Investor Presentation March 2024 Exhibit 99.1
Safe Harbor Statement Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation 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 presentation 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.
About Manitex Leading Provider of Lifting Solutions to Infrastructure and Construction Markets +6% 2022-2023 Revenue Growth +39% 2022-2023 Adjusted EBITDA Growth 10.1% 2023 Adjusted EBITDA Margin +239 bps 2022-2023 Adjusted EBITDA margin expansion 2.9x 2023 year-end Net Leverage Ratio How we win What we offer High performance, service-centric culture Deep, recurring customer relationships Commitment to quality and innovation Positioning – we have strong positions in the right markets….aiding the addition and expansion of our products Our Footprint Georgetown, Texas (188,000 SF facility) Boom Truck and Sign Crane manufacturing S. Cessario siul Panaro, Italy (542,000 SF facility) Boom Truck and Sign Crane manufacturing Arad, Romania (213,000 SF facility) Knuckle Boom Crane Manufacturing Piacenza, Italy (58,000 SF facility) Precision Pick and Carry Cranes Comprehensive portfolio of leading brands What we do We are a leading provider of mobile truck cranes, industrial lifting solutions, aerial work platforms, construction equipment and rental solutions that serve infrastructure, heavy industry, and general construction markets. We engineer and manufactures products in North America and Europe, distributing through independent dealers globally. Straight mast cranes Articulated cranes Industrial lift & aerial work platforms Equipment rentals Chicago, Illinois Manufacturing Support for Oil & Steel and Valla Rabern Rentals Four North Texas locations
Rental Equipment Segment Lifting Equipment Segment Complete Solutions Serving Growing End-Markets Capitalizing on favorable energy and infrastructure market investment trend 60% Boom, knuckle boom and cranes 12% Aerial Work Platforms 11% Parts and Service 10% Rental 8% Other Product Mix (as % of 2023 Sales) 90% of 2023 revenue ~$18 billion global addressable market Our Lifting Equipment segment manufactures and markets a comprehensive lines of boom trucks, truck cranes, and other lifting solutions and provides aftermarket parts and services 10% of 2023 revenue ~$58 billion North American addressable market Our Rental Equipment segment is a provider of industrial equipment rentals with four locations in Northern Texas. Key End Markets Served Infrastructure Utility Energy Commercial Construction
Track Record of Execution Driving year-over-year growth in revenue, EBITDA and margin realization Track record of organic and inorganic growth Organic Growth driven by global construction demand US Infrastructure Bill Oil & Gas | Energy | Commercial and Industrial Construction Positioned well in attractive markets USA | Canada | Western Europe | South American Mining Strong execution in 2023 Progress on Elevating Excellence drove strong margin expansion Leverage Reduction Net leverage down 1x 6% y/y Revenue Growth ($MM) 39% y/y Adjusted EBITDA Growth ($MM) 239 bps y/y EBITDA Margin Expansion (%) Net Leverage Reduction Net Debt to EBITDA
Value Creation Roadmap We introduced Elevating Excellence Initiative in First Quarter 2023 Manitex is addressing historical challenges to profitable growth Too many go-to-market brands - diluted brand identity Unrealized synergies of scale Lack of production velocity Ineffective structure Lack of data-centric reporting (KPI, balanced scorecard) Our Path Forward Our Past Targeted Commercial Expansion Sustained Operational Excellence Disciplined Capital Allocation Optimize operating structure; product mix optimization; increased facility utilization; supply chain optimization; improved fixed cost absorption High-return organic growth investments; invest from cash flow; opportunistic, accretive bolt-on acquisitions in complementary adjacent markets Manitex introduced its Elevating Excellence initiative in the first quarter 2023 representing a new long-term value creation strategy Organic share expansion in favorable markets (North America / Western Europe); Share expansion of PM | Oil & Steel and Valla in the USA
Targeted Commercial Expansion Drive above-market organic growth, leveraging incumbent position Manitex will leverage its incumbent, leadership position in Straight Mast Cranes to expand across Articulated, Industrial Lift / AWP and Rental Markets Manitex has 35% market share within the domestic Straight Mast market Brand consolidation, market positioning will help to drive organic share gains in adjacent markets Retain leadership position within Straight Mast market, while investing in higher-growth, underpenetrated adjacent markets Market Share Expansion Leverage strong market share in straight mast cranes to grow articulated cranes, Industrial Lifting, and AWP share in N.A. Simplify Brand Identity Simplify our go-to-market branding, supporting our dealers with segmented brands serving specific applications Enhanced Product Distribution Consolidate distribution across targeted geographies Product Innovation Invest in new, customer-led innovation and product development Market Share | Growth Growth Share Delivering “One Manitex” to the market Driving balanced growth across new and existing markets Straight Mast Articulated Industrial Lift & AWPs Rentals Relative growth contribution by product
