Manitex International Reports Third Quarter 2024 Results
THIRD QUARTER 2024 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-
Net revenue of
$66.5 million -
Gross profit of
; gross margin of$16.0 million 24.1% -
Net Income of
; Adjusted Net Income of$0.4 million , or$1.8 million per diluted share$0.09 -
Adjusted EBITDA of
; Adjusted EBITDA margin of$8.5 million 12.8% -
On September 12, announced an agreement to be acquired by Tadano, Ltd. (“Tadano”) for
in cash per share$5.80
THIRD QUARTER 2024 PERFORMANCE
Manitex reported net revenue of
Lifting Equipment Segment revenue was
Rental Equipment Segment revenue was
Total gross profit was
SG&A expense was
Operating income was
Net income was
Adjusted EBITDA was
As of September 30, 2024, total backlog was
BALANCE SHEET AND LIQUIDITY
As of September 30, 2024, total debt was
TADANO ACQUISITION
On September 12, 2024, the Company entered into a definitive agreement to be acquired by Tadano, Ltd. (“Tadano”) in an all-cash transaction at an equity value of
Under the terms of the transaction, Manitex shareholders will receive
Given the Company’s pending acquisition by Tadano, Manitex is not hosting a conference call to discuss its third quarter financial results, and the Company is no longer providing financial guidance.
NON-GAAP FINANCIAL MEASURES AND OTHER ITEMS
In this press release, we refer to various non-GAAP (
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
NO OFFER OR SOLICITATION
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities of Manitex or the solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in
ADDITIONAL INFORMATION REGARDING THE MERGER AND WHERE TO FIND IT
This communication relates to the proposed merger involving Manitex, Tadano and Lift SPC Inc. (“Merger Sub”)., whereby Merger Sub shall be merged with and into Manitex (the “proposed merger”), with Manitex as the surviving corporation. The proposed merger will be submitted to the shareholders of Manitex for their consideration at a special meeting of the shareholders. In connection therewith, Manitex intends to file relevant materials with the
This communication may be deemed to be solicitation material in respect of the proposed merger contemplated by the Merger Agreement.
CERTAIN INFORMATION REGARDING PARTICIPANTS IN THE SOLICITATION
Manitex, Tadano and certain of their directors, executive officers and employees may, under the rules of the SEC, be deemed to be participants in the solicitation of proxies in connection with the proposed merger. Information regarding Manitex’s directors and executive officers is contained in Manitex’s definitive proxy statement on Schedule 14A for the 2024 annual meeting of shareholders, filed with the SEC on April 29, 2024, the proxy statement supplement, which was filed with the SEC on June 18, 2024, and Manitex’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024 and in subsequent documents filed with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct or indirect interests, by security holdings or otherwise, will be included in the definitive proxy statement, Schedule 13e-3 and other relevant documents filed with the SEC regarding the proposed merger, if and when they become available. Free copies of these materials may be obtained as described in the preceding paragraph.
FORWARD-LOOKING STATEMENTS
Safe Harbor Statement under the
MANITEX INTERNATIONAL, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
September 30, 2024 |
December 31, 2023 |
|||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash |
$ |
4,246 |
|
$ |
9,269 |
|
||
Cash – restricted |
|
215 |
|
|
212 |
|
||
Trade receivables (net) |
|
47,275 |
|
|
49,118 |
|
||
Other receivables |
|
1,394 |
|
|
553 |
|
||
