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Manitex International, Inc. Reports Fourth Quarter and Full Year 2009 Results

March 25, 2010

BRIDGEVIEW, Ill., March 25 /PRNewswire-FirstCall/ — Manitex International, Inc. (Nasdaq: MNTX), a leading provider of engineered lifting solutions including boom truck and rough terrain cranes, rough terrain forklifts, special mission oriented vehicles and specialized engineered trailers, today announced fourth quarter and full year 2009 results.

Fourth Quarter 2009 EPS of $0.34 per share

For the fourth quarter of 2009, the Company reported net income of $3.8 million, or $0.34 per share, compared to net income of $0.3 million or $0.03 per share for the fourth quarter of 2008. Included in the results for the fourth quarter of 2009 is a bargain purchase gain of $2.9 million from the acquisition of Load King. For the 12 months ended December 31, 2009 the Company reported net income of $3.6 million, or $0.33 per share, compared to net income of $2.2 million or $0.21 per share for the full year 2008. Included in the results for the full year of 2009 are bargain purchase gains of $3.8 million from the acquisition of Badger and Load King.

Fourth Quarter Financial Highlights:

  • Net sales for the quarter ended December 31, 2009 were $14.9 million*, representing a 46.3% decrease from the fourth quarter of 2008, and a 1% sequential decrease from the third quarter of 2009. *Approximately $3.4 million of orders for international customers were shipped in the fourth quarter of 2009 but will not be recognized as sales until the first Quarter of 2010.
  • Gross profit margin improved 680 basis points to 23.1% compared to 16.3% in the fourth quarter of 2008.
  • Acquisition of Load King on December 31, 2009 resulted in a bargain purchase gain of $2.9 million in the quarter.
  • Net income from continuing operations excluding bargain purchase gain of $2.9 million, was $0.9 million or $0.08 per share compared to $0.3 million or $0.03 per share for the fourth quarter of 2008.
  • Working capital at December 31, 2009 was $25.6 million, compared to $23.6 million at December 31, 2008. The current ratio (2) of 2.8 to 1, at December 31, 2009 was an improvement of 0.4 compared to December 31, 2008. Excluding the impact of the acquisitions of Badger and Load King, working capital was $21.8 million at December 31, 2009.
  • The consolidated order book as at December 31, 2009 was $22.1 million, an increase of 41% compared to December 31, 2008.

Net Income from Continuing Operations Reconciliation

The following table illustrates the impact of bargain purchase gains on net income from continuing operations for the three and twelve month periods ending December 31, 2009. There were no bargain purchase gains for either of the three or twelve month periods ending December 31, 2008.


                                            Three Months      Twelve Months
                                          Ended December     Ended December
                                   $000       31, 2009          31, 2009

    Net Income from Continuing
     Operations                                    $3,842             $3,639
    Gain on Bargain Purchase                       (2,915)            (3,815)
    ------------------------                       ------             ------
    Net Income (loss) from Continuing
     Operations excluding Bargain
     Purchase Gain                                    927               (176)
    ---------------------------------                 ---               ----

Chairman and Chief Executive Officer David Langevin commented, “We maneuvered through the most difficult year in our industry in over 50 years through the efforts and sacrifice of our entire team. The following summarizes some of our accomplishments from the past year:

  • Expanded and extended our credit facility
  • Continued increase in market share in our key boom truck market
  • Complementary additions of the Badger and Load King brands to our product mix
  • Remained cash flow positive
  • Developed new products for key growth markets
  • Significantly improved our gross margin percents
  • Exceeded our International expansion targets
  • Received numerous military orders

Mr. Langevin continued, “As a result of the above and more, we have emerged a stronger Company going into 2010. Our backlog has increased and its mix is much more favorable than it has been in well over a year. We will remain diligent and aggressive in the future to continue to strive for success for our shareholders and our organization.”

