Manitex International Inc. has announced its third quarter 2012 results. Highlights of the quarter included an increase in net revenues by 44 percent to a record $53.4 million, compared to 2011’s third quarter of $36.9 million. Manitex also reported a net income of $2.5 million, or $0.21 in EPS (earning per share) increased 145% compared to the prior year's quarter of $1.0 million and $0.09 per share. EBITDA increased 70% to $5.3 million, equaling 10% of sales, compared to $3.1 million or 8.5% for the third quarter of 2011. Manitex repaid $3.8 million of long term debt from net proceeds of 500,000 share equity raise. It also consolidated backlog of $125.8 million as of September 30, 2012 represents a 50% year to date increase and is 99% higher than the comparable quarter's backlog a year ago.
"Our third quarter results for sales, net income and EBITDA are quarterly records for our company and in our first nine months, we've significantly exceeded the results of all of 2011," commented David Langevin, Manitex chairman and CEO. "These results, despite serious uncertainty in the broader markets, reflect a well-focused strategy and execution commitment from each of our operating teams. During the quarter we took several more steps to position ourselves for long-term sustained performance including a 57% reduction in our long-term, acquisition related, debt and the introduction of a new 15 ton crane targeted for refining, steel and certain industrial niches. As we go forward, we will continue to focus on expanding our sales, cost reduction, quality control, and introducing new products which serve our customers' needs."
Manitex boom trucks were responsible for over 80% of the increase in third quarter revenues where the higher tonnage and higher reach boom trucks for the energy and power line construction sectors continue to represent the principal product in demand. The remaining significant increases in year-over-year quarterly revenues were generated by specialized material-handling products, and Load King trailers, which were driven by strong end-user demand in the energy sector. Local currency sales of CVS specialized port and container handling equipment increased on a year over year quarterly basis by approximately 18%, driven by international sales. However this was offset by an 11% strengthening of the dollar over the period.
Net income for the third quarter 2012 of $2.5 million was an increase of $1.5 million, (145%) over the third quarter of 2011. The 44% year-over-year improvement in revenue resulted in an increase in gross profit of $3.0 million, which was partially offset by additional expenditures for R&D of $0.2 million and SG&A of $0.6 million. The increase in R&D expenditure related to new products to be launched in quarter four 2012 and in 2013. The increase in SG&A reflects the impact of increased sales related costs from expansion of our sales organization, commissions and increased performance related compensation. As a percent of revenue, SG&A expense declined by 310 basis points to 10.8% of revenues compared to the third quarter of 2011, resulting in EBITDA margin of 10%, the highest the company has ever seen.
Andrew Rooke, Manitex international president and chief executive officer also commented: "The third quarter was another solid step towards achieving a year of significantly increased revenue, income and cash flow growth as we continued to execute our strategy. Our operating leverage allowed us to convert revenue growth of 44% to net income growth of 145% and generate EBITDA margins of 10%, driven by planned output expansion to accommodate increased end user demand for our innovative products. Our investment in R&D, which is up 36% over the quarter and 71% year to date, has resulted in several well received new products which we anticipate will fuel additional growth opportunities next year. With the objective of funding future growth and managing risk, we continue to strengthen our balance sheet, and in the quarter repaid long term acquisition related debt of $3.8 million. As at September 30, 2012, this has contributed to two of our key balance sheet ratios improving on prior quarters, with our debt to trailing twelve month EBITDA ratio at 2.8 times, and our interest cover ratio at a strong 6.8 times."
Langevin said that Manitex expect sales for the year 2012 to be slightly greater than $200 million, which would represent 40% growth over last year. These increases, particularly when considering that our macro-economic environment remains cautious, would represent clear execution of our long-term operating and strategic objectives, and gives us confidence for continued growth moving forward into 2013," he added.
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