Manitex International, Inc. Annual Report 2013

FY2013 Annual Report · Manitex International, Inc.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013

Commission File No.: 001-32401

MANITEX INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Michigan
(State of incorporation)

9725 Industrial Drive
Bridgeview, Illinois
(Address of principal executive offices)

42-1628978
(I.R.S. Employer
Identification No.)

60455
(Zip Code)

Registrant’s telephone number, including area code: (708) 430-7500

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Common Stock, no par value
Preferred Share Purchase Rights

Name of each exchange on which registered
The NASDAQ Stock Market LLC
The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes (cid:133)(cid:3) No
(cid:95)(cid:3)

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes (cid:133)(cid:3) No
(cid:95)(cid:3)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes (cid:95)(cid:3) No (cid:133)(cid:3)

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files). Yes (cid:95)(cid:3) No (cid:133)(cid:3)

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. (cid:133)(cid:3)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.

Large Accelerated Filer (cid:133)(cid:3) Accelerated Filer (cid:95)(cid:3) Non-Accelerated Filer (cid:133)(cid:3) Smaller reporting company (cid:133)(cid:3)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes (cid:133)(cid:3) No (cid:95)(cid:3)

The aggregate market value of the shares of common stock, no par value (“Common Stock”), held by non-affiliates of the registrant as of
June 30, 2013 was approximately $89.6 million based upon the closing price for the Common Stock of $10.95 on the NASDAQ Stock
Market on such date.

The number of shares of the registrant’s common stock outstanding as of March 7, 2014 was 13,801,277.

Part III of this Annual Report on Form 10-K incorporates by reference information (to the extent specific sections are referred to herein)
from the registrant’s Proxy Statement for its 2014 Annual Meeting (the “2014 Proxy Statement”) to be filed with the Commission within
120 days after the end of the fiscal year ended December 31, 2013.

DOCUMENTS INCORPORATED BY REFERENCE

TABLE OF CONTENTS

BUSINESS
RISK FACTORS
UNRESOLVED STAFF COMMENTS
PROPERTIES
LEGAL PROCEEDINGS
MINE SAFETY DISCLOSURES

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
SELECTED FINANCIAL DATA
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
CONTROLS AND PROCEDURES
OTHER INFORMATION

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
EXECUTIVE COMPENSATION
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
PRINCIPAL ACCOUNTANT FEES AND SERVICES

PART I

ITEM 1.
ITEM 1A.
ITEM 1B.
ITEM 2.
ITEM 3.
ITEM 4.

PART II

ITEM 5.

ITEM 6.
ITEM 7.

ITEM 7A.
ITEM 8.
ITEM 9.

ITEM 9A.
ITEM 9B.

PART III

ITEM 10.
ITEM 11.
ITEM 12.

ITEM 13.
ITEM 14.

PART IV

ITEM 15.

EXHIBITS, AND FINANCIAL STATEMENT SCHEDULES

SIGNATURES

1
2
13
20
20
21
21

22
24

24
41
42

90
90
91

91
91
92

92
92
92

92
92

PART I

References to the “Company,” “we,” “our” and “us” refer to Manitex International, Inc., together in each case with our subsidiaries and any
predecessor entities unless the context suggests otherwise.

Forward-Looking Statements

When reading this section of this Annual Report on Form 10-K, it is important that you also read the financial statements and related notes
thereto. This Annual Report on Form 10-K and certain information incorporated herein by reference contain forward-looking statements
within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this Annual Report
on Form 10-K, other than statements that are purely historical, are forward-looking statements and are based upon management’s present
expectations, objectives, anticipations, plans, hopes, beliefs, intentions or strategies regarding the future. We use words such as
“anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and
similar expressions to identify forward-looking statements. Forward-looking statements in this Annual Report on Form 10-K include,
without limitation: (1) projections of revenue, earnings, capital structure and other financial items, (2) statements of our plans and
objectives, (3) statements regarding the capabilities and capacities of our business operations, (4) statements of expected future economic
conditions and the effect on us and on our customers, (5) expected benefits of our cost reduction measures, and (6) assumptions underlying
statements regarding us or our business. Our actual results may differ from information contained in these forward looking-statements for
many reasons, including those described below and in the section entitled “Item 1A. Risk Factors”:

(1) a future substantial deterioration in economic conditions, especially in the United States and Europe;

(2) our customers’ diminished liquidity and credit availability;

(3) difficulties in implementing new systems, integrating acquired businesses, managing anticipated growth, and responding to

technological change;

(4) our ability to negotiate extensions of our credit agreements and to obtain additional debt or equity financing when needed.

(5)

the cyclical nature of the markets we operate in;

(6)

increases in interest rates;

(7) government spending; fluctuations in the construction industry, and capital expenditures in the oil and gas industry;

(8)

the performance of our competitors;

(9)

shortages in supplies and raw materials or the increase in costs of materials;

(10) our level of indebtedness and our ability to meet financial covenants required by our debt agreements;

(11) product liability claims, intellectual property claims, and other liabilities;

(12) the volatility of our stock price;

(13) future sales of our common stock;

(14) the willingness of our stockholders and directors to approve mergers, acquisitions, and other business transactions;

(15) currency transaction (foreign exchange) risks and the risk related to forward currency contracts;

(16) certain provisions of the Michigan Business Corporation Act and the Company’s Articles of Incorporation, as amended, Amended and
Restated Bylaws, and the Company’s Preferred Stock Purchase Rights may discourage or prevent a change in control of the
Company; and

(17) a substantial portion of our revenues are attributed to limited number of customers which may decrease or cease purchasing any time.

The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not
currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or
operating results. We do not undertake, and expressly disclaim, any obligation to update this forward-looking information, except as
required under applicable law.

ITEM 1. BUSINESS

Our Business

The Company is a leading provider of engineered lifting solutions. The Company operates in two business segments: the Lifting Equipment
segment and the Equipment Distribution segment. The Company’s predecessor company was formed in 1993 and was purchased in 2003
by Veri-Tek International, Corp., which changed its name to Manitex International, Inc. in 2008.

Lifting Equipment Segment

The Company is a leading provider of engineered lifting solutions. The Company designs, manufactures and distributes a diverse group of
products that serve different functions and are used in a variety of industries. Through its Manitex, Inc. subsidiary it markets a
comprehensive line of boom trucks, truck cranes and sign cranes. Manitex’s crane products are primarily used for industrial projects,
energy exploration and infrastructure development, including, roads, bridges and commercial construction. Badger Equipment Company
(“Badger”) is a manufacturer of specialized rough terrain cranes and material handling products. Badger primarily serves the needs of the
construction, municipality, and railroad industries.

Manitex Liftking ULC (“Manitex Liftking” or “Liftking”) sells a complete line of rough terrain forklifts, a line of stand-up electric forklifts,
cushioned tired forklifts with lifting capacities from 18 thousand to 40 thousand pounds, and special mission oriented vehicles, as well as
other specialized carriers, heavy material handling transporters and steel mill equipment. Manitex Liftking’s rough terrain forklifts are used
in both commercial and military applications. Specialty mission oriented vehicles and specialized carriers are designed and built to meet the
Company’s unique customer needs and requirements. The Company’s specialized lifting equipment has met the particular needs of
customers in various industries that include utility, ship building and steel mill industries.

Manitex Load King, Inc. (“Load King”) manufactures specialized custom trailers and hauling systems typically used for transporting heavy
equipment. Load King trailers serve niche markets in the commercial construction, railroad, military, and equipment rental industries
through a dealer network.

CVS Ferrari, srl (“CVS”) designs and manufactures a range of reach stackers and associated lifting equipment for the global container
handling market, which are sold through a broad dealer network. On November 30, 2013, CVS Ferrari Srl. (the “Purchaser” or “CVS”), an
Italian corporation and a wholly owned subsidiary of the Company completed an Asset Purchase Agreement with Valla SpA (the “Seller”),
an Italian based developer of precision pick and carry cranes, to acquire substantially all of the Seller’s operating assets and business
operations, including the Seller’s accounts receivable, inventory and equipment. Valla develops precision pick and carry cranes with lifting
capacities from 2 to 90 tons, using electric, diesel and hybrid power options. Its cranes offer wheeled or tracked, fixed or swing boom
configurations, with special applications designed specifically to meet the needs of its customers.

Manitex Sabre, Inc. (“Sabre”) manufactures a comprehensive line of specialized mobile tanks for liquid and solid storage and containment
solutions with capacities from 8,000 to 21,000 gallons. Its mobile tanks will be sold to specialized independent tank rental companies and
through the Company’s existing dealer network. The tanks are used in a variety of end markets such as petrochemical, waste management
and oil and gas drilling.

E quipment Distribution Segment

The Company operates a crane dealership that operates as Manitex Valla North America sales operations, distributes Terex rough terrain
and truck cranes, PM knuckle boom cranes and Manitex’s products. The Company treats these operations as a separate reporting segment
entitled “Equipment Distribution.” The Equipment Distribution segment also supplies repair parts for a wide variety of medium to heavy
duty construction equipment sold both domestically and internationally. The crane products are used primarily for infrastructure
development and commercial construction; applications include road and bridge construction, general contracting, roofing, and sign
construction and maintenance.

The Company’s North American Equipment Exchange division, (“NAEE”), markets previously-owned construction and heavy equipment,
domestically and internationally. This division provides a wide range of used lifting and construction equipment of various ages and
condition, and has the capability to refurbish the equipment to the customers’ specification.

Recent Acquisitions

On November 30, 2013, CVS Ferrari Srl., an Italian corporation and a wholly subsidiary of Manitex International, Inc., purchased the assets
of Valla SpA. Valla develops mobile cranes from 2 to 90 tons, using electric, diesel and hybrid power options. Its cranes offer wheeled or
tracked, fixed or swing boom configurations, with special applications designed specifically to meet the needs of its customers.

On August 19, 2013, Manitex Sabre, Inc. (“Sabre”) acquired the assets of Sabre Manufacturing, LLC, which is located in Knox, Indiana.
Sabre manufactures a comprehensive line of specialized mobile tanks for liquid and solid storage and containment solutions with capacities
from 8,000 to 21,000 gallons. Its mobile tanks will be sold to specialized independent tank rental companies and through the Company’s
existing dealer network. The tanks are used in a variety of end markets such as petrochemical, waste management and oil and gas drilling.

General Corporate Information

The Company’s principal executive offices are located at 9725 Industrial Drive, Bridgeview, Illinois 60455 and our telephone number is
(708) 430-7500. The Company’s website address is www.manitexinternational.com. Information contained on our website is not
incorporated by reference into this report and such information should not be considered to be part of this report.

FINANCIAL INFORMATION ABOUT BUSINESS SEGMENTS

The following is financial information about our Lifting Equipment and Equipment Distribution segments for the years ending
December 31, 2013, 2012 and 2011. The accounting policies of the segments are the same as those described in the summary of significant
accounting policies in the Notes to the Consolidated Financial Statements included in Item 8 of this Form 10-K, except corporate expenses
are not allocated to segments. The Company evaluates segment performance based upon operating income before corporate expenses.
Amounts shown are in thousands of dollars.

(in Thousands)

Revenues:

Lifting Equipment
Equipment Distribution
Inter-segment Eliminations

Total

Operating income:

AS OF OR FOR THE YEAR ENDED
DECEMBER 31,
2012

2011 (1)

2013

$ 228,772
16,951

$ 188,792
17,090

$ 130,330
11,986

(651 )

(633 )

(25 )

$ 245,072

$ 205,249

$ 142,291

Lifting Equipment
Equipment Distribution
Corporate expense
Elimination of inter-segment profit in inventory

$ 23,311
628
(6,391 )
(10 )

$ 19,880
222
(5,613 )
(30 )

$ 11,069
64

(4,532 )
—
6,601

Total

Total assets:

Lifting Equipment
Equipment Distribution
Corporate

Total

$ 17,538

$ 14,459

$ 170,808
10,847
1,075
$ 182,730

$ 143,749
7,562
193
$ 151,504

$ 114,133
7,333
125
$ 121,591

(1) Financial results include the results for CVS Ferrari, srl (our Italian Subsidiary) from the date the Company was formed in June 2010.
On July 1, 2010, CVS Ferrari, srl entered into an agreement to rent on an exclusive basis certain assets of CVS SpA, while CVS SpA
proceeded through the Italian bankruptcy process (concordato preventivo). CVS Ferrari, srl commenced operations in the third quarter
of 2010 utilizing the rented assets to manufacture reach stackers and associated lifting equipment for the global container handling
market. On July 1, 2011, the Company acquired the assets that were being rented and the rental agreement was terminated.

Financial results include the results for carry deck crane, Sabre and Valla from their dates of acquisition which are October 31,
2012, August 19, 2013 and November 30, 2013, respectively.

Lifting Equipment Segment

Boom Trucks

A boom truck is a straight telescopic boom crane outfitted with a hook and winch which is mounted on a standard flatbed commercial
(Class 7 or 8) truck chassis. Relative to other lifting equipment, boom trucks provide increased versatility and are capable of transporting
relatively large payloads from site to site at highway speeds. A boom truck is usually sold with outriggers, pads and devices for reinforcing
the chassis in order to improve safety and stability. Although produced in a wide range of models and sizes, boom trucks can be broadly
distinguished by their normal lifting capability as light, medium, and heavy-cranes. Various models of medium

or heavy-lift boom trucks can safely lift loads from 15 to 70 tons and operating radii can exceed 200 feet. Another advantage of the boom
truck is the ability to provide occasional man lift capabilities at a very low cost to height ratio. While it is not uncommon to see a very old
boom truck, most replacement cycles seem to trend to seven years. The market for boom trucks has historically been cyclical.

Although the Company offers a complete line of boom trucks from light to heavy capacity cranes much of our efforts have been devoted to
the development of higher capacity boom trucks specifically designed to meet the particular needs of customers including those in energy
production and power distribution. We believe it is an advantage to be skewed towards the heavier lifting capacity, since the heavier
capacity cranes have somewhat higher margins.

Markets that drive demand for boom trucks include power distribution, oil and gas recovery, infrastructure and new home, commercial and
industrial construction. The new home construction market, which uses lower capacity cranes, is probably the most cyclical and is where
our market share is the lowest. We believe that oil and gas extraction and power distribution offer the best chance for long-term growth and
are markets where the Manitex subsidiary’s products are well represented.

The Company sells its boom trucks through a network of over forty full service dealers in the United States, Canada, Mexico, South
America, and the Middle East. A number of our dealers maintain a rental fleet of their own. Boom trucks can be rented for either short or
long-term periods.

In September 2008, the demand for boom trucks was dramatically reduced as the United States and world financial markets came under
unprecedented stress. The impact on 2008, revenues was mitigated as the Company had a significant backlog at that time. However, in
2009, the boom truck industry felt the full effect of the financial crisis. As a result, sales of boom trucks declined to levels below those seen
in earlier recessions. In 2009, the Company’s boom truck shipments declined by approximately 50%, which we believe parallels the
industry decline in 2009.

In 2010, the Company believes that total industry boom truck units sales did not change significantly from the prior year. There was,
however, a modest increase in unit sales of boom trucks with higher lifting capacity and correspondingly higher selling prices. The higher
capacity lifting segment is the market segment where Manitex has its largest market share. The Company’s revenues for boom trucks
increased approximately 8.5% in 2010, while our unit shipments declined by approximately 17%. A change in product mix (to higher
lifting capacity boom trucks) accounts for the increase in 2010 revenues while unit sales decreased.

In 2011, the overall market for boom trucks strengthened considerably. It was, however, still considerably below previous market peaks. In
2011, the Company unit sales increased approximately 60%. The Company believes its 2011 percent unit sales growth is lower than the
overall industry growth in 2011. Much of the industry’s unit sales growth occurred in the lower lifting capacity boom truck segment, a
market segment where we traditionally have our lowest market share.

In 2012, the market for boom trucks again showed considerable improvement with total industry unit sales approaching pre-2008 levels.
The market dynamics are, however, considerably different than they previously were. Much of the current demand is being driven by niche
market sectors, i.e., oil and gas exploration and power line construction. The demand from the general construction market although slowly
improving is still not approaching pre-2008 levels. The Company’s boom truck unit sales for 2012 increased by approximately 65% as
compared to the prior year. The increase in unit sales reflects the Company’s strategic initiatives which have emphasized the development
of boom trucks with higher lifting capacities that target the oil and gas and power line distribution market segments.

In 2013, the overall market for boom truck was marginally down from the prior year. However, revenues generated from boom truck sales
by the Company increased by approximately 30% in 2013. Accordingly, the Company’s market share was also up. The revenue increased is
principally attributed to an increase in production

capacity. This increase in capacity allowed us to reduce the backlog that existed at December 31, 2012 and to more aggressively promote
the sale of our lower tonnage cranes. A significant portion of the December 2012 backlog was for higher tonnage cranes used in niche
markets segments particularly the North American energy sector. During the current year, there has been a softening in the demand for our
products which are related to the energy sector. The Company believes the decrease in demand during 2013 from the energy sector is
temporary, and that the North American energy sector will continue to grow and, in turn, will drive future demand for our products. In early
2014, the Company has seen an increase in orders for cranes with higher lifting capacities that serve niche markets, including the North
American energy sector.

Sign Cranes

A sign crane is similar to a boom truck in that it is a straight telescopic boom crane mounted on a commercially available chassis, but has a
man-basket attached to the end of the boom. Three companies control the large majority of the business and each possesses several hundred
units in its fleet. Sales to any of these three customers are performed on a direct basis and not through a dealer network. Currently, the
Company has no contracts to supply sign cranes to any of these three companies. Instead, the Company offers its sign cranes through a
network of dealers who sell to family run and smaller sized businesses.

The market for sign cranes is small and has been depressed the last several years as both large and small customers have been deferring the
purchase of sign cranes. The Company expects the market for sign cranes to gradually improve if general economic conditions continue on
a positive trajectory. The Company has not generated significant revenues from the sale of sign cranes in the last 3 years. Even, if the
Company were to obtain a contract to supply sign cranes to one of the three large customers, it would still only have a modest impact on
our future revenues.

Rough Terrain Cranes

Our subsidiary, Badger, sells specialized rough terrain cranes through a network of dealers. The Badger product line includes lattice cranes
with 20 to 30 ton lifting capacity marketed under the Little Giant trade name, and specialized 15 and 30 ton rough terrain cranes sold under
the Badger name. The 30 ton rough terrain crane sold under the Badger name was launched in 2009 and was the first in a new line of
specialized high quality rough terrain cranes. During the fourth quarter of 2012, Badger expanded the product line by launching a 15 ton
rough terrain crane which is also sold under the Badger and Manitex name.

The Little Giant line has five lattice boom models, three of which are dedicated rail cranes. In addition to the rail cranes, Badger sells a 30
ton truck crane and a 25 ton crawler crane. Although Badger end customers include states and municipalities, our sales are predominately to
railroads. The Company has an advantage over its competitors in selling to railroads as it is the only crane manufacturer that has integrated
the installation of rail gear into its production process. Competitors send their cranes to a third party to have rail gear added which both
increases cost and delays deliveries.

Badger continues to work on broadening the market for the crane to include non-railroad applications. The Company’s effort to broaden its
customer base has been hampered by weak demand from several potential customer bases due to general economic conditions.
Nevertheless, Badger has been successful in selling a number of cranes which are being used in non-railroad applications. Our efforts to
expand the customer base are continuing and we expect that in the future significant revenues from non-railroad customers can be
generated. These revenues are expected to come from states, municipalities, mining and oil refineries.

Specialized Highly Engineered Trailers

Load King designs and sells build-to-order specialized, highly engineered low-bed, heavy-haul, bottom-dump, and platform trailers and
hauling systems. The trailers, except for the bottom-dump, are typically used for transporting heavy equipment. Additionally, Load King
has recently launched a trailer refurbishment service.

Our trailers are utilized by commercial construction firms, equipment rental companies, oil field service companies, the railroad industry,
the U.S. military, and other end users to safely and efficiently haul specialized equipment. The Company routinely customizes its trailers
and/or innovates new features to address specific customer, end-market or application needs.

Manitex Load King markets its products through a network of dealers.

Rough Terrain Forklifts

Manitex Liftking manufactures a complete range of straight mast forklifts with capacities from 6,000 to 50,000 lbs. and lift heights from 10
to 32 feet. All Manitex Liftking straight mast forklifts feature exceptional ground clearance, easy access to service points, ergonomic
controls and easy operation. The Company also produces a series of tag along forklifts that mount to trucks with lifting capacity ranging
from 4,000 to 6,000 pounds. These mounted forklifts are ideal for bricklaying, landscaping, construction or any other application that
requires a forklift to tag along. The forklifts feature an easy to mount system, which allows an operator to securely mount or dismount the
forklift quickly.

Manitex Liftking forklifts include four rough terrain forklifts, in several configurations, which are sold under the Noble trade name. The
Noble product line was originally designed and marketed by Caterpillar in 1983 and subsequently sold through Eagle Pitcher’s dealers.
Noble has a reputation for providing durable, innovative and high quality products, and as a result, the Noble product has benefited from
very strong distribution, and has a large installed base giving rise to a healthy after-market parts business. The Noble rough terrain forklifts
are currently distributed through the Caterpillar dealer network.

The Company sells its rough terrain forklifts through a network of approximately fifty dealers in the United States and Canada.

Military Forklifts

Manitex Liftking military forklifts are used worldwide during both periods of conflict and peace. Manitex Liftking military units are
working for national militaries including the United States, Canada, and Britain. The Company’s exported military products (including
products sold to the U.S.) are sold through the Canadian Commercial Corporation which has direct contracts with various foreign (outside
of Canada) government agencies. The U.S. Department of Defense alone has hundreds of Manitex Liftking vehicles in the Navy, Army and
Air Force that they depend on daily. These vehicles range from small shipboard approved forklifts to the biggest articulating, rough-terrain
forklift in the world.

Manitex Liftking military forklifts have innovative features that allow them to meet strict military standards and perform in almost any
terrain. These features include the patented hydraulically removable counterweight that permits aircraft transportability of the forklift
without exceeding the load limits of the aircraft. The water fording capability of some Manitex Liftking vehicles allow continuous
operation in water depths of up to 5 feet (1.5 meters), providing true all-terrain operation. The Company believes that these features have
helped position Manitex Liftking as the product of choice for rough terrain military forklifts.

All of Manitex Liftking’s shipboard approved vehicles are structurally engineered to withstand a depth charge explosion while on an
aircraft carrier, and still be fully operational. The detachable mast and 2-piece operator’s cab on some of Manitex Liftking’s bigger vehicles
allow easy disassembly to satisfy height restrictions while being transported by road or rail. Attachments such as fork rollers and standard
ISO container handlers further increase the versatility of a Manitex Liftking forklift.

Manitex Liftking’s forklifts are built to exacting military standards including compliance with the quality controls required by ISO 9001-
2008. Before being shipped each machine is thoroughly tested on a military approved endurance track located adjacent to Manitex
Liftking’s military vehicle manufacturing plant. There are a limited number of test tracks in North America, and having a military approved
test track is an advantage.

The timing of customer orders can be expected to result in fluctuations in revenues from period to period. The expected fluctuations,
however, are not as dependent on general economic conditions as is our commercial business.

Mission Oriented Vehicles and Specialized Carriers

Special mission oriented vehicles and specialized carriers are designed and built to meet the Company’s unique customer needs and
requirements. The Company’s specialized lifting equipment has met the particular needs of customers in various industries including utility,
ship building and steel mill industries. Mission oriented vehicles and specialized carriers are sold directly to the end users.

Transporters, used in ship building, are one example of a specialized carrier built by Manitex Liftking. The ship builder will construct a
segment of the hull on our transporter. When the section of the hull is complete, the ship builder will move the section to the already
completed portion of the hull and attach it. Manitex Liftking has built transporters capable of transporting 300,000 pounds.

Container Handling Equipment

The Company through its Italian subsidiary, CVS Ferrari, srl (“CVS”) manufactures a range of container handling equipment to serve ports
and inter-modal customers on a worldwide basis.

When CVS began operating in the third quarter 2010 it was a startup operation that had no employees. CVS hired a general manager and
commenced hiring staff, and conducting startup activities including installing systems, obtaining insurance, establishing a supplier base and
establishing banking relationships, etc. The startup phase was heavily supported by corporate management. Additionally, former customers
were contacted to see if they would assign any of their unfilled orders with the Predecessor Company to CVS. Under the rental agreement,
CVS was permitted to purchase inventory it needed for its future production from the Predecessor Company but was not required to do so.
Management made the decision that it would concentrate its efforts on manufacturing reach stackers and providing part support for all
products previously sold by the Predecessor Company.

CVS purchased all the rights and designs to manufacture all the products previously manufactured by the Predecessor Company including
reach stackers, empty container handlers, forklift, straddle carriers, and tractors. Although CVS initially concentrated on reach stackers, it
was the Company’s plan to reintroduce other products. The process of reintroducing products began in 2011 with the sale of a limited
number or terminal tractors. Presently, CVS has successfully reintroduced and is currently selling all the Predecessor Company’s products,
except for the straddle carrier. CVS is still in the process of reviewing the straddle carrier product design and functions with the intent of
reintroducing the product at a future date.

Historically, a slight majority of the Predecessor Company’s sales were to Italy and other European countries. The Predecessor Company
also had a market presence in Africa, South America, the Middle East and the Far East. Historically, the Predecessor Company has had no
significant penetration into the North American market. Now that CVS is owned by a U.S. based company, it is actively soliciting business
in North America. In 2012, CVS had sales to the Canadian military of approximately $1.9 million. This sale is the first significant sale by
CVS in North America. In its traditional markets, CVS competes with several other companies, including three companies that are
significantly larger than CVS. In attempting to enter the North American market, CVS will be faced with competition from these
competitors and also domestic manufacturers.

The Container handling market is a somewhat cyclical market, which depends in part on general economic conditions but also on the timing
of major port construction projects. The financial crisis that began in the later part of 2008 caused a decline in demand for container
handling equipment in 2009. The decrease in demand was not nearly as steep as it was for most other types of equipment. The decline was
tempered as there are long lead times for major deliveries and a lot of orders for 2009 production had been placed when the crisis began.
Additionally, a significant portion of the funding for purchases comes from governments or governmental

agencies, which may be less sensitive to general economic conditions. We believe that demand in markets that CVS traditionally serves did
not change significantly between 2009 and 2010. We believe that total market demand increased modestly in 2011, but was still below
2008 levels. During 2012, a continuing debt crisis in Western Europe both decreased governmental funding and made obtaining private
financing difficult. As a result, the Western European market for CVS type products was severely depressed during 2012. Nevertheless,
CVS was able to grow its revenues during the year by increasing sales to other international markets including South Africa, Brazil, South
Korea and Russia.

In 2013, the market for port handling equipment in Europe, CVS’s historical market, overall continued to be weak. There was, however,
some modest improvement during the latter part of the year. CVS was again able to grow its revenues by increasing sales to other
international markets. This increase is attributed to shipments of tractors to South Africa during the first part of the year and an increase in
sales to Latin America in the second half of the year. The sale of the tractors was related to a large tender order that was awarded to CVS in
2012. The increase in Latin American revenues is a benefit from obtaining new dealers in Latin America in 2013.

