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 September 30,
2023.
THIRD QUARTER 2023 RESULTS
(all comparisons versus the prior year period unless otherwise
noted)
- Net revenue of $71.3 million, +9.7%
- Gross profit of $16.6 million +34.4%; gross margin of 23.3%,
+427 basis points
- GAAP Net Income of $1.7 million; Adjusted Net Income of $2.9
million, or $0.14 per diluted share
- Adjusted EBITDA of $8.5 million, +61.7%; Adjusted EBITDA margin
of 11.9%, +381 basis points
- TTM Adjusted EBITDA now 10.2%
- Backlog of $196.9 million, -4.9%
- Net leverage of 2.9X, down from 3.9X at December 31, 2022;
total liquidity of $29 million
- Increasing full year guidance
MANAGEMENT COMMENTARY
“Our strong third quarter results demonstrate continued progress
on our multi-year business transformation strategy,” stated Michael
Coffey, CEO of Manitex. “Revenue, margin realization and Adjusted
EBITDA increased materially versus the prior year, while net
leverage declined for the fifth consecutive quarter, consistent
with our focus on balance sheet optimization.
“Earlier this year we introduced our new strategy, Elevating
Excellence, promising targeted commercial growth, improved
production output and higher margins,” continued Coffey. “Driven by
the extraordinary efforts of our manufacturing team, third quarter
revenue increased 10% on an organic basis versus the prior year
period. Lifting equipment revenue, when adjusting for
year-over-year chassis sale reductions, improved 21% in the
quarter. I am very proud of the team and their diligence.”
“The early benefits of our initiatives have meaningfully
exceeded expectations, resulting in significant margin expansion
and improved profitability for the organization,” continued Coffey.
“Third quarter gross margin increased 427 basis points on a
year-over-year basis to 23.3%, or more than 200 basis points higher
than any quarter we’ve reported in more than five years. We are
pleased with the improved margins and see further opportunities in
the future.”
“Adjusted EBITDA margin was 11.9% in the third quarter, up
nearly 400 basis points from the prior year,” continued Coffey.
“Adjusted EBITDA grew 60% in the period. Trailing twelve-month
EBITDA margins are now 10.2%, achieving short term goal we set for
2023. We are well positioned and on track to achieve our mid-term
goals ahead of schedule.”
“Last quarter we indicated that backlog would begin to decline
from historically high levels,” continued Coffey. “The decline is
driven by higher production levels, seasonal customer order timing,
and modest order intake declines in Western Europe. Our total
backlog at quarter end was $197 million and remains 3-times
pre-pandemic levels. Year-to-date book-to-build ratios are also
strong as is customer sentiment. Given favorable underlying demand
within core infrastructure, energy and mining markets, we remain
confident that Manitex will continue to deliver the above-market
growth outlined in our multi-year plan.”
“Our net debt to trailing twelve-month adjusted EBITDA declined
to 2.9x at the end of the third quarter, below our 2023 target of
3.0x,” stated Joseph Doolan, Chief Financial Officer of Manitex.
“Throughout 2023, we maintained high levels of working capital,
slowing our debt reduction plans. We remain highly focused on
further improving working capital efficiency over the coming
quarters. Our total liquidity of nearly $29 million, which includes
total cash and availability under our credit facilities, provides
us with ample financial flexibility to support our organic growth
initiatives into 2024.”
“At Manitex, we’re building a highly efficient equipment
solutions platform equipped to drive sustained, profitable growth
through the cycle,” stated Coffey. “Our third quarter results
highlight both the measurable progress we’ve made on our internal
initiatives in a relatively short period of time, while signaling
the significant growth potential evident within our business. Based
on our strong third quarter results and the continued momentum in
our business, we are pleased to be raising our full-year 2023
guidance and remain on-track to achieve our 2025 financial targets
detailed in our Elevating Excellence strategy.”
THIRD QUARTER 2023 PERFORMANCE
Manitex reported net revenue of $71.3 million in the third
quarter 2023, an increase of 9.7% versus the prior-year period,
driven by growth in the lifting segment. Revenue growth was
negatively impacted by $4.0 million, or approximately 6%, due to
lower truck chassis sales, which are largely pass-through revenue
items. The Company continues to expect 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 $63.7 million in the third
quarter 2023, an increase of 11%, versus the prior-year period, or
an increase of 21% when excluding the impact of truck chassis sales
in the quarter. The sales growth is a direct result of improvements
in manufacturing throughput, as well as favorable demand trends in
both domestic and international markets. In North America, strong
project activity from energy and infrastructure markets continues
to drive robust activity levels, while international markets are
benefitting from infrastructure projects in Europe and continued
strength from mining activity in South America.
Rental Equipment Segment revenue was $7.6 million in the third
quarter 2023, supported by strong end-market demand in key North
Texas markets, including contribution from the Lubbock, Texas
location that opened in March 2023. The Rabern business benefitted
from the deployment of new rental fleet acquired in 2022, pricing
gains, and our expansion into the Lubbock market.
