09 Aug 2019, 06:05 GMT+10
BRIDGEVIEW, IL / ACCESSWIRE / August 8, 2019 / Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized industrial equipment, today announced second quarter 2019 results. Net revenues for the second quarter were $61.0 million, compared to $57.4 million in the first quarter, and net income was $3.2 million, or $0.16 per share, compared to $910,000, or $0.05 per share, in the first quarter of 2019. Adjusted net income* in the second quarter 2019 was $1.1 million, or $0.06 per share, compared to adjusted net income of $1.2 million, or $0.06 per share, for the first quarter of 2019.
Financial Highlights (sequential comparisons, unless otherwise noted):
* 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, "While market activity was indicating a year of consistent, steady growth coming out of 2018 and into the earlier part of the year, we have seen some moderation of demand, particularly with the volatility in the North American markets, as we progressed through the second quarter, similar to what we experienced in 2018. Second quarter sales were six percent higher, sequentially, compared to the first quarter of the year, but slightly down on a year-over-year basis, excluding $1.5 million in foreign currency exchange impact. We maintained our value-add gross margins in the 20% range, and EBITDA margins remained in the 6% range. Net debt was reduced by $5 million with total net debt now down to $44 million from over $49 million at the end of the first quarter. Our second quarter GAAP earnings were impacted substantially by the increase in value of our holdings in ASV resulting from the announcement of the pending sale of ASV to Yanmar. When this sale is completed, we will receive approximately $7.5 million in cash further strengthening our balance sheet."
"As a company that has always been able to quickly respond to changes in the market place, we have modestly reduced our second quarter production levels at our manufacturing facilities, and until we see a consistent increasing order trend in the market we expect to stay at these levels for the remainder of the year. By taking these actions we believe we will improve our working capital positions and therefore expand our cash position and further strengthen our balance sheet. We can also take this opportunity to improve our operating margins, especially in our facilities outside the United States. Finally, in addition to the prudent management of our production, overhead, and overall cost structure, we expect new product introductions and higher levels of activity from our relationship with Tadano and its global distribution partners to drive sales higher and lead to EBITDA margins to levels more in line with our targets, which is 10% or better," concluded Mr. Langevin.
Steve Kiefer, President and Chief Operating Officer of Manitex added, "During the second quarter we focused on cost-containment, efficiently meeting customer demand, developing new products, and expanding the dealer network, worldwide. Tightness in certain parts of the supply chain, primarily truck chassis, impacted our operations somewhat in the quarter and we are seeing improvement as we move through the third quarter. Dealer order levels exhibited a seasonal decrease that slightly exceeded our expectations with a second quarter book-to-bill ratio of .71 versus .81 during the same period in 2018. Our backlog, which stood at approximately $63 million at the end of July, is showing some pockets of strength, particularly at PM, and in general the construction, utility, government and rental markets. Data we've seen indicate that dealer rental utilization and US commercial construction indices remain at healthy levels."
"Ongoing dealer development efforts we've undertaken resulted in higher sales at PM in the quarter, and continuing to grow this business, which is far less cycle-dependent compared to our North American business, remains the top priority for our sales team as each percentage point of market share gained translates to approximately $25 million in incremental revenue. During the quarter we welcomed four new dealers to our global dealer network for our Manitex and PM lines. We are also beginning to see some benefits from our new product development initiatives with PM receiving a one-million-dollar order from an Asian military customer in the quarter, and we anticipate additional announcements in the near-future from the government & military market segments. Other new product development activity includes the addition of a 60-ton crane to our industry-leading line of Manitex straight-mast cranes. We look forward to the public unveiling and launch of this important new model at the International Construction & Utility Equipment Exposition in Louisville, KY this coming October."
The Company continues to comply with the SEC investigation regarding the Company's restatement of prior financial statements.
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 888-599-8686 if calling within the United States or 323-994-2093 if calling internationally. A replay will be available until August 15, 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 4232591 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 six month periods ended June 30, 2019 and 2018, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three and six month periods ended June 30, 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
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.
Manitex International, Inc.
President and Chief Operating Officer
Darrow Associates Inc.
Peter Seltzberg, Managing Director
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)
|As of June|
|As of December 31,|
Cash - restricted
Marketable equity securities
Trade receivables (net)
Prepaid expense and other
Total current assets
Total fixed assets, net of accumulated depreciation of $15,856 and $14,826
at June 30, 2019 and December 31, 2018, respectively
Operating lease assets
Intangible assets (net)
Other long-term assets
Deferred tax asset
LIABILITIES AND EQUITY
Current portion of capital lease obligations
Current portion of operating lease liabilities
Accounts payable related parties
Total current liabilities
Notes payable (net)
Capital lease obligation (net of current portion)
Non-current operating lease liabilities
Convertible note related party (net)
Convertible note (net)
Deferred gain on sale of property
Deferred tax liability
Other long-term liabilities
Total long-term liabilities
Commitments and contingencies
Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at
June 30, 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 June 30, 2019 and December 31, 2018, respectively
Paid in capital
Accumulated other comprehensive loss
Total liabilities and equity
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