Part Sales

The Lifting Equipment segment supplies repair and replacement parts for all of its products. The parts business margins are higher than our
overall margins and accounts for approximately 15% to 20% of our revenues each year. Part sales as a percentage of revenues tend to
increase when there is a down-turn in the industry. Part sales as a percentage of revenues is approximately 15%, 16% and 19% for the years
ended December 31, 2013, 2012 and 2011, respectively. The declines in 2013 and 2012 are the result of substantial increases in total
revenues in those years.

Equipment Distribution Segment

The Equipment Distribution segment located in Bridgeview, Illinois operates as Manitex Valla North America sales operations and is a
distributor of Terex rough terrain and truck cranes, PM knuckle boom cranes and Manitex’s products. The Equipment Distribution segment
predominately sells its products to end users, including the rental market. Its products are used primarily for infrastructure development and
commercial constructions, applications include road and bridge construction, general contracting, roofing, scrap handling and sign
construction and maintenance. The Equipment Distribution segment supplies repair parts for a wide variety of medium to heavy duty
construction equipment and sell both domestically and internationally. The segment also provides repair services in the Chicago area. The
North American Equipment Exchange division, (“NAEE”), markets previously-owned construction and heavy equipment, domestically and
internationally. This Division provides a wide range of used lifting and construction equipment of various ages and condition, and the
Company has the capability to refurbish the equipment to the customers’ specification.

Revenues attributable to the Company’s Equipment Distribution segment were less than 10% of the Company’s total revenues for fiscal
years 2013, 2012 and 2011.

Total Company Revenues by Sources

The sources of the Company’s revenues are summarized below:

Boom trucks & truck cranes
Sign cranes
Container handling equipment
Rough terrain forklifts
Military forklifts
Rough terrain
Mobile tanks
Specialized trailers
Used Construction Equipment
Part sales

Total Revenue

2013

2012

2011

46 %
1 %
14 %
6 %
2 %
4 %
2 %
8 %
2 %
15 %
100 %

44 %

—
12 %
6 %
6 %
4 %

—

8 %
4 %
16 %
100 %

35 %
—
17 %
8 %
4 %
6 %

—

6 %
5 %
19 %
100 %

In 2013 and 2011, no customer accounted for 10% of the Company’s revenue. In 2012, one customer, Cropac Equipment, Inc., accounted
for 10.8% of the Company’s revenue.

Raw Materials

The Company both purchases and fabricates components used in production. Our Manitex subsidiary fabricates cranes which are mounted
on truck chassis, which are either purchased by the Company or supplied by the customer. The Company purchases steel and a variety of
machined parts and subassemblies including weldments, cylinders, winches, and cables. Manitex Liftking builds rough terrain forklifts, and
other specialized carriers. Manitex Liftking fabricates some of their cylinders, and masts using quality steel and proprietary technology.
Manitex Liftking purchases engines, transmissions, axles, tire, rims, most of its frames and many of the cylinders and masts that are used.
Badger historically fabricated its frames and booms, but purchases engines, transmissions, axles, tires, rims and other components.
Recently, Badger has been outsourcing much of its requirements for frames. Manitex Load King mainly purchases materials including
steel, axles, suspensions, tires, wheels and other engineered components. CVS principally purchases components used in production. CVS
purchases frames, booms, engines, transmissions, axles, tire, rims, cylinders, masts, and electronic components.

Lead times for our components vary from several weeks to many months. The Company is vulnerable to an interruption of supply in
instances when only one supplier has been qualified and qualification and supply source changes can exceed a year. The Company has been
working on qualifying secondary sources to assure supply and to reduce costs. The degree to which our supply base can respond to changes
in market demand directly affects our ability to increase production and the Company attempts to maintain some additional inventory in
order to react to unexpected increases in demand. In 2011, our production of boom trucks was at times constrained by a shortage of chassis
and to a lesser degree the availability of cylinders, high density steel and other component parts. Delivery of chassis started to improve in
the fourth quarter of 2011. During the first part of 2012, supply chain issues at times delayed some of our deliveries. However, we do not
believe that availability or lack of component had any significant impact on full year 2012 revenues. During 2013, raw materials and
component were generally available to meet our production schedules and had no significant impact on 2013 revenues.

Any future supply chain issues that might impact the Company will in part depend on how fast the rate of growth is for a product as well as
the rate of growth in the general economy. Strong general economic growth could put us in competition for parts with other industries.
Additionally, events or circumstance at a particular supplier could impact the availability of a necessary component.

Patents and Trademarks

The Company protects its trade names and trademarks through registration. Its technology consists of bill of materials, drawings, plans,
vendor sources and specifications and although the Company’s technology has considerable value, it does not generally have patent
protection. Competitors will occasionally patent a unique feature, however, the broader technology does not have patent protection. The
Company has (on rare occasions) filed for patent protection on a specific feature. In the future, the Company will consider seeking patent
protection on any new design features believed to present a significant future benefit.

The Company owns and uses several trademarks relating to its brands that have significant value and are instrumental to the Company’s
ability to market its products. The Company’s most significant trademarks are its mark “Manitex” (presently registered with the United
States Patent and Trademark Office until 2017), and its mark “LIFTKING” (presently registered with the Canadian Intellectual Property
Office until 2015). The Company’s subsidiary, Manitex Load King sells its products using the trademarks Load King (presently registered
with the United States Patent and Trademark Office until 2018) and also utilizes the trademark Power Fold (presently registered with the
United States Patent and Trademark Office until 2018). Badger Equipment Company markets its products under the “Little Giant” and
Badger trade names. The Manitex, LiftKing, Badger, Little Giant and Load King trademarks and trade names are important to the
marketing and operation of the Company’s business as a significant number of our products are sold under those names. The use of the
trade name “Noble” is also important to the Company’s business. Although the Company does not own the Noble trade name, it has the
right to use the Noble name in connection with its rough terrain forklift product line.

Seasonality

Traditionally, the Company’s peak selling periods for cranes and commercial rough terrain forklifts are in the first half of a calendar year as
a result of the need to have new equipment available for the spring, summer and fall construction seasons. Seasonality is reduced when the
industry is operating at or near full capacity as it did in 2006 and 2007. The financial crisis that began in 2008 dramatically depressed
demand for our crane products and commercial rough terrain forklifts used in commercial construction and home building, the market areas
subject to the greatest seasonality. As such, our business has not been subject to normal seasonality in recent years.

A significant portion of cranes sold over the last several years have been deployed in specialized industries or applications, such as oil and
gas production, power distribution and in the railroad industry. Sales in these market segments are subject to significant fluctuations which
correlate more with general economic conditions and the prices of commodities including oil and generally are not of seasonal nature.

The Lifting Equipment segment’s military, special mission oriented vehicles and specialized carriers business is dependent on the receipt of
customers’ orders. The timing of customer orders can be expected to result in fluctuations in revenues from period to period. The expected
fluctuations, however, are not of a seasonal nature. The Lifting Equipment segment’s container handling product line is also subject to
fluctuations due to in part the timing of contract awards related to major port projects. Again, this fluctuation is not necessarily of a
seasonal nature.

Sales of cranes from the Equipment Distribution segment mirror the seasonality of the overall Company. However, the sale of parts is much
less seasonal given the geographic breadth of the customer base. Crane repairs are performed by the Equipment Distribution segment
throughout the year but are somewhat affected by the slowdown in construction activity during the typically harsh winters in the
Midwestern United States.

Competition

Lifting Equipment Segment

The market for the Company’s boom trucks and sky cranes, commercial rough terrain forklifts, container handling equipment and trailers is
highly competitive. The Company competes based on product design, quality of products and services, product performance, maintenance
costs and price. Several competitors have greater financial, marketing, manufacturing and distribution resources than we do. The Company
believes that it effectively competes with its competitors.

Military forklifts, special mission oriented vehicles and specialized carriers are highly engineered products and, therefore, only face limited
competition. The Company’s rough terrain cranes serve smaller niche markets and, therefore, also have less competition.

The Company’s boom cranes compete with cranes manufactured by National Crane, Terex, Weldco Beales, Elliott and Altec. The
Company’s sky cranes compete with cranes manufactured by Elliott, Wilke, and Radocy. The Company competes with Linamar, Sellick,
Harlo, Manitou, Mastercraft, and Load Lifter in selling rough terrain forklifts. The Company competes primarily with Terex and Broderson
in selling rough terrain cranes. The Company’s container handling equipment competes with similar equipment sold by Cargotec,
Konecranes and Terex. The North American specialty trailer industry is highly fragmented, but our competitors include: Aspen Custom
Trailers, Landoll Corporation, Manaca, Inc., and Trail King.

Equipment Distribution Segment

Our Equipment Distribution segment has a dealership arrangement with Terex and must compete against dealers of other rough terrain and
truck crane manufacturers such as Imperial Crane (Tadano) and Walter Payton Power (Grove) who operate in the same geographic market
in and around Chicago. The same dynamic holds true in selling Manitex boom trucks which are part of our Lifting Equipment segment. The
Equipment Distribution segment competes against Runnion Equipment (dealer for National Crane), Power Equipment Leasing (dealer for
Elliott) and Guiffre Cranes (dealer for Terex boom trucks). Runnion is also authorized to sell Manitex boom trucks. Our Equipment
Distribution segment competes with other PM dealers for distribution in North America.

While no geographic limitations exist regarding the Equipment Distribution segment’s ability to sell cranes internationally, the lack of any
barriers to entry and the heavy use of the Internet make this a highly active and competitive market in which to distribute cranes.

Competition for our Equipment Distribution segment’s repair business is even more intense since it is limited geographically due to the
necessity of having physical access to the cranes. Most of the above referenced companies also compete in this aspect of the business, as do
other types of crane and equipment dealers from nearby areas such as Indiana or Wisconsin.

Parts sales from the Equipment Distribution segment are global in scope and benefit greatly from the Internet and the tenure and expertise
of our employees. While competition in this area is extensive, the breadth of the products offered and the segment’s long history in this part
of the business is we believe a competitive advantage.

The North American Equipment Exchange division, (“NAEE”) markets previously-owned construction and heavy equipment, domestically
and internationally. This Division provides a wide range of used lifting and construction equipment of various ages and condition, and the
Company has the capability to refurbish the equipment to the customers’ specification.

The Equipment Distribution segment competes based on the design, quality, and performance of the products it distributes, price and the
supporting repair and part services that it provides. Several competitors have greater financial, marketing, and distribution resources than
we do. The Company, however, believes that it effectively competes with its competitors.

Backlog

The backlog at December 31, 2013 was approximately $77.3 million, compared to a backlog of approximately $130.4 million at
December 31, 2012. The Company expects to ship product to fulfill its existing backlog within the next twelve months.

Research and Development

The Company spent $2.9 million, $2.5 million and $1.6 million on company-sponsored research and development activities for 2013, 2012
and 2011, respectively.

Geographic Information

The information regarding revenue, the basis for attributing revenue from external customers to individual countries, and long-lived assets
is found in Note 19 “Segment Information” to our consolidated financial statements, is hereby incorporated by reference into this Part I,
Item 1.

Employees

As of December 31, 2013, the Company had 501 full time employees. The Company has not experienced any work stoppages and
anticipates continued good employee relations. Fifty-eight of our employees are covered by collective bargaining agreements. Twenty-two
of our employees at our Badger subsidiary are represented by International Union, UAW and its local No. 316. The current union contract
expires on January 21, 2017. Four employees are currently represented by Automobile Mechanics’ Local 701. The union contract expires
on October 1, 2014. The employees represented by the Automobile Mechanics’ Local 701 are mechanics that work in our Equipment
Distribution segment. A number of our Equipment Distribution segment’s customers in the Chicago metropolitan area mandate union
mechanics usage for any service / repair jobs. Thirty-two employees at Manitex Load King are represented by United Electrical Radio and
Machine Workers of America, Local 1187. The current union contract expires on February 5, 2016.

Governmental Regulation

The Company is subject to various governmental regulations, such as environmental regulations, employment and health regulations, and
safety regulations. We have various internal controls and procedures designed to maintain compliance with these regulations. The cost of
compliance programs is not material, but is subject to additions to or changes in federal, state or local legislation or changes in regulatory
implementation or interpretation of government regulations.

Available Information

The Company makes available free of charge our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K and amendments to those reports filed or furnished as required by Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended, through our Internet Website ( www.manitexinternational.com ) as soon as is reasonably practicable after we electronically file
such material with, or furnish it to, the Securities and Exchange Commission. Information contained in or incorporated into our Internet
Website is not incorporated by reference herein.

ITEM 1A. RISK FACTORS

You should carefully consider the following risks, together with the cautionary statement under the caption “Forward-Looking Statements”
and the other information included in this report. The risks described below are not the only ones the Company faces. Additional risks that
are currently unknown to the Company or that the

Company currently considers to be immaterial may also impair its business or adversely affect the Company’s financial condition or results
of operations. If any of the following risks actually occur, the Company’s business, financial condition or results of operation could be
adversely affected.

Significant deterioration in economic conditions, especially in the United States and Europe, has had and may again have negative
effects on the Company’s results of operations and cash flows

Significant deterioration in economic conditions, especially in the United States and Europe, has had and may again have negative effects
on the Company’s results of operations and cash flows. Economic conditions affect the Company’s sales volumes, pricing levels and
overall profitability. Demand for many of the Company’s products depends on end-use markets. Challenging economic conditions may
reduce demand for our products and may also impair the ability of customers to pay for products they have purchased. As a result, the
Company’s reserves for doubtful accounts and write-offs for accounts receivable may increase.

A significant deterioration in economic conditions has caused and may again cause deterioration in the credit quality of our customers and
the estimated residual value of our equipment. This could further negatively impact the ability of our customers to obtain the resources they
need to make purchases of our equipment. Reduced credit availability will diminish our customers’ ability to invest in their businesses,
refinance maturing debt obligations, and meet ongoing working capital needs. If customers do not have sufficient access to credit, demand
for the Company’s products will likely decline. Reduced access to credit and the capital markets will also negatively affect the Company’s
ability to invest in strategic growth initiatives such as acquisitions.

