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Manitex International (MNTX)

Filed: 8 Mar 22, 4:02pm

Exhibit 99.1

 

LOGO

Manitex International Reports Fourth Quarter and Full Year 2021 Results

Bridgeview, IL, March 8, 2022 — Manitex International, Inc. (Nasdaq: MNTX) (“Manitex” or the “Company”), a leading international provider of cranes and specialized industrial equipment, today announced results for the fourth quarter and full year of 2021.

Financial Highlights

 

  

Fourth quarter net sales increased 18.2% year-over-year, to $53.4 million, compared to $45.2 million in the fourth quarter of 2020; for the full year, net sales rose to $211.5 million from $167.5 million in 2020

 

  

Largely due to asset impairment charges of $3.2 million (related to the closure of the Company’s Badger facility) and supply chain inefficiencies, fourth quarter gross profit declined to $4.7 million from $8.4 million in the prior-year period

 

  

The Company reported a fourth quarter net loss from continuing operations of $8.1 million, or $(0.40) per diluted share, compared to a loss of $1.8 million, or $(0.09) per diluted share, in the fourth quarter of 2020; the fiscal 2021 fourth quarter results included $6.4 million of one-time, after-tax charges ($0.32 per share), largely related to the Badger closing

 

  

Adjusted EBITDA* was $0.3 million in the fourth quarter of fiscal 2021 versus $1.5 million in 2020; for the full year, Adjusted EBITDA rose to $8.0 million from $5.7 million in the prior-year period

 

  

Backlog as of December 31, 2021 increased to $189.0 million from $113.6 million as of September 30, 2021, up 66.4% sequentially; the Company’s book-to-bill ratio was 2.41:1 for the fourth quarter of 2021

 

  

Net debt was $23.8 million at the end of the quarter, representing a leverage ratio of 3.0 times trailing Adjusted EBITDA*

 

  

The Company’s total liquidity* was $37.6 million as of December 31, 2021 versus $28.9 million at the end of 2020

“As we turn the corner on 2021, we remain steadfast in our resolve to tackle near-term supply chain constraints and put the Company on sound footing for the year ahead,” said Steve Filipov, CEO of Manitex International. “We took a number of steps to improve our cost structure during the quarter including, first and foremost, closing our Badger facility in Winona, Minnesota and moving production of certain straight-mast boom cranes and aerial platforms to Georgetown, Texas. As part of this initiative – to enhance efficiencies and increase capacity utilization – we booked a pre-tax charge of $3.6 million related to asset impairment and inventory write-downs. We expect that such actions will save on operating expense and logistics costs going forward, expanding margins and paving the way for improved bottom line results. Furthermore, we will realize cash proceeds from selling assets related to the discontinued product lines and inventory, along with property, plant and equipment, associated with this consolidation.

“Our backlog grew over 66% sequentially from the third quarter while, at the same time, we continued to adjust pricing in response to ongoing supply chain challenges including higher material costs and logistics-related expense; while there is a lag time for such purchase price variances to stabilize, we expect margins to normalize as the year progresses. We also utilized cash generation to pay down debt in the fourth quarter and begin 2022 in a stronger liquidity position, which we believe will allow us to take advantage of strategic transactions that will be complementary to our existing business. Overall, even as the Company and industry face headwinds due to tight markets worldwide, we’re seeing strong demand across the board and are optimistic about achieving greater operating performance in the quarters to come.”

 

*

The sum of cash and availability under the Company’s revolver and working capital facilities.


Financial Results for the Fourth Quarter and Full Year ended December 31, 2021

Net sales for the fourth quarter were $53.4 million compared to $45.2 million for the fourth quarter of 2020, and the Company reported a net loss from continuing operations of $8.1 million, or $(0.40) per diluted share, compared to a loss of $1.8 million, or $(0.09) per diluted share, in the prior-year period. Adjusted net loss* from continuing operations for the fourth quarter of 2021 was $1.7 million, or $(0.08) per share, compared with the loss of $1.3 million, or $(0.07) per share for the fourth quarter of 2020.

Net sales for the full year were $211.5 million in 2021 compared to $167.5 million in 2020, and the Company reported a net loss from continuing operations of $4.6 million, or $(0.23) per diluted share, in 2021 compared to $12.7 million, or $(0.64) per diluted share, in the prior-year period.

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” below.

