Manitex International, Inc. (Nasdaq: MNTX), a leading international provider of cranes and specialized material and container handling equipment reported an increase in net revenues of 5.1% in their first quarter 2014. The increase was $62.6 million from $59.6 million for the same period a year ago.
First Quarter Net income was $1.9 million, unchanged from the first quarter of 2013 with earnings per share of $0.14 compared to $0.16 per share due to $0.03 per share of expenses related to ConExpo and increased number of shares outstanding. The consolidated backlog at March 31, 2014 increased 29.4% $100.0 million, from $77.3 million at December 31, 2013.
Subsequent to the end of the quarter, announced a second five year contract award from US Navy valued at $25.9 million ($38.9 million including options) for supply of specialized material handling units, with shipments anticipated commencing 2015. This is not reflected in the March 31 2014 backlog referenced above.
Chairman and Chief Executive Officer, David Langevin, commented, “Despite a more modest rate of growth at Manitex in the first quarter, which was a result of slowing orders in the back half of 2013, we posted favorable operating comparisons compared to last year’s same period. Importantly, as we previously announced in our year end release, we have seen a healthy acceleration in orders since the beginning of this year, with the backlog as of March 31, 2014 up almost 30% to $100 million, and production increases are currently in progress. The increase in backlog is being led by our Manitex cranes but also includes significant increases at a number of our other divisions.
Our recent announcement of an additional military order at our Liftking subsidiary gives us visibility for this group through 2015.”
“As a result,” continued Mr. Langevin, “We are expecting significantly improved results for the second quarter and for the remainder of 2014, with higher sales, and gradual improvement in our gross margin, EBITDA and net income. More specifically, planned production increases should result in revenues in excess of $70 million in the second quarter with EBITDA margins recovering to more normalized historical levels. For the full year, and not taking into account any potential acquisitions, we would thus, expect our sales growth and profit growth to continue year over year at a more rapid pace than what we saw in the first quarter.”
Andrew Rooke, Manitex International President and Chief Operating Officer, commented, “During the quarter we saw several positive aspects that set us up well for the balance of the year, including the 29% increase in backlog back to levels of a year ago. Also, we see improvement in the remainder of the year resulting from improved performance and high level of interest in our recent acquisitions, and the solid performance of both our Manitex crane and CVS container handling operations. Our gross margin of 18.5% was an improvement over the 2013 comparative period but was constrained by lower volumes in our material handling operations, which we anticipate will improve through the balance of the year. Our balance sheet remains in good shape, as reflected in our current ratio of 2.5, a net debt to capitalization ratio of 37.0%,and interest coverage ratio of 7.0 times. With 12 month trailing EBITDA of $22.1 million, our debt to EBITDA ratio improved from 2.5 times at December 31 2013 to 2.4 times at March 31 2014 and continues to provide us with financial flexibility in achieving our growth objectives.”