Manitex International, Inc. Reports Record Third Quarter 2012 Results Revenues Increase 44% to $53.4 Million

Net Income Increases 145% to $2.5 Million, or $0.21 in EPS

2012 Year-to-Date Performance Surpasses Full Year 2011 Results

BRIDGEVIEW, Ill., Nov. 8, 2012 /PRNewswire/ -- Manitex International, Inc. (Nasdaq: MNTX), a leading provider of engineered lifting solutions including boom truck and rough terrain cranes, rough terrain forklifts, special mission oriented vehicles, container handling equipment and specialized engineered trailers today announced third quarter 2012 results.

Third Quarter 2012 Financial Highlights:

  • Net revenues rose 44% to a record $53.4 million, compared to the prior year's quarter of $36.9 million
  • Net income of $2.5 million, or $0.21 in EPS (earning per share) increased 145% compared to the prior year's quarter of $1.0 million and $0.09 per share.
  • EBITDA (1) increased 70% to $5.3 million, equaling 10% of sales, compared to $3.1 million or 8.5% for the third quarter of 2011.
  • Repaid $3.8 million of long term debt from net proceeds of 500,000 share equity raise
  • Consolidated backlog of $125.8 million as of September 30, 2012 represents a 50% year to date increase and is 99% higher than the comparable quarter's backlog a year ago.

Chairman and Chief Executive Officer, David Langevin, commented, "Our third quarter results for sales, net income and EBITDA are quarterly records for our company and in our first nine months, we've significantly exceeded the results of all of 2011. These results, despite serious uncertainty in the broader markets, reflect a well-focused strategy and execution commitment from each of our operating teams. During the quarter we took several more steps to position ourselves for long-term sustained performance including a 57% reduction in our long term, acquisition related, debt and the introduction of a new 15 ton crane targeted for the refining, steel and certain industrial niches. As we go forward, we will continue to focus on expanding our sales, cost reduction, quality control, and introducing new products which serve our customers' needs."

Third quarter 2012 revenues of $53.4 million increased $16.4 million or 44% from the third quarter of 2011 resulting from production increases at several facilities implemented in response to the higher levels of demand experienced over the past nine months. Consistent with the business mix in the first half of the year, Manitex boom trucks were responsible for over 80% of the increase where the higher tonnage and higher reach boom trucks for the energy and power line construction sectors continue to represent the principal product in demand.  The remaining significant increases in year over year quarterly revenues were generated by specialized material handling products, and Load King trailers, which were driven by strong end user demand in the energy sector. Local currency sales of CVS specialized port and container handling equipment increased on a year over year quarterly basis by approximately 18%, driven by international sales. However this was offset by an 11% strengthening of the dollar over the period.

Net income for the third quarter 2012 of $2.5 million or $0.21 per share was an increase of $1.5 million, (145%) or $0.12 per share, over the third quarter of 2011. The 44% year over year improvement in revenue resulted in an increase in gross profit of $3.0 million, which was partially offset by additional expenditures for R&D of $0.2 million and SG&A of $0.6 million. The increase in R&D expenditure related to new products to be launched in quarter four 2012 and in 2013. The increase in SG&A reflects the impact of increased sales related costs from expansion of our sales organization, commissions and increased performance related compensation. As a percent of revenue, SG&A expense declined by 310 basis points to 10.8% of revenues compared to the third quarter of 2011, resulting in EBITDA margin of 10%, the highest the company has ever seen.

Andrew Rooke, Manitex International President and Chief Operating Officer, commented, "The third quarter was another solid step towards achieving a year of significantly increased revenue, income and cash flow growth as we continued to execute our strategy. Our operating leverage allowed us to convert revenue growth of 44% to net income growth of 145% and generate EBITDA margins of 10%, driven by planned output expansion to accommodate increased end user demand for our innovative products. Our investment in R&D, which is up 36% over the quarter and 71% year to date, has resulted in several well received new products which we anticipate will fuel additional growth opportunities next year. With the objective of funding future growth and managing risk, we continue to strengthen our balance sheet, and in the quarter repaid long term acquisition related debt of $3.8 million.  As at September 30, 2012, this has contributed to two of our key balance sheet ratios improving on prior quarters, with our debt to trailing twelve month EBITDA ratio at 2.8 times, and our interest cover ratio at a strong 6.8 times."

Outlook

Mr. Langevin continued, "We expect sales for the year 2012 to be slightly greater than $200 million, which would represent 40% growth over last year, with EPS and EBITDA growing by approximately 175 % and 65% respectively for the year. These increases, particularly, when considering that our macro-economic environment remains cautious, would represent clear execution of our long-term operating and strategic objectives, and gives us confidence for continued growth moving forward into 2013.

