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Manitex International, Inc. Reports Fourth Quarter and Full Year 2020 Results

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BRIDGEVIEW, IL / ACCESSWIRE / March 11, 2021 / Manitex International, Inc. (NASDAQ:MNTX), a leading international provider of cranes and specialized industrial equipment, today announced fourth quarter and full year 2020 results. Net sales from continuing operations for the fourth quarter were $45.2 million, compared to $53.1 million in the prior year's fourth quarter, and net loss from continuing operations was $(1.8 million), or $(0.09) per share, compared to net loss from continuing operations of $(0.1 million) or $(0.01) per share, in the fourth quarter of 2019. Adjusted net loss* from continuing operations in the fourth quarter of 2020 was $(1.3 million), or $(0.07) per share, compared to adjusted net income of $1.3 million, or $0.06 per share, for the fourth quarter of 2019.

Quarterly Financial Highlights (Sequential comparisons unless noted otherwise):

  • Net sales increased 24% to $45.2 million compared to $36.5 million in the third quarter of 2020

  • Gross profit of $8.4 million, or 18.7% of sales was approximately 25% ahead of $6.7 million gross profit, or 18.3% of sales in the third quarter of 2020

  • Realized 100 basis point improvement in SG&A as a percent of sales compared to the third quarter of 2020

  • Adjusted EBITDA* of $1.5 million, or 3.3% of sales, represents an increase of $0.5 million from $1.0 million, or 2.6% of sales in the third quarter of 2020

  • $82.2 million backlog as of January 31, 2021, which represents the highest level in over three years, represents order strength throughout the portfolio

  • Repaid all $15.5 million in convertible notes and $2 million in European term debt to close the year with $29.9 million in net debt as of 12/31/2020 compared to $41.2 million a year ago

  • Available liquidity through cash and credit lines of approximately $29 million as of December 31, 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.

Steve Filipov, CEO of Manitex International commented, "Manitex posted fourth quarter results that reflect good execution throughout the organization, with continued focus on pursuing our top growth opportunities and managing our resources efficiently, despite the challenges of COVID-19. On top of the higher quarterly revenues and Adjusted EBITDA compared to the third quarter, strong bookings in the second half of 2020 resulted in a backlog level not seen in years which we believe will result in higher revenues and operating income throughout the year, and we're expecting to meet the increased level of production that will be needed to meet the higher demand."

"The improved pace of bookings for Manitex products has been led by particular strength in our global crane and aerials businesses, with our European PM business leading our expansion with Manitex straight mast crane also showing signs of recovery, with an acceleration in orders coming out of 2020 and into 2021. And Valla electric cranes, with a $5 million backlog, is at its highest level since joining Manitex International. Our balance sheet is in the best shape it's been in several years, as we paid down our remaining $15.5 million in convertible note obligations which we announced in December, and closed the year with net debt of $30 million, its lowest level in nearly a decade."

"Given the uptick in orders and backlog, we expect our revenues to trend somewhat higher in the first quarter of 2021, with a recovery in margins and the bottom line progressively throughout the year, subject to continued vigilance with respect to COVID-19 to maintain the maximum level of safety and health for our employees, customers, and partners. We expect improved financial performance to be brought about by expected higher volumes, lower interest expenses and our continued benefit from cost reductions implemented during the past 12 months," concluded Mr. Filipov.

Conference Call:

Management will host a conference call with an accompanying slide presentation, after the close of the market, at 4:30 PM ET today, March 11, 2021, 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 until March 18, 2021, 11:59 PM 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 13715658 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

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 for the three and twelve month periods ended December 31, 2020 and 2019 is included with this press release below and with the Company's related Form 8-K. Third quarter 2020 comparisons noted above are reconciled in our September 30, 2020 filings. 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, or for the three and twelve month periods ended December 31, 2020 and 2019, unless otherwise 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, 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)

December 31, 2020

December 31, 2019

ASSETS

Current assets

Cash

$

17,161

$

23,327

Cash - restricted

240

217

Trade receivables (net)

