MNTX » Topics » General

This excerpt taken from the MNTX 10-Q filed May 16, 2007.

General

The Company had a single line of business, testing and assembly equipment prior to acquiring Manitex on July 3, 2006. The Company used to only design and manufacture testing and assembly equipment used primarily in the manufacture of driveline components in the automotive and heavy equipment industries. With the acquisition of Manitex, the Company now operates in a second business segment, referred to as lifting equipment. See Note 3. Manitex, a leading provider of engineered lift solutions in North America, is based in Georgetown, Texas. Manitex designs, manufactures, and markets a comprehensive line of boom trucks, sign cranes and trolley boom unloaders. Manitex’s boom trucks and crane products are primarily used for industrial projects and infrastructure development, including roads, bridges and commercial construction, and energy exploration.

Historically, the Company’s testing and assembly equipment segment has focused on designing, developing and building specialty equipment for the automotive and heavy equipment industries. Most of this segment’s revenues come from of the sales of assembly and testing equipment. The Company strategy to grow the segment was to expand its testing services and to launch manufacturing operations. Despite its efforts, most of the Company’s revenues continue to come from the sales of assembly and test equipment. The Company intends to build on its experience in designing and building this equipment and its patented technology to provide axle testing services to automotive manufacturers. To date, the Company has not derived material revenues from providing axle testing service and has not received any revenues from manufacturing the precision driveshafts. Recently, the Company decided to only accept new orders for production of specialty equipment when it has an acceptable gross profit margin. This has resulted in a dramatic decrease in revenues for the test and assembly equipment segment.

The testing and assembly equipment segment derive most of the Company’s revenue under purchase orders from OEMs and tier 1 Suppliers. The volume and timing of orders placed by the Company’s customers vary due to several factors, including variation in demand for its customers’ products, changes in its customers’ manufacturing strategies and general economic conditions. The Company recognizes revenue from its specialty equipment using the percentage of completion method. The Company recognizes revenue in its testing business when services are rendered.

Manitex manufactures specialized and highly engineered boom trucks and crane products, with a concentration in cranes with larger lifting capacity. The Company believes that this emphasis allows us to differentiate our product from competition and helps to insulate the Company from the effects of cyclical residential housing market. The Company’s products are primarily used in industrial projects, energy exploration and infrastructure development including roads, bridges and commercial construction projects.

 

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Certain projects, especially highway and road construction, are dependent on state and federal funding. Demand for the Company’s products is impacted by the current economic climate, which may also affect the state and federal funding of projects.

The results of operations for the Manitex (the Acquisition) have only been included in the accompanying consolidated statement of operations from the July 3, 2006, the date of the Acquisition. Manitex sales for the three months ended September 30, 2006 were $20.0 million an increase of $4.9 million or 32.8% from the $15.1 million in the comparable period in 2005. Sales for the nine months ended September 30, 2006 were $50.0 million an increase of $2.1 million or 4.3% from the $47.9 million in the comparable nine month period in 2005. Starting in the third quarter of 2005, Manitex experienced problems in meeting demand due to a lack of capital which caused supply constraints which in turn negatively impacted revenues from third quarter 2005 through the second quarter of 2006. The Company now has adequate cash to support current demand.

In February 15, 2005, the Company completed an initial public offering of 2,500,000 shares of common stock at $6.00 per share. On March 2, 2005, the Company completed the sale of the underwriters’ over-allotment option of 375,000 shares of our common stock. Net proceeds after the underwriters’ discount and other expenses relating to the offering are estimated to be $15.1 million.

This excerpt taken from the MNTX 10-Q filed Nov 14, 2006.

General

The Company had a single line of business, testing and assembly equipment prior to acquiring Manitex on July 3, 2006. The Company used to only design and manufacture testing and assembly equipment used primarily in the manufacture of driveline components in the automotive and heavy equipment industries. With the acquisition of Manitex, the Company now operates in a second business segment, referred to as lifting equipment. See Note 3. Manitex, a leading provider of engineered lift solutions in North America, is based in Georgetown, Texas. Manitex designs, manufactures, and markets a comprehensive line of boom trucks, sign cranes and trolley boom unloaders. Manitex’s boom trucks and crane products are primarily used for industrial projects and infrastructure development, including roads, bridges and commercial construction, and energy exploration.

