Manitex International, Inc. (Nasdaq: MNTX) ("Manitex" or the
"Company"), a leading international provider of truck cranes,
specialized industrial equipment, and construction equipment rental
solutions to infrastructure and construction markets, today
reported financial results for the three months ended March 31,
2023.
FIRST QUARTER 2023 RESULTS
(all comparisons versus the prior year period unless otherwise
noted)
- Net revenue of $67.9 million, +12.3%
- Gross profit of $14.4 million; gross margin of 21.2%, +440
basis points
- GAAP Net Loss of ($0.0) million; Adjusted Net Income of $1.4
million, or $0.07 per diluted share
- Adjusted EBITDA of $6.3 million, +131%, 9.3% of net revenue,
+475 basis points
- Backlog of $238.1 million, +15.8% driven by new products
- Net leverage of 3.5X, down from 3.9X at December 31, 2022;
total liquidity of $36.6 million
MANAGEMENT COMMENTARY
“Manitex delivered another consecutive quarter of profitable
growth, a performance highlighted by continued strength in new
orders and sustained margin expansion,” stated Michael Coffey, CEO
of Manitex. “The favorable demand conditions evidenced throughout
last year have continued into the first quarter, particularly in
North America, resulting in 16% year-over-year total backlog
growth, the highest backlog level in more than five years. Recently
announced product introductions are resonating with our customers,
further contributing to sales growth in the period.”
“Last quarter we introduced Elevating Excellence, our three-year
strategic plan. Significant progress has been made since, as
evidenced in our Q1 results,” continued Coffey. “Our Elevating
Excellence value creation framework continues to drive measurable
commercial expansion and operational improvements across the
organization. Evidence of our progress is reflected in our first
quarter Adjusted EBITDA margin, which increased 475 basis points on
a year-over-year basis to 9.3%, overcoming the seasonal softness
expected this time of year.”
“Product innovation remains a central pillar of our multi-year
commercial growth strategy,” continued Coffey. “During the last
twelve months, we’ve introduced several next-generation crane
technologies, including the recently launched ECSY-Electric Crane
System and our 85-ton TC850 Series truck-mounted cranes, both of
which were on display at CONEXPO 2023, the largest construction
trade show in North America. At the tradeshow, Manitex received
record new orders, much of which is not yet reflected in our strong
first quarter backlog reported today. We are on track to introduce
more innovative solutions in 2023, rapidly expanding and updating
our offering. We anticipate this focus on new product development
will further support our strategic focus on organic sales growth as
we introduce category-leading technologies within underserved,
high-growth market verticals. I look forward to sharing these
details with you later in the year.”
“Our ratio of net debt to trailing twelve-month Adjusted EBITDA
declined to 3.5x at the end of the first quarter, as improved
operating results moved us closer toward achieving our long-term
target of at-or-below 3.0x,” stated Joseph Doolan, Chief Financial
Officer of Manitex. We remain well-capitalized to support the
growth of the business, with $36.6 million of total cash and
availability under our credit facility.”
“We are in the early phases of a multi-year business
transformation that seeks to drive value creation through a
combination of commercial expansion, operational improvements and a
disciplined approach to capital allocation,” continued Coffey. “At
a commercial level, we will seek to increase our sales mix within
higher-value product categories, with an emphasis on the North
American market. Operationally, we are focused on driving economies
of scale that lower our production costs and increase our
production velocity. Finally, with respect to our capital
allocation strategy, we will continue to prioritize debt reduction
and select investments in high-return organic growth
initiatives.”
“This year, our team will be stay focused on enhancing the
foundational systems and processes required to support efficient
growth,” continued Coffey. “In application, this means improving
how we source, analyze and deploy data to drive informed business
decisions. In April 2023, we successfully completed the final phase
of an ERP upgrade that will support us as we enter our next phase
of growth, following a similar upgrade that occurred at Rabern in
December 2022. These changes are further positioning us to
capitalize on strong demand within both new and existing markets,
as evidenced by our strong first quarter results.”