30,418

34,725

Other receivables

179

1,033

Inventory (net)

56,055

57,818

Prepaid expense and other current assets

2,218

4,706

Current assets of discontinued operations

-

1,591

Total current assets

106,271

123,417

Total fixed assets, net of accumulated depreciation of $17,444 and $14,864
at December 31, 2020 and December 31, 2019, respectively

18,723

19,035

Operating lease assets

4,068

2,174

Intangible assets (net)

15,671

17,032

Goodwill

27,472

32,635

Other long-term assets

1,143

281

Deferred tax asset

247

415

Long-term assets of discontinued operations

-

413

Total assets

$

173,595

$

195,402

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$

32,429

$

29,593

Accrued expenses

7,909

9,138

Accounts payable related parties

52

228

Notes payable

16,510

18,212

Convertible note-related party (net)

-

7,323

Current portion of finance lease obligations

344

476

Current portion of operating lease obligations

1,167

813

Customer deposits

2,363

1,493

Deferred income liability

3,747

-

Current liabilities of discontinued operations

-

800

Total current liabilities

64,521

68,076

Long-term liabilities

Revolving term credit facilities (net)

12,606

-

Notes payable (net)

13,625

19,446

Finance lease obligations (net of current portion)

4,221

4,584

Non-current operating lease liabilities

2,901

1,361

Convertible note (net)

-

14,760

Deferred gain on sale of property

587

667

Deferred tax liability

1,333

1,045

Other long-term liabilities

4,892

5,913

Total long-term liabilities

40,165

47,776

Total liabilities

104,686

115,852

Commitments and contingencies

Equity

Preferred Stock-Authorized 150,000 shares, no shares issued or outstanding at
December 31, 2020 and 2019

-

-

Common Stock-no par value 25,000,000 shares authorized, 19,821,090 and 19,713,185
shares issued and outstanding at December 31, 2020, and 2019, respectively

131,455

130,710

Paid in capital

3,025

2,793

Retained deficit

(63,863

)

(50,253

)

Accumulated other comprehensive loss

(1,708

)

(3,700

)

Total equity

68,909

79,550

Total liabilities and equity

$

173,595

$

195,402

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)

Three Months Ended
December 31,

Year Ended
December 31,

2020

2019

2020

2019

Net revenues

$

45,184

$

53,089

$

167,498

$

215,492

Cost of sales

36,755

43,171

136,632

174,649

Gross profit

8,429

9,918

30,866

40,843

Operating expenses

Research and development costs

981

824

3,227

2,714

Selling, general and administrative expenses

7,517

7,601

28,743

34,086

Impairment of intangibles

-

-

6,722

1,539

Total operating expenses

8,498

8,425

38,692

38,339

Operating (loss) income

(69

)

1,493

(7,826

)

2,504

Other income (expense)

Interest expense

(762

)

(1,214

)

(3,595

)

(4,512

)

Interest income

17

68

97

229

Gain on extinguishment of debt

-

-

595

-

Change in fair value of securities held

-

-

-

5,454

Foreign currency transaction loss

(142

)

(126

)

(813

)

(844

)

Other (expense) income

(6

)

37

(503

)

15

Total other (expense) income

(893

)

(1,235

)

(4,219

)

342

(Loss) income before income taxes from continuing operations

(962

)

258

(12,045

)

2,846

Income tax expense from continuing operations

865

342

674

2,791

(Loss) income from continuing operations

(1,827

)

(84

)

(12,719

)

55

Discontinued operations:

Loss from operations of discontinued operations

(57

)

(770

)

(888

)

(8,575

)

Income tax expense (benefit)

2

(67

)

3

(28

)

Loss from discontinued operations

(59

)

(703

)

(891

)

(8,547

)

Net loss

$

(1,886

)

$

(787

)

$

(13,610

)

$

(8,492

)

(Loss) earnings Per Share

Basic

Loss from continuing operations

$

(0.09

)

$

(0.01

)

$

(0.64

)

$

-

Loss from discontinued operations

$

(0.01

)

