Manitex International, Inc.
) have dropped 9% since reporting third-quarter 2013 earnings
results on Nov 7; wherein it reported flat year on year earnings
per share of 21 cents, falling a penny short of the Zacks
Consensus Estimate. Top-line year-on-year growth of 8% was
narrower than the 19% rise to record revenues in the second
quarter of 2013.
Net revenue rose 8% year over year to $57 million. However,
revenues fell short of the Zacks Consensus Estimate of $63
million. The year-over-year growth was led by an increase in
revenues from boom truck cranes and equipment distribution and a
$2.1 million contribution from the newly acquired Sabre. However,
these benefits were partially offset by lower revenues from
material handling equipment.
Gross profit improved 4% to $11.2 million from $10.8 million in
the prior-year quarter. However, gross margin contracted 80 basis
points to 19.5% due to diverse sales mix including an increase in
chassis sales that are sold for a nominal margin.
Selling, general and administrative expenses increased 2% year
over year to $5.9 million. Operating income was $4.6 million
compared with $4.5 million in the prior-year quarter. Operating
margin contracted 30 bps year over year to 8.1%.
As of Sep 30, 2013 Manitex had cash and cash equivalents of $3.1
million, up from $1.9 million as of Dec 31, 2012. Total debt
increased to $51.5 million as of Sep 30, 2013 from $49 million as
of Dec 31, 2012. Debt-to-capitalization ratio was at 38% compared
with 45% as of Dec 31, 2012.
Cash flow used in operating activities for the first nine months
of 2013 was $1.1 million compared with $4 million in the same
period of the prior-year. Total backlog as of Sep 30, 2013 was
$96.7 million, flat compared with Jun 30, 2013 and down from
$130.3 million as of Dec 31, 2012.
Subsequent to the end of the quarter, Manitex entered into an
agreement to acquire Italy-based Valla SpA. Valla is a
manufacturer of comprehensive line of precision pick and carry
cranes with lifting capacities from 2.5 ton to 90 ton. The
acquisition is not expected to contribute materially to Manitex's
results immediately. The acquisition will complement Manitex's
niche crane offerings and extend its product portfolio and
increase its market share.
Manitex expects fourth quarter sales to be higher compared with
the third quarter. The increase is expected to be driven by the
Sabre acquisition, production of higher tonnage cranes, as well
as other specialized equipment.
The recent softness in the energy sector continues, which is
evident by a reduction in the North American rig count. However,
Manitex believes this softening has bottomed out and the sector
will be a growth driver in both the short and long term. The
company remains optimistic about the introduction of new
products, allowing revenues to grow in the near term. For 2013,
the company is projecting a 20% increase in revenues.
The company expects to generate 50% of its sales from the energy
area and the balance from general commercial markets. Manitex
remains committed to introduce ground breaking products with the
introduction of the Manitex TC 70 crane, which will provide
significant sales upside.
In addition, Sabre acquisition will be a good fit for the company
as it will provide further diversification of product line and
end markets and lead to an above-average upside. The buyout also
brings in various growth opportunities in the existing sales
distribution network of Manitex.
Bridgeview, Ill-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 engineered
Manitex currently retains a Zacks Rank #3 (Hold). Other stocks in
the same industry with favorable Zacks ranks are
), with a Zacks Rank #1 (Strong Buy), while
DXP Enterprises, Inc
) carry a Zacks Rank #2 (Buy).
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