MNTX

MANITEX INTERNATIONAL INC

Industrials | Micro Cap

$0.07

EPS Forecast

$70.13

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 d898688dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Manitex International, Inc. Reports Fourth Quarter 2019 and Full Year Results

Bridgeview, IL, March 9, 2020 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized industrial equipment, today announced fourth quarter and full year 2019 results. Net revenues for the fourth quarter were $54.4 million, compared to $51.9 million in the third quarter this year, and net loss was $(0.8) million, or $(0.04) per share, compared to net loss of $(11.9) million, or $(0.60) per share in the third quarter of 2019. Adjusted net income* in the fourth quarter 2019 was $0.8 million, or $0.04 per share, compared to a slight loss, or $(0.00) per share, for the third quarter of 2019.

For the full year 2019, Manitex reported net revenues of $224.8 million and net loss of $(8.5) million, or $(0.43) per share, compared with net revenues of $242.1 million and net loss of $(13.2) million, or $(0.72) per share for the full year 2018. Adjusted net income for the full year 2019 was $3.0 million, or $0.15 per share, compared to $6.0 million, or $0.33 per share for the full year 2018.

Q4 Financial Highlights (sequential comparisons, unless otherwise noted):

 

   

Net revenues increased 4.8% to $54.4 million, from $51.9 million

 

   

Adjusted Earnings Per Share improved to $0.04 compared $(0.00) loss per share

 

   

EBITDA of $1.9 million compared to $(7.5) million, with Adjusted EBITDA improving by $0.9 million to $2.8 million

 

   

Net debt as of December 31, 2019 was $41.2 million, representing a reduction of $7.3 million compared to a year ago

 

   

Backlog was $66.2 million as of December 31, 2019, flat year over year

 

*

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

Operating Highlights:

 

   

Book to bill ratio was 1.16:1 in Q4 2019

 

   

Launching several new products at CONEXPO 2020

 

   

Investing in Valla Industrial Crane zero-emission platforms

 

   

Subsequent to the end of the quarter, Sabre will be classified as “Held For Sale” in Q1 2020 and subsequent financial reports until a transaction is completed.

Chief Executive Officer Steve Filipov commented, “We had a strong finish to the year, driven by greatly improved performance at PM, which grew sales by nearly 30 percent to $25 million in the fourth quarter. Our backlog, which we have reported as $66.2 million, is also being driven by gains at PM, which now represents a substantial portion of that backlog. We believe there is potential for continued gains in 2020 through higher production efficiencies and the re-configuration of our articulating crane business, which generates the highest margins within our product portfolio. Our partnership with Tadano is also gaining traction in Asia, and now starting in the Middle East, through our PM-Tadano branding efforts and distribution expansion. We are proud to have Tadano as a partner and investor, and have greatly improved our focus over the past few months to drive gains in 2020 and beyond for our articulating crane business. Manitex straight mast cranes, a North American market leader for two decades, experienced some softness in the year, amidst a deceleration in unit sales across the industry, but remained flat with 2018. While there is still plenty of work to do, it’s worth noting that both Gross Margin and EBITDA margin have bounced off our lows in the third quarter, and are trending higher as we head into 2020.”

Mr. Filipov added, “We are excited about our presence at the CONEXPO Trade Show in Las Vegas, which will allow us to meet many of our loyal customers, look for new opportunities, and launch several new products to the market, from stick boom cranes to zero-emission industrial cranes.”


“We also showed excellent progress in reducing our net debt position to the lowest it has been since 2011. In addition, we have made the decision to divest our Sabre business, in order to focus on our core portfolio of specialized cranes. I am confident we will continue to grow Manitex and achieve our 10% EBITDA goal while continuing to improve our balance sheet, over the coming quarters”, concluded Mr. Filipov.

Steve Kiefer, President and Chief Operating Officer of Manitex added, “Strengthening our PM and Manitex product offerings and distribution was a key focus throughout 2019 and remains a priority as we enter 2020. We introduced a number of new products such as the Valla V80R and 250E electric cranes at the Bauma trade show in April of last year and those products began adding to backlog and revenue as we moved throughout the year. In September of last year we announced a $4.5 Million order from an international military customer for PM knuckleboom cranes. We began production of these cranes in late-2019 and shipments will begin in the second quarter of 2020. We are pursuing additional military orders for PM cranes and anticipate possibly announcing additional contract awards this year. Additionally, we added three new dealers for PM Group products in the fourth quarter last year and began customer shipments of our Manitex-branded MAC knuckleboom cranes in North America.”

Other Matters:

The Company continues to comply with the SEC investigation regarding the Company’s restatement of prior financial statements.

Conference Call:

Management will host a conference call at 8:30 AM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 888-256-1007 if calling within the United States or 323-994-2093 if calling internationally. A replay will be available until March 16, 2020, 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 7459648 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, or for the three and twelve month periods ended December 31, 2019 and 2018, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three and twelve month periods ended December 31, 2019 and 2018 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 mobile cranes (truck mounted straight-mast and knuckle boom cranes, industrial cranes, rough terrain cranes and railroad cranes), truck mounted aerial work platforms and specialized industrial equipment. Our products, which are manufactured in facilities located in the USA and Europe, 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, MAC, PM-Tadano, Oil & Steel, 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.

