The manufacturer’s net revenues rose 19% to a record $62.6m, compared to $52.5m in the second quarter last year and 5% compared to the first quarter 2013 revenues of $59.6m. Net income was $2.7m, an increase of 15% in comparison to $2.3m in 2012.
Cranes with capacities greater than 45t increased as a proportion of total revenues, Manitex said, contributing approximately $5m of the total increase. The lower margin, lower capacity boom trucks and chassis sales also increased approximately $3m, in response to improved commercial construction activity, which utilises the lower-capacity, less-specialized cranes. The company has recently moved its lower capacity crane production to its Badger Equipment production facility, anticipating and allowing it to meet this growing demand.
The company said that part sales as a percentage of revenue for the quarter were approximately 18% lower than the previous year, because of an increase in new product revenues.
There was a 12% increase in sales of cranes on the number of units basis from the previous quarter, although this was partially offset by reduced material handling and equipment distribution sales.
Gross profit of $12.3m equated to 19.6% of sales, compared to $10.8m or 20.5% for the second quarter of 2012, and $10.2m or 17.2% in the first quarter of 2013. The company said that year-over-year reduction in gross margin percentage was generated by an increase in the mix of lower-capacity cranes and chassis and a lower percentage of higher margin part sales. It also said that part sales are anticipated to return in line with their historical levels over time, as the recent rapid increase in new equipment sales become increasingly deployed and utilised.
The company also said that it that the expected acquisition of Sabre Manufacturing would affect results in the next quarter when the deal for the firm should be finalised. Sabre is a specialist manufacturer of trailer tanks and containment solutions. Amongst other customer sectors, it serves the petrochemical industry, which has recently been a good source of sales for Manitex’s higher capacity cranes, which are used for refinery maintenance.
Speaking at an investors conference call, transcribed by seekingalpha.com, chairman and chief executive David Langevin said, "In the short term, we are working in a challenging macroeconomic environment. Fortunately, our organization has new products, which are being well received. And while the global economy is slow, it continues to grow at some level.
"We believe that second half sales will be similar to the first half. Along with potential sales from Sabre, we will be reporting a very positive year-over-year improvement. As we’ve stated in previous quarterly calls, we like where we are positioned with our product profile in the marketplace. We believe that with the products we have to offer, combined with solid execution, along with an opportunistic acquisition strategy, we can continue to deliver superior returns to our shareholders".
