Attached files
| file | filename |
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| 8-K - FORM 8-K - Manitex International, Inc. | d884858d8k.htm |
| EX-99.1 - EX-99.1 - Manitex International, Inc. | d884858dex991.htm |
 “Focused manufacturer
of engineered lifting
equipment”
Manitex International, Inc.
(NASDAQ:MNTX)
Conference Call
Fourth Quarter and Full Year 2014
March 5th, 2015
Exhibit 99.2 |
 2
Forward Looking Statements &
Non GAAP Measures
“Focused manufacturer
of engineered lifting
equipment”
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 Full
Year and Fourth Quarter 2014 Earnings Release on the Investor Relations section of our
website
www.manitexinternational.com
for
a
description
and/or
reconciliation
of
these
measures. |
 3
“Focused manufacturer
of engineered lifting
equipment”
Overview
2014 operationally was a year of many positives in an uncertain market
environment
Record sales of $264 million
Increased backlog (excluding ASV transaction) by 27%
Additional military contracts secured to provide total $75-125
million value over 5 years
Generated $1.2 million cash from operations in Q4-2014*
ASV transaction in December of 2014 and PM Group acquisition in January
of 2015 are transformative for the Company
Pro-forma 2014 revenues including PM and ASV ~$500 million
Enhanced product, end-market and geographic diversification
Market challenges from oil and gas sector demand and from euro currency
weakness (impacting translation of profit to USD)
2015 focus is integration and distribution leverage of acquisitions,
cost reduction and cash flow generation to repay debt
*Excluding ASV and transaction and other expenses |
 4
“Focused manufacturer
of engineered lifting
equipment”
Commercial Overview
2014
market
conditions
did
not
meet
original
growth
expectations
and
in
our
principal
market,
boom
trucks,
demand
was
down
almost
8%
year
over
year:
Oil and gas demand did not strengthen during the year as expected and
in Q4 there was considerable uncertainty affecting demand.
N. American general construction demand for our equipment
continued to grow at an incremental rate.
European markets continued to be adversely impacted from economic
conditions and lack of credit. CVS
however
were
able
to
exploit
certain
opportunities
in
Europe
and
internationally.
Product revenue profile changed during the year
More specialized, higher tonnage units or industry specific product
(e.g. energy) demand slowed and was replaced by lower capacity
cranes and more construction related product such as material
handling equipment. CVS container handling equipment and
distribution consistently stronger during the year. 12/31/14
Backlog of $107.3 million (12/31/13, $77.3 million): Growth of
39% over 2013 Broad based order book although boom trucks
continue to be heavily represented. 12/31/14 includes ~9% of ASV
product |
 5
Key Figures -
Annual
“Focused manufacturer
of engineered lifting
equipment”
USD thousands
2014*
2013
2012
Net sales
$264,081
$245,072
$205,249
% change in 2014 to prior period
7.8%
28.7%
Gross profit
48,287
46,476
40,464
Gross margin %
18.3%
19.0%
19.7%
Operating expenses
31,995
28,938
26,005
Adjusted Net Income
8,816
10,178
8,077
Adjusted Earnings per share
$0.63
$0.80
$0.68
Adjusted Ebitda
20,864
21,483
17,957
Adjusted Ebitda % of Sales
7.9%
8.8%
8.7%
Working capital
89,470
73,868
61,426
Current ratio
2.1
2.5
2.4
Backlog
107,327
77,281
130,352
% change in 2014 to prior period
38.9%
(40.7%)
2014 as adjusted. See reconciliation to US GAAP on appendix
|
 6
Key Figures -
Quarterly
“Focused manufacturer
of engineered lifting
equipment”
USD thousands
Q4-2014*
Q4-2013
Q3-2014
Net sales
$66,909
$65,431
66,197
% change in Q4-2014 to prior period
2.3%
1.1%
Gross profit
12,623
12,779
10,915
Gross margin %
18.9%
19.5%
16.5%
Operating expenses
8,531
7,759
7,504
Adjusted Net Income
2,185
2,991
1,768
Adjusted Earnings Per Share
$0.16
$0.22
$0.13
Adjusted Ebitda
5,330
6,225
4,519
Adjusted Ebitda % of Sales
8.0%
9.5%
6.8%
*Q4-2014 as adjusted. See reconciliation to US GAAP on appendix
|
 7
“Focused manufacturer
of engineered lifting
equipment”
2014
Adjusted Operating Performance
Full Year
Quarter ended
December 31
$m
$m
$m
$m
2013 Net income
10.2
3.0
Gross profit impact of increased sales
(2014 sales for the period less 2013 sales at 2013 gross profit
% ).
