Manitex Posts Record Earnings, Shares Up - Analyst Blog

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Shares of Manitex International, Inc. MNTX rose over 6% after the company reported fourth-quarter 2013 earnings results on Mar 6. Earnings improved 37.5% to 22 cents per share from 16 cents in the year-earlier quarter. Moreover, the reported figure beat the Zacks Consensus Estimate of 18 cents.

The stock price rose to a new 52-week high of $17.04 and closed at $17.02 on Mar 10, exceeding the previous high of $16.39. Manitex has beaten the Zacks Consensus Estimate three times in the trailing four quarters with an average surprise of 12.69%.

Operational Update

Net revenue rose 16% year over year to $65.4 million, of which 60% was from acquisitions. However, revenues missed the Zacks Consensus Estimate of $67 million. The year-over-year growth was attributable to sales increases of 77% in container handling and 16% in crane products. However, these positives were partially offset by lower revenues from material handling equipment and equipment distribution.

Gross profit improved 23.8% to $12.8 million from $10.3 million in the prior-year quarter. Consequently, gross margin expanded 120 basis points (bps) to 19.5% due to improved mix in sales and better production efficiencies.

Selling, general and administrative expenses increased 6.5% year over year to $6.9 million. Operating income was $5 million, compared with $3.3 million in the prior-year quarter. Operating margin expanded 190 bps year over year to 7.7%.

Financial Update

Manitex ended 2013 with cash and cash equivalents of $6.1 million, up from $1.9 million as of 2012-end. As of Dec 31, 2013, long-term debt increased to $54 million from $49 million as of Dec 31, 2012. Debt-to-capitalization ratio was 38.9% as of Dec 31, 2013, compared with 45% as of Dec 31, 2012.

Cash from operations for 2013 was $2.1 million versus cash usage of $6.5 million in the prior year. Total backlog declined 40.7% to $77.3 million as of Dec 31, 2013 from $130.4 million as of Dec 31, 2012.

Fiscal 2013 Performance

For full-year 2013, Manitex reported record earnings per share of 80 cents, up 18% from 68 cents in 2012. The results were ahead of the Zacks Consensus Estimate of 76 cents.

Revenues for the year 2013 increased 19% year over year to $245 million. The rise resulted from increased production, thanks to the high level of crane order backlog and impact of the Sabre and Valla acquisitions. However, revenues missed the Zacks Consensus Estimate of $246 million.

Outlook

Manitex did not provide any guidance for 2014. The company remains optimistic and hopes to report new record sales and profits in 2014. Furthermore, it expects to continue benefiting from expansion in backlog, new product development and acquisitions.

Manitex completed its previously announced acquisition of Valla, SpA in Nov 2013 for a potential consideration of up to $1.2 million. This acquisition will bring diversity to Manitex's crane portfolio and increase its product offering globally. The Sabre acquisition will also be a strategic fit for the company as it will enable further diversification of product line and end markets and lead to an above-average upside.

Additionally, Manitex remains committed to increase its innovative product offering, as evident from the introduction of Manitex TC 70 crane, which will likely drive sales. However, softness in the energy sector is persistent and caused a reduction in the company's North American rig count. The present uncertainty in Europe is also a concern.

Bridgeview, Ill.-based Manitex International is 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 trailers.

Manitex currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same industry include Kadant Inc. KAI, Sun Hydraulics Corp. SNHY and Altra Industrial Motion Corp. AIMC. While Kadant and Sun Hydraulics sport a Zacks Rank #1 (Strong Buy), Altra Industrial Motion has a Zacks Rank #2 (Buy).



ALTRA HOLDINGS AIMC: Free Stock Analysis Report

KADANT INC KAI: Free Stock Analysis Report

MANITEX INT INC MNTX: Free Stock Analysis Report

SUN HYDRAULICS SNHY: Free Stock Analysis Report

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