Revenues of $14.9 million in the fourth quarter of 2009 were adversely impacted by shipments made but not recognized as revenue of approximately $3.4 million of material handling products. The fourth quarter did benefit however from Badger where sales of the new 30 ton rough terrain crane made a strong contribution. Sales of Manitex cranes were down 37% compared to the third quarter of 2009 as market demand remained depressed in the final quarter of the year. Despite this, our share of the boom truck market sustained its growth to finish up 650 basis points compared to 2008.

Gross profit of $3.4 million, also adversely impacted by the shipments referenced above, was $1.1 million below the fourth quarter of 2008. However, despite the 46.3% decrease in sales in the period, the gross margin percent improved 680 basis points compared to the fourth quarter of 2008 and 840 basis points compared to the third quarter of 2009. This improvement resulted from an improved margin percent from higher margin product mix in sales, particularly at Liftking and Badger and from restructuring and cost control actions. These factors were offset by the adverse impact of reduced demand at Manitex and consequent under absorption of costs in the quarter.

On December 31, 2009, the Company acquired the assets and certain liabilities of Load King trailers, a manufacturer of specialized highly engineered haulage systems and trailers utilized in the transportation of heavy equipment, as a complement to its material handling portfolio. The transaction consideration was valued at $3.0 million and resulted in a bargain purchase gain in the fourth quarter of 2009 of $2.9 million.

Andrew Rooke, Manitex International President and Chief Operating Officer commented, “Results for the fourth quarter were influenced by the shipments of material handling product that we were required to deliver to customers in several extremely remote and inaccessible locations and which could not be recognized as revenue until the first quarter of 2010. Additionally, an unexpected slowdown in activity in boom truck cranes towards the end of the year led to under absorption of costs which were only partially offset by a strong contribution from our new rough terrain Badger crane. These events masked the continued progress that was made in the quarter, notably strong launches of the new Badger rough terrain and Manitex high reach 50155 cranes. These launches demonstrate our commitment to meet our customers’ demands through continued investment in product development and to continued growth through strategic acquisition despite the most severe market conditions in many years. As further evidence of this commitment, on December 31, 2009, we completed the addition of another strong brand to our portfolio, through the acquisition of Load King trailers, a transaction that resulted in a gain of $2.9 million. With our growth in market share in boom trucks to greater than 35%, gaining six percentage points this year, the addition of strong international dealers to distribute our product in global markets, the addition of Badger and Load King, and the launch of several new products, we believe we are positioned well for when the market starts to recover.”

Mr. Rooke continued, “The actions implemented during 2009 to reduce cost, balance activity with demand and manage for cash remained in place during the fourth quarter and result in a stronger balance sheet and liquidity position at the end of 2009. Compared to the 12 months ended December 31, 2008, our gross margin improved 360 basis points to 20%, with a fourth quarter 2009 gross margin achievement of 23.1%, and operating expenses were reduced by $3.1 million, excluding acquisitions and the gains on bargain purchase. The gross margin achievement was particularly pleasing and reflects the positive impact of restructuring and cost control actions, as well as improved product mix. At December 31, 2009 we had reduced our investment in working capital compared to December 31, 2008, excluding the impact of acquisitions in the year, by $1.8 million and had a current ratio improvement of 0.4, to 2.8 to 1. We remain highly focused on cash and for the full year of 2009 generated $2.2 million in cash flow from operations, a positive swing of $3.8 million from 2008.”

Full Year 2009 Financial Highlights:

  • Net sales for the year ended December 31, 2009 were $55.9 million, representing a 47.4% decrease from the full year 2008.
  • Gross profit of $11.2 million was $6.3 million below the full year of 2008, but was equivalent to 20% gross margin percent, an improvement of 360 basis points from the full year 2008.
  • Acquisition of Badger Equipment on July 10, 2009 and Load King on December 31, 2009 resulted in bargain purchase gains of $0.9 million and $2.9 million respectively.
  • Generated $2.2 million in positive operating cash flow in the full year 2009, a positive movement of $3.8 million compared to the cash usage of $1.6 million in the full year 2008.
  • Working capital at December 31, 2009 was $25.6 million, compared to $23.6 million at December 31, 2008. Excluding the impact of the acquisitions of Badger and Load King, working capital was $21.8 million at December 31, 2009. The current ratio (2) of 2.8 to 1, at December 31, 2009 was an improvement of 0.4 compared to December 31, 2008.
  • Adjusted EBITDA (1) from continuing operations for the year ended December 31, 2009 was $2.0 million equivalent to 3.5% on sales, compared to $5.4 million or 5.1% for the year ended December 31, 2008.
  • The consolidated order book as at December 31, 2009 was $22.1 million, an increase of 41% compared to December 31, 2008.