Conference Call:

Management will host a conference call with an accompanying slide presentation, after the close of the market, at 4:30PM ET today, March 8, 2022, 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 and can be accessed by dialing 844-512-2921 or 412-317-6671. Please use passcode 13727027 to access the replay. The call will be broadcast live and archived for 90 days over the internet with accompanying slides, accessible at the Company’s website at 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 is included with this press release. 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 the dates 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), 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, 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

Steve Filipov

  

Chris Witty, Managing Director

Chief Executive Officer

  

Investor Relations

512-942-3000

  

646-438-9385

cwitty@darrowir.com


MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands, except share and per share data)

 

   December 31, 2021   December 31, 2020 

ASSETS

    

Current assets

    

Cash

  $21,359   $17,161 

Cash – restricted

   222    240 

Trade receivables (net)

   30,515    30,418 

Other receivables

   2,039    179 

Inventory (net)

   64,965    56,055 

Prepaid expense and other current assets

   2,436    2,218 
  

 

 

   

 

 

 

Total current assets

   121,536    106,271 
  

 

 

   

 

 

 

Total fixed assets, net of accumulated depreciation of $18,662 and $17,444 at December 31, 2021 and December 31, 2020, respectively

   16,460    18,723 

Operating lease assets

   3,563    4,068 

Intangible assets (net)

   11,946    15,671 

Goodwill

   24,949    27,472 

Other long-term assets

   1,143    1,143 

Deferred tax assets

   178    247 
  

 

 

   

 

 

 

Total assets

  $179,775   $173,595 
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities

 

Accounts payable

  $44,136   $32,429 

Accrued expenses

   10,539    7,909 

Related party payables (net)

   203    52 

Notes payable

   18,401    16,510 

Current portion of finance lease obligations

   399    344 

Current portion of operating lease obligations

   1,064    1,167 

Customer deposits

   7,121    2,363 

Deferred income liability

   —      3,747 
  

 

 

   

 

 

 

Total current liabilities

   81,863    64,521 
  

 

 

   

 

 

 

Long-term liabilities

    

Revolving term credit facilities (net)

   12,717    12,606 

Notes payable (net)

   10,089    13,625 

Finance lease obligations (net of current portion)

   3,822    4,221 

Non-current operating lease obligations

   2,499    2,901 

Deferred gain on sale of property

   507    587 

Deferred tax liability

   1,074    1,333 

Other long-term liabilities

   4,389    4,892 
  

 

 

   

 

 

 

Total long-term liabilities

   35,097    40,165 
  

 

 

   

 

 

 

Total liabilities

   116,960    104,686 
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity

 

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

   —      —   

Common Stock—no par value 25,000,000 shares authorized, 19,940,487 and 19,821,090 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively

   132,206    131,455 

Paid-in capital

   3,264    3,025 

Retained deficit

   (68,436   (63,863

Accumulated other comprehensive loss

   (4,219   (1,708
  

 

 

   

 

 

 

Total equity

   62,815    68,909 
  

 

 

   

 

 

 

Total liabilities and equity

  $179,775   $173,595 
  

 

 

   

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

   Three Months Ended
December 31,
  Years Ended
December 31,
 
   2021  2020  2021  2020 

Net revenues

  $53,391  $45,184  $211,539  $167,498 

Cost of sales

   45,510   36,755   175,377   136,632 

Cost of sales - inventory write-down

   3,226   —     3,226   —   
  

 

 

  

 

 

  

 

 

  

 

 

 

Gross profit

   4,655   8,429   32,936   30,866 

Operating expenses

 

  

Research and development costs

   975   981   3,332   3,227 

Selling, general and administrative expenses

   8,716   7,517   31,948   28,743 

Impairment of intangibles and fixed assets

   2,078   —     2,078   6,722 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total operating expenses

   11,769   8,498   37,358   38,692 
  

 

 

  

 

 

  

 

 

  

 

 

 

Operating income (loss)

   (7,114  (69  (4,422  (7,826

Other income (expense)

     

Interest expense

   (511  (762  (2,084  (3,595

Interest income

   36   17   43   97 

Gain on extinguishment of debt

   —     —     —     595 

Gain on Paycheck Protection Program loan forgiveness

   —     —     3,747   —   

Foreign currency transaction loss

   (122  (142  (543  (813

Other income (expense)

   20   (6  (97  (503
  

 

 

  

 

 

  

 

 

  

 

 

 

Total other income (expense)

   (577  (893  1,066   (4,219
  

 

 

  

 

 

  

 

 

  

 

 

 

Income (loss) before income taxes from continuing operations

   (7,691  (962  (3,356  (12,045

Income tax expense from continuing operations

   374   865   1,217   674 
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss) from continuing operations

   (8,065  (1,827  (4,573  (12,719
  

 

 

  

 

 

  

 

 

  

 

 

 

Discontinued operations

     

Loss from operations of discontinued operations

   —     (57  —     (888

Income tax expense

   —     2   —     3 
  

 

 

  

 

 

  

 

 

  

 

 

 

Loss from discontinued operations

   —     (59  —     (891
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss)

  $(8,065 $(1,886 $(4,573 $(13,610
  

 

 

  

 

 

  

 

 

  

 

 

 

Income (loss) per share

 

  

Basic

     

Income (loss) from continuing operations

  $(0.40 $(0.09 $(0.23 $(0.64

Loss from discontinued operations

  $—    $(0.01 $—    $(0.05

Net income (loss)

  $(0.40 $(0.10 $(0.23 $(0.69

Diluted

     

