Manitex International Reports First Quarter 2022 Results

Rhea-AI Summary

Manitex International reported a strong first quarter of 2022 with net sales of $60.4 million, up 28% from the previous year. The company achieved net income of $0.2 million, reversing a loss of $0.8 million from Q1 2021. Adjusted EBITDA rose to $2.7 million, representing 4.4% of net sales. A notable backlog of $206 million reflects a 145% increase year-over-year. The recent acquisition of Rabern Rentals is expected to contribute positively to EBITDA starting Q2 2022.

Positive

• Net sales increased by 28% to $60.4 million.
• Net income of $0.2 million vs. a loss of $0.8 million year-over-year.
• Adjusted EBITDA increased to $2.7 million, or 4.4% of net sales.
• Backlog reached $206 million, representing a 145% increase since last year.
• Acquisition of Rabern Rentals expected to be accretive to EBITDA in Q2 2022.

Negative

• Net debt increased to $31.5 million from $23.8 million.

BRIDGEVIEW, IL / ACCESSWIRE / May 4, 2022 / Manitex International, Inc. (NASDAQ:MNTX) ("Manitex" or the "Company"), a leading international provider of cranes and specialized industrial equipment, today announced results for the first quarter of 2022.

Q1 Financial Highlights

• Net sales increased 28% to $60.4 million, compared to $47.2 million in the first quarter of 2021;
• Net income of $0.2 million, or $0.01 per diluted share, compared to a loss of $0.8 million, or $(0.04) per diluted share, in the first quarter of 2021;
• Adjusted net income* for the first quarter of 2022 was $0.9 million, or $0.05 per share, compared with a loss of $0.1 million, or $(0.01) per share for the first quarter of 2021;
• Adjusted EBITDA* increased to $2.7 million, or 4.4% of net sales compared to $1.9 million, or 3.9% of net sales in 2021 and compared to $0.3 million, or 1.0% of net sales in the fourth quarter of 2021;
• Backlog of $206 million, as of March 31, 2022, represents a 145% increase since March 31, 2021; the Company's book-to-bill ratio was 1.3:1 for the first quarter of 2022;
• Net debt was $31.5 million compared to $23.8 million at the end of the year; representing a leverage ratio of 3.5 times trailing twelve months Adjusted EBITDA*

Subsequent Items

On April 11, 2022, the company simultaneously announced that Michael Coffey was appointed Chief Executive Officer, the closing of the acquisition of Rabern Rentals, and a new credit facility in the US. Total liquidity was estimated in the range of $35-$40 million at the close of this transaction.

"First quarter results reflect gains in sales, bookings, and a strong backlog that has surpassed $200 million," said Michael Coffey, CEO of Manitex International. "We are pleased with the strong demand for our products, across our product portfolio, both in North America and in Europe, and the backlog indicates that sales will continue to show good momentum throughout the rest of the year."

"Importantly, we continued to implement measures to address inflationary cost and supply chain pressures. These actions delivered improved results and should enable further benefit in the coming quarters. Subsequent to the end of the quarter, we completed the acquisition of Rabern Rentals, and while it will represent just a small portion of our revenues, we do expect it to be accretive to our Adjusted EBITDA, starting in the 2nd quarter. As we noted in our Form 8-k/a filed on April 21, 2022, Rabern Rentals had 2021 revenues of approximately $21 million and EBITDA of approximately $8 million."

"A focus on process efficiency, supply chain optimization and operational excellence will guide us as we battle inflationary and supply chain headwinds, which are impacting many equipment manufacturers at this time. We will be leveraging our global resources, implementing improved production processes and working on numerous initiatives that will translate into improved margins and EBITDA contributions for our business," concluded Coffey.

Financial Results for the First Quarter ended March 31, 2022

Net sales for the first quarter were $60.4 million compared to $47.2 million for the first quarter of 2021, and the Company reported a net income of $0.2 million, or $0.01 per diluted share, compared to a loss of $0.8 million, or $(0.04) per diluted share, in the prior-year period. Adjusted net income* for the first quarter of 2022 was $0.9 million, or $0.05 per share, compared with a loss of $0.1 million, or $(0.01) per share for the first quarter of 2021.

