Manitex International Inc (MNTX) 2009 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to the Manitex International, Inc. fourth quarter 2009 results conference call.

During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions. (Operator Instructions). This conference is being recorded today, Thursday, March 25, 2010.

And I would now like to turn the conference over to David Langevin, Chairman and CEO. Please go ahead, sir.

Thank you. Good afternoon, ladies and gentlemen, and thank you for your interest in Manitex International. On the call with me today is Andrew Rooke, our President and Chief Operating Officer; and Scott Rolston, our Senior Vice President of Sales for Manitex International.

Please see our website or our release for replay instructions for this call which will be available until April 1st. We'll be using slides again to assist in this presentation. Referring to the first slide regarding the Safe Harbor statement, please appreciate that as always, we will do our best to provide our investors and interested parties with our expectations with the understanding that there are significant risks in the markets. Therefore please be mindful of these risks and refer to our disclosures in our SEC filings for further guidance on our risks. Speaking of the SEC, since we are designated as smaller reporting Company, our 10-K filing date is due at the end of March and we will be filed on or before that due date. We released our earnings today as soon as our board and auditing group signed off on our numbers, which is prior to our filing date.

Let us now begin with the overview slide. It is an understatement to say 2009 was a lousy year for the equipment industry. But we feel we came through better than many and are looking forward to the future. Scott will review the state of the industry, and Andrew will review the numerous steps we took to reduce costs and manage through the disaster of the past year. But I do want to communicate the actions we took to take advantage of the opportunity this market presented for us, and the positive aspects that it has for us as shareholders. First, we added several really solid businesses that are perfectly in line with our strategy of building a position and higher margins specialty niches. It is obvious from our earnings that we bought these businesses at very attractive prices. And as a result of this long-term strategy as well as diligent cost control and other steps, our gross margins for the quarter were the best we've ever achieved. And our annual gross margins match up favorably with anyone in the industry. This is all against the back drop of a very poor sales cycle. As we begin to see a sales recovery, we expect these margins to hold up.

Another positive sign for us is the state of our backlog. We are sitting with the best mix that we have ever seen in our backlog. This mix should give us the foundation for a better than average year in 2010. Combine this with our already achieved international expansion, new product introductions, and significant market share gains, provides us with optimism as we continue to roll through this cycle. Additionally, as we have already seen and demonstrated, should opportunities present themselves as they appear to do in these economic circumstances, we will continue to try and add appropriate additional brands to our portfolio. Finally, we remain cash flow positive from operations, and with steady improvements in our working capital and balance sheet ratios, we are left in a sound position for long-term growth.

With that quick overview, I will turn it over to Andrew and Scott. Andrew?

Thanks, David, and good afternoon and welcome, everyone.

Again, referring to the slides. Starting at slide four of the presentation. This shows the key figure for the fourth quarter of 2009 with comparisons for the third quarter of 2009 and the fourth quarter of 2008. Sales for the fourth quarter of $14.9 million were down 46% compared to the fourth quarter of 2008, but do not include $3.4 million of shipments made in the quarter to an international customer with deliveries in several extremely remote and hard to access locations. These shipments will be recognized under accounting GAAP rules as revenue in the first quarter of 2010. On a sequential quarter basis, sales were essentially flat with stronger sales for military, material handling products and strong sales with a new batch of Rough Terrain Cranes, were offset by slowing market demand for Boom Truck Cranes. Quarter four 2009 gross profit of $3.4 million was a reduction of $1.1 million from the fourth quarter of 2008. But we were very pleased with the gross margin percent of 23.1% for the quarter, an improvement of 680 basis points over the fourth quarter of 2008. This improvement was due to our continued control of manufacturing expenses and improved mix of products sold.

