Markets

Manitex Q3 Earnings Miss on Soft Crane Boom Truck Markets

Shares of Manitex International, Inc.MNTX lost roughly 11% value since it reported third-quarter 2015 results on Nov 4. Earnings plunged to 1 cent per share from 13 cents in the prior-year quarter due to persistent weakness in the crane boom truck markets. Earnings also missed the Zacks Consensus Estimate of 3 cents.

Manitex International Inc. (MNTX) - Earnings Surprise | FindTheCompany

Revenues improved 46% to $96.7 million from $66.2 million a year ago. Revenues, however, fell short of the Zacks Consensus Estimate of $110 million. Sales in the quarter include the impact of $49.7 million of revenues related to the acquisitions of PM and ASV. Without acquisitions, total revenue would have declined by $19.4 million or 29.3%. Additionally, a stronger U.S. dollar hurt revenues by $7.9 million compared with the third quarter of 2014.

Operational Update

Gross profit went up 67.7% to $18.3 million from $10.9 million reported last year. Gross margin increased 240 basis points (bps) to 18.9%. Selling, general and administrative expenses (SG&A) increased to $13.3 million from $6.9 million in the year-ago quarter. Operating income was $3.7 million, compared with $3.4 million in the prior-year period. Operating margin declined 140 bps year over year to 3.8%.

Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) was $7 million, up 55% from $4.5 million in the year-ago quarter. EBITDA margin was 7.2% compared with 6.8% in the prior-year quarter.

Financial Update

Manitex ended the quarter with cash and cash equivalents of $4.4 million, flat with the 2014-end level. The company reported cash used for operations of $5.5 million in the nine months ended Sep 30, 2015, compared with $1.7 million in the comparable period last year.

Manitex's total debt increased to $195.6 million as of Sep 30, 2015 from $112.3 million as of Dec 31, 2014. The company reported total backlog of $88.9 million as of Sep 30, 2015, down 12.9% from $102.1 million as on Sep 30, 2014.

Outlook

Manitex remains optimistic and prepared for a change in the cycle and product demand. The company also continues to focus on integration and execution of new acquisitions along with the strengthening of its balance sheet.

On Nov 9, Manitex's subsidiary PM Group opened a subsidiary, PM Middle East, in the Jebel Ali Free Zone in Dubai, strengthening its presence in the region. The expansion of PM into this new region will provide the opportunity to grow the customer base. PM's growing international presence will help it to cross-sell its products and thereby drive growth.

Manitex reduced its debt by $23.1 million since the beginning of 2015 and expects to further improving the debt ratios before the year ends.

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 has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Advanced Emissions Solutions, Inc. ADES , Alarm.Com Holdings, Inc. ALRM and Cintas Corporation CTAS . All these stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CINTAS CORP (CTAS): Free Stock Analysis Report

MANITEX INT INC (MNTX): Free Stock Analysis Report

ALARM.COM HLDGS (ALRM): Free Stock Analysis Report

ADV EMISSIONS (ADES): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ALRM ADES CTAS MNTX

Other Topics

Earnings Stocks

Latest Markets Videos