Historically, the Company’s testing and assembly equipment segment has focused on designing, developing and building specialty equipment for the automotive and heavy equipment industries. Most of this segment’s revenues come from of the sales of assembly and testing equipment. The Company strategy to grow the segment was to expand its testing services and to launch manufacturing operations. Despite its efforts, most of the Company’s revenues continue to come from the sales of assembly and test equipment. The Company intends to build on its experience in designing and building this equipment and its patented technology to provide axle testing services to automotive manufacturers. To date, the Company has not derived material revenues from providing axle testing service and has not received any revenues from manufacturing the precision driveshafts. Recently, the Company decided to only accept new orders for production of specialty equipment when it has an acceptable gross profit margin. This has resulted in a dramatic decrease in revenues for the test and assembly equipment segment.

The testing and assembly equipment segment derive most of the Company’s revenue under purchase orders from OEMs and tier 1 Suppliers. The volume and timing of orders placed by the Company’s customers vary due to several factors, including variation in demand for its customers’ products, changes in its customers’ manufacturing strategies and general economic conditions. The Company recognizes revenue from its specialty equipment using the percentage of completion method. The Company recognizes revenue in its testing business when services are rendered.

Manitex manufactures specialized and highly engineered boom trucks and crane products, with a concentration in cranes with larger lifting capacity. The Company believes that this emphasis allows us to differentiate our product from competition and helps to insulate the Company from the effects of cyclical residential housing market. The Company’s products are primarily used in industrial projects, energy exploration and infrastructure development including roads, bridges and commercial construction projects. Certain projects, especially highway and road construction, are dependent on state and federal funding. Demand for the Company’s products is impacted by the current economic climate, which may also affect the state and federal funding of projects.

The results of operations for the Manitex (the Acquisition) have only been included in the accompanying consolidated statement of operations from the July 3, 2006, the date of the Acquisition. Manitex sales for the three months ended September 30, 2006 were $20.0 million an increase of $4.9 million or 32.8% from

 

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the $15.1 million in the comparable period in 2005. Sales for the nine months ended September 30, 2006 were $50.0 million an increase of $2.1 million or 4.3% from the $47.9 million in the comparable nine month period in 2005. Starting in the third quarter of 2005, Manitex experienced problems in meeting demand due to a lack of capital which caused supply constraints which in turn negatively impacted revenues from third quarter 2005 through the second quarter of 2006. The Company now has adequate cash to support current demand.

In February 15, 2005, the Company completed an initial public offering of 2,500,000 shares of common stock at $6.00 per share. On March 2, 2005, the Company completed the sale of the underwriters’ over-allotment option of 375,000 shares of our common stock. Net proceeds after the underwriters’ discount and other expenses relating to the offering are estimated to be $15.1 million.

This excerpt taken from the MNTX 10-Q filed Aug 14, 2006.

General

We derive most of our revenue under purchase orders from OEMs and Tier 1 Suppliers. The volume and timing of orders placed by our customers vary due to several factors, including variation in demand for our customers’ products, changes in our customers’ manufacturing strategies and general economic conditions. We recognize revenue from our specialty equipment using the percentage of completion method. We recognize revenue in our testing business when services are rendered. The testing business has not generated material revenue to date. The driveshaft manufacturing portion of our business will recognize revenue when products are shipped. To date, we have generated no revenue from selling our driveshaft manufacturing services.

Our operating profit for our specialty equipment depends on the mix between the cost of materials in the equipment and the cost of labor and manufacturing overhead allocated to the equipment. Our driveshaft assembly products contain less sophisticated technology than our axle testing products, and therefore, have a lower cost of production. In addition, as we gain experience in manufacturing a certain kind of equipment, we usually achieve increased efficiencies, which result in lower labor costs and manufacturing overhead for that equipment. While we may achieve some level of increased efficiency with respect to manufacturing specialty equipment, our gross margins related thereto will likely continue to vary, as we must produce different kinds of equipment and each piece of equipment must meet certain specifications of our customers. As we implement our growth strategy of providing testing services and manufacturing precision driveshafts, we believe that our gross margins will stabilize, as the equipment that we produce will be less varied.

On February 15, 2005 we completed an initial public offering of 2,500,000 shares of our common stock at a price of $6.00 per share and on March 2, 2005 we completed the sale of the underwriters’ over-allotment option of 375,000 shares of our common stock. Net proceeds after underwriters’ discount and other expenses relating to the offering are estimated to be $15.2 million.

 

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This excerpt taken from the MNTX 8-K filed Jul 10, 2006.

GENERAL

As used in this Note, the term “Holder” shall mean the Payee or other endorser of this Note who is in possession of it.

IN WITNESS WHEREOF, the Maker and Payee have caused this Note to be executed, and have accepted the terms and provisions of same, as of the date first written above.

 

MANITEX, LLC,

a Delaware limited liability company,

By:  

/s/ Michael C. Azar

Its:   Vice President & Secretary

 

Acknowledgment of Receipt and

Acceptance of Note by MANITEX SKYCRANE, LLC,

a Delaware limited liability company,

By:  

/s/ David J. Langevin

Its:   Chief Executive Officer

Dated: May 31, 2006

This excerpt taken from the MNTX 10-Q filed May 15, 2006.

