Manitex International Reports First Quarter 2024 Results

Rhea-AI Summary

Manitex International, Inc. (Nasdaq: MNTX) reported strong first quarter 2024 results, with net revenue of $73.3 million, a +8.1% increase from the prior year. The company's gross profit was $16.9 million (+17.2%) with a gross margin of 23.0% (+179 basis points). Adjusted EBITDA was $8.4 million (+33.5%), and the company reiterated its full-year 2024 financial guidance. Manitex focuses on operational excellence and cost reductions, enhancing profitability and customer satisfaction.

Positive

• Net revenue increased by 8.1% year-over-year, reaching $73.3 million.

• Gross profit saw a significant increase of 17.2% to $16.9 million, with a gross margin of 23.0%.

• Adjusted EBITDA grew by 33.5% to $8.4 million, resulting in an improved margin of 11.4%.

• Progress under the Elevating Excellence strategy led to strong growth in North America and cost reductions.

• Commercial growth initiatives included new product launches and increased market share gains.

Negative

• Total backlog decreased to $154.2 million from $170.3 million in the previous quarter.

• Net leverage was 2.7x at the end of the first quarter 2024, down from 2.9x in the fourth quarter 2023.

Insights

Financial Analyst

Manitex International's reported 8.1% increase in net revenue is a promising sign of growth, particularly given the current economic climate. This improvement appears to be driven by a combination of factors such as operational efficiency, supply chain management and product diversification. The notable 17.2% growth in gross profit and expansion in gross margin by 179 basis points suggest that Manitex is not only increasing sales but doing so in a cost-effective manner. Additionally, operating income has nearly doubled, which indicates effective control over operating expenses. All these factors combined with a net leverage decrease to 2.7x show a strengthened balance sheet. However, a backlog decrease to $154.2 million from $170.3 million at the end of the previous quarter could be a concern, signaling a potential slowdown in future revenue unless addressed. For investors, these results seem to suggest a company on an upward trajectory with improved profitability and financial health, which could be attractive for long-term growth, despite potential backlog-related challenges.

Market Research Analyst

The positive reception of Manitex's new product, the PM 70.5 crane, is a strong indicator of the company's understanding of market needs and innovation capabilities. The focus on North American market expansion through new product lines and enhanced dealer partnerships could lead to increased market share and greater revenue streams. Manitex's strategic focus on operational excellence and the reported improvements in production efficiencies may further enhance its competitive edge. However, it is important to monitor how these strategies will fare against competitors and overall market conditions. The commitment to a returns-focused capital allocation strategy and debt reduction presents a fiscally responsible approach that may reassure investors of the company's commitment to sustainable growth and financial stability.

Industrial Analyst

The expansion into the Lubbock market and the introduction of a new rental fleet are key strategic moves for Manitex's Rental Equipment Segment. These initiatives, coupled with pricing gains, have led to a 9.2% revenue increase in that segment. This suggests a robust demand in the equipment rental market and a keen adaptability to market opportunities by Manitex. The company's emphasis on optimized product mix and increased manufacturing throughput signifies a tailored response to industry demands for specialized industrial equipment. For investors in the industrial sector, Manitex's strategic direction and operational enhancements could signify an opportunity for growth, especially in the infrastructure, transmission, distribution and mining markets which are currently seen as favorable.

BRIDGEVIEW, Ill.--(BUSINESS WIRE)-- Manitex International, Inc. (Nasdaq: MNTX) ("Manitex" or the "Company"), a leading international provider of truck cranes, specialized industrial equipment, and construction equipment rental solutions to infrastructure and construction markets, today reported financial results for the three months ended March 31, 2024.

FIRST QUARTER 2024 RESULTS
(all comparisons versus the prior year period unless otherwise noted)

• Net revenue of $73.3 million, +8.1%
• Gross profit of $16.9 million, +17.2%; gross margin of 23.0%, +179 basis points
• Net Income of $2.3 million; Adjusted Net Income of $3.4 million, or $0.17 per diluted share
• Adjusted EBITDA of $8.4 million, +33.5%; Adjusted EBITDA margin of 11.4%, +218 basis points
• Net leverage of 2.7x as of March 31, 2024
• Reiterated full-year 2024 financial guidance

MANAGEMENT COMMENTARY

“We delivered a strong first quarter performance, highlighted by 8% year-over-year organic revenue growth and strong margin realization, demonstrating our continued progress under our value creation roadmap detailed within our Elevating Excellence strategy,” stated Michael Coffey, Chief Executive Officer of Manitex. “Our first quarter performance was driven by a combination of strong growth in North America, together with continued cost reductions and process improvements, culminating in more than 33% year-over-year growth in first quarter Adjusted EBITDA.”

