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| 8-K - FORM 8-K - Manitex International, Inc. | d380411d8k.htm |
 Manitex International, Inc.
Corporate Presentation
(NASDAQ: MNTX)
July 2012
“Focused manufacturer
of engineered lifting
equipment”
Exhibit 99.1 |
 Forward Looking Statements &
Non GAAP Measures
“Focused manufacturer
of engineered lifting
equipment”
2
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of
1995: This presentation 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 presentation 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.
Non-GAAP
Measures:
Manitex
International
from
time
to
time
refers
to
various non-GAAP (generally accepted
accounting
principles)
financial
measures
in
this
presentation.
Manitex
believes
that
this
information
is
useful to
understanding its operating results without the impact of special items. See
Manitex’s first quarter 2012 earnings release on the Investor
Relations section of our website www.manitexinternational.com
for
a
description
and/or
reconciliation of
these measures. |
 “Focused
manufacturer of
engineered lifting
equipment”
3
Company Snapshot
Manitex
IInternational,
Inc.
Niches
Served
Company
Origin
Global provider of highly specialized and custom configured
cranes, materials and container handling equipment sold through
dealerships
Energy exploration and field development (including Canadian oil
sands and recent oil and natural gas development initiatives
throughout U.S.), power line construction, military, railroads, port,
government/agency
Launched as a private company in 2003, Manitex International is
publicly traded as NASDAQ:MNTX and has steadily grown
organically and as a consolidator in its industry, acquiring seven
branded product lines since going public in 2006 |
 •
Boom trucks and cranes
•
Sign cranes
•
Parts
•
Energy exploration
•
Power transmission
•
Industrial projects
•
Infrastructure development
•
Strong end market demand for specialized, competitively
differentiated products for oil, gas, and energy sectors
•
Product development
•
Rough terrain cranes
•
Specialized construction
equipment
•
Parts
•
Railroad
•
Construction
•
Refineries
•
Municipality
•
Equipment replacement cycle in small tonnage flexible cranes for
refinery market
•
More efficient product offering across end markets
•
Rough terrain forklifts
•
Special mission-oriented
vehicles
•
Custom specialized carriers
•
Parts
•
Military
•
Utility
•
Ship building
•
Commercial
•
Steady, profitable growth from both commercial and military
application of products
•
Custom trailers
•
Hauling systems for heavy
equipment transport
•
Parts
•
Energy
•
Mining
•
Railroad
•
Commercial construction
•
U.S. energy exploration build-out
•
Oil and gas exploration
•
General infrastructure construction
•
Reach stackers
•
Container handling forklifts
•
Parts
•
Global container market
•
International container market and global trade
•
Re-establishing customer relationships and select product categories
•
Repair parts
•
Crane dealership
•
North American Equipment
Exchange
•
Distributor of Terex
products
•
Replacement parts
•
Used equipment
•
General construction environment
Operating Companies
4
Brand
Products
End Markets
Drivers |
 5
“Focused manufacturer
of engineered lifting
equipment”
Product Overview
5
•
RT forklifts
•
Special mission-oriented
vehicles
•
Carriers
•
Heavy
material handling
•
Transporters & steel mill
equipment
•
Engineered lifting
equipment
•
Manitex boom trucks
•
SkyCrane aerial platforms
•
Sign cranes
•
Manufacturer of container
handling equipment for the
global port and inter-modal
sectors.
•
Products: reach stackers,
laden and unladen container
forklifts & straddle carriers
handling equipment for
the global port and inter-
modal sectors.