The Company may require additional funding, which may not be available on favorable terms or at all.

Our future capital requirements will depend on the amount of cash generated or required by our current operations, as well as additional
funds which may be needed to finance future acquisitions. Future cash needs are subject to substantial uncertainty.

We cannot guarantee that adequate funds will be available when needed, and if we do not receive sufficient capital, we may be required to
alter or reduce the scope of our operations or to forego making future acquisitions. If we raise additional funds by issuing equity securities,
existing stockholders may be diluted.

The Company’s business is sensitive to increases in interest rates.

If interest rates rise, it becomes more costly for the Company’s customers to borrow money to pay for the equipment they buy from the
Company. Should the U. S. Federal Reserve Board decide to increase rates, prospects for business investment and manufacturing could
deteriorate sufficiently and impact sales opportunities.

The Company’s business is sensitive to government spending.

Many of the Company’s customers depend substantially on government spending, including highway construction and maintenance and
other infrastructure projects by U.S. federal and state governments and governments in other nations. Any decrease or delay in government
funding of highway construction and maintenance and other infrastructure projects could cause the Company’s revenues and profits to
decrease.

Additionally, the portion of business that is military related (including an international agency) has in the past fluctuated significantly
between years. A significant decrease in military related revenues would adversely affect our results of operations and our cash flow.

The Company’s business is affected by the cyclical nature of its markets.

A substantial portion of our revenues are attributed to limited number of customers which may decrease or cease purchasing any time, since
the Company’s products depends upon the general economic conditions of the markets in which the Company competes. The Company’s
sales depend in part upon its customers’ replacement or repair cycles. Adverse economic conditions, including a decrease in commodity
prices, may cause customers to forego or postpone new purchases in favor of repairing existing machinery. Downward economic cycles
may result in reductions in sales of the Company’s products, which may reduce the Company’s profits. The Company has taken a number
of steps to reduce its fixed costs and diversify its operations to decrease the negative impact of these cycles. There can be no assurance,
however, that these steps will prevent the negative impact of poor economic conditions.

The Company’s revenues are attributed to limited number of customers which may decrease or cease purchasing any time.

The Company’s revenues are attributed to a limited number of customers. We generally do not have long-term supply agreements with our
customers. Even if a multi-year contract exists, the customer is not required to commit to minimum purchases and can cease purchasing at
any time. If we were to lose either a significant customer or several smaller customers our operating results and cash flows would be
adversely impacted.

The Company is dependent upon third-party suppliers, making us vulnerable to supply shortages.

The Company obtains materials and manufactured components from third-party suppliers. Any delay in the Company’s suppliers’ abilities
to provide the Company with necessary materials and components may affect the Company’s capabilities at a number of our manufacturing
locations, or may require the Company to seek alternative supply sources. Delays in obtaining supplies may result from a number of factors
affecting the Company’s suppliers including capacity constraints, labor disputes, the impaired financial condition of a particular supplier,
suppliers’ allocations to other purchasers, weather emergencies or acts of war or terrorism. Any delay in receiving supplies could impair the
Company’s ability to deliver products to customers and, accordingly, could have a material adverse effect on business, results of operations
and financial condition.

In addition, the Company purchases material and services from suppliers on extended terms based on the Company’s overall credit rating.
Negative changes in the Company’s credit rating may impact suppliers’ willingness to extend terms and increase the cash requirements of
the business.

Price increases in materials could affect our profitability.

We use large amounts of steel and other items in the manufacture of our products. In the past, market prices of some of our key raw
materials increased significantly. If we experience future significant increases in material costs, including steel, we may not be able to
reduce product cost in other areas or pass future raw material price increases on to our customers and our margins could be adversely
affected.

The Company depends on its computer systems. If its computer systems do not perform in a satisfactory manner, it could be disruptive and
or adversely affect the operations and results of operations of the Company, including the ability of the Company to report accurate and
timely financial results. In the future, the Company may either install new releases for existing applications or replace existing systems.
Systems implementations projects are often not successful. Even when projects are ultimately successful, the projects often require higher
than anticipated financial and personal resources. In the future, should systems not be implemented successfully and

within budget, or if the systems do not perform in a satisfactory manner, it could be disruptive and or adversely affect the operations and
results of operations of the Company, including the ability of the Company to report accurate and timely financial results.

The Company’s level of indebtedness reduces financial flexibility and could impede our ability to operate.

As of December 31, 2013, the Company’s total debt was $54.2 million, which includes: revolving term credit facilities, notes payable, and
capital lease obligations.

Our level of debt affects our operations in several important ways, including the following:

•

a significant portion of our cash flow from operations is likely to be dedicated to the payment of the principal and interest on our
indebtedness;

our ability to obtain additional financing in the future for working capital, capital expenditures or acquisitions may be limited;

• we may be unable to refinance our indebtedness on terms acceptable to us or at all;

•

our cash flow may be insufficient to meet our required principal and interest payments; and

• we may be unable to obtain additional loans as a result of covenants and agreements with existing debt holders.

The Company has debt outstanding and must comply with restrictive covenants in its debt agreements.

The Company’s existing debt agreements contain a number of significant covenants which may limit its ability to, among other things,
borrow additional money, make capital expenditures, pay dividends, dispose of assets and acquire new businesses. These covenants also
require the Company to meet certain financial tests. The Company is currently in compliance with all active covenants. A default, if not
waived by the Company’s lenders, could result in acceleration of the Company’s debt and possibly bankruptcy.

Certain of the Company’s products are substantially dependent on the level of capital expenditures in the oil and gas industry and lower
capital expenditures will adversely affect the results of the Company’s operations.

The demand for our product in part depends on the condition of the oil and gas industry and, in particular, on the capital expenditures of
companies engaged in the exploration, development, and production of oil and natural gas. Capital expenditures by these companies are
influenced by the following factors:

•

the oil and gas industry’s ability to economically justify placing discoveries of oil and gas reserves in production;

the oil and gas industry’s need to clear all structures from the lease once the oil and gas reserves have been depleted;

• weather events, such as major tropical storms;

•

current and projected oil and gas prices;

the abilities of oil and gas companies to generate, access and deploy capital;

exploration, production and transportation costs;

the discovery rate of new oil and gas reserves;

the sale and expiration dates of oil and gas leases and concessions;

local and international political and economic conditions;

the ability or willingness of host country government entities to fund their budgetary commitments; and

technological advances.

Historically, prices of oil and natural gas and exploration, development and production have fluctuated substantially. A sustained period of
substantially reduced capital expenditures by oil and gas companies will result in decreased demand for certain equipment produced by the
Company, lower margins, and possibly net losses.

The Company may face limitations on its ability to integrate acquired businesses.

The Company has completed nine acquisitions since 2006. The successful integration of new businesses depends on the Company’s ability
to manage these new businesses and cut excess costs. While the Company believes it has successfully integrated these acquisitions to date,
the Company cannot ensure that these acquired companies will operate profitably or that the intended beneficial effect from these
acquisitions will be realized.

If the Company is unable to manage anticipated growth effectively, the business could be harmed.

If the Company fails to manage growth, the Company’s financial results and business prospects may be harmed. To manage the Company’s
growth and to execute its business plan efficiently, the Company will need to institute operational, financial and management controls, as
well as reporting systems and procedures. The Company also must effectively expand, train and manage its employee base. The Company
cannot assure you that it will be successful in any of these endeavors.

The Company relies on key management.

The Company relies on the management and leadership skills of David Langevin, Chairman and Chief Executive Officer. When
Mr. Langevin joined the Company, he signed a three year employment agreement with the Company which expired on December 31, 2008.
Mr. Langevin’s employment agreement has been extended and now expires on December 31, 2015. Under the employment agreement,
Mr. Langevin’s employment term automatically extends for successive periods of three year unless either the Company or Mr. Langevin
gives written notice to the other party of non-renewal at least 90 days prior to the end of the then current employment term. The loss of his
services could have a significant and negative impact on the Company’s business. In addition, the Company relies on the management and
leadership skills of other senior executives. The Company could be harmed by the loss of key personnel in the future.

The Company’s success depends upon the continued protection of its trademarks and the Company may be forced to incur substantial
costs to maintain, defend, protect and enforce its intellectual property rights.

The Company’s registered and common law trademarks, as well as certain of the Company’s licensed trademarks, have significant value
and are instrumental to the Company’s ability to market its products. The Company’s marks “Manitex” “Liftking” “Badger”, “Sabre”,
“Valla” and “Load King” are important to the Company’s business as the majority of the Company’s products are sold under those names.
The Company has not registered all of its trademarks in the United States nor in the foreign countries where it does business. The Company
cannot assure you that third parties will not assert claims against any such intellectual property or that the Company will be able to
successfully resolve all such claims. If the Company has to change the names of any of its products, it may experience a loss of goodwill
associated with its brand names, customer confusion and a loss of sales.

In addition, international protection of the Company’s intellectual property may not be available in some foreign countries to the same
extent permitted by the laws of the United States. The Company could also incur substantial costs to defend legal actions relating to use of
its intellectual property, which could have a material adverse effect on the Company’s business, results of operations or financial condition.

The Company may be unable to effectively respond to technological change, which could have a material adverse effect on the
Company’s results of operations and business.

The markets served by the Company are not historically characterized by rapidly changing technology. Nevertheless, the Company’s
future success will depend in part upon the Company’s ability to enhance its current products and to develop and introduce new products. If
the Company fails to anticipate or respond adequately to competitors’ product improvements and new production introductions, future
results of operations and financial condition will be negatively affected.

The Company operates in a highly competitive industry and the Company is particularly subject to the risks of such competition.

The Company competes in a highly competitive industry and the competition which the Company encounters has an effect on its product
prices, market share, revenues and profitability. Because certain competitors have substantially greater financial, production, research and
development resources and substantially greater name recognition than the Company, the Company is particularly subject to the risks
inherent in competing with them and may be put at a competitive disadvantage. To compete successfully, the Company’s products must
excel in terms of quality, price, product line, ease of use, safety and comfort, and the Company must also provide excellent customer
service. The greater financial resources of the Company’s competitors may put it at a competitive disadvantage. If competition in the
Company’s industry intensifies or if the Company’s current competitors enhance their products or lower their prices for competing
products, the Company may lose sales or be required to lower its prices. This may reduce revenue from the Company’s products and
services, lower its gross margins or cause the Company to lose market share. The Company may not be able to differentiate our products
from those of competitors, successfully develop or introduce less costly products, offer better performance than competitors or offer
purchasers of our products payment and other commercial terms as favorable as those offered by competitors.

The Company faces product liability claims and other liabilities due to the nature of its business.

In the Company’s lines of business numerous suits have been filed alleging damages for accidents that have occurred during the use or
operation of the Company’s products. The Company is self-insured, up to certain limits, for these product liability exposures, as well as for
certain exposures related to general, workers’ compensation and automobile liability. Insurance coverage is obtained for catastrophic losses
as well as those risks required to be insured by law or contract. Any material liabilities not covered by insurance could have an adverse
effect on the Company’s financial condition.

The Company is subject to currency fluctuations.

Our revenues are generated in U.S. dollars, Canadian dollars and Euros while costs incurred to generate revenues are only partly incurred in
the same currencies. Changes in currency exchange rates between the U.S. dollar and other currencies have had, and will continue to have,
an impact on our earnings.

We engage in hedging activities to mitigate the impact of the translation of foreign currencies on our financial results. Our hedging
activities are designed to reduce and delay, but not to eliminate, the effects of foreign currency fluctuations. Factors that could affect the
effectiveness of our hedging activities include accuracy of sales forecasts, volatility of currency markets, and the availability of hedging
instruments. Since the hedging activities are designed to reduce volatility, they not only reduce the negative impact of a weaker U.S. dollar,
but they also reduce the positive impact of a stronger U.S. dollar. Our future financial results could be significantly affected by the value of
the U.S. dollar in relation to the foreign currencies in which we conduct business. The degree to which our financial results are affected for
any given time period will depend in part upon our hedging activities. There can be no assurance that our hedging activities will have the
desired beneficial impact on our financial condition or results of operations. Moreover, no hedging activity can completely insulate us from
the risks associated with changes in currency exchange rates.

Risks Relating to our Common Stock

The Company’s principal shareholders, executive officers and directors hold a significant percentage of the Company’s common stock,
and these shareholders may take actions that may be adverse to your interests.

The Company’s principal shareholders, executive officers and directors beneficially own, in the aggregate, more than 20% of the
Company’s common stock as of March 1, 2014. As a result, these shareholders, acting together, will be able to significantly influence all
matters requiring shareholder approval, including the election and removal of directors and approval of significant corporate transactions
such as mergers, consolidations, sales and purchases of assets. They also could dictate the management of the Company’s business and
affairs. This concentration of ownership could have the effect of delaying, deferring or preventing a change in control or impeding a merger
or consolidation, takeover or other business combination, which could cause the market price of our common stock to fall or prevent you
from receiving a premium in such a transaction.

The cost of compliance with Section 404 of the Sarbanes-Oxley Act of 2002 may negatively impact the Company’s income.

The Company is subject to the rules and regulations of the SEC, including those rules and regulations mandated by the Sarbanes-Oxley Act
of 2002. Section 404 of the Sarbanes-Oxley Act requires all reporting companies to include in their annual report a statement of
management’s responsibilities for establishing and maintaining adequate internal control over financial reporting, together with an
assessment of the effectiveness of those internal controls. Section 404 further requires that the reporting company’s independent auditors
attest to, and report on, this management assessment. The Company expects its expenses related to its internal and external auditors to be
significant. If we fail to maintain a system of adequate controls, it could have an adverse effect on our business and stock price.

The price of our common stock is highly volatile.