3.6
0.3
Impact from lower margin
(2014 gross profit % for the period less 2013 gross profit %
multiplied by 2014 sales for the period)
(1.8)
(0.4)
Increase / (decrease) in gross profit
1.8
(0.1)
Decrease in R&D expense
Increase in SG&A expenses
SG&A expense from acquired business
0.4
(0.5)
(2.9)
0.2
(0.4)
(0.6)
Tax
(0.2)
0.1
2014 Adjusted Net income
$8.8
$2.2 |
 8
Working Capital
“Focused manufacturer
of engineered lifting
equipment”
$000
2014
2013
2012
Working Capital
$89,470
$73,868
$61,426
Days sales outstanding (DSO)
95
53
58
Days payable outstanding (DPO)
60
45
51
Inventory turns
2.3
2.9
3.0
Current ratio
2.1
2.5
2.4
Operating working capital
129,112
85,136
74,300
Operating working capital % of
annualized LQS
48.2%
32.5%
32.9%
Working capital ratios skewed by annualized quarters sales and cost of
goods sold only include 12 days for ASV from acquisition.
Excluding impact of ASV transaction, DSO, DPO and inventory turns were
71 days, 43 days, and 3.1 days respectively
|
 9
“Focused manufacturer
of engineered lifting
equipment”
$000
2014
2013
2012
Total Cash
4,370
6,091
1,889
Total Debt
112,294
54,201
49,138
Total Equity
130,006
84,991
59,533
Net capitalization
237,930
133,101
106,782
Net debt / capitalization
45.4%
36.2%
44.2%
Adjusted EBITDA
20,864
21,483
17,957
Adjusted EBITDA % of sales
7.9%
8.8%
8.7%
Debt at 12/31/14 includes:
Non recourse debt at ASV $43.6 million (term and revolving credit
facilities) Fair value of convertible debt for ASV transaction
$6.6 million and $1.6 million note for transaction fees paid by
Terex Manitex revolving credit facilities and Italian working
capital facilities ($53.7 million) Average Debt Cost approximates
6% Full
year
of
ASV
contribution
would
have
resulted
in
a
Debt/Adjusted
EBITDA
ratio
of
approximately
3.2x
for
the
year
Debt & Liquidity
•
Net capitalization is the sum of debt plus equity minus cash
•
Net debt is total debt less cash |
 10
Summary
“Focused manufacturer
of engineered lifting
equipment”
We
enter
2015
a
much
larger
and
more
diversified
Company
than
we
were
in 2014
Markets remain difficult to predict and uncertain, with oil and gas in
particular showing slowdown
Weaker Euro adversely impacts translation of overseas profit, but
does provide sales and margin opportunity
No. American housing starts provide opportunity for ASV
Focus for 2015:
Integration of acquisitions
Accelerate No. American production of knuckle boom product to take
advantage of growth
Leverage distribution opportunities for PM in No. America and
Manitex in PM distribution
Cost reduction and cash flow generation to repay debt
|
 11
APPENDIX
“Focused manufacturer
of engineered lifting
equipment”
Reconciliation of Adjusted net income and adjusted EPS
Reconciliation of Adjusted EBITDA to GAAP net income
Acquisition and other expense |