Manitex International, Inc. Reports Fourth Quarter and Full Year 2020 Results
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Manitex International, Inc. Reports Fourth Quarter and Full Year 2020 Results

Thursday, March 11, 2021 4:01 PM
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BRIDGEVIEW, IL / ACCESSWIRE / March 11, 2021 / Manitex International, Inc. (NASDAQ:MNTX), a leading international provider of cranes and specialized industrial equipment, today announced fourth quarter and full year 2020 results. Net sales from continuing operations for the fourth quarter were $45.2 million, compared to $53.1 million in the prior year's fourth quarter, and net loss from continuing operations was $(1.8 million), or $(0.09) per share, compared to net loss from continuing operations of $(0.1 million) or $(0.01) per share, in the fourth quarter of 2019. Adjusted net loss* from continuing operations in the fourth quarter of 2020 was $(1.3 million), or $(0.07) per share, compared to adjusted net income of $1.3 million, or $0.06 per share, for the fourth quarter of 2019.

Quarterly Financial Highlights (Sequential comparisons unless noted otherwise):

  • Net sales increased 24% to $45.2 million compared to $36.5 million in the third quarter of 2020
  • Gross profit of $8.4 million, or 18.7% of sales was approximately 25% ahead of $6.7 million gross profit, or 18.3% of sales in the third quarter of 2020
  • Realized 100 basis point improvement in SG&A as a percent of sales compared to the third quarter of 2020
  • Adjusted EBITDA* of $1.5 million, or 3.3% of sales, represents an increase of $0.5 million from $1.0 million, or 2.6% of sales in the third quarter of 2020
  • $82.2 million backlog as of January 31, 2021, which represents the highest level in over three years, represents order strength throughout the portfolio
  • Repaid all $15.5 million in convertible notes and $2 million in European term debt to close the year with $29.9 million in net debt as of 12/31/2020 compared to $41.2 million a year ago
  • Available liquidity through cash and credit lines of approximately $29 million as of December 31, 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.

Steve Filipov, CEO of Manitex International commented, "Manitex posted fourth quarter results that reflect good execution throughout the organization, with continued focus on pursuing our top growth opportunities and managing our resources efficiently, despite the challenges of COVID-19. On top of the higher quarterly revenues and Adjusted EBITDA compared to the third quarter, strong bookings in the second half of 2020 resulted in a backlog level not seen in years which we believe will result in higher revenues and operating income throughout the year, and we're expecting to meet the increased level of production that will be needed to meet the higher demand."

"The improved pace of bookings for Manitex products has been led by particular strength in our global crane and aerials businesses, with our European PM business leading our expansion with Manitex straight mast crane also showing signs of recovery, with an acceleration in orders coming out of 2020 and into 2021. And Valla electric cranes, with a $5 million backlog, is at its highest level since joining Manitex International. Our balance sheet is in the best shape it's been in several years, as we paid down our remaining $15.5 million in convertible note obligations which we announced in December, and closed the year with net debt of $30 million, its lowest level in nearly a decade."

"Given the uptick in orders and backlog, we expect our revenues to trend somewhat higher in the first quarter of 2021, with a recovery in margins and the bottom line progressively throughout the year, subject to continued vigilance with respect to COVID-19 to maintain the maximum level of safety and health for our employees, customers, and partners. We expect improved financial performance to be brought about by expected higher volumes, lower interest expenses and our continued benefit from cost reductions implemented during the past 12 months," concluded Mr. Filipov.

Conference Call:

Management will host a conference call with an accompanying slide presentation, after the close of the market, at 4:30 PM ET today, March 11, 2021, to discuss the results with the investment community. Anyone interested in participating in the call should dial 877-407-0792 from within the United States or 201-689-8263 if calling internationally. A replay will be available until March 18, 2021, 11:59 PM 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 13715658 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

In this press release, we refer 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. A reconciliation of Adjusted GAAP financial measures for the three and twelve month periods ended December 31, 2020 and 2019 is included with this press release below and with the Company's related Form 8-K. Third quarter 2020 comparisons noted above are reconciled in our September 30, 2020 filings. Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis. 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, 2020 and 2019, unless otherwise indicated

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.
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)

             
 
