Manitex Second-Quarter 2018 Net Revenue Up 22.8%
August 8, 2018 - Manitex International, Inc., Bridgeview, Ill., has announced its second-quarter 2018 results. Net revenue for the second quarter was $63.9 million, up 22.8% from $52.1 million in the same period last year.
Continuing operations showed a net loss of $(1.0) million, or $(0.05) per share, compared to a net loss of $(1.5) million, or $(0.09) per share in the second quarter of 2017.
Adjusted net income from continuing operations in the second quarter 2018 was $1.9 million, or $0.11 per share, compared to an adjusted net loss of $(1.0) million, or $(0.06) per share, for the second quarter of 2017.
Highlights (versus prior year, unless otherwise noted):
$63.9 million net revenue, up 22.8%.
Adjusted EBITDA increased 188% to $5.2 million, or 8.1% of sales, from $1.8 million or 3.5% of sales.
Adjusted earnings per share improved to $0.11 compared to an adjusted loss per share of $(0.06)
Backlog declined moderately from $88 million in Q1 2018 to $76 million, up 59% from Q2 2017
$32.7 million strategic investment by Tadano.
Net debt of $51 million represents a $39-million reduction from end of 2017.
“The results reported today continue to show steady improvement in our operations, with growth in sales, margins, and adjusted income. However, we believe, the most significant event which occurred in the second quarter was the $32.7-million investment in Manitex by Tadano Corporation,” said Manitex CEO David J. Langevin.
“The Tadano investment has enabled us to reduce our net debt to approximately $51 million, which represents a $144-million reduction from its peak level just over three years ago. We believe we now have sufficient working capital position to execute our global growth plans and take advantage of opportunities that our new relationship with Tadano presents,” Langevin added.
Steve Kiefer, president and chief operating officer of Manitex, said, “In the quarter, we generated improved revenue and earnings reflecting strengthening global demand for our products and operational execution of our sales and manufacturing teams. Revenue of $63.9 million increased 23% versus the same period last year, and 13% versus the previous quarter.”
Kiefer added, “Our ongoing efforts to diligently manage near-term currency, inflation and supply chain challenges allowed us to maintain our gross margin compared to last quarter and increase by 140 basis points versus the same period last year. To offset supply chain inflation and continue gross profit expansion, we are currently executing the necessary cost reductions and operational improvements that we believe will allow us to achieve our near-term target of gross margin exceeding 20% and EBITDA margins of 10%.”
Kiefer continued: "We saw our core product lines well positioned to allow us to take advantage of the overall strength within the industrial goods market during the quarter. As of the end of the June quarter, backlog for our European Group, primarily consisting of our PM global knuckleboom business, was up 133 percent compared to the same period last year. Going forward, we are confident that revenues contributed by PM will continue growing as a percentage of our total enterprise revenues, through ongoing dealer development and new product enhancements, as well as our important partnership with Tadano, particularly in Asia and the Middle East,” Kiefer said.
"On the straight mast side, as we previously reported, we experienced a spike in order rate at the beginning of the year which has since moderated, and the total industry volume was approximately 800 units for the first half of the year, a healthy level, still below peak with potential to continue to go higher. 65% of our backlog is comprised of cranes with ratings of 30 tons and higher being driven by activity within the energy, utility, infrastructure and general rental segments,” Kiefer added.
"Going forward, we remain focused on operational execution, revenue expansion, and new product development, and we are working hard to increase value for our customers, shareholders, employees and other stakeholders,” Kiefer concluded.
