Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Manitex International Reports Third Quarter 2023 Results


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)

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.

 


These press releases may also interest you

at 09:52
ColorComm Media Group, a full service marketing and communications firm headquarted in New York City, has been tapped by Sprinkles to market a new product launch for Spring 2024. The announcement of this partnership highlights Sprinkles trust and...

at 09:45
Company Reiterates that Previously Announced Material Weaknesses Are Not Expected to Impact Full Fiscal Year 2023 Financial Results to be Included in the Form 10-K Reiterates 2023 Form 10-K Expected to Be Filed Within the Next 15 Days George F....

at 09:44
UnionPay International, the leading global card scheme, has entering into a Memorandum of Understanding (MOU) with The Tourism Organisation of Serbia (TOS). This strategic partnership aims to enhancing the payment experience for tourists and to...

at 09:40
The Honourable Diane Lebouthillier, Minister of Fisheries, Oceans and the Canadian Coast Guard and Member of Parliament for Gaspésie?Les Îles-de-la-Madeleine, and Stéphane Sainte-Croix, Member of the National Assembly for Gaspé, on behalf of...

at 09:40
The Kinetix Group (TKG) announced the release of its new white paper on optimizing hospital engagement. According to CMS,...

at 09:34
United Real Estate Partners, an affiliate of United Real Estate, announced a merger today with New Orleans Northshore agency, Team Geaux Realty. The move expands Metairie-based United Real Estate Partners to Mandeville. The union is a key strategic...



News published on and distributed by: