Manitex International, Inc.’s MNTX second-quarter 2015 adjusted earnings per share plunged significantly to 2 cents from 22 cents in the prior-year quarter. Earnings also missed the Zacks Consensus Estimate of 7 cents.
Including one-time items, the company posted earnings per share of 1 cent, compared with 22 cents in the prior-year quarter. Prior-year quarter results had no adjustments.
Revenues improved 54% to $105.6 million from $68.4 million in the year-ago quarter. Revenues also beat the Zacks Consensus Estimate of $104 million. Shares of Manitex rose as much as 11.4% after the company reported its second-quarter results on Aug 5.
Operational Update
Gross profit went up 48.8% to $19.6 million from $13 million in the prior-year quarter. Gross margin increased 70 basis points (bps) to 18.5% in the quarter. Selling, general and administrative expenses (SG&A) increased to $12.9 million from $7.4 million in the year-ago quarter. Operating income was $4.6 million, compared with $5.2 million in the prior-year quarter. Operating margin declined 320 bps year over year to 4.4%.
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) were $8 million, up 28.6% from $6.3 million in the year-ago quarter. EBITDA margin was 7.7% in the reported quarter compared with 9.2% in the prior-year quarter.
Financial Update
Manitex ended the quarter with cash and cash equivalents of $6.3 million compared with $4.4 million at the end of 2014. The company reported cash used for operations of $8.4 million for the period of six months ended Jun 30, 2015, compared with cash usage of $8.1 million in the comparable period last year.
Manitex’s total debt increased to $197 million as of Jun 30, 2015 from $112.3 million as of Dec 31, 2014. The company reported total backlog of $97.5 million as of Jun 30, 2015, which declined 5% from $102.5 million as of Jun 30, 2014.
Outlook
Manitex remains optimistic and prepared for a change in the cycle and demand for products. The company’s sales under military contracts at Liftking are expected to ramp up in the second half of 2015. Further, the recent acquisition of PM Group is securing orders on an international basis. Additionally, the introduction of the new ASV branded product into its distribution network is expected to expand geographic coverage and accelerate growth in the second half of the year.
Cost control, working capital management and debt reduction are Manitex’s main priorities. The company’s cost reduction initiative is ongoing and as of Jun 30, 2015 has delivered $2.0 million of the $4.0 million year over year and $15 million over three years cost reduction targets previously announced.
Manitex reduced its debt by $18.1 million, since the start of 2015. Throughout the second half of the year the company will continue to repay debt and strongly manage working capital balance.
Bridgeview, IL-based Manitex International is a leading provider of engineered lifting solutions including boom truck and rough terrain cranes, rough terrain forklifts, special mission oriented vehicles, container handling equipment and specialized trailers.
Manitex currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same industry are Atlas Copco AB ATLKY, Graco Inc. GGG and Luxfer Holdings PLC LXFR. All these stocks carry a Zacks Rank #2 (Buy).
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