Manitex International (MNTX) 8-K Manitex International, Inc. Reports Second Quarter 2009 Results

Manitex

International Inc

Conference Call

Second Quarter 2009

August 13

th

2009

Exhibit 99.2

2

Forward Looking Statements

& Non GAAP Measures

Safe

Harbor

Statement

under

the

U.S.

Private

Securities

Litigation

Reform

Act

of

1995:

This

presentation

contains

statements

that

are

forward-looking

in

nature

which

express

the

beliefs

and

expectations

of

management

including

statements

regarding

the

Company’s

expected

results

of

operations

or

liquidity;

statements

concerning

projections,

predictions,

expectations,

estimates

or

forecasts

as

to

our

business,

financial

and

operational

results

and

future

economic

performance;

and

statements

of

management’s

goals

and

objectives

and

other

similar

expressions

concerning

matters

that

are

not

historical

facts.

In

some

cases,

you

can

identify

forward-looking

statements

by

terminology

such

as

“anticipate,”

“estimate,”

“plan,”

“project,”

“continuing,”

“ongoing,”

“expect,”

“we

believe,”

“we

intend,”

“may,”

“will,”

“should,”

“could,”

and

similar

expressions.

Such

statements

are

based

on

current

plans,

estimates

and

expectations

and

involve

a

number

of

known

and

unknown

risks,

uncertainties

and

other

factors

that

could

cause

the

Company's

future

results,

performance

or

achievements

to

differ

significantly

from

the

results,

performance

or

achievements

expressed

or

implied

by

such

forward-

looking

statements.

These

factors

and

additional

information

are

discussed

in

the

Company's

filings

with

the

Securities

and

Exchange

Commission

and

statements

in

this

presentation

should

be

evaluated

in

light

of

these

important

factors.

Although

we

believe

that

these

statements

are

based

upon

reasonable

assumptions,

we

cannot

guarantee

future

results.

Forward-

looking

statements

speak

only

as

of

the

date

on

which

they

are

made,

and

the

Company

undertakes

no

obligation

to

update

publicly

or

revise

any

forward-looking

statement,

whether

as

a

result

of

new

information,

future

developments

or

otherwise.

Non-GAAP

Measures:

Manitex

International

from

time

to

time

refers

to

various

non-GAAP

(generally

accepted

accounting

principles)

financial

measures

in

this

presentation.

Manitex

believes

that

this

information

is

useful

to

understanding

its

operating

results

without

the

impact

of

special

items.

See

Manitex’s

second

quarter

2009

earnings

release

on

the

Investor

Relations

section

of

our

website

www.manitexinternational.comfor

a

description

and/or

reconciliation

of

these

measures.

3

Overview

•

Industry remains challenging.

–

Strong recent order intake and backlog build provides more

confidence for stronger second half of 2009.

•

Managing for cash:

–

Good progress year to date and further opportunity for second half of

2009, particularly inventory

–

Bank lines maturities extended to 2012, no covenant issues, available

liquidity

•

Cost reduction program remains strong

–

High impact on Manitex

team who continue to respond well

•

Strategic development continues:

–

Acquisition of Badger Equipment on July 10

th

2009

–

$14.4 million of international orders recently announced with

deliveries commencing in Q3 2009

4

Key Figures

USD thousands

Q2-2009

Q1-2009

Q2-2008

Net sales

$11,848

$14,042

$26,460

% change compared to Q2-2009

(15.6%)

(55.2%)

Gross profit

2,477

3,028

4,451

Gross margin %

20.9%

21.6%

16.8%

Operating Expenses excluding restructuring costs

2,424

2,414

3,247

Restructuring costs

(22)

(131)

-

Net (loss) Income from continuing operations

(117)

61

721

Cash flow from operating activities

276

2,484

688

Working capital

21,304

20,806

21,802

Current ratio

2.9

2.7

2.2

Debt

25,142

25,055

25,447

5

Second Quarter Operating

Performance

$000

$000

Q2 2008 Net income from continuing operations

721

$           

Gross profit impact of reduced volume

(2,454)

Incremental benefit of margin improvement

480

Reduction in gross margin

(1,974)

Restructuring costs

(22)

Operating Expenses

823

Other income / expense

102

Tax

233

Q2 2009 Net loss from continuing operations

(117)

$         

Margin improvement and control of operating expenses contribute $1.3

million to partially offset loss of margin from reduced volume

6

Cost Reduction Activities

•

All plants running reduced weeks / hours

–

Objective to balance activity with level of demand. All plants working to firm order

schedules

–

Impacts both hourly and salaried employees

–

Sales, service and parts functions maintain full capability

–

Manufacturing expenses, excluding acquisitions, for the six months ended June 30 2009

reduced 51% or $4.4 million compared to same period for 2008

•

Executive and salaried employees all subject to reduced pay and benefits and

temporary layoffs

–

SG&A

and

Engineering

costs,

adjusted

for

impact

of

acquisitions,

reduced

$3.2

million

or

46% for the six months ended June 30 2009 compared to same period for 2008

•

Material cost reductions have been relatively small:

–

Vendor and company inventories have been reducing more slowly due to lower volume

throughputs, and some volume discounts lost as smaller quantities purchased.

–

In-

sourcing and re-sourcing activities have accelerated

–

Anticipate acceleration of reductions in second half of 2009.

7

Working Capital & Cash Flow

$000

Q2 2009

Q1 2009

Q4 2008

Working Capital

$21,304

$20,806

$23,623

Days sales outstanding

66

60

56

Days payable outstanding

68

64

47

Inventory turns

1.7

2.0

2.2

Current ratio

2.9

2.7

2.4

Cash flow generated from

operating activities

$276

$2,484

$1,000

Inventory turns are calculated by multiplying cost of goods sold

for the referenced three month period by 4 and dividing that figure by inventory as at the

referenced period

•Working capital again reduced in the second quarter of 2009

•Further opportunity for second half through focus on inventory

•Continued improvement in current ratio

•Cash generated from operations of $2.8 million in first six months of 2009

8

Debt and Liquidity

$000

Q2 2009

Q1 2009

Q4 2008

Total Cash

97

128

425

Total Debt

25,142

25,055

28,061

Total Equity

35,162

35,066

35,014

Net capitalization

60,207

59,993

62,650

Net debt / capitalization

41.6%

41.5%

44.1%

EBITDA

595

1,042

1,295

EBITDA % of sales

5.0%

7.4%

4.7%

•Revolver

facility

size,

based

on

available

collateral

at

June

30

2009

was:

•US line $12.7 million and Canadian line $3.3 million

•Total availability at June 30 2009 $1.6 million

•Collateral

limits

increased

on

signing

new

agreements

on

July

9

th

2009

providing

approximately

an additional $1 million of availability

•Net capitalization is the sum of debt plus equity minus cash.

•Net debt is total debt less cash

9

Summary

•

Outlook for industry remains challenging

•

Recent order wins and growth in backlog provides more

visibility and optimism for second half, particularly Q4

•

Addition of Badger opens new market potential, distribution

synergy and on hand order backlog for second half shipment

•

Cash focus remains strong with good opportunity for

inventory reduction in the remainder of the year

•

Cost control measures in place and effective. Employees

remain focused which is a tribute to their commitment and

for which we are very thankful