"Today, we are reiterating our full-year 2023 adjusted EBITDA
growth guidance first introduced last quarter,” continued Coffey.
“Given our solid first quarter results, continued new order
momentum, and sustained margin improvements, we remain on pace to
deliver low double-digit adjusted EBITDA growth in 2023.”
FIRST QUARTER 2023 PERFORMANCE
The Company reported net revenue of $67.9 million in the first
quarter 2023, an increase of 12.3% versus the prior-year period,
driven mainly by contributions from the Rabern Rentals acquisition
completed in April 2022. Revenue growth was negatively impacted by
$1.2 million, or approximately 3.3%, due to lower truck chassis
sales, which are largely pass-through revenue items. The Company
expects lower chassis sales to be a headwind to reported sales
growth and a benefit to reported gross margin in 2023.
Lifting Equipment Segment revenue was $61.1 million in the first
quarter 2023, an increase of 1.1%, versus the prior-year period. As
detailed previously, lower truck chassis sales impacted first
quarter revenue by $1.2 million. Lifting Equipment revenue growth
was driven by improving demand trends in domestic and international
markets, coupled with improved throughput in manufacturing
facilities.
Rental Equipment Segment revenue was $6.8 million in the first
quarter 2023, supported by strong end-market demand in key North
Texas markets, including the opening of the Company’s Lubbock,
Texas location in March 2023. The Rabern business benefitted from
the deployment of new rental fleet acquired in 2022 and market
share gains in its Texas market.
Gross profit was $14.4 million in the first quarter, an increase
from $10.1 million in the prior year period due to strong revenue
growth, benefits from the Company’s operational improvement
initiatives, and improved mix. As a result of these factors, gross
profit margin increased 440 basis points to 21.2% during the first
quarter 2023.
SG&A expense was $11.0 million for the first quarter,
compared to $8.8 million for the comparable period last year. The
increase was primarily related to SG&A expense of $1.4 million
related to the Rabern acquisition, costs related to attending the
Con Expo trade show, and increased stock compensation expense,
partially offset by the higher transaction costs which were
incurred in the first quarter 2022.
Operating income was $2.6 million for the first quarter,
compared to operating income of $0.7 million for the same period
last year. First quarter operating margin was 3.8%, up from 1.1% in
the prior year period. The year-over-year improvement in operating
income was driven by the strong gross margin performance and
disciplined cost control, offset by nearly $1.0 million of sales
and marketing expenses related to the CONEXPO 2023 trade show.
The Company delivered a GAAP Net Loss of $26,000 for the first
quarter 2023, compared to net income of $0.2 million, or $0.01 per
diluted share, for the same period last year. Adjusted net income
was $1.4 million, or $0.07 per diluted share in the first quarter
2023, an increase compared to adjusted net income of $0.9 million,
or $0.05 per diluted share, for the same period last year. Adjusted
net income excludes $0.8 million of stock compensation expense and
approximately $0.7 million of other non-recurring expenses in the
first quarter of 2023.
Adjusted EBITDA was $6.3 million for the first quarter 2023, or
9.3% of sales, compared to $2.7 million, or 4.5% of sales, for the
same period last year. See Non-GAAP reconciliations in the appendix
of this release.
As of March 31, 2023, total backlog was $238.1 million, up 3.4%
from the end of 2022 and up 15.8% from the end of the first quarter
2022, driven by continued favorable trends in key end markets and
the contribution from new product introductions in North
America.
BALANCE SHEET AND LIQUIDITY
As of March 31, 2023, total debt was $96.2 million, compared to
$90.3 million at the end of fourth quarter 2022. Cash and cash
equivalents as of March 31, 2023 were $10.1 million, resulting in
net debt of $86.0 million, compared to $82.1 million at the end of
fourth quarter 2022. Net debt at the end of the first quarter 2023
was up modestly from year-end due to rental equipment purchases to
support growth for the Rabern business and seasonal working capital
needs. Net leverage was 3.5x at the end of first quarter 2023, down
from 3.9x at the end of fourth quarter 2022. As of March 31, 2023,
Manitex had total cash and availability of $36.6 million.
