UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of the earliest event reported) August 6, 2014

 

 

MANITEX INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Michigan   001-32401   42-1628978

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

9725 Industrial Drive, Bridgeview, Illinois   60455
(Address of Principal Executive Offices)   (Zip Code)

(708) 430-7500

(Registrant’s Telephone Number, Including Area Code)

9725 Industrial Drive, Bridgeview, Illinois

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

On August 6, 2014, Manitex International, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the second quarter ended June 30, 2014 (the “Press Release”). The full text of the Press Release is being furnished as Exhibit 99.1 to this Current Report. The Company also posted presentation slides (Exhibit 99.2) that will be referenced during the conference call and webcast which will take place today August 6, 2014 at 4:30 pm eastern time to discuss the second quarter 2014 results. Both Exhibits can be accessed from the Investor Relations section of the Company’s website at www.ManitexInternational.com.

The information in this Current Report (including Exhibit 99.1 and 99.2) is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

The Company references certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached Press Release. Disclosures regarding definitions of these financial measures used by the Company and why the Company’s management believes these financial measures provide useful information to investors is also included in the Press Release.

 

Item 9.01 Financial Statements and Exhibits.

(a) Financial Statements of Businesses Acquired.

Not applicable.

(b) Pro Forma Financial Information.

Not applicable.

(c) Shell Company Transactions.

Not applicable.

(d) Exhibits.

See the Exhibit Index set forth below for a list of exhibits included with this Current Report on Form 8-K.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.

 

MANITEX INTERNATIONAL, INC.
By:   /S/ DAVID GRANSEE
Name:   David Gransee
Title:   VP and CFO

Date: August 6, 2014


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press release dated August 6, 2014
99.2    Webcast presentation slides dated August 6, 2014

EX-99.1

Exhibit 99.1

Manitex International, Inc. Reports 2nd Quarter 2014 Results

Quarterly Sales Increase 9.3% To A Record $68.4 Million

Net Income increases 13.3% to $3.0 Million

Bridgeview, IL, August 6, 2014 — Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized material and container handling equipment, today announced second quarter 2014 results.

Second Quarter 2014 Financial Highlights:

 

    Second Quarter Net revenues rose 9.3% to a record $68.4 million, from $62.6 million in the year ago period.

 

    Consolidated backlog at June 30, 2014 increased 32.7% to $102.5 million, from $77.3 million at December 31, 2013, and 2.5% from $100.0 million at March 31, 2014.

 

    Second Quarter Net income was $3.0 million, an increase of $0.3 million or 12.5% from the second quarter of 2013 of 2.7 million. Earnings per share of $0.22 were unchanged compared to the year ago period.

 

    Second Quarter EBITDA (1) of $6.3 million or 9.2% of sales, increased 14.2% from $5.5 million and 8.8% of sales in the prior year’s period and was a quarterly record for the Company.

Subsequent to the end of the quarter,

 

    Announced an agreement to acquire, subject to Italian court approval, PM Group S.P.A., a leading Italian manufacturer of truck mounted hydraulic knuckle boom cranes with trailing twelve months (TTM) revenues through June 2014 of approximately $106 million.

 

    Announced that its Manitex Liftking operation has been awarded its third military contract for specialized military specification equipment with approximate revenues of between $30 -$45 million over the next five years. This award from the US Navy brings the value of contracts for deliveries in the next five years secured by Manitex Liftking in the past fourteen months to a range of $75 - $125 million

“Chairman and Chief Executive Officer, David Langevin, commented, “While our quarterly results were slightly below plan, we continued to grow our revenues to new highs with solid bottom line net income while EBITDA margins were in-line with our historic levels. The strategic direction we’ve taken to expand our product portfolio and diversify our revenue sources through in-house development and acquisitions continues to serve us well. We saw gradual improvement in demand from Europe produce improved order intake and product sales. Our backlog is up, though modestly, and unit production too, has moved higher compared to a year ago. We are excited about our recently announced pending acquisition of PM Group, and look forward to completing the acquisition and as we move forward, producing increased revenues and profits for our shareholders. While the transaction is not anticipated to close until the fourth quarter, we look forward to emerging from 2014 as a much larger and stronger entity and moving on into 2015 we will be growing into a new stage in our development from a base in excess of $350 million in pro-forma run-rate revenues.”

Second quarter 2014 revenues increased $5.8 million or 9.3% from the second quarter 2013 to $68.4 million a quarterly record for the Company. However, the quarter’s revenues would have exceeded $70 million if not for a number of government ordered units that shipped internationally at the end of the quarter that were still in transit and therefore unrecognized at the quarters end. Second quarter 2014 revenues include the benefit of $6.4 million

 

— more —


from the Sabre and Valla acquisitions made subsequent to the prior year period. Crane revenues were flat year over year and also reflected a higher percentage of lower capacity models from an improved general construction environment. Material handling revenues were lower from reduced commercial product sales but also from the previously mentioned in–transit shipments. Container handling revenues at our European CVS operation were strongly up, increasing 38% from the prior year quarter resulting from increased demand from both European and international markets. Strong demand, consistent order levels, and increased shipments in the quarter resulted in higher backlog at June 30, 2014 to $102.5 million. This represents an increase of over $25 million or 32.7% from December 31, 2013 and a sequential quarterly increase of $2.5 million or 2.5%.

Net income for the quarter of $3.0 million was equal to the highest achieved by the company to date, and reflected an increase of $0.3 million year over year and a sequential quarter’s increase of $1.1 million or 59%. Compared to the second quarter of 2013, higher revenues of $5.8 million combined with a 40 basis point decrease in gross profit percent principally from product mix, generated an increase in gross profit of $0.9 million. Operating expenses increased $0.3 million, including $0.8 million related to companies acquired since the second quarter of 2013. SG&A expenses were 10.8% of sales, compared to 11.3% for the second quarter of 2013, and remain controlled within management’s target range. The other principal factor influencing operating income was $0.2 million of increased tax expense attributable to higher income and to an increase in the effective tax rate to 32.5% from 31.2% for the second quarter of 2013. The principal factor accounting for the increase in the effective tax rate was the absence of R&D tax credits as such provision expired as of December 31 2013.

Andrew Rooke, Manitex International President and Chief Operating Officer, commented, “This was a very positive and exciting quarter as we announced not only record quarterly revenue and net income but also took very important steps in building our company. Just after quarter end, we announced the agreement to acquire PM Group S.p.A. a leading manufacturer of knuckle boom cranes and a third consecutive multi-million dollar military contract award, both, which will add further to the bright prospects for our group. In addition, the second quarter saw another increase in our backlog with particular strength in orders for our CVS container handling product. From an operational aspect, as anticipated, our gross margin for the quarter improved 80 basis points from the first quarter of 2014 and at 19.2% was also comparable to the 19.6% of the second quarter of 2013. Our balance sheet remains in good shape, as reflected in our current ratio of 2.5, a net debt to capitalization ratio of 38.5%,and interest coverage ratio of 7.0 times. With 12 month trailing EBITDA of $22.9 million, an increase of 3.5% from the first quarter of 2014, our debt to EBITDA ratio is 2.6 times at June 30 2014.”

 

(1)  EBITDA and adjusted net income are non-GAAP (generally accepted accounting principles in the United States of America) financial measures. These measures may be different from non-GAAP financial measures used by other companies. We encourage investors to review the section below entitled “Non-GAAP Financial Measures.”

Conference Call:

Management will host a conference call at 4:30 p.m. Eastern Time to discuss the results with the investment community. Anyone interested in participating should call 1-888-500-6950 if calling within the United States or 1-719-325-2469 if calling internationally. A replay will be available until August 13, 2014 which can be accessed by dialing 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use passcode 1509705 to access the replay

The call will also be accompanied by a webcast over the Internet with slides, which are also accessible at the Investor Relations section of the Company’s corporate website at www.manitexinternational.com.

About Manitex International, Inc.

Manitex International, Inc. designs, manufactures and markets a portfolio of highly engineered and customizable lifting, material and container handling equipment, spanning boom truck, telescopic, rough terrain and industrial cranes, reach stackers and associated container handling equipment, rough terrain forklifts, mobile liquid and solid containment solutions, and specialized trailers and mission oriented vehicles, including parts support. We have accumulated nearly a dozen brands since going public in 2006 and operate internationally through eight subsidiaries with design and manufacturing facilities in the USA, Canada and Italy.


Manitex Inc, in Georgetown, TX, manufactures a comprehensive line of boom truck and telescopic cranes and sign cranes , primarily used in industrial projects, energy exploration and infrastructure development, including roads, bridges, and commercial construction. Badger Equipment Company, in Winona, MN, manufactures specialized rough terrain and industrial cranes and primarily serves the needs of the construction, municipality, and railroad industries. Our Italian subsidiary, CVS Ferrari, srl, designs and manufactures a range of reach stackers and associated lifting equipment for the global container handling market. Our Manitex Liftking subsidiary is a provider of material handling equipment including the Noble straight-mast rough terrain forklift product line, Lowry high capacity cushion tired forklift as well as specialized carriers, heavy material handling transporters and steel mill equipment. Manitex Liftking’s rough terrain forklifts are used in commercial applications and by the world’s largest military and peace keeping organizations. Our subsidiary, Manitex Load King located in Elk Point, South Dakota is a manufacturer of specialized engineered trailers and hauling systems, typically used for transporting heavy equipment. Manitex Sabre based in Knox, Indiana, builds mobile specialized tanks for liquid storage and containment solutions for a variety of end markets such as petrochemical, waste management and oil and gas drilling. Manitex Valla located in Piacenza, Italy, manufactures a full range of mobile precision pick and carry cranes from 2 to 90 tons, using electric, diesel, and hybrid power options with configurable special applications designed specifically to meet the needs of its customers.

Our Crane and Machinery division is a Chicago based distributor of cranes including Terex truck and rough terrain cranes, PM knuckle boom cranes and our own Manitex International brands. Crane and Machinery provides aftermarket service in its local market as well as being a leading distributor of OEM crane parts, supplying parts to customers throughout the United States and internationally. The division also provides a wide range of used and refurbished lifting and construction equipment of various ages and conditions as well as operating a rental fleet of equipment to the Tri-state area.

Forward-Looking Statement

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.    Hayden IR
David Langevin    Peter Seltzberg
Chairman and Chief Executive Officer    Investor Relations
(708) 237-2060    646-415-8972
djlangevin@manitexinternational.com    peter@haydenir.com


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except for share and per share amounts)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2013     2014     2013  
     Unaudited     Unaudited     Unaudited     Unaudited  

Net revenues

   $ 68,399      $ 62,554      $ 130,975      $ 122,120   

Cost of sales

     55,255        50,294        106,227        99,624   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     13,144        12,260        24,748        22,496   

Operating expenses

        

Research and development costs

     578        606        1,298        1,418   

Selling, general and administrative expenses

     7,388        7,050        14,661        13,217   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     7,966        7,656        15,959        14,635   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     5,178        4,604        8,789        7,861   

Other income (expense)

        

Interest expense

     (716     (751     (1,521     (1,344

Foreign currency transaction gain (loss)

     86        11        75        (52

Other income (loss)

     (125     (5     (138     (9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (755     (745     (1,584     (1,405
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     4,423        3,859        7,205        6,456   

Income tax

     1,437        1,204        2,342        1,890   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 2,986      $ 2,655      $ 4,863      $ 4,566   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share

        

Basic

   $ 0.22      $ 0.22      $ 0.35      $ 0.37   

Diluted

   $ 0.22      $ 0.22      $ 0.35      $ 0.37   

Weighted average common shares outstanding

        

Basic

     13,822,383        12,295,879        13,814,848        12,285,819   

Diluted

     13,874,289        12,337,493        13,857,398        12,322,642   


MANITEX INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 

     June 30,
2014
     December 31,
2013
 
     Unaudited      Unaudited  

ASSETS

     