The trading price of the Company’s common stock is highly volatile and could be subject to wide fluctuations in price in response to
various factors, many of which are beyond the Company’s control, including:

•

the degree to which the Company successfully implements its business strategy;

actual or anticipated variations in quarterly or annual operating results;

changes in recommendations by the investment community or in their estimates of the Company’s revenues or operating results;

failure to meet expectations of industry analysts;

speculation in the press or investment community;

strategic actions by the Company’s competitors;

announcements of technological innovations or new products by the Company or competitors; and

changes in business conditions affecting the Company and its customers.

In the past, following periods of volatility in the market price of a company’s securities, class action litigation has often been brought
against companies. If a securities class action suit is filed against us, whether or not meritorious, we would incur substantial legal fees and
our management’s attention and resources would be diverted from operating our business in order to respond to the litigation.

Future sales of the Company’s common stock by existing shareholders in the public market, or the possibility or perception of such
sales, could depress the Company’s stock price.

Sales of a large number of shares of the Company’s common stock, or the availability of a large number of shares for sale, could adversely
affect the market price of the Company’s common stock and could impair the Company’s ability to raise funds in additional stock offerings.
Approximately 13,801,277 of the Company’s

shares are eligible for sale in the public market, approximately 1,200,000 of which are subject to applicable volume limitations and other
restrictions set forth in Rule 144 under the Securities Act.

Provisions of the Michigan Business Corporation Act and the Company’s Articles of Incorporation, Amended and Restated Bylaws, and
Rights Agreement may discourage or prevent a takeover of the Company.

Provisions of the Company’s Articles of Incorporation and Amended and Restated Bylaws, Michigan law, and the Rights Agreement, dated
October 17, 2008, between the Company and Broadridge Corporate Issuer Solution, Inc., as rights agent, could make it more difficult for a
third party to acquire the Company, even if doing so would be perceived to be beneficial to you. These provisions could discourage
potential takeover attempts and could adversely affect the market price of the Company’s shares. Because of these provisions, you might
not be able to receive a premium on your investment. These provisions:

•

authorize the Company’s Board of Directors, with approval by a majority of its independent Directors but without requiring
shareholder consent, to issue shares of “blank check” preferred stock that could be issued by the Company’s Board of Directors to
increase the number of outstanding shares and prevent a takeover attempt;

limit our shareholders’ ability to call a special meeting of the Company’s shareholders;

limit the Company’s shareholders’ ability to amend, alter or repeal the Company bylaws;

• may result in the issuance of preferred stock, which would significantly dilute the stock ownership percentage of certain
shareholders and make it more difficult for a third party to acquire a majority of the Company’s outstanding voting stock; and

•

restrict business combinations with certain shareholders.

The provisions described above could prevent, delay or defer a change in control of the Company or its management.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None

ITEM 2. PROPERTIES

The Company’s executive offices are located at 9725 Industrial Drive, Bridgeview, Illinois 60455. The Company has eight principal
operating plants. The Company builds boom trucks, and sign cranes in its 188,000 sq. ft. leased facility located in Georgetown, Texas. The
Company builds rough terrain forklifts and special mission oriented vehicles, as well as other specialized carriers in its 85,000 sq. ft. leased
facility located in Woodbridge, Ontario. The Company builds specialized rough terrain cranes and material handling product in its 170,000
sq. ft. leased facility located in Winona, Minnesota. The Company builds its specialized highly engineered trailers in its 106,000 sq. ft.
owned facility in Elk Point, South Dakota. The Company builds reach stackers and container handling equipment in its 103,000 sq. ft
leased facility in Cadeo, Italy. The Company develops mobile cranes in its leased facility in Piacenza, Italy. The Company builds its
specialized mobile tanks for liquid and solid storage and containment solutions in its 100,000 sq. ft. leased facility located in Knox, Indiana.
The Company operates its crane distribution business and North American Equipment Exchange in its 39,000 sq. ft. leased facility located
in Bridgeview, Illinois.

All our facilities are used exclusively by our Lifting Equipment segment except for our Bridgeview facility. The Bridgeview facility houses
our corporate offices and our Crane & Machinery and North American Equipment Exchange divisions. Crane and Machinery and North
American Equipment Exchange divisions comprise our Equipment Distribution segment.

The Company believes that its facilities are suitable for its business and will be adequate to meet our current needs.

ITEM 3. LEGAL PROCEEDINGS

The Company is involved in various legal proceedings, including product liability and workers’ compensation matters which have arisen in
the normal course of operations. The Company has product liability insurance with self insurance retention that ranges from fifty thousand
to $0.5 million. Until 2012, all worker compensation claims were fully insured. Beginning in 2012, the Company has a $250 thousand per
claim deductible on worker compensation claims and aggregates of $1.0 and $1.15 million for 2012 and 2013 policy years, respectively.
Certain cases are at a preliminary stage, and it is not possible to estimate the amount or timing of any cost to the Company. However, the
Company does not believe that these contingencies, in the aggregate, will have a material adverse effect on the Company. When it is
probable that a loss has been incurred and possible to make a reasonable estimate of the Company’s liability with respect to such matters, a
provision is recorded for the amount of such estimate or the minimum amount of a range of estimates when it is not possible to estimate the
amount within the range that is most likely to occur.

ITEM 4. MINING SAFETY DISCLOSURES

Not applicable

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER

PURCHASES OF EQUITY SECURITIES

Market for the Company’s Common Stock

The Company’s common stock is listed on The NASDAQ Capital Market trading under the symbol MNTX. The following table sets forth
the high and low sales prices of the common stock for the fiscal periods indicated, as reported on The NASDAQ Capital Market.

Price Range of Common Stock

2013
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2012
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

High
$ 12.75
12.32
11.98
$ 15.88

High
$ 7.86
10.60
9.48
$ 7.84

Low
$ 7.94
10.01
10.03
$ 10.84

Low
$ 4.08
6.79
6.32
$ 6.60

Number of Common Stockholders

As of February 26, 2014, there were 111 record holders of the Company’s common stock.

Dividends

During the fiscal years ended December 31, 2013, 2012 and 2011, the Company did not declare or pay any cash dividends on its common
stock and the Company does not intend to pay any cash dividends in the foreseeable future. Furthermore, the terms of our credit facility do
not allow us to declare or pay dividends without the prior written consent of the lender.

Performance Graph

The following stock performance graph is intended to show our stock performance compared with that of comparable companies. The stock
performance graph shows the change in market value of ten thousand dollars invested in our Common Stock, the Russell 2000 Index and a
peer group of comparable companies (“Peer Group”) for the five year period commencing December 31, 2008 through December 31, 2013.
The cumulative total stockholder return of the peer group assumes dividends are reinvested. The stockholder return shown on the graph
below is not indicative of future performance. The companies in the Peer Group are weighted by market capitalization.

The Peer Group consists of the following companies, which are in similar lines of business to Manitex International Inc. Lindsay
Corporation (LNN), Gencor Industries Inc. (GENC), Astec Industries, Inc. (ASTE), Columbus McKinnon Corporation (CMCO) and Alamo
Group, Inc. (ALG). The companies in the Peer Group generally have market capitalizations that are significantly greater than the
Company’s market capitalization. It was necessary to select companies with higher market capitalizations to find companies with similar
lines of business. Our competitors are most often either small privately owned companies with a narrow product line or a segment of a very
large company. In selecting our Peer Group, we intentionally excluded the companies that had the largest market capitalization even when
their product lines were similar to ours.

CUMULATIVE TOTAL RETURN
Based upon an initial investment of $10,000 on December 31, 2008
with dividends reinvested

Manitex International, Inc.
Russell 2000 Index
Construction Equipment

(5 stocks)

December 31,
2008
$ 10,000
$ 10,000

December 31,
2009
$ 18,824
$ 12,522

December 31,
2010
$ 37,745
$ 15,690

December 31,
2011
$ 41,569
$ 14,835

December 31,
2012
$ 70,000
$ 17,006

December 31,
2013
$ 155,686
$ 23,298

$ 10,000

7,701

$ 11,373

$ 10,216

$ 12,546

$ 18,725

Issuer Purchases of Equity Securities

The following table provides information about the Company’s purchases of equity securities during the quarter ended December 31, 2013:

Period
October 1 through October 31, 2013
November 1 through November 30, 2013
December 1 through December 31, 2013
Total

Total number of
shares purchased as
part of publicly announced
plans or programs

Maximum number or
approximate dollar
value of shares that may yet
be purchased under the
plans or programs

Average price
paid per
share

—
—
15.88
15.88

—
—
—
—

Total number
of shares
purchased (1)
—
—
4,414 $
4,414 $

(1) The Company purchased and cancelled 4,414 shares of its common stock on December 31, 2013. The shares were purchased from
employees on December 31, 2013 at the market closing price of $15.88 on that date. The employees used the proceeds from the sale
of shares to satisfy their withholding tax obligations that arose when restricted shares vested on that date.

ITEM 6.

SELECTED FINANCIAL DATA

The following selected financial data should be read in conjunction with our financial statements and the related notes thereto and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this report.

The Company’s result include the results for companies acquired from their respective dates of acquisition: July 10, 2009 for Badger,
December 31, 2009 for Load King, July 1, 2010 for CVS (and July 1, 2011 for the effect of assets purchased ), August 19, 2013 for Sabre
and November 30, 2013 for Valla.

(In 000’s except share information)

Summary of Operations:

Revenues
Operating income
Income before income taxes
Provision (benefit) for taxes on income
Net income
Earnings per share
Basic
Diluted

Shares used to calculate earnings per share:

Basic
Diluted

Total assets
Total debt
Total shareholders’ equity

2013

2012

2011

2010

2009

$ 245,072
17,538
14,447
4,269
10,178

$
$

0.80
0.80

12,671,205
12,717,575
$ 182,730
54,231
$
84,991
$

$
$

205,249
14,459
11,898
3,821
8,077

$ 142,291
6,601
4,213
1,433
2,780

0.68
0.68

$
$

0.24
0.24

$
$

95,875
5,537
3,135
1,026
2,109

0.19
0.19

$
$

55,887
3,344
1,542
(2,097 )
3,639

0.33
0.33

11,948,356
11,957,458
151,504
$
49,138
$
59,533
$

11,441,914
11,548,158
$ 121,591
42,227
$
46,794
$

11,362,361
11,380,966
105,517
$
34,019
$
43,274
$

10,957,646
10,965,444
94,685
$
33,511
$
40,428
$

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

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 Report.

FORWARD-LOOKING STATEMENTS

When reading this section of this Annual Report on Form 10-K it is important that you also read the financial statements and related notes
thereto. This Annual Report on Form 10-K and certain information incorporated herein by reference contain forward-looking statements
within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this Annual Report
on Form 10-K, other than statements that are purely historical, are forward-looking statements and are based upon management’s present
expectations, objectives, anticipations, plans, hopes, beliefs, intentions or strategies regarding the future. We use words such as
“anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and
similar expressions to identify forward—looking statements. Forward-looking statements in this Annual Report on Form 10-K include,
without limitation: (1) projections of revenue, earnings, capital structure and other financial items, (2) statements of our plans and
objectives, (3) statements regarding the capabilities and capacities of our business operations, (4) statements of expected future economic
performance and (5) assumptions underlying statements regarding us or our business.

It is important to note that our actual results could differ materially from those included in such forward-looking statements due to a variety
of factors including: (1) substantial deterioration in economic conditions, especially in the United States and Europe; (2) our customers’
diminished liquidity and credit availability; (3) difficulties in implementing new systems, integrating acquired businesses, managing
anticipated growth, and responding to technological change; (4) our ability to negotiate extensions of our credit agreements and to obtain
additional debt or equity financing when needed; (5) the cyclical nature of the markets we operate in; (6) increases in interest rates;
(7) government spending; (8) fluctuations in the construction industry, and capital expenditures in the oil and gas industry; (9) the
performance of our competitors; (10) shortages in supplies and raw materials or the increase in costs of materials; (11) our level of
indebtedness and our ability to meet financial covenants required by our debt agreements; (12) product liability claims, intellectual property
claims, and other liabilities; (13) the volatility of our stock price; (14) future sales of our common stock; (15) the willingness of our
stockholders and directors to approve mergers, acquisitions, and other business transactions; (16) currency transaction (foreign exchange)
risks and the risk related to forward currency contracts; (17) certain provisions of the Michigan Business Corporation Act and the
Company’s Articles of Incorporation, as amended, Amended and Restated Bylaws, and the Company’s Preferred Stock Purchase Rights
may discourage or prevent a change in control of the Company; and (18) a substantial portion of our revenues are attributed to a limited
number of customers which may decrease or cease purchasing any time; and (19) other risks described in the section entitled “Risk Factors”
and elsewhere in our Annual Report on Form 10-K.

The risks, described in our Annual Report on Form 10-K, are not the only risks facing our Company. Additional risks and uncertainties not
currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or
operating results. We do not undertake, and expressly disclaim, any obligation to update this forward-looking information, except as
required under applicable law.

OVERVIEW

The Company is a leading provider of engineered lifting solutions. The Company operates in two business segments: the Lifting Equipment
segment and the Equipment Distribution segment.

Lifting Equipment Segment

The Company is a leading provider of engineered lifting solutions. The Company designs, manufactures and distributes a diverse group of
products that serve different functions and are used in a variety of industries. Through its Manitex, Inc. subsidiary it markets a
comprehensive line of boom trucks, truck cranes and sign cranes. Manitex’s boom trucks and crane products are primarily used for
industrial projects, energy exploration and infrastructure development, including, roads, bridges and commercial construction. Its Badger
Equipment Company (“Badger”) subsidiary is a manufacturer of specialized rough terrain cranes and material handling products. Badger
primarily serves the needs of the construction, municipality, and railroad industries.

Manitex Load King, Inc. (“Load King”) manufactures specialized custom trailers and hauling systems typically used for transporting heavy
equipment. Load King Trailers serve niche markets in the commercial construction, railroad, military, and equipment rental industries
through a dealer network.