* Adjusted numbers are discussed in greater detail and reconciled under "Non-GAAP Financial Measures and Other Items" below.

Conference Call

Management will host a conference call with an accompanying slide presentation, in the morning Wednesday, May 4, at 11:00 AM ET, 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 and can be accessed by dialing 844-512-2921 or 412-317-6671. Please use passcode 13728733 to access the replay. The call will be broadcast live and archived for 90 days over the internet with accompanying slides, accessible at the Company's website at 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 is included with this press release. 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 the dates 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), 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, Valla, and Rabern Rentals.

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
CoreIR
Peter Seltzberg, Capital Markets and Corporate Advisory
Investor Relations
516-419-9915
peters@coreir.com

MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands, except share and per share data)

		March 31, 2022				December 31, 2021
ASSETS
Current assets
Cash		$	15,524			$	21,359
Cash - restricted			221				222
Trade receivables (net)			35,171				30,515
Other receivables			1,110				2,039
Inventory (net)			68,511				64,965
Prepaid expense and other current assets			3,548				2,436
Assets held for sale			1,069				-
Total current assets			125,154				121,536
Total fixed assets, net of accumulated depreciation of $17,011 and $18,662 at March 31, 2022 and December 31, 2021, respectively			15,235				16,460
Operating lease assets			3,524				3,563
Intangible assets (net)			11,157				11,946
Goodwill			24,629				24,949
Other long-term assets			1,168				1,143
Deferred tax assets			178				178
Total assets		$	181,045			$	179,775
LIABILITIES AND EQUITY
Current liabilities
Accounts payable		$	46,935			$	44,136
Accrued expenses			10,366				10,539
Related party payables (net)			198				203
Notes payable			20,388				18,401
Current portion of finance lease obligations			450				399
Current portion of operating lease obligations			1,112				1,064
Customer deposits			4,677				7,121
Total current liabilities			84,126				81,863
Long-term liabilities
Revolving term credit facilities (net)			12,730				12,717
Notes payable (net)			9,938				10,089
Finance lease obligations (net of current portion)			3,775				3,822
Non-current operating lease obligations			2,413				2,499
Deferred gain on sale of property			487				507
Deferred tax liability			910				1,074
Other long-term liabilities			4,161				4,389
Total long-term liabilities			34,414				35,097
Total liabilities			118,540				116,960
Commitments and contingencies
Equity
Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at March 31, 2022 and December 31, 2021			-				-
Common Stock-no par value 25,000,000 shares authorized, 20,027,814 and 19,940,487 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively			132,803				132,206
Paid-in capital			2,762				3,264
Retained deficit			(68,206	)			(68,436	)
Accumulated other comprehensive loss			(4,854	)			(4,219	)
Total equity			62,505				62,815
Total liabilities and equity		$	181,045			$	179,775

MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for share and per share amounts)

		Three Months Ended March 31,
		2022				2021
Net revenues		$	60,420			$	47,168
Cost of sales			50,295				38,363
Gross profit			10,125				8,805
Operating expenses
Research and development costs			716				785
Selling, general and administrative expenses			8,759				7,744
Total operating expenses			9,475				8,529
Operating income (loss)			650				276
Other income (expense)
Interest expense			(505	)			(525	)
Interest income			2				4
Foreign currency transaction loss			(49	)			(215	)
Other income (expense)			264				(20	)
Total other income (expense)			(288	)			(756	)
Income (loss) before income taxes			362				(480	)
Income tax expense			132				292
Net income (loss)		$	230			$	(772	)
Income (loss) per share
Basic		$	0.01			$	(0.04	)
Diluted		$	0.01			$	(0.04	)
Weighted average common shares outstanding
Basic			19,961,785				19,845,064
Diluted			20,014,180				19,845,064

Net Sales, Gross Margin and Operating Income (Loss)

