lifting
equipment”
Lifting Equipment Market Overview
Market
Overview
•
Principal
products
are
boom
truck
cranes
that
vary
in
height
and
tonnage
capacity
•
Smaller tonnage cranes (<30 tons) are more focused on general construction
markets while larger cranes (30+ tons) focus on power line construction
and energy •
Larger tonnage cranes have had higher demand since economic downturn
•
Boom truck cranes are typically less expensive than rough terrain and all
terrain cranes Manitex’s
Market
Position
•
Broader market has seen ~65% of cranes shipped in the smaller tonnage range,
while ~75% of Manitex shipments have been in the larger tonnage
•
Focus on being a niche player allows specialization tailored towards
customers’ needs
•
Production distribution skewed toward larger tonnage machines
•
First to launch 50-ton crane (May 2007)
•
Have
developed
a
series
of
products
around
the
demand
for
larger
tonnage
cranes
Source: Manitex International and MOTACC
9 |
 “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
–
Automated proprietary system implemented in principal operations
Replacement Parts & Service
Consistent Recurring Revenue
10 |
 Potential for Future Growth in
Revenue and EBITDA
“Focused manufacturer
of engineered lifting
equipment”
•
$235M represents
2007 pro-forma
revenues of all
product lines acquired
to date
•
Revenues, EBITDA,
earnings have shown
consistent growth
•
Revenue and backlog
trajectory suggests
recovery may
continue into 2012-
2013
•
Long-term
EBITDA target is
9%-10%
•
2009-2011 CAGR
was 59.6%
Opportunity
Rev:
$55.9M
EBITDA
$2M/3.5%
Backlog:
$22M
2007 Pro-forma
Normal non-peak
year
2009
2010
2011
Rev:
$95.9M
EBITDA
$8.7M/
9.0%
Backlog:
$40M
Rev:
$142.3M
EBITDA
$11.1M/
7.8%
Backlog:
$84M
2013E
$275M
$235M
$220M
48.9% CAGR
43.2% CAGR
40.8% CAGR
4-Year CAGR (using 2009 as base year)
$235M
$M
11
0
50
100
150
200
250
300
350 |
 Experienced Management
Team
“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 –
Manufacturing Operations
10+ years principally with Terex
Scott Rolston
SVP Strategic Planning
13+ years principally with Manitowoc
12 |
 Financial Overview
“Focused manufacturer
of engineered lifting
equipment”
Manitex International, Inc.
August 2012 |
 Key Figures -
Quarterly
“Focused manufacturer
of engineered lifting
equipment”
USD thousands except as noted
Q2-2012
Q2-2011
Q1-2012
Net sales
$52,496
$37,066
$42,849
Gross profit
10,756
7,478
8,576
Gross margin %
20.5%
20.2%
20.0%
Operating expenses
6,560
5,237
6,056
Net Income
2,308
1,029
1,251
EBITDA
5,116
3,042
3,390
EBITDA % of Sales
9.7%
8.2%
7.9%
Backlog ($ million)
$149.6
$50.7
$133.3
14 |
 Summary Balance Sheet
“Focused manufacturer
of engineered lifting
equipment”
$000s
30-Jun-12
31-Dec-11
31-Dec-10
31-Dec-09
31-Dec-08
Current assets
$96,496
$71,209
$54,703
$40,147
$40,685
Fixed assets
10,358
11,017
10,659
11,804
5,878
Other long-term assets
36,192
39,365
40,155
42,734
39,665
Total Assets
$143,046
$121,591
$105,517
$94,685
$86,228
Current liabilities
$44,193
$30,177
$23,011
$14,569
$17,062
Long-term liabilities
48,398
44,620
39,232
39,688
34,152
Total Liabilities
92,591
74,797
62,243
54,257
51,214
Shareholders equity
50,455
46,794
43,274
40,428
35,014
Total liabilities & Shareholders equity
$143,046
$121,591
$105,517
$94,685
$86,228
15 |
 16
Working Capital
“Focused
manufacturer of
engineered lifting
equipment”
$000
Q2-2012
Q4-2011
Working Capital
$52,303
$41,032
Days sales outstanding (DSO)
61
60
Days payable outstanding (DPO)
60
59
Inventory turns
3.1
2.7
Current ratio
2.2
2.4
Operating working capital
64,051
50,007
Operating working capital % of annualized
LQS
30.5%
34.2%
•Major movements in working capital increase Q2-2012 v Q4 2011 of
$11.3m •Receivables ($11.1m), inventory ($11.0m), offset by
increased accounts payable ($8.5m), short term revolving credit
facility ($1.9m) and accrued expenses ($1.9m)
•Inventory:
increases
in
raw
materials
($9.6m)
and
WIP
($1.8m)
to
support
growth
•Operating working capital % decreased compared to Q4-2011, as
revenue growth was achieved in the quarter as planned
|
 17
“Focused
manufacturer of
engineered lifting
equipment”
$000
Q2-2012
Q4-2011
Total Cash
1,728
71
Total Debt
49,379
42,227
Total Equity
50,455
46,794
Net capitalization
98,106
88,950
Net debt / capitalization
48.6%
47.4%
Quarterly EBITDA
5,116
2,876
Quarterly EBITDA % of sales
9.7%
7.9%
•Increase in cash $1.7m
•Increase in debt at 6/30/2012 from 12/31/2011 of $7.2m, ($5.5m net of
cash) •
Increase in lines of credit, equipment finance and Italian working capital finance
$9.4m •
Repayments of $2.3 m on long term debt, including $0.6m paid early during
Q2-2012 •N. American revolver facilities, based on available
collateral at 6/30/12 was $36.8m. •N. American revolver availability at
3/31/12 of $3.2m •July 2012 raised $4.1m (gross) from equity to repay
long term debt in Q3-2012 Debt & Liquidity
•
Net capitalization is the sum of debt plus equity minus cash
•
Net debt is total debt less cash |
 2010
2008
2009
2007
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)
July 2010 : CVS
Operating Agreement
2006
2004
2002
2005
2003
2011
July 2011: Closes
Acquisition of CVS
18 |