“We continue to make progress on our commercial growth initiatives, highlighted by increasing adoption of recent new product launches, deeper partnerships with our dealer network, and increased market share gains,” noted Coffey. “We saw strong product adoption from the recently launched PM 70.5 articulated truck-mounted crane. We expect momentum to build through the year for our latest offering from PM Group, and we look forward to launching this innovative product to the North American market later this year. This is the first of several new product offerings from PM Group that will be integral to us expanding our distribution of PM Group products in North America.”

“Our strategic focus on operational excellence remains a central pillar of our value creation strategy,” continued Coffey. “During the first quarter, we made further progress on process enhancements to our manufacturing facilities that resulted in improved production efficiencies and cost savings. In addition, we’ve enhanced our procurement and supply chain capabilities, adding several new suppliers, resulting in meaningful cost reductions. These actions, together with our focus on a higher-value mix of integrated products and solutions, contributed to an Adjusted EBITDA margin of 11.4% in the first quarter, an improvement of nearly 220 basis points from the prior-year period.”

“Since launching Elevating Excellence last year, we’ve continued to improve our production velocity and supply chain optionality,” continued Coffey. "In combination, these actions have reduced customer lead times, enhanced our profitability, and increased customer satisfaction. We ended the first quarter with a backlog of nearly $155 million.”

“We remain committed to a disciplined, returns-focused capital allocation strategy,” stated Joseph Doolan, Chief Financial Officer of Manitex. “As we move through 2024, we expect a decline in working capital from current levels, which is expected to contribute to improved free cash conversion. We intend to direct free cash generated by our business toward debt reduction, which remains our leading near-term capital allocation priority. We finished the first quarter with a ratio of net debt to trailing twelve-month adjusted EBITDA of 2.7x, down from 2.9x at the end of 2023, and nearly $30 million of cash and availability under our credit facilities to support the profitable growth of our business.”

"Entering the second quarter, we continue to execute at a high level, building upon the progress we’ve made under Elevating Excellence,” noted Coffey. “Our strong backlog, coupled with favorable conditions within core infrastructure, transmission & distribution and mining markets, position us for another year of profitable growth, leading us to reiterate our full-year 2024 financial guidance.”

FIRST QUARTER 2024 PERFORMANCE

Manitex reported net revenue of $73.3 million for the first quarter 2024, up 8.1% from net revenue of $67.9 million for the same period last year owing to solid growth in both the Lifting Equipment and Rental segments.

Lifting Equipment Segment revenue was $66.0 million during the first quarter 2024, an increase of 7.9%, versus the prior-year period. The revenue increase was a result of the ongoing improvements in manufacturing throughput, particularly in the Manitex business.

Rental Equipment Segment revenue was $7.4 million in the first quarter 2024, an increase of 9.2% versus the prior year, driven by strong end-market demand, as well as contribution from the Lubbock, Texas location that opened in March 2023. The Rabern business benefitted from the deployment of new rental fleet, pricing gains, and expansion into the Lubbock market.

Total gross profit was $16.9 million in the first quarter, an increase of 17.2% from $14.4 million in the prior-year period due to increased manufacturing throughput, lower material costs driven by supply chain initiatives, product mix optimization and more favorable pricing. As a result of these factors, gross profit margin increased 179 basis points to 23.0% during the first quarter 2024.

SG&A expense was $11.1 million for the first quarter, essentially unchanged from $11.0 million for the comparable period last year. R&D costs of $0.9 million were up modestly from $0.8 million from last year.

Operating income was $4.9 million for the first quarter 2024, compared to $2.6 million for the same period last year. First quarter operating margin was 6.7%, an improvement from 3.8% in the prior year period. The year-over-year improvement in operating income and operating margin was driven by the solid gross margin performance combined with operating expense leverage.

The Company delivered net income of $2.3 million, or $0.11 per diluted share, for the first quarter 2024, compared to a net income of less than $0.1 million, or $0.00 per diluted share, for the same period last year.

Adjusted EBITDA was $8.4 million for the first quarter 2024, or 11.4% of sales, up 33.5% from adjusted EBITDA of $6.3 million, or 9.3% of sales, for the same period last year. See Non-GAAP reconciliations in the appendix of this release.

As of March 31, 2024, total backlog was $154.2 million, down from $170.3 million at the end of the fourth quarter 2023.