Inventory (net) |
|
84,180 |
|
|
82,337 |
|
||
Prepaid expenses and other current assets |
|
3,725 |
|
|
4,084 |
|
||
Total current assets |
|
141,035 |
|
|
145,573 |
|
||
Total fixed assets, net of accumulated depreciation of |
|
51,696 |
|
|
49,560 |
|
||
Operating lease assets |
|
7,344 |
|
|
7,416 |
|
||
Intangible assets (net) |
|
9,897 |
|
|
12,225 |
|
||
Goodwill |
|
37,551 |
|
|
37,354 |
|
||
Deferred tax assets |
|
3,358 |
|
|
3,603 |
|
||
Total assets |
$ |
250,881 |
|
$ |
255,731 |
|
||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ |
44,012 |
|
$ |
47,644 |
|
||
Accrued expenses |
|
13,935 |
|
|
14,503 |
|
||
Related party payables (net) |
|
- |
|
|
27 |
|
||
Revolving term credit facilities |
|
1,820 |
|
|
2,185 |
|
||
Notes payable (net) |
|
21,087 |
|
|
23,343 |
|
||
Current portion of finance lease obligations |
|
670 |
|
|
605 |
|
||
Current portion of operating lease obligations |
|
2,166 |
|
|
2,100 |
|
||
Customer deposits |
|
2,155 |
|
|
2,384 |
|
||
Total current liabilities |
|
85,845 |
|
|
92,791 |
|
||
Long-term liabilities |
||||||||
Revolving term credit facilities (net) |
|
48,625 |
|
|
49,781 |
|
||
Notes payable (net) |
|
13,727 |
|
|
16,249 |
|
||
Finance lease obligations (net of current portion) |
|
2,272 |
|
|
2,777 |
|
||
Operating lease obligations (net of current portion) |
|
5,177 |
|
|
5,315 |
|
||
Deferred tax liability |
|
5,505 |
|
|
4,145 |
|
||
Other long-term liabilities |
|
3,473 |
|
|
4,989 |
|
||
Total long-term liabilities |
|
78,779 |
|
|
83,256 |
|
||
Total liabilities |
|
164,624 |
|
|
176,047 |
|
||
Commitments and contingencies |
||||||||
Equity |
||||||||
Preferred stock—Authorized 150,000 shares, no shares issued or outstanding at
|
|
— |
|
|
— |
|
||
Common stock—no par value 25,000,000 shares authorized 20,397,358 and 20,258,194
|
|
135,274 |
|
|
134,328 |
|
||
Additional paid-in capital |
|
5,670 |
|
|
5,440 |
|
||
Retained deficit |
|
(61,782 |
) |
|
(65,982 |
) |
||
Accumulated other comprehensive loss |
|
(3,675 |
) |
|
(4,169 |
) |
||
Equity attributable to shareholders of Manitex International |
|
75,487 |
|
|
69,617 |
|
||
Equity attributed to noncontrolling interest |
|
10,770 |
|
|
10,067 |
|
||
Total equity |
|
86,257 |
|
|
79,684 |
|
||
Total liabilities and equity |
$ |
250,881 |
|
$ |
255,731 |
MANITEX INTERNATIONAL, INC. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands, except for share and per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net revenues |
$ |
66,544 |
|
$ |
71,331 |
|
$ |
216,122 |
|
$ |
212,736 |
|
||||
Cost of sales |
|
50,519 |
|
|
54,746 |
|
|
166,053 |
|
|
166,806 |
|
||||
Gross profit |
|
16,025 |
|
|
16,585 |
|
|
50,069 |
|
|
45,930 |
|
||||
Operating expenses |
||||||||||||||||
Research and development costs |
|
711 |
|
|
861 |
|
|
2,494 |
|
|
2,512 |
|
||||
Selling, general and administrative expenses |
|
9,894 |
|
|
10,545 |
|
|
32,138 |
|
|
32,342 |
|
||||
Transaction costs |
|
985 |
|
|
- |
|
|
985 |
|
|
- |
|
||||
Total operating expenses |
|
11,590 |
|
|
11,406 |
|
|
35,617 |
|
|
34,854 |
|
||||
Operating income |
|
4,435 |
|
|
5,179 |
|
|
14,452 |
|
|
11,076 |
|
||||
Other income (expense) |
||||||||||||||||
Interest expense, net |
|
(2,082 |
) |
|
(1,856 |
) |
|
(5,715 |
) |
|
(5,517 |
) |
||||
Foreign currency transaction loss |
|
(761 |
) |
|
(883 |
) |
|
(1,590 |
) |
|
(1,656 |
) |
||||
Other income (expense) |
|
35 |
|
|
196 |
|
|
52 |
|
|
(541 |
) |
||||
Total other expense |
|
(2,808 |
) |
|
(2,543 |
) |
|
(7,253 |
) |
|
(7,714 |
) |
||||
Income before income taxes |
|
1,627 |
|
|
2,636 |
|
|
7,199 |
|
|
3,362 |
|
||||
Income tax expense |
|
874 |
|
|
742 |
|
|
2,296 |
|
|
962 |
|
||||
Net income |
|
753 |
|
|
1,894 |
|
|
4,903 |
|