Operating expenses of $3.7 million, excluding a bargain purchase gain of $2.9 million recognized on the acquisition of Load King, was 3% lower than for the fourth quarter of 2008. Excluding the effect of new businesses acquired in 2009, the reduction was 12%, a gain reflecting our continued emphasis on cost control. We were pleased to be able to report net income from continuing operations for the quarter ended December 31, 2009 of $3.8 million, equivalent to $0.34 per share. This was after recording a gain on the acquisition of Load King of $2.9 million. Excluding this gain, net income from continuing operations was $0.9 million, equivalent to $0.08 per share.

Slide five provides the reconciliation of net income from continuing operations for both the fourth quarter and the full year of 2009 showing the impact of bargain purchase gains in the year. In the fourth quarter, we recorded a gain of $2.9 million on the Load King acquisition, and in the third quarter we recorded a gain of $0.9 million on the acquisition of Badger. Slide six shows a bridge between the Q4 0f 2008 net income from continuing operations of $0.3 million to the net income from continuing operations of Q4 of 2009 of $3.8 million. Walking through the reconciliation the impact of the $12.9 million in lower revenues resulted in the gross profit decline of $2.1 million. Through improved product mix and cost management actions where we were able to adjust our manufacturing activities, we improved our margin percent 23.1%, reducing the adverse profit impact by $1 million to a total gross profit reduction of $1.1 million.

Our cost reduction activities also resulted in the benefit of $0.1 million in operating expenses, that is R&D and SG&A, excluding the impact of acquisitions this is really a reduction from Q4 of 2008 of $0.4 million in the quarter. Key contributors to net income improvement between the two periods were the gain on the acquisition of Load King and an increase in tax benefit from deferred tax valuation allowances of $1.7 million. Slide seven shows the summarized key figures for the full years of 2007, 2008, and 2009. For the full year of 2009, sales of $55.9 million, a 47% reduction compared to 2008. Despite the worst market conditions for over 50 years through a combination of continued product development and (inaudible) and international expansion, we increased our market share in our Key Crane market by 650 basis points. The launch of the Badger rough terrain crane took us into a new sector of the crane market, and we secured seven important orders with military and international agencies for our material handling products.

As a result our backlog at December 31, 2009, shows an increase of 41% over December 31, 2008, and stood at $22.1 million. Gross margin percent for the year was 20%, an improvement of 4% compared to 2008, and SG&A expenses of $10.5 million were $2.4 million better than 2008. For the full year 2009 we reported net income from continuing operations of $3.6 million, or $0.33 per share compared to $1.8 million, or $0.17 for 2008. Included in our 2009 net income from continuing operations a gains on bargain purchase of $3.8 million, there were no such gains in 2008. With the uncertain economic conditions in 2009, we focused very early on managing cash and we're pleased to generate a positive swing of $3.8 million in cash flow from operating activities in the year, leading to cash generation of $2.2 million in the year.

Moving on to slide eight, throughout 2009 we have discussed ensuring our manufacturing activity is balanced with the level of demand. Through careful management and, unfortunately, having to make some reductions in force as well as flex working hours, after adjusting for acquisitions, we reduced our manufacturing expenses in the full year of 2009 compared to 2008 by 48%, or $7.8 million. Similarly, we reduced our engineering, SG&A, and corporate costs by $4.6 million, or 34% compared to 2008. In total, reductions of $12.4 million were achieved year on year, reductions that significantly impacted all Manitex's employees, who however have remained resilient and committed to which we are very grateful.

Slide nine shows our key working capital and the liquidity ratios which remain in good condition with our current ratio at 2.8 at the end of the fourth quarter of 2009, compared to 2.4 at the December 31, 2008. Working capital excluding the impact of the Badger and Load King acquisitions, was being reduced by $1.9 million in 2009. Together with maintaining strong cost controls, this has been a key element in the generation of cash from operating activities, which as I previously mentioned, was $2.2 million for 2009. Slide 10 shows our debt and liquidity position. During the fourth quarter of 2009, our net debt increased, largely through the acquisition of Load King where we issued two notes for the acquisition.

