Manitex International Reports Second Quarter 2024 Results
SECOND QUARTER 2024 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-
Net revenue of
$76.2 million , +3.7% -
Gross profit of
$17.2 million , +14.9%; gross margin of 22.5%, +220 basis points -
Net Income of
$1.5 million ; Adjusted Net Income of$2.2 million , or$0.11 per diluted share -
Adjusted EBITDA of
$8.1 million , +19.0%; Adjusted EBITDA margin of 10.6%, +137 basis points -
Net Debt decrease of
$2.4 million from 1Q24; Net leverage of 2.5x as ofJune 30, 2024 - Reiterated full-year 2024 adjusted EBITDA guidance; Adjusted full-year 2024 revenue guidance
MANAGEMENT COMMENTARY
“Our second quarter results highlight our continued progress under our Elevating Excellence strategy, as we produced further margin expansion, generated strong adjusted EBITDA growth, and reduced net leverage” stated
“While we continue to see some apprehension from our dealers and customers, likely driven by the stubbornly high interest rates, macro uncertainty, and upcoming elections, which is weighing on order patterns and our backlog, we remain confident in the long-term drivers of our business,” noted Coffey. “The need to invest in infrastructure, enhance the durability of the electric grid, and mine critical materials to support the energy transition has not changed, and these factors will drive our business in the coming years. In the meantime, we will continue to focus on our commercial growth initiatives, and we made important progress during the second quarter, including growing momentum in our dealer network expansion strategy and increased new product adoption.”
“The continued progress under our operational excellence initiatives was once again clearly evident during the second quarter based on our 220 basis points of gross margin expansion,” continued Coffey. “During the second quarter, we made additional progress on our supply chain initiatives, resulting in lower materials costs, and further improved our manufacturing velocity. These actions contributed to an adjusted EBITDA margin of 10.6% in the second quarter, an improvement of nearly 140 basis points from the prior-year period, despite some mixed headwinds.”
“We remain committed to our disciplined capital allocation strategy, with a near-term priority on reducing our debt levels and net leverage,” stated
"We are extremely proud of the progress we’ve made under Elevating Excellence, and weremain laser-focused on continuing to drive critical change under this program in the coming years in an effort to drive shareholder value,” noted Coffey. “It is this disciplined focus on our strategic priorities that has enabled us to deliver strong adjusted EBITDA growth and margin expansion during 2024, despite the slowing in order trends we have experienced in recent quarters. As a result of the recent order trends, we are lowering our full-year 2024 revenue guidance to a range of
SECOND 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 |
Prior Full-Year |
|
2023 Actual |
|
2024 |
2024 |
Total Revenue ($MM) |
|
|
|
|
Total Adjusted EBITDA ($MM) |
|
|
|
|
Total Adjusted EBITDA Margin |
10.1% |
|
10.8%* |
10.5%* |
*Assumes mid-point of the guidance range.
SECOND 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: |
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Domestic Live: |
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(800) 717-1738 |
International Live: |
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(646) 307-1865 |
To listen to a replay of the teleconference, which will be available through |
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Domestic Replay: |
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(844) 512-2921 |
International Replay: |
