Manitex International Reports Fourth Quarter and Full-Year 2023 Results
FOURTH QUARTER 2023 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-
Net revenue of
$78.7 million -
Gross profit of
$16.4 million , +8.2%; gross margin of 20.9%, +162 basis points -
GAAP Net Income of
$5.2 million ; Adjusted Net Income of$6.3 million , or$0.31 per diluted share -
Adjusted EBITDA of
$8.0 million ; Adjusted EBITDA margin of 10.2% -
Net leverage of 2.9x as of
Dec. 31, 2023
FULL-YEAR 2023 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-
Net revenue of
$291.4 million , +6.4% -
Gross profit of
$62.4 million , +24.7%; gross margin of 21.4%, +313 basis points -
GAAP Net Income of
$7.4 million ; Adjusted Net Income of$12.4 million , or$0.61 per diluted share -
Adjusted EBITDA of
$29.6 million , +39.1%; Adjusted EBITDA margin of 10.1%, +239 basis points
MANAGEMENT COMMENTARY
“Our fourth quarter results were a solid finish to a record year at Manitex,” stated
“We executed on our commercial growth priorities, resulting in share gains within our North and South American markets, together with continued growth in our dealer network,” continued Coffey. “At an operational level, we materially improved our manufacturing velocity, allowing for meaningful improvement in unit production levels. These improvements are the result of newly implemented systems and processes, designed to benefit our scale. We also continued to develop a performance-driven, data-centric organization with the implementation of advanced technologies that equip us to reduce cost and standardize business processes. The combined benefit of these actions provide us a strong base for profitable expansion and growth, moving forward.”
“Entering 2024, we will seek to prioritize new product development, together with further expansion of our dealer network, particularly as it relates to our PM Crane product sales in North America,” continued Coffey. “We will further improve our sourcing capabilities to deliver a more robust, efficient and cost-effective supply chain. We are also poised to continue to improve our production output, enabling needed growth and improving our fixed cost absorption. These objectives are key parts of our Elevating Excellence strategy and we remain on track to achieve our operational goals.”
“Our decision to prioritize higher-value business is a central tenet of our value creation strategy,” continued Coffey. “We are committed to improving margins, necessitating more focus on the value of certain products over others. Under-performing products have been scaled back or discontinued and we are more focused on the delivered value to our product offering, not just the size of the backlog. Our backlog remains very healthy with the added benefit of increased value embedded in new orders taken during the past year. At year-end 2023, our total backlog stood at
"Our fourth quarter performance reflects the second highest quarterly revenue run-rate in the last five years,” noted Coffey. “Gross margin increased more than 160 basis points to 20.9% in the fourth quarter, despite continued headwinds from rising steel prices in
“We remain focused on reducing our net leverage profile,” stated
“I am proud of our management and team. We are ahead of schedule and well positioned thanks to their dedication and efforts,” stated Coffey. “We are entering the new year with great momentum and a track-record of results. We expect another year of solid revenue growth and margin expansion in 2024. Elevating Excellence is a 3-year strategy, by design. Business transformations, such as ours take time. We are ahead of schedule, however, and confident in our future.”
FOURTH QUARTER 2023 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 GAAP Net Income of
Adjusted EBITDA was
As of
BALANCE SHEET AND LIQUIDITY
As of
STRATEGIC UPDATE - ELEVATING EXCELLENCE INITIATIVE
In early 2023,
With the significant progress achieved during 2023, the key priorities for 2024 are as follows:
-
Commercial Growth. An important component of Manitex’s targeted commercial growth strategy is increasing the market share of key product platforms in
North America and, specifically, enhancing the penetration of itsPM Group products domestically. A key driver of this initiative involves expansion of the dealer network in theU.S. , which is a significant priority in 2024. This year, the Company is targeting the addition of 2 to 3 new dealer agreements in theU.S. that will be focused primarily on the PM product portfolio. In addition,Manitex expects to introduce innovative new product platforms during the year, including offerings focused on high-lift aerial work platforms, electric cranes, and articulated cranes. -
Enhanced Operating Performance.Consistent with a focus on ratable margin expansion,
Manitex remains focused on driving further supply chain efficiencies, additional improvements to manufacturing velocity, and targeted cost reduction measures. Between 2024 and 2025,Manitex expects to realize improved supply chain savings which will contribute to improve gross margin expansion. -
Disciplined Capital Allocation.