Usage on our line of credit also increased principally on the Canadian line where materials were required for production of the units in backlog. At December 31, 2009, we had $2.2 million of availability on our lines of credit at the end of the quarter based on allowable collateral. The 12 months ended December 31, 2009, we generated adjusted EBITDA of $2 million, equivalent to 3.5% on sales. Slide 11 shows the last five quarter sales and our anticipated sales for the first quarter of 2010. David will refer to these in his closing comments. But the slides show sales in the last two quarters of 2009 both being ahead of the first two quarters of 2009 and our estimate that Q1, 2010 will again be higher with a value of approximately $20 million.

And now I'd like to hand it over to Scott Rolston, our Senior Vice President of Sales and Marketing. He's going to provide an update of commercial activity in our Crane operations.

Thank you, Andrew.

I appreciate the opportunity to provide an update regarding Manitex's Crane sales status, as well as the exciting project development projects we continue to invest in. Last quarter we reported that feedback from our customers indicated we should expect slow first and second quarters for 2010 with activity gradually increasing in the latter part of the year. Even so, we expressed restrained optimism for Q4 of 2009 due to the fact we had received stock orders from two separate dealers. These were the first such stock orders received in the four very challenging quarters of 2009. But they did not translate to a more general industry pick up or maintenance of a steady state of activity. Instead, our Crane industry experienced a significant run rate decline in the last two months of 2009 which has continued for the first two months of 2010. However, while shipments within our industry remain depressed, we believe they are in line with our previous expectations regarding slow first and second quarters 2010.

No one enjoys the market we have faced for the last six quarters. However, Manitex remains steadfast in our strategies for success in this market; more customer contact and continued product development. We continue to drive our selling activities to ensure we obtain more coverage per selling dollar spent. Additionally, we have increased the collaboration with customers to understand what is needed to solve their problems so we can provide them with cost effective solutions. This strategy continues to allow us to gain market share as we are up further 200 basis points from year end 2009 and 1300 basis points from the same month in 2009. With our focused efforts, we remain targeted on outright market leadership.

In the fourth quarter of 2009, we announced the introduction of our new 50-ton Crane with 165-foot of main boom tip height, targeted for the growing power line construction industry. It provides powered boom reach not obtained by any Manitex competitor, and reach working height of 209 feet and can be configured bridge-legal and permit free, thereby reducing operating costs and increasing flexibility of use. The capabilities of this Crane were conceived by a valued Manitex customer and converted to the final product by our design team. Launch of this Crane has been a great success, even in the economy we face. The Crane is performing beyond expectations in the field and is tackling multiple functions. In it's ability to provide high-reach man lift work as well as significant high-reach lifting capacity.

Right-of-way work which used to require the contractor to provide two pieces of equipment is now being accomplished by a single Manitex 5155S. Another exciting addition to this machines capabilities in Q1 of 2010, is the ability to provide an insulated jib feature that allows us to compete in markets currently requiring product which cost significantly in excess of Manitex's market price. We believe the 2007 introduction of the Manitex 5096S and [6110S] Cranes rates highly successful with some 140 Cranes shipped in the first 20 months after introduction. In continuation of this highly successful product, Manitex has announced a Heavy Lift version of this machine, with initial order deliveries commencing in April. This Heavy Lift option will outlift most existing 60-ton truck Cranes that reach and all currently available Boom Truck competition. It provides a machine with superior lifting capacity and reduced weight and selling price to the retail customer.

Oil field services are a major customer to this industry. The key to success with these customers resides in the ability to continue to increase the capability of what is available on a commercially available chassis. Manitex leads this equation and we expect given our demonstrated history to maintain the leadership position for Crane capacity and boom length to support this industry. Last quarter we announced the development project to produce a 40-ton trailer mounted crane for this market. Earlier this week we were pleased to announce the first set of orders associated with this crane from a well known major oil field service provider. Initial deliveries are scheduled for third quarter and fourth quarter of 2010. Obtaining this order required the commitment of Development Resources in this uncertain market. We believe this segment is essential for long term success and we are confident our investments in R&D will lead to redundant order opportunities with limited competition.

