Recent Developments
Impact of COVID-19
The COVID-19 pandemic has significantly impacted our ability to meet demand for
the Company's products. While these impacts began to subside in 2021 and
continue to decrease in 2022, the Company experienced, and is still
experiencing, supply chain and logistic constraints and increased costs that
negatively impact its ability to manufacture and ship products to meet customer
requirements.
Business Overview
The following management's discussion and analysis of financial condition and
results of continuing operations should be read in conjunction with the
Company's financial statements and notes and other information included
elsewhere in this Quarterly Report on Form 10-Q.
Backlog
The Company's backlog was approximately $214 million and $189 million at
June 30, 2022 and December 31, 2021, respectively.
Acquisition of Rabern Rentals
On April 11, 2022, the Company entered into a Membership Interest Purchase
Agreement to acquire a 70% membership interest in Rabern Rentals, LLC
("Rabern"), which acquisition also closed on April 11, 2022. Rabern rents heavy
duty and light duty commercial construction equipment, mainly to commercial
contractors on a short-term rental basis. Rabern also rents equipment to
homeowners for do-it-yourself projects.
Amarillo National Bank Financing
Also on April 11, 2022, the Company entered into a Commercial Credit Agreement
(the "Credit Agreement"), by and among the Company, the Company's domestic
subsidiaries and Amarillo National Bank, which provides for a $40 million
revolving credit facility that matures on April 11, 2024, a $30 million
revolving credit facility that matures on April 11, 2024 and a $15 million term
loan that matures on October 11, 2029. This new banking facility provided the
funds for the Rabern acquisition and working capital facilities for both the
Manitex and Rabern businesses.
CIBC Loan Agreement Payoff
In connection with the Rabern acquisition and the entry by the Company into the
Credit Agreement, on April 11, 2022, the Company repaid in full all outstanding
indebtedness and other amounts outstanding of approximately $12.8 million, and
terminated all commitments and obligations under, its prior Loan and Security
Agreement with CIBC Bank USA (the "Prior Loan Agreement"), which satisfied all
of the Company's debt obligations under the Prior Loan Agreement. The Company
was not required to pay any pre-payment premiums as a result of the repayment of
indebtedness under the Prior Loan Agreement. In connection with the repayment of
such outstanding indebtedness by the Company, all security interests, mortgages,
liens and encumbrances granted to the lenders under the Prior Loan Agreement
were terminated and released.
30
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses