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8-K - 8-K - Manitex International, Inc.d689349d8k.htm
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Exhibit 99.1

Manitex International, Inc. Reports Record 2013 Results

Full Year Revenues Increase 19% to $245 Million

Full Year Net Income Increases 26% to $10.2 Million, or $0.80 in EPS

Fourth Quarter Net Income Increases 49% to $3.0 Million, or $0.22 in EPS

Bridgeview, IL, March 6th, 2014 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized material and container handling equipment, today announced fourth quarter and full year 2013 results.

Fourth Quarter and Full Year 2013 Financial Highlights:

 

    2013 net revenues rose 19% to a record $245.1 million, compared to the prior year’s revenue of $205.2 million. For the quarter ended December 31, 2013 net revenues were $65.4 million, representing a 16% year over-year increase from $56.5 million.

 

    2013 net income of $10.2 million increased 26% and earnings per share of $0.80 increased 18% compared to $8.1 million and $0.68 per share for 2012. For the quarter ended December 31, 2013, net income increased 48% to $3.0 million or $0.22 per share, compared to the fourth quarter 2012 net income and earnings per share of $2.0 million and $0.16 respectively.

 

    EBITDA (1) for the full year 2013 was $21.5 million, equal to 8.8% of sales, compared to $17.9 million and 8.7% of sales for 2012, an increase in EBITDA of 20%. For the fourth quarter 2013, EBITDA was $6.2 million or 9.5% of sales, compared to $4.1 million and 7.3% of sales, an increase of 52%.

 

    Consolidated backlog at December 31, 2013 was $77.3 million compared to $130.4 million at December 31, 2012.

 

    Completed a $14.7 million offering of common equity in Q3 2013 with the proceeds used to repay debt.

 

    Strength in orders subsequent to year-end has resulted in backlog expansion to over $100 million.

Chairman and Chief Executive Officer, David Langevin, commented, “We ended 2013 on solid financial footing, with record top-and bottom-line results. While we saw some volatility in market demand throughout the year, we achieved respectable organic growth and also had solid contributions from the acquisitions we made in the year. We are also pleased to report that our backlog in cranes for the start of 2014 is up approximately 50% since year-end, a level that represents our strongest order intake in over eighteen months, and gives us improved visibility for 2014.”

“Excluding the two acquisitions we made in the year, our top line grew at a double-digit pace, driven by the strength of the backlog coming into the year, and our record earnings reflect the higher sales and our ability to manage our cost structure throughout the organization. North America remains our most active geographic market, and we’ve continued to drive execution in an environment in which we are seeing modest economic growth. Despite the fact that crane markets were slightly lower for the year, we achieved growth of 19% year over year in sales and 26% in net income over the same period, with margins consistent with historical ranges. We remain focused on executing our business plan which has been based on our formula of introducing new products and acquiring complementary companies which fit our strategic, product and geographic growth goals to increase our global footprint and market penetration. During 2013 we announced the launch of the first 70 ton crane on a commercial truck chassis, which is an exciting new product that we are featuring at CONEXPO this week. Our

 

(1) EBITDA and adjusted net income are non-GAAP (generally accepted accounting principles in the United States of America) financial measures. These measures may be different from non-GAAP financial measures used by other companies. We encourage investors to review the section below entitled “Non-GAAP Financial Measures.”

— more —


most recent acquisition, Valla, SpA, which serves the industrial electric crane market, exemplifies our strategy to acquire a great company that adds a niche product area or brand that we believe will experience above average growth in the future.

2013 revenues increased $39.8 million or 19.4% from 2012 to $245.1 million, resulting from production increases implemented in response to the high level of crane order backlog at the start of the year together with the impact of the Sabre and Valla acquisitions in the second half of the year. Excluding acquisitions, 2013 revenues increased 15.8%, driven substantially by increased crane and container handling revenues partially offset by a reduction in material handling and specialized trailer revenues. Equipment distribution revenues were flat year over year. Overall, the general economic environment in our markets was one of limited growth. However, our higher tonnage crane products targeted to the energy and power line distribution sectors benefited from the higher levels of activity in these sectors and our lower tonnage equipment increased its market penetration. Our CVS container handling products benefited from expansion and improved distribution into overseas markets. In the fourth quarter of 2013, revenues were $65.4 million, an increase year over year of $8.9 million or 15.8%, of which 60% was from acquisitions. Container handling and crane products had year over year increases of 77% and 16% respectively but these increases were partially offset by reduced material handling and equipment distribution revenues due in part to the timing of order shipments at the year end.

