Manitex International, Inc. Reports First Quarter 2021 Results
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Manitex International, Inc. Reports First Quarter 2021 Results

Thursday, May 6, 2021 4:00 PM
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BRIDGEVIEW, IL / ACCESSWIRE / May 6, 2021 / Manitex International, Inc. (NASDAQ:MNTX), a leading international provider of cranes and specialized industrial equipment, today announced first quarter 2021 results. Net sales from continuing operations for the first quarter were $47.2 million, compared to $48.7 million in the prior year's first quarter, and net loss from continuing operations was $(0.8 million) or $(0.04) per share, compared to net loss from continuing operations of $(7.0 million) or $(0.36) per share, in the first quarter of 2020. Adjusted net loss* from continuing operations in the first quarter of 2021 was $(0.1 million), or $(0.01) per share, compared to adjusted net income of $1.6 million, or $0.08 per share, for the first quarter of 2020.

Quarterly Financial Highlights (Sequential comparisons unless noted otherwise):

  • Net sales increased to $47.2 million compared to $45.2 million in the fourth quarter of 2020
  • Gross profit of $8.8 million, or 18.7% of sales was in-line with $8.4 million gross profit, or 18.7% of sales in the fourth quarter of 2020
  • Adjusted EBITDA* increased 24.0% to $1.9 million, or 3.9% of sales, from $1.5 million, or 3.3% of sales in the fourth quarter of 2020
  • $107 million backlog as of April 30, 2021 is at a 5-year high, and book to bill was 1.34:1
  • Available liquidity through cash and credit lines of approximately $28 million as of March 31, 2021

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, "Our first quarter results were in-line with our expectations and reflect increased net sales and adjusted EBITDA. Our backlog has grown consistently over the past several quarters, evidence of a healthy recovery in demand in many of the markets that our products are uniquely suited for, and has surpassed $100 million, giving us confidence that we will achieve a year of growth in 2021. To put that in perspective, just slightly over a year ago, we reported a backlog of $57 million, and thus, we're pleased with the progress that our global sales team is making. We recently announced $1.7 million in follow-on orders for PM cranes from a large international military entity as originally announced in the third quarter last year.

"While the backlog indicates a healthy level of demand in each product category, there remain challenges with respect to logistics, supply chain, and input pricing that are typical at the early stages of a recovery. We will aim to work closely with our customers to collectively address the cost increases, protect our margins, and effectively manage our working capital. Given the visibility we have for acceleration in our sales and a more favorable product mix in the backlog, we anticipate progressively higher EBITDA and EBITDA margins throughout the year as we move towards our target of double-digit EBITDA margins.

Our balance sheet, with net debt of $31 million, is in good shape, and our cash and availability of approximately $28 million also positions us well for growth," concluded Mr. Filipov.

Conference Call:
Management will host a conference call with an accompanying slide presentation, after the close of the market, at 4:30PM ET today, May 6, 2021, to discuss the results with the investment community. Anyone interested in participating in the call should dial 800-683-3233 from within the United States or 303-223-4369 if calling internationally. A replay will be available until May 13, 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 21993763 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 month periods ended March 31, 2021 and 2020 and December 31, 2020 is included with this press release below and with the Company's related Form 8-K. 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 month periods ended March 31, 2021 and 2020 and December 31, 2020, 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)

ASSETS
           
Current assets
           
Cash
  $ 15,839     $ 17,161  
Cash - restricted
    236       240  
Trade receivables (net)
    33,565       30,418  
Other receivables
    1,289       179  
Inventory (net)
    58,853       56,055  
Prepaid expense and other current assets
    3,712       2,218  
Total current assets
    113,494       106,271  
Total fixed assets, net of accumulated depreciation of $17,599 and $17,444
at December 31, 2020 and December 31, 2019, respectively
    17,777       18,723  
Operating lease assets
    3,752       4,068  
Intangible assets (net)
    14,633       15,671  
Goodwill
    26,729       27,472  
Other long-term assets
    1,143       1,143  
Deferred tax asset
    247       247  
Total assets
  $ 177,775     $ 173,595  
LIABILITIES AND EQUITY
               
Current liabilities
               
Accounts payable
  $ 38,846     $ 32,429  
Accrued expenses
    8,650       7,909  
Related party payables
    34       52  
Notes payable
    16,995       16,510  
Current portion of finance lease obligations
    344       344  
Current portion of operating lease obligations
    1,009       1,167  
Customer deposits
    1,771       2,363  
Deferred income liability
    3,747       3,747  
Total current liabilities
    71,396       64,521  
Long-term liabilities
               
Revolving term credit facilities (net)
    12,644       12,606  
Notes payable (net)
    13,067       13,625  
Finance lease obligations (net of current portion)
    4,128       4,221  
Non-current operating lease liabilities
    2,743       2,901  
Deferred gain on sale of property
    567       587  
Deferred tax liability
    1,317       1,333  
Other long-term liabilities
    4,723       4,892  
Total long-term liabilities
    39,189       40,165  
Total liabilities
    110,585       104,686  
Commitments and contingencies
               
Equity
               
Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at
March 31, 2021 and December 31, 2020
    -       -  
Common Stock-no par value 25,000,000 shares authorized, 19,900,789 and 19,821,090
shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively
    131,991       131,455  
Paid in capital
    2,740       3,025  
Retained deficit
    (64,635 )     (63,863 )
Accumulated other comprehensive loss
    (2,906 )     (1,708 )
Total equity
    67,190       68,909  
Total liabilities and equity
  $ 177,775     $ 173,595  
 
               

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

 
  Three Months Ended
March 31,
 
 
  2021     2020  
Net revenues
  $ 47,168     $ 48,733  
Cost of sales
    38,363       38,486  
Gross profit
    8,805       10,247  
Operating expenses
               
