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absence, acquirer, added, addition, advantage, allocated, alternative, amortized, assign, assigned, assignment, assumed, attributable, augmented, aware, bankruptcy, broader, broadly, Buyer, calculate, Canada, category, clean, closed, collectively, commercial, comparability, comply, compromise, conditioned, constitute, continuing, Contracting, contributory, coupled, dated, declare, delivery, depreciable, derive, difficult, disclose, discounted, division, earlier, ECP, enacted, encompassed, enhancing, enterprise, entity, ERP, establishing, event, exclude, excluded, expanded, expansion, expensed, failure, fall, favorable, function, generation, geopolitical, goodwill, group, growth, HiRail, identifiable, Inflation, inflationary, insolvency, instrument, investment, IRA, isolation, Issuer, land, large, leased, led, manufacture, mature, meaningful, nature, Northshore, noted, occurring, offering, Ontario, origination, ownership, past, planning, PLH, portfolio, prescribed, presence, present, presentation, promote, PTA, redeemed, reducing, reflected, repay, replenish, revalued, SBKC, segregation, semiconductor, serial, shortage, similarly, stable, strong, structure, subsidiary, sustain, sustained, system, tangible, terminated, thereto, thereunder, titled, transferred, transportation, Trust, trustee, unaffected, unprecedented, vary, vehicle, vertical, view, vintage, volatility, warrant, Wilmington
Financial report summary
?Competition
Manitex InternationalRisks
- Effective management of our rental equipment is vital to our business, and an inability to obtain raw materials, component parts and/or finished goods in a timely and cost-effective manner would adversely affect our ability to manufacture and market our products.
- The Company is subject to competition, which may have a material adverse effect on the Company’s business by reducing the Company’s ability to increase or maintain revenues or profitability.
- Our sales order backlog may not be indicative of the level of our future revenues.
- A small portion of our workforce is unionized, and more of our workforce could become unionized in the future, which could negatively impact the stability of our production, materially reduce our profitability and increase the risk of work stoppages.
- We may not be able to attract and retain skilled technicians, which could have a material adverse effect on our ability to meet customer demand.
- A number of key personnel are critical to the success of our business.
- A material disruption to our operation and manufacturing locations could adversely affect our ability to generate revenue.
- The cost of new equipment that we purchase for use in our rental fleet or for sale as inventory may increase, and the aging or obsolescence of our existing equipment, and fluctuations in the market value thereof, could have a material adverse effect on our business, financial condition and results of operations.
- Our business is highly dependent on the timely and sufficient delivery of finished goods, such as commercial vehicles, from our suppliers.
- Our business may be impacted by government spending.
- We may experience losses in excess of our recorded reserves for receivables.
- Uncertainty relating to macroeconomic conditions may reduce demand for our products and services, resulting in non-performance of contracts by our lessees, limit our ability to obtain additional capital to finance new investments, or have other unforeseen negative effects.
- If petroleum prices increase, then our results of operations could be adversely affected.
- Regulatory, technological advancement, or other changes in our core end-markets may affect our customers’ spending on the products and services we provide.
- Integration of acquired businesses may be difficult, costly and time-consuming, and the anticipated benefits and cost savings of acquired businesses may not be realized or may be less than expected.
- Platinum owns the majority of our equity, and its interests may not be aligned with yours.
- We have, and may incur, significant indebtedness and may be unable to service our debt. This indebtedness could adversely affect our financial position, limit our available cash and our access to additional capital and prevent us from growing our business.
- To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors, some of which are beyond our control. An inability to service our indebtedness could lead to a default under the Indenture or ABL Credit Agreement, which may result in an acceleration of our indebtedness.
- The Indenture and the ABL Credit Agreement impose significant operating and financial restrictions on our company and our subsidiaries, which may prevent us from capitalizing on business opportunities.
- Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
- Disruptions or security compromises affecting our information technology systems or those of our critical service providers could adversely affect our operating results by subjecting us to liability, and limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, or implement strategic initiatives.
- We are subject to complex laws and regulations, including environmental and safety regulations that can adversely affect the cost, manner or feasibility of doing business.
- We have identified a material weakness in our internal control over financial reporting which, if not remediated, could result in material misstatements in our financial statements.
- We are subject to a series of risks related to climate change.
- Increased attention to, and evolving expectations for, sustainability and environmental, social, and governance (“ESG”) initiatives could increase our costs, harm our reputation, or otherwise adversely impact our business.
Management Discussion
- Total Revenue - Total revenue was $411.3 million for the three months ended March 31, 2024, compared to $452.2 million in the same period of 2023. Rental revenue decreased 10.2% to $106.2 million, compared to $118.3 million in the first quarter of 2023, due to lower utilization and a decline in average OEC on rent. Equipment sales decreased 9.5% in the first quarter of 2024 to $272.6 million, compared to $301.3 million in the first quarter of 2023, primarily driven by lower sales of used equipment due to excess supply of equipment available in the market.
- Cost of Revenue, Excluding Rental Equipment Depreciation - The decrease in cost of revenue, excluding rental equipment depreciation for the three months ended March 31, 2024, compared to the same period in 2023, was driven primarily by the decrease in rental equipment sales volume.
- Depreciation of Rental Equipment - Depreciation of our rental fleet increased in the three months ended March 31, 2024, compared to the same period in 2023, as a result of higher rental equipment levels.