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MNTX Manitex International

Filed: 3 Aug 21, 4:02pm

Exhibit 99.1

 

LOGO

Manitex International, Inc. Reports Second Quarter 2021 Results

Bridgeview, IL, August 3, 2021 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized industrial equipment, today announced second quarter 2021 results. Net sales for the second quarter were $60.0 million, compared to $37.1 million in the prior year’s second quarter, and net income from continuing operations was $5.4 million or $0.27 in earnings per share, compared to net loss from continuing operations of $(2.4 million) or $(0.12) per share, in the second quarter of 2020. Adjusted net income * from continuing operations in the second quarter of 2021 was $2.2 million, or $0.11 per share, compared to adjusted net loss of $(1.7 million), or $(0.08) per share, for the second quarter of 2020.

Quarterly Financial Highlights (Sequential comparisons unless noted otherwise):

 

  

Net sales increased 27% to $60.0 million compared to $47.2 million in the first quarter of 2021

 

  

Gross profit rose $2.6 million to $11.4 million, or 19.1% of sales compared to $8.8 million gross profit, or 18.7% of sales in the first quarter of 2021

 

  

Adjusted EBITDA* increased 121% to $4.2 million, or 7.1% of sales, from $1.9 million, or 3.9% of sales in the first quarter of 2021

 

  

Backlog increased 64% to $111.2 million as of June 30, 2021; compared to $68.0 million at December 31, 2020, being driven by growth across entire portfolio; book to bill was 1.46:1

 

  

Available liquidity through cash and credit lines of approximately $37 million as of June 30, 2021

 

  

Net Debt of $25.4 million results in leverage ratio below 3.0x

Note: Results presented above are from Continuing Operations

 

*

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

“The dedication and execution of our entire team at Manitex in refocusing our business on global growth markets and achieving a higher level of financial performance has continued to drive our results at Manitex,” commented Steve Filipov, CEO of Manitex International. “In the second quarter, we reported higher revenues, improving gross margins, and improved EBITDA both in terms of dollars and percentage. And, at over $2 million for the quarter, our adjusted net income from continuing operations is on pace to reach higher annualized levels than we’ve seen in recent years. We continue to gain share on knuckle booms and aerials in certain European markets such as Italy, France, Spain, and the UK, and our straight mast boom truck business is tracking to an industry-wide recovery from 2020, where we remain a market leader.

“We are seeing more confidence from our distributors and partners in their order patterns. There are tenders that we continue to work on around the globe, and legislative progress towards an infrastructure spending program in the United States suggests increased construction activity. Our products are all very well-suited to handle much of the work that will be done through new funding initiatives, and we’re excited about the opportunities ahead.

“Our backlog, at over $111 million, reflects a healthy recovery in demand in many of the markets that we serve. Our balance sheet, with net debt of $25 million, is in good shape, and our cash and availability of approximately $37 million also positions us well to achieve our sales and margin objectives in this recovery. While the supply chain continues to pose challenges to the industry for product availability and pricing, we expect a strong finish to the year,” concluded Mr. Filipov.


Conference Call:

Management will host a conference call with an accompanying slide presentation, after the close of the market, at 4:30PM ET today, August 3, 2021, to discuss the results with the investment community. Anyone interested in participating in the call should dial 877-407-0792 from within the United States or 201-689-8263 if calling internationally. A replay will be available until August 10, 2021, 11:59 PM 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 13720662 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

In this press release, we refer 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. A reconciliation of Adjusted GAAP financial measures for the three month periods ended June 30, 2021 and 2020, and March 31, 2021 is included with this press release below and with the Company’s related Form 8-K. Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis. 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 June 30, 2021, March 31, 2021 and June 30, 2020, unless otherwise indicated.