STRATEGIC UPDATE - ELEVATING EXCELLENCE INITIATIVE
In early 2023, Manitex formally launched its multi-year business
transformation strategy, Elevating Excellence, which aims to drive
sustained commercial growth and improved operating performance,
ultimately resulting in long-term value creation for shareholders.
The three main tenets of the business strategy include generating
commercial growth (organic market share expansion, product
innovation, expanded aftermarket focus), enhancing operating
performance (optimized manufacturing resources, enhanced sourcing
and procurement, product mix optimization), and disciplined capital
allocation.
Key progress achieved during the first quarter against the
strategy are as follows:
- Commercial Growth. Manitex continues to generate strong
order momentum, which drove 16% backlog growth during the first
quarter 2023. A key driver of the strong growth has been product
innovation and new product introductions, including the recent
successful launches of the Electric Crane System (ECSY) and TC850
Series 85-ton truck crane. These recently launched products along
with a line-up of the Company’s innovative lifting solutions were
on display at CONEXPO in March and helped drive record orders at
the event, which saw Manitex sell every piece of equipment that was
on-site at the show. Manitex’s focus on innovation will result in a
number of new product introductions in 2023, which will be focused
on the Company’s core lifting equipment product categories that can
be marketed in both North America and Europe. Our Rental segment
generated strong organic revenue growth during the first quarter
owing to favorable end-market demand in key north Texas markets,
pricing increases, and the Lubbock, TX branch opening in March. In
the first year of ownership, Rabern has exceeded expectations and
Manitex is focused on continuing to expand Rabern’s rental
footprint.
- Enhanced Operating Performance. First quarter Adjusted
EBITDA margin benefited from continued improvements in
manufacturing throughput and realized price increases, as the
Company has made meaningful progress on its productivity
improvement initiatives. Importantly, the recent ERP system launch
has thus far been seamlessly integrated and is expected to result
in additional efficiency benefits in the coming years. The Company
continues to focus on additional opportunities to further optimize
the resource base to drive higher throughput and is also pursuing
several sourcing initiatives that could potentially result in
incremental cost savings. While conditions have improved, the
business continues to experience some supply chain challenges,
particularly in the United States, owing to delays in rolled steel
and fabricated products.
- Disciplined Capital Allocation. Manitex’s initial
capital allocation priorities will focus on debt reduction and
organic growth investments in 2023. As of March 31, 2023, Manitex’s
net leverage ratio was 3.5x, down from 3.9x at year-end. The
Company continues to target a net leverage ratio of at-or-below
3.0x, consistent with its mandate to optimize balance sheet
flexibility.
LONG-TERM FINANCIAL TARGETS
Manitex introduced long-term financial targets as part of its
Elevating Excellence initiative. The full-year 2025 financial
targets reflect the underlying strength of Company’s end markets
and expected commercial and operational benefits from the Elevating
Excellence initiatives. The Company’s financial targets are
unchanged, as detailed in the following table.
($ in millions)
Full-Year
Full Year 2025
2022 Actual
Low-Case
Base-Case
High-Case
Total Revenue
$273.9
$325
$342
$360
Total Adjusted EBITDA
$21.3
$35
$40
$45
Total Adjusted EBITDA Margin
7.8%
10.8%
11.8%
12.8%
These targets are current as of the time provided and subject to
change, given markets conditions.
FIRST QUARTER 2023 RESULTS CONFERENCE CALL
Manitex will host a conference call today at 9:00 AM ET to
discuss the Company’s first quarter 2023 results and updated
corporate strategy.
A webcast of the conference call and accompanying presentation
materials will be available in the Investor Relations section of
the Manitex website at
https://www.manitexinternational.com/eventspresentations.aspx, and
a replay of the webcast will be available at the same time shortly
after the webcast is complete.