BALANCE SHEET AND LIQUIDITY

As of March 31, 2024, total debt was $91.4 million. Cash and cash equivalents as of March 31, 2024, were $5.1 million, resulting in net debt of $86.4 million. Net leverage was 2.7x at the end of the first quarter 2024, down from 2.9x at the end of fourth quarter 2023. As of March 31, 2024, Manitex had total cash and availability of approximately $30 million.

2024 FINANCIAL GUIDANCE

The following forward-looking guidance reflects the management’s current expectations and beliefs as of May 2, 2024, and is subject to change.

	Full-Year		Full-Year
	2023 Actual		2024
Total Revenue ($MM)	$291.4		$300 to $310
Total Adjusted EBITDA ($MM)	$29.6		$30 to $34
Total Adjusted EBITDA Margin	10.1%		10.5%*

*Assumes mid-point of the guidance range.

FIRST QUARTER 2024 RESULTS CONFERENCE CALL

Manitex will host a conference call today at 9:00 AM ET to discuss the Company’s first quarter 2024 results.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Manitex website at https://www.manitexinternational.com/eventspresentations.aspx, and a replay of the webcast will be available at the same time shortly after the webcast is complete.

To participate in the live teleconference:

Domestic Live: (800) 717-1738
International Live: (646) 307-1865

To listen to a replay of the teleconference, which will be available through May 16, 2024:

Domestic Replay: (844) 512-2921
International Replay: (412) 317-6671
Passcode: 1155742

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 condensed 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 expenditures 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. All per share amounts are on a fully diluted basis. The quarterly amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of the dates indicated.

ABOUT MANITEX INTERNATIONAL

Manitex International is a leading provider of mobile truck cranes, industrial lifting solutions, aerial work platforms, construction equipment and rental solutions that serve general construction, crane companies, and heavy industry. The company engineers and manufactures its products in North America and Europe, distributing through independent dealers worldwide. Our brands include Manitex, PM, 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.

MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited)
		March 31, 2024				December 31, 2023
ASSETS
Current assets
Cash		$	4,847			$	9,269
Cash – restricted			207				212
Trade receivables (net)			50,423				49,118
Other receivables			1,931				553
Inventory (net)			83,510				82,337
Prepaid expenses and other current assets			4,144				4,084
Total current assets			145,062				145,573
Total fixed assets, net of accumulated depreciation of $31,339 and $29,751 at March 31, 2024 and December 31, 2023, respectively			51,594				49,560
Operating lease assets			7,829				7,416
Intangible assets (net)			11,323				12,225
Goodwill			36,968				37,354
Deferred tax assets			3,469				3,603
Total assets		$	256,245			$	255,731
LIABILITIES AND EQUITY
Current liabilities
Accounts payable		$	50,753			$	47,644
Accrued expenses			14,095				14,503
Related party payables (net)			7				27
Notes payable (net)			22,658				25,528
Current portion of finance lease obligations			632				605
Current portion of operating lease obligations			2,081				2,100
Customer deposits			2,133				2,384
Total current liabilities			92,359				92,791
Long-term liabilities
Revolving term credit facilities (net)			48,531				47,629
Notes payable (net)			17,004				18,401
Finance lease obligations (net of current portion)			2,609				2,777
Operating lease obligations (net of current portion)			5,748				5,315
Deferred tax liability			4,291				4,145
Other long-term liabilities			4,211				4,989
Total long-term liabilities			82,394				83,256
Total liabilities			174,753				176,047
Commitments and contingencies
Equity
Preferred stock—Authorized 150,000 shares, no shares issued or outstanding at December 31, 2023 and December 31, 2022			—				—
Common stock—no par value 25,000,000 shares authorized, 20,316,054 and 20,258,194 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively			134,700				134,328
Additional paid-in capital			5,645				5,440
Retained deficit			(63,699	)			(65,982	)
Accumulated other comprehensive loss			(5,369	)			(4,169	)
Equity attributable to shareholders of Manitex International			71,277				69,617
Equity attributed to noncontrolling interest			10,215				10,067
Total equity			81,492				79,684
Total liabilities and equity		$	256,245			$	255,731

MANITEX INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share amounts) (Unaudited)
		Three Months Ended March 31,
		2024				2023
Net revenues		$	73,343			$	67,871
Cost of sales			56,460				53,461
Gross profit			16,883				14,410
Operating expenses
Research and development costs			854				814
Selling, general and administrative expenses			11,119				11,031
Total operating expenses			11,973				11,845
Operating income			4,910				2,565
Other income (expense)
Interest expense			(1,872	)			(1,765	)
Interest income			79				-
Foreign currency transaction loss			(476	)			(55	)
Other income (expense)			34				(758	)
Total other expense			(2,235	)			(2,578	)
Income (loss) before income taxes			2,675				(13	)
Income tax expense			244				13
Net income (loss)			2,431				(26	)
Net income (loss) attributable to noncontrolling interest			148				(79	)
Net income attributable to shareholders of Manitex International, Inc.		$	2,283			$	53
Income per share
Basic		$	0.11			$	0.00
Diluted		$	0.11			$	0.00
Weighted average common shares outstanding
Basic			20,284,920				20,122,054
Diluted			20,363,642				20,122,054

