BRIDGEVIEW, IL / ACCESSWIRE / March 14, 2019 / Manitex International, Inc. MNTX, a leading international provider of truck and knuckle boom cranes, today announced fourth quarter and full year 2018 results. Net revenues for the fourth quarter were $60.6 million, compared to $64.5 million in the prior year's period, and net loss from continuing operations attributable to shareholders of Manitex was $(10.8) million, or $(0.55) per share, compared to a net loss from continuing operations attributable to shareholders of Manitex of $(0.6) million, or $(0.04) per share, in the fourth quarter of 2017. Adjusted net income* from continuing operations in the fourth quarter 2018 was $1.2 million, or $0.06 per share, compared to adjusted net income of $0.9 million, or $0.05 per share, for the fourth quarter of 2017.
For the full year 2018, Manitex reported net revenues of $242.1 million and net loss from continuing operations of $(13.2) million, or $(0.72) per share, compared with net revenues of $213.1 million and net loss from continuing operations of $(7.1) million, or $(0.43) per share for the full year 2017. Income from continuing operations, as adjusted*, for the full year 2018 was $6.0 million, or $0.33 per share, compared with $3.3 million, or $0.20 per share for the full year 2017.
Highlights (versus prior year, unless otherwise noted):
- Q4 Net revenues down 6%, FY 2018 net revenues up 14%
- Q4 EPS $(0.55), as adjusted EPS $0.06 - up 20%
- Q4 EBITDA $(5.2) million, as adjusted $3.5 million - up 13%
- Full year EPS $(0.72), as adjusted EPS $0.33 - up 65%
- Full year EBITDA $4.8 million, as adjusted $17.4 million - up 26%
- Net debt of $48.5 million represents reduction of $42.0 million since year-end 2017
Subsequent to Year-end:
- Backlog was $80 million as of February 28, 2019, compared with $61 million as of year-end 2017, representing a 30% increase
- Initial stocking order received from Tadano
* Adjusted Numbers are discussed in greater detail and reconciled under ''Non-GAAP Financial Measures and Other Items'' at the end of this release.
Chief Executive and Chairman David J. Langevin commented, ''2018 was a significant year for Manitex for many reasons but especially due to the investment made in our Company by Tadano. It was also a difficult year because demand was not consistent throughout the year and we faced constant headwinds from component cost increases. However, our teams executed well resulting in sales increasing for the year by 14%, full year adjusted EBITDA increasing by 26% and year over year adjusted EPS up by 65%. Most importantly, our net debt was almost cut in half from $90 million at the end of 2017 to $48 million ending 2018.''
''Sales were down slightly in the fourth quarter resulting from a modest reduction of PM sales in Europe and South America. And, for the fourth quarter and full year 2018 we had onetime non-recurring charges primarily relating to impairment of goodwill and trademarks, mark to market adjustments on securities, change in accounting estimates and restructuring expenses all of which are detailed in the schedules to our release.''
''We have seen a strong start to our 2019 order book, backlog at the end of February was up 30% from the year end 2017. This increase included a strong expansion of orders from Europe especially in the month February.''
''Further, in January we signed the framework for a commercial agreement with Tadano covering the Asian markets and in February we received from Tadano an initial small stocking order for the Asian markets.''
''Finally, we exit 2018 as strong financially as Manitex has ever been. We believe our markets remain solid, our growth potential we believe is significant, and we look forward to executing on our plans in achieving further growth in 2019.''
Steve Kiefer, President and Chief Operating Officer of Manitex added, ''On the heels of a good year of growth in 2018, we enter 2019 facing a healthy level of demand from our key global markets and well-positioned for additional financial improvements, with our Manitex-branded line of cranes now having over 40% market share. While we did see some moderating in the fourth quarter, industry shipments for straight mast cranes in 2018 were up 24% versus 2017, and on a forward basis industry orders in 2018 were 24% higher than 2018 industry shipments. The January 2019 industry order rate was an annualized 1,500 units, which would represent nearly 30% growth over 2018 shipment levels. Our backlog is strengthening and we have expanded our staff and production at our Georgetown, TX facility in recent months, anticipating continued expansion.''
Regarding global growth activity of the PM knuckle boom business, Kiefer commented, ''Increased penetration of the expanding multi-billion global knuckle boom market is our largest opportunity as we enter 2019 and a key element of our growth plans. With the expansion of the North American dealer network continuing, we are launching a Manitex-branded line of knuckle boom cranes to leverage the strong Manitex brand in North America. Additionally, we are completing a dedicated knuckle boom design, assembly and mounting facility in Georgetown, TX in the first quarter to properly manage increased order and shipment momentum.''