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, 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 SHEET

(In thousands, except share and per share data)

 

   June 30, 2021  December 31, 2020 
ASSETS       

Current assets

   

Cash

  $17,170  $17,161 

Cash – restricted

   236   240 

Trade receivables (net)

   36,658   30,418 

Other receivables

   89   179 

Inventory (net)

   60,498   56,055 

Prepaid expense and other current assets

   3,198   2,218 
  

 

 

  

 

 

 

Total current assets

   117,849   106,271 
  

 

 

  

 

 

 

Total fixed assets, net of accumulated depreciation of $18,219 and $17,444 at June 30, 2021 and December 31, 2020, respectively

   17,739   18,723 

Operating lease assets

   3,648   4,068 

Intangible assets (net)

   14,160   15,671 

Goodwill

   26,889   27,472 

Other long-term assets

   1,143   1,143 

Deferred tax assets

   247   247 
  

 

 

  

 

 

 

Total assets

  $181,675  $173,595 
  

 

 

  

 

 

 
LIABILITIES AND EQUITY       

Current liabilities

   

Accounts payable

  $43,473  $32,429 

Accrued expenses

   9,593   7,909 

Related party payables, net

   36   52 

Notes payable

   12,727   16,510 

Current portion of finance lease obligations

   362   344 

Current portion of operating lease obligations

   1,006   1,167 

Customer deposits

   3,032   2,363 

Deferred income liability

   —     3,747 
  

 

 

  

 

 

 

Total current liabilities

   70,229   64,521 
  

 

 

  

 

 

 

Long-term liabilities

   

Revolving term credit facilities (net)

   12,682   12,606 

Notes payable (net)

   13,037   13,625 

Finance lease obligations (net of current portion)

   4,032   4,221 

Non-current operating lease obligations

   2,642   2,901 

Deferred gain on sale of property

   547   587 

Deferred tax liability

   1,285   1,333 

Other long-term liabilities

   4,192   4,892 
  

 

 

  

 

 

 

Total long-term liabilities

   38,417   40,165 
  

 

 

  

 

 

 

Total liabilities

   108,646   104,686 
  

 

 

  

 

 

 

Commitments and contingencies

   

Equity

   

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at June 30, 2021 and December 31, 2020

   —     —   

Common Stock—no par value 25,000,000 shares authorized, 19,906,730 and 19,821,090 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

   132,035   131,455 

Paid in capital

   2,948   3,025 

Retained deficit

   (59,270  (63,863

Accumulated other comprehensive loss

   (2,684  (1,708
  

 

 

  

 

 

 

Total equity

   73,029   68,909 
  

 

 

  

 

 

 

Total liabilities and equity

  $181,675  $173,595 
  

 

 

  

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

   Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   2021  2020  2021  2020 

Net revenues

  $60,045  $37,115  $107,213  $85,848 

Cost of sales

   48,605   31,584   86,968   70,070 
  

 

 

  

 

 

  

 

 

  

 

 

 

Gross profit

   11,440   5,531   20,245   15,778 

Operating expenses

     

Research and development costs

   800   771   1,585   1,458 

Selling, general and administrative expenses

   8,069   6,725   15,813   14,764 

Impairment of intangibles

   —     —     —     6,722 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total operating expenses

   8,869   7,496   17,398   22,944 
  

 

 

  

 

 

  

 

 

  

 

 

 

Operating income (loss)

   2,571   (1,965  2,847   (7,166

Other income (expense)

     

Interest expense

   (558  (924  (1,083  (2,008

Interest income

   2   14   6   74 

Gain on Paycheck Protection Program loan forgiveness

   3,747   —     3,747  

Foreign currency transaction loss

   (85  (24  (300  (442

Other income (expense)

   5   (159  (15  (156
  

 

 

  

 

 

  

 

 

  

 

 

 

Total other income (expense)

   3,111   (1,093  2,355   (2,532
  

 

 

  

 

 

  

 

 

  

 

 

 

Income (loss) before income taxes from continuing operations

   5,682   (3,058  5,202   (9,698

Income tax expense (benefit) from continuing operations

   317   (657  609   (253
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss) from continuing operations

   5,365   (2,401  4,593   (9,445
  

 

 

  

 

 

  

 

 

  

 

 

 

Discontinued operations

     

Loss from operations of discontinued operations

   —     (323  —     (711

Income tax (benefit)

   —     (47  —     (3
  

 

 

  

 

 

  

 

 

  

 

 

 

Loss from discontinued operations

   —     (276  —     (708
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss)

  $5,365  $(2,677 $4,593  $(10,153
  

 

 

  

 

 

  

 

 

  

 

 

 

Income (loss) per share

     

Basic

     

Income (loss) from continuing operations

  $0.27  $(0.12 $0.23  $(0.48

Loss from discontinued operations

   —    $(0.01 $—    $(0.04

Net income (loss)