  December 31, 2020     December 31, 2019  
ASSETS
           
Current assets
           
Cash
  $ 17,161     $ 23,327  
Cash - restricted
    240       217  
Trade receivables (net)
    30,418       34,725  
Other receivables
    179       1,033  
Inventory (net)
    56,055       57,818  
Prepaid expense and other current assets
    2,218       4,706  
Current assets of discontinued operations
    -       1,591  
Total current assets
    106,271       123,417  
Total fixed assets, net of accumulated depreciation of $17,444 and $14,864
        at December 31, 2020 and December 31, 2019, respectively
    18,723       19,035  
Operating lease assets
    4,068       2,174  
Intangible assets (net)
    15,671       17,032  
Goodwill
    27,472       32,635  
Other long-term assets
    1,143       281  
Deferred tax asset
    247       415  
Long-term assets of discontinued operations
    -       413  
Total assets
  $ 173,595     $ 195,402  
LIABILITIES AND EQUITY
               
Current liabilities
               
Accounts payable
  $ 32,429     $ 29,593  
Accrued expenses
    7,909       9,138  
Accounts payable related parties
    52       228  
Notes payable
    16,510       18,212  
Convertible note-related party (net)
    -       7,323  
Current portion of finance lease obligations
    344       476  
Current portion of operating lease obligations
    1,167       813  
Customer deposits
    2,363       1,493  
Deferred income liability
    3,747       -  
Current liabilities of discontinued operations
    -       800  
Total current liabilities
    64,521       68,076  
Long-term liabilities
               
Revolving term credit facilities (net)
    12,606       -  
Notes payable (net)
    13,625       19,446  
Finance lease obligations (net of current portion)
    4,221       4,584  
Non-current operating lease liabilities
    2,901       1,361  
Convertible note (net)
    -       14,760  
Deferred gain on sale of property
    587       667  
Deferred tax liability
    1,333       1,045  
Other long-term liabilities
    4,892       5,913  
Total long-term liabilities
    40,165       47,776  
Total liabilities
    104,686       115,852  
Commitments and contingencies
               
Equity
               
Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at
        December 31, 2020 and 2019
    -       -  
Common Stock-no par value 25,000,000 shares authorized, 19,821,090 and 19,713,185
        shares issued and outstanding at December 31, 2020, and 2019, respectively
    131,455       130,710  
Paid in capital
    3,025       2,793  
Retained deficit
    (63,863 )     (50,253 )
Accumulated other comprehensive loss
    (1,708 )     (3,700 )
Total equity
    68,909       79,550  
Total liabilities and equity
  $ 173,595     $ 195,402  
 
               

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

             
 
  Three Months Ended
December 31,
    Year Ended
December 31,
 
 
  2020     2019     2020     2019  
Net revenues
  $ 45,184     $ 53,089     $ 167,498     $ 215,492  
Cost of sales
    36,755       43,171       136,632       174,649  
Gross profit
    8,429       9,918       30,866       40,843  
Operating expenses
                               
Research and development costs
    981       824       3,227       2,714  
Selling, general and administrative expenses
    7,517       7,601       28,743       34,086  
Impairment of intangibles
    -       -       6,722       1,539  
Total operating expenses
    8,498       8,425       38,692       38,339  
Operating (loss) income
    (69 )     1,493       (7,826 )     2,504  
Other income (expense)
                               
Interest expense
    (762 )     (1,214 )     (3,595 )     (4,512 )
Interest income
    17       68       97       229  
Gain on extinguishment of debt
    -       -       595       -  
Change in fair value of securities held
    -       -       -       5,454  
Foreign currency transaction loss
    (142 )     (126 )     (813 )     (844 )
Other (expense) income
    (6 )     37       (503 )     15  
Total other (expense) income
    (893 )     (1,235 )     (4,219 )     342  
(Loss) income before income taxes from continuing operations
    (962 )     258       (12,045 )     2,846  
Income tax expense from continuing operations
    865       342       674       2,791  
(Loss) income from continuing operations
    (1,827 )     (84 )     (12,719 )     55  
Discontinued operations:
                               
Loss from operations of discontinued operations
    (57 )     (770 )     (888 )     (8,575 )
Income tax expense (benefit)
    2       (67 )     3       (28 )
Loss from discontinued operations
    (59 )     (703 )     (891 )     (8,547 )
Net loss
  $ (1,886 )   $ (787 )   $ (13,610 )   $ (8,492 )
(Loss) earnings Per Share
                               
Basic
                               
Loss from continuing operations
  $ (0.09 )   $ (0.01 )   $ (0.64 )   $ -  
Loss from discontinued operations
  $ (0.01 )   $ (0.03 )   $ (0.05 )   $ (0.43 )
Net loss
  $ (0.10 )   $ (0.04 )   $ (0.69 )   $ (0.43 )
Diluted
                               