General

Historically, our business has focused on designing, developing and building specialty equipment for the automotive and heavy equipment industries. In October 2003, our predecessor Company was purchased by Veri-Tek International Corp., formerly known as Quantum-Veritek, Inc., an affiliate of Quantum Value Partners, LP, pursuant to an asset purchase agreement. As a result of this transaction, we intend to implement a new growth strategy of expanding our testing services and lunching manufacturing operations. While we will continue to sell specialty equipment, we intend to build on our experience in designing and building this equipment and our patented technology to provide axle testing services to automotive manufacturers. We also intend to become a manufacturer of precision driveshafts using a new manufacturing process that we have developed implementing our patented True Vehicle Running Center Shaft Assembly System (“TVRC”). Sales of our assembly and testing equipment presently comprise most of our revenues. We have not derived material revenues to date from providing axle testing service or manufacturing precision driveshafts.

We derive most of our revenue under purchase orders from OEMs and Tier 1 Suppliers. The volume and timing of orders placed by our customers vary due to several factors, including variation in demand for our customers’ products, changes in our customers’ manufacturing strategies and general economic conditions. We recognize revenue from our specialty equipment using the percentage of completion method. We recognize revenue in our testing business when services are rendered. The testing business has not generated material revenue to date. The driveshaft manufacturing portion of our business will recognize revenue when products are shipped. To date, we have generated no revenue from selling our driveshaft manufacturing services.

Our operating profit for our specialty equipment depends on the mix between the cost of materials in the equipment and the cost of labor and manufacturing overhead allocated to the equipment. Our driveshaft assembly products contain less sophisticated technology than our axle testing products, and therefore, have a lower cost of production. In addition, as we gain experience in manufacturing a certain kind of equipment, we usually achieve increased efficiencies, which result in lower labor costs and manufacturing overhead for that equipment. While we may achieve some level of increased efficiency with respect to manufacturing specialty equipment, our gross margins related thereto will likely continue to vary, as we must produce different kinds of equipment and each piece of equipment must meet certain specifications of our customers. As we implement our growth strategy of providing testing services and manufacturing precision driveshafts, we believe that our gross margins will stabilize, as the equipment that we produce will be less varied.

On February 15, 2005 we completed an initial public offering of 2,500,000 shares of our common stock at a price of $6.00 per share and on March 2, 2005 we completed the sale of the underwriters’ over-allotment option of 375,000 shares of our common stock. Net proceeds after underwriters’ discount and other expenses relating to the offering are estimated to be $15.2 million.

 

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This excerpt taken from the MNTX 10-Q filed Nov 14, 2005.

General

 

Historically, our business has focused on designing, developing and building specialty equipment for the automotive and heavy equipment industries. In October 2003, our predecessor company was purchased by Veri-Tek International Corp., formerly known as Quantum-Veritek, Inc., an affiliate of Quantum Value Partners, LP, pursuant to an asset purchase agreement. As a result of this transaction, we have a new executive management team. Our new executives bring new expertise and a new focus and direction to our Company. Specifically, our new executives have experience in manufacturing, business development, sales and marketing and managing the financial operations of a publicly traded manufacturing Company.

 

Under our new executive management team, we intend to implement a new growth strategy of expanding our testing services and launching manufacturing operations. While we will continue to sell specialty equipment, we intend to build on our experience in designing and building this equipment and our patented technology to provide axle testing services to automotive manufacturers. We also intend to become a manufacturer of precision driveshafts using a new manufacturing process that we have developed implementing our patented True Vehicle Running Center Shaft Assembly System (“TVRC”). Sales of our assembly and testing equipment presently comprise most of our revenues. We have not derived material revenues to date from providing axle testing service or manufacturing precision driveshafts.

 

We derive most of our revenue under purchase orders from OEMs and Tier 1 Suppliers. The volume and timing of orders placed by our customers vary due to several factors, including variation in demand for our customers’ products, changes in our customers’ manufacturing strategies and general economic conditions. We recognize revenue from our specialty equipment using the percentage of completion method. We recognize revenue in our testing business when services are rendered. The testing business has not generated material revenue to date. The driveshaft manufacturing portion of our business will recognize revenue when products are shipped. To date, we have generated no revenue from selling our driveshaft manufacturing services.

