Manitex International Inc (MNTX, Financial), a leading international provider of truck cranes, specialized industrial equipment, and construction equipment rental solutions, announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a 9.7% increase in net revenue compared to the same period last year, driven by growth in the lifting segment.
Financial Highlights
Manitex reported net revenue of $71.3 million in Q3 2023, a 9.7% increase from the prior-year period. The Lifting Equipment Segment revenue was $63.7 million, an increase of 11% from the prior-year period, or an increase of 21% when excluding the impact of truck chassis sales in the quarter. The Rental Equipment Segment revenue was $7.6 million, supported by strong end-market demand in key North Texas markets.
CEO of Manitex, Michael Coffey, stated,
Our strong third quarter results demonstrate continued progress on our multi-year business transformation strategy. Revenue, margin realization and Adjusted EBITDA increased materially versus the prior year, while net leverage declined for the fifth consecutive quarter, consistent with our focus on balance sheet optimization."
Improved Profitability and Margin Expansion
Total gross profit was $16.6 million in the third quarter, an increase from $12.3 million in the prior-year period due to revenue growth, operational improvement initiatives, improved pricing realization, and sales mix. As a result, gross profit margin increased 427 basis points to 23.3% during the third quarter 2023.
Adjusted EBITDA was $8.5 million for the third quarter 2023, or 11.9% of sales, compared to $5.2 million, or 8.0% of sales, for the same period last year. The company delivered GAAP Net Income of $1.7 million, or $0.08 per diluted share, for the third quarter 2023, compared to a net loss of ($3.4) million, or ($0.17) per diluted share, for the same period last year.
Balance Sheet and Liquidity
As of September 30, 2023, total debt was $91.3 million. Cash and cash equivalents were $4.9 million, resulting in net debt of $86.4 million, an improvement of $1.4 million for the quarter. Net leverage was 2.9x at the end of third quarter 2023, down from 3.9x at the end of fourth quarter 2022. Manitex had total cash and availability of approximately $29 million.
Outlook
Based on the better than expected third quarter results and continued momentum in the business, the company increased financial guidance for the full-year 2023. The updated financial targets reflect the underlying strength of the Company’s end markets, market share gains, and margin improvements driven by operational benefits from the Elevating Excellence initiatives.
Explore the complete 8-K earnings release (here) from Manitex International Inc for further details.