Manitex International, Inc. Reports Third Quarter 2020 Results
Manitex International reported third-quarter 2020 results, with net revenues of $36.5 million, down from $50.6 million in Q3 2019. A net loss of $(1.4) million was recorded, less than the $(4.5) million loss in the previous year. Adjusted EBITDA improved to $0.9 million, reflecting a $1.3 million increase from Q2 2020. The company achieved significant backlog growth of 28% since June 30, 2020, totaling $56.6 million. Cash and credit liquidity stands at approximately $41 million, enabling debt repayments. Revenue guidance for Q4 2020 ranges from $40 million to $43 million.
- Gross margin improved by 340 basis points to 18.3% compared to prior quarter.
- Adjusted EBITDA positive swing of $1.3 million to $0.9 million for the quarter.
- Backlog increased by 28% since June 30, 2020, totaling $56.6 million.
- Achieved $1.1 million in realized cost savings due to restructuring.
- Reduced net debt by $6.5 million to $34.7 million.
- Liquidity available through cash and credit lines of approximately $41 million.
- Net revenues declined by 1.7% compared to the prior quarter.
- Net loss of $(1.4) million compared to a loss of $(4.5) million in Q3 2019.
- Seasonal shutdown and furloughs impacted operations.
BRIDGEVIEW, IL / ACCESSWIRE / November 5, 2020 / Manitex International, Inc. (NASDAQ:MNTX), a leading international provider of cranes and specialized industrial equipment, today announced third quarter 2020 results. Net revenues from continuing operations for the third quarter were
Financial Highlights:
- Net revenues were
$36.5 million , a decline of1.7% compared to the prior quarter of 2020 - Gross margin improved 340 Basis Points to
18.3% , compared to the prior quarter of 2020 - SG&A declined
$0.3 million compared to Q2 and$1.3 million compared to third quarter 2019 - Net Loss was
$1.4 million , or$(0.07) per share or$1.0 million , or$(0.05) as adjusted* compared to a loss of$2.4 million , or$(0.12) or$(0.08) as adjusted in the prior quarter of 2020 - Adjusted EBITDA* had a positive swing of
$1.3 million to$0.9 million for the quarter, as compared to the prior quarter of 2020 - Realized quarterly cost savings of
$1.1 million due to restructuring and other cost savings measures implemented in 2020 - Reduced net debt by
$6.5 million from year end to$34.7 million as of September 30, 2020 through the payoff of PM term and unsecured debt - Available liquidity through cash and credit lines of approximately
$41 million as of September 30, 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.
Operating Highlights:
- Backlog was
$56.6 million as of October 31, 2020, an improvement of28% since June 30, 2020 - PM backlog at
$29.1 million , as of October 31, 2020, represents over50% of total backlog - The Company secured a purchase order from an international military entity for approximately
$2.5 million with an optional$2.3 million in additional deliveries - The Company was awarded a contract by Collè Rental & Sales, of Sittard, Netherlands, for Valla electric cranes, valued at approximately
$2.5 million - Completed the sale of Manitex-Sabre for cash proceeds of
$1.6 million - Subsequent to the quarter-end, announced the appointment of Joe Doolan, CFO
Steve Filipov, CEO of Manitex International commented," Our third quarter results were in line with our expectations, with a significant improvement in profitability from the second quarter of 2020. We reported a
"While we were impacted by the seasonal 2-week summer shut down in our European operations and sporadic furloughs at our Georgetown facility, we continued to take steps to protect our employees, shareholders, and adapt to a challenging environment. Our backlog has started to grow again and is up nearly
"We have also seen a positive trend in demand for our zero-emission Valla crane products and signed a significant order with a rental customer in Europe. We are continuing to invest in new products and technologies in this business as we see the demand coming from our customers to move to more environmentally friendly products."