 

Our operating profit for our specialty equipment depends on the mix between the cost of materials in the equipment and the cost of labor and manufacturing overhead allocated to the equipment. Our driveshaft assembly products contain less sophisticated technology than our axle testing products, and therefore, have a lower cost of production. In addition, as we gain experience in manufacturing a certain kind of equipment, we usually achieve increased efficiencies, which result in lower labor costs and manufacturing overhead for that equipment. While we may achieve some level of increased efficiency with respect to manufacturing specialty equipment, our gross margins related thereto will likely continue to vary, as we must produce different kinds of equipment and each piece of equipment must meet certain specifications of our customers. As we implement our growth strategy of providing testing services and manufacturing precision driveshafts, we believe that our gross margins will stabilize, as the equipment that we produce will be less varied.

 

On February 15, 2005 we completed an initial public offering of 2,500,000 shares of our common stock at a price of $6.00 per share and on March 2, 2005 we completed the sale of the underwriters’ over-allotment option of 375,000 shares of our common stock. Net proceeds after underwriters’ discount and other expenses relating to the offering are estimated to be $15.1 million.

 

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This excerpt taken from the MNTX 10-Q filed May 13, 2005.

General

 

Historically, our business has focused on designing, developing and building specialty equipment for the automotive and heavy equipment industries. In October 2003, our predecessor Company was purchased by Veri-Tek International Corp., formerly known as Quantum-Veritek, Inc., an affiliate of Quantum Value Partners, LP, pursuant to an asset purchase agreement. As a result of this transaction, we have a new executive management team. Our new executives bring new expertise and a new focus and direction to our company. Specifically, our new executives have experience in manufacturing, business development, sales and marketing and managing the financial operations of a publicly traded manufacturing company.

 

Under our new executive management team, we intend to implement a new growth strategy of expanding our testing services and launching manufacturing operations. While we will continue to sell specialty equipment, we intend to build on our experience in designing and building this equipment and our patented technology to provide axle testing services to automotive manufacturers. We also intend to become a manufacturer of precision driveshafts using a new manufacturing process that we have developed called S.M.A.R.T. manufacturing. Sales of our assembly and testing equipment presently comprise most of our revenues. We have not derived material revenues to date from providing axle testing service or manufacturing precision driveshafts.

 

We derive most of our revenue under purchase orders from OEMs and Tier 1 Suppliers. The volume and timing of orders placed by our customers vary due to several factors, including variation in demand for our customers’ products, changes in our customers’ manufacturing strategies and general economic conditions. We recognize revenue from our specialty equipment using the percentage of completion method. We recognize revenue in our testing business when services are rendered. The testing business has not generated material revenue to date. The driveshaft manufacturing portion of our business will recognize revenue when products are shipped. To date, we have generated no revenue from selling our driveshaft manufacturing services.

 

Our operating profit for our specialty equipment depends on the mix between the cost of materials in the equipment and the cost of labor and manufacturing overhead allocated to the equipment. In 2002, we began to produce more axle testing equipment than driveshaft assembly equipment. This trend has continued through the current three-month period ended March 31, 2005. Our driveshaft assembly products contain less sophisticated technology than our axle testing products, and therefore, have a lower cost of production. In addition, as we gain experience in manufacturing a certain kind of equipment, we usually achieve increased efficiencies, which result in lower labor costs and manufacturing overhead for that equipment. While we may achieve some level of increased efficiency with respect to manufacturing specialty equipment, our gross margins related thereto will likely continue to vary, as we must produce different kinds of equipment and each piece of equipment must meet certain specifications of our customers. As we implement our growth strategy of providing testing services and manufacturing precision driveshafts, we believe that our gross margins will stabilize, as the equipment that we produce will be less varied.

 

We continue to depend upon a relatively small number of customers for a significant percentage of our revenue. Significant reductions in sales to any of our large customers would have a material adverse effect on our results of operations. As of March 31, 2005, two customers accounted for 66% of our revenue, 79% of our unbilled revenue and 70% of our accounts receivable. In the very recent past, the United States economy has experienced a significant downturn and has not recovered fully from the recent recession. Compounding the general unease about the current business climate are the still unknown economic and political impacts, long-term, of the September 11, 2001 terrorist attack and hostilities in Iraq, Afghanistan and elsewhere. These events caused, some of our customers to significantly reduce or delay the volume of specialty equipment ordered from us. We are unable to predict how long these factors will continue to affect our business. Any such termination of our customer relationships or change, reduction or delay in orders could have an adverse effect on our results of operations or financial condition.

 

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On February 15, 2005 we completed an initial public offering of 2,500,000 shares of our common stock at a price of $6.00 per share and on March 2, 2005 we completed the sale of the underwriters’ over-allotment option of 375,000 shares of our common stock. Net proceeds after underwriters’ discount and other expenses relating to the offering are estimated to be $15.2 million.

 

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