Manitex Internatinal, Inc. (NASDAQ:MNTX) Cnference Call Secnd Quarter 2016 August 4th, 2016
Frward Lking Statements & Nn GAAP Measures Safe Harbr Statement under the U.S. Private Securities Litigatin Refrm Act f 1995: This presentatin cntains statements that are frward-lking in nature which express the beliefs and expectatins f management including statements regarding the Cmpany s expected results f peratins r liquidity; statements cncerning prjectins, predictins, expectatins, estimates r frecasts as t ur business, financial and peratinal results and future ecnmic perfrmance; and statements f management s gals and bjectives and ther similar expressins cncerning matters that are nt histrical facts. In sme cases, yu can identify frward-lking statements by terminlgy such as anticipate, estimate, plan, prject, cntinuing, nging, expect, we believe, we intend, may, will, shuld, culd, and similar expressins. Such statements are based n current plans, estimates and expectatins and invlve a number f knwn and unknwn risks, uncertainties and ther factrs that culd cause the Cmpany's future results, perfrmance r achievements t differ significantly frm the results, perfrmance r achievements expressed r implied by such frward-lking statements. These factrs and additinal infrmatin are discussed in the Cmpany's filings with the Securities and Exchange Cmmissin and statements in this presentatin shuld be evaluated in light f these imprtant factrs. Althugh we believe that these statements are based upn reasnable assumptins, we cannt guarantee future results. Frward-lking statements speak nly as f the date n which they are made, and the Cmpany undertakes n bligatin t update publicly r revise any frward-lking statement, whether as a result f new infrmatin, future develpments r therwise. Nn-GAAP Measures: Manitex Internatinal frm time t time refers t varius nn-gaap (generally accepted accunting principles) financial measures in this presentatin. Manitex believes that this infrmatin is useful t understanding its perating results withut the impact f special items. See Manitex s Secnd Quarter 2016 Earnings Release n the Investr Relatins sectin f ur website www.manitexinternatinal.cm fr a descriptin and/r recnciliatin f these measures. 2
Summary Our bjectives mving int 2016 Cst reductin prgram t include plant cnslidatins Cntinue prgram f strategic ratinalizatin t drive grwth in highest margin prducts and perating units Cash generatin t cntinue debt reductin by a similar amunt as in 2015 Implementatin and executin f integratin f PM strategy Expand ASV thrugh new distributin 3
Cmmercial Overview Q2 market cnditins little change frm Q1-2016 Oil and gas demand very lw adversely impacting yy cmparisns fr cre crane prducts. Nrth American general cnstructin demand steady in the quarter and increasingly price cmpetitive. Straight mast market maintaining lw levels f activity and preference fr lwer capacity equipment. Knuckle bm crane market in cntrast grwing in abslute terms and in certain gegraphies eg Nrth America. Eurpean markets mdest imprvement. Significant activity and interest related t ur new acquisitin prducts PM sales strength in Q2-2016 in Italy & West Eurpe, and N America. ASV cntrlled distributin channels gaining mmentum. ASV branded prduct at ver 60% f quarterly machine shipments in Q2. New ASV dealer sign-ups at apprximately 119 lcatins. 6/30/16 Backlg f $63.6 millin (12/31/15, $82.5 millin, 3/31/16, $78.6 millin) Brad based rder bk: ASV 16%, PM 19% All ther 65%. 4
Cntinuing Operatins Adjusted Results Key Figures * USD thusands Q2-2016* Q2-2015* Q1-2016* Net sales $96,277 $100,513 $102,361 % change in 2016 t prir perid (4.2%) (5.9%) Adjusted Grss prfit 17,659 19,174 18,445 Grss margin % 18.3% 19.1% 18.0% Adjusted Net Incme 361 313 270 Adjusted Earnings per share $0.02 $0.02 $0.02 Adjusted Ebitda 6,170 7,863 6,467 Adjusted Ebitda % f Sales 6.4% 7.8% 6.3% Wrking capital 85,484 99,083 88,646 Backlg 63,612 91,316 78,563 % change in 2016 t prir perid (30.3%) (19.0%) * As adjusted. See recnciliatin t US GAAP n appendix 5
