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8-K - FORM 8-K - Manitex International, Inc.d548424d8k.htm

Exhibit 99.1

Manitex International, Inc. Reports Fourth Quarter and Full Year 2017 Results

And Restated Prior Period Results

Bridgeview, IL, March 28, 2018 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of truck and knuckle boom cranes, today announced Fourth Quarter and Full Year 2017 results. Net revenues for the fourth quarter were $64.5 million, compared to $41.1 million in the prior year’s period, and net loss from continuing operations attributable to shareholders of Manitex of $(0.6) million, or $(0.04) per share, compared to a net loss from continuing operations attributable to shareholders of Manitex of $(6.0) million, or $(0.37) per share, in the fourth quarter of 2016. Adjusted net income* from continuing operations in the fourth quarter 2017 was $0.9 million, or $0.05 per share, compared to adjusted net loss of $(1.7) million, or $(0.10) per share, for the fourth quarter of 2016.

For the full year 2017, Manitex reported net revenues of $213.1 million and net loss from continuing operations of ($7.1) million, or ($0.43) per share, compared with net revenues of $173.2 million and net loss from continuing operations of ($23.2) million, or ($1.44) per share for the full year 2016. Adjusted net income* from continuing operations for the full year 2017 was $3.3 million or $0.20 per share, compared to adjusted net loss of $(8.9) million, or $(0.55) per share, in 2016.

All references in this release to financial results of periods ending prior to the third quarter of 2017 reflect such results as restated pursuant to the previously announced restatement of such periods. Manitex plans to file amended reports with the SEC covering all periods affected by the restatement, as well as its quarterly report on Form 10-Q for the quarter ended September 30, 2017 on March 30, 2018, and its annual report on Form 10-K for the year ended December 31, 2017 by April 6, 2018.

Highlights:

 

   

Q4 2017 net revenues of $64.5 million represents a year-over-year growth of 56.9% compared to Q4 2016

 

   

Sequentially, net revenues grew 14.2% in fourth quarter 2017 compared to third quarter 2017

 

   

Adjusted EBITDA* for the full year 2017 increased by 272% to $13.8 million compared to $3.7 million in 2016

 

   

Adjusted EBITDA margin also increased to 6.5% as a percent of sales for the full year in 2017, compared to 2.1% of sales for the previous year

 

   

Adjusted earnings per share for the full year 2017 improved to $0.20 compared to an adjusted loss per share of $(0.55) in 2016

 

   

Net debt at year end of $89.9 million was lower by $11 million compared to the prior year

 

   

Backlog at year end increased by $31 million to $62.2 million compared to December 31, 2016, and by 23.7% from September 30, 2017

* Adjusted Numbers are discussed in greater detail under “Non-GAAP Financial Measures and Other Items” at the end of this release.

Subsequent to the end of the Fourth Quarter:

 

   

Backlog increased to $87.3 million as of February 28, 2018, an increase of 40% since December 31, 2017

 

   

Began shipping new A62 truck mounted aerial work platform and the Trolley Boom Loader in North America

 

   

All prior period reports affected by the restatement expected to be filed by March 30, 2018

David Langevin, Chairman and Chief Executive Officer of Manitex commented, “While our restatement created a distraction concerning our 2017 financials, operationally we saw solid improvements throughout the year. Sales are up substantially in 2017 as well as adjusted operating income, EBITDA and earning per share. Equally important was our reduction in outstanding debt year-over-year, along with the substantial strengthening in the strategic direction of the Company to a point where we believe that we are now one of the premier mobile crane companies in the world. Given the 40% increase in our backlog since December 31, 2017, we believe we will see a steady continuation of improving metrics as we move through 2018. Our goals for 2018 are for us to simply execute on the business levels which we see developing, increase our EBITDA percentages to a level that is much closer to our stated goal of 10%, use our cash flow to continue to reduce debt and potentially further prune nonstrategic assets”.