Net income for 2013 of $10.2 million or $0.80 per share was an increase of $2.1 million, (26%) or $0.12. per share, over 2012. A $39.8 million year over year improvement in revenues resulted in a gross profit increase of $6.0 million which offset additional operating expenses ($2.9 million), other expense ($0.5 million) and increased tax expense of $0.4 million. Gross profit of $46.5 million was equal to 19.0% of sales, a slight reduction from the 19.7% gross profit percent for 2012, principally a result of higher manufacturing costs at our material handling facilities due to lower volume and absorption and modest changes in product mix in sales. The year over year increase in operating expense was $2.9 million, or an underlying $1.9 million excluding the businesses acquired in 2013 and the costs of acquisition. Increased R&D expenditures accounted for $0.5 million of the increase as a number of new products such as the 70 ton Manitex truck crane, were launched in the year. SG&A expense increased $1.5 million largely from increased selling expenses from an expansion in the sales organization, commissions and other selling related costs together with approximately $0.3 million of additional performance related compensation. In total SG&A as a percent of revenue declined in 2013 to 10.6% from 11.5% in 2012.

Net income for the fourth quarter of 2013 was $3.0 million or $0.22 per share compared to $2.0 million and $0.16 per share for the fourth quarter of 2012, an increase in net income of $1.0 million or 48.5%. A sales improvement of $8.9 million resulted in a gross profit increase of $2.5 million which offset additional operating expenses of $0.7 million, other expenses of $0.2 million and an increase in tax of $0.5 million. Gross profit was equal to 19.5% of sales, an increase from 2012 quarter four of 120 basis points resulting from improved mix in sales and improved production efficiencies. Operating expenses excluding the impact of newly acquired businesses increased $0.5 million compared to the fourth quarter of 2012 largely from increased selling expenses. In total, SG&A in quarter four of 2013 reduced to 10.6% of sales compared to 11.5% in the same period of 2012.

Andrew Rooke, Manitex International President and Chief Operating Officer, commented, “2013 results were positive on several fronts, beyond the top- and bottom-line. The production increase that we implemented at our crane facilities has enabled us to meet demand, which of course, was the driver of our net sales. Along with the $40 million in higher sales, we also saw a 90 basis point reduction in SG&A as a percentage of sales to 10.6%, so margins are steady, despite the challenged economy. And while the higher production and increase in sales took our backlog down to a still healthy $77.3 million, we have seen a nice uptick in orders thus far in 2014. Our 70-ton crane, which we introduced during the year, has the potential to exceed the success of our 50 ton crane which now accounts for over $50 million in revenue, annually. Our balance sheet at December 31 2013 remained in a strong position, as reflected in our current ratio of 2.5, our net debt to capitalization ratio of 36.2%, improved from 44.2% at December 31, 2012, and our interest coverage ratio remained consistent with the prior year at 7.3 times. With EBITDA of $21.5 million for the full year, our debt to EBITDA ratio of 2.5 times is also healthy and gives us flexibility in terms of how we will achieve our growth objectives.”


Conference Call:

Management will host a conference call at 4:30 p.m. Eastern Time today to discuss the results with the investment community. Anyone interested in participating should call 1-877-941-2068 if calling within the United States or 1-480-629-9712 if calling internationally. A replay will be available until March 13, 2014 which can be accessed by dialing 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use passcode 4669503 to access the replay.

The call will also be accompanied by a webcast over the Internet with slides, which are also accessible at the Investor Relations section of the Company’s corporate website at www.manitexinternational.com.

About Manitex International, Inc.

Manitex International, Inc. designs, manufactures and markets a portfolio of highly engineered and customizable lifting, material and container handling equipment, spanning boom truck, telescopic, rough terrain and industrial cranes, reach stackers and associated container handling equipment, rough terrain forklifts, mobile liquid and solid containment solutions, and specialized trailers and mission oriented vehicles, including parts support. We have accumulated nearly a dozen brands since going public in 2006 and operate internationally through eight subsidiaries with design and manufacturing facilities in the USA, Canada and Italy.

