Manitex International, Inc. Reports First Quarter 2016 Results
/EINPresswire.com/ -- BRIDGEVIEW, IL -- (Marketwired) -- 05/05/16 -- Manitex International, Inc. (NASDAQ: MNTX), a leading international provider of cranes and specialized material and container handling equipment, today announced First Quarter 2016 results.
For the three months ended March 31 2016, the Company reported net income attributable to shareholders of Manitex International of $1.5 million or $0.09 per share, on net revenues of $102.4 million, compared to a net loss of ($0.2) million or ($0.01) per share on sales of $101.0 million for the three months ended March 31 2015. Net income attributable to shareholders of Manitex International adjusted for transaction related and restructuring related items for the three months ended March 31 2016 was $0.3 million or $0.02 per share, compared to $1.5 million or $0.10 per share for the three months ended March 31 2015. (The Glossary at the end of this press release contains further details regarding these adjustments).
First Quarter 2016 Financial Highlights:
- Net revenues increased to $102.4 million representing a year-over-year increase of 1.3% from $101.0 million, and an increase of 9.5% from $93.5 million in the fourth quarter of 2015.
- Gross margin of 18.0% compared to adjusted gross margin of 17.4% in the fourth quarter of 2015 and adjusted gross margin of 18.7% in last year's same period.
- Cost reductions of $2.2 million achieved, equal to 40% of 2016 target.
- Adjusted EBITDA of $6.5 million or 6.3% of sales compared to adjusted EBITDA of $7.9 million or 7.8% of sales for the first quarter of 2015.
- Repaid $6.7 million of term debt, including full repayment of US recourse term bank debt.
- Sold non-core terminal tractor product line, realizing after-tax gain of $1.2 million or $0.07 per share.
- Consolidated backlog was $78.6 million at March 31 2016, compared to $82.5 million at December 31, 2015.
Chairman and Chief Executive Officer, David Langevin, commented, "We started the year off at a reasonable level in light of continued market sluggishness in our sector. At the present time, we see the North American market for straight mast cranes continuing at low levels. However, based upon the order rate in the market for the first quarter, we may have seen the bottom. Further, while the global markets for industrial equipment are running at such low levels, we have the opportunity at this time to concentrate on the stated goals that we outlined in our annual earnings release, namely to execute on our cost reduction programs throughout our company, continue to integrate PM, expand ASV branded distribution, refocus our product line to our higher margin businesses and to continue to reduce debt.
"We are carefully managing our balance sheet and capital resources, and while we reported a total debt at the end of the quarter that was up from year end, it is important to note that this represents a temporary increase in our working capital lines to bridge a $23 million increase in receivables and relatively flat inventory on $8.9 million in higher sales. We have paid down the entirety of our term debt from the PM acquisition in just one year, which represents a portion of the $6.7 million in overall term debt paid down in the quarter and we expect further working capital improvements, net debt reductions, and improved cash conversion throughout the coming year. We believe that successful execution of our strategy, as outlined above, will drive growth of our highest margin products, achieve stronger cash generation, improve our balance sheet, and yield significant returns to our shareholders," Mr. Langevin continued.
Continuing Operations: Segment Results
As Reported As Adjusted
-------------------- --------------------
Three Months Ended Three Months Ended
March 31 March 31
-------------------- --------------------
$000 2016 2015 2016 2015
--------- --------- --------- ---------
Consolidated
Net Revenues 102,361 101,042 102,361 101,042
Operating Income 3,357 2,050 3,357 5,077
Operating Margin % 3.3% 2.0% 3.3% 5.0%
Lifting Segment
Net Revenues 70,189 66,662 70,189 66,662
Operating Income 4,228 2,720 4,768 3,777
Operating Margin % 6.0% 4.1% 6.8% 5.7%
ASV Segment
Net Revenues 28,468 32,061 28,468 32,061
Operating Income 1,027 1,979 1,027 2,808
Operating Margin % 3.6% 6.2% 3.6% 8.8%
Equipment Distribution Segment
Net Revenues 5,551 3,490 5,551 3,490
Operating Income 154 30 -386 30
Operating Margin % 2.8% 0.9% -7.0% 0.9%
Corporate & Eliminations
Revenue eliminations 1,847 1,171 1,847 1,171
Corporate charges & inter segment
profit in inventory 2,052 2,679 2,052 3,820
(The Glossary at the end of this press release contains further details regarding As Adjusted items).