''The PM Group in Europe is focused on strong order growth, margin expansion and new product development. Key initiatives for 2019 include ongoing expansion and improvement of our PM Group product portfolio with a number of important new product introductions for the distribution, construction, utility and military markets planned for the Bauma Expo in April 2019,'' Mr. Kiefer concluded.
Other Matters:
The Company continues to comply with the SEC investigation regarding the Company's restatement of prior financial statements.
Conference Call:
Management will host a conference call at 4:30 PM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 888-394-8218 if calling within the United States or 323-794-2588 if calling internationally. A replay will be available until March 21, 2019, 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 6222474 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 twelve month periods ended December 31, 2018 and 2017, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three and twelve month periods ended December 31, 2018 and 2017 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, Oil & Steel, Badger, Sabre, and Valla. The company also has a minority ownership in ASV Holdings, Inc. which manufactures and sells a line of high-quality compact track and skid steer loaders
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.
Steve Kiefer
President and Chief Operating Officer
(708) 237-2065
skiefer@manitex.com
Darrow Associates Inc.
Peter Seltzberg, Managing Director
Investor Relations
(516) 419-9915
pseltzberg@darrowir.com
MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per sharedata)
| As of December 31, | ||||||||
| 2018 | 2017 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 22,103 | $ | 5,014 | ||||
Cash- restricted | 245 | 352 | ||||||
Marketable equity securities | 2,160 | - | ||||||
Trade receivables (net) | 45,448 | 46,633 | ||||||
Other receivables | 2,374 | 1,946 | ||||||
Inventory (net) | 58,024 | 54,360 | ||||||
Prepaid expense and other | 1,639 | 2,017 | ||||||
Total current assets | 131,993 | 110,322 | ||||||
Total fixed assets, net of accumulated depreciation of $14,826 and $12,921 at December 31, 2018 and 2017, respectively | 20,249 | 22,038 | ||||||
Intangible assets (net) | 24,773 | 31,014 | ||||||
Goodwill | 36,298 | 43,569 | ||||||
Equity investment in ASV Holdings, Inc. | - | 14,931 | ||||||
Other long-term assets | 1,570 | 1,475 | ||||||
Deferred tax asset | 2,366 | 1,839 | ||||||
Total assets | $ | 217,249 | $ | 225,188 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Notes payable | $ | 22,706 | $ | 29,131 | ||||
Current portion of capital lease obligations | 422 | 378 | ||||||
Accounts payable | 36,896 | 35,386 | ||||||
Accounts payable related parties | 1,371 | 1,331 | ||||||
Accrued expenses | 9,249 | 10,070 | ||||||
Customer deposits | 2,310 | 2,242 | ||||||
Other current liabilities | - | 890 | ||||||
Total current liabilities | 72,954 | 79,428 | ||||||
Long-term liabilities | ||||||||
Revolving term credit facilities | - | 12,893 | ||||||
Notes payable | 23,134 | 26,656 | ||||||
Capital lease obligation | 5,061 | 5,483 | ||||||
Convertible note related party (net) | 7,158 | 7,005 | ||||||
Convertible note (net) | 14,530 | 14,310 | ||||||
Deferred gain on sale of property | 842 | 969 | ||||||
Deferred tax liability | 92 | 3,384 | ||||||
Other long-term liabilities | 5,474 | 4,215 | ||||||
Total long-term liabilities | 56,291 | 74,915 | ||||||
Total liabilities | 129,245 | 154,343 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at December 31, 2018 and 2017 | - | - | ||||||
Common Stock-no par value 25,000,000 shares authorized, 19,645,773 and 16,617,932 shares issued and outstanding at December 31, 2018 and 2017, respectively | 130,260 | 97,661 | ||||||
Paidin capital | 2,674 | 2,802 | ||||||
Retained deficit | (41,761 | ) | (28,583 | ) | ||||
Accumulated other comprehensive loss | (3,169 | ) | (1,035 | ) | ||||
Total equity | 88,004 | 70,845 | ||||||
Total liabilities and equity | $ | 217,249 | $ | 225,188 | ||||
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per shareamounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Unaudited | Unaudited | |||||||||||||||
