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Exhibit 99.1

 

LOGO

Manitex International, Inc. Reports Third Quarter 2020 Results

Bridgeview, IL, November 5, 2020 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized industrial equipment, today announced third quarter 2020 results. Net revenues from continuing operations for the third quarter were $36.5 million, compared to $50.6 million in the prior year’s period, and net loss from continuing operations was $(1.4) million, or $(0.07) per share, compared to net loss of $4.5 million or $(0.23) per share, in the third quarter of 2019. Adjusted net loss* from continuing operations in the third quarter of 2020 was $(1.0) million, or $(0.05) per share, compared to adjusted net income of $0.8 million, or $0.04 per share, for the third quarter of 2019.

Financial Highlights:

 

   

Net revenues were $36.5 million, a decline of 1.7% compared to the prior quarter of 2020

 

   

Gross margin improved 340 Basis Points to 18.3%, compared to the prior quarter of 2020

 

   

SG&A declined $0.3 million compared to Q2 and $1.3 million compared to third quarter 2019

 

   

Net Loss was $1.4 million, or $(0.07) per share or $1.0 million, or $(0.05) as adjusted* compared to a loss of $2.4 million, or $(0.12) or $(0.08) as adjusted in the prior quarter of 2020

 

   

Adjusted EBITDA* had a positive swing of $1.3 million to $0.9 million for the quarter, as compared to Q2 of this year

 

   

Realized quarterly cost savings of $1.1 million due to restructuring and other cost savings measures implemented in 2020

 

   

Reduced net debt by $6.5 million from year end to $34.7 million as of September 30, 2020 through the payoff of PM term and unsecured debt

 

   

Available liquidity through cash and credit lines of approximately $41 million as of September 30, 2020

Note: Results presented above are from Continuing Operations

 

*

Adjusted Numbers are discussed in greater detail and reconciled under “Non-GAAP Financial Measures and Other Items” at the end of this release.

Operating Highlights:

 

   

Backlog was $56.6 million as of October 31, 2020, an improvement of 28% since June 30, 2020

 

   

PM backlog at $29.1 million, as of October 31, 2020, represents over 50% of total backlog

 

   

The Company secured a purchase order from an international military entity for approximately $2.5 million with an optional $2.3 million in additional deliveries

 

   

The Company was awarded a contract by Collè Rental & Sales, of Sittard, Netherlands, for Valla electric cranes, valued at approximately $2.5 million

 

   

Completed the sale of Manitex-Sabre for cash proceeds of $1.6 million

 

   

Subsequent to the quarter-end, announced the appointment of Joe Doolan, CFO

Steve Filipov, CEO of Manitex International commented,” Our third quarter results were in line with our expectations, with a significant improvement in profitability from the second quarter of 2020. We reported a $1.3 million improvement in adjusted EBITDA of $900,000, or 2.6% of sales versus a loss of approximately $300,000 in the second quarter. The COVID-19 pandemic continues to create uncertainty in our markets, but we continue do the utmost to protect the safety and health of our teams and their families by strengthening our safety protocols to adapt to this changing environment.”

“While we were impacted by the seasonal 2-week summer shut down in our European operations and sporadic furloughs at our Georgetown facility, we continued to take steps to protect our employees, shareholders, and adapt to a challenging environment. Our backlog has started to grow again and is up nearly 30% since the end of June, the strategic initiatives we have implemented at the PM Group both on the revenue side are driving improved performance for in both our knuckle boom products and our truck-mounted aerials year-over-year.”


“We have also seen a positive trend in demand for our zero-emission Valla crane products and signed a significant order with a rental customer in Europe. We are continuing to invest in new products and technologies in this business as we see the demand coming from our customers to move to more environmentally friendly products.”

“We executed a restructuring plan at our Georgetown and Winona facilities in July, and while the market for boom trucks in trending down approximately 25%, we were able to secure an extended military order for knuckle booms, and we have seen some promising order pick up in the past few weeks on boom trucks. We also launched a new 65-ton boom truck with the longest boom in its category, as well as a new 45-ton boom truck for specialty utility markets in the US. We anticipate initial orders for these cranes from our distributors for 2021 deliveries.”

“Finally, we continue to focus on improving our balance sheet and have generated $3 million of cash since the beginning of 2020, to ensure we have the liquidity to weather the current economic environment. With our $41M in liquidity, we are confident we have the ability to pay down our upcoming debt requirements, with opportunity to deliver more cash as we close out 2020 and continue to focus on reducing our finished goods inventory.”    