In 2009 we also announced success in penetrating the markets controlled by multi-product rental consolidators. In fact, we were successful in completing a long term supply agreement with one such major player. This was our first such effort to obtain orders from this very price demanding market since 2001. Shipments to these customers amounted to some 15% of all unit orders in 2009. For 2010, we continue to have a team focused on this market and on increasing our share within it. We remain confident we have executed the appropriate plan to remain successful in this market in 2010 and beyond. Our 2009 acquisition of Badger Equipment Company has allowed us access to the Rough Terrain Crane market, as well as customers associated with railroads and refineries. The Badger Cabdown Crane has seen immediate success with rail customers which contributed to the fourth quarter 2009 results. The association between Badger and Manitex has already provided the first cross over boom truck business to a rail customer. Expectations are high that this relationship will continue to provide mutual benefits to each product line.

Our main targets for this product throughout the remainder of 2010 will be refinery customers currently utilizing thousands of cab down cranes in excess of 15 years in age, and the continuation of our relationships with the railroads. International efforts continue to remain at the forefront of long term plans. Last quarter we announced expectations to receive 20% of our 2010 orders from outside of our traditional North American market. Order intake gives us confidence to reaffirm this expectation. Our product, combined with the efforts of our dealer throughout the UAE, and the Kingdom of Saudi Arabia, has led to a well received introduction to this region. These efforts have resulted in official certification by German based MAN trucks to mount Manitex's products on these chassis. MAN has worldwide distribution and presents additional opportunities for Manitex to increase our international capabilities. We intend to capitalize on these opportunities.

The Russian market in which we remain the only approved US manufacturer of telescopic product remains challenged. In spite of this, we continue to target this very large market as a key strategic opportunity upon recovery. Our Moscow based dealer continues to invest in the brand and has obtained certification to mount Manitex product on four additional brands of chassis. We will be represented at CTT Conex for Russia, the largest construction equipment exposition in Russia, in June. We continue to believe we are positioned for succession in this region. We have also recently invested in our international selling efforts with the addition of a European based full-time Manitex employee, who brings many years of construction equipment sales experience to our team and possesses worldwide connections which will benefit all Manitex international companies.

In summary, we believe our continued product development and investment positions us for significant success and a leadership position upon recovery. Our international investment is achieving success and will continue to diversify our opportunities. We are taking advantage of synergies among our growing number of companies, to seek out new customers, enhance development, and control costs. Most importantly, our customers are affirming our correct direction by continuing to reward us with increased market share. Again, thank you for the opportunity to share this update. I'll now hand the call back to David.

Thank you, Scott. Thanks, Andrew.

In closing we stated in our release that we expected our first quarter sales would be approximately $20 million. We also stated that our backlog stood at $22.1 million at the end of the year. But for clarity, we should point out that some of our products require a long lead time and some customers require delivery later in the year. So not all of our backlog is produced in the first quarter. We are trying to give some indication of our sales based upon what we have in visibility for outlook. As that visibility continues to improve, we will continue to try to extend our outlook throughout 2010.

With those comments I would now like to open it up and welcome any questions.

Thank you, sir.

We will now begin the question-and-answer session. (Operator Instructions).

Our first question comes from the line of Ned Borland with Hudson Securities. Please go ahead.

Good afternoon, guys, and great quarter. There was a lot of color on the market and thanks for that. I just have one question here on the backlog, the $22 million. What are the sort of margin expectations that go along with that mix that's in backlog? And I know some of it is going to be delivered later in the year. But what you have in backlog, is that some of your high margin products or is that sort of your mainstream products?