Netrevenues | $ | 60,590 | $ | 64,478 | $ | 242,107 | $ | 213,112 | ||||||||
Costof sales | 52,078 | 54,301 | 198,060 | 176,266 | ||||||||||||
Gross profit | 8,512 | 10,177 | 44,047 | 36,846 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development costs | 660 | 662 | 2,839 | 2,564 | ||||||||||||
Selling, general and administrative expenses | 8,523 | 8,750 | 35,707 | 34,547 | ||||||||||||
Impairment of intangibles | 5,736 | - | 5,736 | - | ||||||||||||
Total operating expenses | 14,919 | 9,412 | 44,282 | 37,111 | ||||||||||||
Operating income (loss) | (6,407 | ) | 765 | (235 | ) | (265 | ) | |||||||||
Other(expense) income | ||||||||||||||||
Interest expense | (1,158 | ) | (2,000 | ) | (5,508 | ) | (6,498 | ) | ||||||||
Interest income | 73 | - | 168 | - | ||||||||||||
Change in fair value of securities held | (3,186 | ) | - | (5,494 | ) | - | ||||||||||
Foreign currency transaction loss | (179 | ) | (11 | ) | (814 | ) | (1,149 | ) | ||||||||
Other (expense) income | (19 | ) | 6 | (374 | ) | 367 | ||||||||||
Total other expense | (4,469 | ) | (2,005 | ) | (12,022 | ) | (7,280 | ) | ||||||||
Loss before income taxes and income (loss) in equityinterest from continuing operations | (10,876 | ) | (1,240 | ) | (12,257 | ) | (7,545 | ) | ||||||||
Income tax expense (benefit) from continuing operations | (29 | ) | (534 | ) | 511 | (118 | ) | |||||||||
Income (loss) on equity investments (including loss on sale of shares) | - | 76 | (409 | ) | 360 | |||||||||||
Net loss from continuing operations | (10,847 | ) | (630 | ) | (13,177 | ) | (7,067 | ) | ||||||||
Discontinued operations | ||||||||||||||||
Lossfrom operations of discontinued operations (including loss ondisposal for the three and nine months 2017 of $1,133) | - | (169 | ) | - | (742 | ) | ||||||||||
Income tax expense (benefit) | - | 23 | - | (5 | ) | |||||||||||
Lossfrom discontinued operations | - | (192 | ) | - | (737 | ) | ||||||||||
Net Loss | (10,847 | ) | (822 | ) | (13,177 | ) | (7,804 | ) | ||||||||
Netincome attributable to noncontrolling interest from discontinuedoperations | - | - | (274 | ) | ||||||||||||
Net Loss attributable to shareholders of ManitexInternational, Inc. | $ | (10,847 | ) | $ | (822 | ) | $ | (13,177 | ) | $ | (8,078 | ) | ||||
Earnings (loss) Per Share | ||||||||||||||||
Basic | ||||||||||||||||
Lossfrom continuing operations attributable to shareholders of ManitexInternational, Inc. | $ | (0.55 | ) | $ | (0.04 | ) | $ | (0.72 | ) | $ | (0.43 | ) | ||||
Lossfrom discontinued operations attributable to shareholders ofManitex International, Inc. | $ | - | $ | (0.01 | ) | $ | - | $ | (0.06 | ) | ||||||
Netloss attributable to shareholders of Manitex International,Inc. | $ | (0.55 | ) | $ | (0.05 | ) | $ | (0.72 | ) | $ | (0.49 | ) | ||||
Diluted | ||||||||||||||||
Lossfrom continuing operations attributable to shareholders of ManitexInternational, Inc. | $ | (0.55 | ) | $ | (0.04 | ) | $ | (0.72 | ) | $ | (0.43 | ) | ||||
Lossfrom discontinued operations attributable to shareholders ofManitex International, Inc. | $ | - | $ | (0.01 | ) | $ | - | $ | (0.06 | ) | ||||||
Netloss attributable to shareholders of Manitex International,Inc. | $ | (0.55 | ) | $ | (0.05 | ) | $ | (0.72 | ) | $ | (0.49 | ) | ||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 19,625,695 | 16,595,726 | 18,409,296 | 16,548,444 | ||||||||||||
Diluted | 19,625,695 | 16,595,726 | 18,409,296 | 16,548,444 | ||||||||||||
Reconciliation of GAAP Operating Income (Loss) fromContinuing Operations to Adjusted EBITDA (inthousands)
| Three Months Ended | Twelve Months Ended ** | |||||||||||||||
| December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||
Operating income (loss) | $ | (6,407 | ) | $ | 765 | $ | (235 | ) | $ | (265 | ) | |||||
Adjustments related to change in accounting estimates, restatement, restructuring, discontinued model, restricted stock, trade name and goodwill impairment and other expenses | 8,732 | 1,160 | 12,655 | 8,923 | ||||||||||||
Adjusted operating income | 2,325 | 1,925 | 12,420 | 8,658 | ||||||||||||