The financial data for all years presented reflects the former Testing and Assembly Equipment segment as a discontinued operation.

(1) Adjusted EBITDA is a non-GAAP (generally accepted accounting principles in the United States of America) financial measure. This measure may be different from non-GAAP financial measures used by other companies. We encourage investors to review the section below entitled “Non-GAAP Financial Measures.”

(2) Current ratio is equal to current assets divided by current liabilities.

Outlook

As a result of the improved visibility provided by our backlog of $22.1 million at December 31, 2009, and the underlying rate of order intake during the fourth quarter of 2009, we now anticipate our first quarter of 2010 sales to be approximately $20.0 million.

Conference Call:

Today, Thursday March 25th, management will host a conference call at 4:30 p.m. Eastern Time to discuss the results for the fourth quarter and year ended December 31, 2009 with the investment community.

Anyone interested in participating should call 1-877-941-1427 if calling within the United States or 1-480-629-9664 if calling internationally. A re-play will be available until April 1, 2010, which can be accessed by dialing 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use pass code 4267911 to access the replay.

The call will also be accompanied live by webcast with slides over the Internet and accessible at the Company’s corporate website at www.manitexinternational.com.

About Manitex International, Inc.

Manitex International, Inc. is a leading provider of engineered lifting solutions including cranes, rough terrain forklifts, indoor electric forklifts and special mission oriented vehicles, including parts support. Our Manitex subsidiary manufactures and markets a comprehensive line of boom trucks and sign cranes through a national and international dealership network. Our boom trucks and crane products are primarily used in industrial projects, energy exploration and infrastructure development, including roads, bridges, and commercial construction. Our Crane and Machinery division is a Chicago based distributor of cranes including Terex truck and rough terrain cranes, Fuchs material handlers and our own Manitex product line. Crane and Machinery provides after market service in its local market as well as being a leading distributor of OEM crane parts, supplying parts to customers throughout the United States and internationally. Our Manitex Liftking subsidiary is a provider of material handling equipment including the Noble straight-mast rough terrain forklift product line, Lowry high capacity cushion tired forklift and Schaeff electric indoor forklifts as well as specialized carriers, heavy material handling transporters and steel mill equipment. Manitex Liftking’s rough terrain forklifts are used in both commercial and military applications. In July 2009, we acquired through a stock purchase, Badger Equipment Company, a Winona, Minnesota-based manufacturer of specialized rough terrain cranes and material handling products. In December 2009, we acquired Load King Trailers, a manufacturer of specialized custom trailers and hauling systems typically used for transporting heavy equipment.

Forward-Looking Statement

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This release contains statements that are forward-looking in nature which express the beliefs and expectations of management including statements regarding the Company’s expected results of operations or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results and future economic performance; and statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “will,” “should,” “could,” and similar expressions. Such statements are based on current plans, estimates and expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. These factors and additional information are discussed in the Company’s filings with the Securities and Exchange Commission and statements in this release should be evaluated in light of these important factors. Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future results. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.


