Manitex International Inc., an international provider of cranes and specialized industrial equipment, have released their first quarter 2020 results.
Net revenues from continuing operations for the first quarter were $48.7 million, compared to $53.1 million in the fourth quarter last year, and net loss from continuing operations was $(7.0) million, or $(0.36) per share, of which $(0.38) was attributable to a $6.7 million non-cash charge related to goodwill and intangible asset impairment. This compares to a slight loss, or $(0.00) per share in the fourth quarter of 2019. Adjusted net income from continuing operations in the first quarter 2020 was $1.6 million, or $0.08 per share, compared to $1.3 million, or $0.07 per share, for the fourth quarter of 2019.
Q1 Financial Highlights (sequential comparisons, unless otherwise noted):
- Net revenues of $48.7 million, declined 8.2%
- Adjusted earnings per share of $0.08, representing an improvement of 14%
- Gross margin improved by 230 bps to 21.0%
- Adjusted EBITDA improved to $3.5 million, or 7.2% of sales
- Non-cash goodwill and intangible asset impairment of $(6.7) million or $(0.38) per share results in a net loss
- Available liquidity of approximately $46 million as of March 31, including over $22 million of cash and cash equivalents
Note: Results shown are from Continuing Operations
- PM Group hits record sales and profitability
- COVID-19 financial impact of $3 million in revenues due to shut downs
- CONEXPO orders of $2 million
- Backlog, which was $57 million as of March 31, declined 12%
- Book to bill ratio was 0.83:1 in Q1 2020
- Sabre classified as “Discontinued Operation” in Q1 2020 and subsequent financial reports until a transaction is completed
“Our commitment to the health and safety of our employees, customers, and business partners is the first priority for us at Manitex International, and we have taken every necessary step to keep our facilities clean and safe during the COVID-19 pandemic," said Steve Filipov, CEO of Manitex International. "The team delivered another solid quarter in what continues to be a very challenging business environment.
“Turning to our North American operations, we had a slower start to the year and were able to make up some of the shortfall in March. Our operations remained opened during the pandemic, which has allowed us to deliver on our backlog, and as you may know, Texas is a particularly industry-friendly state and did not issue mandatory shut-down orders. Thus far, we have not experienced any COVID-19 cases in our North American facilities. Manitex straight mast crane delivered a quarter in line with our expectations, which also, as we’ve commented, was tempered by lower unit volume/shipments that have trended throughout the industry, and we do see some slowing in orders in stick boom cranes and industrial products as we look forward into 2020.”
Filipov added, “We have now reopened our facilities in Italy and are now delivering cranes, parts, and services to our customers. While we had no cancellations or postponements from our customers in the quarter, and that is a notable difference from other downturns we’ve seen in the past, the situation remains difficult to forecast and we are taking every measure to reduce costs, conserve cash, and generate cash from operations. We have taken a number of measures globally to furlough employees, reduce work schedules, minimize capital expenditures, while operating within all the local laws and regulations, and health and safety codes.
“I am confident in our dedicated and diligent team, and we will navigate through this COVID-19 caused uncertainty by keeping focused on our customers, controlling our costs, and maintaining our liquidity."
Steve Kiefer, president and COO of Manitex added, “The dedicated team at Manitex worked hard to address the needs of our customers and dealers in the first quarter, which was subject to a not insignificant disruption with the global outbreak of COVID-19. Thanks to our multi-year diversification strategy, our products currently serve a diversified array of end-markets, supporting critical infrastructure needs. Energy sector net sales now represent less than 10% of our total sales, and our participation in critical market segments such as telecom, electrical utility, military, and construction continues to increase.
“As the world started to respond to COVID-19, in addition to additional health and safety measures that we implemented, we began the second quarter with an increased focus on identifying and implementing actions to reduce costs, maintaining our liquidity, and improving working capital performance. We believe that these cost-conscious measures will enable us to meet our margin targets and position us for recovery, when the equipment markets start to turn. On the revenues side, in early April, we introduced over seven new or improved products at the ConExpo trade show in Las Vegas. Customer reception to these products was positive and generated initial orders.”
Kiefer concluded, “Going forward, we will continue monitoring overall economic conditions and take all appropriate actions necessary to weather the storm and emerge from the COVID-19 pandemic a stronger company."