CVS Ferrari, srl (“CVS”) located near Milan, Italy designs and manufactures a range of reach stackers and associated lifting equipment for
the global container handling market, which are sold through a broad dealer

network. On November 30, 2013, CVS purchased the assets of Valla SpA. Valla manufactures and markets a line of precision pick and
carry cranes from 2 to 90 tons, using electric, diesel and hybrid power. Its crane offer wheeled or tracked, fixed or swing boom
configurations, with dozens of special applications designed specifically to meet the needs of its customers.

Equipment Distribution Segment

The Equipment Distribution segment located in Bridgeview, Illinois operates as Manitex Valla North America sales operations and is a
distributor of Terex rough terrain and truck cranes, PM knuckle boom cranes and Manitex’s products. The Equipment Distribution segment
predominately sells its products to end users, including the rental market. Its products are used primarily for infrastructure development and
commercial constructions applications include road and bridge construction, general contracting, roofing, scrap handling and sign
construction and maintenance. The Equipment Distribution segment supplies repair parts for a wide variety of medium to heavy duty
construction equipment and sell both domestically and internationally. The segment also provides repair services in the Chicago area. The
North American Equipment Exchange division, (“NAEE”), markets previously-owned construction and heavy equipment, domestically and
internationally. This Division provides a wide range of used lifting and construction equipment of various ages and condition, and the
Company has the capability to refurbish the equipment to the customers’ specification.

Economic Conditions

Beginning in September of 2008, the United States and world financial markets came under unprecedented stress. The immediate impact
was a dramatic decrease in liquidity and credit availability throughout the world. An incredibly rapid and significant deterioration in
economic conditions, especially in the United States and Europe followed. These events had an immediate significant adverse impact on the
Company, including order cancellations.

The overall market for construction equipment has improved substantially since the 2008 down turn but has not returned to pre-2008 levels.
The market for general construction equipment continues to show gradual improvement. A very significant portion of the Company’s
revenues is attributed to demand from niche market segments, particularly the North American energy sector.

During the current year, there has been a softening in the demand for our products which are related to the energy sector. The Company
believes the current decrease in demand from the energy sector is temporary, and that the North American energy sector will continue to
grow and, in turn, will drive future demand for our products. In early 2014, the Company has seen an increase in orders for its cranes that
serve niche markets, including the North American energy sector.

Factors Affecting Revenues and Gross Profit

The Company derives most of its revenue from purchase orders from dealers and distributors. The demand for the Company’s products
depends upon the general economic conditions of the markets in which the Company

competes. The Company’s sales depend in part upon its customers’ replacement or repair cycles. Adverse economic conditions, including a
decrease in commodity prices, may cause customers to forego or postpone new purchases in favor of repairing existing machinery.
Additionally, our Manitex Liftking subsidiary revenues are impacted by the timing of orders received for military forklifts and residential
housing starts. CVS revenues are impacted in part by the timing of contract awards related to major port projects.

Gross profit varies from period to period. Factors that affect gross profit include product mix, production levels and cost of raw materials.
Margins tend to increase when production is skewed towards larger capacity cranes, special mission oriented vehicles, specialized carriers
and heavy material transporters.

The following table sets forth certain financial data for the three years ended December 31, 2013, 2012 and 2011:

Results of Consolidated Operations
MANITEX INTERNATIONAL, INC.
(Thousands of Dollars, except share data)

Net revenues
Cost of sales

Gross profit

Operating expenses

Research and development costs
Selling, general and administrative expense
Legal settlement (at net present value)
Total operating expenses
Operating income

Other income (expense)

Interest expense
Foreign currency transaction (loss) gains
Other (expense) income

Total other expense
Income before income taxes

Provision for taxes on income

Net income

Year Ended
December 31,
2013
$ 245,072
198,596
46,476

2,912
26,026
—
28,938
17,538

(2,946 )
(95 )
(50 )
(3,091 )
14,447
4,269
$ 10,178

Year Ended
December 31,
2012
$ 205,249
164,785
40,464

Year Ended
December 31,
2011
$ 142,291
113,041
29,250

2,457
23,548
—
26,005
14,459

(2,457 )
(110 )
6

(2,561 )
11,898
3,821
8,077

1,571
19,895
1,183
22,649
6,601

(2,540 )
49
103
(2,388 )
4,213
1,433
2,780

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012

The above results include the results for Sabre and Valla from their respective dates of acquisition which are August 19, 2013 and
November 30, 2013, respectively.

Net income

For the year ended December 31, 2013, net income was $10.2 million, which consists of revenue of $245.1 million, cost of sales of $198.6
million, research and development costs of $2.9 million, SG&A costs of $26.0 million, interest expense of $2.9 million, foreign currency
transaction loss of $0.1 million, other expense of $0.1 million and income tax expense of $4.3 million.

For the year ended December 31, 2012, net income was $8.1 million, which consists of revenue of $205.2 million, cost of sales of $164.8
million, research and development costs of $2.5 million, SG&A costs of $23.5 million, interest expense of $2.5 million, foreign currency
transaction loss of $0.1 million and income tax expense of $3.8 million.

Net revenue and gross profit —For the year ended December 31, 2013, net revenue and gross profit were $245.1 million and $46.5
million, respectively. Gross profit as a percent of sales was 19.0% for the year ended December 31, 2013. For the year ended December 31,
2012 net revenue and gross profit were $205.2 million and $40.5 million, respectively. Gross profit as a percent of sales was 19.7% for the
year ended December 31, 2012.

The revenue increase between 2012 and 2013 was approximately 19.4% of which 14.2% is attributed to an increase in revenues from crane
products, 5.1% is attributed to an increase in revenues from container handling equipment products, 3.5% is attributed to sales from
companies acquired in 2013, partially offset by a decrease of other products which had the effect of decreasing revenues 3.4%.

The increase in crane product revenues is principally attributed to an increase in production capacity which allowed the company to reduce
its backlog and to more aggressively market cranes with lower lifting capacity. The increase in revenues from the sale of container handling
equipment is attributed to an increase in sales to markets outside Europe, which has historically been the largest market for this equipment
and is attributed to shipments of tractors to South Africa during the first part of the year and an increase in sales to Latin America in the
second half of the year. The sale of the tractors was related to a large tender order that was awarded to CVS in 2012. The increase in Latin
American revenues is a benefit from obtaining new dealers in Latin America in 2013. The decrease in other products revenues is attributed
to the timing of military orders and a decrease in special trailer revenues.

Gross profit as a percent of net revenues decreased 0.7% to 19.0% for the year ended December 31, 2013 from 19.7% for the comparable
2012 period. The slight decrease in margin percent is principally attributed to product mix, including the favorable impact of increased sales
of crane products which generally have higher margins which was more than offset by an increase in chassis sales which are sold with only
a nominal market up and the effect that the decrease in parts sales as a percent of total revenues. Part sales, which have significantly higher
margins, decreased from 16% to 15% of total revenues from 2012 to 2013. A decrease in volumes for military and special trailer also
contributed to the decrease in the gross margin percent.

Research and development— Research and development for the year ended December 31, 2013 was $2.9 million compared to $2.5
million for the comparable period in 2012. The increase in research and development expense reflects our continued commitment to
develop and introduce new products that gives the Company a competitive advantage.

Selling, general and administrative expense —Selling, general and administrative expense for the year ended December 31, 2013 was
$26.0 million compared to $23.5 million for the comparable period in 2012. Selling general and administrative expense as a percent of
revenue for year ended December 31, 2013 was 10.6% a decrease of 0.9% from the 11.5% for the comparable period in 2012.

The increase in selling, general and administrative expense is $2.5 million of which approximately $1.0 million are either selling, general
and administrative expenses at companies acquired in 2013 or costs directly associated with the acquisitions. Excluding the impact of
acquisitions, selling, general and administrative expenses increased by approximately $1.5 million. Approximately two thirds of the
remaining increase is attributed to an increase in selling expenses, which are partially a direct impact of an increase in revenues and also the
result of an expansion of the sales organization. The majority of the remaining increase in expense is attributed to an increase in
compensation expense. Although selective staff additions contributed to an increase in compensation expense, the primary drivers were an
increase in non-cash stock based deferred compensation and an increase in performance based incentive compensation.

Operating income —The Company, had operating income of $17.5 million and $14.5 million for the years ended December 31, 2013 and
2012, respectively. The increase in operating income is due to an increase in gross profit of $6 million offset by $2.9 million increase in
operating expenses. An increase in revenues accounts for the increase in gross profit as the gross profit percent decreased 0.7% between
2013 and 2012. The increase in operating expenses is related to increases in research and development and selling, general and
administrative expenses.

Interest expense —Interest expense was $2.9 million and $2.5 million for the years ended December 31, 2013 and 2012, respectively.
Interest expense increased $0.5 million the result of an increase in outstanding debt and a 0.5% increase in the interest rate on our U.S. and
Canadian Revolver starting in August 2013.

Foreign currency transaction gains and loss —The Company attempts to purchase forward currency exchange contracts such that the
exchange gains and losses on the assets and liabilities denominated in other than the reporting units’ functional currency will be offset by
the changes in the market value of the forward currency exchange contracts it holds. The Company records at the balance sheet date the
forward currency exchange contracts at their market value with any associated gain or loss being recorded in current earnings as a currency
gain or loss.

For the years ended December 31, 2013 and 2012, the Company had foreign currency losses of $0.1 million.

Income tax —Income tax expense was $4.3 million and $3.8 million for the years ended December 31, 2013 and 2012, respectively. The
increase in income tax is attributed to an increase in pre-tax income, as the Company’s effective rate decreased to 29.5% for 2013 from
32.1% the effective tax rate for 2012. The effective tax rate for 2013 is favorably impacted by the Domestic Production Activities
Deduction (Section 199) and Federal Research and Development tax credits. In the prior year, the Company was not able to recognize the
Domestic Production Activities Deduction as it had unutilized net operating loss carryforwards. Additionally, the Company was not able to
recognize a Federal Research and Development tax credit in 2012 as the provision in the Internal Revenue Code authorizing the R&D
credit had expired.

The American Taxpayer Reconciliation Act enacted on January 2, 2013, retroactively restored the Research and Development credit back
to January 1, 2012. The tax provision for 2013 includes discrete items of $206 primarily related to 2012 Federal Research & Development
tax credits which were retroactively restored.

Net income —Net income for the year ended December 31, 2013 was $10.2 million. This compares with a net income for the year ended
December 31, 2012 of $8.1 million.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

Financial results include the results for CVS Ferrari, srl (our Italian Subsidiary) from the date the Company was formed in June 2010. In the
third quarter of 2010 using assets rented under a rental agreement with the Predecessor Company, CVS commenced manufacturing reach
stackers and associated lifting equipment for the
global container handling market. On July 1, 2011, the Company purchased the assets previously being rented and the rental agreement was
terminated. Beginning on July 1, 2011, CVS results includes amortization and depreciation related to intangible assets and manufacturing
equipment that was purchased on that date.

Net income

For the year ended December 31, 2011, net income was $2.8 million, which consists of revenue of $142.3 million, cost of sales of $113.0
million, research and development costs of $1.6 million, SG&A costs of $19.9 million, legal settlement of $1.2 million, interest expense of
$2.5 million, other income of $0.1 million and income tax expense of $1.4 million.

Net revenue and gross profit —For the year ended December 31, 2012 net revenue and gross profit were $205.2 million and $40.5
million, respectively. Gross profit as a percent of sales was 19.7% for the year ended December 31, 2012. For the year ended December 31,
2011, net revenue and gross profit were $142.3 million and $29.2 million, respectively. Gross profit as a percent of sales was 20.6% for the
year ended December 31, 2011.

Approximately seventy percent of the increase in revenues is attributed to an increase in the sale of boom trucks. The other product lines,
which are not as large as our boom truck product line, account for the remaining thirty percent increase in revenues and they all contributed
to the increase in revenue. Their contributions varied from product line to product line ranging from two to twelve percent of the total
increase in year over year revenues. The Company is continuing to see a modest but sustained improvement in the overall market for
construction equipment, which contributed to the year over year growth in revenues. The much more significant factor, however, is the
strong demand from niche markets, particularly those related to oil and gas extraction and power line distribution. The increase in revenues
reflect the Company’s strategic initiatives which have emphasized the development of boom trucks with higher lifting capacities and
specialized trailers that target the oil and gas and power line distribution market segments.

Gross profit as a percent of net revenues decreased 0.9% to 19.7% for the year ended December 31, 2012 from 20.6% for the comparable
2011 period. The decrease in gross profit of 0.9% between years is attributed to a number of different factors, the most significant of which
is a change in product mix. Although part sales grew, the growth rate for part sales is not near the rate of growth for unit sales. As a result
part sales as a percent of total sales decreased to 16% from 19%. As the gross profit percent on part sales is significantly higher than unit
sales, it had the effect of reducing overall gross profit percent by approximately 1%. The gross profit percent (excluding the effect of part
sales) for boom trucks product line, which has the highest gross profit percent of any our product lines, showed a slight improvement
between years. As the sale of boom trucks increased as a percent of total revenues, it had the effect of increasing the Company’s overall
gross profit percent. This favorable effect was, however, offset by an erosion of gross profit percent for the other product lines and a change
in product mix. A number of different factors and circumstances had an effect on the gross profit percent for the other product lines. For
example, the gross margin percent for distributed products (Equipment Distribution segment) decreased as several Terex cranes purchased
in 2009 which were still in our inventory were sold during 2012 at a slight loss. In 2012, the sale of tractors, a product with a lower gross
profit percent, increased and resulted in an decrease in the gross profit percent for the port handling equipment product line.

Research and development —Research and development for the year ended December 31, 2012 was $2.5 million compared to $1.6
million for the comparable period in 2011. The increase in research and development expense reflects our continued commitment to
develop and introduce new products that gives the Company a competitive advantage.