|
2,400 |
|
||||
Net income attributable to noncontrolling interest |
|
326 |
|
|
194 |
|
|
703 |
|
|
243 |
|
||||
Net income attributable to shareholders of
|
$ |
427 |
|
$ |
1,700 |
|
$ |
4,200 |
|
$ |
2,157 |
|
||||
Income per share |
|
|||||||||||||||
Basic |
$ |
0.02 |
|
$ |
0.08 |
|
$ |
0.21 |
|
$ |
0.11 |
|
||||
Diluted |
$ |
0.02 |
|
$ |
0.08 |
|
$ |
0.21 |
|
$ |
0.11 |
|
||||
Weighted average common shares outstanding |
||||||||||||||||
Basic |
|
20,397,358 |
|
|
20,252,114 |
|
|
20,350,315 |
|
|
20,193,696 |
|
||||
Diluted |
|
20,397,358 |
|
|
20,254,830 |
|
|
20,384,585 |
|
|
20,196,255 |
|
Net Sales and Gross Margin |
|||||||||||
Three Months Ended |
|||||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||||
As Reported |
As Adjusted |
As Reported |
As Adjusted |
As Reported |
As Adjusted |
||||||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
% change Vs Q2 2024 |
( |
( |
|||||||||
% change Vs Q3 2023 |
( |
|
( |
|
|
|
|
|
|
|
|
Gross margin |
16,025 |
16,025 |
17,161 |
17,161 |
16,585 |
16,585 |
|||||
Gross margin % of net sales |
|
|
|
|
|
|
|
|
|
|
|
Backlog |
||||||||||||||||
Sept 30, 2024 |
June 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sept 30, 2023 |
||||||||||||
Backlog from continuing operations |
|
97,277 |
115,811 |
154,182 |
170,286 |
196,872 |
||||||||||
Change Versus Current Period |
( |
( |
( |
( |
||||||||||||
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 |
|||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||
|
|
|
|
|
|
||||
Net income attributable to shareholders of Manitex International, Inc. |
$ |
427 |
|
$ |
1,490 |
|
$ |
1,700 |
|
Adjustments, including net tax impact |
|
1,372 |
|
713 |
|
1,222 |
|||
Adjusted net income attributable to shareholders of Manitex International, Inc. |
$ |
1,799 |
|
$ |
2,203 |
|
$ |
2,922 |
|
Weighted diluted shares outstanding |
|
20,397,358 |
|
20,392,756 |
|
20,254,830 |
|||
Diluted earnings per share as reported |
$ |
0.02 |
|
$ |
0.07 |
|
$ |
0.08 |
|
Total EPS effect |
$ |
0.07 |
$ |
0.04 |
$ |
0.06 |
|||
Adjusted diluted earnings per share |
$ |
0.09 |
|
$ |
0.11 |
|
$ |
0.14 |
|
Reconciliation of Net Income to Adjusted EBITDA |
|||||||||||
Three Months Ended |
|||||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||||
Net Income |
$ |
753 |
|
|
$ |
1,719 |
|
|
$ |
1,894 |
|
Interest expense |
|
2,082 |
|
|
1,840 |
|
|
1,856 |
|
||
Tax expense |
|
874 |
|
|
|
1,178 |
|
|
|
742 |
|
Depreciation and amortization expense |
|
2,767 |
|
|
2,651 |
|
|
2,739 |
|
||
EBITDA |
$ |
6,476 |
|
|
$ |
7,388 |
|
|
$ |
7,231 |
|
Adjustments: |
|||||||||||
Stock compensation |
$ |
269 |
|
$ |
360 |
|
$ |
457 |
|
||
FX |
|
761 |
|
|
|
353 |
|
|
|
883 |
|
Deal costs |
|
985 |
|
|
- |
|
|
- |
|
||
Pension settlement |
|
- |
|
|
|
- |
|
|
|
(118 |
) |
Total Adjustments |
$ |
2,015 |
|
$ |
713 |
|
$ |
1,222 |
|
||
Adjusted EBITDA |
$ |
8,491 |
|
|
$ |
8,101 |
|
|
$ |
8,453 |
|
Adjusted EBITDA as % of sales |
|
12.8 |
% |
|
10.6 |
% |
|
11.9 |
% |
Net Debt | ||||||||
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||
Total cash & cash equivalents |
$ |
4,461 |
|
$ |
5,303 |
|
$ |
4,876 |
Notes payable - short term |
$ |
21,087 |
$ |
21,153 |
$ |
18,640 |
||
Current portion of finance leases |
|
670 |
|
|
651 |
|
|
579 |
Notes payable - long term |
|
13,727 |
|
14,064 |
|
20,857 |
||
Finance lease obligations - LT |
|
2,272 |
|
|
2,444 |
|
|
2,940 |
Revolver, net |
|
50,445 |
|
50,923 |
|
48,259 |
||
Total debt |
$ |
88,201 |
|
$ |
89,235 |
|
$ |
91,275 |
Net debt |
$ |
83,740 |
$ |
83,932 |
$ |
86,399 |
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/20241107748837/en/
IR CONTACT
Paul Bartolai or Noel Ryan
MNTX@val-adv.com
Source: Manitex International, Inc.