Manitex Boom Trucks Lead Company Growth in Q2 2012
August 9, 2012—Manitex International, Bridgeview, Ill., reports that highlights for the second quarter of 2012 include a 42 percent increase of net revenues to a record $52.5 million, compared to the prior year's quarter of $37.1 million, and 23 percent compared to the first quarter 2012 revenues of $42.8 million.
Net income of $2.3 million or $0.20 per share increased 124 percent compared to the prior year's quarter of $1.0 million and $0.09 per share.
EBITDA increased 68 percent for the second quarter of 2012 to $5.1 million, equaling 9.7 percent of sales compared to $3.0 million or 8.2 percent for the second quarter of 2011.
Consolidated backlog of $149.6 million as of June 30, 2012, is a record level for the company, and represents a 79 percent year-to-date increase and is 195 percent higher than the comparable quarter's backlog a year ago.
David Langevin, chairman and CEO, said: "Our second quarter financial performance exceeded our expectations and delivered record quarterly sales and EPS. The year-over-year and sequential increases in our sales were led by Manitex boom trucks with growth also coming from each of our manufacturing operations, spanning a diverse range of end-markets. Our backlog continued to grow in the quarter, rising 79 percent since year-end, and our operating leverage continues to enable our bottom line growth to exceed that of our sales. Our production increases are proceeding as planned, and the demand for our products remains healthy, which as indicated in our continued backlog expansion to $150 million, represents a new company record as of the close of the quarter."
Second quarter 2012 revenue increase of $15.4 million was a result of strong demand for all products, the benefit of achieving production increases at several facilities, and increased shipments of material-handling equipment. Manitex boom truck product specifically was responsible for approximately 50 percent of the increase where the higher tonnage and higher reach boom trucks for the energy and power line construction sectors continue to represent the principal product in demand.
The remaining significant increases in year over year revenues were generated by specialized material-handling products and Load King trailers which was driven by strong end user demand in the energy and international sector. Sales of CVS specialized port and container handling equipment increased on a year over year quarterly basis driven by international sales. European markets although subdued remain in line with expectations. Compared to the first quarter of 2012, the 23 percent increase in revenues was a function of achieving planned increases in output ahead of schedule, together with the benefit of shipments of specialized material handling equipment.
Net income for the second quarter 2012 of $2.3 million or $0.20 per share was an increase of $1.3 million, (124 percent) or $0.11 per share, over the second quarter of 2011. The 42 percent year-over-year improvement in revenue resulted in an increase in gross profit of $3.3 million, which was partially offset by additional expenditures for R&D of $0.3 million and SG&A of $1.0 million. The Company expects to launch new product resulting from this R&D expenditure towards the end of quarter three, 2012, and benefit from the additional profitable growth opportunities in 2013. The increase in SG&A reflects the impact of increased sales related costs from expansion of our sales organization, commissions and increased performance related compensation. As a percent of revenue, SG&A expense declined by 1.8% to 11.3% of revenues compared to 13.2% for the second quarter of 2011.
Andrew Rooke, Manitex International president and COO, said: "Second quarter results benefitted from a strong order book coupled with manufacturing and supply chain efficiencies and expansion that delivered well ahead of plan. This was combined with good cost control in manufacturing to slightly improve our gross margin percentage, to 20.5 percent, and in operating expenses where we reduced our SG&A expense to sales ratio, to 11.3 percent for the quarter. We are particularly pleased to report that our net income more than doubled in the quarter. Working capital growth to support year to date revenue expansion of 39 percent has been achieved within our existing lines of credit and we have maintained appropriate and consistent working capital ratios. EBITDA for the quarter of $5.1 million, or 9.7 percent of sales, represents a quarterly record for us and is in-line with our long-term operating target range, and trailing twelve months EBITDA of $14.5 million provides a strong interest coverage ratio of 5.7. This performance suggests to us that we are well-positioned to continue to capture operating efficiencies and drive bottom-line performance for our shareholders. Lastly, subsequent to the quarter's end we completed a $4.1 million stock offering, the proceeds of which are being used to retire certain debt obligations which will further improve our balance sheet."
Langevin added: "We exceeded our expectations for the second quarter with consistent execution by our entire team, achieving revenue growth, earnings growth, and EBITDA margin expansion ahead of plan, and a healthy increase in the backlog. That said, given the signs of uncertainty and slowing growth in the global economy we maintain a cautiously optimistic view, and notwithstanding these conditions, we expect modest growth in the third quarter over the second, full year 2012 results that should show solid increases in sales and profits when compared to 2011, and continued improvements into next year."
