On November 7, 2024, Manitex International Inc (MNTX, Financial) released its 8-K filing detailing its financial results for the third quarter of 2024. Manitex International Inc, through its subsidiaries, is engaged in the design, manufacture, and distribution of engineered lifting solutions, including boom trucks, truck cranes, and sign cranes. The company operates primarily in the Lifting Equipment and Rental Equipment segments, with the majority of its revenue derived from the United States.
Third Quarter 2024 Financial Overview
Manitex International Inc reported net revenue of $66.5 million for the third quarter of 2024, a 6.7% decrease from the $71.3 million reported in the same period last year. This decline was primarily due to reduced sales in aerial work platforms and chassis, although there was notable growth in the Rental Equipment segment, which saw a 22% increase in revenue to $9.3 million.
Financial Achievements and Challenges
The company's gross profit for the quarter was $16.0 million, down 3.4% from the previous year. However, the gross profit margin improved by 83 basis points to 24.1%, thanks to lower material costs and increased contributions from the Rental segment. Despite these improvements, operating income fell to $4.4 million from $5.2 million, impacted by $1.0 million in transaction costs related to the pending acquisition by Tadano.
Income Statement and Key Metrics
Net income for the quarter was $0.4 million, or $0.02 per diluted share, compared to $1.7 million, or $0.08 per diluted share, in the prior year. Adjusted EBITDA remained stable at $8.5 million, representing 12.8% of sales, compared to 11.9% in the previous year. The company's backlog decreased significantly to $97 million from $170 million at the end of 2023, indicating potential future revenue challenges.
Balance Sheet and Liquidity
As of September 30, 2024, Manitex International Inc reported total assets of $250.9 million, with total liabilities of $164.6 million. The company's net debt stood at $83.7 million, with a net leverage ratio of 2.5x, down from 2.9x at the end of 2023. This reduction in leverage is a positive sign for the company's financial health.
Pending Acquisition by Tadano
On September 12, 2024, Manitex International Inc entered into an agreement to be acquired by Tadano, Ltd. in an all-cash transaction valued at $223 million, including outstanding debt. Under the terms, shareholders will receive $5.80 per share in cash. The transaction is expected to close in early 2025, subject to shareholder and regulatory approvals.
“Given the Company’s pending acquisition by Tadano, Manitex is not hosting a conference call to discuss its third quarter financial results, and the Company is no longer providing financial guidance.”
Conclusion
Manitex International Inc's third-quarter results highlight both the challenges and opportunities facing the company. While revenue fell short of analyst estimates, improvements in gross profit margins and a reduction in leverage are positive indicators. The pending acquisition by Tadano adds a layer of complexity and potential for future growth, making it a critical development for investors to watch.
Explore the complete 8-K earnings release (here) from Manitex International Inc for further details.