Steve Filipov

  

Peter Seltzberg, Managing Director

Chief Executive Officer

  

Investor Relations

(708) 237-2054

  

(516) 419-9915

sfilipov@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,  
     2019     2018  

ASSETS

    

Current assets

    

Cash

   $ 23,360     $ 22,103  

Cash - restricted

     217       245  

Marketable equity securities

     —         2,160  

Trade receivables (net)

     35,232       45,448  

Other receivables

     1,033       1,327  

Inventory (net)

     58,734       58,024  

Prepaid expense and other

     4,841       3,993  
  

 

 

   

 

 

 

Total current assets

     123,417       133,300  
  

 

 

   

 

 

 

Total fixed assets, net of accumulated depreciation of $16,818 and $14,826 at December 31, 2019 and 2018, respectively

     19,348       20,249  

Operating lease assets

     2,274       —    

Intangible assets (net)

     17,032       24,773  

Goodwill

     32,635       36,298  

Other long-term assets

     281       263  

Deferred tax asset

     415       2,366  
  

 

 

   

 

 

 

Total assets

   $ 195,402     $ 217,249  
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities

    

Notes payable

   $ 18,212     $ 22,706  

Covertible note-related party (net)

     7,323       —    

Current portion of finance lease obligations

     476       422  

Current portion of operating lease liabilities

     920       —    

Accounts payable

     29,974       36,896  

Accounts payable related parties

     228       1,371  

Accrued expenses

     9,325       9,249  

Customer deposits

     1,618       2,310  
  

 

 

   

 

 

 

Total current liabilities

     68,076       72,954  
  

 

 

   

 

 

 

Long-term liabilities

    

Notes payable (net)

     19,446       23,134  

Finance lease obligation (net of current portion)

     4,584       5,061  

Non-current operating lease liabilities

     1,361       —    

Convertible note related party (net)

     —         7,158  

Convertible note (net)

     14,760       14,530  

Deferred gain on sale of property

     667       842  

Deferred tax liability

     1,045       92  

Other long-term liabilities

     5,913       5,474  
  

 

 

   

 

 

 

Total long-term liabilities

     47,776       56,291  
  

 

 

   

 

 

 

Total liabilities

     115,852       129,245  
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity

    

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at December 31, 2019 and 2018

     —         —    

Common Stock—no par value 25,000,000 shares authorized, 19,713,185 and 19,645,773 shares issued and outstanding at December 31, 2019 and 2018, respectively

     130,710       130,260  

Paid in capital

     2,793       2,674  

Retained deficit

     (50,253     (41,761

Accumulated other comprehensive loss

     (3,700     (3,169
  

 

 

   

 

 

 

Total equity

     79,550       88,004  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 195,402     $ 217,249  
  

 

 

   

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2019     2018     2019     2018  
     Unaudited     Unaudited              

Net revenues

   $ 54,446     $ 60,590     $ 224,776     $ 242,107  

Cost of sales

     44,866       52,078       184,320       198,060  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     9,580       8,512       40,456       44,047  

Operating expenses

        

Research and development costs

     824       660       2,714       2,839  

Selling, general and administrative expenses

     8,012       8,523       35,615       35,707  

Impairment of intangibles

     —         5,736       8,112       5,736  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     8,836       14,919       46,441       44,282  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     744       (6,407     (5,985     (235

Other (expense) income

        

Interest expense

     (1,235     (1,158     (4,603     (5,508

Interest income

     68       73       229       168  

Change in fair value of securities held

     —         (3,186     5,454       (5,494

Foreign currency transaction loss

     (126     (179     (844     (814

Other income (loss)

     37       (19     20       (374
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income

     (1,256     (4,469     256       (12,022
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes and loss in non-marketable equity interest

     (512     (10,876     (5,729     (12,257

Income tax (benefit) expense

     275       (29     2,763       511  

Loss on equity investments, net of taxes

     —         —         —         (409
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (787   $ (10,847   $ (8,492   $ (13,177
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) earnings Per Share

        

Basic

   $ (0.04   $ (0.55   $ (0.43   $ (0.72

Diluted

   $ (0.04   $ (0.55   $ (0.43   $ (0.72

Weighted average common shares outstanding

        

Basic

     19,696,093       19,625,695       19,687,414       18,409,296  

Diluted

     19,696,093       19,625,695       19,687,414       18,409,296  


Net Sales and Gross Margin % (in thousands)    

 

     Three Months Ended  
     December 31, 2019     September 30, 2019     December 31, 2018  
     As Reported     As Adjusted     As Reported     As Adjusted     As Reported     As Adjusted  

Net sales

   $ 54,446     $ 54,446     $ 51,941     $ 51,941     $ 60,590     $ 60,590  

% change Vs Q3 2019

     4.8     4.8        

% change Vs Q4 2018

     -10.1     -10.1        

% change Vs Q4 2018 without FX impact

       -8.9        

Gross margin % of net sales

     17.6     18.4     15.6     17.2     14.0     17.3

Gross margin % of net sales  (value-add)

       19.6       18.8       18.8

 

     Twelve Months Ended  
     December 31, 2019     December 31, 2018  
     As Reported     As Adjusted     As Reported     As Adjusted  

Net sales

   $ 224,776     $ 224,776     $ 242,107     $ 242,107  

% change Vs prior year

     -7.2     -7.2    

% change Vs prior year without FX impact

       -5.1    

Gross margin % of net sales

     18.0     19.0     18.2     19.4

Gross margin % of net sales  (value-add)

       20.3       20.6

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

 

    Three Months Ended     Twelve Months Ended  
    December 31, 2019     September 30, 2019     December 31, 2018     December 31, 2019     December 31, 2018  

Operating income (loss)

  $ 744     ($ 8,692   ($ 6,407   ($ 5,985   ($ 235

Adjustments related to trade show, customer declared bankruptcy, discontinued model, goodwill and intangible asset impairment, plant closing, restatement, restricted stock, restructuring and other expenses

    992     9,412     8,732     13,579     12,655

Adjusted operating income

    1,736     720     2,325     7,594     12,420

Depreciation and amortization

    1,110     1,192     1,200     4,702     4,989

Adjusted EBITDA

  $ 2,846     $ 1,912     $ 3,525     $ 12,296     $ 17,409  

Adjusted EBITDA % to sales

    5.2     3.7     5.8     5.5     7.2

Reconciliation of GAAP Net Loss to Adjusted Net Income (in thousands)

 

    Three Months Ended     Twelve Months Ended  
    December 31, 2019     September 30, 2019     December 31, 2018     December 31, 2019     December 31, 2018  

Net loss

  ($ 787   ($ 11,851   ($ 10,847   ($ 8,492   ($ 13,177

Adjustments related to change in fair value of securities, trade show, discontinued model, customer declared bankruptcy, foreign exchange, goodwill and intangible asset impairment, plant closing, restatement, restricted stock, restructuring, and other expenses (including net tax impact)

    1,571     11,821     12,058     11,522     19,195

Adjusted net income (loss)

  $ 784     ($ 30   $ 1,211     $ 3,030     $ 6,018  

Weighted diluted shares outstanding

    19,696,093     19,690,233     19,625,695     19,687,414       18,409,296

Diluted loss per shares as reported

  ($ 0.04   ($ 0.60   ($ 0.55   ($ 0.43   ($ 0.72

Total EPS effect

  $ 0.08     $ 0.60     $ 0.61     $ 0.58     $ 1.05  

Adjusted diluted earnings per share

  $ 0.04     ($ 0.00   $ 0.06     $ 0.15     $ 0.33  


Change in Fair Market Value of Securities, Trade Show, Discontinued Model, Foreign Exchange, Goodwill and Intangible Asset Impairment, Restatement, Restricted Stock, Restructuring, Plant Closing and other Expenses

 

     Three Months Ended     Twelve Months Ended  

Adjustments

   December 31, 2019      September 30, 2019     December 31, 2018     December 31, 2019     December 31, 2018  

Goodwill and intangible asset impairment

   $ 0      $ 8,112     $ 5,736     $ 8,112     $ 5,736  

Restructuring

     38      99     367     1,242     1,161

Discontinued model

     249      446     —       1,000     480

Restricted stock

     156      148     109     604     640

Customer declared bankruptcy - bad debt

     140      140     —       564     —  

Trade show

     —        79     —       360     —  

Legal settlement

     88      —       —       186     —  

Restatement expenses

     —        22     358     169     2,364

Change in accounting estimates - Inventory  reserve

     166      —       1,834     166     1,834

Plant closing

     —        —       —       44     —  

Other expenses

     155      366     328     1,132     440

Total adjustments to operating income (loss)

   $ 992      $ 9,412     $ 8,732     $ 13,579       12,655

Change in fair market value of securities

     —        (216     3,186     (5,454     5,494

Loss in equity investments

     —        —       —       —       409

Foreign exchange

     126      307     179     844     814

Other expenses

     —        —       —       —       353

Total pre-tax adjustments

   $ 1,118      $ 9,503     $ 12,097     $ 8,969       19,725

Net tax impact (including discrete items)

     453      2,318     (39     2,553     (530

Total adjustments

   $ 1,571      $ 11,821     $ 12,058     $ 11,522       19,195

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.

 

     Dec 31, 2019      Sep 30, 2019     Jun 30, 2019     Mar 31, 2019     Dec 31, 2018  

Backlog

   $ 66,196      $ 57,596     $ 56,625     $ 74,885     $ 66,735  

Change Versus Current Period

        14.9     16.9     -11.6     -0.8

Note: As of February 21, 2020, backlog was $70,998

Net Debt

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, 2019      December 31, 2018  

Cash & marketable equity securities

   $ 23,577      $ 24,508  

Notes payable - short term

   $ 18,212      $ 22,706  

Current portion of finance leases

     476      422

Notes payable - long term

     19,446      23,134

Finance lease obligations

     4,584      5,061

Convertible notes

     22,083      21,688

Total debt

   $ 64,801      $ 73,011  

Net debt

   $ 41,224      $ 48,503