Research and development costs
    785       687  
Selling, general and administrative expenses
    7,744       8,039  
Impairment of intangibles
    -       6,722  
Total operating expenses
    8,529       15,448  
Operating income (loss)
    276       (5,201 )
Other income (expense)
               
Interest expense
    (525 )     (1,084 )
Interest income
    4       60  
Foreign currency transaction loss
    (215 )     (418 )
Other (expense) income
    (20 )     3  
Total other (expense) income
    (756 )     (1,439 )
Loss before income taxes from continuing operations
    (480 )     (6,640 )
Income tax expense from continuing operations
    292       404  
Loss from continuing operations
    (772 )     (7,044 )
Discontinued operations:
               
Loss from operations of discontinued operations
    -       (388 )
Income tax expense (benefit)
    -       44  
Loss from discontinued operations
    -       (432 )
Net loss
  $ (772 )   $ (7,476 )
Loss Per Share
               
Basic
               
Loss from continuing operations
  $ (0.04 )   $ (0.36 )
Loss from discontinued operations
    -     $ (0.02 )
Net loss
  $ (0.04 )   $ (0.38 )
Diluted
               
Loss from continuing operations
  $ (0.04 )   $ (0.36 )
Loss from discontinued operations
    -     $ (0.02 )
Net loss
  $ (0.04 )   $ (0.38 )
Weighted average common shares outstanding
               
Basic
    19,845,064       19,733,772  
Diluted
    19,845,064       19,733,772  
 
               

Note: Results shown are from Continuing Operations

Net Sales, Gross Margin and Operating Income (Los

                                     
 
  Three Months Ended  
 
  March 31, 2021     December 31, 2020     March 31, 2020  
 
  As Reported     As Adjusted     As Reported     As Adjusted     As Reported     As Adjusted  
Net sales
  $ 47,168     $ 47,168     $ 45,184     $ 45,184     $ 48,733     $ 48,733  
% change Vs Q4 2020
    4.4 %     4.4 %                                
% change Vs Q1 2020
    (3.2 %)     (3.2 %)                                
 
                                               
Gross margin
    8,805       8,873       8,429       8,095       10,247       10,317  
Gross margin % of net sales
    18.7 %     18.8 %     18.7 %     17.9 %     21.0 %     21.2 %
 
                                               
Operating Income (loss)
    276       748       (69 )     323       (5,201 )     2,467  
 
                                               

Reconciliation of Net Loss To Adjusted Net Loss:

 
  Three Months Ended  
 
  March 31, 2021     December 31, 2020     March 31, 2020  
 
                 
Net (loss) income
  $ (772 )   $ (1,827 )   $ (7,044 )
Adjustments, including net tax impact
    664       528       8,647  
Adjusted net (loss) income
  $ (108 )   $ (1,299 )   $ 1,603  
 
                       
Weighted diluted shares outstanding
    19,845,064       19,817,599       19,733,772  
Diluted (loss) earnings per shares as reported
  $ (0.04 )   $ (0.09 )   $ (0.36 )
Total EPS effect
  $ 0.03     $ 0.02     $ 0.44  
Adjusted diluted (loss) earnings per share
  $ (0.01 )   $ (0.07 )   $ 0.08  
 
                       
 
                       

Reconciliation of Net Loss To Adjusted EBITDA:

                   
 
  Three Months Ended  
 
  March 31, 2021     December 31, 2020     March 31, 2020  
 
                 
Net Income (loss)
  $ (772 )   $ (1,827 )   $ (7,044 )
Interest expense
    521       762       1,084  
Tax expense
    292       865       403  
Depreciation and amortization expense
    1,130       1,164       1,037  
EBITDA
  $ 1,171     $ 964     $ (4,520 )
 
                       
Adjustments:
                       
Stock compensation
  $ 299     $ 380     $ 222  
FX
    215       142       418  
Litigation / legal settlement
    90       113       108  
Goodwill impairment
    -       -       6,585  
Tradenames & customer relationships impairment
    -       -       137  
Restructuring / asset impairment costs
    68       -       70  
Trade show expense
    -       -       546  
Put call option reserve reversal
    -       (334 )     -  
Other
    15       233       -  
 
                       
Total Adjustments
  $ 687     $ 534     $ 8,086  
 
                       
Adjusted EBITDA
  $ 1,858     $ 1,498     $ 3,566  
 
                       
Adjusted EBITDA as % of sales
    3.9 %     3.3 %     7.3 %
 
                       

Backlog

  Mar 31, 2021     Dec 31, 2020     Sep 30, 2020     Jun 30, 2020     Mar 31, 2020     Dec 31, 2019     Sep 30, 2019  
                                         
  $ 83,793     $ 67,967     $ 50,541     $ 44,272     $ 57,045     $ 65,263     $ 56,207  
            23.3 %     65.8 %     89.3 %     46.9 %     28.4 %     49.1 %
                                                       
                                                       

Note: Backlog was $107 million as of April 30, 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, and revolving credit facilities minus cash and cash equivalents.

 
  March 31, 2021     December 31, 2020  
Total cash & cash equivalents
  $ 16,075     $ 17,401  
 
               
Notes payable - short term
  $ 16,995     $ 16,510  
Current portion of finance leases
    344       344  
Notes payable - long term
    13,067       13,625  
Finance lease obligations - LT
    4,128       4,221  
Revolver, net
    12,644       12,606  
Total debt
  $ 47,178     $ 47,306  
 
               
Net debt
  $ 31,103     $ 29,905  
 
               

SOURCE: Manitex International, Inc.

Manitex International, Inc.
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