Lifting Segment Results
- Net revenues increased 5.3% or $3.5 million to $70.2 million for the quarter. PM Group sales reflected a full quarter of sales in 2016 compared to 75 days in the first quarter of 2015, but also showed sales growth in North America and both West and East Europe in particular. PM product mix was relatively stable year over year with the exception of stronger demand in 2016 for aerial platforms. Sales of Manitex straight mast and industrial cranes were down year over year by approximately $3.6 million, with a sales mix skewed to lower capacity units. Sales of military material handling equipment increased year over year with shipments under our long term government contracts ramping up in the quarter.
- Operating income on an adjusted basis was 6.8% of sales compared to 5.7% in 2015. Gross profit for the three months ended March 2016 was adversely affected by lower volumes affecting absorption and higher sales of lower capacity straight mast cranes and chassis which was partially offset by stronger margins on military sales. Lower operating expenses resulting from cost containment actions offset the lower margin on sales.
ASV Segment Results
- Net revenues of $28.5 million were $3.6 million lower than the first quarter of 2015, with the shortfall in revenues resulting from a $5.3 million reduction in demand for undercarriages that offset a 9% increase in sales of machines. Undercarriage sales in the first quarter of 2015 were elevated due to acceleration of orders by the customer to accommodate their production schedules. Sales of machines improved 9% year over year and ASV branded product continued to expand on a quarter over quarter basis. Gross margins were negatively impacted by tighter pricing in certain machine categories which offsetting the improved mix of track loaders compared to skid steers. Operating income of $1.0 million was adversely impacted by reduced gross margin from the lower volume and mix of sales, lowering operating margin to 3.6% for the quarter.
- ASV distribution expanded to 119 locations in North America, up from approximately 100 at the end of 2015 and from zero upon the closing of the transaction. At the end of the quarter ASV now also has its first branded dealers in Canada which is an important market for its product and from which we expect there to be good opportunities.
Equipment Distribution Segment Results
- Net revenues increased $2.1 million to $5.6 million for the quarter ended March 31 2016 compared to the quarter ending March 31 2015. Sales of new and remarketed equipment were lower than the comparative period with the exception of sales at zero margin to expand the division's rental fleet operations. The lower level of retail sales, reflecting the continuing soft demand for equipment, was partially offset by improved parts, service and other revenues. Operating loss on an adjusted basis was ($0.4 million) in the quarter with reduced gross margin and operating expenses including costs related to the expansion of the rental fleet operations.
Andrew Rooke, Manitex International President and Chief Operating Officer, commented, "The first quarter saw further progress with our strategic and operational priorities. Repayments of $6.7 million were made on term debt and at the end of the quarter we had fully repaid the US recourse $14 million term loan for the PM acquisition. Our working capital did increase in the quarter, although we expect this to be largely a temporary effect. The working capital increase came principally from a $23 million increase in receivables driven by the timing and the higher level of sales quarter over quarter, together with the timing of some European shipments at the end of the quarter. Cost reduction and the balancing of activity with demand remain a high focus and despite some significant adverse sales mix comparisons, we achieved a gross margin very comparable with that of the adjusted margin for the first quarter of 2015. Contributing to this are our cost reduction initiatives established in 2015, where we set ourselves a target of $15 million of savings over the three years, 2015 to 2017. We achieved $2.2 million of savings in the first quarter equal to 40% of our annual 2016 target and currently expect to continue to exceed our 2016 target."
Conference Call:
Management will host a conference call at 4:30 PM Eastern Time today to discuss the results with the investment community. Anyone interested in participating in the call should dial 888-510-1786 if calling within the United States or 719-325-2484 if calling internationally. A replay will be available until May 12, 2016 which can be accessed by dialing 877-870-5176 if calling within the United States or 858-384-5517 if calling internationally. Please use passcode 4006554 to access the replay. The call will additionally be broadcast live and archived for 90 days over the internet with accompanying slides, accessible at the investor relations portion of the Company's corporate website, www.manitexinternational.com/eventspresentations.aspx.
About Manitex International, Inc.