Manitex Inc, in Georgetown, TX, manufactures a comprehensive line of boom truck and telescopic cranes and sign cranes , primarily used in industrial projects, energy exploration and infrastructure development, including roads, bridges, and commercial construction. Badger Equipment Company, in Winona, MN, manufactures specialized rough terrain and industrial cranes and primarily serves the needs of the construction, municipality, and railroad industries. Our Italian subsidiary, CVS Ferrari, srl, designs and manufactures a range of reach stackers and associated lifting equipment for the global container handling market. Our Manitex Liftking subsidiary is a provider of material handling equipment including the Noble straight-mast rough terrain forklift product line, Lowry high capacity cushion tired forklift as well as specialized carriers, heavy material handling transporters and steel mill equipment. Manitex Liftking’s rough terrain forklifts are used in commercial applications and by the world’s largest military and peace keeping organizations. Our subsidiary, Manitex Load King located in Elk Point, South Dakota is a manufacturer of specialized engineered trailers and hauling systems, typically used for transporting heavy equipment. Manitex Sabre based in Knox, Indiana, builds mobile specialized tanks for liquid storage and containment solutions for a variety of end markets such as petrochemical, waste management and oil and gas drilling. Manitex Valla located in Piacenza, Italy, manufactures a full range of mobile precision pick and carry cranes from 2 to 90 tons, using electric, diesel, and hybrid power options with configurable special applications designed specifically to meet the needs of its customers.

Our Crane and Machinery division is a Chicago based distributor of cranes including Terex truck and rough terrain cranes, PM knuckle boom cranes and our own Manitex International brands. Crane and Machinery provides aftermarket service in its local market as well as being a leading distributor of OEM crane parts, supplying parts to customers throughout the United States and internationally. The division also provides a wide range of used and refurbished lifting and construction equipment of various ages and conditions as well as operating a rental fleet of equipment to the Tri-state area.


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.

 

Company Contact        
Manitex International, Inc.      Hayden IR   
David Langevin      Peter Seltzberg   
Chairman and Chief Executive Officer      Investor Relations   
(708) 237-2060      646-415-8972   
djlangevin@manitexinternational.com      peter@haydenir.com   


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except for share and per share amounts)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2013     2012     2013     2012  
     Unaudited     Unaudited     Unaudited     Unaudited  

Net revenues

   $ 65,431      $ 56,524      $ 245,072      $ 205,249   

Cost of sales

     52,652        46,202        198,596        164,785   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     12,779        10,322        46,476        40,464   

Operating expenses

        

Research and development costs

     828        537        2,912        2,457   

Selling, general and administrative expenses

     6,931        6,509        26,026        23,548   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     7,759        7,046        28,938        26,005   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     5,020        3,276        17,538        14,459   

Other income (expense)

        

Interest expense

     (765     (612     (2,946     (2,457

Foreign currency transaction (loss) gain

     (23     (21     (95     (110

Other income

     (59     4        (50     6   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (847     (629     (3,091     (2,561
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     4,173        2,647        14,447        11,898   

Income tax

     1,182        633        4,269        3,821   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 2,991      $ 2,014      $ 10,178      $ 8,077   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share

        

Basic

   $ 0.22      $ 0.16      $ 0.80      $ 0.68   

Diluted

   $ 0.22      $ 0.16      $ 0.80      $ 0.68   

Weighted average common share outstanding

        

Basic

     13,760,918        12,256,237        12,671,205        11,948,356   

Diluted

     13,821,352        12,266,867        12,717,565        11,957,458   


MANITEX INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

     As of December 31,  
     2013      2012  
     Unaudited      Unaudited  
ASSETS      

Current assets

     

Cash

   $ 6,091       $ 1,889   

Trade receivables (net)

     38,170         36,189   

Accounts receivable finance

     326         276   

Other receivables

     1,775         2,761   

Inventory (net)

     72,734         61,290   

Deferred tax asset

     1,272         1,166   

Prepaid expense and other

     1,669         1,206   
  

 

 

    

 

 

 

Total current assets

     122,037         104,777   
  

 

 

    

 

 

 

Accounts receivable finance

     —           307   

Total fixed assets (net)

     11,143         10,297   

Intangible assets (net)

     24,036         18,442   

Deferred tax asset

     2,117         2,259   

Goodwill

     22,366         15,283   

Other long-term assets

     1,031         139   
  

 

 

    

 

 

 

Total assets

   $ 182,730       $ 151,504   
  

 

 

    

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY      

Current liabilities

     

Notes payable—short term

   $ 6,910       $ 6,218   

Revolving credit facilities

     2,707         875   

Current portion of capital lease obligations

     1,812         1,040   

Accounts payable

     24,974         25,101   

Accounts payable related parties

     789         839   

Accrued expenses

     8,894         7,745   

Other current liabilities

     1,930         1,533   
  

 