"We executed a restructuring plan at our Georgetown and Winona facilities in July, and while the market for boom trucks in trending down approximately
"Finally, we continue to focus on improving our balance sheet and have generated
Outlook:
"The reality of COVID-19 and other macro economic uncertainties, makes it difficult to give more substantial guidance, but we remain optimistic about fourth quarter performance. Given the uptick in orders and backlog, we expect our revenues to trend higher to a range of
Conference Call:
Management will host a conference call at 8:30 AM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 800-952-1438 if calling within the United States or 312-429-0433 if calling internationally. A replay will be available until November 12, 2020, 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 21971355 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, 2020 and 2019, unless otherwise indicated. A reconciliation of Adjusted GAAP financial measures for the three and nine month periods ended September 30, 2020 and 2019 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, 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
sfilipov@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 share data)
| September 30, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 23,331 | $ | 23,327 | ||||
Cash - restricted | 231 | 217 | ||||||
Trade receivables (net) | 29,916 | 34,725 | ||||||
Other receivables | 997 | 1,033 | ||||||
Inventory (net) | 58,641 | 57,818 | ||||||
Prepaid expense and other current assets | 4,392 | 4,706 | ||||||
Current assets of discontinued operations | 180 | 1,591 | ||||||
Total current assets | 117,688 | 123,417 | ||||||
Total fixed assets, net of accumulated depreciation of at September 30, 2020 and December 31, 2019, respectively | 18,531 | 19,035 | ||||||
Operating lease assets | 2,160 | 2,174 | ||||||
Intangible assets (net) | 15,752 | 17,032 | ||||||
Goodwill | 26,699 | 32,635 | ||||||
Other long-term assets | 168 | 281 | ||||||
Deferred tax asset | 415 | 441 | ||||||
Long-term assets of discontinued operations | - | 413 | ||||||
Total assets | $ | 181,413 | $ | 195,428 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Notes payable | $ | 17,832 | $ | 18,212 | ||||
Convertible note - related party (net) | 7,455 | 7,323 | ||||||
Convertible note (net) | 7,976 | - | ||||||
Current portion of finance lease obligations | 352 | 476 | ||||||
Current portion of operating lease liabilities | 761 | 813 | ||||||
Accounts payable | 29,337 | 29,593 | ||||||
Accounts payable related parties | 33 | 228 | ||||||
Accrued expenses | 9,265 | 9,138 | ||||||
Customer deposits | 1,669 | 1,493 | ||||||
Deferred income liability | 3,747 | - | ||||||
Current liabilities of discontinued operations | 215 | 800 | ||||||
Total current liabilities | 78,642 | 68,076 | ||||||
Long-term liabilities | ||||||||
Revolving term credit facilities | 5,000 | - | ||||||
Notes payable (net) | 15,368 | 19,446 | ||||||
Finance lease obligations (net of current portion) | 4,311 | 4,584 | ||||||
Non-current operating lease liabilities | 1,398 | 1,361 | ||||||
Convertible note (net) | - | 14,760 | ||||||
Deferred gain on sale of property | 607 | 667 | ||||||
Deferred tax liability | 959 | 721 | ||||||
Other long-term liabilities | 5,795 | 5,913 | ||||||
Long-term liabilities of discontinued operations | - | 350 | ||||||
Total long-term liabilities | 33,438 | 47,802 | ||||||
Total liabilities | 112,080 | 115,878 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at September 30, 2020 and December 31, 2019 | - | - | ||||||
Common Stock-no par value 25,000,000 shares authorized, 19,794,316 and 19,713,185 shares issued and outstanding at September 30, 2020, and December 31, 2019, respectively | 131,276 | 130,710 | ||||||
Paid in capital | 2,870 | 2,793 | ||||||
Retained deficit | (61,977 | ) | (50,253 | ) | ||||
Accumulated other comprehensive loss | (2,836 | ) | (3,700 | ) | ||||
Total equity | 69,333 | 79,550 | ||||||
Total liabilities and equity | $ | 181,413 | $ | 195,428 | ||||
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenues | $ | 36,466 | $ | 50,599 | $ | 122,314 | $ | 162,403 | ||||||||
Cost of sales | 29,807 | 42,164 | 99,877 | 131,478 | ||||||||||||