laden and unladen
container forklifts &
straddle carriers
•
Specialized earthmoving,
railroad and material
handling equipment since
1945
•
Has built ~ 10,000 units
since 1945
since 1945 |
 Growth in End
Markets
Flexible
Operating
Model
Growth in
Backlog,
Revenues,
Earnings &
Cash Flow
Broad Industry
& Geographic
Distribution
Experienced
Management
Investment Highlights
“Focused manufacturer
of engineered lifting
equipment”
6
•
Nine consecutive quarters of backlog growth; pre-announced 6/30/12 backlog of
$150M, a 79% YTD increase on July 9, 2012
•
Full Year 2011 Sales increased 48% to $142M with record EBITDA of $11.1M and
adjusted earnings per share of $0.31
•
First Quarter 2012 EBITDA of $3.4M represented a 65% Y-o-Y increase and a
quarterly record for Manitex • Focus on growing bottom line faster than
top line; output increases throughout 2012-2013 in North America
•
Diversity of end markets offers a cushion in the event of weak demand within
any one or two segments •
North American currently represents ~75% of revenue, mitigating
concerns regarding the European economic climate • Existing global presence (~20K units
worldwide) •
International dealer network provides footprint for on-going international
growth •
Niche markets with solid demand drivers for products
•
Increased penetration in the oil and gas, as well as power grid and rail
industries •
Demand in end markets – such as energy, railroad, and utilities – is
expected to be consistently strong • Seasoned senior management with over 70
years of collective industry experience • Successfully integrated multiple
acquisitions •
Significant management ownership
•
Customer focused design strategy
•
Diversified product offering
•
Quickly adapt to changes in demand
•
Commitment to innovation, research, and product development
•
Expected impact from new product launches in 2013
|
 “Focused manufacturer
of engineered lifting
equipment”
•
Strong brand history
•
Acknowledged product development record
•
International dealers enable us to follow demand
•
Focused on specialized equipment and niche end-
markets
Core
Products
Superior ROI
•
Niche Markets
•
Broad end-user base
•
Highly customized/specialized; will configure-to-
order
•
Parts and service an important part of business
model
•
Lower capital commitment for a boom truck vs.
competitors’
custom cranes of similar lifting
capacity
•
Usually less or no special permitting vs.
competitors’
custom cranes of similar lifting
capacity
7
Competitive Positioning
competencies |
 “Focused manufacturer
of engineered lifting
equipment”
Market
Overview
•
Smaller tonnage cranes (<30 tons) are more focused on general construction
markets while larger cranes (30+ tons) focus on power line construction
and energy •
Larger tonnage cranes have had higher demand since economic downturn
•
Boom truck cranes are typically less expensive than rough terrain and all
terrain cranes Manitex’s
Market
Position
•
Broader market has seen ~65% of cranes shipped in the smaller tonnage range,
while ~75% of Manitex shipments have been in the larger tonnage
•
Focus
on
being
a
niche
player
allows
specialization
tailored
towards
customers’
needs
•
Production distribution skewed toward larger tonnage machines
•
First to launch 50-ton crane (May 2007)
•
Have
developed
a
series
of
products
around
the
demand
for
larger
tonnage
cranes
Source: Manitex International and MOTACC
8
Boom Truck Crane Tonnage
Distribution -
Market
Boom Truck Crane Tonnage
Distribution -
Manitex
24%
24%