Manitex International, Inc. is a leading worldwide provider of highly engineered specialized equipment including boom truck, truck and knuckle boom cranes, container handling equipment and reach stackers, rough terrain forklifts, and other related equipment. Our products, which are manufactured in facilities located in the USA, Canada, and Italy, are targeted to selected niche markets where their unique designs and engineering excellence fill the needs of our customers and provide a competitive advantage. We have consistently added to our portfolio of branded products and equipment both through internal development and focused acquisitions to diversify and expand our sales and profit base while remaining committed to our niche market strategy. Our brands include Manitex, PM, O&S, CVS Ferrari, Badger, Liftking, Sabre, and Valla. ASV, our venture with Terex Corporation, manufactures and sells a line of high quality compact track and skid steer loaders.
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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share amounts)
Three Months Ended
March 31,
----------------------------
2016 2015
------------- -------------
Unaudited Unaudited
Net revenues $ 102,361 $ 101,042
Cost of sales 83,916 83,040
------------- -------------
Gross profit 18,445 18,002
Operating expenses
Research and development costs 1,489 1,101
Selling, general and administrative expenses 13,599 14,851
------------- -------------
Total operating expenses 15,088 15,952
------------- -------------
Operating income 3,357 2,050
Other income (expense)
Interest expense (3,113) (2,844)
Foreign currency transaction (loss) gain (537) 945
Other income (expense) 2,182 (18)
------------- -------------
Total other expense (1,468) (1,917)
------------- -------------
Income before income taxes and loss in non-
marketable equity interest from continuing
operations 1,889 133
Income tax expense from continuing operations 517 31
Loss in non-marketable equity interest, net of
taxes (39) (39)
------------- -------------
Net income from continuing operations 1,333 63
Discontinued operations
Income from operations of discontinued
operations -- 10
Income tax expense -- 3
------------- -------------
Income on discontinued operations -- 7
------------- -------------
Net income 1,333 70
Net loss (income) attributable to
noncontrolling interest 127 (294)
------------- -------------
Net income (loss) attributable to
shareholders of Manitex International,
Inc. $ 1,460 $ (224)
============= =============
Earnings (loss) Per Share
Basic
Earnings (loss) from continuing operations
attributable to shareholders of Manitex
International, Inc. $ 0.09 $ (0.01)
Income (loss) from discontinued operations
attributable to shareholders of Manitex
International, Inc. $ - $ -
Earnings (loss) attributable to
shareholders of Manitex International,
Inc. $ 0.09 $ (0.01)
Diluted
Earnings (loss) from continuing operations
attributable to shareholders of Manitex
International, Inc. $ 0.09 $ (0.01)
Income (loss) from discontinued operations
attributable to shareholders of Manitex
International, Inc. $ - $ -
Earnings (loss) attributable to
shareholders of Manitex International,
Inc. $ 0.09 $ (0.01)
Weighted average common shares outstanding
Basic 16,105,601 15,836,423
Diluted 16,105,982 15,836,423
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
March 31, December 31,
2016 2015
------------- -------------
Unaudited Unaudited
ASSETS
Current assets
Cash $ 3,929 $ 8,578
Trade receivables (net) 86,285 63,388
Accounts receivable from related party 769 388
Other receivables 4,745 3,254
Inventory (net) 120,188 119,269
Deferred tax asset 2,951 2,951
Prepaid expense and other 4,218 4,872
------------- -------------
Total current assets 223,085 202,700
------------- -------------
Total fixed assets (net) 41,775 41,985
Intangible assets (net) 70,166 70,629
Goodwill 81,572 80,089
Other long-term assets 1,819 1,704
Non-marketable equity investment 5,713 5,752
------------- -------------
Total assets $ 424,130 $ 402,859
============= =============
LIABILITIES AND EQUITY
Current liabilities
Notes payable--short term $ 40,327 $ 30,323
Revolving credit facilities 2,392 1,795
Current portion of capital lease obligations 866 1,004
Accounts payable 65,334 62,137
Accounts payable related parties 1,899 1,611
Accrued expenses 20,842 21,053
Other current liabilities 2,779 2,113
------------- -------------
Total current liabilities 134,439 120,036
------------- -------------
Long-term liabilities
Revolving term credit facilities 51,372 46,097
Notes payable 61,685 66,340
Capital lease obligations 5,751 5,850
Convertible note-related party (net) 6,770 6,737
Convertible note (net) 13,972 13,923
Deferred gain on sale of property 1,145 1,288
Deferred tax liability 4,593 4,525
Other long-term liabilities 7,858 7,763
------------- -------------
Total long-term liabilities 153,146 152,523
------------- -------------
Total liabilities 287,585 272,559
