03.04.2008

Manitex up 163%

Veri-Tek, the owner of Manitex boom trucks and cranes plus Noble, Lowry and Liftking fork trucks has released its full year 2007 results. The company has boosted revenues by 163 percent to $107 million, largely due to a full year contribution from Manitex, compared to only two months in 2006.

Looking at the fourth quarter which shows a direct like for like comparison, shows an increase in revenues of 32 percent on 2006 to $27.2 million.

Gross margins were $19.9 million - 18.6 percent of sales, compared with 14.2 percent in 2006. Margins in general climbed due to a more profitable product mix, with larger cranes making up more of the whole, price increases and cost savings from better sourcing of materials and components.

The company introduced new 45 and 50 ton cranes in late 2006 and the second quarter of 2007 respectively. Additional operating expenses were incurred with $500,000 down to compliance with Sarbane Oxley reporting requirements and increased research and development costs associated with the expansion of the product line re-engineering work required to adapt the Manitex products for export.

Pre Tax profits were just under 2.3 million, compared to a pre tax loss of $786,000 in 2006. Pre tax profits for the fourth quarter were $702,000 compared to a loss of $691,000 in 2006.

David Langevin, chairman and chief executive officer of Veri-Tek said: “2007 was an exciting year of transformation for our company, our financial performance showed marked improvement as we took steps to refocus our business exclusively on the manufacture of specialised lifting equipment, strengthen our balance sheet and key ratios, and streamline our operations.”

“We were extremely gratified to see that our sales objectives were met, and particularly with the continued strength in our Manitex boom truck product line, highlighted by over 70 orders received during the year for our new 50-ton crane, which we introduced in the second quarter of the year. Our gross profit margin benefited from the favorable product mix shift, as both the 50-ton and the 45-ton cranes generate a higher gross margin than our other boom trucks.”

“Decisions we made to strengthen the company from both operational and financial perspectives in the past 18 months should continue to serve us well as we implement our business plan through 2008 and beyond.”

“In 2007, we achieved healthy market share gains for our products, expanded our sales by over 30 percent year over year, and we did so profitably. Our goal in 2008 will be to continue to expand our market share in our primary North American markets and simultaneously expand our reach through international distribution partnerships to penetrate key international markets. We believe that our product portfolio is in high demand in the stronger international markets which bodes well for our future growth and we also expect to pursue accretive acquisitions to boost our earnings per share and build long-term shareholder value.”