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8-K - FORM 8-K - Manitex International, Inc.d572449d8k.htm

Exhibit 99.1

Manitex International, Inc. Reports First Quarter 2018 Results

Bridgeview, IL, May 9, 2018 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of truck and knuckle boom cranes, today announced First Quarter 2018 results. Net revenues for the first quarter were $56.7 million, compared to $40.1 million in the prior year’s period*, and net loss from continuing operations attributable to shareholders of Manitex was $(1.5) million, or $(0.09) per share, compared to a net loss from continuing operations attributable to shareholders of Manitex of $(3.3) million, or $(0.21) per share, in the first quarter of 2017*. Adjusted net income** from continuing operations in the first quarter 2018 was $0.8 million, or $0.05 per share, compared to adjusted net loss of $(2.3) million, or $(0.14) per share, for the first quarter of 2017*.

Highlights (versus prior year, unless otherwise noted):

 

 

Net revenues of $56.7 million, up 41.3%

 

 

Adjusted EBITDA** increased to $3.7 million, or 6.5% of sales, from $0.3 million, or 0.8% of sales

 

 

Adjusted earnings per share** improved to $0.05 compared to an adjusted loss per share of $(0.14)

 

 

Backlog increased $26 million to $88 million, representing growth of 43% year to date, and 75% from September 30, 2017

 

 

First quarter book to bill ratio increased to 1.44 vs 1.25 for the fourth quarter of 2017

 

*

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 recently completed restatement of such periods.

 

**

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

“In the quarter we saw a 41% improvement in sales, driven by strengthening global demand across our product lines and geographies, led by Manitex straight-mast cranes, where we estimate our market share has risen from 39% at the end of last year, to over 50%,” commented David J. Langevin, Chief Executive Officer of Manitex. “Gross margins were closer to our 20%-plus target, but legal and accounting expenses of approximately $1.0 million related to our restatements were a significant drain of earnings and an offset to the benefits of the sales increase and other improvements to margins and produced a net loss for the quarter. A backlog of over $85 million and continued positive order flow in April gives us visibility for higher sales throughout the year, and we’re targeting significant gross and EBITDA margin improvements as well. We are positioned to benefit from manufacturing throughput and efficiency gains, as well as repricing actions already implemented to offset steel cost increases, to get us to sustainable profitability, with EBITDA margins of 10%, likely by the end of the year. Recovery fundamentals in the industrial equipment market and for our company look strong, and we’re working hard to take advantage of the opportunities that are available to us.”

Steve Kiefer, President and Chief Operating Officer of Manitex stated, “During the first-quarter of 2018, we saw an increase in orders, industry activity and market share in each of our key product categories. Our book to bill ratio in the first quarter increased to 1.44 versus 1.25 in the fourth quarter of 2017, and orders for our PM knuckle-boom cranes again represented a significant portion of our growing backlog. From a product and end-market perspective, the recovery in the straight mast crane market strengthened during the first quarter with industry orders reaching a level not observed since the 2012 – 2014 period, and early indications are that the trend is continuing into Q2. We also began initial shipments of the A62 truck mounted aerial work platform and trolley boom loader during the quarter.”

Outlook:

Based on the current visibility and production plans the company anticipates revenues in the second quarter in the range of $60 million to $65 million with EBITDA margins in the range of 8.0% to 8.5%, with sales and margins continuing to expand throughout the year.

Other Matters:

As previously disclosed, the Company has received an inquiry from the SEC requesting certain information in connection with the Company’s recently completed 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 800-289-0438 if calling within the United States or 323-794-2423 if calling internationally. A replay will be available until May 16, 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 8829959 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 uses to evaluate operating performance, to establish internal budgets and targets, and to compare the Company’s financial performance against such budgets and targets. These non-GAAP measures, as defined by the Company, may not be comparable to similarly titled measures being disclosed by other companies. 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, for three month period ended March 31, 2018 and March 31, 2017, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three month periods ended March 31, 2018 and 2017 is included with this press release below and with the Company’s related Form 8-K.

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.

David Langevin

Chairman and Chief Executive Officer

(708) 237-2060

dlangevin@manitex.com

  

Darrow Associates Inc.

Peter Seltzberg, Managing Director

Investor Relations

(516) 419-9915

pseltzberg@darrowir.com

  


MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 

                                             
     March 31,
2018
    December 31,
2017
 
     Unaudited     Unaudited  
ASSETS     

Current assets

    

Cash

   $ 2,177     $ 5,014  

Cash - restricted

     325       352  

Marketable equity securities

     7,841       —    

Trade receivables (net)

     49,645       46,633  

Other receivables

     3,462       1,946  

Inventory (net)

     64,168       54,360  

Prepaid expense and other

     2,743       2,017  
  

 

 

   

 

 

 

Total current assets

     130,361       110,322  
  

 

 

   

 

 

 

Total fixed assets, net of accumulated depreciation of $13,624 and $12,921 for March 31, 2018 and December 31, 2017, respectively

     21,898       22,038  

Intangible assets (net)

     30,847       31,014  

Goodwill

     44,359       43,569  

Equity investment in ASV Holdings, Inc.

     —         14,931  

Other long-term assets

     1,473       1,475  

Deferred tax asset

     1,839       1,839  
  

 

 

   

 

 

 

Total assets

   $ 230,777     $ 225,188  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities

    

Notes payable

   $ 25,877     $ 29,131  

Current portion of capital lease obligations

     388       378  

Accounts payable

     45,875       35,386  

Accounts payable related parties

     92       1,331  

Accrued expenses

     9,842       10,070  

Customer deposits

     2,622       2,242  

Other current liabilities

     259       890  
  

 

 

   

 

 

 

Total current liabilities

     84,955       79,428  
  

 

 

   

 

 

 

Long-term liabilities

    

Revolving term credit facilities

     12,480       12,893  

Notes payable (net)

     28,042       26,656  

Capital lease obligations, (net of current portion)

     5,382       5,483  

Convertible note related party (net)

     7,043       7,005  

Convertible note (net)

     14,365       14,310  

Deferred gain on sale of property

     937       969  

Deferred tax liability

     3,381       3,384  

Other long-term liabilities

     4,120       4,215  
  

 

 

   

 

 

 

Total long-term liabilities

     75,750       74,915  
  

 

 

   

 

 

 

Total liabilities

     160,705       154,343  
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity

    

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at March 31, 2018 and December 31, 2017

     —         —    

Common Stock—no par value 25,000,000 shares authorized, 16,668,986 and 16,617,932 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively

     98,081       97,661  

Paid in capital

     2,458       2,802  

Retained deficit

     (30,068     (28,583

Accumulated other comprehensive loss

     (399     (1,035
  

 

 

   

 

 

 

Equity attributable to shareholders of Manitex International, Inc.

     70,072       70,845  
  

 

 

   

 

 

 

Total equity

     70,072       70,845  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 230,777     $ 225,188  
  

 

 

   

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

     Three Months Ended
March 31,
 
     2018     2017  
     Unaudited     Unaudited  

Net revenues

   $ 56,675     $ 40,119  

Cost of sales

     45,575       32,727  
  

 

 

   

 

 

 

Gross profit

     11,100       7,392  

Operating expenses

    

Research and development costs

     652       687  

Selling, general and administrative expenses

     9,986       8,941  
  

 

 

   

 

 

 

Total operating expenses

     10,638       9,628  
  

 

 

   

 

 

 

Operating income (loss)

     462       (2,236

Other (expense) income

    

Interest expense:

    

Interest expense

     (1,553     (1,208

Change in fair value of securities held

     187       —    

Foreign currency transaction loss

     (119     (83

Other (loss) income

     (354     273  
  

 

 

   

 

 

 

Total other expense

     (1,839     (1,018
  

 

 

   

 

 

 

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

     (1,377     (3,254

Income tax expense (benefit) from continuing operations

     (301     171  

Loss on equity investments (including loss on sale of shares)

     (409     —    
  

 

 

   

 

 

 

Net loss from continuing operations

     (1,485     (3,425

Discontinued operations

    

Loss from operations of discontinued operations

     —         232  

Income tax benefit

     —         (19
  

 

 

   

 

 

 

Loss from discontinued operations

     —         251  
  

 

 

   

 

 

 

Net loss

     (1,485     (3,174
  

 

 

   

 

 

 

Net income attributable to noncontrolling interest from discontinued operations

     —         (114
  

 

 

   

 

 

 

Net loss attributable to shareholders of Manitex International, Inc.

   $ (1,485   $ (3,288
  

 

 

   

 

 

 

Earnings (loss) Per Share

    

Basic

    

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

   $ (0.09   $ (0.21

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

   $ —       $ 0.01  

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

   $ (0.09   $ (0.20

Diluted

    

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

   $ (0.09   $ (0.21

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

   $ —       $ 0.01  

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

   $ (0.09   $ (0.20

Weighted average common shares outstanding

    

Basic

     16,666,937       16,559,343  

Diluted

     16,666,937       16,559,343  


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

 

     Three Months Ended  
     March 31, 2018     March 31, 2017  

Operating income (loss)

   $ 462     ($ 2,236

Adjustments related to restatement, restructuring, tradeshow, restricted stock, and other expenses

     1,942       1,019  

Adjusted operating income (loss)

     2,404       (1,217

Depreciation and amortization

     1,293       1,523  

Adjusted EBITDA

   $ 3,697      $ 306  

Adjusted EBITDA % to sales

     6.5     0.8

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  
     March 31, 2018      March 31, 2017  

Net Income (Loss) from continuing operations attributable to shareholders

   ($ 1,485    ($ 3,425

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

     2,273        1,102  

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

     788        (2,323

Weighted diluted shares outstanding

     16,666,937        16,559,343  

Diluted (loss) per share attributable to shareholders as reported

   ($ 0.09    ($ 0.21

Total EPS effect

    $ 0.14       $ 0.07  

Adjusted diluted income (loss) per share attributable to shareholders

    $ 0.05      ($ 0.14

Foreign Exchange, Restatement, Restructuring, Restricted Stock and other Expenses

 

     Three Months Ended  
Pre-tax adjustments    March 31, 2018      March 31, 2017  

Restatement expenses

   $ 1,197        —    

Foreign exchange

     119        83  

Trade show expenses (tri-annual only)

     —          517  

Restructuring

     580        273  

Restricted stock

     123        229  

Loss on equity investment (incl. sale of shares), change in fair market value of securities, and other expenses

     617     

Total

   $ 2,636      $ 1,102  


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 of 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.

 

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

Backlog

   $ 87,860      $ 61,530     $ 50,281     $ 47,554     $ 51,237  

Change Versus Current Period

        42.8     74.7     84.8     71.5

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.

 

     March 31, 2018      December 31, 2017  

Cash

   $ 2,502      $ 5,366  

Notes payable - short term

   $ 25,877      $ 29,131  

Current portion of capital leases

     388        378  

Revolving term credit facilities

     12,480        12,893  

Notes payable - long term

     28,042        26,656  

Capital lease obligations

     5,382        5,483  

Convertible notes

     21,408        21,315  

Total debt

   $ 93,577      $ 95,856  

Net Debt

     91,075        90,490