  $0.27  $(0.13 $0.23  $(0.52

Diluted

     

Income (loss) from continuing operations

  $0.27  $(0.12 $0.23  $(0.48

Loss from discontinued operations

   —    $(0.01 $—    $(0.04

Net income (loss)

  $0.27  $(0.13 $0.23  $(0.52

Weighted average common shares outstanding

     

Basic

   19,902,617   19,762,726   19,873,840   19,748,249 

Diluted

   19,988,827   19,762,726   19,947,565   19,748,249 


Note: Results shown are from Continuing Operations

Net Sales, Gross Margin and Operating Income (Loss)

 

   Three Months Ended 
   June 30, 2021  March 31, 2021  June 30, 2020 
   As Reported  As Adjusted  As Reported  As Adjusted  As Reported  As Adjusted 

Net sales

  $60,045  $60,045  $47,168  $47,168  $37,115  $37,115 

% change Vs Q1 2021

   27.3  27.3    

% change Vs Q2 2020

   61.8  61.8    

Gross margin

   11,440   11,441   8,805   8,873   5,531   5,775 

Gross margin % of net sales

   19.1  19.1  18.7  18.8  14.9  15.6

Operating Income (loss)

   2,571   3,109   276   748   (1,965  (1,391

Reconciliation of Net Income (Loss) To Adjusted Net Income (Loss):

(Continuing Operations)

 

   Three Months Ended 
   June 30, 2021  March 31, 2021  June 30, 2020 

Net income (loss)

  $5,365  $(772 $(2,401

Adjustments, including net tax impact

   (3,134  664   736 

Adjusted net income (loss)

  $2,231  $(108 $(1,665

Weighted diluted shares outstanding

   19,988,827   19,845,064   19,762,726 

Diluted earnings (loss) per share as reported

  $0.27  $(0.04 $(0.12

Total EPS effect

  $(0.16 $0.03  $0.04 

Adjusted diluted earnings (loss) per share

  $0.11  $(0.01 $(0.08

Reconciliation of Net Income (Loss) To Adjusted EBITDA:

 

   Three Months Ended 
   June 30, 2021  March 31, 2021  June 30, 2020 

Net Income (loss)

  $5,365  $(772 $(2,401

Interest expense

   558   521   924 

Tax expense

   317   292   (657

Depreciation and amortization expense

   1,124   1,130   1,054 
  

 

 

  

 

 

  

 

 

 

EBITDA

  $7,364  $1,171  $(1,080

Adjustments:

    

Stock compensation

  $278  $299  $203 

FX

   85   215   24 

Litigation / legal settlement

   150   90   43 

Restructuring / asset impairment costs

   1   68   321 

Trade show expense

   —     —     58 

PPP Loan forgiveness

   (3,747  —     —   

Other

   109   15   111 
  

 

 

  

 

 

  

 

 

 

Total Adjustments

  $(3,124 $687  $760 
  

 

 

  

 

 

  

 

 

 

Adjusted EBITDA

  $4,240  $1,858  $(320
  

 

 

  

 

 

  

 

 

 

Adjusted EBITDA as % of sales

   7.1  3.9  (0.9%) 


Backlog

 

   

Jun 30, 2021

   Mar 31, 2021  Dec 31, 2020  Sep 30, 2020  Jun 30, 2020  Mar 31, 2020  Dec 31, 2019  Sep 30, 2019 

Backlog from continuing operations

  $111,170   $83,793  $67,967  $50,541  $44,272  $57,045  $65,263  $56,207 

Change Versus Current Period

     32.7  63.6  120.0  151.1  94.9  70.3  97.8

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.

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, and revolving credit facilities minus cash and cash equivalents.

 

   June 30, 2021   March 31, 2021   December 31, 2020 

Total cash & cash equivalents

  $17,406   $16,075   $17,401 

Notes payable - short term

  $12,727   $16,995   $16,510 

Current portion of finance leases

   362    344    344 

Notes payable - long term

   13,037    13,067    13,625 

Finance lease obligations - LT

   4,032    4,128    4,221 

Revolver, net

   12,682    12,644    12,606 
  

 

 

   

 

 

   

 

 

 

Total debt

  $42,840   $47,178   $47,306 
  

 

 

   

 

 

   

 

 

 

Net debt

  $25,434   $31,103   $29,905