Outlook:

“The reality of COVID-19 and other macro economic uncertainties, makes it difficult to give more substantial guidance, but we remain optimistic about fourth quarter performance. Given the uptick in orders and backlog, we expect our revenues to trend higher to a range of $40 million - $43 million, with the bottom line improving from our continued focus on margin recovery,” concluded Mr. Filipov.

Conference Call:

Management will host a conference call at 8:30 AM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 800-952-1438 if calling within the United States or 312-429-0433 if calling internationally. A replay will be available until November 12, 2020, which can be accessed by dialing 844-512-2921 if calling within the United States, or 412-317-6671 if calling internationally. Please use passcode 21971355 to access the replay. The call will additionally be broadcast live and archived for 90 days over the internet with accompanying slides, accessible at the investor relations portion of the Company’s corporate website, www.manitexinternational.com/eventspresentations.aspx.

Non-GAAP Financial Measures and Other Items

Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis. In this press release, Manitex refers 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. The amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of, or for the three and nine month periods ended September 30, 2020 and 2019, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three and nine month periods ended September 30, 2020 and 2019 is included with this press release below and with the Company’s related Form 8-K.

About Manitex International, Inc.

Manitex International, Inc. is a leading worldwide provider of highly engineered mobile cranes (truck mounted straight-mast and knuckle boom cranes, industrial cranes, rough terrain cranes and railroad cranes), truck mounted aerial work platforms and specialized industrial equipment. Our products, which are manufactured in facilities located in the USA and Europe, are targeted to selected niche markets where their unique designs and engineering excellence fill the needs of our customers and provide a competitive advantage. We have consistently added to our portfolio of branded products and equipment both through internal development and focused acquisitions to diversify and expand our sales and profit base while remaining committed to our niche market strategy. Our brands include Manitex, PM, MAC, PM-Tadano, Oil & Steel, Badger, and Valla.


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.

 

Company Contact  

Manitex International, Inc.

 

Darrow Associates Inc.

Steve Filipov

 

Peter Seltzberg, Managing Director

Chief Executive Officer

 

Investor Relations

(708) 237-2054

 

(516) 419-9915

sfilipov@manitex.com

 

pseltzberg@darrowir.com


MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 

     September 30,     December 31,  
     2020     2019  
ASSETS     

Current assets

    

Cash

   $ 23,331     $ 23,327  

Cash - restricted

     231       217  

Trade receivables (net)

     29,916       34,725  

Other receivables

     997       1,033  

Inventory (net)

     58,641       57,818  

Prepaid expense and other current assets

     4,392       4,706  

Current assets of discontinued operations

     180       1,591  
  

 

 

   

 

 

 

Total current assets

     117,688       123,417  
  

 

 

   

 

 

 

Total fixed assets, net of accumulated depreciation of $18,551 and $16,818 at September 30, 2020 and December 31, 2019, respectively

     18,531       19,035  

Operating lease assets

     2,160       2,174  

Intangible assets (net)

     15,752       17,032  

Goodwill

     26,699       32,635  

Other long-term assets

     168       281  

Deferred tax asset

     415       441  

Long-term assets of discontinued operations

     —         413  
  

 

 

   

 

 

 

Total assets

   $ 181,413     $ 195,428  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities

    

Notes payable

   $ 17,832     $ 18,212  

Convertible note-related party (net)

     7,455       7,323  

Convertible note (net)

     7,976       —    

Current portion of finance lease obligations

     352       476  

Current portion of operating lease liabilities

     761       813  

Accounts payable

     29,337       29,593  

Accounts payable related parties

     33       228  

Accrued expenses

     9,265       9,138  

Customer deposits

     1,669       1,493  

Deferred income liability

     3,747       —    

Current liabilities of discontinued operations

     215       800  
  

 

 

   

 

 

 

Total current liabilities

     78,642       68,076  
  

 

 

   

 

 

 

Long-term liabilities

    

Revolving term credit facilities

     5,000       —    

Notes payable (net)

     15,368       19,446  

Finance lease obligations (net of current portion)

     4,311       4,584  

Non-current operating lease liabilities

     1,398       1,361  

Convertible note (net)

     —         14,760  

Deferred gain on sale of property

     607       667  

Deferred tax liability

     959       721  

Other long-term liabilities

     5,795       5,913  

Long-term liabilities of discontinued operations

     —         350  
  

 

 

   

 

 

 