Loss from continuing operations
  $ (0.09 )   $ (0.01 )   $ (0.64 )   $ -  
Loss from discontinued operations
  $ (0.01 )   $ (0.03 )   $ (0.05 )   $ (0.43 )
Net loss
  $ (0.10 )   $ (0.04 )   $ (0.69 )   $ (0.43 )
Weighted average common shares outstanding
                               
Basic
    19,817,599       19,696,093       19,773,081       19,687,414  
Diluted
    19,817,599       19,696,093       19,773,081       19,687,414  
 
                               

Note: Results shown are from Continuing Operations

Reconciliation of Net Income To Adjusted Net Income:

 
  Three Months Ended     Year Ended  
 
  December 31, 2020     September 30, 2020     December 31, 2019     December 31, 2020     December 31, 2019  
 
                             
Net (loss) income
  $ (1,827 )   $ (1,447 )   $ (84 )   $ (12,719 )   $ 55  
Adjustments, including net tax impact
    528       437       1,335       10,347       4,713  
Adjusted net (loss) income
  $ (1,299 )   $ (1,010 )   $ 1,251     $ (2,372 )   $ 4,768  
 
                                       
Weighted diluted shares outstanding
    19,817,599       19,778,225       19,696,093       19,773,081       19,687,414  
Diluted (loss) earnings per shares as reported
  $ (0.09 )   $ (0.07 )   $ (0.01 )   $ (0.64 )   $ -  
Total EPS effect
  $ 0.02     $ 0.02     $ 0.07     $ 0.52     $ 0.24  
Adjusted diluted (loss) earnings per share
  $ (0.07 )   $ (0.05 )   $ 0.06     $ (0.12 )   $ 0.24  
                                         

Reconciliation of Net Income To Adjusted EBITDA:

 
  Three Months Ended     Year Ended  
 
  December 31, 2020     September 30, 2020     December 31, 2019     December 31, 2020     December 31, 2019  
 
                             
Net Income (loss)
  $ (1,827 )   $ (1,447 )   $ (84 )   $ (12,719 )   $ 55  
Interest expense
    762       825       1,214       3,595       4,512  
Tax expense (benefit)
    865       62       342       674       2,791  
Depreciation and amortization expense
    1,164       1,053       1,110       4,309       4,307  
EBITDA
  $ 964     $ 493     $ 2,582     $ (4,141 )   $ 11,665  
 
                                       
Adjustments:
                                       
Stock compensation
  $ 380     $ 233     $ 155     $ 1,038     $ 603  
FX
    142       229       3       813       721  
Litigation / legal settlement
    113       508       88       772       186  
Goodwill impairment
    -       -       -       6,585       315  
Tradenames & customer relationships impairment
    -       -       -       137       1,224  
Restructuring / asset impairment costs
    -       42       287       433       2,086  
Gain from PM debt payoff
    -       (595 )     -       (595 )     -  
Put call option reserve reversal
    (334 )     -       -       (334 )     -  
ASV share value change
    -       -       -       -       (5,454 )
Other
    233       50       370       998       2,500  
 
                                       
Total Adjustments
  $ 534     $ 467     $ 903     $ 9,847     $ 2,181  
 
                                       
Adjusted EBITDA
  $ 1,498     $ 960     $ 3,485     $ 5,706     $ 13,846  
Adjusted EBITDA as % of sales
    3.3 %     2.6 %     6.6 %     3.4 %     6.4 %
                                         

Backlog

 
  Dec 31, 2020     Sep 30, 2020     Jun 30, 2020     Mar 31, 2020     Dec 31, 2019   Sep 30, 2019
 
                                   
Backlog from continuing operations
  $ 67,967     $ 50,541     $ 44,272     $ 57,045     $ 65,263     $ 56,207  
Change Versus Current Period
            34.5 %     53.5 %     19.1 %     4.1 %     20.9 %
 
                                               

Note: Backlog was $82.2 million as of January 31, 2021

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.

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.

                   
 
  December 31, 2020     September 30, 2020     December 31, 2019  
Total cash & cash equivalents
  17,401     23,562     23,544  
 
                       
Notes payable - short term
    16,510     17,832     18,212  
Current portion of finance leases
    344       352       476  
Convertible notes
    -       15,431       22,083  
Notes payable - long term
    13,625       15,368       19,446  
Finance lease obligations - LT
    4,221       4,311       4,584  
Revolver, net
    12,606       5,000       -  
Total debt
  47,306     58,294     64,801  
 
                       
Net debt
  29,905     34,732     41,257  
                         

SOURCE: Manitex International, Inc.

Manitex International, Inc.
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