Income (loss) from continuing operations

  $(0.40 $(0.09 $(0.23 $(0.64

Loss from discontinued operations

  $—    $(0.01 $—    $(0.05

Net income (loss)

  $(0.40 $(0.10 $(0.23 $(0.69

Weighted average common shares outstanding

     

Basic

   19,935,512   19,817,599   19,900,117   19,773,081 

Diluted

   19,935,512   19,817,599   19,900,117   19,773,081 


Note: Results shown are from Continuing Operations

Net Sales, Gross Margin and Operating Income (Loss)

 

   Three Months Ended 
   December 31, 2021  September 30, 2021  December 31, 2020 
   As Reported  As Adjusted  As Reported  As Adjusted  As Reported  As Adjusted 

Net sales

  $53,391  $53,391  $50,935  $50,935  $45,184  $45,184 

% change Vs Q3 2021

   4.8  4.8    

% change Vs Q4 2020

   18.2  18.2    

Gross margin

   4,655   7,881   8,036   8,036   8,429   8,095 

Gross margin % of net sales

   8.7  14.8  15.8  15.8  18.7  17.9

Operating Income (loss)

   (7,114  (747  (155  477   (69  323 

 

   Year Ended 
   December 31, 2021  December 31, 2020 
   As Reported  As Adjusted  As Reported  As Adjusted 

Net sales

  $211,539  $211,539  $167,498  $167,498 

% change Vs prior year

   26.3  26.3  

Gross margin

   32,936   36,231   30,866   30,885 

Gross margin % of net sales

   15.6  17.1  18.4  18.4

Operating Income (loss)

   (4,422  3,586   (7,826  1,291 

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

 

   Three Months Ended  Year Ended 
   December 31, 2021  September 30, 2021  December 31, 2020  December 31, 2021  December 31, 2020 

Net income (loss)

  $(8,065 $(1,101 $(1,827 $(4,573 $(12,719

Adjustments, including net tax impact

   6,411   882   528   4,823   10,347 

Adjusted net income (loss)

  $(1,654 $(219 $(1,299 $250  $(2,372

Weighted diluted shares outstanding

   19,935,512   19,917,276   19,817,599   19,900,117   19,773,081 

Diluted earnings (loss) per share as reported

  $(0.40 $(0.06 $(0.09 $(0.23 $(0.64

Total EPS effect

  $0.32  $0.05  $0.02  $0.24  $0.52 

Adjusted diluted earnings (loss) per share

  $(0.08 $(0.01 $(0.07 $0.01  $(0.12

Reconciliation of Net Income (Loss) To Adjusted EBITDA

 

   Three Months Ended  Year Ended 
   December 31, 2021  September 30, 2021  December 31, 2020  December 31, 2021  December 31, 2020 

Net Income (loss)

  $(8,065 $(1,101 $(1,827 $(4,573 $(12,719

Interest expense

   511   490   762   2,084   3,595 

Tax expense

   374   234   865   1,217   674 

Depreciation and amortization expense

   1,004   1,085   1,164   4,343   4,309 
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

EBITDA

  $(6,176 $708  $964  $3,071  $(4,141

Adjustments:

      

Inventory impairment

  $3,226  $—    $—    $3,226  $—   

Impairment of Intangibles

   2,078   —     —     2,078   6,722 

Litigation / legal settlement

   682   271   113   1,193   772 

Stock compensation

   240   239   380   1,056   1,038 

FX

   122   121   142   543   813 

Put call option reversal

   —     —     (334  —     (334

PPP Loan forgiveness

   —     —     —     (3,747  —   

Restructuring costs

   81     150   433 

Gain from PM debt payoff

       (595

Other

   60   258   233   442   998 
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Adjustments

  $6,489  $889  $534  $4,940  $9,847 
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Adjusted EBITDA

  $313  $1,597  $1,498  $8,011  $5,706 
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Adjusted EBITDA as % of sales

   0.6  3.1  3.3  3.8  3.4


Backlog

 

   Dec 31, 2021   Sept 30, 2021  Jun 30, 2021  Mar 31, 2021  Dec 31, 2020 

Backlog from continuing operations

  $188,981   $113,584  $111,170  $83,793  $67,967 

Change Versus Current Period

     66.4  70.0  125.5  178.0

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 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.

 

   December 31, 2021   September 30, 2021   December 31, 2020 

Total cash & cash equivalents

  $21,581   $17,564   $17,401 

Notes payable - short term

  $18,401   $14,383   $16,510 

Current portion of finance leases

   399    380    344 

Notes payable - long term

   10,089    12,684    13,625 

Finance lease obligations - LT

   3,822    3,931    4,221 

Revolver, net

   12,717    12,704    12,606 
  

 

 

   

 

 

   

 

 

 

Total debt

  $45,428   $44,082   $47,306 
  

 

 

   

 

 

   

 

 

 

Net debt

  $23,847   $26,518   $29,905