(1) EBITDA and adjusted net income are non-GAAP (generally accepted accounting principles in the United States of America) financial measures.  These measures may be different from non-GAAP financial measures used by other companies.  We encourage investors to review the section below entitled "Non-GAAP Financial Measures."

Conference Call:

Management will today host a conference call at 4:30 p.m. Eastern Time to discuss the results with the investment community. Anyone interested in participating should call 1-877-941-4774 if calling within the United States or 480-629-9760 if calling internationally. A replay will be available until November 15, 2012, which can be accessed by dialing 1-877-870-5176 if calling within the United States or 858-384-5517 if calling internationally. Please use passcode 4572562 to access the replay.

The call will also be accompanied by a webcast over the Internet with slides, which are also accessible at the Investor Relations section of the Company's corporate website at www.manitexinternational.com.

About Manitex International, Inc.

Manitex International, Inc. is a leading provider of engineered lifting solutions including cranes, reach stackers and associated container handling equipment, rough terrain forklifts, indoor electric forklifts and special mission oriented vehicles, including parts support.

Our Manitex subsidiary manufactures and markets a comprehensive line of boom trucks and sign cranes through a national and international dealership network. Our boom trucks and crane products are primarily used in industrial projects, energy exploration and infrastructure development, including roads, bridges, and commercial construction.   Additionally, Badger Equipment Company, a subsidiary located in Winona, Minnesota, manufactures specialized rough terrain cranes and material handling products.  Badger primarily serves the needs of the construction, municipality, and railroad industries. Our Italian subsidiary, CVS Ferrari, srl, designs and manufactures a range of reach stackers and associated lifting equipment for the global container handling market, which is sold through a broad dealer network.  Our Manitex Liftking subsidiary is a provider of material handling equipment including the Noble straight-mast rough terrain forklift product line, Lowry high capacity cushion tired forklift and Schaeff electric indoor forklifts as well as specialized carriers, heavy material handling transporters and steel mill equipment. Manitex Liftking's rough terrain forklifts are used in both commercial and military applications. Our subsidiary, Manitex Load King located in Elk Point, South Dakota is a manufacturer of specialized engineered trailers and hauling systems, typically used for transporting heavy equipment.   

Our Crane and Machinery division is a Chicago based distributor of cranes including Terex truck and rough terrain cranes, and our own Manitex product line. Crane and Machinery provides aftermarket service in its local market as well as being a leading distributor of OEM crane parts, supplying parts to customers throughout the United States and internationally.  The division also provides a wide range of used lifting and construction equipment of various ages and conditions, and has the capability to refurbish the equipment to the customer's specifications.

Forward-Looking Statement

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. 

Hayden IR

David Langevin 

Peter Seltzberg

Chairman and Chief Executive Officer 

Investor Relations                      

(708) 237-2060 

646-415-8972

djlangevin@manitexinternational.com 

peter@haydenir.com

 

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for share and per share amounts)







Three Months Ended
September  30,

Nine Months Ended
September  30,


2012

2011

2012

2011


Unaudited

Unaudited

Unaudited

Unaudited

Net revenues

$          53,380

$          36,942

$        148,725

$   105,730

Cost of sales 

42,570

29,118

118,583

83,969






Gross profit    

10,810

7,824

30,142

21,761

Operating expenses





Research and development costs 

601

442

1,920

1,123

Selling, general and administrative expenses

5,742

5,149

17,039

14,912






Total operating expenses

6,343

5,591

18,959

16,035






Operating income

4,467

2,233

11,183

5,726

Other income (expense)





Interest expense

(578)

(653)

(1,845)

(1,924)

Foreign currency transaction (losses) gains 

5

(15)

(89)

33

Other (expense) income

(77)

1

2

18






Total other expense

(650)

(667)

(1,932)

(1,873)






Income before income taxes

3,817

1,566

9,251

3,853

Income tax

1,313

546

3,188

1,362






Net income

$            2,504

$            1,020

$            6,063

$           2,491






Earnings Per Share





Basic 

$              0.21

$              0.09

$              0.51

$             0.22

Diluted

$              0.21

$              0.09

$              0.51

$             0.22

Weighted average common shares outstanding





Basic 

12,140,674

11,409,533

11,845,729

11,407,296

Diluted 

12,148,776

11,454,012

11,854,322

11,545,623

 

  

MANITEX INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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





September 30,
2012

December 31,
2011


Unaudited

Unaudited

ASSETS



Cash 

$      3,305

$               71

Trade receivables (net)