$

(0.03

)

$

(0.05

)

$

(0.43

)

Net loss

$

(0.10

)

$

(0.04

)

$

(0.69

)

$

(0.43

)

Diluted

Loss from continuing operations

$

(0.09

)

$

(0.01

)

$

(0.64

)

$

-

Loss from discontinued operations

$

(0.01

)

$

(0.03

)

$

(0.05

)

$

(0.43

)

Net loss

$

(0.10

)

$

(0.04

)

$

(0.69

)

$

(0.43

)

Weighted average common shares outstanding

Basic

19,817,599

19,696,093

19,773,081

19,687,414

Diluted

19,817,599

19,696,093

19,773,081

19,687,414

Note: Results shown are from Continuing Operations

Reconciliation of Net Income To Adjusted Net Income:

Three Months Ended

Year Ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Net (loss) income

$

(1,827

)

$

(1,447

)

$

(84

)

$

(12,719

)

$

55

Adjustments, including net tax impact

528

437

1,335

10,347

4,713

Adjusted net (loss) income

$

(1,299

)

$

(1,010

)

$

1,251

$

(2,372

)

$

4,768

Weighted diluted shares outstanding

19,817,599

19,778,225

19,696,093

19,773,081

19,687,414

Diluted (loss) earnings per shares as reported

$

(0.09

)

$

(0.07

)

$

(0.01

)

$

(0.64

)

$

-

Total EPS effect

$

0.02

$

0.02

$

0.07

$

0.52

$

0.24

Adjusted diluted (loss) earnings per share

$

(0.07

)

$

(0.05

)

$

0.06

$

(0.12

)

$

0.24

Reconciliation of Net Income To Adjusted EBITDA:

Three Months Ended

Year Ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Net Income (loss)

$

(1,827

)

$

(1,447

)

$

(84

)

$

(12,719

)

$

55

Interest expense

762

825

1,214

3,595

4,512

Tax expense (benefit)

865

62

342

674

2,791

Depreciation and amortization expense

1,164

1,053

1,110

4,309

4,307

EBITDA

$

964

$

493

$

2,582

$

(4,141

)

$

11,665

Adjustments:

Stock compensation

$

380

$

233

$

155

$

1,038

$

603

FX

142

229

3

813

721

Litigation / legal settlement

113

508

88

772

186

Goodwill impairment

-

-

-

6,585

315

Tradenames & customer relationships impairment

-

-

-

137

1,224

Restructuring / asset impairment costs

-

42

287

433

2,086

Gain from PM debt payoff

-

(595

)

-

(595

)

-

Put call option reserve reversal

(334

)

-

-

(334

)

-

ASV share value change

-

-

-

-

(5,454

)

Other

233

50

370

998

2,500

Total Adjustments

$

534

$

467

$

903

$

9,847

$

2,181

Adjusted EBITDA

$

1,498

$

960

$

3,485

$

5,706

$

13,846

Adjusted EBITDA as % of sales

3.3

%

2.6

%

6.6

%

3.4

%

6.4

%

Backlog

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Mar 31, 2020

Dec 31, 2019

Sep 30, 2019

Backlog from continuing operations

$

67,967

$

50,541

$

44,272

$

57,045

$

65,263

$

56,207

Change Versus Current Period

34.5

%

53.5

%

19.1

%

4.1

%

20.9

%

Note: Backlog was $82.2 million as of January 31, 2021

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

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.

December 31, 2020

September 30, 2020

December 31, 2019

Total cash & cash equivalents

$

17,401

$

23,562

$

23,544

Notes payable - short term

16,510

$

17,832

$

18,212

Current portion of finance leases

344

352

476

Convertible notes

-

15,431

22,083

Notes payable - long term

13,625

15,368

19,446

Finance lease obligations - LT

4,221

4,311

4,584

Revolver, net

12,606

5,000

-

Total debt

$

47,306

$

58,294

$

64,801

Net debt

$

29,905

$

34,732

$

41,257

SOURCE: Manitex International, Inc.



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