12.03.2014

19% growth at Manitex

Manitex International, the owner of Badger, Little Giant, CVS Ferrari and Load King has reported its full year numbers for 2013.

The company saw revenues increase over 19 percent to $245 million, while pre-tax profits improved over 21 percent to $14.45 million. The order book at the end of the year was down 40 percent to $77.3 million, which Manitex says is a more manageable level than the $130 million at the end of 2012.

Looking at the fourth quarter revenues were up 16 percent to $65.4 million, while pre-tax profits jumped 63 percent to $4.2 million. Net debt by the end of the period increased from $49.1 million to $54.2 million.

Chief executive David Langevin said: “We ended 2013 on solid financial footing, with record top and bottom-line results. While we saw some volatility in market demand throughout the year, we achieved respectable organic growth and also had solid contributions from the acquisitions we made in the year. We are also pleased to report that our backlog in cranes for the start of 2014 is up approximately 50 percent since year end, a level that represents our strongest order intake in over 18 months, and gives us improved visibility for 2014.”

“Excluding the two acquisitions we made in the year, our top line grew at a double-digit pace, driven by the strength of the backlog coming into the year, and our record earnings reflect the higher sales and our ability to manage our cost structure throughout the organization. North America remains our most active geographic market, and we’ve continued to drive execution in an environment in which we are seeing modest economic growth. Despite the fact that crane markets were slightly lower for the year, we achieved growth of 19 percent year over year in sales and 26 percent in net income over the same period, with margins consistent with historical ranges.”

“We remain focused on executing our business plan which has been based on our formula of introducing new products and acquiring complementary companies which fit our strategic, product and geographic growth goals to increase our global footprint and market penetration. During 2013 we announced the launch of the first 70 ton crane on a commercial truck chassis, which is an exciting new product. Our most recent acquisition, Valla which serves the industrial electric crane market, exemplifies our strategy to acquire a great company that adds a niche product area or brand that we believe will experience above average growth in the future.”

“2013 revenues increased $39.8 million from 2012, resulting from production increases implemented in response to the high level of crane order backlog at the start of the year together with the impact of the Sabre and Valla acquisitions in the second half. Excluding acquisitions, 2013 revenues increased 15.8 percent, driven substantially by increased crane and container handling revenues partially offset by a reduction in material handling and specialised trailer revenues.”

Manitex president Andrew Rooke added: “2013 results were positive on several fronts, beyond the top and bottom-line. The production increase that we implemented at our crane facilities has enabled us to meet demand, which of course, was the driver of our net sales. Higher production and increase in sales took our backlog down to a still healthy $77.3 million, and we have seen a nice uptick in orders thus far in 2014. Our 70 ton crane, which we introduced during the year, has the potential to exceed the success of our 50 ton crane, which now accounts for over $50 million in annual revenues.”

Vertikal Comment

Manitex has done well acquiring some challenging businesses and stitching them into its business, it now needs to consider its long term branding strategies if it is to build a solid base within the crane market.

The company has some considerable export potential for its larger crane superstructures which, with a little refinement, careful chassis selection and the appointment of some good local partners could yield some substantial business in Europe and developing markets. It also has strong potential in the domestic market competing with companies such as Altec and Elliot for mainstream crane business, while continuing to nibble away at the big crane makers, some of which are focusing more on larger cranes, than on boom trucks.

While the company has come a long way since 2007, it still has substantial growth potential going forward, regardless of any further acquisitions, simply through clarifying its marketing, branding and distribution strategies and increasing its geographic coverage.