Steve Kiefer, President and Chief Operating Officer of Manitex stated, “During the fourth-quarter of 2017, we saw an increase in orders and market share for our key product categories, and welcomed eight new dealer locations to the PM North American dealer network. The recovery of the straight mast crane market has strengthened during the first quarter of 2018, with industry orders approaching levels last observed during the 2012 – 2015 timeframe. Looking forward, strong market demand for our products, the build-out of the PM dealer network in North America, and solid customer acceptance of our new products position the Company well for improved revenue and profitability in 2018 and beyond.”


Other Matters:

As previously disclosed, the Company has received an informal inquiry from the SEC requesting certain information in connection with the Company’s previously announced restatement of prior financial statements and is continuing to comply with such request.

Conference Call:

Management will host a conference call at 4:30 PM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 800-239-9838 if calling within the United States or 323-794-2551 if calling internationally. A replay will be available until April 4, 2018 which can be accessed by dialing 844-512-2921 if calling within the United States, or 412-317-6671 if calling internationally. Please use passcode 3589927 to access the replay. The call will additionally be broadcast live and archived for 90 days over the internet with accompanying slides, accessible at the investor relations portion of the Company’s corporate website, www.manitexinternational.com/eventspresentations.aspx.

Non-GAAP Financial Measures and Other Items

Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis. In this press release, Manitex refers to various non-GAAP (U.S. generally accepted accounting principles) financial measures which management believes provides useful information to investors. These non-GAAP measures, as defined by the Company, may not be comparable to similarly titled measures being disclosed by other companies. These non-GAAP financial measures 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 Adjusted GAAP financial measures for the three month periods ended December 31, 2016 and 2017 is included with this press release below and with the Company’s related Form 8-K.

Management of Manitex uses both GAAP and non–GAAP financial measures to evaluate operating performance, to establish internal budgets and targets, and to compare the Company’s financial performance against such budgets and targets. While adjusted financial measures are 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 these measures are useful to investors in assessing our operating results, capital expenditure and working capital requirements and the ongoing performance of its underlying businesses. The amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of, or for the twelve and three month period ended December 31, 2017, unless otherwise indicated.

About Manitex International, Inc.

Manitex International, Inc. is a leading worldwide provider of highly engineered specialized equipment including boom truck, truck and knuckle boom cranes. Our products, which are manufactured in facilities located in the USA and Italy, are targeted to selected niche markets where their unique designs and engineering excellence fill the needs of our customers and provide a competitive advantage. We have consistently added to our portfolio of branded products and equipment both through internal development and focused acquisitions to diversify and expand our sales and profit base while remaining committed to our niche market strategy. Our brands include Manitex, PM, O&S, Badger, Sabre, and Valla.


Forward-Looking Statements

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.   Darrow Associates Inc.
David Langevin   Peter Seltzberg, Managing Director
Chairman and Chief Executive Officer   Investor Relations
(708) 237-2060   (516) 419-9915
dlangevin@manitex.com   pseltzberg@darrowir.com


MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

     As of December 31,  
     2017     2016  
ASSETS             

Current assets

    

Cash

   $ 5,014     $ 4,541  

Cash—restricted

     352       773  

Trade receivables (net)

     46,633       32,982  

Other receivables

     1,946       1,082  

Inventory (net)

     54,360       69,487  

Prepaid expense and other

     2,017       4,624  

Current assets of discontinued operations

     —         46,645  
  

 

 

   

 

 

 

Total current assets

     110,322       160,134  
  

 

 

   

 

 

 

Total fixed assets (net)

     22,038       21,839  

Intangible assets (net)

     31,014       30,985  

Goodwill

     43,569       39,669  

Equity investment in ASV Holdings, Inc.

     14,931       —    

Other long-term assets

     1,475       1,605  

Deferred tax asset

     1,839       545  

Long-term assets of discontinued operations

     —         72,177  
  

 

 

   

 

 

 

Total assets

   $ 225,188     $ 326,954  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY             

Current liabilities

    

Notes payable

   $ 27,971     $ 26,204  

Current portion of capital lease obligations

     378       338  

Accounts payable

     35,386       33,801  

Accounts payable related parties

     1,331       2,098  

Accrued expenses

     10,673       10,278  

Other current liabilities

     3,132       2,150  

Current liabilities of discontinued operations

     —         23,631  
  

 

 

   

 

 

 

