Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Manitex International, Inc. | d735759d8k.htm |
Exhibit 99.1
|
|
Manitex International, Inc.
Corporate Presentation
(NASDAQ: MNTX)
May 2014
|
|
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 Q1 2014 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
5/28/2014 Nasdaq: MNTX 2
|
|
Company Snapshot
Manitex International, Inc.
Niches Served
Company Origin
Global provider of highly specialized and custom configured cranes
Sell materials and container handling equipment through dealerships
Energy exploration and field development (includes Canadian oil sands and recent oil and natural gas initiatives throughout U.S.)
Power line construction
Military
Railroads
Ports
Government/agency
Launched as a private company in 2003
Publicly traded on NASDAQ: MNTX
Steady organic growth
Industry consolidator: acquired seven branded product lines since going public in 2006
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 3
|
|
#44 on Forbes Best Small Companies List for Two Consecutive Years: 2012 & 2013
According to Forbes, this list compiles “an annual ranking of America’s Best Small Companies that have experienced strong growth over the past five years. The 2013 list highlights public companies with sales under $1 billion, which are ranked based on return on equity, sales growth and earnings growth over the past year and the past five years.” Forbes methodology factored in stock performance versus each company’s peer group during the last 12 months.
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 4
|
|
Financial Summary
Key Statistics
Stock Price (at 5/15/14) $15.97
Market Cap (at 5/15/14) $220.4M
Total Ent. Value (5/15/14) $272.0M
2013 Revenue $245.1M
2013 Net Income $10.2M
2013 EBITDA $21.5M
Ticker / Exchange MNTX/NasdaqCM
Capitalization
Basic Shares O/S (at 3/31/13) 13.8M
Diluted Shares O/S (at 3/31/13) 13.8M
Total Debt (at 3/31/13) $52.7M
$000, except % 2009 2010 2011 2012 2013
Revenues $55,887 $95,875 $142,291 $205,249 245,072
Gross Margin (%) 20.0% 24.3% 20.6% 19.7% 19.0%
EBITDA $1,982 $8,676 $11,120 $17,957 21,483
EBITDA Margin (%) 3.5% 9.0% 7.8% 8.7% 8.8%
Net income $3,639(1) $2,109 $2,780 $8,077 $10,178
Backlog $22,122 $39,905 $83,700 $130,352 $77,281
(1) 2009 GAAP Net Income includes gain on bargain purchase of $3,815
Focused manufacturer of engineered lifting equipment 5/28/2014 Nasdaq: MNTX 5
|
|
Product Overview
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 & inter-modal sectors
Products: reach stackers, laden and unladen container forklifts & straddle carriers
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 6
|
|
New Product Overview: 70 ton Manitex TC700
Enters the global truck crane market with competitive price point and benefits of a commercial chassis
CE compliant for international markets
Concept developed collaboratively with customers to meet requirements
Orders in hand will commence shipping in second half of the year
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 7
|
|
Most Recent Acquisition: Valla 11/30/2013
Acquired Valla SpA, a Piacenza, Italy-based manufacturer of comprehensive line of precision pick and carry cranes with lifting capacities from 2.5 ton to 90 ton.
Cranes sold through specialized agents and distributors for a variety of end markets such as petrochemical, construction, aerospace and automotive. Complements crane offerings and adds depth to product lines. Includes electric and diesel capabilities.
Family owned business with average revenues over last three years of approx. $5.5 million. Total potential purchase consideration of $1.2m principally earn out based.
20 ton electric
Focused manufacturer of engineered lifting equipment
8
|
|
Competitive Positioning
Core Competencies
Strong brand history
Acknowledged product development record
International dealers enable us to follow demand
Focused on specialized equipment and niche end-markets
Products
Niche markets
Broad end-user base
Highly customized/specialized; will configure-to-order
Parts and service an important part of business model
Superior ROI
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
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 9
|
|
Lifting Equipment Market Overview
Market Overview
Principal products: boom truck cranes that vary in height & tonnage capacity
Smaller tonnage cranes (<30 tons) more focused on general construction markets; larger cranes (30+ tons) focus on power line construction and energy
Larger tonnage cranes in higher demand since economic downturn
Boom truck cranes typically less expensive than rough terrain and all terrain cranes
Manitex Market Position
Broader market: ~65% of cranes shipped in the smaller tonnage range; ~75% of Manitex shipments have been in 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
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 10
|
|
Replacement Parts & Service Consistent Recurring Revenue
Consistent recurring revenue stream throughout the cycle
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
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 11
|
|
Revenue Growth Drivers
Revenues ($ in Millions)
2009 2013
Revenues $55.9 $245.1
Sources of Growth 2009-2013 $ in Millions
Acquisitions Organic
Revenue Growth: 2009-2013 (Estimated) $ in Millions 75.1 114.1
40% 60%
Pie chart represents the difference / reconciliation between $55.9M & $245.1M
Growth Being Driven by R&D and New Product Innovations (Pie chart illustrates 2013 revenues)
New Products Introduced 2009-2013 Existing
Revenue Product Breakout: 2012 (Est) 30% 70%
2009 – 2013
Energy business was less than 10% in 2009, estimated ~ 50% in 2013
R&D budget: up from ~ $1M to ~ $2.3M/year
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 12
|
|
Investment Highlights
Growth in End Markets
Niche markets with solid demand drivers for products
Increased penetration in oil and gas, power grid and rail industries
Demand in end markets – energy, railroad, and utilities – expected to be consistently strong
Flexible Operating Model
Customer focused design strategy
Diversified product offering
Implementing leverage of product & manufacturing combinations
Quickly adaptable to changes in demand
Commitment to innovation, research & product development
Expected impact from new product launches in 2014
Growth in Key Financial Metrics
Q1-2014 backlog growth of 29.4% to $100 million
4 year (2009 – 2013) CAGR: Revenue 45%, EBITDA 81% and Net Income 29%
Balance sheet strength positionned for growth: Interest coverage of 7.0 times and debt to EBITDA ratio of 2.4 times at 3/31/2014
Broad Industry & Geographic Distribution
End market diversity can offset weak demand in a particular segment
NA represents ~80% of revenue, mitigating concerns of European economic climate
Existing international presence (~20K units worldwide)
International dealer network provides footprint for on-going international growth
Experienced Management
Seasoned senior management: over 70 years of collective industry experience
Successfully integrated multiple acquisitions
Significant management ownership
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 13
|
|
Financial Overview
Manitex International, Inc.