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(412) 317-6671 |
Passcode: |
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1123676 |
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 |
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(In thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
|
|
|||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash |
$ |
5,097 |
|
$ |
9,269 |
|
||
Cash – restricted |
|
206 |
|
|
212 |
|
||
Trade receivables (net) |
|
51,695 |
|
|
49,118 |
|
||
Other receivables |
|
1,715 |
|
|
553 |
|
||
Inventory (net) |
|
82,268 |
|
|
82,337 |
|
||
Prepaid expenses and other current assets |
|
3,659 |
|
|
4,084 |
|
||
Total current assets |
|
144,640 |
|
|
145,573 |
|
||
Total fixed assets, net of accumulated depreciation of |
|
52,194 |
|
|
49,560 |
|
||
Operating lease assets |
|
7,832 |
|
|
7,416 |
|
||
Intangible assets (net) |
|
10,511 |
|
|
12,225 |
|
||
|
|
36,854 |
|
|
37,354 |
|
||
Deferred tax assets |
|
3,220 |
|
|
3,603 |
|
||
Total assets |
$ |
255,251 |
|
$ |
255,731 |
|
||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ |
49,987 |
|
$ |
47,644 |
|
||
Accrued expenses |
|
14,346 |
|
|
14,503 |
|
||
Related party payables (net) |
|
548 |
|
|
27 |
|
||
Revolving term credit facilities |
|
2,106 |
|
|
2,185 |
|
||
Notes payable (net) |
|
21,153 |
|
|
23,343 |
|
||
Current portion of finance lease obligations |
|
651 |
|
|
605 |
|
||
Current portion of operating lease obligations |
|
2,210 |
|
|
2,100 |
|
||
Customer deposits |
|
2,021 |
|
|
2,384 |
|
||
Total current liabilities |
|
93,022 |
|
|
92,791 |
|
||
Long-term liabilities |
||||||||
Revolving term credit facilities (net) |
|
48,817 |
|
|
49,781 |
|
||
Notes payable (net) |
|
14,064 |
|
|
16,249 |
|
||
Finance lease obligations (net of current portion) |
|
2,444 |
|
|
2,777 |
|
||
Operating lease obligations (net of current portion) |
|
5,622 |
|
|
5,315 |
|
||
Deferred tax liability |
|
4,719 |
|
|
4,145 |
|
||
Other long-term liabilities |
|
3,334 |
|
|
4,989 |
|
||
Total long-term liabilities |
|
79,000 |
|
|
83,256 |
|
||
Total liabilities |
|
172,022 |
|
|
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, 20,390,299 and 20,258,194
|
|
135,226 |
|
|
134,328 |
|
||
Additional paid-in capital |
|
5,454 |
|
|
5,440 |
|
||
Retained deficit |
|
(62,209 |
) |
|
(65,982 |
) |
||
Accumulated other comprehensive loss |
|
(5,686 |
) |
|
(4,169 |
) |
||
Equity attributable to shareholders of |
|
72,785 |
|
|
69,617 |
|
||
Equity attributed to noncontrolling interest |
|
10,444 |
|
|
10,067 |
|
||
Total equity |
|
83,229 |
|
|
79,684 |
|
||
Total liabilities and equity |
$ |
255,251 |
|
$ |
255,731 |
|
||
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands, except for share and per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net revenues |
$ |
76,235 |
|
$ |
73,534 |
|
$ |
149,578 |
|
$ |
141,405 |
|
||||
Cost of sales |
|
59,074 |
|
|
58,599 |
|
|
115,534 |
|
|
112,060 |
|
||||
Gross profit |
|
17,161 |
|
|
14,935 |
|
|
34,044 |
|
|
29,345 |
|
||||
Operating expenses |
||||||||||||||||
Research and development costs |
|
929 |
|
|
837 |
|
|
1,783 |
|
|
1,651 |
|
||||
Selling, general and administrative expenses |
|
11,125 |
|
|
10,766 |
|
|
22,244 |
|
|
21,797 |
|
||||
Total operating expenses |
|
12,054 |
|
|
11,603 |
|
|
24,027 |
|
|
23,448 |
|
||||
Operating income |
|
5,107 |
|
|
3,332 |
|
|
10,017 |
|
|
5,897 |
|
||||
Other income (expense) |
||||||||||||||||
Interest expense |
|
(1,931 |
) |
|
(1,896 |
) |
|
(3,803 |
) |
|
(3,661 |
) |
||||
Interest income |
|
91 |
|
|
- |
|
|
170 |
|
|
- |
|
||||
Foreign currency transaction loss |
|
(353 |
) |
|
(718 |
) |
|
(829 |
) |
|
(773 |
) |
||||
Other income (expense) |
|
(17 |
) |
|
21 |
|
|
17 |
|
|
(737 |
) |
||||
Total other expense |
|
(2,210 |
) |
|
(2,593 |