Total long-term liabilities

     33,438       47,802  
  

 

 

   

 

 

 

Total liabilities

     112,080       115,878  
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity

    

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at September 30, 2020 and December 31, 2019

     —         —    

Common Stock—no par value 25,000,000 shares authorized, 19,794,316 and 19,713,185 shares issued and outstanding at September 30, 2020, and December 31, 2019, respectively

     131,276       130,710  

Paid in capital

     2,870       2,793  

Retained deficit

     (61,977     (50,253

Accumulated other comprehensive loss

     (2,836     (3,700
  

 

 

   

 

 

 

Total equity

     69,333       79,550  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 181,413     $ 195,428  
  

 

 

   

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2020     2019     2020     2019  

Net revenues

   $ 36,466     $ 50,599     $ 122,314     $ 162,403  

Cost of sales

     29,807       42,164       99,877       131,478  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     6,659       8,435       22,437       30,925  

Operating expenses

        

Research and development costs

     788       497       2,246       1,890  

Selling, general and administrative expenses

     6,462       7,808       21,226       26,485  

Impairment of intangibles

     —         1,539       6,722       1,539  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     7,250       9,844       30,194       29,914  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (591     (1,409     (7,757     1,011  

Other (expense) income

        

Interest expense

     (825     (1,121     (2,833     (3,298

Interest income

     6       41       80       161  

Gain on extinguishment of debt

     595       —         595       —    

Change in fair value of securities held

     —         216       —         5,454  

Foreign currency transaction loss

     (229     (307     (671     (718

Other expense

     (341     (11     (497     (22
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income

     (794     (1,182     (3,326     1,577  
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes from continuing operations

     (1,385     (2,591     (11,083     2,588  

Income tax expense (benefit) from continuing operations

     62       1,874       (191     2,449  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income from continuing operations

     (1,447     (4,465     (10,892     139  
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations

        

Loss from operations of discontinued operations

     (120     (7,302     (831     (7,805

Income tax expense

     4       84       1       39  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations

     (124     (7,386     (832     (7,844
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (1,571     (11,851     (11,724     (7,705
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) earnings Per Share

        

Basic

        

(Loss) earnings from continuing operations

   $ (0.07   $ (0.23   $ (0.55   $ 0.01  

Loss from discontinued operations

   $ (0.01   $ (0.38   $ (0.04   $ (0.40

Net loss

   $ (0.08   $ (0.60   $ (0.59   $ (0.39

Diluted

        

(Loss) earnings from continuing operations

   $ (0.07   $ (0.23   $ (0.55   $ 0.01  

Loss from discontinued operations

   $ (0.01   $ (0.38   $ (0.04   $ (0.40

Net loss

   $ (0.08     (0.60   $ (0.59   $ (0.39

Weighted average common shares outstanding

        

Basic

     19,778,225       19,690,233       19,758,241       19,684,521  

Diluted

     19,778,225       19,690,233       19,758,241       19,715,072  


Note: Results shown are from Continuing Operations

Net Sales and Gross Margin % (in thousands)    

 

     Three Months Ended  
     September 30, 2020     June 30, 2020     September 30, 2019  
     As Reported     As Adjusted     As Reported     As Adjusted     As Reported     As Adjusted  

Net sales

   $ 36,466     $ 36,466     $ 37,115     $ 37,115     $ 50,599     $ 50,599  

% change Vs Q2 2020

     -1.7     -1.7        

% change Vs Q3 2019

     -27.9     -27.9        

% change Vs Q3 2019 without FX impact

       -29.9        

Gross margin % of net sales

     18.3     18.4     14.9     15.6     16.7     18.3

Gross margin % of net sales (value-add)

       19.8       16.3       20.1

 

     Nine Months Ended  
     September 30, 2020     September 30, 2019  
     As Reported     As Adjusted     As Reported     As Adjusted  

Net sales

   $ 122,314     $ 122,314     $ 162,403     $ 162,403  

% change Vs prior year

     -24.7     -24.7    

% change Vs prior year without FX impact

       -24.7    

Gross margin % of net sales

     18.3     18.6     19.0     20.2

Gross margin % of net sales (value-add)

       19.8       21.7

Reconciliation of GAAP Operating Income (Loss) to Adjusted EBITDA (in thousands)    

 

     Three Months Ended     Nine Months Ended  
     September 30, 2020     June 30, 2020     September 30, 2019     September 30, 2020     September 30, 2019  

