12.08.2013

Manitex adds tankers and rises 27%

Crane and port handling group Manitex has announced a 27% increase in first half revenues along with an acquisition.

The company has also acquired Sabre, an Indiana-based manufacturer of specialised trailer tanks for liquid and solids for $14 million, including $13 million in cash and $1 million in Manitex stock. Sabre had revenues of $39.1 million in the 12 months to the end of March and an EBITDA of $4.5 million.
The deal should close shortly.

Moving on to the half year results, total revenues were up 27 percent to $122.1 million, while pre-tax profits improved 20 percent to $6.5 million. Margins were lower due to product mix which included more smaller boom trucks and lower replacement parts sales. The backlog at the end of the period was $96.6 million.

Looking at the second quarter, revenues improved 19.2 percent to $62.6 million – a new quarterly record – while pre-tax profits were up just 11 percent.

Chief Executive David Langevin said: “The record sales and profits we recorded in the second quarter results demonstrates continued execution of our niche product strategy. The global economic environment, as has been widely reported remains subdued, and while we are cautious we believe our businesses will continue to perform on a solid basis in this challenging economic landscape. The primary driver of our growth remains our crane business. And as we recently reported, we believe that our new 70 ton crane product will have a significant impact for us in the future.“

“We would also like to point out the significance of the $37 million Navy contract award which we recently announced which will also provide further growth for us in 2014. Finally, in the second quarter, our cost structure, margins and EBITDA ratios all returned to more normal levels when compared to the first quarter. With this cost concentration and a steady improvement in economics along with the potential benefit from the acquisition of Sabre which we announced today, we should turn in good results for the year and put us on sound footing going into 2014.”

“The quarterly and year to date results were solid, and we continue to work to develop and acquire niche products which serve industries where we believe there will be superior growth and where we will have the opportunity to grow at levels beyond anyone in the marketplace. We look forward to welcoming to the Manitex group a company that we believe fits these criteria in Sabre Manufacturing. Sabre is a leading specialised equipment provider with a reputation for high quality and innovation serving a market of over $1 billion annually.”

Vertikal Comment

Manitex is now on something of a roll and although still very dependent on its Manitex boom trucks for profits, it does appear to be making good progress with the CVS marine operation. Its latest acquisition is aimed with increasing its foothold in the buoyant oil and gas market which makes sense, even though the product is well outside its normal range.

One challenge is what to do to develop its Badger and Little Giant product lines along with its material handling division, which has a fair few dated models on among its four lines - in spite of their appeal to certain niche market sectors. The group is collecting a very wide range of brands and products, which given its size will be a challenge to develop and market on a consistent basis. It is surprising that the group did not go after Snorkel – or maybe it did?