Manitex International(US:MNTX)2020-05-08 14:01Financial Performance - Net revenues for the three months ended March 31, 2020, were $48.733 million, a decrease of 10.3% compared to $54.425 million in the same period of 2019[13] - Gross profit for the same period was $10.247 million, down from $11.992 million, resulting in a gross margin of 21.0%[13] - The company reported a net loss of $7.476 million for the three months ended March 31, 2020, compared to a net income of $910 thousand in the same period of 2019[14] - The loss per share from continuing operations was $0.36 for the first quarter of 2020, compared to earnings of $0.07 per share in the prior year[13] - For the three months ended March 31, 2020, the net loss was $7,476,000 compared to a net income of $910,000 for the same period in 2019, representing a significant decline[17] - Total revenue for the three months ended March 31, 2020, was $48.733 million, a decrease of 10.4% from $54.425 million in the same period of 2019[66] - Equipment sales decreased to $40.875 million in Q1 2020 from $46.384 million in Q1 2019, representing a decline of 11.0%[66] - Part sales slightly decreased to $7.168 million in Q1 2020 from $7.302 million in Q1 2019, a decline of 1.8%[66] - Installation services revenue decreased to $690,000 in Q1 2020 from $739,000 in Q1 2019, a decline of 6.6%[66] - For the three months ended March 31, 2020, net revenues from discontinued operations were $1.499 million, down from $2.995 million in the same period of 2019, resulting in a net loss of $432,000[166] Operating Expenses - Total operating expenses increased to $15.448 million from $9.803 million, primarily due to an impairment of intangibles amounting to $6.722 million[13] - Operating expenses surged to $15,448,000 in Q1 2020, compared to $9,803,000 in Q1 2019, primarily due to an impairment of intangibles of $6,722,000[13] - The company reported a goodwill impairment of $6,585,000 during the first quarter of 2020[17] - The company incurred legal, investment banking, and consulting fees totaling $875,000 related to the investment transaction with Tadano[136] Assets and Liabilities - Total current assets increased to $130.872 million as of March 31, 2020, from $123.417 million at December 31, 2019[12] - Total liabilities rose to $122.732 million as of March 31, 2020, compared to $115.878 million at the end of 2019[12] - The company's total equity decreased to $71.775 million as of March 31, 2020, from $79.550 million at December 31, 2019[12] - Cash and cash equivalents decreased to $22.101 million as of March 31, 2020, from $23.327 million at December 31, 2019[12] - Total current liabilities increased to $84,357,000 as of March 31, 2020, up from $68,076,000 at the end of 2019, representing a 23.9% increase[12] - Total assets decreased slightly to $194,507,000 as of March 31, 2020, compared to $195,428,000 at the end of 2019[12] Cash Flow - Cash used for operating activities was $603,000, an improvement from $1,597,000 used in the same period last year[17] - The company had cash and cash equivalents of $22,320,000 at the end of the period, down from $23,577,000 at the beginning of the year[17] - Interest paid in cash for the three months ended March 31, 2020, was $1,693,000, compared to $1,528,000 in the same period in 2019[22] - For the three months ended March 31, 2020, interest received in cash was $60,000, while interest paid in cash was $1,693,000, compared to $69,000 and $1,528,000 for the same period in 2019, respectively[22] Inventory and Receivables - Inventory increased to $64.360 million as of March 31, 2020, compared to $57.818 million at the end of 2019, reflecting a rise of 11.8%[12] - Accounts receivable increased by $1,987,000, while inventory increased by $7,283,000 compared to the previous year[17] - The allowance for doubtful accounts was $663,000 as of March 31, 2020, down from $686,000 at the end of 2019[29] - One customer, Rush Truck Center, accounted for approximately 10.0% of the company's revenue for the three months ended March 31, 2020[30] Strategic Initiatives - The company approved the exploration of strategic alternatives for its Sabre segment, which may include a sale of all or part of the business[25] - The Company is exploring strategic alternatives for Sabre, including the potential sale of all or part of its business and assets, which has been classified as discontinued operations[25] Tax and Compliance - The effective tax rate for the three months ended March 31, 2020 was -6.08% on a pretax loss of $6,640,000, compared to 13.10% on a pretax income of $1,506,000 in the prior year[130] - The Company's total unrecognized tax benefits as of March 31, 2020 were approximately $4.0 million, down from $4.3 million in 2019[131] - The Company anticipates a possible decrease of up to $300,000 in unrecognized tax benefits within 12 months due to the expiration of the statute of limitations[131] Other Financial Information - The Company issued 125,000 restricted stock units during the period, with a total compensation expense of $201,000 related to these units for the three months ended March 31, 2020[142] - The Company repurchased 2,949 shares of common stock from employees at a closing price of $4.34 on March 13, 2020[138] - The Company has a remaining obligation of $1,140,000 under settlement agreements with two plaintiffs, payable in 12 annual installments[149] - The Company recognized a pretax loss of $205,000 from the sale of 1,000,000 shares of ASV, which were sold for $7.00 per share[160] - The Company received total proceeds of $3.7 million from the Paycheck Protection Program (PPP) loans, intended primarily for payroll costs[167] - The Company is closely monitoring the impact of the COVID-19 pandemic on its business and financial performance, with uncertainty regarding its duration and severity[168]