Manitex reports earnings and Valla Cranes purchase
By D.Ann Shiffler14 November 2013
On the heels of the announcement of positive third-quarter financial results, Manitex International announced that it will purchase Valla Cranes. The company said that subsequent to the quarter’s end, it had reached an agreement in principle to acquire Valla SpA of Piacenza, Italy. Valla, a maker of mobile industrial cranes, posted $7.5 million in revenues in 2012. The purchase price was not revealed.
Founded in 1945, Valla manufactures full range of mobile cranes with capacities from 2 to 90 tons. Valla cranes include electric, diesel, hybrid, wheeled and tracked as well as fixed and swing booms.
Manitex International posted net revenues of $57.5 million, an 8 percent rise as compared to $53.4 million in the prior year's quarter. Revenue declined 8 percent compared to the record second quarter 2013 revenues of $62.6 million.
Net income of $2.6 million or $0.21 per share, increased 4.7 percent compared to $2.5 million and $0.21 per share for the prior year's quarter. Excluding costs associated with the acquisition and financing of Sabre that was completed in the quarter, net income was $2.8 million or $0.23 per share. EBITDA(1) for the third quarter 2013 increased 5.1 percent to $5.6 million, equal to 9.8 percent of sales, compared to $5.3 million and 10.0 percent of sales for the same period in 2012.
Consolidated backlog at September 30th, 2013 was largely unchanged at $96.7 from June 30, 2013, according to a company press release.
The company reported that it completed the acquisition of Sabre Manufacturing on August 19, 2013 for total consideration of $14 million. It also completed new multi-lender North American $64 million revolving credit facilities, including Comerica Bank, Fifth Third Bank and HSBC.
Also in the third quarter, Manitex International completed a registered direct equity offering for 1.4 million shares with net proceeds of $14 million, which was used to repay debt.
Of the financial results, Chairman and CEO David Langevin, said “Despite a very slow overall economic environment, we posted another solid quarter of growth, putting us on pace to reach a record level of sales and profits for the full year 2013. We intend to continue to grow through the introduction of innovative niche products, such as our new 15-, 30-and 70-ton crane models along with acquisitions such as Sabre, which closed during the quarter, which fit our specialized product strategy. Specifically, the third quarter was in line with our expectations, with notable improvement in our EBITDA margin to 9.8 percent of sales and a steady rate for our gross margins. Given the state of the global economy, and our higher production levels, our backlog is also in good shape.”
Regarding the Valla purchase, Andrew Rooke, president and COO, said the Valla crane line fits in well with its niche product offerings.
“In line with our stated strategy to grow both through new product development and through complimentary acquisitions, subsequent to the end of the quarter we reached an agreement in principle, to acquire Valla SpA, a Piacenza, Italy based manufacturer of a comprehensive line of precision pick and carry cranes with lifting capacities from 2.5 ton to 90 tons,” he said. “Valla cranes are sold through specialized agents and distributors for a variety of end markets such as petrochemical, construction, aerospace and automotive."