2016 Adjusted Operating Perfrmance Fcused manufacturer f engineered lifting $m Q2-2016 Q2-2015 sales $100.5 Currency translatin (0.2) Vlume (4.0) Q2-2016 sales $96.3 $m Q2-2016 Q2-2015 Adjusted net incme attributable t sharehlders $0.3 Grss margin frm sales (1.5) Operating expenses (0.3) Interest expense 0.2 Frex & minrity share 0.4 Tax 1.3 Q2-2016 Adjusted net incme attributable t sharehlders $0.4 6
Wrking Capital $000 2016 December 31, 2015 Wrking Capital $85,484 $82,664 Days sales utstanding (DSO) 71 62 Days payable utstanding (DPO) 70 72 Inventry turns 2.8 2.6 Current rati 1.7 1.7 Operating wrking capital 129,411 120,520 Operating wrking capital % f annualized last quarters sales (LQS) 33.6% 32.2% Wrking capital increase principally frm increase in receivables f $11.6 millin frm increased sales and timing f sales Current rati wuld be 2.2 at 2016 and 2.0 at December 2015 adjusting fr PM & CVS wrking capital facilities f $31.8 millin and $21.9m at December that are transactinal and therefre current, (cmpared t Nrth American term lines f credit that are lng term). 7
Debt USD millins PM ASV Manitex & CVS 6/30/16 6/30/16 6/30/16 6/30/16 Ttal Increase / (decrease) in Q2-2016 Wrking capital brrwings 18.2 12.3 50.6 81.1 (3.3) Bank term debt 31.8 33.0 -- 64.8 (3.0) Capital leases - - 6.5 6.5 (0.1) Cnvertible ntes - - 21.2 21.2 -- Other ntes - - 4.7 4.7 0.0 Ttal $50.0 $45.3 $83.0 $178.3 $(8.5) Debt issuance csts (2.3) (1.4) Ttal debt per balance sheet $176.0 $(7.1) Nte: Nn-recurse t Manitex Internatinal Inc. $50.0 $45.3 $15.4 $111.2 Cash n hand $9.9 $6.0 Net debt $166.1 $(13.1) 8
Debt & Liquidity $000 2016 December 31, 2015 Ttal Cash $9,896 $8,578 Ttal Debt 176,000 173,368 Ttal Equity 134,457 130,300 Net capitalizatin $300,561 $295,090 Net debt / capitalizatin 55.3% 55.8% Adjusted EBITDA (TTM) $22,670 $25,775 Debt t adjusted EBITDA rati 7.8 6.7 Net debt (debt less cash) at 6/30/2016 f $166.1 millin, cmpared t $164.8 millin at 12/31/15. Repayments f term debt f $3.0m in Q2-2016 & $9.7 millin year t date 2016, including eliminatin f recurse term debt. New $45 millin revlving credit facility fr Nrth America in place. Net capitalizatin is the sum f debt plus equity minus cash Net debt is ttal debt less cash 9
APPENDIX Recnciliatin f GAAP Net Incme (lss) Attributable t Sharehlders f Manitex Internatinal t Adjusted Net Incme (lss) Attributable t Sharehlders f Manitex Internatinal (in thusands) Three Mnths Ended 2016 2015 Net (lss) incme attributable t $(1,786) $138 sharehlders Pre tax:- transactin related, restructuring and related and Freign Exchange and 2,147 361 ther expense adjustments Tax effect based n effective tax rate -- (103) Change in net incme attributable t nncntrlling interest -- (45) Incme n discntinued peratins (38) Adjusted Net Incme attributable t Manitex sharehlders $361 $313 Weighted average diluted shares utstanding 16,125,788 16,031,011 Diluted earnings (lss) per share attributable t sharehlders as reprted $(0.11) $0.01 Ttal EPS Effect $0.13 $0.01 Adjusted Diluted earnings per share attributable t sharehlders $0.02 $0.02 Recnciliatin f GAAP Operating Incme t Adjusted EBITDA (in thusands) Three Mnths Ended Six Mnths Ended 2016 2015 2016 2015 Operating incme $1,884 $4,508 $5,241 $6,558 Pre-tax:- transactin related, restructuring and related expense and ther 1,153 361 1,178 3,405 adjustments Adjusted perating incme $3,037 $4,869 $6,419 $9,963 Depreciatin & Amrtizatin 3,133 2,994 6,243 5,812 Adjusted Earnings befre interest, taxes, depreciatin and amrtizatin $6,170 $7,863 $12,662 $15,775 (Adjusted EBITDA) Adjusted EBITDA % t sales 6.4% 7.8% 6.4% 7.8% 10
APPENDIX Acquisitin transactin and Restructuring and Related Expense Three Mnths Ended Pre-tax After-tax EPS 2016 Restructuring & Related $1,153 $1,153 $0.07 expense Deferred financing fees, frex and ther expense $994 $994 $0.06 adjustments Ttal $2,147 $2,147 $0.13 Three Mnths Ended Pre-tax After-tax EPS 2015 Transactin related $361 $258 $0.01 Change in nncntrlling $(45) $(45) - interest Ttal $316 $213 $0.01 11