    Company Contact
    ---------------
    Manitex International, Inc.                Hayden IR
    David Langevin                             Peter Seltzberg
    Chairman and Chief Executive Officer       Investor Relations
    (708) 237-2060                             (646) 415-8972
    djlangevin@manitexinternational.com        peter@haydenir.com

                                   MANITEX INTERNATIONAL, INC.
                                    CONSOLIDATED BALANCE SHEET
                         (In thousands, except per share data)
                                                   (Unaudited)

                                            As of December 31,

                                                              2009      2008
                                                              ----      ----

                           ASSETS
    Current assets
        Cash                                                  $287      $425
        Trade receivables (net)                             10,969    17,159
        Other receivables                                       49       127
        Inventory (net)                                     27,277    22,066
        Deferred tax asset                                     673       582
        Prepaid expense and other                              892       326
                                                               ---       ---

            Total current assets                            40,147    40,685
                                                            ------    ------

        Total fixed assets (net)                            11,804     5,878
                                                            ------     -----

        Intangible assets (net)                             22,401    21,148
        Deferred tax asset                                   5,796     4,065
        Goodwill                                            14,452    14,452
        Other long-term assets                                  85        --
                                                               ---       ---

            Total assets                                   $94,685   $86,228
                                                           =======   =======

            LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
        Notes payable-short term                            $2,624    $1,564
        Current portion of capital lease
         obligations                                           520       277
        Accounts payable                                     8,565    11,895
        Accounts payable related parties                       618       188
        Accrued expenses                                     2,145     2,837
        Other current liabilities                               97       301
                                                               ---       ---

            Total current liabilities                       14,569    17,062
                                                            ------    ------

    Long-term liabilities
        Revolving term credit facilities                    16,788    16,995
        Deferred tax liability                               5,952     4,186
        Notes payable                                        8,323     5,057
        Capital lease obligations                            5,256     4,168
        Deferred gain on sale of building                    3,169     3,549
        Other long-term liabilities                            200       197
                                                               ---       ---

            Total long-term liabilities                     39,688    34,152
                                                            ------    ------

                Total liabilities                           54,257    51,214
                                                            ------    ------

    Commitments and contingencies
    Shareholders' equity
        Preferred Stock - Authorized 150,000
         shares, no shares issued or outstanding
         at  December 31, 2009 and December 31,
         2008                                                    -         -
        Common Stock-no par value, Authorized,
         20,000,000 shares authorized  Issued and
         outstanding, 11,160,455 and 10,584,378
         at December 31, 2009 and December 31,
         2008, respectively

                                                            46,375    45,022
        Warrants                                             1,788     1,788
        Paid in capital                                         93       239
        Accumulated deficit                                 (8,257) (11,896)
        Accumulated other comprehensive income
         (loss)                                                429      (139)
                                                               ---      ----

            Total shareholders' equity                      40,428    35,014
                                                            ------    ------

                    Total liabilities and shareholders'
                     equity                                $94,685   $86,228
                                                           =======   =======

               MANITEX INTERNATIONAL, INC.
      CONSOLIDATED STATEMENT OF OPERATIONS
     (In thousands, except per share data)
                               (Unaudited)

          For the years ended December 31,

                                                           2009        2008
                                                           ----        ----

    Net revenues                                        $55,887    $106,341
    Cost of sales                                        44,730      88,876
                                                         ------      ------

            Gross profit                                 11,157      17,465
    Operating expenses
        Research and development costs                      836         819
        Restructuring expenses                              255         329
        Selling, general and administrative expense      10,537      12,909
         Gain on bargain purchase                        (3,815)         --
                                                         ------         ---

            Total operating expenses                      7,813      14,057
                                                          -----      ------

            Operating income                              3,344       3,408
    Other income expense
        Interest income                                      --          --
        Interest (expense)                               (1,864)     (1,961)
        Foreign currency transaction gain (loss)             59         (99)
        Other income                                          3          44
                                                            ---         ---

            Total other expense                          (1,802)     (2,016)
                                                         ------      ------

            Income from continuing operations before
             income taxes                                 1,542       1,392
                                                          -----       -----

    Provision for taxes on income                        (2,097)       (407)
                                                         ------        ----

        Net income from continuing operations             3,639       1,799
                                                          -----       -----