Manitex has adopted a returns-focused approach to capital allocation, while seeking to optimize its balance sheet and liquidity profile. At year-end 2023,Manitex has approximately$31 million of cash and availability under its existing credit facilities. Further, consistent with a focus on working capital efficiency, the Company will reduce total working capital, driving an improvement in free cash flow. These reductions will come from production level inventory reductions, leveraging new processes and better supply-chain relationships going forward. At year-end 2023,Manitex had reduced net leverage to 2.9x, below its long-term target of 3.0x. In 2024, management is increasingly focusing on opportunities for capital deployment beyond debt reduction, consistent with a focus on long-term shareholder value creation.
2024 FINANCIAL GUIDANCE
The following forward-looking guidance reflects the management’s current expectations and beliefs as of
|
Full-Year |
|
Full-Year |
|
2023 Actual |
|
2024 |
Total Revenue ($MM) |
|
|
|
Total Adjusted EBITDA ($MM) |
|
|
|
Total Adjusted EBITDA Margin |
10.1% |
|
10.5%* |
*Assumes mid-point of the guidance range. |
FOURTH QUARTER 2023 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: |
(877) 407-0792 |
||
International Live: |
(201) 689-8263 |
To listen to a replay of the teleconference, which will be available through
Domestic Replay: |
(844) 512-2921 |
||
International Replay: |
(412) 317-6671 |
||
Passcode: |
13743781 |
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) |
||||||
|
|
|||||
ASSETS |
||||||
Current assets |
||||||
Cash |
$ |
9,269 |
$ |
7,973 |
||
Cash – restricted |
|
212 |
|
217 |
||
Trade receivables (net) |
|
49,118 |
|
43,856 |
||
Other receivables |
|
553 |
|
1,750 |
||
Inventory (net) |
|
82,337 |
|
69,801 |
||
Prepaid expense and other current assets |
|
4,084 |
|
3,907 |
||
Total current assets |
|
145,573 |
|
127,504 |
||
Total fixed assets, net of accumulated depreciation of |
|
49,560 |
|
51,697 |
||
Operating lease assets |
|
7,416 |
|
5,667 |
||
Intangible assets (net) |
|
12,225 |
|
14,367 |
||
|
|
37,354 |
|
36,916 |
||
Deferred tax assets |
|
3,603 |
|
452 |
||
Total assets |
$ |
255,731 |
$ |
236,603 |
||
LIABILITIES AND EQUITY |
||||||
Current liabilities |
||||||
Accounts payable |
$ |
47,644 |
$ |
45,682 |
||
Accrued expenses |
|
14,503 |
|
12,379 |
||
Related party payables (net) |
|
27 |
|
60 |
||
Notes payable (net) |
|
25,528 |
|
22,666 |
||
Current portion of finance lease obligations |
|
605 |
|
509 |
||
Current portion of operating lease obligations |
|
2,100 |
|
1,758 |
||
Customer deposits |
|
2,384 |
|
3,407 |
||
Total current liabilities |
|
92,791 |
|
86,461 |
||
Long-term liabilities |
||||||
Revolving term credit facilities (net) |
|
47,629 |
|
41,479 |
||
Notes payable (net) |
|
18,401 |
|
22,261 |
||
Finance lease obligations (net of current portion) |
|
2,777 |
|
3,382 |
||
Operating lease obligations (net of current portion) |
|
5,315 |
|
3,909 |
||
Deferred gain on sale of property |
|
347 |
|
427 |
||
Deferred tax liability |
|
4,145 |
|
5,151 |
||
Other long-term liabilities |
|
4,642 |
|
5,572 |
||
Total long-term liabilities |
|
83,256 |
|
82,181 |
||
Total liabilities |
|
176,047 |
|
168,642 |
||
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, 20,254,894 and 20,107,014 shares issued and outstanding at |
|
134,328 |
|
133,289 |
||
Paid-in capital |
|
5,440 |
|
4,266 |
||
Retained deficit |
|
(65,982) |
|
(73,338) |
||
Accumulated other comprehensive loss |
|
(4,169) |
|
(5,822) |
||
Equity attributable to shareholders of |
|
69,617 |
|
58,395 |
||
Equity attributed to noncontrolling interest |
|
10,067 |
|
9,566 |
||
Total equity |
|
79,684 |
|
67,961 |
||
Total liabilities and equity |
$ |
255,731 |
$ |
236,603 |
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share amounts) (Unaudited) |
|||||||||||||
Three Months Ended
|
Year Ended
|
||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||
Net revenues |
$ |
78,653 |
$ |
78,820 |
$ |
291,389 |
$ |
273,854 |
|||||
Cost of sales |
|
62,231 |
|
63,637 |
|
229,037 |
|
223,835 |
|||||
Gross profit |
|
16,422 |
|
15,183 |
|
62,352 |
|
50,019 |
|||||
Operating expenses |
|||||||||||||
Research and development costs |
$ |
876 |
$ |
894 |
|
3,388 |
|
2,989 |
|||||
Selling, general and administrative expenses |
|
10,780 |
|
10,100 |
|
43,122 |
|
40,417 |
|||||
Transaction costs |
|
- |
|
- |
|
- |
|
2,236 |
|||||
Total operating expenses |
|
11,656 |
|
10,994 |
|
46,510 |
|
45,642 |
|||||
Operating income (loss) |
|
4,766 |
|
4,189 |
|
15,842 |
|
4,377 |
|||||
Other income (expense) |
|||||||||||||
Interest expense |
|
(2,116) |
|
(1,655) |
|
(7,774) |
|
(4,637) |
|||||
Interest income |
|
70 |
|
(1) |
|
211 |
|
2 |
|||||
Foreign currency transaction gain (loss) |
|
(883) |
|
(376) |
|
(2,539) |
|
(108) |
|||||
Other income (expense) |
|
263 |
|
46 |
|
(278) |
|
(1,818) |
|||||
Total other expense |
|
(2,666) |
|
(1,986) |
|
(10,380) |
|
(6,561) |
|||||
Income (loss) before income taxes |
|
2,100 |
|
2,203 |
|
5,462 |
|
(2,184) |
|||||
Income tax expense (benefit) |
|
(3,357) |
|
1,544 |
|
(2,395) |
|
2,114 |
|||||
Net income (loss) |
|
5,457 |
|
659 |
|
7,857 |
|
(4,298) |
|||||
Net income attributable to noncontrolling interest |
|
258 |
|
161 |
|
501 |
|
603 |
|||||
Net income (loss) attributable to shareholders of |
$ |
5,199 |
$ |
498 |
$ |
7,356 |
$ |
(4,901) |
|||||
Income (loss) per share |
|
||||||||||||
Basic |
$ |
0.26 |
$ |
0.02 |
$ |
0.36 |
$ |
(0.24) |
|||||
Diluted |
$ |
0.26 |
$ |
0.02 |
$ |
0.36 |
$ |
(0.24) |
|||||
Weighted average common shares outstanding |
|||||||||||||
Basic |
|
20,255,443 |
|
20,103,398 |
|
20,209,132 |
|
20,055,836 |
|||||
Diluted |
|
20,306,534 |
|
20,103,398 |
|
20,223,825 |
|
20,055,836 |
|
|||||||||||||||||
Three Months Ended |
|||||||||||||||||
|
|
|
|||||||||||||||
As Reported |
As Adjusted |
As Reported |
As Adjusted |
As Reported |
As Adjusted |
||||||||||||
Net sales |
$ |
78,653 |
$ |
78,653 |
$ |
71,331 |
$ |
71,331 |
$ |
78,820 |
$ |
78,820 |
|||||
% change Vs Q3 2023 |
|
10.3% |
|
10.3% |
|||||||||||||
% change Vs Q4 2022 |
|
(0.2%) |
|
(0.2%) |
|||||||||||||
Gross margin |
|
16,422 |
|
16,422 |
|
16,585 |
|
16,585 |
|
15,183 |
|
15,355 |
|||||
Gross margin % of net sales |
|
20.9% |
|
20.9% |
|
23.3% |
|
23.3% |
|
19.3% |
|
19.5% |
Backlog |
||||||
|
|
|
|
|
||
Backlog from continuing operations |
170,286 |
196,872 |
223,236 |
238,096 |
230,206 |
|
Change Versus Current Period |
(13.5%) |
(23.7%) |
(28.5%) |
(26.0%) |
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 |
$ |
5,199 |
$ |
1,700 |
$ |
498 |
||
Adjustments, including net tax impact |
|
1,116 |
|
1,222 |
|
1,332 |
||
Adjusted net income attributable to shareholders of |
$ |
6,315 |
$ |
2,922 |
$ |
1,830 |
||
Weighted diluted shares outstanding |
|
20,306,534 |
|
20,254,830 |
|
20,103,398 |
||
Diluted earnings per share as reported |
$ |
0.26 |
$ |
0.08 |
$ |
0.02 |
||
Total EPS effect |
$ |
0.05 |
$ |
0.06 |
$ |
0.07 |
||
Adjusted diluted earnings per share |
$ |
0.31 |
$ |
0.14 |
$ |
0.09 |
||
Reconciliation of GAAP Net Income to Adjusted EBITDA |
||||||||
Three Months Ended |
||||||||
|
|
|
||||||
Net Income |
$ |
5,457 |
$ |
1,894 |
$ |
659 |
||
Interest expense |
|
2,046 |
|
1,856 |
|
1,655 |
||
Tax expense |
|
(3,357) |
|
742 |
|
1,544 |
||
Depreciation and amortization expense |
|
2,760 |
|
2,739 |
|
2,885 |
||
EBITDA |
$ |
6,906 |
$ |
7,231 |
$ |
6,743 |
||
Adjustments: |
||||||||
Stock compensation |
$ |
463 |
$ |
457 |
$ |
633 |
||
FX |
|
883 |
|
883 |
|
376 |
||
Pension settlement |
|
(230) |
|
(118) |
|
- |
||
Litigation / legal settlement |
|
- |
|
- |
|
178 |
||
Severance / restructuring costs |
|
- |
|
- |
|
108 |
||
Other |
|
- |
|
- |
|
91 |
||
Total Adjustments |
$ |
1,116 |
$ |
1,222 |
$ |
1,386 |
||
Adjusted EBITDA |
$ |
8,022 |
$ |
8,453 |
$ |
8,129 |
||
Adjusted EBITDA as % of sales |
|
10.2% |
|
11.9% |
|
10.3% |
Net Debt |
||||||||
|
|
|
||||||
Total cash & cash equivalents |
$ |
9,481 |
$ |
4,876 |
$ |
8,190 |
||
Notes payable - short term |
$ |
25,528 |
$ |
18,640 |
$ |
22,666 |
||
Current portion of finance leases |
|
605 |
|
579 |
|
509 |
||
Notes payable - long term |
|
18,401 |
|
20,857 |
|
22,261 |
||
Finance lease obligations - LT |
|
2,777 |
|
2,940 |
|
3,382 |
||
Revolver, net |
|
47,629 |
|
48,259 |
|
41,479 |
||
Total debt |
$ |
94,940 |
$ |
91,275 |
$ |
90,297 |
||
Net debt |
$ |
85,459 |
$ |
86,399 |
$ |
82,107 |
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/20240229765214/en/
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