12%
29%
11%
50%
25%
18%
7%
<17
17>22.9
23>29.9
30>35.9
36>
17>22.9
23>29.9
30>35.9
36>
Lifting Equipment Market Overview
•
Principal
products
are
boom
truck
cranes
that
vary
in
height
and
tonnage capacity |
 9
Replacement Parts & Service
Consistent Recurring Revenue
“Focused
manufacturer of
engineered lifting
equipment”
•
Recurring revenue of approximately 20% of total sales
•
Spares relate to swing drives, rotating components, and booms among others, many
of which are proprietary
–
Serve additional brands
–
Service team for crane equipment
–
Automated proprietary system implemented in principal operations
|
 Potential for Future Growth in
Revenue and EBITDA
“Focused manufacturer
of engineered lifting
equipment”
•
$235M represents
2007 pro-forma
revenues of all
product lines acquired
to date
•
Revenues, EBITDA,
earnings have shown
consistent growth
•
Revenue and backlog
trajectory suggests
recovery may
continue into 2012-
2013
•
Long-term
EBITDA target is
9%-10%
•
2009-2011 CAGR
was 59.6%
Opportunity
Rev:
$55.9M
EBITDA
$2M/3.5%
Backlog:
$22M
2007 Pro-forma
Normal non-peak
year
2009
2010
2011
Rev:
$95.9M
EBITDA
$8.7M/
9.0%
Backlog:
$40M
Rev:
$142.3M
EBITDA
$11.1M/
7.8%
Backlog:
$84M
2013E
$275M
$235M
$220M
48.9% CAGR
43.2% CAGR
40.8% CAGR
$235M
$M
10
4-Year CAGR (using 2009 as base year) |
 Experienced Management
Team
“Focused manufacturer
of engineered lifting
equipment”
David Langevin
Chairman & CEO
20+ years principally with Terex
Andrew Rooke
President & COO
20+ years principally with Rolls Royce, GKN Sinter Metals,
Off-Highway & Auto Divisions
David Gransee
CFO & Treasurer
Formerly with Arthur Andersen, 15+ years with Eon Labs
(formerly listed)
Robert Litchev
President
–
Manufacturing Operations
10+ years principally with Terex
Scott Rolston
SVP Strategic Planning
13+ years principally with Manitowoc
11
Name & Title
Experience |
 Financial Overview
“Focused manufacturer
of engineered lifting
equipment”
Manitex International, Inc.
July 2012
|
 Financial Summary
Total Enterprise Val. (7/9/2012):
$149.9 million
Market Cap (7/9/2012):
$105.8 million
2011 Revenue:
$142.3 million
$3.6 million
2011 EBITDA:
$11.1 million
Stock Price (7/9/2012):
$8.96
Ticker / Exchange:
MNTX / NasdaqCM
Summary Financials
“Focused
manufacturer of
engineered lifting
equipment”
Diluted shares outstanding (3/31/2012):
11.7 million
Total Debt (3/31/2012):
$45.3 million
$000, except percentages
2007
2008
2009
2010
2011
Revenues
$106,946
$106,341
$55,887
$95,875
$142,291
Gross Margin (%)
18.6%
16.4%
20.0%
24.3%
20.6%
EBITDA
$8,461
$5,416
$1,982
$8,676
$11,120
EBITDA Margin (%)
7.9%
5.1%
3.5%
9.0%
7.8%
Adjusted Net income
$2,126
$1,799
$3,639
(2)
$2,109
$3,561
(1)
Backlog
$45,100
$15,703
$22,122
$39,905
$83,700
Recent Announcements
7/9/12-
Announced 79% Backlog Increase to $149.6M (6/30/2012)
7/12/12-Announced $4.125M private placement (500k shares @ $8.25)
13
Capitalization
(1) 2011 excludes $1,200,000 (pre-tax) for present value of legal settlement
agreement as of 12/31/11 (2) 2009 GAAP Net Income includes gain on
bargain purchase of $3,815 2011
Adjusted
Net
Income
(1)
: |
 Key
Figures
-
Quarterly
“Focused manufacturer
of engineered lifting
equipment”
USD thousands except as noted
Q1-2012
Q1-2011
Q4-2011
Net sales
$42,849
$31,722
$36,561
Gross profit
8,576
6,459
7,489
Gross margin %
20.0%
20.4%
20.5%
Operating expenses
6,056
5,207
5,431
(1)
Net Income
1,251
442
1,070
(1)
EBITDA
3,390
2,055
2,876
EBITDA % of Sales
7.9%
6.5%
7.9%
Backlog ($ million)
133.3
47.7
83.7
(1)