To participate in the live teleconference:
Domestic Live: (888) 886-7786 International Live: (416)
764-8658
To listen to a replay of the teleconference, which will be
available through May 18, 2023:
Domestic Replay: (844) 512-2921 International Replay: (412)
317-6671 Passcode: 91835093
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. All per share amounts are on a fully diluted
basis. The quarterly amounts described below are unaudited, are
reported in thousands of U.S. dollars, and are as of the dates
indicated.
ABOUT MANITEX INTERNATIONAL
Manitex International is a leading provider of mobile truck
cranes, industrial lifting solutions, aerial work platforms,
construction equipment and rental solutions that serve general
construction, crane companies, and heavy industry. The company
engineers and manufactures its products in North America and
Europe, distributing through independent dealers worldwide. Our
brands include Manitex, PM, Oil & Steel, Valla, and Rabern
Rentals.
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.
MANITEX INTERNATIONAL, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share and per
share data)
(Unaudited)
March 31, 2023
December 31, 2022
ASSETS
Current assets
Cash
$
9,927
$
7,973
Cash – restricted
208
217
Trade receivables (net)
43,395
43,856
Other receivables
1,742
1,750
Related party receivables (net)
66
-
Inventory (net)
79,051
69,801
Prepaid expense and other current
assets
3,504
3,832
Assets held for sale
75
75
Total current assets
137,968
127,504
Total fixed assets, net of accumulated
depreciation of $24,423 and $22,441 at March 31, 2023 and December
31, 2022, respectively
51,849
51,697
Operating lease assets
7,954
5,667
Intangible assets (net)
13,877
14,367
Goodwill
37,164
36,916
Deferred tax assets
452
452
Total assets
$
249,264
$
236,603
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
49,256
$
45,682
Accrued expenses
13,052
12,379
Related party payables (net)
-
60
Notes payable
21,237
22,666
Current portion of finance lease
obligations
532
509
Current portion of operating lease
obligations
2,134
1,758
Customer deposits
2,732
3,407
Total current liabilities
88,943
86,461
Long-term liabilities
Revolving term credit facilities (net)
49,190
41,479
Notes payable (net)
21,970
22,261
Finance lease obligations (net of current
portion)
3,239
3,382
Operating lease obligations (net of
current portion)
5,820
3,909
Deferred gain on sale of property
407
427
Deferred tax liability
4,781
5,151
Other long-term liabilities
5,580
5,572
Total long-term liabilities
90,987
82,181
Total liabilities
179,930
168,642
Commitments and contingencies
Equity
Preferred Stock—Authorized 150,000 shares,
no shares issued or outstanding at March 31, 2023 and December 31,
2022
—
—
Common Stock—no par value 25,000,000
shares authorized, 20,161,811 and 20,107,014 shares issued and
outstanding at March 31, 2023 and December 31, 2022,
respectively
133,659
133,289
Paid-in capital
4,622
4,266
Retained deficit
(73,285
)
(73,338
)
Accumulated other comprehensive loss
(5,149
)
(5,822
)
Equity attributable to shareholders of
Manitex International
59,847
58,395
Equity attributed to noncontrolling
interest
9,487
9,566
Total equity
69,334
67,961
Total liabilities and equity
$
249,264
$
236,603
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except for share and per
share amounts)
(Unaudited)
Three Months Ended March
31,
2023
2022
Net revenues
$
67,871
$
60,420
Cost of sales
53,461
50,295
Gross profit
14,410
10,125
Operating expenses
Research and development costs
814
716
Selling, general and administrative
expenses
11,031
8,759
Total operating expenses
11,845
9,475
Operating income (loss)
2,565
650
Other income (expense)
Interest expense
(1,765
)
(505
)
Interest income
-
2
Foreign currency transaction gain
(loss)
(55
)
(49
)
Other income (expense)
(758
)
264
Total other income (expense)
(2,578
)
(288
)
Income (loss) before income
taxes
(13
)
362
Income tax expense
13
132
Net income (loss)
$
(26
)
$
230
Net income (loss) attributable to
noncontrolling interest
(79
)
-
Net income attributable to shareholders
of Manitex International, Inc.
