MNTX Manitex International Inc

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.

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IR CONTACT Paul Bartolai or Noel Ryan MNTX@val-adv.com