 

    

 

 

 

Total current liabilities

     48,016         43,351   
  

 

 

    

 

 

 

Long-term liabilities

     

Revolving term credit facilities

     37,306         34,357   

Deferred tax liability

     4,074         4,269   

Notes payable

     2,512         2,648   

Capital lease obligations

     2,984         4,000   

Deferred gain on sale of building

     1,648         2,028   

Other long-term liabilities

     1,199         1,318   
  

 

 

    

 

 

 

Total long-term liabilities

     49,723         48,620   
  

 

 

    

 

 

 

Total liabilities

     97,739         91,971   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity

     

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at December 31, 2013 and December 31, 2012

     —          —    

Common Stock—no par value, authorized, 20,000,000 shares authorized issued and outstanding, 13,801,277 and 12,268,443 at December 31, 2013 and December 31, 2012, respectively

     68,554         53,040   

Paid in capital

     1,191         1,098   

Retained earnings (deficit)

     14,857         4,679   

Accumulated other comprehensive income

     389         716   
  

 

 

    

 

 

 

Total shareholders’ equity

     84,991         59,533   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 182,730       $ 151,504   
  

 

 

    

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Thousands of Dollars)

 

     For the years ended December 31,  
     2013     2012     2011  
     Unaudited     Unaudited     Unaudited  

Cash flows from operating activities:

    

Net income

   $ 10,178      $ 8,077      $ 2,780   

Adjustments to reconcile net income to cash provided by operating activities:

    

Depreciation and amortization

     3,945        3,498        3,336   

Legal settlement

     —         —         1,183   

Provisions for allowance for doubtful accounts

     172        17        25   

Gain on debt restructuring

     —         —         (194

(Gain) loss on disposal of assets

     (100     (119     62   

Deferred income taxes

     (168     181        1,089   

Inventory reserves

     47        1        316   

Reserves for uncertain tax positions

     (83     183        —    

Stock based deferred compensation

     664        226        104   

Changes in operating assets and liabilities:

    

(Increase) decrease in accounts receivable

     1,653        (12,494     (5,597

(Increase) decrease in accounts receivable finance

     271        378        (927

(Increase) decrease in inventory

     (8,852     (17,187     (12,484

(Increase) decrease in prepaid expenses

     (424     117        389   

(Increase) decrease in other assets

     (892     11        (99

Increase (decrease) in accounts payable

     (4,079     6,702        4,297   

Increase (decrease) in accrued expense

     (89     2,765        478   

Increase (decrease) in other current liabilities

     (131     1,168        (165

Increase (decrease) in other long-term liabilities

     (36     (8     —    
  

 

 

   

 

 

   

 

 

 

Net cash (used) for provided by operating activities

     2,076        (6,484     (5,407
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

    

Proceeds from sale of fixed assets

     139        212        289   

Purchase of property and equipment

     (1,215     (1,125     (610

Acquisition of business assets

     (13,000     (345     (1,585

Investment in intangibles except goodwill

     —         —         (12
  

 

 

   

 

 

   

 

 

 

Net cash used for investing activities

     (14,076     (1,258     (1,918
  

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

    

New borrowings term loan

     15,000        —          —     

Repayment of term loan

     (15,000     —          —     

Net proceeds of stock offering

     13,927        3,781        —    

Borrowing on revolving credit facilities

     5,409        9,221        6,009   

Net (repayments) borrowings on working capital facilities

     (1,960     4,181        1,600   

Proceeds from exercise of warrants

     —         —         1,096   

New borrowings—notes payable

     809        764        4,647   

Note payments

     (916     (7,884     (5,868

Repayment on capital lease obligations

     (1,185     (795     (578

Excess tax benefits related to vesting of restricted stock

     86     

Shares repurchased for income tax withholding on share-based compensation

     (70     —          (12
  

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     16,100        9,268        6,894   
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate change on cash

     102        292        (160

Net increase (decrease) in cash and cash equivalents

     4,100        1,526        (431

Cash and cash equivalents at the beginning of the year

     1,889        71        662   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

   $ 6,091      $ 1,889      $ 71   
  

 

 

   

 

 

   

 

 

 


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 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 these 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 or twelve month period ended December 31, 2013, unless otherwise indicated.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measure: “EBITDA” (earnings before interest, tax, depreciation and amortization). This non-GAAP term, as defined by the Company, may not be comparable to similarly titled measures used by other companies. EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA 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 net income to EBITDA is provided below.

