Car News
Car Reviews
Cars for Sale
Car Discussion

Veri-Tek International, Corp. Announces First Quarter 2008 Results

BRIDGEVIEW, Ill., May 13, 2008 -- Veri-Tek International, Corp.(AMEX:VCC) , a leading provider of engineered lifting solutions including boomtruck cranes, rough terrain forklifts and special mission orientedvehicles, today announced financial results for the first quarter endedMarch 31, 2008.

For the three months ended March 31, 2008, net sales were $23.5 millioncompared to $23.1 million in the three months ended March 31, 2007. Salesof Manitex crane products increased approximately four percentyear-over-year while sales of material handling product were adverselyimpacted by the economic uncertainty in North American markets and delaysin the receipt of anticipated military orders. The Company"s first quarter2008 gross profit was $4.3 million, or 18.1% gross margin, compared to $4.2million, or 18.2% gross margin in the first quarter of 2007. The slightdecrease in gross margin reflects increased margins of crane products fromimproved mix offset by a decrease in margin for the forklift/specializedcarrier product line due to lower sales in North American markets, thenegative impact of a stronger Canadian dollar and costs associated with theintegration of the Noble product line, of approximately $0.2 million

"While certain areas within the North American capital equipment marketremain under pressure, our crane business is performing in-line with ourexpectations," commented David Langevin, Chairman and Chief ExecutiveOfficer of Veri-Tek. "We have experienced a 14% growth in our backlog sinceDecember 31 2007, which reflects continued demand for our crane productsand that our end markets, particularly energy, remain active. Progress hasbeen made regarding our efforts to diversify our revenue and expand intogrowing international markets. We expect to see initial financial benefitsin the third quarter this year from the recently announced agreements withleading international capital equipment dealers. In particular, theagreement announced with our Russian distributor positions us in one of themost rapidly growing regions across the globe."

Total operating expenses for the quarter ended March 31, 2008 were $3.7million, compared to total operating expenses of $3.3 million in the sameperiod last year. The increase is primarily related to the Company"sparticipation in the Con Expo trade show and increased investment inresearch and development.

Net income from continuing operations for the three months ended March31, 2008 was $0.5 million, or $0.05 per basic and diluted share (based on9.8 million basic and 10.3 million diluted weighted average sharesoutstanding) compared to $0.1 million, or $0.01 per basic and diluted share(based on 7.9 and 8.5 million basic and diluted weighted average sharesoutstanding, respectively) for the first quarter of 2007.

EBITDA (2) for the three months ended March 31, 2008 was $1.1 millioncompared to $1.5 million in the same quarter of last year. The reduction inEBITDA arises from the lower operating income from continuing operationsfor the first quarter of 2008 largely accounted for by the increasedexpenditure on attendance at the Con Expo show.

The Company completed the quarter ended March 31, 2008 with $20.9million in working capital and a current ratio (defined as current assetsdivided by current liabilities) of 2.3 to 1. Working capital increased inthe quarter principally due to raw materials for increased craneproduction, work in process relating to a specialized carrier underconstruction and a small increase in finished goods inventory of craneproduct. Total outstanding debt increased to $26.3 million at March 31,2008 from $25.0 million at December 31, 2007 as the company utilized itsline of credit during the quarter. Shareholder"s equity as of March 31,2008 increased 1.8% to $31.2 million from $30.7 million as of December 31,2007. See the financial tables that accompany this press release for acomplete definition of working capital and current ratio.

Andrew Rooke, Veri-Tek President and Chief Operating Officer, commented,"The first quarter of 2008 has seen several challenges in our NorthAmerican markets but the progress during the past year in reducing our debtand lowering our materials and operating costs have assisted us in meetingthese. The growth of our business against the backdrop of the uncertaintyin the markets we have served to date is evidence of the strength of ourproduct lines and that we are gaining market share. We believe there areopportunities for us to continue to boost productivity and lower oursourcing costs that should help offset the trend of rising material costs.These initiatives coupled with our continued activities to achieve a globalmarket presence should result in continued value creation and improvedfinancial performance for the long-term."

Management will be hosting a conference call to review the quarterlyresults at 4:30 PM, today, Tuesday, May 13. Anyone interested inparticipating should call 800-762-9441 if calling within the United Statesor 480-629-9041 if calling internationally. A replay will be availableuntil May 20, 2008, which can be accessed by dialing 800-406-7325 ifcalling within the United States or 303-590-3030 if callinginternationally. Please use pass code 3875923 to access the replay. Thecall will also be accompanied live by webcast over the Internet andaccessible at the company"s corporate website at VERI_TEK.