“Focused manufacturer of engineered lifting equipment” Manitex International, Inc. (NASDAQ:MNTX) Conference Call First Quarter 2015 May 11th, 2015 Exhibit 99.2 |
2 Forward Looking Statements & Non GAAP Measures “Focused manufacturer of engineered lifting equipment” 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 First Quarter 2015 Earnings Release on the Investor Relations section of our website www.manitexinternational.com for a description and/or reconciliation of these measures. |
3 “Focused manufacturer of engineered lifting equipment” Overview • Cost reductions through sourcing and operating efficiency initiatives • Continued integration of ASV and PM Group • Optimize our capital allocation, multi year process: Invest in and grow our higher margin businesses-PM, ASV, Manitex are our portfolio’s “top producers” with respect to margins and addressable markets Consider “addition by subtraction” for lower margin units that could have synergies elsewhere All proceeds to retire debt and bring our capital ratios to historic ranges |
4 “Focused manufacturer of engineered lifting equipment” Commercial Overview Q1 market conditions generally slow. Growth of 2% over 12/31/2014 Broad based order book: ASV 10%, PM 15% Manitex 75% 3/31/15 Backlog of $109.6 million (12/31/14, $107.3 million; 3/31/14, $100.0 million): PM ASV Significant activity and interest related to our new acquisition products. Oil and gas demand significantly lower N. American general construction demand for our equipment flat in the quarter European and international markets modest improvement, together with benefit from more competitive Euro. |
5 Key Figures - Quarterly “Focused manufacturer of engineered lifting equipment” USD thousands Q1-2015* Q1-2014 Q4-2014* Net sales $105,882 $62,576 $66,909 % change in Q1-2015 to prior period 69.2% 58.3% Gross profit 21,163 11,604 12,623 Gross margin % 20.0% 18.5% 18.9% Operating expenses 15,993 7,993 8,531 Adjusted Net Income $1,518 1,877 2,185 Adjusted Earnings Per Share $0.10 $0.14 $0.16 Adjusted Ebitda 8,030 4,722 5,330 Adjusted Ebitda % of Sales 7.6% 7.5% 8.0% Working capital 98,938 75,171 89,970 Current ratio 1.8 2.5 2.1 Backlog 109,625 100,023 107,327 % change in Q1-2015 to prior period 9.6% 2.1% *As adjusted. See reconciliation to US GAAP on appendix |
6 “Focused manufacturer of engineered lifting equipment” Q1-2015 Operating Performance $m Q1-2014 sales $62.6 Currency translation (3.4) Sales from acquisitions 48.6 Volume (1.9) Q1-2015 sales $105.9 $m Q1-2014 Net income $1.9 Increase in gross margin from sales 9.6 Operating expenses from acquisitions (9.0) Reduced SG&A & R&D 1.0 Interest expense (2.1) Other income (expense) 0.9 Tax & other (0.1) Attributable to noncontrolling interest (0.7) Q1-2015 Adjusted net income $1.5 |
7 Working Capital “Focused manufacturer of engineered lifting equipment” $000 March 31, 2015 December 31, 2014 Working Capital $98,938 $89,470 Days sales outstanding (DSO) 74 83 Days payable outstanding (DPO) 62 60 Inventory turns 2.8 2.2 Current ratio 1.8 2.1 Operating working capital 147,943 122,031 Operating working capital % of annualized LQS 34.9% 45.6% Operating working capital increase of $25.9m of which $20.3m from PM acquisition Working capital ratios now reflect higher proportion of international activity. N. America based operations DSO is 66 days and DPO is 45 days Current ratio would be 2.1 at March 2015 adjusting for PM working capital facilities of $20.3m that are transactional and therefore current, (compared to N. American term lines of credit that are long term) |
8 “Focused manufacturer of engineered lifting equipment” $000 March 31, 2015 December 31, 2014 Total Cash $5,578 $4,370 Total Debt 200,375 112,294 Total Equity 135,186 128,006 Net capitalization $329,983 $235,930 Net debt / capitalization 59.0% 45.7% Adjusted EBITDA (for three months ended) $8,030 $5,330 Adjusted EBITDA % of sales 7.6% 8.0% Repayments of debt principal of $2.8m in Q1-2015; This includes prepayment of $1.5m on Comerica term loan. Availability, based on collateral, under working capital lines in N. America of $14.8m and $6.6m in ASV Average Debt Cost approximates 6% Debt & Liquidity • Net capitalization is the sum of debt plus equity minus cash • Net debt is total debt less cash |