Operating (loss) income

   ($ 591   ($ 1,965   ($ 1,409   ($ 7,757   $ 1,011  

Adjustments related to trade show, customer declared bankruptcy, discontinued model, goodwill and intangible asset impairment, plant closing, restatement, restricted stock, restructuring and other expenses

     483       574       2,839       8,725       6,014  

Adjusted operating (loss) income

     (108     (1,391     1,430       968       7,025  

Depreciation and amortization

     1,052       1,055       1,073       3,145       3,237  

Adjusted EBITDA

     944     ($ 336   $ 2,503     $ 4,113     $ 10,262  

Adjusted EBITDA % to sales

     2.6     -0.9     4.9     3.4     6.3

Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss) (in thousands)

 

     Three Months Ended     Nine Months Ended  
     September 30, 2020     June 30, 2020     September 30, 2019     September 30, 2020     September 30, 2019  

Net (loss) income

   ($ 1,447   ($ 2,401   ($ 4,465   ($ 10,892   $ 139  

Adjustments related to change in fair value of securities, trade show, discontinued model, customer declared bankruptcy, foreign exchange, goodwill and intangible asset impairment, plant closing, restatement, restricted stock, restructuring, and other expenses (including net tax impact)

     437       736       5,248       9,820       3,378  

Adjusted net (loss) income

   ($ 1,010   ($ 1,665   $ 783     ($ 1,072   $ 3,517  

Weighted diluted shares outstanding

     19,778,225       19,762,726       19,690,233       19,758,241       19,715,072  

Diluted (loss) earnings per shares as reported

   ($ 0.07   ($ 0.12   ($ 0.23   $   (0.55)    $ 0.01  

Total EPS effect

   $ 0.02     $ 0.04     $ 0.27     $ 0.50     $ 0.17  

Adjusted diluted (loss) earnings per share

   ($ 0.05   ($ 0.08   $ 0.04     ($ 0.05   $ 0.18  


Change in Fair Market Value of Securities, Discontinued Model, Foreign Exchange, Goodwill and Intangible Asset Impairment, Restatement, Restricted Stock, Restructuring, Plant Closing, Trade Show and other Expenses

 

     Three Months Ended     Nine Months Ended  

Adjustments

   September 30, 2020     June 30, 2020     September 30, 2019     September 30, 2020     September 30, 2019  

Restricted stock

   $ 233     $ 203     $ 148     $ 658       448  

Other expenses

     95       43       366       246       1,008  

Legal settlement

     85       —         —         85       67  

Restructuring

     42       35       99       78       1,204  

Covid-19 related expense

     28       111       —         139     $ 0  

Customer declared bankruptcy - bad debt

     —         —         140       —         424  

Discontinued model

     —         124       446       193       751  

Goodwill and intangible asset impairment

     —         —         1,539       6,722       1,539  

Plant closing

     —         —         —         —         44  

Restatement expenses

     —         —         22       —         169  

Trade show

     —         58       79       604       360  

Total adjustments to operating income (loss)

   $ 483     $ 574     $ 2,839     $ 8,725     $ 6,014  

Change in fair market value of securities

     —         —         (216     —         (5,454

Foreign exchange

     229       24       307       671       718  

Other (income) expenses

     (245     162       —         (83     —    

Total pre-tax adjustments

   $ 467     $ 760     $ 2,930     $ 9,313     $ 1,278  

Net tax impact (including discrete items)

     (30     (24     2,318       507       2,100  

Total adjustments

   $ 437     $ 736     $ 5,248     $ 9,820       3,378  

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.

 

     Sep 30, 2020      Jun 30, 2020     Mar 31, 2020     Dec 31, 2019     Sep 30, 2019  

Backlog from continuing operations

   $ 50,541      $ 44,272     $ 57,045     $ 65,263     $ 56,207  

Change Versus Current Period

        14.2     -11.4     -22.6     -10.1

Note: Backlog was $56,644 as of October 31, 2020


Net Debt

Net 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, convertible notes and revolving credit facilities minus cash.

 

     September 30, 2020      December 31, 2019  

Total cash & cash equivalents

   $ 23,562      $ 23,544  

Notes payable - short term

   $ 17,832      $ 18,212  

Current portion of finance leases

     352        476  

Convertible notes

     15,431        22,083  

Notes payable - long term

     15,368        19,446  

Finance lease obligations

     4,311        4,584  

Revolver

     5,000        —    

Total debt

   $ 58,294      $ 64,801  

Net debt

   $ 34,732      $ 41,257