Excludes
$1.2
million
(pre-tax)
for
present
value
of
legal
settlement
agreement
as
of
12/31/11
14
$45,000
$40,000
$35,000
$30,000
$15,000
$25,000
$20,000
$10,000
$5,000
$0
$10,000
$9,000
$8,000
$7,000
$4,000
$6,000
$5,000
$3,000
$2,000
$0
$1,000
Revenue
EBITDA
Net Income
Q1-2012
Q1-2011
Q4-2010
$42,849
$3,390
$1,251
$31,722
$36,561
$2,055
$442
$2,876
$1,070 |
 Summary Balance Sheet
“Focused manufacturer
of engineered lifting
equipment”
15
$000s
31-Mar-12
31-Dec-11
31-Dec-10
31-Dec-09
31-Dec-08
Current assets
$84,805
$71,209
$54,703
$40,147
$40,685
Fixed assets
10,850
11,017
10,659
11,804
5,878
Other long-term assets
38,155
39,365
40,155
42,734
39,665
Total Assets
Current liabilities
$40,279
$30,177
$23,011
$14,569
$17,062
Long-term liabilities
45,028
44,620
39,232
39,688
34,152
Total Liabilities
85,307
74,797
62,243
54,257
51,214
Shareholders equity
48,503
46,794
43,274
40,428
35,014
Total liabilities & Shareholders equity
$133,810
$121,591
$105,517
$94,685
$86,228
$133,810
$121,591
$105,517
$94,685
$86,228 |
 $000s
Q1-2012
Q1-2011
Q4-2011
Working Capital
$44,526
$33,829
$41,032
Days sales outstanding (DSO)
64
53
60
Days payable outstanding (DPO)
67
63
59
Inventory turns
2.9
2.8
2.7
Current ratio
2.1
2.3
2.4
Operating working capital
$56,184
$38,174
$50,007
Operating working capital % of trailing three
month annualized net sales
32.8%
30.1%
34.2%
•
Major
movements
in
working
capital
increase
Q1-2012
v
Q4-2011
of
o
Increased receivables ($6.9M) and inventory ($5.7M), partially offset by
increased accounts payable ($6.3M), short term revolving credit facility
($1.6M) and accrued expenses ($1.2M) •
Inventory: increase in raw materials ($3.3M), WIP ($1.6M) and finished goods
($0.7M) to support growth
•
Operating working capital decreased in Q1-2011 compared to Q4-2011, as
revenue growth was achieved in the quarter as planned
16
“Focused manufacturer
of engineered lifting
equipment”
Working Capital
$3.5m |
 “Focused manufacturer
of engineered lifting
equipment”
$000s
Q1-2012
Q1-2011
Q4-2011
Total Cash
$523
$1,441
$71
Total Debt
45,294
35,293
42,227
Total Equity
48,503
44,017
46,794
Net
capitalization
(1)
93,274
77,869
88,950
Net
debt
(2)
/
capitalization
48.0%
43.5%
47.4%
Quarterly EBITDA
3,390
2,055
2,876
Quarterly EBITDA % of sales
7.9%
6.5%
7.9%
•
Increase in debt at 3/31/2012 from 12/31/2011 of $3.1M
o
Increase in lines of credit, short-term finance and Italian working capital
finance of $4.2M o
Repayments of $1.1M on other long-term debt
•
North American revolver facilities, based on available collateral at 3/31/12,
was $33.5M •
North American revolver availability at 3/31/12 of $5.8M
Debt & Liquidity
(1) Net capitalization is the sum of debt plus equity minus cash
(2) Net debt is total debt less cash
17
Balance Sheet data as of end of quarter |
 Company Timeline
“Focused manufacturer
of engineered lifting
equipment”
March 2002:
Manitowoc (NYSE:MTW)
acquires Grove
January 2003:
Manitowoc divests
Manitex
December 2009: Acquire
Load King Trailers
July 2009: Acquire Badger
Equipment Co.
November 2006:
Veri-Tek
Acquires LiftKing
July 2007: VCC
acquires Noble
forklift
August 2007: Sale of assets and
closure of legacy VCC business
May 2008: Name changed to Manitex International and
listed on Nasdaq (MNTX)
October 2008:
Crane &
Machinery and
Schaeff Forklift
acquired
July 2006: Manitex
merges into Veri-Tek,
Intl. (VCC)
July 2010 : CVS
Operating Agreement
July 2011: Closes
Acquisition of CVS
18
2010
2008
2009
2007
2006
2004
2002
2005
2003
2011 |