Current assets

     

Cash

   $ 3,189       $ 6,091   

Trade receivables (net)

     52,704         38,170   

Accounts receivable finance

     217         326   

Other receivables

     312         1,541   

Inventory (net)

     79,760         72,734   

Deferred tax asset

     1,272         1,272   

Prepaid expense and other

     2,444         1,669   
  

 

 

    

 

 

 

Total current assets

     139,898         121,803   
  

 

 

    

 

 

 

Total fixed assets (net)

     10,477         11,143   

Intangible assets (net)

     22,697         24,036   

Deferred tax asset

     2,118         2,117   

Goodwill

     22,492         22,514   

Other long-term assets

     1,033         1,031   
  

 

 

    

 

 

 

Total assets

   $ 198,715       $ 182,644   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Notes payable—short term

   $ 9,470       $ 6,910   

Revolving credit facilities

     2,625         2,707   

Current portion of capital lease obligations

     1,733         1,812   

Accounts payable

     29,066         24,974   

Accounts payable related parties

     932         789   

Accrued expenses

     8,507         8,808   

Other current liabilities

     3,173         1,930   
  

 

 

    

 

 

 

Total current liabilities

     55,506         47,930   
  

 

 

    

 

 

 

Long-term liabilities

     

Revolving term credit facilities

     41,442         37,306   

Deferred tax liability

     4,075         4,074   

Notes payable

     2,205         2,512   

Capital lease obligations

     2,353         2,984   

Deferred gain on sale of building

     1,458         1,648   

Other long-term liabilities

     1,178         1,199   
  

 

 

    

 

 

 

Total long-term liabilities

     52,711         49,723   
  

 

 

    

 

 

 

Total liabilities

     108,217         97,653   
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity

     

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at June 30, 2014 and December 31, 2013

     —          —    

Common Stock—no par value 20,000,000 shares authorized, 13,822,918 and 13,801,277 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively

     68,894         68,554   

Paid in capital

     1,557         1,191   

Retained earnings

     19,720         14,857   

Accumulated other comprehensive income

     327         389   
  

 

 

    

 

 

 

Total shareholders’ equity

     90,498         84,991   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 198,715       $ 182,644   
  

 

 

    

 

 

 


MANITEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

     Six Months Ended
June 30,
 
     2014     2013  
     Unaudited     Unaudited  

Cash flows from operating activities:

    

Net income

   $ 4,863      $ 4,566   

Adjustments to reconcile net income to cash used for operating activities:

    

Depreciation and amortization

     2,226        1,773   

Changes in allowances for doubtful accounts

     78        162   

Changes in inventory reserves

     (123     (76

Deferred income taxes

     —          34   

Share based compensation

     712        467   

Loss on disposal of fixed assets

     —          4   

Reserves for uncertain tax provisions

     10        19   

Changes in operating assets and liabilities:

    

(Increase) decrease in accounts receivable

     (13,490     (3,303

(Increase) decrease in accounts receivable finance

     107        190   

(Increase) decrease in inventory

     (6,958     (6,890

(Increase) decrease in prepaid expenses

     (775     (297

(Increase) decrease in other assets

     (2     31   

Increase (decrease) in accounts payable

     4,308        1,501   

Increase (decrease) in accrued expense

     (277     (175

Increase (decrease) in other current liabilities

     1,256        (37

Increase (decrease) in other long-term liabilities

     (31     (35
  

 

 

   

 

 

 

Net cash used for operating activities

     (8,096     (2,066
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Proceeds from the sale of fixed assets

     —          12   

Purchase of property and equipment

     (446     (804
  

 

 

   

 

 

 

Net cash used for investing activities

     (446     (792
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Borrowing on revolving term credit facilities

     4,103        4,161   

Net borrowings (repayments) on working capital facilities

     2,350        (546

New borrowings—notes payable

     677        809   

Note payments

     (725     (536

Shares repurchased for income tax withholding on share-based compensation

     (6     —     

Proceeds from capital leases

     —          827   

Payments on capital lease obligations

     (710     (509
  

 

 

   

 

 

 

Net cash provided by financing activities

     5,689        4,206   
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (2,853     1,348   

Effect of exchange rate change on cash

     (49     (66

Cash and cash equivalents at the beginning of the year

     6,091        1,889   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 3,189      $ 3,171   
  

 

 

   

 

 

 


Supplemental Information

In an effort to provide investors with additional information regarding the Company’s results, Manitex International refers to various non-GAAP (U.S. generally accepted accounting principles) financial measures which management believes provides useful information to investors. These measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. Manitex International believes that this information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Manitex International uses these non–GAAP financial measures to establish internal budgets and targets and to evaluate the Company’s financial performance against such budgets and targets.

The amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of or for the three month period ended June 30, 2014, unless otherwise indicated.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measure: “EBITDA” (earnings before interest, tax, depreciation and amortization). This non-GAAP term, as defined by the Company, may not be comparable to similarly titled measures used by other companies. EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA should not be considered in isolation or as a substitute for net earnings, operating income and other consolidated earnings data prepared in accordance with GAAP or as a measure of our profitability. A reconciliation of net income to EBITDA is provided below.

The Company’s management believes that EBITDA and EBITDA as a percentage of sales represent key operating metrics for its business. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a key indicator used by management to evaluate operating performance. While EBITDA is 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 this measure is useful to investors in assessing our capital expenditure and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of EBITDA to GAAP financial measures for the three and six month periods ended June 30, 2014 and 2013 is included with this press release below and with the Company’s related Form 8-K.


Reconciliation of GAAP Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

Net income

     2,986        2,655        4,863        4,566   

Income tax

     1,437        1,204        2,342        1,890   

Interest expense

     716        751        1,521        1,344   

Foreign currency transaction losses (gain)

     (86     (11     (75     52   

Other (income) expense

     125        5        138        9   

Depreciation & Amortization

     1,115        909        2,226        1,773   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before interest, taxes, depreciation and amortization (EBITDA)

   $ 6,293      $ 5,513      $ 11,015      $ 9,634   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA % to sales

     9.2     8.8     8.4     7.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Backlog

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.

 

     June 30,
2014
     March 31,
2014
    December 31,
2013
 

Backlog

   $ 102,517       $ 100,023      $ 77,281   
  

 

 

    

 

 

   

 

 

 

6/30/2014 increase v prior period

        2.5     32.7
     

 

 

   

 

 

 

Current Ratio is calculated by dividing current assets by current liabilities.

 

     June 30,
2014
     December 31,
2013
 

Current Assets

   $ 139,898       $ 121,803   

Current Liabilities

   $ 55,506       $ 47,930   
  

 

 

    

 

 

 

Current Ratio

     2.5         2.5   
  

 

 

    

 

 

 


Days Sales Outstanding, (DSO), is calculated by taking the sum of net trade and related party receivables divided by annualized sales per day (sales for the quarter, multiplied by 4, and the sum divided by 365).

Days Payables Outstanding, (DPO), is calculated by taking the sum of net trade and related party payables divided by annualized cost of sales per day (cost of goods sold for the quarter, multiplied by 4, and the sum divided by 365).

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 and lines of credit. Debt to EBITDA ratio is calculated by dividing total debt at the balance sheet date by trailing twelve month EBITDA.

 

     June 30, 2014      December 31, 2013  

Current portion of long term debt

   $ 9,470       $ 6,910   

Current portion of capital lease obligations

     1,733         1,812   

Revolving credit facilities

     2,625         2,707   

Revolving term credit facilities

     41,442         37,306   

Notes payable – long term

     2,205         2,512   

Capital lease obligations

     2,353         2,984   
  

 

 

    

 

 

 

Debt

   $ 59,828       $ 54,231   
  

 

 

    

 

 

 

Trailing 12 month EBITDA

   $ 22,864       $ 21,483   

Debt to EBITDA Ratio

     2.6         2.5   

Interest Cover is calculated by dividing EBITDA (Earnings before interest, tax, depreciation and amortization) for the trailing twelve month period (July 1 to June 30) by interest expense as reported in the Consolidated Statement of Income for the same period.

 

     12 Month Period
July 1, 2013 to
June 30, 2014
     12 Month Period
July 1, 2012 to
June 30, 2013
 

EBITDA

   $ 22,864       $ 19,085   

Interest Expense

     3,158         2,534   

Interest Cover Ratio

     7.2         7.5   

Inventory turns are calculated by multiplying cost of goods sold for the referenced three month period by 4 and dividing that figure by inventory as at the referenced period.

Manufacturing Expenses include manufacturing wages, salaries, fixed and variable overhead costs.


Operating Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus other receivables, plus inventories, less Accounts payable. The Company considers excessive working capital as an inefficient use of resources, and seeks to minimize the level of investment without adversely impacting the ongoing operations of the business.

 

     June 30,
2014
    December 31,
2013
 

Trade receivables (net)

   $ 52,704      $ 38,170   

Other receivables

     312        1,541   

Inventory (net)

     79,760        72,734   

Less: Accounts payable

     29,998        25,763   
  

 

 

   

 

 

 

Total Operating Working Capital

   $ 102,778      $ 86,682   
  

 

 

   

 

 

 

% of Trailing Three Month Annualized Net Sales

     37.6     33.1
  

 

 

   

 

 

 

Trailing Twelve Months EBITDA is calculated by adding the reported EBITDA for the past 4 quarters.

 

Three Months Ended:

   EBITDA  

September 30, 2013

     5,624   

December 31, 2013

     6,225   

March 31, 2014

     4,722   

June 30, 2014

     6,293   
  

 

 

 

Trailing Twelve Months EBITDA

   $ 22,864   
  

 

 

 

Trailing Three Month Annualized Net Sales is calculated using the net sales for quarter, multiplied by four.

 

     Three Months Ended  
     June 30,
2014
     December 31,
2013
 

Net sales

   $ 68,399       $ 65,431   

Multiplied by 4

     4         4   
  

 

 

    

 

 

 

Trailing Three Month Annualized Net Sales

   $ 273,596       $ 261,724   
  

 

 

    

 

 

 

Working capital is calculated as total current assets less total current liabilities

 

     June 30, 2014      December 31, 2013  

Total Current Assets

   $ 139,898       $ 121,803   

Less: Total Current Liabilities

     55,506         47,930   
  

 

 

    

 

 

 

Working Capital

   $ 84,392       $ 73,873   
  

 

 

    

 

 

 

EX-99.2
“Focused
manufacturer of
engineered lifting
equipment”
Exhibit 99.2
Manitex International, Inc.
Conference Call
Second Quarter 2014
August 6th, 2014


2
Forward Looking Statements &
Non GAAP Measures
“Focused
manufacturer of
engineered lifting
equipment”
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation
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 presentation 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.
Non-GAAP Measures: Manitex International from time to time refers to
various non-GAAP (generally
accepted accounting principles) financial measures in this presentation.  Manitex believes that this
information is useful to understanding its operating results without the impact of special items. See
Manitex’s Second Quarter 2014 Earnings Release on the Investor Relations
section of our website
www.manitexinternational.com
for a description and/or reconciliation of these measures.


3
“Focused
manufacturer of
engineered lifting
equipment”
Overview
Record quarterly sales & EBITDA with net income equal to previous highs: 
Sales
of
$68.4
million
(9.3%
increase)
Net
income
of
$3.0
million
(12.5%
increase)
EBITDA
$6.3
million
(14.2%
increase),
9.2%
of
sales
EPS
$0.22
(unchanged
from
Q2-2013,
but
1.5
million
more
diluted
shares)
Continued increase in order intake in Q2-2014 provides YTD increase in backlog of
~33% to $102.5 million.
July 21
st
, announced agreement to acquire PM Group S.p.A. subject to Italian
court approval. Based near Modena, Italy, PM Group had June 30, 2014 trailing
twelve month revenues of approximately $106 million. Expected to
close in Q4-
2014.


4
“Focused
manufacturer of
engineered lifting
equipment”
Commercial Overview
•Order demand in the quarter saw some stronger demand in Europe for CVS and in N.America for
lower tonnage crane products
•Book to bill ratio of 104% in Q2-2014, compared to 82% for Q2-2013 and 136% for Q1-2014.
•Relatively slow growth in N. America and a long way from the peak of 2007-8.
•Expect to see energy developments pick up in medium term. As at July 25, N. America rig
count YOY increase of 8.2%  (173 rigs)
•European markets continue to improve
•Product order profile has shown an increase in smaller / mid-range tonnage cranes reflecting
increase in general construction activity. Commercial material handling equipment slower but
container handling equipment showed stronger demand in the quarter and expected to grow further.
•Awarded third military contract for specialized military specification equipment with approximate
revenues of between $30 -$45 million over the next five years. This award from the US Navy brings
the value of contracts for deliveries in the next five years secured by Manitex Liftking in the past
fourteen months to a range of $75 -
$125 million.
•6/30/14 Backlog of $102.5 million (12/31/13, $77.3 million):
•Broad based order book with stronger representation from CVS and
from lower capacity cranes
•Strong order intake in Q2-2014 for container handling equipment (CVS)


5
Key Figures -
Quarterly
“Focused
manufacturer of
engineered lifting
equipment”
USD thousands
Q2-2014
Q2-2013
Q1-2014
Net sales
$68,399
$62,554
$62,576
% change in Q2-2014 to prior period
9.3%
9.3%
Gross profit
13,144
12,260
11,604
Gross margin %
19.2%
19.6%
18.5%
Operating expenses
7,966
7,656
7,993
Net Income
2,986
2,655
1,877
Earnings Per Share
$0.22
$0.22
$0.14
Ebitda
6,293
5,513
4,722
Ebitda % of Sales
9.2%
8.8%
7.5%
Working capital
84,392
70,179
75,171
Current ratio
2.5
2.6
2.5
Backlog
$102,517
$96,637
$100,023
% change in Q2-2014 to prior period
6.1%
2.5%


6
“Focused
manufacturer of
engineered lifting
equipment”
Q2-2014 Operating Performance
$m
$m
Q2-2013 Net income
2.7    
Gross profit impact of increased sales of $5.8 million
(2014 sales less 2013 sales at 2013 gross profit % ).
1.1
Impact from decrease in margin
(2014 gross profit % -
2013 gross profit % multiplied by 2014 sales)
(0.2)
Increase in gross profit
0.9
Operating expenses
(0.3)
Interest / other
-
Increase in tax
(0.2)
Q2-2014 Net income
$3.0      


7
Working Capital
“Focused
manufacturer of
engineered lifting
equipment”
$000
Q2-2014
Q4-2013
Working Capital
$84,392
$73,873
Days sales outstanding (DSO)
70
53
Days payable outstanding (DPO)
50
45
Inventory turns
2.8
2.9
Current ratio
2.5
2.5
Operating working capital
102,778
86,682
Operating working capital % of
annualized LQS
37.6%
33.1%
•Working capital increase Q2-2014 v Q4-2013, of $10.5m:
•Trade & Other Receivables $13.2m, Inventory $7.0m, partially offset by
reduced cash $2.9m, increased accounts payable $4.2m, short term
working
capital borrowings $2.5m and accruals & other current liabilities $0.9m.
•Inventory increase includes governmental units shipped not recognized as
revenue in Q2
•Working capital ratios: DSO increase from a higher proportion of
international
sales and timing of payments on military


