Manitex, owner of Valla PM, Oil & Steel and Little Giant cranes, has received a Letter Notice from the Listing Qualifications Department of the Nasdaq Stock Market, stating that because the company has not yet filed its results for the quarter ending September 30th, it is no longer in compliance with Nasdaq Listing Rules which requires all listed companies to file all required financial reports with the Securities and Exchange Commission on a timely basis.

The Notice has no immediate effect on the listing or trading of the company’s shares and Manitex had already stated that it plans to file restated annual and quarterly financial statements for 2016 and 2017, which would cause it to delay the publication of its third quarter results.

Manitex has responded to the notice, saying that all such restatements and related filings will be completed as quickly as possible, and that it intends to take all necessary steps to maintain compliance with all listing requirements of Nasdaq.



The issue revolves around the fact that in 2016, the company sold 39 cranes for $15 million to a single broker customer in a series of transactions that were structured on a ‘bill and hold’ arrangement. The revenue was included in 2016. 10 of the units, worth $3 million were returned during 2016 and subsequently sold to other customers, with 29 cranes sold for approximately $12 million. In addition, the company made various payments that were expensed in 2016 and 2017 to the broker and its related entities.

“In connection with its review of its financial results for the quarter ended September 30, 2017, the company became aware that the prior accounting treatment for the transactions was not correct. Specifically, the company has preliminarily concluded that the relationship with the broker qualified as a Variable Interest Entity and should therefore have resulted in a different accounting treatment. The 2016 sales should Have been deferred to match the final delivery dates to the end dealer customers which is part of the current restatement. The impact on 2016 results is likely to be in the region of a four percent- or $12 million fall in revenues and $2 million drop in profits. The changes are also likely to have a positive impact on 2017. The Audit Committee has also engaged external counsel to perform an investigation.

The company has also stated that it expects revenues for the quarter to come in at around $53 million, with a backlog of $50.3 million.



Chief executive David Langevin said: “Our business in 2017 has shown substantial improvement over last year, with a 34 percent increase in revenue and we believe that, when reported, our results will show a significant uptick in gross margin and we have made good progress deleveraging the balance sheet. Our niches within the industrial equipment market continue to show signs of recovery, and our portfolio, which has grown prudently through R&D and our PM acquisition has us well-positioned for future growth.”

“Manitex, our straight-mast crane business, has made incremental market share gains throughout the year, with our share reaching 40 percent for the year to date, which is an all time record level for this unit. Since late 2016, we have seen a consistent upturn in the backlog, which has enabled a gradual increase in our production volumes in Georgetown, Texas, both for our new and time tested products.”

“PM remains a significant opportunity for us, and we continue to take steps to aggressively grow this
expanding knuckle boom crane business both in North America and beyond. We are making good progress in this area and, as previously reported, we announced several new PM distribution agreements during the quarter. There are also opportunities for margin gains at PM on the cost side, which we are implementing now to help us reach or exceed our long term profitability, EBITDA, and other performance targets for our organisation.”

“We have worked diligently to get to this point, by focusing our business efforts to the right portfolio of products, managing our balance sheet, and optimising our cost structure, and while we are pleased with the progress we’ve made, we believe that we have only just begun to tap into the earnings potential of the Manitex group of companies. The orders we have taken, the distribution agreements we have signed, and other industry and economic data suggest a brightening demand picture and give us confidence in planning for continued production increases into the fourth quarter, and 2018. We believe that going forward our efforts will generate higher levels of sales and cash flows, and ultimately improved returns for our shareholders, as we execute our plans and take advantage of opportunities that continue to develop within the markets we serve.”