Total current liabilities

     78,871       98,500  
  

 

 

   

 

 

 

Long-term liabilities

    

Revolving term credit facilities

     12,893       19,957  

Notes payable

     27,213       32,832  

Capital lease obligations

     5,483       6,004  

Convertible note-related party (net)

     7,005       6,862  

Convertible note (net)

     14,310       14,098  

Deferred gain on sale of building

     969       1,058  

Deferred tax liability

     3,384       3,242  

Other long-term liabilities

     4,215       4,127  

Long-term liabilities of discontinued operations

     —         42,645  
  

 

 

   

 

 

 

Total long-term liabilities

     75,472       130,825  
  

 

 

   

 

 

 

Total liabilities

     154,343       229,325  
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity

    

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at December 31, 2017 and December 31, 2016

     —         —    

Common Stock—no par value 25,000,000 shares authorized, 16,617,932 and 16,200,294 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively

     97,661       94,324  

Paid in capital

     2,802       2,918  

Retained deficit

     (28,583     (20,505

Accumulated other comprehensive loss

     (1,035     (4,272
  

 

 

   

 

 

 

Equity attributable to shareholders of Manitex International, Inc.

     70,845       72,465  

Equity attributable to noncontrolling interest

     —         25,164  
  

 

 

   

 

 

 

Total equity

     70,845       97,629  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 225,188     $ 326,954  
  

 

 

   

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

     For the Three Months Ended
December 31,
    For the Year Ended
December 31,
 
     2017     As Restated
2016
    2017     As Restated
2016
 
     Unaudited     Unaudited     Unaudited     Unaudited  

Net revenues

   $ 64,478     $ 41,091     $ 213,112     $ 173,197  

Cost of sales

     54,301       34,602       176,266       143,260  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     10,177       6,489       36,846       29,937  

Operating expenses

        

Research and development costs

     662       736       2,564       2,939  

Selling, general and administrative expenses

     8,750       9,499       34,547       36,972  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     9,412       10,235       37,111       39,911  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     765       (3,746     (265     (9,974

Other income (expense)

        

Interest expense:

     (2,000     (1,732     (6,498     (6,390

Interest expense related to write off of debt issuance costs

     —         —         —         (1,439

Foreign currency transaction loss

     (11     (124     (1,149     (1,115

Other income

     6       32       367       915  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (2,005     (1,824     (7,280     (8,029
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes and income (loss) in equity interest from continuing operations

     (1,240     (5,570     (7,545     (18,003

Income tax expense (benefit) from continuing operations

     (534     392       (118     (566

Income (loss) from equity investments, net of taxes

     76       —         360       (5,752
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations

     (630     (5,962     (7,067     (23,189

Discontinued operations

        

Loss from operations of discontinued operations (including loss on disposal for the nine months 2017 of $1,133 and losses on disposal of $9,503 and $7,291 for the three and nine months 2016, respectively)

     (169     (9,696     (742     (14,441

Income tax expense (benefit)

     23       (1,222     (5     37  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations

     (192     (8,474     (737     (14,478
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (822     (14,436     (7,804     (37,667
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (income) attributable to noncontrolling interest from discontinued operations

     —         1,140       (274     574  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to shareholders of Manitex International, Inc.

   $ (822   $ (13,296   $ (8,078   $ (37,093
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) Per Share

        

Basic

        

Earnings (loss) from continuing operations attributable to shareholders of Manitex International, Inc.

   $ (0.04   $ (0.37   $ (0.43   $ (1.44

Loss from discontinued operations attributable to shareholders of Manitex International, Inc.

   $ (0.01   $ (0.45   $ (0.06   $ (0.86

Net earnings (loss) attributable to shareholders of Manitex International, Inc.

   $ (0.05   $ (0.82   $ (0.49   $ (2.30

Diluted

        

Earnings (loss) from continuing operations attributable to shareholders of Manitex International, Inc.

   $ (0.04   $ (0.37   $ (0.43   $ (1.44

Loss from discontinued operations attributable to shareholders of Manitex International, Inc.

   $ (0.01   $ (0.45   $ (0.06   $ (0.86

Net earnings (loss) attributable to shareholders of Manitex International, Inc.