8
“Focused
manufacturer of
engineered lifting
equipment”
$000
Q2-2014
Q4-2013
Total Cash
$3,189
$6,091
Total Debt
59,828
54,231
Total Equity
90,498
84,991
Net capitalization
147,137
133,131
Net debt / capitalization
38.5%
36.2%
Trailing 12 month EBITDA
$22,864
$21,483
Debt / EBITDA
x2.6
x2.5
•Increase in debt of $5.6 million from 12/31/13 principally reflects increase in working capital
facilities in N.A. ($4.1m) and Italy ($2.3m) funding increased activity levels.
•Other debt repayments in the quarter of $0.6 million
•N. American revolver facilities, based on available collateral at 6/30/14 was $50.8m.
•N. American revolver availability at 6/30/14 of $6.1m.
Debt & Liquidity
Net capitalization is the sum of debt plus equity minus cash
Net debt is total debt less cash


9
Summary
“Focused
manufacturer of
engineered lifting
equipment”
Q2-2014 achieved highest quarterly revenues and EBITDA to date and
equal high levels of net income.
Solid ~30% increase in backlog to $103 million is indicator of improved
customer confidence although short term negative mix
PM acquisition expected to close in Q4-2014, providing additional
growth platform for 2015 as we become a pro-forma greater than $350
million revenue organization


10
Appendix
“Focused
manufacturer of
engineered lifting
equipment”
PM Group S.p.A. Acquisition
Agreement


Agreement with PM-Group
11
8/5/2014
Nasdaq: MNTX
Manitex International, Inc. (Nasdaq: MNTX)
has reached an agreement to
acquire
PM-Group
SpA
(PM
and
Oil
&
Steel
SpA,)
of
San
Cesario
sul
Panaro,
Modena, Italy.
Consideration of $107 million, subject to post-closing adjustments and earnout
provisions, is expected to consist of a combination of debt, equity, and the assumption of
$68 million in debt and liabilities.
The acquisition is expected to close in the fourth quarter of 2014, subsequent to the
pending Italian Court approval of a debt restructuring plan.
PM-Group had accumulated $140M in debt, following 2008 LBO, which has created an
opportunity for Manitex to acquire the company and restructure the debt.
PM-Group has trailing twelve months revenues of $106 million and adjusted EBITDA
margins of approximately 9% .


Deal Structure
Purchase Price of $107 Million consists of:
$24 million in cash provided by a new Manitex term loan with
current Manitex Banking group.
$15 million in new equity issuance (approximately 1 million
MNTX shares) distributed primarily to current PM banks.
$68 million in assumed debt and liabilities which includes
working capital facilities for PM.
12
8/5/2014
Nasdaq: MNTX


Acquisition Rationale:
13
Acquisition fits into Manitex International stated growth objectives to achieve
growth both organically and through acquisitions.  PM-Group represents our
largest acquisition to date.
PM-Group is a strong strategic fit:
Adds product classes -
knuckle boom cranes and truck mounted aerial
platforms-
both are a highly desired product categories with strong demand.
Adds new manufacturing facilities/capacity
Adds new distributors, geographies and niche markets
Accelerates Manitex growth both within Europe and globally
Compelling synergies create value for shareholders
Accretion to EBITDA and Earnings expected in 2014
8/5/2014
Nasdaq: MNTX


What We are Buying
14
8/5/2014
Nasdaq: MNTX
PM
is
a
leading
Italian
manufacturer
of
truck-mounted
hydraulic
knuckle
boom cranes, with diverse product lines ranging up to 108 ton meters in
lifting capacity, sales in 50 countries including Western and Eastern
Europe, South America, Middle & Far East, and North America.
Oil
&
Steel
(“O&S”)
is
a
market
leader
in
truck
mounted
aerial
platforms.
PM and O&S’
headquarters and assembly plants are located in San
Cesario sul Panaro, in the province of Modena, Italy, together with a
manufacturing plant in Romania.


Combination of Manitex and PM-Group
15
8/5/2014
Nasdaq: MNTX
HIGHLIGHTS:
Annualized Pro Forma Revenues in excess of $350 Million
Annualized Pro Forma EBITDA in excess of $30 Million
Long-term Gross Margin Target Remains ~20%
Long-term EBITDA Margin Target Remains ~10%
Pro forma combined backlog as of March 31, 2014 is ~$116 Million
Manitex International now offers its dealers both straight-mast and
knuckle boom cranes