    Discontinued operations:
        Income from discontinued operations, net of
         income taxes (benefit)                              --         199
        Gain on sale or closure of discontinued
         operations, net income tax                          --         200
                                                            ---         ---

            Net income                                   $3,639      $2,198
                                                         ======      ======

    Basic earning per share:
        Income from continuing operations                 $0.33       $0.18
        Income from discontinued operations, net of
         income taxes                                       $--       $0.02
        Gain on sales or closure of discontinued
         operations, net of income taxes                    $--       $0.02
                                                            ---       -----

        Net earnings                                      $0.33       $0.22
                                                          =====       =====

    Diluted earning per share:
        Income from continuing operations                 $0.33       $0.17
        Income from discontinued operations, net of
         income taxes                                       $--       $0.02
        Gain on sales or closure of discontinued
         operations, net of income taxes                    $--       $0.02
                                                            ---       -----

        Net earnings                                      $0.33       $0.21
                                                          =====       =====

    Shares used to calculate earnings per
     share:
        Basic                                        10,957,646  10,071,585
        Diluted                                      10,965,444  10,375,062

                               MANITEX INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                     (In thousands, except per share data)
                                               (Unaudited)

                   For the three months ended December 31,

                                                            2009        2008
                                                            ----        ----

    Net revenues                                         $14,934     $27,792
    Cost of sales                                         11,490      23,249
                                                          ------      ------

            Gross profit                                   3,444       4,543
    Operating expenses
        Research and development costs                       341         163
        Restructuring expenses                                75          93
        Selling, general and administrative expense        3,275       3,541
        Gain on bargain purchase                          (2,915)         --
                                                          ------         ---

            Total operating expenses                         776       3,797
                                                             ---       -----

            Operating income                               2,668         746
    Other income expense

        Interest (expense)                                  (556)       (502)
        Foreign currency transaction (loss)                  (13)        (38)
        Other income                                          (1)         15
                                                             ---         ---

            Total other expense                             (570)       (525)
                                                            ----        ----

            Income from continuing operations before
             income taxes                                  2,098         221
                                                           -----         ---

    Provision for taxes on income                         (1,744)        (40)
                                                          ------         ---

        Net income from continuing operations              3,842         261
                                                           -----         ---

    Discontinued operations:
        Income  from discontinued operations, net of
         income taxes (benefit)                               --          11
        Gain on sale or closure of discontinued
         operations, net of  income tax                       --          14
                                                             ---         ---

            Net income                                    $3,842        $286
                                                          ======        ====

    Basic earning (loss) per share:
        Income from continuing operations                  $0.34       $0.02

        Net earnings                                       $0.34       $0.03
                                                           =====       =====

    Diluted earning per share:
        Income from continuing operations                  $0.34       $0.02

        Net earnings                                       $0.34       $0.03
                                                           =====       =====

    Shares used to calculate earnings per share:
        Basic                                         11,150,396  10,558,640
        Diluted                                       11,173,332  10,576,356

                                           MANITEX INTERNATIONAL, INC.
                                  CONSOLIDATED STATEMENT OF CASH FLOWS
                                                (Thousands of Dollars)
                                                           (Unaudited)

                                      For the years ended December 31,

                                                                2009    2008
                                                                ----    ----

    Cash flows from operating activities:
        Net income                                            $3,639  $2,198
        Adjustments to reconcile net income to
         cash provided by operating activities:
            Depreciation and amortization                      2,453   2,008
            Gain on bargain purchases                         (3,815)     --
            Provisions for customer allowances                   (46)    (47)
            Gain on disposal of assets                            --     (36)
            Deferred income taxes                             (1,949)   (461)
            Inventory reserves                                    54      47
            Reserves for uncertain tax positions                 (27)     13
            Stock based deferred compensation                     86     339
            Changes in operating assets and
             liabilities:
                (Increase) decrease in accounts
                 receivable                                    7,856    (650)
                (Increase) decrease in accounts
                 receivable - related party                       --    (277)
                (Increase) decrease in inventory                 (54) (5,328)
                (Increase) decrease in prepaid expenses         (533)    491
                (Increase) decrease in other assets              (85)     --
                Increase (decrease) in accounts payable       (4,307)  2,080
                Increase (decrease) in accounts payable
                 related parties                                 430      --
                Increase (decrease) in accrued expense        (1,234) (1,719)
                Increase (decrease) in other current
                 liabilities                                    (225)   (126)
                Discontinued operations - cash provided
                 by (used) for operating activities               --     (93)
                                                                 ---     ---

