Manitex International, Inc. Reports First Quarter 2019 Results

Bridgeview, Illinois, UNITED STATES

BRIDGEVIEW, Ill., May 06, 2019 (GLOBE NEWSWIRE) -- Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of truck and knuckle boom cranes, today announced first quarter 2019 results. Net revenues for the first quarter were $57.4 million, compared to $56.7 million in the prior year’s period, and net income was $0.9 million, or $0.05 per share, compared to a net loss of $(1.5) million, or $(0.09) per share, in the first quarter of 2018. Adjusted net income* in the first quarter 2019 was $1.2 million, or $0.06 per share, compared to adjusted net income of $0.8 million, or $0.05 per share, for the first quarter of 2018.

Highlights (versus prior year, unless otherwise noted):

  • Net revenues of $57.4 million, represents a 1% improvement or 5% excluding unfavorable currency impact
  • Earnings per share improved to $0.05 compared to loss per share of $(0.09)
  • Adjusted earnings per share* of $0.06, up 20% from $0.05
  • EBITDA increased to $2.9 million from $1.8 million, up 68%  
  • Adjusted EBITDA* $3.8 million, or 6.6% of sales, nearly 100 basis points higher compared to fourth quarter 2018
  • Backlog increased to $75 million, growth of 12% year to date

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

Chief Executive and Chairman David J. Langevin commented, “We started the year out on a positive note. Our first quarter financial performance in 2019 was highlighted by a positive book to bill and gross margin recovery, which at 20.8% is once again within the bounds of our long term target of 20% to 25%.  Further, with continued progress made managing our costs and production schedules, we are expecting operating and EBITDA margins to also show consistent progress throughout the year. We are very pleased with the progress that we continue to make, led by Manitex straight mast cranes which is a market leader and top performer in our portfolio.”

“With a solid backlog we anticipate higher production in the second quarter which should produce expanding operating profits and EPS. We look forward to building on the operating efficiencies we have generated in the business that enabled a greater than $2 million net income improvement on a modest increase in sales, with operating profit margin up over 200 basis points when compared to the same quarter of a year ago. We continue to see good order activity in both North America and Europe, and, as we recently reported, we are producing our first PM order for the Asian markets which resulted from our relationship with Tadano. After a solid start to the year we believe we will see a progression of better financial performance for each quarter for the remainder of the year,” concluded Mr. Langevin.

Steve Kiefer, President and Chief Operating Officer of Manitex added, “Despite recent challenges in the marketplace with tightness and surcharges in certain parts of the supply chain, volatility in dealer order patterns and tariff policy changes, we saw an uptick in gross, operating, and EBITDA margins in the quarter. And, with a backlog of $75 million, we are well positioned for increased levels of production and expansion in the second quarter.  The first quarter industry order rate for our Manitex-branded straight-mast crane business was an annualized 1,500 units, which, if realized, would represent nearly 30% growth over 2018 shipment levels. Our first order from Tadano has come in, and we’re excited as ever about this partnership’s long-term potential.”

“We received over $7 million in new orders coming out of the Bauma Expo in Munich, Germany, early on in the second quarter, and in addition to introducing important new PM, Oil & Steel and Valla products at Bauma, PM celebrated its 60th anniversary.  As the first Italian producer of truck mounted hydraulic cranes, PM remains our most important global growth opportunity in 2019 as we continue increasing our penetration in the expanding multi-billion global knuckle boom market.  We added two PM dealers in North America in the first quarter as we continue strengthening our global PM distribution.  We remain excited about the opportunities to execute and reach our growth objectives as we move through the rest of 2019,” concluded Mr. Kiefer.   

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 4:30 PM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 888-220-8451 if calling within the United States or 323-794-2588 if calling internationally. A replay will be available until May 13, 2019, 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 6598836 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,

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-month periods ended March 31, 2019 and 2018, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three-month periods ended March 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, Oil & Steel, Badger, Sabre, and Valla. The company also has a minority ownership in ASV Holdings, Inc. which manufactures and sells a line of high-quality compact track and skid steer loaders.

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.
Steve Kiefer 
President and Chief Operating Officer
(708) 237-2065 
Darrow Associates Inc.
Peter Seltzberg, Managing Director
Investor Relations 
(516) 419-9915

(In thousands, except share and per share data)

