Manitex International Reports First Quarter 2024 Results
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
“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
“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
“We remain committed to a disciplined, returns-focused capital allocation strategy,” stated
"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
Lifting Equipment Segment revenue was
Rental Equipment Segment revenue was
Total gross profit was
SG&A expense was
Operating income was
The Company delivered net income of
Adjusted EBITDA was
As of
BALANCE SHEET AND LIQUIDITY
As of
2024 FINANCIAL GUIDANCE
The following forward-looking guidance reflects the management’s current expectations and beliefs as of
|
Full-Year |
|
Full-Year |
|
2023 Actual |
|
2024 |
Total Revenue ($MM) |
|
|
|
Total Adjusted EBITDA ($MM) |
|
|
|
Total Adjusted EBITDA Margin |
10.1% |
|
10.5%* |
*Assumes mid-point of the guidance range.
FIRST QUARTER 2024 RESULTS CONFERENCE CALL
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the
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
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 (
ABOUT
FORWARD-LOOKING STATEMENTS
Safe Harbor Statement under the
CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) |
||||||||
|
|
|||||||
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 |
|
51,594 |
|
|
49,560 |
|
||
Operating lease assets |
|
7,829 |
|
|
7,416 |
|
||
Intangible assets (net) |
|
11,323 |
|
|
12,225 |
|
||
|
|
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 |
|
— |
|
|
— |
|
||
Common stock—no par value 25,000,000 shares authorized, 20,316,054 and 20,258,194 shares issued and outstanding at |
|
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 |
|
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 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share amounts) (Unaudited) |
||||||||
Three Months Ended
|
||||||||
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 |
$ |
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 |
|
|
|||||||||||||||||
Three Months Ended |
|||||||||||||||||
|
|
|
|||||||||||||||
As
|
As
|
As
|
As
|
As
|
As
|
||||||||||||
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 |
||||||||||||
|
|
|
|
|
||||||||
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 |
||||||||
Three Months Ended |
||||||||
|
|
|
||||||
Net income attributable to shareholders of |
$ |
2,283 |
|
$ |
5,199 |
|
$ |
53 |
Adjustments, including net tax impact |
|
1,127 |
|
1,116 |
|
1,436 |
||
Adjusted net income attributable to shareholders of |
$ |
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 |
|||||||||||
|
|
|
|||||||||
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 | ||||||||
|
|
|
||||||
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/
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