Total gross profit was $16.6 million in the third quarter, an
increase from $12.3 million in the prior-year period due to revenue
growth, operational improvement initiatives, improved pricing
realization and sales mix. As a result of these factors, gross
profit margin increased 427 basis points to 23.3% during the third
quarter 2023. The higher US-based steel prices that were a headwind
during the second quarter were less of a factor during the third
quarter, as the Company has successfully implemented product
surcharges in an effort to offset the rising price of steel.
SG&A expense was $10.5 million for the third quarter,
compared to $10.4 million for the comparable period last year.
R&D costs of $0.9 million were up modestly from $0.7 million
last year.
Operating income was $5.2 million for the third quarter 2023,
compared to $1.2 million for the same period last year. Third
quarter operating margin was 7.3%, an improvement from 1.9% in the
prior year period. The year-over-year improvement in operating
income was driven by the strong operating performance and
disciplined cost control.
The Company delivered GAAP Net Income of $1.7 million, or $0.08
per diluted share, for the third quarter 2023, compared to a net
loss of ($3.4) million, or ($0.17) per diluted share, for the same
period last year.
Adjusted EBITDA was $8.5 million for the third quarter 2023, or
11.9% of sales, compared to $5.2 million, or 8.0% of sales, for the
same period last year. See Non-GAAP reconciliations in the appendix
of this release.
As of September 30, 2023, total backlog was $196.9 million, down
4.9% from the end of the third quarter 2022, driven by the
increased production velocity.
BALANCE SHEET AND LIQUIDITY
As of September 30, 2023, total debt was $91.3 million. Cash and
cash equivalents as of September 30, 2023, were $4.9 million,
resulting in net debt of $86.4 million, an improvement of $1.4
million for the quarter. Net leverage was 2.9x at the end of third
quarter 2023, down from 3.9x at the end of fourth quarter 2022. As
of September 30, 2023, Manitex had total cash and availability of
approximately $29 million.
FINANCIAL OUTLOOK
Based on the better than expected third quarter results and
continued momentum in the business, the Company increased financial
guidance for the full-year 2023. The increased financial targets
reflect the underlying strength of the Company’s end markets,
market share gains, and margin improvements driven by operational
benefits from the Elevating Excellence initiatives. The Company’s
updated financial targets are detailed in the following table.
($ in millions)
Full-Year
Full-Year
2022 Actual
2023
Total Revenue
$273.9
$285 to $290
Total Adjusted EBITDA
$21.3
$28 to $30
Total Adjusted EBITDA Margin
7.8%
9.7% to 10.5%
These targets are current as of the time provided and subject to
change, given markets conditions.
THIRD QUARTER 2023 RESULTS CONFERENCE CALL
Manitex will host a conference call today at 9:00 AM ET to
discuss the Company’s third 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:
(855) 327-6837
International Live:
(631) 891-4304
To listen to a replay of the teleconference, which will be
available through August 17, 2023:
Domestic Replay:
(844) 512-2921
International Replay:
(412) 317-6671
Passcode:
10022684
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 expenditures 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)
September 30, 2023
December 31, 2022
ASSETS
Current assets
Cash
$
4,673
$
7,973
Cash – restricted
203
217
Trade receivables (net)
47,114
43,856
Other receivables
1,059
1,750
Inventory (net)
85,186
69,801
Prepaid expense and other current
assets
2,748
3,907
Total current assets
140,983
127,504
Total fixed assets, net of accumulated
depreciation of $28,382 and $22,441 at September 30, 2023 and
December 31, 2022, respectively
48,747
51,697
Operating lease assets
7,498
5,667
Intangible assets (net)
12,769
14,367
Goodwill
36,674
36,916
Deferred tax assets
452
452
Total assets
$
247,123
$
236,603
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
50,665
$
45,682
Accrued expenses
13,780
12,379
Related party payables (net)
13
60
Notes payable
18,640
22,666
Current portion of finance lease
obligations
579
509
Current portion of operating lease
obligations
1,998
1,758
Customer deposits
2,220
3,407
Total current liabilities
87,895
86,461
Long-term liabilities
Revolving term credit facilities (net)
48,259
41,479
Notes payable (net)
20,857
22,261
Finance lease obligations (net of current
portion)
2,940
3,382
Operating lease obligations (net of
current portion)
5,500
3,909
Deferred gain on sale of property
367
427
Deferred tax liability
4,574
5,151
Other long-term liabilities
5,057
5,572
Total long-term liabilities
87,554
82,181
Total liabilities
175,449
168,642
Commitments and contingencies
Equity
Preferred Stock—Authorized 150,000 shares,
no shares issued or outstanding at September 30, 2023 and December
31, 2022
—
—
Common Stock—no par value 25,000,000
shares authorized, 20,252,114 and 20,107,014 shares issued and
outstanding at September 30, 2023 and December 31, 2022,
respectively
134,294
133,289
Paid-in capital
5,014
4,266
Retained deficit
(71,182
)
(73,338
)
Accumulated other comprehensive loss
(6,261
)
(5,822
)
Equity attributable to shareholders of
Manitex International
61,865
58,395
Equity attributed to noncontrolling
interest
9,809
9,566
Total equity
71,674
67,961
Total liabilities and equity
$
247,123
$
236,603
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except for share and per
share amounts)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net revenues
$
71,331
$
65,037
$
212,736
$
195,034
Cost of sales
54,746
52,693
166,806
160,198
Gross profit
16,585
12,344
45,930
34,836
Operating expenses
Research and development costs
$
861
$
659
2,512
2,095
Selling, general and administrative
expenses
10,545
10,440
32,342
30,317
Transaction costs
-
37
-
2,236
Total operating expenses
11,406
11,136
34,854
34,648
Operating income (loss)
5,179
1,208
11,076
188
Other income (expense)
Interest expense
(1,997
)
(1,409
)
(5,658
)
(2,982
)
Interest income
141
-
141
3
Foreign currency transaction gain
(loss)
(883
)
175
(1,656
)
268
Other income (expense)
196
(2,852
)
(541
)
(1,864
)
Total other expense
(2,543
)
(4,086
)
(7,714
)
(4,575
)
Income (loss) before income
taxes
2,636
(2,878
)
3,362
(4,387
)
Income tax expense (benefit)
742
206
962
570
Net income (loss)
1,894
(3,084
)
2,400
(4,957
)
Net income (loss) attributable to
noncontrolling interest
194
288
243
442
Net income (loss) attributable to
shareholders of Manitex International, Inc.