  As of March 31, As of December 31,
  2019 2018
Current assets    
Cash $20,889  $22,103 
Cash - restricted  234   245 
Marketable equity securities  2,970   2,160 
Trade receivables (net)  47,099   45,448 
Other receivables  2,528   2,374 
Inventory (net)  64,073   58,024 
Prepaid expense and other  4,259   1,639 
Total current assets  142,052   131,993 
Total fixed assets, net of accumulated depreciation of $15,238 and $14,826
  at March 31, 2019 and December 31, 2018, respectively
  20,193   20,249 
Operating lease assets  2,911   - 
Intangible assets (net)  23,818   24,773 
Goodwill  35,808   36,298 
Other long-term assets  1,313   1,570 
Deferred tax asset  2,366   2,366 
Total assets $228,461  $217,249 
Current liabilities    
Notes payable $23,835  $22,706 
Current portion of capital lease obligations  436   422 
Current portion of operating lease liabilities  1,013   - 
Accounts payable  44,128   36,896 
Accounts payable related parties  1,493   1,371 
Accrued expenses  9,282   9,249 
Customer deposits  2,312   2,310 
Total current liabilities  82,499   72,954 
Long-term liabilities    
Notes payable (net)  22,639   23,134 
Capital lease obligation (net of current portion)  4,947   5,061 
Non-current operating lease liabilities  1,913   - 
Convertible note related party (net)  7,199   7,158 
Convertible note (net)  14,587   14,530 
Deferred gain on sale of property  727   842 
Deferred tax liability  93   92 
Other long-term liabilities  5,423   5,474 
Total long-term liabilities  57,528   56,291 
Total liabilities  140,027   129,245 
Commitments and contingencies    
Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at
  March 31, 2019 and December 31, 2018
Common Stock—no par value 25,000,000 shares authorized, 19,682,713 and 19,645,773
  shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively
  130,492   130,260 
Paid in capital  2,582   2,674 
Retained deficit  (40,851)  (41,761)
Accumulated other comprehensive loss  (3,789)  (3,169)
Total equity  88,434   88,004 
Total liabilities and equity $228,461  $217,249 

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

  Three Months Ended
March 31,
  2019 2018
  Unaudited Unaudited
Net revenues $57,420  $56,675 
Cost of sales  45,472   45,575 
Gross profit  11,948   11,100 
Operating expenses    
Research and development costs  687   652 
Selling, general and administrative expenses  9,496   9,986 
Total operating expenses  10,183   10,638 
Operating income  1,765   462 
Other (expense) income    
Interest expense  (1,131)  (1,553)
Interest income  69    
Change in fair value of securities held  810   187 
Foreign currency transaction loss  (433)  (119)
Other expense  (20)  (354)
    Total other expense  (705)  (1,839)
Income (loss) before income taxes and loss in equity
  1,060   (1,377)
Income tax expense (benefit)  150   (301)
Loss on equity investments (including loss on sale of shares)     (409)
Net Income (loss)  910   (1,485)
Earnings (loss) Per Share    
Basic $0.05  $(0.09)
Diluted $0.05  $(0.09)
Weighted average common shares outstanding    
Basic  19,678,081   16,666,937 
Diluted  19,694,973   16,666,937 

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

 Three Months Ended
 March 31, 2019March 31, 2018
Operating income$1,765 $462 
Adjustments related to plant closing, restatement, restricted stock, restructuring and other expenses819 1,942 
Adjusted operating income2,584 2,404 
Depreciation and amortization1,183 1,293 
Adjusted EBITDA$3,767 $3,697 
Adjusted EBITDA % to sales6.66.5

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

 Three Months Ended
 March 31, 2019March 31, 2018
Net income (loss)$910 ($1,485) 
Adjustments related to change in fair value of securities, foreign exchange, plant closing, restatement, restricted stock, restructuring, and other expenses (Including net tax impact)258 2,273 
Adjusted net Income1,168 788 
Weighted diluted shares outstanding19,694,973 16,666,937 
Diluted income (loss) per share as reported$0.05 ($0.09) 
Total EPS effect$0.01 $0.14 
Adjusted diluted earnings per share$0.06 $0.05 

Change in Change in Fair Market Value of Securities, Foreign Exchange, Restatement, Restricted Stock, Restructuring, Plant Closing and other Expenses

 Three Months Ended
Pre-tax adjustmentsMarch 31, 2019March 31, 2018
Change in fair market value of securities($810) ($187) 
Foreign exchange433 119 
Restatement expenses49 1,197 
Restricted stock159 123 
Restructuring354 580 
Plant closing44 
Other expenses213 804 
Total pre-tax adjustments  442   2,636 
Net tax impact (including discrete items)(184) (363) 
Total adjustments$258 $2,273 


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.

 Mar 31, 2019Dec 31, 2018Sep 30, 2018Jun 30, 2018Mar 31, 2018
Change Versus Current Period 12.2%23.8%-0.9%-14.8%

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.

 March 31, 2019December 31, 2018
Cash & marketable equity securities$24,093 $24,508 
Notes payable - short term$23,835 $22,706 
Current portion of capital leases436 422 
Notes payable - long term22,639 23,134 
Capital lease obligations4,947 5,061 
Convertible notes21,786 21,688 
Total debt$73,643 $73,011 
Net Debt$49,550 $48,503