Selling, general and administrative expense —Selling, general and administrative expense for the year ended December 31, 2012 was
$23.5 million compared to $19.9 million for the comparable period in 2011. Selling, general and administrative expense for the year ended
December 31, 2011 includes approximately $0.5 million to attend the 2011 Con Expo trade show, which is held every three years. Selling,
general and administrative expenses for the year ended December 31, 2012 was 11.5% of revenues a decrease from the comparable period
in 2011. Selling general and administrative expense as a percent of revenue for year ended December 31, 2011 was 14.0% or 13.6% if
adjusted to eliminate the cost associated with attending Con Expo.

The increase in selling, general and administrative expense after adjusting for the non-recurring Con Expo expenses is approximately $4.2
million. Slightly less than 60% of the increase is related to an increase in selling

expenses which reflects an expansion of our sales organization along with increases in commissions and other selling expense that increase
with an increase in revenue. Another 30% of the increase is related to an increase in employee related costs, associated with additional staff,
an increase in performance based compensations and merit increases. The remaining increase is attributed to several other factors including
increase in audit fees related to our auditor opining on internal controls and an increase in travel expenses.

Legal settlement (at net present value)

The results for 2011 included a non-recurring charge of $1.2 million recorded in connection with the settlement of two product liability
cases. This charge was unusual as it was not covered by insurance. The Company is not aware of any other similar potential liabilities at the
present time and has secured insurance coverage to explicitly cover such future instances, mitigating future business risks.

For additional details concerning the nature of the 2011 charge see Note 25.

Operating income —The Company had operating income of $14.5 million and $6.6 million for the years ended December 31, 2012 and
2011, respectively. The increase in operating income is due to an increase in gross profit of $11.2 million offset by $3.4 million increase in
operating expenses. An increase in revenues accounts for the increase in gross profit as the gross profit percent decreased 0.9% between
2012 and 2011. The increase in operating expenses is related to increases in research and development and selling, general and
administrative expenses. Additionally, there is a favorable impact on the variance between operating expenses for 2012 and 2011, as 2011
included a non-recurring expense related the settlement of two product liability cases. This charge was unusual as it was not covered by
insurance. The Company is not aware of any other similar potential liabilities at the present time and has secured insurance coverage to
explicitly cover such future instances, mitigating future business risks.

Interest expense —Interest expense was $2.5 million for the years ended December 31, 2012 and 2011, respectively. Interest expense did
not change significantly as the effect of an increase in overall debt was offset by an decrease in the average interest rate. The increase in
debt is the result of an increase in the amount outstanding on revolving credit facilities and working capital lines offset by significant
retirement of term debt. The interest rate on our revolving credit facilities are much lower than the term debt that was retired during the
year.

For the year ended December 31, 2012, the Company had a foreign currency loss of $0.1 million as compared to a $0.05 million foreign
currency gain for the year ended December 31, 2011. The aforementioned foreign currency gains and losses are net of forward currency
contracts gains and losses.

Income tax —Income tax expense was $3.8 million and $1.4 million for the years ended December 31, 2012 and 2011, respectively. The
increase in income tax is attributed to an increase in pre-tax income, as the Company’s effective tax rate decreased to 32.1% for 2012 from
34.0% for 2011. The decrease in the effective tax rate is primarily the result of being able to record a deduction in connection with the
American Jobs Creation Act of 2004 (which affords a taxpayer a deduction for 9% of qualifying production activities income) and a
remeasurement of the Texas Margin Credit. In prior years, the Company was not able to recognize a benefit under American Jobs Creation
Act of 2004 as it had unutilized net operating loss carryforwards.

Net income —Net income for the year ended December 31, 2012 was $8.1 million. This compares with a net income for the year ended
December 31, 2011 of $2.8 million.

SEGMENT INFORMATION

Lifting Equipment Segment

Net revenues
Operating income
Operating margin

2013
$ 228,772
23,311

2012
$ 188,792
19,870

2011
$ 130,330
11,069

10.1 %

10.5 %

8.5 %

(1) The above results include the results for Sabre and Valla from their respective dates of acquisition which are August 19, 2013 and

November 30, 2013, respectively.

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012

Net revenues —Net revenues increased $39.9 million to $228.7 million for the year ended December 31, 2013 from $188.8 million for the
comparable period in 2012.

The revenue increase between 2012 and 2013 was approximately 21.2% of which 15.5% is attributed to an increase in revenues from crane
products, 5.5% is attribute an increase in revenues from container handling equipment products, 4.0% is attributed to sales from companies
acquired in 2013, partially offset by a decrease of other products which had the effect of decreasing revenues 3.8%.

The increase in crane product revenues is principally attributed to an increase in production capacity which allowed the company to reduce
its backlog and to more aggressively market cranes with lower lifting capacity. The increase in revenues from the sale of container handling
equipment is attributed to increase in sales to markets outside Europe, which has historically been the largest market for Company’s port
handling equipment. This increase is attributed to shipments of tractors to South Africa during the first part of the year and an increase in
sales to Latin America in the second half of the year. The sale of the tractors was related to a large tender order that was awarded to CVS in
2012. The increase in Latin American revenues is a benefit from obtaining new dealers in Latin America in 2013. The decrease in other
products revenues is attributed to the timing of military orders and a decrease in special trailer revenues.

Operating income and operating margins —Operating income of $23.3 million for the year ended December 31, 2013 was equivalent to
10.1% of net revenues compared to an operating income of $19.9 million for the year ended December 31, 2012 or 10.5% of net revenues.

Operating income increased $3.4 million which is the net of an increase in gross profit of $5.1 million offset by increase in operating
expenses of $1.7 million. The increase in gross profit is attributed to an increase in revenues as there was a modest decrease in the gross
profit percent. Approximately 40% of the increase in operating expenses is attributed to companies acquired in 2013. Another 25% of the
increase in operating expenses is related to an increase in research and development cost. The majority of the remaining increase is
attributed to an increase in selling expenses, which are partially a direct impact of an increase in revenues and also the result of an
expansion of the sales organization.

The decrease in operating margin percent is attributed to the decrease in the gross profit as percent of revenues between 2012 and 2013.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

Net Revenues —Net revenues increased $58.5 million to $188.8 million for the year ended December 31, 2012 from $130.3 million for the
comparable period in 2011.

Approximately seventy-five percent of the increase in revenues is attributed to an increase in the sale of boom trucks. The other product
lines, which are not as large as our boom truck product line, account for the remaining twenty-five percent increase in revenues and they all
contributed to the increase in revenue. The Company is continuing to see a modest but sustained improvement in the overall market for
construction equipment, which contributed to the year over year growth in revenues. The much more significant factor, however, is the
strong demand from niche markets particularly those related to oil and gas extraction and power line distribution. The increase in revenues
reflect the Company’s strategic initiatives which have emphasized the development of boom trucks with higher lifting capacities and
specialized trailers that target the oil and gas and power line distribution market segments.

Operating Income and Operating Margins —Operating income of $19.9 million for the year ended December 31, 2012 was equivalent
to 10.5% of net revenues compared to an operating income of $11.1 million for the year ended December 31, 2011 or 8.5% of net revenues.
The increase in operating income is attributed to an $11.0 million increase in gross profit.

The Segment had operating income of $19.9 million and $11.1 million for the years ended December 31, 2012 and 2011, respectively. The
increase in operating income is due to an increase in gross profit of $11.0 million offset by a $2.2 million increase in operating expenses.

The increase in gross profit is entirely due to an increase in revenues as the gross profit percent decreased modestly between 2011 and
2012. The decrease in margin percent is principally attributed to the fact that part sales, which have substantially higher margins, decreased
significantly as a percent of total revenues. Part sales revenues, however, were approximately 24% above the prior year.

Operating expenses increased by $2.2 million from 2011 to 2012. Included in 2011 operating expenses is an unusual non-recurring charge
of $1.2 million to recognize a liability for a legal settlement. Operating expense excluding the impact of the non-recurring charge increased
by $3.4 million. The increase in operating expenses is attributed to increases of $0.9 million and $2.5 million in research and development
and selling and general administrative expenses, respectively. The increase in research and development expense reflects our continued
commitment to develop and introduce new products that gives the Company a competitive advantage. Approximately 75% of the increase
in selling general and administrative expenses is related to increased selling expenses, which reflects an expansion of our sale’s
organization along with increases in commissions and other selling expense that increase with an increase in revenue. The remaining 25%
is the net impact of other increases and decreases. The net other increase is principally related to an increase in employee related costs,
associated with additional staff, an increase in performance based compensations and merit increases.

Equipment Distribution Segment

Net revenues
Operating income
Operating margin

2013
$ 16,951
628
3.7 %

2012
$ 17,090
222
1.3 %

2011
$ 11,986
64
0.5 %

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012

Net revenues —The Equipment Distribution segment had net revenues of $17.0 million and $17.1 million for the years ended
December 31, 2013 and 2012, respectively, an insignificant decrease of $0.1 million.

Operating income (loss) and operating margins —Operating income of $0.6 million for the year ended December 31, 2013 was
equivalent to 3.7% of net revenues and compares to operating income of $0.2 million for the year ended December 31, 2012 or 1.2% of net
revenues.

Operating income and operating margin percent improved this year as prior year results were adversely impact by the sale of several cranes
purchased in 2009 which were still in our inventory until they were sold during 2012 at a loss.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

Net revenues —The Equipment Distribution segment net revenue increased $5.1 million to $17.1 million for the year ended December 31,
2012 from $12.0 million in the prior year. Approximately 60% of the increase is related to an increase in new crane sales. The remaining
40% is attributed principally to an increase in used equipment sales. The increase in both new cranes and used equipment is attributed to an
improvement in market conditions and an internal commitment to expand this operation.

Operating Income (loss) and Operating Margins —Operating income of $0.2 million for the year ended December 31, 2012 was
equivalent to 1.2% of net revenues and compares to operating income of $0.06 million for the year ended December 31, 2011 or 0.5% of
net revenues. The increase in operating income is due to an increase in revenues from 2011 to 2012. The additional gross profit generated
by an increase in revenues offset the effect of a decrease in the gross margin percent. The decrease in the gross percent is primarily related
to the sales of several Terex cranes purchased in 2009 which were still in our inventory until they were sold during 2012 and a decrease in
the percent of total revenues which were related to part sales. The sales of the 2009 cranes increased revenues but decreased the gross
margin percent as they were sold at a slight loss. The gross margin percent for part sales is substantially higher than gross margin percent
for equipment sales. Although part sales in dollars were comparable between years, part sales as a percent of total revenues decreased
significantly, the effect of which would be a decrease in the overall gross profit percent.

Liquidity and Capital Resources

Cash and cash equivalents were $6.1 million and $1.9 million at December 31, 2013 and December 31, 2012, respectively. As of
December 31, 2013, the Company had approximately $6.0 million available to borrow under its credit facilities.

The Company needs cash to meet its working capital needs as the business grows, to acquire capital equipment, and to fund acquisitions
and debt repayment. We intend to use cash flows from operations and existing availability under the current revolving credit facilities to
fund anticipated levels of operations for approximately the next 12 months. As our availability under our credit lines is limited, it is
important that we manage our working capital. We may need to raise additional capital through debt or equity financings to support our
growth strategy, which may include additional acquisitions. There is no assurance that such financing will be available or, if available, on
acceptable terms.

Stock offerings

On September 30, 2013, the Company issued 1,375,000 shares of the Company’s common stock and received net proceeds after expenses
of $13.9 million dollars. The proceeds and additional cash were used to repay the $15,000 term debt, which was the source of funds used
acquire Sabre.

On July 17, 2012, the Company issued 500,000 shares of the Company’s common stock and received net proceeds after expenses of $3.8
million, which were used to repay outstanding term debt.

Outstanding borrowings and required payments

The following is a summary of our outstanding borrowings at December 31, 2013:

(In millions)

Outstanding
Balance

Interest
Rate

U.S Revolver
Canadian Revolver
Specialized export facility
Load King bank debt
Load King debt (SD Board of Economic

Development

Note payable—Terex

Capital lease—cranes for sale
Capital lease—Georgetown facility

Acquisition note—Valla
Capital leases—Winona facility

29.2
8.1
2.7
1.1

0.8

1.5
2.7

0.2
0.6

3.25 %
3.50 %
3.50 %
6%/6.25 %

Interest
Paid
Monthly
Monthly
Periodic
Monthly

3.00 %

Monthly

6.00 %

Quarterly

6.25 %
12.00 %

Monthly
Monthly

1.5 %
6.13 %

Annually
Monthly

Principal Payment

n.a.
n.a.
5 days after receipt of customer payment
$0.011 million monthly including interest

$0.005 million monthly including
interest
$0.25 million March 1, 2014, 2015 and
2016 ($0.15 million can be paid in stock)
Over 36 or 60 months
$0.07 million monthly payment
includes interest
$0.1 in 2015 and 2016
$0.025 million monthly payment includes
interest
Upon payment of invoice

CVS short-term working capital borrowings

6.5
54.2

2.09 to 5.19 %

Monthly

The debt matures at various points in time. See Note 13 to the financial statements for additional details.

Change in outstanding debt

In 2013, existing debt (including lines of credit, capital lease obligations and the current portion of notes payable and capital lease
obligations) increased $5.1 million dollars to $54.2 million from $49.1 million at December 31, 2012. The increase in debt is principally
attributed to increases in borrowing under the Company’s revolving credit facilities and increase in CVS working capital borrowings, which
were increased to support our substantial increase in revenues.