) |
|
(4,445 |
) |
|
(5,171 |
) |
||||
Income before income taxes |
|
2,897 |
|
|
739 |
|
|
5,572 |
|
|
726 |
|
||||
Income tax expense |
|
1,178 |
|
|
207 |
|
|
1,422 |
|
|
220 |
|
||||
Net income |
|
1,719 |
|
|
532 |
|
|
4,150 |
|
|
506 |
|
||||
Net income attributable to noncontrolling interest |
|
229 |
|
|
128 |
|
|
377 |
|
|
49 |
|
||||
Net income attributable to shareholders
of |
$ |
1,490 |
|
$ |
404 |
|
$ |
3,773 |
|
$ |
457 |
|
||||
Income per share |
|
|||||||||||||||
Basic |
$ |
0.07 |
|
$ |
0.02 |
|
$ |
0.19 |
|
$ |
0.02 |
|
||||
Diluted |
$ |
0.07 |
|
$ |
0.02 |
|
$ |
0.19 |
|
$ |
0.02 |
|
||||
Weighted average common shares outstanding |
||||||||||||||||
Basic |
|
20,368,668 |
|
|
20,206,919 |
|
|
20,326,794 |
|
|
20,164,486 |
|
||||
Diluted |
|
20,392,756 |
|
|
20,209,959 |
|
|
20,378,199 |
|
|
20,166,968 |
|
||||
|
|
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Three Months Ended |
|||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
As Reported |
As A
|
As
|
As
|
As
|
As
|
|
|||||||||||||||||||
Net sales |
$ |
76,235 |
|
|
$ |
76,235 |
|
|
$ |
73,343 |
|
|
$ |
73,343 |
|
|
$ |
73,534 |
|
|
$ |
73,534 |
|
|
|
% change Vs Q1 2024 |
|
3.9 |
% |
|
3.9 |
% |
|
||||||||||||||||||
% change Vs Q2 2023 |
|
3.7 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
|
|||||||||||||||||||||||||
Gross margin |
|
17,161 |
|
|
17,161 |
|
|
16,883 |
|
|
16,883 |
|
|
14,935 |
|
|
14,935 |
|
|
||||||
Gross margin % of net sales |
|
22.5 |
% |
|
|
22.5 |
% |
|
|
23.0 |
% |
|
|
23.0 |
% |
|
|
20.3 |
% |
|
|
20.3 |
% |
|
|
Backlog |
||||||
|
|
|
|
|
||
Backlog from continuing operations |
|
115,811 |
154,182 |
170,286 |
196,872 |
223,236 |
Change Versus Current Period |
(24.9%) |
(32.0%) |
(41.2%) |
(48.1%) |
||
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
|
$ |
1,490 |
|
$ |
2,283 |
|
$ |
404 |
Adjustments, including net tax impact |
|
713 |
|
1,127 |
|
1,307 |
||
Adjusted net income attributable to
|
$ |
2,203 |
|
$ |
3,410 |
|
$ |
1,711 |
Weighted diluted shares outstanding |
|
20,392,756 |
|
20,363,642 |
|
20,209,959 |
||
Diluted earnings per share as reported |
$ |
0.07 |
|
$ |
0.11 |
|
$ |
0.02 |
Total EPS effect |
$ |
0.04 |
$ |
0.06 |
$ |
0.06 |
||
Adjusted diluted earnings per share |
$ |
0.11 |
|
$ |
0.17 |
|
$ |
0.08 |
Reconciliation of Net Income to Adjusted EBITDA |
||||||||||||
Three Months Ended |
||||||||||||
|
|
|
||||||||||
Net Income |
$ |
1,719 |
|
|
$ |
2,431 |
|
|
$ |
532 |
|
|
Interest expense |
|
1,840 |
|
|
1,793 |
|
|
1,896 |
|
|||
Tax expense |
|
1,178 |
|
|
|
244 |
|
|
|
207 |
|
|
Depreciation and amortization expense |
|
2,651 |
|
|
2,794 |
|
|
2,869 |
|
|||
EBITDA |
$ |
7,388 |
|
|
$ |
7,262 |
|
|
$ |
5,504 |
|
|
Adjustments: |
||||||||||||
Stock compensation |
$ |
360 |
|
|
$ |
633 |
|
|
$ |
589 |
|
|
FX |
|
353 |
|
|
476 |
|
|
718 |
|
|||
Severance / restructuring costs |
|
- |
|
|
|
(51 |
) |
|
|
- |
|
|
Other |
|
- |
|
|
69 |
|
|
- |
|
|||
Total Adjustments |
$ |
713 |
|
|
$ |
1,127 |
|
|
$ |
1,307 |
|
|
Adjusted EBITDA |
$ |
8,101 |
|
$ |
8,389 |
|
$ |
6,811 |
|
|||
Adjusted EBITDA as % of sales |
|
10.6 |
% |
|
|
11.4 |
% |
|
|
9.3 |
% |
|
Net Debt |
||||||
|
|
|
||||
Total cash & cash equivalents |
$ |
5,303 |
$ |
5,054 |
$ |
7,302 |
Notes payable - short term |
$ |
21,153 |
$ |
22,658 |
$ |
23,857 |
Current portion of finance leases |
|
651 |
|
632 |
|
555 |
Notes payable - long term |
|
14,064 |
|
17,004 |
|
21,585 |
Finance lease obligations - LT |
|
2,444 |
|
2,609 |
|
3,093 |
Revolver, net |
|
50,923 |
|
48,531 |
|
45,982 |
Total debt |
$ |
89,235 |
$ |
91,434 |
$ |
95,072 |
Net debt |
$ |
83,932 |
$ |
86,380 |
$ |
87,770 |
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/20240807051696/en/
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