As I stated, Ned, in my prepared remarks, we have a good mix in our backlog. I would say generally, it's a higher margin products in our backlog versus the - - some of the lower margins that we obviously will have during the year. But for the backlog, specifically, it's a higher margin area.

Okay. And are there any cost headwinds that we should think about with regard to the gross margin as we go forward? Or I mean given that you did 23% or so gross margin this quarter, that sounds like it should be sustainable if volume picks up, correct?

In the near term and as we've said in our prepared remarks, we believe that as the sales volume does increase, we will hold up. I don't think, generally we've taken the cost out and as Andrew stated, some of it has been very difficult costs. But we wanted to make sure that our cost equaled or exceeded our sales which we did. And I don't expect that we will add those costs back on an equal basis. I think we'll have some coming out of the box as I indicated in my remarks. We expect good margins.

Okay. And then on the run rate, $20 million you're expecting for the first quarter. Is there anything, any kind of pockets given your backlog that would make us think that perhaps the second quarter couldn't be as good?

Well, again - - I tell you what I was trying to do or what we were trying to do. We had some unusual activity in the fourth quarter because as we mentioned, we shipped product that at the time that we shipped it, we expected it was going to be booked and sold in the fourth. But we later concluded that because those products were received sometime in the first quarter and then paid for in the first quarter, so they were shipped in the fourth, received and paid in the first, I didn't want to have expectations that the fourth quarter was our run rate. And especially with the strength in our backlog, we wanted to at least give some short term indications that we expect based on the visibility we have, a little bit stronger sales going into the first quarter.

And Andrew or Scott, if you have any belief or theory that those expectations should diminish, I would like your comments. But from my standpoint, it seems like we have as indicated with our release this week on some new orders, we expect orders. And Scott did say that the first and second quarter from our expectations weren't just on a Crane side, not including all our other businesses. But on the Crane side was lower and strengthening during the year. But again, we haven't given any - - we don't have enough visibility yet to give anything of a concise number for the second quarter. But I don't expect it to fall off.

Okay. Thanks.

Thank you, Ned.

Thank you. And our next question comes from the line of Rick Hoss with Roth Capital Partners. Please go ahead.

Hi, good afternoon, gentlemen.

Hi, Rick.

Couple questions for you here. First, kind of going into the backlog question you just received. So it's safe to assume that the $3.5 million is really pushed out into the first quarter for the military orders is in that as well as $3 million of the most recent $8 million that you've announced. Right? You're looking at about $7 or so million dollars of that 22 to be military forklift, which assuming that's some of your more higher gross margin business?

I think actually, Rick, the recent order that we received this week, that would not be in that - -

I'm sorry.

- - in that backlog because that was received this week and it's a 12/31 backlog. So those numbers would not be in there. I think if I recall, Andrew or Scott should probably recall better. But I think we indicated those - - shipment of those were in later quarters.

Most of it was second quarter, Dave. And some in the third quarter.

So the most recent announcement I was referring to that, that might be where I was confused, confusing you, Rick. When I said that recent orders that we announced were giving us a little bit more strength into the second quarter but not in the first quarter.

Okay, okay. That makes sense. And looking at revenue on a sequential basis, third and fourth quarter is fairly flat, and I'm sorry if I missed why your SG&A had come up quite a bit.

I don't know if we stated. Did you say anything specifically Andrew on the SG&A?

On a sequential basis?

Right?

There was a slight increase there and some of that was on the sales and shipping expenses. That was really the key point. That moved it up.

Okay, but that - - wouldn't be related to the orders that were shipped, right? You would take that charge in the first - -?

Correct.

Okay. So then Andrew, do we look at this $3.3 million type of rate, is that - - does that continue on through 2010?

Well, essentially, yes. Clearly, one of the big movements in all of that is the level of selling expenses and an R&D,and we've been talking about both of those things quite a lot. Those move with the mix of product on whether they're international, whether they're domestic, and the timing of some of the R&D expenses. So, I can't give you the number, a number. With regard to any sort of significant levels of increase, other than sort of normal inflationary things, I'm not aware of anything particularly that will drive that through.

