Manitex International, Inc. (NASDAQ:MNTX) Q3 2018 Earnings Conference Call Transcript
Nov 01, 2018 • 08:30 am ET
Good day, everyone, and welcome to the Manitex International Incorporated Third Quarter 2018 Results Conference Call. Today's call is being recorded.
And at this time, I'd like to turn the conference over to David Langevin. Please go ahead.
Thank you, Viki. Good afternoon, ladies and gentlemen, and thank you for your interest at Manitex International. On the call with me today is Steve Kiefer, our President and COO; as well as our new CFO, Laura Yu. Please see our website or our release for replay instructions for this call, which are available until November 8th, 2018.
(Forward-Looking Cautionary Statement).
I will begin with a brief overview. Laura will present a financial overview, followed by an operating commentary from Steve, after which, we will welcome any questions.
Now please turn to slide number three. First, I would like to again welcome Laura to our company. As many of you may recall, Laura joined us in May of this year. She came to us with excellent financial experience and credentials, which were a perfect background for the needs of our company. I'm sure you'd join me in welcoming her and in wishing her much success at her new capacity.
Now as we exit 2018 and enter 2019, I'm happy to report that our company is in the best financial condition that we have experienced in many years. We reported today a steady advancement in sales over a year ago, a significant improvement in gross margins from the similar period in 2017 and our first reported quarterly GAAP profit in some time.
Looking now at the end of the year to date, we've achieved an adjusted net income of $4.8 million, which is double what it was for the comparable period of a year ago, translating to $0.27 a share. We reported today that our dealer quoting activity picked up after the summer, which was reflected in the very significant expansion of our backlog in October.
We are a market leader in mounting straight boom cranes on commercial chassis, and with the investment by Tadano in the second quarter of this year, we now have a world-class partner in Tadano to enhance our growth in our second main product category, the manufacturing of knuckle cranes mounted on commercial chassis.
Further, we've never had a balance sheet as strong as we do now with net debt of $49 million and very comfortable leverage ratios. This is a far cry from the days of not too long ago where we experienced net debt-to-EBITDA ratios in excess of 10.
We've accomplished a lot in the last couple of years to improve our balance sheet and to be able to function well in any market environment. With a very positive replacement cycle underway, strength in our end markets, best-in-class products and the strongest financial position ever for our company, we should end the year with performance nicely ahead of last year's.
We believe we will end the year with annual sales growth in the mid-teens compared to a