------------- -------------
Commitments and contingencies
Equity
Preferred Stock--Authorized 150,000 shares,
no shares issued or outstanding at March
31, 2016 and December 31, 2015 -- --
Common Stock--no par value 25,000,000 shares
authorized, 16,125,661 and 16,072,100
shares issued and outstanding at March 31,
2016 and December 31, 2015, respectively 93,678 93,186
Paid in capital 2,531 2,630
Retained earnings 18,048 16,588
Accumulated other comprehensive loss (3,323) (5,392)
------------- -------------
Equity attributable to shareholders of
Manitex International, Inc. 110,934 107,012
Equity attributable to noncontrolling
interest 25,611 23,288
------------- -------------
Total equity 136,545 130,300
------------- -------------
Total liabilities and equity $ 424,130 $ 402,859
============= =============
MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
(In thousands) March 31,
2016 2015
----------- -----------
Unaudited Unaudited
Cash flows from operating activities:
Net income $ 1,333 $ 70
Adjustments to reconcile net income to cash used
for operating activities:
Depreciation and amortization 3,110 2,818
Changes in allowances for doubtful accounts 312 82
Changes in inventory reserves 305 14
Deferred income taxes (16) (85)
Amortization of deferred debt issuance costs 321 323
Amortization of debt discount 143 180
Change in value of interest rate swaps (386) -
Loss in non-marketable equity interest 39 39
Share-based compensation 285 573
Adjustment to deferred gain on sales and lease
back (118) -
Gain on disposal of assets (2,170) (8)
Reserves for uncertain tax provisions 16 4
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (23,108) 1,181
(Increase) decrease in inventory (2,895) (3,326)
(Increase) decrease in prepaid expenses 688 (3,231)
(Increase) decrease in other assets 77 (147)
Increase (decrease) in accounts payable 1,819 2,693
Increase (decrease) in accrued expense (749) (14)
Increase (decrease) in income tax payable on
ASV conversion - (16,500)
Increase (decrease) in other current
liabilities 561 128
Increase (decrease) in other long-term
liabilities (127) (338)
Discontinued operations - cash provided by
operating activities - 163
----------- -----------
Net cash used for operating activities (20,560) (15,381)
----------- -----------
Cash flows from investing activities:
Acquisition of business, net of cash acquired - (18,991)
Proceeds from the sale of fixed assets - 11
Proceeds from the sale of intellectual property
(Note 17) 2,205 -
Purchase of property and equipment (370) (532)
Investment in intangibles other than goodwill (19) -
Investment received from noncontrolling interest
(Note 17) 2,450 -
----------- -----------
Net cash provided by (used for) investing
activities 4,266 (19,512)
----------- -----------
Cash flows from financing activities:
Borrowing on revolving term credit facilities 5,295 5,313
Net borrowings on working capital facilities 9,318 3,177
New borrowings-convertible notes - 15,000
New borrowings-term loan - 14,000
New borrowings-other 701 4,323
Debt issuance costs incurred (394) (1,089)
Note payments (7,359) (3,118)
Shares repurchased for income tax withholding on
share-based compensation (42) -
Proceeds from sale and lease back (Note 13) 4,080 -
Payments on capital lease obligations (238) (358)
Discontinued operations - cash used for
financing activities - (29)
----------- -----------
Net cash provided by financing activities 11,361 37,219
----------- -----------
Net increase (decrease) in cash and cash
equivalents (4,933) 2,326
Effect of exchange rate changes on cash 284 (1,118)
Cash and cash equivalents at the beginning of the
year 8,578 4,370
----------- -----------
Cash and cash equivalents at end of period $ 3,929 $ 5,578
=========== ===========
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 non-GAAP 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 both GAAP and 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 March 31, 2016, unless otherwise indicated.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial measures: "Adjusted EBITDA" (GAAP Operating Income adjusted for acquisition transaction related expense, restructuring and related expense, and Foreign exchange and other, and depreciation and amortization) and Adjusted Net Income (net income attributable to Manitex shareholders adjusted for acquisition transaction related and restructuring and related expense, net of tax, and change in net income attributable to noncontrolling interest). These non-GAAP terms, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Neither Adjusted Net Income nor Adjusted EBITDA are a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA and Adjusted Net Income are significant components in understanding and assessing financial performance. Adjusted EBITDA and Adjusted Net Income 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 Operating Income to Adjusted EBITDA and Adjusted Net Income is provided below.