		Three Months Ended
		March 31, 2022								December 31, 2021								March 31, 2021
		As Reported				As Adjusted				As Reported				As Adjusted				As Reported				As Adjusted
Net sales		$	60,420			$	60,420			$	53,391			$	53,391			$	47,168			$	47,168
% change Vs Q4 2021			13.2	%			13.2	%
% change Vs Q1 2021			28.1	%			28.1	%
Gross margin			10,125				10,125				4,655				7,881				8,805				8,873
Gross margin % of net sales			16.8	%			16.8	%			8.7	%			14.8	%			18.7	%			18.8	%
Operating Income (loss)			650				1,559				(7,114	)			(747	)			276				748

Reconciliation of Net Income (Loss) To Adjusted Net Income (Loss)

		Three Months Ended
		March 31, 2022				December 31, 2021				March 31, 2021
Net income (loss)		$	230			$	(8,065	)		$	(772	)
Adjustments, including net tax impact			713				6,411				664
Adjusted net income (loss)		$	943			$	(1,654	)		$	(108	)
Weighted diluted shares outstanding			20,014,180				19,935,512				19,845,064
Diluted earnings (loss) per share as reported		$	0.01			$	(0.40	)		$	(0.04	)
Total EPS effect		$	0.04			$	0.32			$	0.03
Adjusted diluted earnings (loss) per share		$	0.05			$	(0.08	)		$	(0.01	)

Reconciliation of Net Income (Loss) To Adjusted EBITDA

		Three Months Ended
		March 31, 2022				December 31, 2021				March 31, 2021
Net Income (loss)		$	230			$	(8,065	)		$	(772	)
Interest expense			505				511				521
Tax expense			132				374				292
Depreciation and amortization expense			1,145				1,004				1,130
EBITDA		$	2,012			$	(6,176	)		$	1,171
Adjustments:
Litigation / legal settlement		$	318			$	682			$	90
Rabern transaction costs			314				-				-
Stock compensation			232				240				299
Inventory impairment			-				3,226				-
Impairment of Intangibles			-				2,078				-
FX			49				122				215
Restructuring costs			29				81				68
Valla earnout			(202	)			-				-
Other			(27	)			60				15
Total Adjustments		$	713			$	6,489			$	687
Adjusted EBITDA		$	2,725			$	313			$	1,858
Adjusted EBITDA as % of sales			4.5	%			0.6	%			3.9	%

Backlog

		Mar 31, 2022				Dec 31, 2021				Sept 30, 2021				June 30, 2021				Mar 31, 2021
Backlog from continuing operations			205,682			$	188,981			$	113,584			$	111,170			$	83,793
Change Versus Current Period							8.8	%			81.1	%			85.0	%			145.5	%

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

		March 31, 2022				December 31, 2021				March 31, 2021
Total cash & cash equivalents		$	15,745			$	21,581			$	16,075
Notes payable - short term		$	20,388			$	18,401			$	16,995
Current portion of finance leases			450				399				344
Notes payable - long term			9,939				10,089				13,067
Finance lease obligations - LT			3,775				3,822				4,128
Revolver, net			12,730				12,717				12,644
Total debt		$	47,282			$	45,428			$	47,178
Net debt		$	31,537			$	23,847			$	31,103

Net debt is calculated using the 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.

SOURCE: Manitex International, Inc.

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FAQ

What are Manitex International's Q1 2022 financial results?

Manitex reported Q1 2022 net sales of $60.4 million, a 28% increase, with a net income of $0.2 million.

How much did Manitex's backlog grow in Q1 2022?

The backlog increased by 145% to $206 million as of March 31, 2022.

What is the adjusted EBITDA for Manitex in Q1 2022?

Adjusted EBITDA for Q1 2022 was $2.7 million, or 4.4% of net sales.

What impact will the acquisition of Rabern Rentals have on Manitex?

The acquisition of Rabern Rentals is expected to be accretive to Manitex's adjusted EBITDA starting in the second quarter of 2022.

What was Manitex's net income in the first quarter of 2022?

Manitex's net income in Q1 2022 was $0.2 million, compared to a loss of $0.8 million in Q1 2021.