Sustained Operational Excellence Building a durable, more efficient business to drive profitable growth Manitex intends to drive productivity and efficiency improvements in support of profitable growth through the cycle 2023 Accomplishments 2024 Priorities 2025 Priorities Upgraded (2) aged systems to modern ERP operating systems Began rationalizing and improving supply chain Implemented processes and systems to increase capacity Eliminated unprofitable brands and certain products Drive growth of PM | Oil & Steel Valla in NA Rental growth and margin expansion Continued supply chain improvements to efficiency and cost Product rationalization Strategic, bolt-on acquisitions Implement a lean, more efficient organizational structure, increase production velocity, expand sourcing and procurement capabilities, improve inventory management, leverage data and analytics in support of cultural accountability Key drivers of multi-year margin improvement, weighted by potential anticipated margin uplift
Acquisition Criteria Product line | end-market expansion Revenue and accretive margin synergies Technical capabilities expansion Aftermarket appeal Disciplined Capital Allocation Prioritize reduction in net leverage, targeted organic growth investments Manitex intends to reduce net leverage, while continuing to optimize liquidity with which to support organic growth across the business Building a more efficient, lean organization before we begin to pursue strategic acquisitions 2023-2024 Capital allocation priorities Reduce net leverage further below target of 3.0x or less Selectively invest in organic growth opportunities Opportunistic, shareholder-friendly return of capital 2025+ Capital allocation priorities Strategic, bolt-on acquisitions Selectively invest in new organic growth opportunities Opportunistic, shareholder-friendly return of capital
2025 Financial Targets Positioned to drive significant organic growth and margin expansion Between YE 2022 and YE 2025, Manitex intends to deliver incremental growth in revenue, EBITDA and EBITDA margin realization through a combination of commercial expansion, sustained operational excellence and disciplined capital allocation Revenue Bridge ($MM) EBITDA Bridge ($MM) EBITDA Margin (%) ~25% revenue growth at mid-point of range ~65-110% EBITDA growth +300-500 bps of margin expansion Revenue Drivers (2024 and 2025 Focus on Growth) Margin Drivers (2023 is a foundational year with focus on margins / process and systems) End-market growth Improved capacity utilization Product innovation / NPD Market share gains Improved fixed-cost absorption through improved operating leverage Reweight product mix toward higher-margin offering Centralization of procurement and supply chain 2022A-2025E
Progress on Elevating Excellence Initiatives On track to achieve 2025 financial targets 25% Revenue Growth 65-110% EBITDA Growth 300-500 bps of EBITDA Margin Expansion FY22 Revenue $274MM FY23 Revenue $291MM 2025 Target $325-360MM FY22 Margin 7.8% FY23 Margin 10.1% 2025 Target 11-13% FY22 EBITDA $21MM FY23 EBITDA $30MM 2025 Target $35-45MM Key Accomplishments: Structural Organization Changes New products (ECSY, TC850) Increased Share Key Priorities: PM Crane Expansion Increased Dealer Count New products (AWPs, elec cranes) Key Accomplishments: 39% full-year EBITDA growth Improved mfg velocity Strong organic growth Key Accomplishments: 240bps full-year margin expansion Improved scale benefits Operating efficiencies Key Priorities: Cost reductions Reduced supply chain costs Increase unit production Key Priorities: Supply chain efficiencies Operating leverage Improved mix
Investment Summary Business transformation underway; focused on long-term value creation Business transformation underway, led by CEO Michael Coffey. Building a three-year roadmap to drive commercial expansion, operational excellence and disciplined capital management Investment Summary Key Catalysts Recent move into higher-margin equipment rental business. Significant opportunity for organic growth, capabilities/service expansion; durable, recurring revenue stream Legacy equipment business supported multi-year secular tailwinds. Construction activity across energy, infrastructure and utility end-markets supports stable equipment recycle as old units age-out Delivering innovative, efficient products to the market. Growing zero emissions product solutions; NPD driving share gains, particularly in North America Leverage Reduction. Focused on directing free cash flow toward debt reduction; At 2.9x, year-end leverage below targeted range, expect further progress in 2024 Management and board aligned with shareholder interests. Insiders owns approximately 39% of the shares outstanding as of 12/31/23. Compelling 2025 targets. Anticipating 25% revenue growth and between 300-500 BPS of EBITDA margin expansion by 2025. “Elevating the People and Process of Construction” Committed to higher-growth, higher-margin and a more profitable business over the next three years. Guided by our strategy Elevating Excellence, a value creation framework
Fourth Quarter and Full-Year 2023 Results
Key Messages Fourth Quarter and Full-Year 2023 Highlights Performance highlighted by solid organic growth, continued operating execution, strong margin expansion 1.5% Lifting Equipment revenue growth during 4Q (excl chassis sales) despite difficult compare Strong execution drove 162 bps of y/y 4Q23 gross margin expansion Full-year adjusted EBITDA of $29.6 million, up 39%; adjusted EBITDA margin expansion of 239 bps Solid Revenue Growth Lifting Equipment revenue increased 1.5% during 4Q (excl chassis sales) driven by increased throughput and strong demand trends Rental Momentum Rental revenue increased 7% due to strong demand drivers, pricing benefits and ramp-up of Lubbock branch Operating Execution 4Q23 gross margin increased 162 bps, driven by pricing benefits, improved productivity, and increased fixed cost absorption; full-year gross margin expansion of 313 bps EBITDA Margin Expansion 4Q23 adjusted EBITDA margin of 10.2%, flat y/y; full-year adjusted EBITDA margin up 239 bps to 10.1% Healthy Backlog Levels Backlog decreased versus last year owing to increased throughput and portfolio rationalization, backlog remains at elevated levels at roughly 9 months of sales Elevating Excellence Continued progress on strategic initiatives including growing momentum in new product introductions, ramp of new Rental branch in Lubbock, and strong execution on manufacturing throughput 2024 Outlook 2024 EBITDA forecast assumes 8% growth at the mid-point of the guidance range driven by end market strength, combined with continued operational improvements
4Q23 and Full-Year 2023 Financial Performance Strong operational and commercial execution, Elevating Excellence gaining momentum 4Q23 and full-year 2023 results highlighted by strong demand trends in Lifting Equipment, gross margin expansion, and progress on Elevating Excellence initiatives Fourth Quarter and Full-Year 2023 Key Highlights Elevating Excellence Key Highlights 4Q revenue grew 2% excl chassis sales driven by growth in Rental and Lifting Equipment 4Q gross margin of 20.9% up 162 bps due to higher pricing, better manufacturing throughput, and efficiency gains 4Q adjusted EBITDA margin of 10.2% 2023 adjusted EBITDA of $29.6MM, up 39% y/y; margin of 10.1%, up 239 bps Backlog decreased due to increased manufacturing velocity, portfolio optimization; backlog healthy at 9 months of sales Strong customer response for new product introductions Increased market share in targeted markets Ramp of new Rental location in Lubbock, TX Ongoing resource optimization initiatives driving improvement in manufacturing throughput New sourcing initiatives provide opportunity for incremental cost savings Net leverage of 2.9x, down from 3.9x at year-end 2022, achieved goal of 3.0x ahead of plan
4Q23 Performance Summary Strong growth, meaningful margin improvement Favorable end market trends and strong execution Revenue growth due to favorable market trends benefitting Lifting Equipment, rental growth Backlog down at year-end owing to increased throughput, remains healthy at 9-months of sales Gross margin improved 162 bps y/y due to operational improvement, improved mix, and more favorable pricing Trailing twelve-month EBITDA of $29.6 million, up 39% from last year, 10.1% TTM EBITDA margin 2% y/y Revenue Growth (ex chassis) ($MM) Backlog Healthy at 9-Months of Sales ($MM) 162 bps y/y Gross Margin Expansion (%) 39% y/y TTM Adjusted EBITDA Growth ($MM)
Disciplined Balance Sheet Management Focus on debt reduction and investment in organic growth initiatives Capital allocation focused on debt reduction and organic growth initiatives Stable liquidity profile, modest decline due to normal seasonal working capital requirements Debt levels increased following the acquisition of Rabern completed in Apr-22 Net leverage of 2.9x, down from 3.9x at YE22 driven by strong EBITDA growth. Achieved long-term target of 3.0x or less ahead of plan Cash and Availability ($MM) Net Leverage Ratio (Net debt to Adjusted EBITDA) Net Debt ($MM)
Full-Year 2024 Financial Guidance Outlook reflects 8% Adjusted EBITDA growth* and continued margin expansion Initial 2024 guidance reflects favorable end market trends and progress on Elevating Excellence initiatives Continued end market momentum and contribution from new products driving solid revenue growth Improved production velocity and operating efficiencies resulting in margin expansion and strong Adjusted EBITDA growth Expect continued balance sheet de-leveraging Fiscal Full-Year 2023 Revenue Adjusted EBITDA Adjusted EBITDA Margin $291.4 $29.6 10.1% $ in millions Fiscal Full-Year 2024 $300 to $310 $30 to $34 10.5%* * At mid-point of guidance range
Appendix
Statement on Non-GAAP Financial Measures NON-GAAP FINANCIAL MEASURES AND OTHER ITEMS In this presentation, we refer to various non-GAAP (U.S. generally accepted accounting principles) financial measures which management uses to evaluate operating performance, to establish internal budgets and targets, and to compare the Company's financial performance against such budgets and targets. These non-GAAP measures, as defined by the Company, may not be comparable to similarly titled measures being disclosed by other companies. While adjusted financial measures are 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 these measures are useful to investors in assessing our operating results, capital expenditure and working capital requirements and the ongoing performance of its underlying businesses. A reconciliation of Adjusted GAAP financial measures is included with this presentation. All per share amounts are on a fully diluted basis. The quarterly amounts described below are unaudited, are reported in thousands of U.S. dollars, and are as of the dates indicated.
Appendix - Reconciliations Reconciliation of GAAP Net Income to Adjusted Net Income
Appendix - Reconciliations Reconciliation of GAAP Net Income to Adjusted EBITDA