The Company's management believes that Adjusted EBITDA and Adjusted EBITDA as a percentage of sales and Adjusted Net Income represent key operating metrics for its business. GAAP Operating Income adjusted for acquisition transaction related expense, restructuring and related expense, Foreign exchange and other, and depreciation and amortization (Adjusted EBITDA), and Adjusted Net Income, GAAP net income adjusted for acquisition transaction and restructuring related expense are a key indicator used by management to evaluate operating performance. While Adjusted EBITDA and Adjusted Net Income are 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 these measures are useful to investors in assessing our operating results, capital expenditure and working capital requirements and the ongoing performance of its underlying businesses. These calculations may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of Adjusted EBITDA and Adjusted Net Income to GAAP financial measures for the three month periods ended March 31, 2015 and 2016 is included with this press release below and with the Company's related Form 8-K.
Reconciliation of GAAP Operating Income to Adjusted EBITDA (in thousands)
----------------------------------------------------------------------------
Three Months Ended
----------------------------------------------------------------------------
March 31, March 31,
2016 2015
----------------------------------------------------------------------------
Operating income $3,357 $2,050
----------------------------------------------------------------------------
Pre-tax:- transaction related, restructuring and
related expense and foreign exchange and other
adjustments -- 3,044
----------------------------------------------------------------------------
Depreciation & Amortization 3,110 2,818
----------------------------------------------------------------------------
Adjusted Earnings before interest, taxes, depreciation
and amortization (Adjusted EBITDA) $6,467 $7,912
----------------------------------------------------------------------------
Adjusted EBITDA % to sales 6.3% 7.8%
----------------------------------------------------------------------------
Reconciliation of GAAP Net Income (loss) Attributable to Shareholders of
Manitex International to Adjusted Net Income (loss) Attributable to
Shareholders of Manitex International (in thousands)
----------------------------------------------------------------------------
Three Months Ended
----------------------------------------------------------------------------
March 31, March 31,
2016 2015
----------------------------------------------------------------------------
Net income (loss) attributable to shareholders $1,460 $(224)
----------------------------------------------------------------------------
Pre - tax:- transaction related, restructuring and
related and Foreign Exchange and other expense
adjustments (1,983) 3,044
----------------------------------------------------------------------------
Tax effect based on effective tax rate 793 (896)
----------------------------------------------------------------------------
Change in net income attributable to noncontrolling
interest -- (406)
----------------------------------------------------------------------------
Adjusted Net Income attributable to Manitex
shareholders $270 $1,518
----------------------------------------------------------------------------
Weighted average diluted shares outstanding 16,105,601 15,836,423
----------------------------------------------------------------------------
Diluted earnings (loss) per share attributable to
shareholders as reported $0.09 $(0.01)
----------------------------------------------------------------------------
Total EPS Effect $(0.07) $0.11
----------------------------------------------------------------------------
Adjusted Diluted earnings per share attributable to
shareholders $0.02 $0.10
----------------------------------------------------------------------------
Transaction and restructuring related expense
After tax expense and per share amounts (Adjusted Net Income) are calculated using pre-tax amounts, applying a tax rate based on the effective tax rate to arrive at an after-tax amount. This number is divided by the weighted average diluted shares to provide the impact on earnings per share. The company assesses the impact of these items because when discussing earnings per share, the Company adjusts for items it believes are not reflective of operating activities in the periods.
---------------------------------------------------------------------------- Three Months Ended March 31, 2016 Pre-tax After-tax EPS ---------------------------------------------------------------------------- Transaction related $1,983 $1,190 $0.07 ---------------------------------------------------------------------------- Total $1,983 $1,190 $0.07 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three Months Ended March 31, 2015 Pre-tax After-tax EPS ---------------------------------------------------------------------------- Transaction related $2,687 $1,903 $0.12 ---------------------------------------------------------------------------- Restructuring and related expense $357 $245 $0.02 ---------------------------------------------------------------------------- Change in noncontrolling interest $(406) $(406) $(0.03) ---------------------------------------------------------------------------- Total $2,638 $1,742 $0.11 ----------------------------------------------------------------------------
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.