Net Sales and Gross Margin
	Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
	As Reported			As Adjusted			As Reported			As Adjusted			As Reported			As Adjusted
Net sales	$	73,343		$	73,343		$	78,653		$	78,653		$	67,871		$	67,871
% change Vs Q4 2023		(6.8%)			(6.8%)
% change Vs Q1 2023		8.1%			8.1%
Gross margin		16,883			16,883			16,422			16,422			14,410			14,257
Gross margin % of net sales		23.0%			23.0%			20.9%			20.9%			21.2%			21.0%

Backlog
				Mar 31, 2024		Dec 31, 2023		Sept 30, 2023		June 30, 2023		Mar 31, 2023
Backlog from continuing operations				154,182		170,286		196,872		223,236		238,096
Change Versus Current Period						(9.5%)		(21.7%)		(30.9%)		(35.2%)

Backlog is defined as orders for equipment which have not yet shipped as well as orders by foreign subsidiaries for international deliveries. 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.

Reconciliation of Net Income Attributable to Shareholders of Manitex International, Inc. to Adjusted Net Income
	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023
Net income attributable to shareholders of Manitex International, Inc.	$	2,283		$	5,199		$	53
Adjustments, including net tax impact		1,127			1,116			1,436
Adjusted net income attributable to shareholders of Manitex International, Inc.	$	3,410		$	6,315		$	1,489
Weighted diluted shares outstanding		20,363,642			20,306,534			20,122,054
Diluted earnings per share as reported	$	0.11		$	0.26		$	0.00
Total EPS effect	$	0.06		$	0.05		$	0.07
Adjusted diluted earnings per share	$	0.17		$	0.31		$	0.07

Reconciliation of Net Income to Adjusted EBITDA
	Three Months Ended
	March 31, 2024				December 31, 2023				March 31, 2023
Net Income	$	2,431			$	5,457			$	(26	)
Interest expense		1,793				2,046				1,765
Tax expense		244				(3,357	)			13
Depreciation and amortization expense		2,794				2,760				3,052
EBITDA	$	7,262			$	6,906			$	4,804
Adjustments:
Stock compensation	$	633			$	463			$	766
FX		476				883				55
Severance / restructuring costs		(51	)			-				-
Pension settlement		-				(230	)			487
Litigation / legal settlement		-				-				324
Other		69				-				(153	)
Total Adjustments	$	1,127			$	1,116			$	1,479
Adjusted EBITDA	$	8,389			$	8,022			$	6,283
Adjusted EBITDA as % of sales		11.4	%			10.2	%			9.3	%

Net Debt
	March 31, 2024			December 31, 2023			March 31, 2023
Total cash & cash equivalents	$	5,051		$	9,481		$	10,135
Notes payable - short term	$	22,658		$	25,528		$	21,237
Current portion of finance leases		632			605			532
Notes payable - long term		17,004			18,401			21,970
Finance lease obligations - LT		2,609			2,777			3,239
Revolver, net		48,531			47,629			49,190
Total debt	$	91,434		$	94,940		$	96,168
Net debt	$	86,383		$	85,459		$	86,033

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502144430/en/

IR CONTACT

Paul Bartolai or Noel Ryan

MNTX@val-adv.com

Source: Manitex International, Inc.

FAQ

What were Manitex International's net revenue results for the first quarter of 2024?

Manitex International reported net revenue of $73.3 million for the first quarter 2024, representing an 8.1% increase from the prior year.

What was Manitex International's gross profit in the first quarter of 2024?

Manitex International's gross profit for the first quarter of 2024 was $16.9 million, a significant increase of 17.2%.

What was the Adjusted EBITDA for Manitex International in the first quarter of 2024?

Manitex International's Adjusted EBITDA was $8.4 million in the first quarter of 2024, reflecting a growth of 33.5%.

What was the total backlog for Manitex International as of March 31, 2024?

As of March 31, 2024, Manitex International's total backlog was $154.2 million, down from $170.3 million in the previous quarter.

What was Manitex International's net leverage at the end of the first quarter of 2024?

Manitex International's net leverage was 2.7x at the end of the first quarter 2024, showing a decrease from 2.9x in the fourth quarter 2023.