Gross profit | 6,659 | 8,435 | 22,437 | 30,925 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development costs | 788 | 497 | 2,246 | 1,890 | ||||||||||||
Selling, general and administrative expenses | 6,462 | 7,808 | 21,226 | 26,485 | ||||||||||||
Impairment of intangibles | - | 1,539 | 6,722 | 1,539 | ||||||||||||
Total operating expenses | 7,250 | 9,844 | 30,194 | 29,914 | ||||||||||||
Operating (loss) income | (591 | ) | (1,409 | ) | (7,757 | ) | 1,011 | |||||||||
Other (expense) income | ||||||||||||||||
Interest expense | (825 | ) | (1,121 | ) | (2,833 | ) | (3,298 | ) | ||||||||
Interest income | 6 | 41 | 80 | 161 | ||||||||||||
Gain on extinguishment of debt | 595 | - | 595 | - | ||||||||||||
Change in fair value of securities held | - | 216 | - | 5,454 | ||||||||||||
Foreign currency transaction loss | (229 | ) | (307 | ) | (671 | ) | (718 | ) | ||||||||
Other expense | (341 | ) | (11 | ) | (497 | ) | (22 | ) | ||||||||
Total other (expense) income | (794 | ) | (1,182 | ) | (3,326 | ) | 1,577 | |||||||||
(Loss) income before income taxes from continuing operations | (1,385 | ) | (2,591 | ) | (11,083 | ) | 2,588 | |||||||||
Income tax expense (benefit) from continuing operations | 62 | 1,874 | (191 | ) | 2,449 | |||||||||||
Net (loss) income from continuing operations | (1,447 | ) | (4,465 | ) | (10,892 | ) | 139 | |||||||||
Discontinued operations | ||||||||||||||||
Loss from operations of discontinued operations | (120 | ) | (7,302 | ) | (831 | ) | (7,805 | ) | ||||||||
Income tax expense | 4 | 84 | 1 | 39 | ||||||||||||
Loss from discontinued operations | (124 | ) | (7,386 | ) | (832 | ) | (7,844 | ) | ||||||||
Net loss | (1,571 | ) | (11,851 | ) | (11,724 | ) | (7,705 | ) | ||||||||
(Loss) earnings Per Share | ||||||||||||||||
Basic | ||||||||||||||||
(Loss) earnings from continuing operations | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.55 | ) | $ | 0.01 | |||||
Loss from discontinued operations | $ | (0.01 | ) | $ | (0.38 | ) | $ | (0.04 | ) | $ | (0.40 | ) | ||||
Net loss | $ | (0.08 | ) | $ | (0.60 | ) | $ | (0.59 | ) | $ | (0.39 | ) | ||||
Diluted | ||||||||||||||||
(Loss) earnings from continuing operations | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.55 | ) | $ | 0.01 | |||||
Loss from discontinued operations | $ | (0.01 | ) | $ | (0.38 | ) | $ | (0.04 | ) | $ | (0.40 | ) | ||||
Net loss | $ | (0.08 | ) | $ | (0.60 | ) | $ | (0.59 | ) | $ | (0.39 | ) | ||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 19,778,225 | 19,690,233 | 19,758,241 | 19,684,521 | ||||||||||||
Diluted | 19,778,225 | 19,690,233 | 19,758,241 | 19,715,072 | ||||||||||||
Note: Results shown are from Continuing Operations
Net Sales and Gross Margin %
| Three Months Ended | ||||||||||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
| As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||||||||
Net sales | $ | 36,466 | $ | 36,466 | $ | 37,115 | $ | 37,115 | $ | 50,599 | $ | 50,599 | ||||||||||||
% change Vs Q2 2020 | -1.7 | % | -1.7 | % | ||||||||||||||||||||
% change Vs Q3 2019 | -27.9 | % | -27.9 | % | ||||||||||||||||||||
% change Vs Q3 2019 without FX impact | -29.9 | % | ||||||||||||||||||||||
Gross margin % of net sales | 18.3 | % | 18.4 | % | 14.9 | % | 15.6 | % | 16.7 | % | 18.3 | % | ||||||||||||
Gross margin % of net sales (value-add) | 19.8 | % | 16.3 | % | 20.1 | % | ||||||||||||||||||
| Nine Months Ended | ||||||||||||||||
| September 30, 2020 | September 30, 2019 | |||||||||||||||
| As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||
Net sales | $ | 122,314 | $ | 122,314 | $ | 162,403 | $ | 162,403 | ||||||||
% change Vs prior year | -24.7 | % | -24.7 | % | ||||||||||||
% change Vs prior year without FX impact | -24.7 | % | ||||||||||||||
Gross margin % of net sales | 18.3 | % | 18.6 | % | 19.0 | % | 20.2 | % | ||||||||
Gross margin % of net sales (value-add) | 19.8 | % | 21.7 | % | ||||||||||||
Reconciliation of GAAP Operating Income (Loss) to Adjusted EBITDA (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
Operating (loss) income | $ | (591 | ) | $ | (1,965 | ) | $ | (1,409 | ) | $ | (7,757 | ) | $ | 1,011 | ||||||
Adjustments related to trade show, customer declared bankruptcy, discontinued model, goodwill and intangible asset impairment, plant closing, restatement, restricted stock, restructuring and other expenses | 483 | 574 | 2,839 | 8,725 | 6,014 | |||||||||||||||