$
1,700
$
(3,372
)
$
2,157
$
(5,399
)
Income (loss) per share
Basic
$
0.08
$
(0.17
)
$
0.11
$
(0.27
)
Diluted
$
0.08
$
(0.17
)
$
0.11
$
(0.27
)
Weighted average common shares
outstanding
Basic
20,252,114
20,094,475
20,193,696
20,039,981
Diluted
20,254,830
20,094,475
20,196,255
20,039,981
Net Sales and Gross Margin
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
As Reported
As Adjusted
As Reported
As Adjusted
As Reported
As Adjusted
Net sales
$
71,331
$
71,331
$
73,534
$
73,534
$
65,037
$
65,037
% change Vs Q2 2023
(3.0
%)
(3.0
%)
% change Vs Q3 2022
9.7
%
9.7
%
Gross margin
16,585
16,585
14,935
14,935
12,344
12,354
Gross margin % of net sales
23.3
%
23.3
%
20.3
%
20.3
%
19.0
%
19.0
%
Backlog
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Sept 30, 2022
Backlog from continuing
operations
196,872
223,236
238,096
230,206
207,032
Change Versus Current Period
(11.8
%)
(17.3
%)
(14.5
%)
(4.9
%)
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 Net Income (Loss)
Attributable to Shareholders of Manitex International, Inc.
to Adjusted Net Income
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
Net income (loss) attributable to
shareholders of Manitex International, Inc.
$
1,700
$
404
$
(3,372
)
Adjustments, including net tax impact
1,222
1,307
4,077
Adjusted net income (loss) attributable to
shareholders of Manitex International, Inc.
$
2,922
$
1,711
$
705
Weighted diluted shares outstanding
20,254,830
20,209,959
20,094,475
Diluted earnings (loss) per share as
reported
$
0.08
$
0.02
$
(0.17
)
Total EPS effect
$
0.06
$
0.06
$
0.21
Adjusted diluted earnings (loss) per
share
$
0.14
$
0.08
$
0.04
Reconciliation of GAAP Net Income
(Loss) to Adjusted EBITDA
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
Net Income (loss)
$
1,894
$
532
$
(3,084
)
Interest expense
1,856
1,896
1,409
Tax expense
742
207
206
Depreciation and amortization expense
2,739
2,869
2,614
EBITDA
$
7,231
$
5,504
$
1,145
Adjustments:
Stock compensation
$
457
$
588
$
749
FX
883
718
(175
)
Pension settlement
(118
)
-
-
Litigation / legal settlement
-
-
3,171
Severance / restructuring costs
-
-
294
Rabern transaction costs
-
-
37
Other
-
-
5
Total Adjustments
$
1,222
$
1,306
$
4,081
Adjusted EBITDA
$
8,453
$
6,810
$
5,226
Adjusted EBITDA as % of sales
11.9
%
9.3
%
8.0
%
Net Debt
September 30, 2023
June 30, 2023
September 30, 2022
Total cash & cash
equivalents
$
4,876
$
7,302
$
11,865
Notes payable - short term
$
18,640
$
23,857
$
16,486
Current portion of finance leases
579
555
487
Notes payable - long term
20,857
21,585
23,829
Finance lease obligations - LT
2,940
3,093
3,518
Revolver, net
48,259
45,982
53,152
Total debt
$
91,275
$
95,072
$
97,472
Net debt
$
86,399
$
87,770
$
85,607
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/20231102266876/en/
IR CONTACT Paul Bartolai or Noel Ryan
MNTX@val-adv.com
Manitex (NASDAQ:MNTX)
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