Okay. Just looking at SG&A line, then 3.3 would probably be your baseline and then as revenue assume the ramp at some point in 2010. Then that would obviously have to come up as well. Right? I'm sure there's some cost that you - -

Yes, the S part of the SG&A of course is the variable, with the sales and the G&A generally would stay. Except for first quarter, you have your filing of your 10-K, your audits and those kinds of expenses that generally go through the fourth quarter, first quarter. But we don't have - - 2011 will be our next year for big conventions and shows and that kind of thing. Scott, I don't know of a huge show cycle that we have for 2010.

There's very little in 2010, but quite a bit in 2011.

Right. Right. Okay. And then as far as what your customers are telling you right now, the push back into I guess into your sales. What are they saying? And I'm going to add a little bit in listening to the H&E Equipment conference call, they're talking about utilization rates still being pretty low. And their opinion on the demand for new equipment is pretty low as well. I guess what is your comment on both of those?

Well my comment would be that it depends on the sector and what the customer is focusing on. Our dealers who are focusing on energy sector and on power line construction, their utilizations have gone up significantly and their inventories have gone down significantly. Companies such as H&E that are much more diversified and don't go after niches, they are probably not seeing a great improvement yet. But overall, we expect the first and second quarters to remain slow, and we expect the third and fourth quarters to improve over the first two.

Okay, and then your customers? What's the feedback to your sales reps?

Well the best feedback we have - - we measure every single quote, and discuss every single quote, every Friday morning. And quoting activity has gone up significantly. As far as a percentage of how far it's gone up, I can't give you an exact number other than it's the Friday morning call is much more fun.

Uh-huh okay.

Much less painful than it has been the last year.

Something to talk about then. All right. Last question then. Dave, this is I guess more of a tougher one for you for these military orders that come, they're there and they're not. Are we done for 2010 at this point do you think?

No, no. We announced this week that we had some more military orders and we tried to imply in there that we expected some more based on the indications that we received from our - - from the various branches and customers that we deal with there. So - - I wouldn't say it's done. But your assessment is correct. They come and they go. But we've had - - we're going to have a good run in 2010.

If we're lucky, there's a lot - - not only just military but quasi military and quasi government agencies that we have long term contracts with now. I think we've been doing a really good job of stabilizing, expanding, and improving upon a niche that we had principally with Lift King. And as I've mentioned several times, it's a company that's been dealing with these agencies for over 40 years. So we're really well entrenched and are delivering a product and have been improving on that product to handle the material handling needs which are growing as these agencies continue to expand around the world. So I guess I would give you cautious optimism, but by no means would I say we are done for 2010. And I don't know if Andrew - - do you want to comment on that? Because you follow and work with these guys as much as I do.

You're absolutely right, Doug. It's very difficult to predict, but the things that we're doing and seeing would lead to some optimism that there's still opportunity.

The good thing is, Rick, they're very long lead processes and we have a good tailwinds going throughout 2010 in those sectors.

Okay. All right, guys. Thanks. Appreciate it.

Thank you. And our next question comes from the line of Harper Stevens with Thompson Davis Asset Management. Please go ahead.

Thanks. Actually, my questions have already been asked and answered. Thank you.

Okay. Thanks.

Thank you. And our next question comes from the line of Jeffrey Lamb with [Tuxedo Road] Associates. Please go ahead.

Hi, guys.

Hi, Jeff.

First let me compliment you on the completeness of your financial disclosure. For a Company of this size to present to investors the amount of information that they need to get their hands around Manitex is fairly impressive. So - -

Thanks, Jeff. We really - - it's important to us. I think it's important to be totally transparent and give everybody all the information they have to be able to analyze and make a solid investment.