                    Net cash provided by (used) by operating
                     activities                                2,243  (1,561)
                                                               -----  ------

    Cash flows from investing activities:
        Proceeds from sale of fixed assets                        10      58
        Purchase of property and equipment                      (139)   (630)
        Acquisition of business, net of cash
         acquired                                               (139)   (817)
        Proceeds from the sale of assets of
         discontinued operations                                  --      --
                                                                 ---     ---

                    Net cash used for investing activities      (268) (1,389)
                                                                ----  ------

    Cash flows from financing activities:
        Borrowing on revolving credit facility                 2,419   3,219
        Repayment on revolving credit facility                (3,163)     --
        New borrowings - notes payable                           997   1,809
        Note payments                                         (1,943) (1,879)
        Proceeds from issuance of stock                           --      --
        Shares repurchased for income tax
         withholding on share-based compensation                  (6)     (7)
        Proceeds from issuance of warrants                        --      --
        Proceeds from the exercise of warrants                    --      --
        Payment for expenses related to stock
         offerings                                                --      --
        New capital leases                                        51      --
        Repayment on capital lease obligations                  (376)   (284)
                                                                ----    ----

                    Net cash provided by (used) for financing
                     activities                               (2,021)  2,858
                                                              ------   -----

                    Effect of exchange rate change on cash       (92)    (52)
                    Net decrease in cash and cash equivalents    (46)    (92)
    Cash and cash equivalents at the
     beginning of the year                                       425     569
                                                                 ---     ---

    Cash and cash equivalents at end of year                    $287    $425
                                                                ====    ====

    Supplemental disclosure of cash flow
     information:
        Cash paid during the year for
            Interest                                          $1,828  $2,024
            Income taxes                                         $16    $161

Supplemental Information

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measure: “Adjusted EBITDA” (adjusted earnings before interest, tax, depreciation and amortization). This non-GAAP term, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as a substitute for net earnings, operating income and other consolidated earnings data prepared in accordance with GAAP or as a measure of our profitability. A reconciliation of net income to Adjusted EBITDA is provided below.

The Company’s management believes that Adjusted EBITDA and Adjusted EBITDA as a percentage of sales represent key operating metrics for its business. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adj.EBITDA) is a key indicator used by management to evaluate operating performance. While Adj.EBITDA is not intended to replace any presentation included in our consolidated financial statements under generally accepted accounting principles (GAAP) and should not be considered an alternative to operating performance or an alternative to cash flow as a measure of liquidity, we believe this measure is useful to investors in assessing our capital expenditure and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of Adj.EBITDA to GAAP financial measures for the three month and twelve month periods ended December 31, 2009 and December 31, 2008 is included with this press release below and with the Company’s related Form 8-K.

Reconciliation of GAAP Net Income from Continuing Operations to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adj.EBITDA) from Continuing Operations (in thousands)


                                                              (Unaudited)

                        Three Months Ended           Twelve Months Ended
                                  December 31,                 December
                   December 31,        2008     December 31,   31, 2008
                           2009                         2009
    Net  income
     from
     continuing
     operations           3,842            261         3,639       1,799
    Gain on
     bargain
     purchase            (2,915)             -        (3,815)          -
    Adjusted Net
     Income from
     continuing
     operations             927            261          (176)      1,799
    Income tax
     (benefit)           (1,744)           (40)       (2,097)       (407)
    Interest
     expense                556            502         1,864       1,961
    Foreign
     currency
     transaction
     losses (gain)           13             15           (59)         99
                              1              8            (3)        (44)
    Other (income)
     expense