33,087

23,913

Accounts receivable finance 

305

394

Other receivables

2,808

2,284

Inventory (net)

60,506

42,307

Deferred tax asset 

923

923

Prepaid expense and other

2,516

1,317




Total current assets

103,450

71,209




Accounts receivable finance

336

557

Total fixed assets (net)

10,273

11,017

Intangible assets (net) 

18,587

20,153

Deferred tax asset

1,391

3,238

Goodwill 

15,266

15,267

Other long-term assets 

134

150




Total assets

$  149,437

$      121,591




LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities



Notes payable—short term

$      5,747

$          5,349

Current portion of capital lease obligations

1,051

634

Accounts payable

29,567

18,421

Accounts payable related parties

583

470

Accrued expenses

6,091

4,946

Other current liabilities

1,616

357




Total current liabilities

44,655

30,177




Long-term liabilities



Revolving term credit facilities

32,549

25,874

Deferred tax liability

4,825

4,825

Notes payable

2,675

6,335

Capital lease obligations

4,282

4,035

Deferred gain on sale of building 

2,123

2,408

Other long-term liabilities

1,120

1,143




Total long-term liabilities           

47,574

44,620




Total liabilities

92,229

74,797




Commitments and contingencies



Shareholders' equity



Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at September  30, 2012 and December 31, 2011

Common Stock—no par value, 20,000,000 shares authorized, 12,227,631 and 11,681,051 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively

52,760

48,571

Warrants

232

Paid in capital

1,156

1,098

Retained earnings (deficit)

2,664

(3,368)

Accumulated other comprehensive income

628

261




Total shareholders' equity

57,208

46,794




Total liabilities and shareholders' equity

$  149,437

$      121,591




MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands, except for share amounts)





Nine Months Ended
September  30,


2012

2011


Unaudited

Unaudited

Cash flows from operating activities:



Net income

$     6,063

$     2,491

Adjustments to reconcile net income to cash used for operating activities:



Depreciation and amortization 

2,672

2,518

Changes in allowances for doubtful accounts

2

(19)

Changes in inventory reserves   

128

210

Deferred income taxes   

1,849

917

Stock based deferred compensation

204

95

Loss (gain) on disposal of fixed assets

(113)

32

Reserves for uncertain tax provisions

6

8

Changes in operating assets and liabilities: 



(Increase) decrease in accounts receivable    

(9,631)

(3,676)

(Increase) decrease in accounts receivable finance

307

(Increase) decrease in inventory

(17,857)

(8,913)

(Increase) decrease in prepaid expenses

(1,190)

310

(Increase) decrease in other assets 

16

(63)

Increase (decrease) in accounts payable

11,175

1,756

Increase (decrease) in accrued expense 

1,126

(59)

Increase (decrease) in other current liabilities

1,257

(81)

Increase (decrease) in other long-term liabilities

(29)




Net cash used for operating activities 

(4,015)

(4,474)




Cash flows from investing activities:



Proceeds from the sale of fixed assets  

154

282

Acquisition of CVS assets 

(1,585)

Purchase of property and equipment 

(669)

(446)




Net cash used for investing activities  

(515 )

(1,749)




Cash flows from financing activities:



Borrowing on revolving term credit facilities

6,447

5,817

Repayments on revolving term credit facility 

0

Working capital borrowing

3,692

1,111

Shares repurchased for income tax withholdings on stock based deferred compensation

(12)

Proceeds of stock offering

3,780

New borrowings

763

2,458

Note payments 

(7,718)

(2,399)

Proceeds from capital leases

1,166

Payments on capital lease obligations

(502)

(429)




Net cash provided by financing activities

7,628

6,546




Net increase in cash and cash equivalents

3,098

323

Effect of exchange rate change on cash 

136

(212)

Cash and cash equivalents at the beginning of the year

71

662




Cash and cash equivalents at end of period

$     3,305

$        773




Supplemental Information

In an effort to provide investors with additional information regarding the Company's results, Manitex International refers to various non-GAAP (U.S. generally accepted accounting principles) financial measures which management believes provides useful information to investors.  These measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. Manitex International believes that this information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Manitex International uses these non–GAAP financial measures to establish internal budgets and targets and to evaluate the Company's financial performance against such budgets and targets.

The amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of or for the period ended September 30, 2012, unless otherwise indicated.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measure: "EBITDA" (earnings before interest, tax, depreciation and amortization).  This non-GAAP term, as defined by the Company, may not be comparable to similarly titled measures used by other companies. EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA should not be considered in isolation or as a substitute for net earnings, operating income and other consolidated earnings data prepared in accordance with GAAP or as a measure of our profitability.  A reconciliation of net income to EBITDA is provided below.

