Manitex International (MNTX) saw its loss widen to $14.28 million, or $0.88 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.50 million, or $0.34 a share. On an adjusted basis, net profit for the quarter stood at $0.32 million, or $0.02 a share compared with a net loss of $2.13 million, or $0.13 a share in the last year period. Revenue during the quarter dropped 14.66 percent to $64.98 million from $76.14 million in the previous year period. Gross margin for the quarter contracted 101 basis points over the previous year period to 15.41 percent. Operating margin for the quarter stood at negative 4.67 percent as compared to a negative 2.47 percent for the previous year period.
Operating loss for the quarter was $3.03 million, compared with an operating loss of $1.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.44 million compared with $2.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 390 basis points in the quarter to 6.83 percent from 2.92 percent in the last year period.
Chairman and chief executive officer, David Langevin commented, "As we have consistently indicated throughout the year, demand in the bulk of the industrial equipment markets we serve remained at very low levels in 2016, which resulted in a drop-off in sales throughout our product lines at Manitex. However, we have made excellent progress in transforming the company, as we took steps that would optimize our margin profile and reduce our debt. These steps included the divestiture of CVS Ferrari and Liftking, the continued rebuild of ASV, and cost reduction initiatives which saved us nearly $11 million in 2016, ahead of plan for the second consecutive year."
Operating cash flow turns negative
Manitex International has spent $3 million cash to meet operating activities during the year as against cash inflow of $6.38 million in the last year. Cash flow from investing activities was $18.44 million from investing activities during the year as against cash outgo of $9.40 million in the last year. It has incurred net capital expenditure of $1.38 million on net basis during the year, down 32.57 percent or $0.66 million from year ago.
The company has spent $16.75 million cash to carry out financing activities during the year as against cash inflow of $5.94 million in the last year period.
Cash and cash equivalents stood at $6.42 million as on Dec. 31, 2016, up 8.45 percent or $0.50 million from $5.92 million on Dec. 31, 2015.
Debt comes down
Manitex International has recorded a decline in total debt over the last one year. It stood at $140.26 million as on Dec. 31, 2016, down 11.10 percent or $17.51 million from $157.77 million on Dec. 31, 2015. Total debt was 44.11 percent of total assets as on Dec. 31, 2016, compared with 38.80 percent on Dec. 31, 2015. Debt to equity ratio was at 1.41 as on Dec. 31, 2016, up from 1.21 as on Dec. 31, 2015.
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