Well as an investor we appreciate it.

Thanks, Jeff.

Can you comment - - or discuss inventory levels in the fourth quarter? They appeared to if I looked at it correctly, have increased rather dramatically. Is that a function of the order that was shipped but not booked? Or what's happening with inventories?

That's exactly the primary reason, Jeff, is that the order that was shipped and but not booked as a sale, was therefore forced or not forced but properly recorded back into inventory, and so that is the Andrew, is that $3.4 million of the increase?

That's the sales value of the increase, absolutely. The other important thing to remember is that if you're comparing to 2008 and to actually the end of the third quarter of 2009 against 2008, we've added both Badger and Load King. And of course compared to Q3, we added Load King. And Load King was acquired on the last day of the year. So if you're doing a ratio with sales turns as well, obviously there's no sales recorded for Load King during the year for us. So those things may be influencing the picture a little bit.

I think the other thing - - our actual inventory in the core businesses did decrease over the period. That's our year on year. I think the numbers are roundabout a million dollars. The raw material inventories, we reduced in areas where our volumes have been a bit lower. And we talked about the Crane business a little bit lower in the fourth quarter. In the material handling businesses where the backlog at the end of the year was a bit stronger. We had some raw materials in there to make sure that we can produce for the first quarter according to the schedule. And I think the other thing that's worthy of mention is that during 2009 you don't really see the impact of this in the numbers, but through 2009 we dealt with a significant number of customer cancellations right in that sort of first quarter.

The first four months of 2009 when everybody was trying to come to terms with what was going on. And the team very successfully managed those cancellations that were either in production, we had inventory full and managed that through the process. So that is essentially all flushed out. There's a little bit left but actually not a lot at the end of the day and the team has done a great job on that.

Andrew, that's a well presented discussion on the topic. Our mutual friend, Vince Gallager, is in the process of writing a book on famous horses. But he doesn't give a lot of attention to infamous jockeys. And I will say as somebody who is a great fan of Chuck Knight's at Emerson Electric, you guys are doing a great job. And my hats off to you. And just keep it up.

Thanks, Jeff, appreciate it.

Thank you. And our next question comes from the line of Peter [DeVoight] with Morgan Stanley. Please go ahead.

Hi, Peter.

It's not Peter.

We got the big horse. Sorry about that.

Well, this question is going to be the same question you've heard 10 times already. But if that 3.4 had been added back to the fourth quarter - -

Right.

How much of that would hit the bottom line? Would that $0.34 have changed much at all?

I guess what we could say without improperly disclosing information is to say that it would probably be consistent with the gross margin of our other products. Would that be a fair statement, Andrew?

I think that's fair enough. So, FL would be - - you could do the math on that and come up with the adjusted earnings per share but that will flow through the first quarter.

So by the way, kudos also. Well managed job for a difficult period of time. But the other question would be at what point during the upcoming year will you feel comfortable in being able to project what you might earn this year?

Well, as I've stated in my closing comments, as we hopefully continue to see improved visibility, we'll continue to communicate everything that we can to our shareholders so they can make a risk assessment and other interested parties in our Company. So it would be tough at this point and the lawyers would give me so many qualifications. Whatever he said doesn't matter, so I want to be able to say it with some definitiveness so that it's something that you can count on. As soon as we can, as I've said in my comments, as soon as we have some better visibility, we'll be forthright in indications for our outlook.

I think everybody on this call has already reviewed the risk assessment and for your guys to be able to get through 2009 the way you did is something next to unbelievable. So kudos to you, and keep up the good work.

Thanks.

Thank you.

(Operator Instructions).

One moment please for our next question.

If there's nothing else, we can - -

There are no further questions.

Okay. Thank you very much for your interest in Manitex International. We appreciate your support and look forward to 2010. Thank you, again.

Ladies and gentlemen, that does conclude our conference for today. We thank you for your participation and at this time you may now disconnect.