Adjusted operating (loss) income | (108 | ) | (1,391 | ) | 1,430 | 968 | 7,025 | |||||||||||||
Depreciation and amortization | 1,052 | 1,055 | 1,073 | 3,145 | 3,237 | |||||||||||||||
Adjusted EBITDA | 944 | $ | (336) | $ | 2,503 | $ | 4,113 | $ | 10,262 | |||||||||||
Adjusted EBITDA % to sales | 2.6 | % | -0.9 | % | 4.9 | % | 3.4 | % | 6.3 | % | ||||||||||
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss) (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
Net (loss) income | $ | (1,447 | ) | $ | (2,401 | ) | $ | (4,465 | ) | $ | (10,892 | ) | $ | 139 | ||||||
Adjustments related to change in fair value of securities, trade show, discontinued model, customer declared bankruptcy, foreign exchange, goodwill and intangible asset impairment, plant closing, restatement, restricted stock, restructuring, and other expenses (including net tax impact) | 437 | 736 | 5,248 | 9,820 | 3,378 | |||||||||||||||
Adjusted net (loss) income | $ | (1,010 | ) | $ | (1,665 | ) | $ | 783 | $ | (1,072 | ) | $ | 3,517 | |||||||
Weighted diluted shares outstanding | 19,778,225 | 19,762,726 | 19,690,233 | 19,758,241 | 19,715,072 | |||||||||||||||
Diluted (loss) earnings per shares as reported | $ | (0.07 | ) | $ | (0.12 | ) | $ | (0.23 | ) | $ | (0.55 | ) | $ | 0.01 | ||||||
Total EPS effect | $ | 0.02 | $ | 0.04 | $ | 0.27 | $ | 0.50 | $ | 0.17 | ||||||||||
Adjusted diluted (loss) earnings per share | $ | (0.05 | ) | $ | (0.08 | ) | $ | 0.04 | $ | (0.05 | ) | $ | 0.18 | |||||||
Change in Fair Market Value of Securities, Discontinued Model, Foreign Exchange, Goodwill and Intangible Asset Impairment, Restatement, Restricted Stock, Restructuring, Plant Closing, Trade Show and other Expenses
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
Adjustments | September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
Restricted stock | $ | 233 | $ | 203 | $ | 148 | $ | 658 | 448 | |||||||||||
Other expenses | 95 | 43 | 366 | 246 | 1,008 | |||||||||||||||
Legal settlement | 85 | - | - | 85 | 67 | |||||||||||||||
Restructuring | 42 | 35 | 99 | 78 | 1,204 | |||||||||||||||
Covid-19 related expense | 28 | 111 | - | 139 | $ | 0 | ||||||||||||||
Customer declared bankruptcy - bad debt | - | - | 140 | - | 424 | |||||||||||||||
Discontinued model | - | 124 | 446 | 193 | 751 | |||||||||||||||
Goodwill and intangible asset impairment | - | - | 1,539 | 6,722 | 1,539 | |||||||||||||||
Plant closing | - | - | - | - | 44 | |||||||||||||||
Restatement expenses | - | - | 22 | - | 169 | |||||||||||||||
Trade show | - | 58 | 79 | 604 | 360 | |||||||||||||||
Total adjustments to operating income (loss) | $ | 483 | $ | 574 | $ | 2,839 | $ | 8,725 | $ | 6,014 | ||||||||||
Change in fair market value of securities | - | - | (216 | ) | - | (5,454 | ) | |||||||||||||
Foreign exchange | 229 | 24 | 307 | 671 | 718 | |||||||||||||||
Other (income) expenses | (245 | ) | 162 | - | (83 | ) | - | |||||||||||||
Total pre-tax adjustments | $ | 467 | $ | 760 | $ | 2,930 | $ | 9,313 | $ | 1,278 | ||||||||||
Net tax impact (including discrete items) | (30 | ) | (24 | ) | 2,318 | 507 | 2,100 | |||||||||||||
Total adjustments | $ | 437 | $ | 736 | $ | 5,248 | $ | 9,820 | 3,378 | |||||||||||
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.
| Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||||||||||
Backlog from continuing operations | $ | 50,541 | $ | 44,272 | $ | 57,045 | $ | 65,263 | $ | 56,207 | ||||||||||
Change Versus Current Period | 14.2 | % | -11.4 | % | -22.6 | % | -10.1 | % | ||||||||||||
Note: Backlog was
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.
| September 30, 2020 | December 31, 2019 | |||||||
Total cash & cash equivalents | $ | 23,562 | $ | 23,544 | ||||
Notes payable - short term | $ | 17,832 | $ | 18,212 | ||||
Current portion of finance leases | 352 | 476 | ||||||
Convertible notes | 15,431 | 22,083 | ||||||
Notes payable - long term | 15,368 | 19,446 | ||||||
Finance lease obligations | 4,311 | 4,584 | ||||||
Revolver | 5,000 | - | ||||||
Total debt | $ | 58,294 | $ | 64,801 | ||||
Net debt | $ | 34,732 | $ | 41,257 | ||||
SOURCE: Manitex International, Inc.
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https://www.accesswire.com/614496/Manitex-International-Inc-Reports-Third-Quarter-2020-Results
FAQ
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