Manitex International, Inc. Reports Third Quarter 2019 Results

BRIDGEVIEW, IL / ACCESSWIRE / November 7, 2019 / Manitex International, Inc. (NASDAQ:MNTX), a leading international provider of cranes and specialized industrial equipment, today announced third quarter 2019 results. Net revenues for the third quarter were $51.9 million, compared to $60.9 million in the prior year's period, and net loss was $(11.9) million, or $(0.60) per share, compared to net income of $0.1 million, or $0.01 per share, in the third quarter of 2018. Adjusted net loss* in the third quarter 2019 was a slight loss, or $(0.00) per share, compared to adjusted net income of $2.1 million, or $0.11 per share, for the third quarter of 2018.

Financial Highlights (versus prior year, unless otherwise noted):

• Net revenues of $51.9 million, declined 15%, or 13% excluding unfavorable currency impact
• Loss per share of $(0.60), as adjusted $(0.00)
• EBITDA $(7.5) million, as adjusted $1.9 million
• Non-cash goodwill and intangible asset impairment of $(8.1) million or $(0.41) per share impact to net loss
• Non-cash charge related to deferred tax asset valuation allowance of $(2.2) million or $(0.11) per share impact to net loss
• Sequential pickup in backlog to $63.1 million as of October 31, 2019
• Book to bill ratio was 1.02:1 in Q3 2019

^{* 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:

• Appointment of Steve Filipov as Chief Executive Officer and Director of Manitex International
• Awarded a new contract valued at $4.5 million to supply knuckle boom cranes to an international military organization (the contract provides for an optional $4 million in additional deliveries)
• Launched the TC-600 and the Manitex branded line of articulating cranes ("MAC") at the ICUEE show in Louisville, KY
• Began production and sales of new Valla V80R remote-control electric crane
• Expanded the Company's North American distribution network with the addition of one new MAC dealer and three straight-mast crane dealers

Chief Executive Officer Steve Filipov commented, "2019 has been a year of extremely volatile demand in the industrial equipment markets, particularly here in North America, and we've taken a number of steps to diversify our business portfolio and build a stronger base for positive future financial performance. We continue to see a significant opportunity to become a global player in a market that is available to us through our articulated crane product family, and 60 days into this assignment, I'm very confident in our strategy going forward for this segment of our business. We've made some key personnel, operating, and branding changes throughout the organization that we believe will enable us to meaningfully penetrate various large geographic markets, both with our partner Tadano, as well as through our well-established Manitex straight-mast dealer network. We have started shipping articulated cranes under the brand name PM-Tadano, to customers in Asia, and that is just one of the key branding initiatives we've launched within the past 180 days.

"I have challenged the entire team to commit to reaching our potential and achieving the growth goals we've set, which start with driving sales at PM to a much higher level than we've seen. We're targeting sourcing cost reductions, improved dealer management and incentivization, revamping product designs, improving parts execution and fill rates, and stressing a commitment to quality and safety."

Steve Kiefer, President and Chief Operating Officer of Manitex added, "In the third quarter and fourth quarter to date, our global team has been focused on efficient production at our facilities, prudent working capital management, and ongoing product and commercial innovation and development. Notwithstanding challenging and softening conditions in some of our end-markets, we are pleased to see our knuckle boom crane products becoming an increasingly larger component of our backlog while we maintain a leadership position with our North American Manitex straight mast crane products. Diversification remains a key element of our strategy and we were pleased to announce the award of a $4.5 Million international military contract for our knuckle boom cranes, new dealers for our knuckle boom and straight mast crane products in various parts of the world, and the positive market reception of our new TC-600 Manitex straight mast crane and Valla V80R remote-control electric crane. Looking ahead, we will remain focused on generating cash and further debt reduction, operational excellence, new product development and the pursuit of global revenue expansion for our core brands."

Outlook:

"Our objectives for the remainder of the year will be to produce efficiently, maintain our production and book to bill at the current level, reduce our working capital to generate cash and pay down debt, maintain our market leadership position in straight mast boom trucks and position ourselves to penetrate the global markets for articulated truck cranes," concluded Mr. Filipov.

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 866-575-6539 if calling within the United States or 323-994-2082 if calling internationally. A replay will be available until November 14, 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 8263903 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, 2019 and 2018, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three and nine month periods ended September 30, 2019 and 2018 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.

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.

Contact:

Manitex International, Inc.
Steve Filipov
Chief Executive Officer
(708) 237-2054
[email protected]

Darrow Associates, Inc.
Peter Seltzberg, Managing Director
Investor Relations
(516) 419-9915
[email protected]
 

MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)

Net Sales and Gross Margin % (in thousands)

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

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

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

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.

Note: As of October 31, 2019, backlog was $63,100.

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.

SOURCE: Manitex International Inc.