The Company’s management believes that EBITDA and EBITDA as a percentage of sales represent key operating metrics for its business. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a key indicator used by management to evaluate operating performance. While EBITDA is 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 this measure is useful to investors in assessing our capital expenditure and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of EBITDA to GAAP financial measures for the three and twelve month periods ended December 31, 2013 and 2012 is included with this press release below and with the Company’s related Form 8-K.


Reconciliation of GAAP Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in thousands)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2013
    December 31,
2012
    December 31,
2013
    December 31,
2012
 

Net income

     2,991        2,014        10,178        8,077   

Income tax

     1,182        633        4,269        3,821   

Interest expense

     765        612        2,946        2,457   

Foreign currency transaction losses (gain)

     23        21        95        110   

Other (income) expense

     59        (4     50        (6

Depreciation & Amortization

     1,205        826        3,945        3,498   

Earnings before interest, taxes, depreciation and amortization (EBITDA)

   $ 6,225      $ 4,102      $ 21,483      $ 17,957   

EBITDA % to sales

     9.5     7.3     8.8     8.7

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.

 

     December 31,
2013
     December 31,
2012
 

Backlog

   $ 77,281       $ 130,352   

12/31/2013 increase v prior period

        (40.7 %) 

Current Ratio is calculated by dividing current assets by current liabilities.

 

     December 31,
2013
     December 31,
2012
 

Current Assets

   $ 122,037       $ 104,777   

Current Liabilities

   $ 48,016         43,351   

Current Ratio

     2.5         2.4   

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 and lines of credit. Debt to EBITDA ratio is calculated by dividing total debt at the balance sheet date by trailing twelve month EBITDA.

 

     December 31,
2013
     December 31,
2012
 

Current portion of long term debt

   $ 6,910       $ 6,218   

Current portion of capital lease obligations

     1,812         1,040   

Revolving credit facilities

     2,707         875   

Revolving term credit facilities

     37,306         34,357   

Notes payable – long term

     2,512         2,648   

Capital lease obligations

     2,984         4,000   
  

 

 

    

 

 

 

Debt

   $ 54,231       $ 49,138   
  

 

 

    

 

 

 

Annual EBITDA

   $ 21,483       $ 17,957   

Debt to EBITDA Ratio

     2.5         2.7   

Interest Cover is calculated by dividing EBITDA (Earnings before interest, tax, depreciation and amortization) for the trailing twelve month period (January 1 to December 31) by interest expense as reported in the Consolidated Statement of Income for the same period.

 

     12 Month Period
January 1, 2013 to
December 31, 2013
     12 Month Period
January 1, 2012 to
December 31, 2012
 

EBITDA

   $ 21,483       $ 17,957   

Interest Expense

     2,946         2,457   

Interest Cover Ratio

     7.3         7.3   

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.

Manufacturing Expenses include manufacturing wages, salaries, fixed and variable overhead costs.

Operating Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus other receivables, 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,
2013
    December 31,
2012
 

Trade receivables (net)

   $ 38,170      $ 36,189   

Other receivables

     1,775        2,761   

Inventory (net)

     72,734        61,290   

Less: Accounts payable

     25,763        25,940   

Total Operating Working Capital

   $ 86,916      $ 74,300   

% of Trailing Three Month Annualized Net Sales

     33.2     32.9

Trailing Twelve Months EBITDA is calculated by adding the reported EBITDA for the past 4 quarters.

 

Three Months Ended:    EBITDA  

March 31, 2013

   $ 4,121   

June 30, 2013

     5,513   

September 30, 2013

     5,624   

December 31, 2013

     6,225   

Trailing Twelve Months EBITDA

     21,483   

Trailing Three Month Annualized Net Sales is calculated using the net sales for quarter, multiplied by four.

 

     Three Months Ended  
     December 31,
2013
     December 31,
2012
 

Net sales

   $ 65,431       $ 56,524   

Multiplied by 4

     4         4   

Trailing Three Month Annualized Net Sales

   $ 261,724       $ 226,096   

Working capital is calculated as total current assets less total current liabilities

 

     December 31,
2013
     December 31,
2012
 

Total Current Assets

   $ 122,037       $ 104,777   

Less: Total Current Liabilities

     48,016         43,351   

Working Capital

   $ 74,021       $ 61,426