May 2014
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 14
|
|
Key Figures - Quarterly
USD thousands except as noted Q1-2014 Q1-2013 Q4-2013
Net sales $62,576 $59,566 $65,431
Gross profit 11,604 10,236 12,779
Gross margin % 18.5% 17.2% 19.5%
Operating expenses 7,993 6,979 7,759
Net Income 1,877 1,911 2,991
EBITDA 4,722 4,121 6,225
EBITDA % of Sales 7.5% 6.9% 9.5%
Backlog ($ million) 100.0 107.8 77.3
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 15
|
|
Summary Balance Sheet
$000s 31-Mar-14 31-Dec-13 31-Dec-12 31-Dec-11 31-Dec-10
Current Assets 124,714 $122,037 $104,777 $71,209 $54,703
Fixed Assets 10,706 11,143 10,297 11,017 10,659
Other Long-Term Assets 48,957 49,555 36,430 39,365 40,155
Total Assets 184,377 $182,730 $151,504 $121,591 $105,517
Current Liabilities 49,543 $48,016 $43,351 $30,177 $23,011
Long-Term Liabilities 47,737 49,723 48,620 44,620 39,232
Total Liabilities 97,280 97,739 91,971 74,797 62,243
Shareholders’ Equity 87,097 84,991 59,533 46,794 43,274
Total Liabilities & Shareholders’ Equity 184,377 $182,730 $151,504 $121,591 $105,517
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 16
|
|
Working Capital
$000 Q1 2014 Q4 2013
Working Capital $75,171 $73,873
Days Sales Outstanding (DSO) 63 53
Days Payable Outstanding (DPO) 51 45
Inventory Turns 2.7 2.9
Current Ratio 2.5 2.5
Operating Working Capital $91,962 $86,682
Operating Working Capital % of Annualized LQS 36.7% 33.1%
Working capital increase Q1-2014 v Q4-2013, of $1.3m:
Trade & Other Receivables $5.6m, Inventory $2.2m, offset by reduced cash $5m, and increased accounts payable $2.5m, short term working capital borrowings $0.4m and other current liabilities $0.6m.
Working capital ratios: DSO increase due to timing of sales during the quarter and a higher proportion of international sales
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 17
|
|
Debt & Liquidity
$000 3/31/2014 12/31/2013
Total Cash $1,050 $6,091
Total Debt 52,688 54,231
Total Equity 87,097 84,991
Net Capitalization 138,715 133,131
Net Debt / Capitalization 37.2% 36.2%
EBITDA (TTM) 22,084 21,483
EBITDA (TTM) % of Sales 8.9% 8.8%
Debt repayments in the quarter of $1.6 million
N. American revolver facilities, based on available collateral at 3/31/14 was $44.2m.
N. American revolver availability at 3/31/14 of $6.4m.
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 18
|
|
Experienced Management Team
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
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 19
|
|
Company Timeline
March 2002: Manitowoc (NYSE:MTW) acquires Grove
January 2003: Manitowoc divests Manitex
May 2008: Name changed to Manitex International and listed on Nasdaq (MNTX)
July 2006: Manitex merges into Veri-Tek, Intl. (VCC)
July 2007: VCC acquires Noble forklift
December 2009: Acquires Load King Trailers
July 2013: Acquires Sabre Manufacturing LLC
July 2010: CVS Operating Agreement
July 2011: Closes Acquisition of CVS
November 2006: Veri-Tek Acquires LiftKing
October 2008: Crane & Machinery and Schaeff Forklift acquired
July 2009: Acquires Badger Equipment Co.
November 2013: Acquires Valla SpA of Piacenza, Italy
2006 2007 2008 2009 2010 2011 2012 2013
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 20
|
|
Operating Companies
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, power line construction
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
Specialized equipment for liquid storage & containment 8,000-21,000 gallon capacities
Large user base in energy sector Petrochemical Waste management Oil & gas drilling
Reputation for quality & innovation Serves a market of over $1B annually
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 21
|
|
Operating Companies
Brand Products End Markets Drivers
Precision pick & carry cranes Automotive
Chemical / petrochemical
Industrial projects
Infrastructure development
Aerospace
Construction Strong end market demand for specialized, competitively differentiated products
Environmental (electric) or hazardous (spark free) developments
Expansion into N. American market through MNTX distribution
Product development
Focused manufacturer of engineered lifting equipment
5/28/2014 Nasdaq: MNTX 22