   $ (0.05   $ (0.82   $ (0.49   $ (2.30

Weighted average common shares outstanding

        

Basic

     16,595,726       16,174,403       16,548,444       16,133,284  

Diluted

     16,595,726       16,174,403       16,548,444       16,133,284  

Because the Company is not now current in its required public filings, the holders of its Convertible Notes may have a right to declare a default under the note purchase documents. The Company is in the process of obtaining a waiver, and has been advised that the note holders are agreeable to executing such a waiver.


Reconciliation of GAAP Operating Income (Loss) from Continuing Operations to Adjusted EBITDA (in thousands)    

 

     Three Months Ended     Twelve Months Ended  
     December 31, 2017     December 31, 2016     December 31, 2017     December 31, 2016  

Operating income (loss)

   $ 765     ($ 3,746   ($ 265   ($ 9,974

Adjustments related to restructuring, inventory reserves, restricted stock and other expenses

     1,160       3,950       8,923       7,035  

Adjusted operating income (loss)

     1,925       204       8,658       (2,939

Depreciation and amortization

     1,199       1,325       5,107       6,636  

Adjusted EBITDA

   $ 3,124     $ 1,529     $ 13,765     $ 3,697  

Adjusted EBITDA % to sales

     4.8     3.7     6.5     2.1

Reconciliation of GAAP Net Income (Loss) From Continuing Operations Attributable to Shareholders of Manitex International to Adjusted Net Income (Loss) From continuing Operations Attributable to Shareholders of Manitex International (in thousands)

 

     Three Months Ended     Twelve Months Ended  
     December 31, 2017     December 31, 2016     December 31, 2017     December 31, 2016  

Net Income (Loss) from continuing operations attributable to shareholders

   ($ 630   ($ 5,962   ($ 7,067   ($ 23,189

Adjustments related to restructuring, inventory reserves, restricted stock, foreign exchange, restatement, and other expenses

     1,503       4,272       10,345       14,307  

Adjusted Net Income (Loss) from continuing operations attributable to shareholders

     873       (1,690     3,278       (8,882

Weighted diluted shares outstanding

     16,595,726       16,174,403       16,548,444       16,133,284  

Diluted (loss) per share attributable to shareholders as reported

   ($ 0.04   ($ 0.37   ($ 0.43   ($ 1.44

Total EPS effect

   $ 0.09     $ 0.26     $ 0.63     $ 0.89  

Adjusted diluted income (loss) per share attributable to shareholders

   $ 0.05     ($ 0.10   $ 0.20     ($ 0.55

Foreign Exchange, Inventory Reserves, Restructuring and Restricted Stock Expenses

 

     Three Months Ended
December 31, 2017
     Twelve Months Ended
December 31, 2017
 
     Pre-tax      Pre-tax  

Normalized plant absorption levels

     —        $ 3,848  

Foreign exchange

   $ 11      $ 1,149  

Trade show expenses (tri-annual only)

     —        $ 1,106  

Warranty reserve, Restatement fees and expenses

   $ 987      $ 987  

Inventory reserves, restructuring fees and expenses

   $ 278      $ 2,589  

Restricted stock

   $ 227      $ 666  

Total

   $ 1,503      $ 10,345  


Backlog from Continuing Operations

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.

 

     Feburary 28, 2018      December 31, 2017     September 30, 2017     June 30, 2017     March 31, 2017  

Backlog

   $ 87,304      $ 62,192     $ 50,281     $ 47,554     $ 51,237  

Change Versus Current Period

        40.4     73.6     83.6     70.4

Net 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, convertible notes and revolving credit facilities minus cash.

 

     December 31, 2017      December 31, 2016  

Cash

   $ 5,366      $ 5,314  

Notes payable—short term

   $ 27,971      $ 26,204  

Current portion of capital leases

     378        338  

Revolving term credit facilities

     12,893        19,957  

Notes payable—long term

     27,213        32,832  

Capital lease obligations

     5,483        6,004  

Convertible notes

     21,315        20,960  

Total debt

   $ 95,253      $ 106,295  

Net Debt

     89,887        100,981