Depreciation and amortization | 1,200 | 1,199 | 4,989 | 5,107 | ||||||||||||
Adjusted EBITDA | $ | 3,525 | $ | 3,124 | $ | 17,409 | $ | 13,765 | ||||||||
Adjusted EBITDA % to sales | 5.8 | % | 4.8 | % | 7.2 | % | 6.5 | % | ||||||||
Reconciliation of GAAP Net Income (Loss) From ContinuingOperations Attributable to Shareholders of Manitex International toAdjusted Net Income (Loss) From continuing Operations Attributableto Shareholders of Manitex International (inthousands)
| Three Months Ended | Twelve Months Ended ** | |||||||||||||||
| December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||
Netloss from continuing operations attributable to shareholders | $ | (10,847 | ) | $ | (630 | ) | $ | (13,177 | ) | $ | (7,067 | ) | ||||
Adjustments related to change in accounting estimates, restatement, restructuring, discontinued model, restricted stock, foreign exchange, change in fair value of securities, trade name and goodwill impairment and other expenses (Including net tax impact) | 12,058 | 1,503 | 19,195 | 10,345 | ||||||||||||
Adjusted net Income from continuing operations attributable to shareholders | 1,211 | 873 | 6,018 | 3,278 | ||||||||||||
Weighted diluted shares outstanding | 19,625,695 | 16,595,726 | 18,409,296 | 16,548,444 | ||||||||||||
Diluted loss per share attributable to shareholders as reported | (0.55 | ) | $ | (0.04 | ) | $ | (0.72 | ) | $ | (0.43 | ) | |||||
TotalEPS effect | $ | 0.61 | $ | 0.09 | $ | 1.04 | $ | 0.63 | ||||||||
Adjusted diluted earnings per share attributable to shareholders | $ | 0.06 | $ | 0.05 | $ | 0.33 | $ | 0.20 | ||||||||
Change in Accounting Estimates, Change in Fair Market Valueof Securities, Foreign Exchange, Trade Name and GoodwillImpairment, Restatement, Restructuring, Restricted Stock and otherExpenses
| Three Months Ended | Twelve Months Ended ** | |||||||||||||||
Pre-tax adjustments | December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||||
Restricted stock | $ | 109 | $ | 227 | $ | 640 | $ | 744 | ||||||||
Foreign exchange | 179 | 11 | 814 | 1,149 | ||||||||||||
Restatement expenses | 358 | 150 | 2,364 | 150 | ||||||||||||
Restructuring | 367 | 415 | 1,161 | 1,119 | ||||||||||||
Change in accounting estimates - Inventory reserve | 1,834 | 278 | 1,834 | 1,799 | ||||||||||||
Tradename and goodwill impairment | 5,736 | - | 5,736 | - | ||||||||||||
Change in fair market value of securities | 3,186 | - | 6,089 | - | ||||||||||||
Otherexpenses | 328 | 422 | 607 | 508 | ||||||||||||
Discontinued model | - | - | 480 | - | ||||||||||||
Normalized plant absorption levels | - | - | - | 3,770 | ||||||||||||
Tradeshow expenses (tri-annual only) | - | - | - | 1,106 | ||||||||||||
Total | $ | 12,097 | $ | 1,503 | $ | 19,725 | $ | 10,345 | ||||||||
Backlog from Continuing Operations
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.
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | ||||||||||||||||
Backlog | $ | 66,735 | $ | 60,477 | $ | 75,601 | $ | 87,860 | $ | 61,530 | ||||||||||
Change Versus Current Period | 10.3 | % | -11.7 | % | -24.0 | % | 8.5 | % | ||||||||||||
Note: As of February 28, 2019 backlog was$80,192.
Net Debt is calculated usingthe Condensed Consolidated Balance Sheet amounts for current andlong term portion of long term debt, capital lease obligations,notes payable, convertible notes and revolving credit facilitiesminus cash.
| December 31, 2018 | December 31, 2017 | |||||||
Cash& marketable equity securities | $ | 24,508 | $ | 5,366 | ||||
Notespayable - short term | $ | 22,706 | $ | 29,131 | ||||
Current portion of capital leases | 422 | 378 | ||||||
Revolving term credit facilities | - | 12,893 | ||||||
Notespayable - long term | 23,134 | 26,656 | ||||||
Capital lease obligations | 5,061 | 5,483 | ||||||
Convertible notes | 21,688 | 21,315 | ||||||
Total debt | $ | 73,011 | $ | 95,856 | ||||
Net Debt | $ | 48,503 | $ | 90,490 | ||||
** All references in this release to financial results ofperiods ending prior to the third quarter of 2017 reflect suchresults as restated pursuant to the recently completed restatementof such periods.
SOURCE: Manitex International, Inc.
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