Manitex International, Inc. (NASDAQ:MNTX) Q2 2018 Earnings Conference Call Transcript

Aug 07, 2018 • 04:30 pm ET


Manitex International, Inc. (NASDAQ:MNTX) Q2 2018 Earnings Conference Call Transcript


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Good day, and welcome to the Manitex International, Inc. Fourth Quarter and Full Year 2018 Results Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Dave Langevin, CEO. Please go ahead, sir.

David J. Langevin

Thank you very much, Sebastian. Good afternoon, ladies and gentlemen, and thank you for your interest in Manitex International. On the call with me today is Steve Kiefer, our President and Chief Operating Officer; as well as Laura Yu, our Senior VP and CFO. Please see our website or our release for replay instructions for this call, which are available until March 21st, 2019.

Now please refer to the first slide regarding our safe harbor statement. We ask that you review this statement and also refer to our SEC filings for further guidance on the many risk factors associated with our company. I will begin with a brief overview, Laura will present a financial summary, followed by an operating commentary from Steve, after which, we will welcome any questions. Please now turn to Slide number 3.

Manitex really had a significant year in 2018. And as a shareholder, I take great comfort in the substantial improvement on our balance sheet over the last couple of years. We've been on a steady path to improvement, carefully and methodically reducing our debt over several years, as well as simplifying our operations and product concentration. We are now a focused company in the mobile crane lifting area with a product offering of straight and knuckle mast cranes. We'll also have to compliment our organization for expanding gross margins in a period where component costs were constantly increasing. We believe most of these increases have been absorbed and are behind us, which should allow for further margin expansion in 2019.

I also wish to communicate that while we have seen overall operational improvement, we believe that we're not even close to our peak sales or profits. And we do believe we still have a long way to go in enhancing value for our stakeholders. We will continue to grow sales while reducing costs, as well as continue to improve -- prune nonstrategic assets. Our plans are to combine these steps with the successful introduction of internally developed products which will be delivered over a larger geographical landscape. Now let's review some specifics on our year-end results.

Our revenues were up 14% year-over-year. Our full year -- full year adjusted EBITDA was up 26%. Our full year adjusted earnings per share was up 65%. And as I alluded to earlier, our net debt ended the year at $48.5 million, down from the year ago balance of $90 million. Our bottom line was impacted primarily by noncash, nonoperating adjustments such as a decrease in the holding value of our marketable stock, goodwill impairment charges and changes in estimates, along with other items, all of which are detailed in our release. A significant indicator of the future is our reported backlog. That business was particularly sluggish