$
53
$
230
Income (loss) per share
Basic
$
-
$
0.01
Diluted
$
-
$
0.01
Weighted average common shares
outstanding
Basic
20,122,054
19,961,785
Diluted
20,122,054
20,014,180
Net Sales and Gross Margin
Three Months Ended
March 31, 2023
December 31, 2022
March 31, 2022
As Reported
As Adjusted
As Reported
As Adjusted
As Reported
As Adjusted
Net sales
$
67,871
$
67,871
$
78,820
$
78,820
$
60,420
$
60,420
% change Vs Q4 2022
(13.9
%)
(13.9
%)
% change Vs Q1 2022
12.3
%
12.3
%
Gross margin
14,410
14,257
15,183
15,355
10,125
10,125
Gross margin % of net sales
21.2
%
21.0
%
19.3
%
19.5
%
16.8
%
16.8
%
Backlog
Mar 31,
2023
Dec 31,
2022
Sept 30,
2022
June 30,
2022
Mar 31,
2022
Backlog from continuing operations
$
238,096
$
230,206
$
207,032
$
213,810
$
205,682
Change Versus Current Period
3.4
%
15.0
%
11.4
%
15.8
%
Backlog is defined as orders for equipment
which have not yet shipped as well as orders by foreign
subsidiaries for international deliveries. 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.
Reconciliation of GAAP Net Income
(Loss) to Adjusted Net Income
Three Months Ended
March 31, 2023
December 31, 2022
March 31, 2022
Net income (loss)
$
(26
)
$
659
$
230
Adjustments, including net tax impact
1,436
1,332
713
Adjusted net income (loss)
$
1,410
$
1,991
$
943
Weighted diluted shares outstanding
20,122,054
20,103,398
20,014,180
Diluted earnings (loss) per share as
reported
$
-
$
0.04
$
0.01
Total EPS effect
$
0.07
$
0.06
$
0.04
Adjusted diluted earnings (loss) per
share
$
0.07
$
0.10
$
0.05
Reconciliation of GAAP Net Income
(Loss) to Adjusted EBITDA
Three Months Ended
March 31, 2023
December 31, 2022
March31, 2022
Net Income (loss)
$
(26
)
$
659
$
230
Interest expense
1,765
1,655
505
Tax expense
13
1,544
132
Depreciation and amortization expense
3,052
2,885
1,145
EBITDA
$
4,804
$
6,743
$
2,012
Adjustments:
Stock compensation
$
766
$
633
$
232
Pension settlement
487
-
-
Litigation / legal settlement
324
178
318
FX
55
376
49
Severance / restructuring costs
-
108
29
Gain on sale of building
-
(16
)
-
Rabern transaction costs
-
-
314
Valla Earnout
-
-
(202
)
Other
(153
)
107
(27
)
Total Adjustments
$
1,479
$
1,386
$
713
Adjusted EBITDA
$
6,283
$
8,129
$
2,725
Adjusted EBITDA as % of sales
9.3
%
10.3
%
4.5
%
Net Debt
March 31, 2023
December 31, 2022
March 31, 2022
Total cash & cash
equivalents
$
10,135
$
8,190
$
15,745
Notes payable - short term
$
21,237
$
22,666
$
20,388
Current portion of finance leases
532
509
450
Notes payable - long term
21,970
22,261
9,939
Finance lease obligations - LT
3,239
3,382
3,775
Revolver, net
49,190
41,479
12,730
Total debt
$
96,168
$
90,297
$
47,282
Net debt
$
86,033
$
82,107
$
31,537
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504005275/en/
IR CONTACT Paul Bartolai or Noel Ryan
MNTX@val-adv.com
Manitex (NASDAQ:MNTX)
Historical Stock Chart
From Apr 2024 to May 2024
Manitex (NASDAQ:MNTX)
Historical Stock Chart
From May 2023 to May 2024