----------------------------------------------------------------------------
March 31, December 31, March 31,
2016 2015 2015
----------------------------------------------------------------------------
Backlog $78,563 $82,522 $100,732
----------------------------------------------------------------------------
3/31/2016 Decrease v prior periods (4.8%) (22.0%)
----------------------------------------------------------------------------
Current Ratio is calculated by dividing current assets by current liabilities.
----------------------------------------------------------------------------
March 31, 2016 December 31, 2015
----------------------------------------------------------------------------
Current Assets $223,085 $202,700
----------------------------------------------------------------------------
Current Liabilities 134,439 $120,036
----------------------------------------------------------------------------
Current Ratio 1.7 1.7
----------------------------------------------------------------------------
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, convertible notes and revolving credit facilities. Debt to Adjusted EBITDA ratio is calculated by dividing total debt at the balance sheet date by trailing twelve month Adjusted EBITDA.
----------------------------------------------------------------------------
March 31, 2016 December 31, 2015
----------------------------------------------------------------------------
Current portion of long term debt 40,327 30,323
----------------------------------------------------------------------------
Current portion of capital lease
obligations 866 1,004
----------------------------------------------------------------------------
Revolving credit facilities 2,392 1,795
----------------------------------------------------------------------------
Revolving term credit facilities 51,372 46,097
----------------------------------------------------------------------------
Notes payable - long term 61,685 66,340
----------------------------------------------------------------------------
Capital lease obligations 5,751 5,850
----------------------------------------------------------------------------
Convertible Notes 20,742 20,660
----------------------------------------------------------------------------
Debt $183,135 $172,069
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted EBITDA (TTM) $24,361 $25,775
----------------------------------------------------------------------------
Debt to Adjusted EBITDA Ratio 7.5 6.7
----------------------------------------------------------------------------
Interest Cover is calculated by dividing Adjusted EBITDA (GAAP Operating Income adjusted for acquisition transaction expense and restructuring related expense and other exceptional costs and depreciation and amortization) for the trailing twelve month period by interest expense as reported in the Consolidated Statement of Income for the same period.
----------------------------------------------------------------------------
12 Month Period 12 Month Period
April 1, 2015 to January 1 2015 to
March 31, 2016 December 31 2015
----------------------------------------------------------------------------
Adjusted EBITDA $24,361 $25,775
----------------------------------------------------------------------------
Interest Expense 13,253 12,984
----------------------------------------------------------------------------
Interest Cover Ratio 1.8 2.0
----------------------------------------------------------------------------
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.
Operating Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) 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.
----------------------------------------------------------------------------
March 31, December 31,
2016 2015
----------------------------------------------------------------------------
Trade receivables (net) $86,285 $63,388
----------------------------------------------------------------------------
Inventory (net) 120,188 119,269
----------------------------------------------------------------------------
Less: Accounts payable 65,334 62,137
----------------------------------------------------------------------------
Total Operating Working Capital $141,139 $120,520
----------------------------------------------------------------------------
% of Trailing Three Month Annualized Net Sales 34.5% 32.2%
----------------------------------------------------------------------------
Trailing Three Month Annualized Net Sales is calculated using the net sales for quarter, multiplied by four.
----------------------------------------------------------------------------
Three Months Ended
----------------------------------------------------------------------------
March 31, December 31, March 31,
2016 2015 2015
----------------------------------------------------------------------------
Net sales $102,361 $93,491 $101,042
----------------------------------------------------------------------------
Multiplied by 4 4 4 4
----------------------------------------------------------------------------
Trailing Three Month Annualized Net
Sales $409,444 $373,964 $404,168
----------------------------------------------------------------------------
Working capital is calculated as total current assets less total current liabilities
----------------------------------------------------------------------------
March 31, 2016 December 31, 2015
----------------------------------------------------------------------------
Total Current Assets $223,085 $202,700
----------------------------------------------------------------------------
Less: Total Current Liabilities 134,439 120,036
----------------------------------------------------------------------------
Working Capital $88,646 $82,664
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Company Contact
Manitex International, Inc.
David Langevin
Chairman and Chief Executive Officer
(708) 237-2060
Email Contact
Darrow Associates Inc.
Peter Seltzberg, Managing Director
Investor Relations
(516) 510-8768
Email Contact
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