    Depreciation &
     Amortization           673            549         2,453       2,008
    Adjusted
     Earnings
     before
     interest,
     taxes,
     depreciation
     and
     amortization
     (Adj.EBITDA)           426          1,295         1,982       5,416
    -------------           ---          -----         -----       -----
    Adj.EBITDA %
     to sales               2.9%           4.7%          3.5%        5.1%
    ------------            ---            ---           ---         ---

In an effort to provide investors with additional information regarding the Company’s results, Manitex International refers to various non-GAAP (U.S. generally accepted accounting principles) financial measures which management believes provides useful information to investors. These measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures.

Manitex International believes that this information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Manitex International uses these non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company’s financial performance against such budgets and targets.

The amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of or for the period ended December 31, 2009, unless otherwise indicated.

Current Ratio is calculated by dividing current assets by current liabilities.


                          December 31,   December 31,
                              2009           2008
    Current Assets             $40,147        $40,685
    Current Liabilities        $14,569        $17,062
    -------------------        -------        -------
    Current Ratio                  2.8            2.4
    -------------                  ---            ---

Days Sales Outstanding (DSO), is calculated by taking the sum of net trade and related party receivables divided by annualized sales per day (sales for the quarter, multiplied by 4, and the sum divided by 365).

Days Payables Outstanding (DPO), is calculated by taking the sum of net trade and related party payables divided by annualized cost of sales per day (cost of goods sold for the quarter, multiplied by 4, and the sum divided by 365).

Debt is calculated using the Condensed Consolidated Balance Sheet amounts for current and long term portion of long term debt, capital lease obligations, notes payable and lines of credit.


                                              December 31,   December 31,
                                                  2009           2008
    Current portion of long term debt               $2,624         $1,564
    Current portion of capital lease
     obligations                                       520            277
    Lines of credit                                 16,788         16,995
    Notes payable - long term                        8,323          5,057
    Capital lease obligations                        5,256          4,168
    -------------------------                        -----          -----
    Debt                                           $33,511        $28,061
    ----                                           -------        -------

Inventory turns are calculated by multiplying cost of goods sold for the referenced three month period by 4 and dividing that figure by inventory as at the referenced period.

Manufacturing Expenses include manufacturing wages, salaries, fixed and variable overhead costs.

Operating Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus other receivables, plus inventories, less Accounts payable. The Company considers excessive working capital as an inefficient use of resources, and seeks to minimize the level of investment without adversely impacting the ongoing operations of the business. As of December 31, 2009, operating working capital was:


                              December 31, 2009   December 31, 2008
    Trade receivables (net)              $10,969             $17,159
    Other receivables                         49                 127
    Inventory (net)                       27,277              22,066
    Less: Accounts payable                 9,183              12,083
    Total Operating Working
     Capital                             $29,112             $27,269
    -----------------------              -------             -------
    % of Trailing Three Month
     Annualized Net Sales
    -------------------------
                                            48.7%               24.5%
                                            ----                ----

Trailing Three Month Annualized Net Sales is calculated using the net sales for quarter, multiplied by four.


                                        Three Months Ended Three Months Ended
                                        December 31, 2009  December 31, 2008
    Net sales                                      $14,934            $27,792
    Multiplied by 4                                      4                  4
    ---------------                                    ---                ---
    Trailing Three Month Annualized Net
     Sales                                         $59,736           $111,168
    -----------------------------------            -------           --------

Working capital is calculated as total current assets less total current liabilities.


                         December 31,                           December 31,
                             2009        December 31, 2009      2008
                                        Excluding Load King &
                        Total Company          Badger
    Total Current
     Assets                   $40,147                 $34,192        $40,685
    Less: Total
     Current
     Liabilities               14,569                  12,429         17,062
    ------------               ------                  ------         ------
    Working Capital           $25,578                 $21,763        $23,623
    ---------------           -------                 -------        -------

SOURCE Manitex International, Inc.


Source: newswire