9 “Focused manufacturer of engineered lifting equipment” Debt As at March 31, 2015 PM ASV Other Total Working capital facilities 20,295 16,219 46,225 82,739 Term debt 36,002 39,500 12,000 87,502 Capital leases 4,983 4,983 Convertible notes 20,951 20,951 Other acquisition notes 4,200 4,200 $56,297 $55,719 $88,359 $200,375 Note: Non-recourse to Manitex International Inc. $56,297 $55,719 $112,016 Interest cost for three months ended March 31, 2015 $2,934 |
10 Summary “Focused manufacturer of engineered lifting equipment” Implementation and execution of integration of PM & ASV JV Progression on cost savings Decrease working capital Reduce outstanding debt Begin program of strategic rationalization |
11 APPENDIX “Focused manufacturer of engineered lifting equipment” Reconciliation of Q1-2015 Adjusted net income and adjusted EPS Reconciliation of Q1-2015 Adjusted EBITDA to GAAP net income Q1-2015 Acquisition and other expense Three Months Ended March 31, 2015 March 31, 2014 Net (loss) income (224) 1,877 Net income attributable to noncontrolling interest 294 - Income tax 34 905 Interest expense 2,934 805 Foreign currency transaction losses (gain) (945) 11 Other (income) expense 10 13 Acquisition and other expense 3,027 - Depreciation & Amortization 2,900 1,111 Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) $8,030 $4,722 Adjusted EBITDA % to sales 7.6% 7.5% Three Months Ended March 31, 2015 March 31, 2014 Net (loss) income as reported (224) 1,877 Pre – tax acquisition and other expenses 3,027 -- Tax effect based on jurisdictional blend (879) -- Increase in net income to noncontrolling interest (406) Adjusted Net Income $1,518 $1,877 Weighted average diluted shares outstanding 15,836,423 13,840,506 Diluted earnings per share as reported ($0.01) $0.14 Total EPS Effect $0.11 -- Adjusted Diluted earnings per share $0.10 $0.14 First Quarter 2015 Pre-tax After-tax EPS Deal transaction related $2,6 87 $1, 903 $0.12 Exceptional operating cost $357 $245 $0.02 Change in noncontrolling interest $(406) $(406) $(0.03) Total $2,638 $1,742 $0.11 |
12 APPENDIX “Focused manufacturer of engineered lifting equipment” Reconciliation of Q4-2014 Adjusted net income and adjusted EPS Reconciliation of Q4-2014 Adjusted EBITDA to GAAP net income Q4-2014 Acquisition and other expense Three Months Ended Twelve Months Ended December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013 Net income as reported 472 2,991 7,103 10,178 Pre – tax acquisition and other expenses 2,517 -- 2,517 - Tax effect based on jurisdictional blend (804) -- (804) - Adjusted Net Income $2, 185 $2,991 $8,816 $10,178 Weighted average diluted shares outstanding 14,029,205 13,821,352 13,904,289 12,717,575 Diluted earnings per share as reported $0.03 $0.22 $0.51 $0.80 Total EPS Effect $0.13 -- $0.12 -- Adjusted Diluted earnings per share $0.16 $0.22 $0.63 $0.80 Three Months Ended Twelve Months Ended December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013 Net income 472 2,991 7,103 10,178 Net loss attributable to noncontrolling interest (136) -- (136) -- Income tax 393 1,182 3,676 4,269 Interest expense 958 765 3,150 2,946 Foreign currency transaction losses (gain) 80 23 107 95 Other (income) expense (31) 59 36 50 Acquisition and other expense 2,356 - 2,356 - Depreciation & Amortization 1,238 1,205 4,572 3,945 Adjusted Earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) $5,330 $6,225 $20,864 $21,483 Adjusted EBITDA % to sales 8.0% 9.5% 7.9% 8.8% Fourth Quarter 2014 Pre-tax After-tax EPS Deal transaction related $2,176 $1,481 $0.11 Exceptional operating cost 341 232 0.02 Total $2,517 $1,713 $0.12 |