The Company's management believes that EBITDA and EBITDA as a percentage of sales represent key operating metrics for its business.  Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a key indicator used by management to evaluate operating performance. While EBITDA is 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 this measure is useful to investors in assessing our capital expenditure and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of EBITDA to GAAP financial measures for the three and nine month periods ended September 30, 2012 and 2011 is included with this press release below and with the Company's related Form 8-K.

Reconciliation of GAAP Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in thousands)



Three Months Ended

Nine Months Ended


September 30,

2012

September 30,

2011

September 30,

2012

September 30,

2011

Net  income

2,504

1,020

6,063

2,491

Income tax

1,313

546

3,188

1,362

Interest expense

578

653

1,845

1,924

Foreign currency transaction losses (gain)  

(5)

15

89

(33)

Other (income) expense

77

(1)

(2)

(18)

Depreciation & Amortization

882

914

2,672

2,518

Earnings before interest, taxes, depreciation and amortization (EBITDA)

$5,349

$3,147

$13,855

$8,244

EBITDA % to sales

10.0%

8.5%

9.3%

7.8%

Backlog

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.


September 30, 2012

June 30,

2012

March 31,

 2012

December 31,

2011

September 30,

2011

Backlog

$125,785

$149,564

$133,322

$83,700

$63,105

09/30/2012 increase (decrease) v prior period

-

(15.9%)

(5.7%)

50.3%

99.3%

Current Ratio is calculated by dividing current assets by current liabilities.


September 30, 2012

December 31, 2011

Current Assets

$103,450

$71,209

Current Liabilities

44,655

30,177

Current Ratio

2.3

2.4

Days Sales Outstanding, (DSO), is calculated by taking the sum of net trade and related party receivables divided by annualized sales per day (sales for the quarter, multiplied by 4, and the sum divided by 365).

Days Payables Outstanding, (DPO), is calculated by taking the sum of net trade and related party payables divided by annualized cost of sales per day (cost of goods sold for the quarter, multiplied by 4, and the sum divided by 365).

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 lines of credit.


September 30 , 2012

December 31, 2011

Current portion of long term debt

$5,747

$5,349

Current portion of capital lease obligations

1,051

634

Revolving term credit facilities

32,549

25,874

Notes payable – long term

2,675

6,335

Capital lease obligations

4,282

4,035

Debt

$46,304

$42,227

Interest Cover is calculated by dividing EBITDA (Earnings before interest, tax, depreciation and amortization) for the trailing twelve month period (October 1, 2011 to September 30, 2012) by interest expense as reported in the Consolidated Statement of Income for the same period.


12 Month Period

October 1, 2011 to September 30, 2012

EBITDA

$16,731

Interest Expense

$2,461

Interest Cover Ratio

6.8

Inventory turns are calculated by multiplying cost of goods sold for the referenced three month period by 4 and dividing that figure by inventory as at the referenced period.

Manufacturing Expenses include manufacturing wages, salaries, fixed and variable overhead costs.

Operating Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus other receivables, plus inventories, less Accounts payable. The Company considers excessive working capital as an inefficient use of resources, and seeks to minimize the level of investment without adversely impacting the ongoing operations of the business.


September 30,

 2012

December 31,

 2011

Trade receivables (net)

$33,087

$23,913

Other receivables

2,808

2,284

Inventory (net)

60,506

42,307

Less: Accounts payable

30,150

18,891

Total Operating Working Capital

$66,556

$49,613

% of Trailing Three Month Annualized Net Sales

31.2%

33.6%

Trailing Twelve Months EBITDA is calculated by adding the reported EBITDA for the past 4 quarters.

Three Months Ended:

EBITDA

December 31, 2011

2,876

March 31, 2012

3,390

June 30, 2012

5,116

September 30, 2012

5,349

Trailing Twelve Months EBITDA

$16,731

Trailing Three Month Annualized Net Sales is calculated using the net sales for quarter, multiplied by four.


Three Months Ended


September 30,

 2012

September 30,

 2011

Net sales

$53,380

$36,942

Multiplied by 4

4

4

Trailing Three Month Annualized Net Sales

$213,520

$147,768

Working capital is calculated as total current assets less total current liabilities


September 30, 2012

December 31, 2011

Total Current Assets

$103,450

$71,209

Less: Total Current Liabilities

44,655

30,177

Working Capital

$58,795

$41,032

SOURCE Manitex International, Inc.



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