Our debt increased by approximately $5.1 million. The following is a summary of changes in debt:

(In millions)

U.S. Revolver
Canadian Revolver
Special export facility
Revolving term credit facility—Equipment line
Load King bank debt
Capital leases—buildings
Capital leases—equipment
Valla acquisition debt
CVS working capital borrowings

Increase/
(decrease)
3.3
$
0.7
1.8
(1.0 )
(0.1 )
(0.7 )
0.5
0.2
0.4
5.1

2013

Operating activities generated $2.1 million of cash for the year ended December 31, 2013, and is comprised of net earnings of $10.2
million, and non-cash items of $4.5 million offset by an increase in working capital of $12.6 million. The following are the principal non-
cash items: depreciation and amortization of $3.9 million, stock based deferred compensation of $0.7 million, and increase in the provision
for doubtful accounts of $0.2 offset by an increase in net deferred tax assets of $0.2 million, a decrease in the reserve for uncertain tax
positions of $0.1 million and a gain on the disposal of assets of $0.1 million.

The increase in working capital is principally due to increases in inventory of $8.9 million, prepaids of $0.4 million, other assets of $0.9
million and decreases in accounts payable of $4.1 million and accruals of $0.1 million and other current liabilities or $.01 million offset by
decrease in accounts receivable of $1.7, and accounts receivable—finance of $0.3 million. The increase in inventory is principally due to
increased revenues. A slight increase in days in inventory on hand did, however, contribute to the increase. The increase in prepaids is
principally attributed to prepayment for the CONEXPO show, which is held in March every three years and an increase in prepayments to
vendor. Other assets increase as fees and expenses incurred in connection with the Company’s new banking facilities were capitalized and
are being amortized. The decrease in accounts payable and accounts receivable is due to the timing of payments to vendors and from
customers respectively.

Cash flows related to investing activities consumed $14.1 million of cash for the year ended December 31, 2013. The Company used $13.0
million to acquire Sabre and invested another $1.2 in capital equipment. The $1.2 million spent to purchase capital equipment is the total of
numerous purchases for various operations. No single item in itself was particularly significant.

Financing activities generated $16.1 million in cash for the year ended December 31, 2013. The Company raised $13.9 million in stock
offering in September 2013. The proceeds from the stock offering were used to repay debt, principally incurred to purchase Sabre. An
increase in debt, excluding $3.0 of non-cash items (see note 16 in the financial statements) provided $2.2 million of cash.

2012

Operating activities consumed $6.5 million of cash for the year ended December 31, 2012, and is comprised of net earnings of $8.1 million,
and non-cash items of $4.0 million offset by an increase in working capital of $18.5 million. The following are the principal non-cash
items: depreciation and amortization of $3.5 million, a decrease in net deferred tax assets of $0.2 million, an increase in the reserve for
uncertain tax positions of $0.2 million and stock based deferred compensation of $0.2 million offset by a gain on the disposal of assets of
$0.1 million. The increase in working capital is principally due to increases in accounts receivable and inventory, of $12.1 million and
$17.2 million, respectively offset by decrease in prepaid expenses of $0.1 million and increases in accounts payables, accrued expenses and
other current liabilities of $6.7 million, $2.8 million and $1.2 million, respectively. The increase in accounts receivable, inventory and
accounts payable are due to an increase in revenues. The increase in accrued expense is principally attributed to increases in the accruals for
income taxes payable of $1.1 million, payroll and commissions of $0.6 million, and performance based compensation of $0.8 million,
respectively. The increase in other current liabilities is due to an increase in advance payment received from customers.

Cash flows related to investing activities consumed $1.3 million of cash for the year ended December 31, 2012. The Company expended
$1.1 million to purchases capital equipment offset by $0.2 million generated from the sales of equipment. Additionally, the Company spent
$0.3 million to purchase the rights and designs for a nine ton carry deck crane. The $1.1 million spent to purchase capital equipment is the
total of numerous purchases for various operations. No single item in itself was particularly significant.

Financing activities generated $9.3 million in cash for the year ended December 31, 2012. The increases in borrowing on the Company’s
revolving credit facilities and working capital borrowings provided approximately

$13.7 million of cash. Additionally, the Company received proceeds of approximately $3.8 million in connection with the issuance of
500,000 shares of its common stock in offering pursuant to a shelf registration statement. The Company stated in its offering that the funds
received from the offering were going to be used to repay debt. In 2012, the Company made debt payments that totaled approximately $8.2
million of which approximately $6.0 was related to debt incurred in connection with various acquisitions. A significant portion of the
repayment of the acquisition debt was repaid earlier than required.

Contingencies

The Company is involved in various legal proceedings, including product liability and workers’ compensation matters which have arisen in
the normal course of operations. Certain cases are at a preliminary stage, and it is not possible to estimate the amount or timing of any cost
to the Company. However, the Company does not believe that these contingencies, in aggregate, will have a material adverse effect on the
Company.

The Company has a conditional commitment to purchase the building in which CVS Ferrari srl operates. Under the agreement, CVS Ferrari
srl has a commitment to purchase the building at the conclusion of a rental period that ends on September 30, 2014 for €9,200. The
commitment to purchase the building is contingent on CVS Ferrari srl being able to secure a mortgage on market terms for 75% of the
purchase price.

Off Balance Sheet Arrangements

Comerica has issued a $0.625 million standby letter of credit in favor of an insurance carrier to secure obligations which may arise in
connection with future deductible payments that may be incurred under the Company’s workman compensation insurance policies.

Additionally, various Italian banks have issued performance bonds which total €0.5 million ($0.7 million) which are also guaranteed by the
Company.

Contractual Obligations

The following is a schedule as of December 31, 2013 of our long-term contractual commitments, future minimum lease payments under
non-cancelable operating lease arrangements and other long-term obligations.

(in thousands)

Revolving term credit facilities
CVS working capital borrowing
Term loans
Operating lease obligations
Capital lease obligations (3)
Legal Settlement (see Note 25) (3)
Purchase obligations (1)

Total

Total
$ 40,013
6,526
2,896
3,569
6,147
1,710
15,038
$ 75,899

Payments due by period
2014-
2015
$ —
—
1,658
1,763
2,613
190
—
$ 6,224

2016-
2017
$ 37,306
—
192
320
1,214
190
—
$ 39,222

2013
$ 2,707
6,526
383
1,486
2,320
95
15,038
$ 28,555

Thereafter
$ —
—
663
—
—
1,235
—
$ 1,898

(1) Except for a very insignificant amount, purchase obligations are for inventory items. Purchase obligations not for inventory would

include research and development materials, supplies and services.

(2) At December 31, 2013, the Company had unrecognized tax benefits of $250 thousand for which the Company is unable to make
reasonably reliable estimates of the period of cash settlement with the respective tax authority. Thus, these liabilities have not been
included in the contractual obligations table (see Note 15).

(3) Capital lease obligations and legal settlement include imputed interest.

Related Party Transactions

For a description of the Company’s related party transactions, please see Note 24 to the Company’s consolidated financial statements
entitled “Transactions between the Company and Related Parties.”

Critical Accounting Policies and Estimates

The preparation of our financial statements and related disclosures in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and judgments that affect our reported amounts of assets and liabilities,
revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, we evaluate our estimates and
assumptions based upon historical experience and various other factors and circumstances. Management believes that our estimates and
assumptions are reasonable under the circumstances; however, actual results may vary from these estimates and assumptions under
different future circumstances. We have identified the following critical accounting policies that affect the more significant judgments and
estimates used in the preparation of our consolidated financial statements.

Revenue Recognition. For products shipped FOB destination, sales are recognized when the product reaches its FOB destination, or when
the services are rendered, which represents the point when the risks and rewards of ownership are transferred to the customer. For products
shipped FOB shipping point, revenue is recognized when the product is shipped, as this is the point when title and risk of loss pass from us
to the customers.

Customers may be invoiced prior to the time customers take physical possession. Revenue is recognized in such cases only when the
customer has a fixed commitment to purchase the units, the units have been completed, tested and made available to the customer for
pickup or delivery, and the customer has authorized in writing that we hold the units for pickup or delivery at a time specified by the
customer. In such cases, the units are invoiced under our customary billing terms, title to the units and risks of ownership pass to the
customer upon invoicing, the units are segregated from our inventory and identified as belonging to the customer and we have no further
obligations under the order.

The Company establishes reserve for future warranty expense at the point when revenue is recognized by the Company and is based on
percentage of revenues. The provision for estimated warranty claims, which is included in cost of sales, is based on sales.

Allowance for Doubtful Accounts. Accounts Receivable is reduced by an allowance for amounts that may become uncollectible in the
future. The Company’s estimate for the allowance for doubtful accounts related to trade receivables includes evaluation of specific accounts
where we have information that the customer may have an inability to meet its financial obligations.

Inventories and Related Reserve for Obsolete and Excess Inventory . Inventories are valued at the lower of cost or market and are reduced
by a reserve for excess and obsolete inventories. The estimated reserve is based upon specific identification of excess or obsolete
inventories.

Other Intangible Assets. The Company accounts for Other Intangible Assets under the guidance of ASC 350, “Intangibles—Goodwill and
Other”. The Company capitalizes certain costs related to patent technology. Additionally, a substantial portion of the purchase price related
to the Company’s acquisitions has been assigned to patents or unpatented technology, trade name, customer backlog, and customer
relationships. Under the guidance, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Intangible
assets with indefinite lives are tested annually for impairment.

Goodwill. Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and
liabilities at the date of acquisition, is reviewed for impairment annually, and more

frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair
value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the “FASB”) Accounting
Standards Codification (“ASC”) 350, “Intangibles—Goodwill and Other” (“ASC 350”). The Company selected October 1 as the date for
the required annual impairment test.

Goodwill is tested for impairment at the reporting unit level. The Company’s two operating segments comprise the reporting units for
goodwill impairment testing purposes.

Under ASU 2011-08, entities are provided with the option of first performing a qualitative assessment on none, some, or all of its reporting
units to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after completing a
qualitative analysis, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value a
quantitative analysis is required.

For 2011, 2012 and 2013, the Company determined on a qualitative basis, that it was not more likely than not that the fair value of the
Lifting reporting unit was less than its carrying value. For 2011 and 2013, the Company also determined on a qualitative basis, that it was
not more likely than not that the fair value of the Equipment Distribution reporting unit was less than its carrying value.

In 2012, the Company elected to evaluate the Equipment Distribution reporting unit’s goodwill using the quantitative two step approach.
The first step used to identify potential impairment involves comparing the reporting unit’s estimated fair value to its carrying value,
including goodwill. The aforementioned mentioned Step one quantitative tests did not indicate impairment. During the first step testing, the
Company evaluated goodwill for impairment using a business valuation method, which is calculated as of a measurement date by
determining the present value of debt-free, after-tax projected future cash flows, discounted at the weighted average cost of capital of a
hypothetical third party buyer. The market approach was also considered in evaluating the potential for impairment by calculating fair value
based on multiples of earnings before interest, taxes, depreciation and amortization (EBITDA) of comparable, publicly traded
companies. This analysis also did not indicate impairment. Moreover, the Company also observed implied EBITDA multiples from
relatively recent merger and acquisition activity in the industry, which was used to test the reasonableness of the results.

The second step of the process involves the calculation of an implied fair value of goodwill for each reporting unit for which step one
indicated impairment. The implied fair value of goodwill is determined by measuring the excess of the estimated fair value of the reporting
unit over the estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired
in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there
is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an
impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit
and the subsequent reversal of goodwill impairment losses is not permitted.

The determination of fair value requires the Company to make significant estimates and assumptions. These estimates and assumptions
primarily include, but are not limited to, revenue growth and operating earnings projections, discount rates, terminal growth rates, and
required capital expenditure projections. Due to the inherent uncertainty involved in making these estimates, actual results could differ
materially from those estimates. Deterioration in the market or actual results as compared with the projections may ultimately result in a
future impairment. In the event, the Company determines that goodwill is impaired in the future the Company would need to recognize a
non-cash impairment charge.

The Company did not have any impairment for the years ended December 31, 2013, 2012 and 2011.

Impairment of Long Lived Assets. —The Company’s policy is to assess the realizability of its long-lived assets, including intangible assets,
and to evaluate such assets for impairment whenever events or changes in

circumstances indicate that the carrying amount of such assets (or group of assets) may not be recoverable. Impairment is determined to
exist if the estimated future undiscounted cash flows are less than the carrying value. Future cash flow projections include assumptions for
future sales levels, the impact of cost reduction programs, and the level of working capital needed to support each business. The amount of
any impairment then recognized would be calculated as the difference between the estimated fair value and the carrying value of the
asset. The Company did not have any impairment for the years ended December 31, 2013, 2012 and 2011.

Warranty Expense. The Company establishes reserves for future warranty expense at point when revenue is recognized by the Company
and is based on a percentage of revenues. The provision for estimated warranty claims, which is included in cost of sales, is based on sales.

Litigation Claims. In determining whether liabilities should be recorded for pending litigation claims, the Company must assess the
allegations and the likelihood that it will successfully defend itself. When the Company believes it is probable that it will not prevail in a
particular matter, it will then make an estimate of the amount of liability based, in part, on the advice of outside legal counsel.

Income Taxes. The Company accounts for income taxes under the provisions of ASC 740 “Income Taxes,” which requires recognition of
income taxes based on amounts payable with respect to the current year and the effects of deferred taxes for the expected future tax
consequences of events that have been included in the Company’s financial statements or tax returns. Under this method, deferred tax assets
and liabilities are determined based on the differences between the financial accounting and tax basis of assets and liabilities, as well as for
operating losses and tax credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to
reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not a tax benefit will not be realized.

ASC 740 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a
tax position taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the
deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income
prior to the expiration of any net operating loss carryforwards. See Note 15, Income Taxes, for further details.

Recently Adopted Accounting Guidance

In February 2013, the FASB issued ASU 2013-02 that requires enhanced disclosures in the notes to the consolidated financial statements to
present separately, by item, reclassifications out of Accumulated Other Comprehensive Income (Loss). The new guidance is effective
prospectively for reporting periods beginning after December 15, 2012. The adoption of this ASU is not expected to have a material impact
on the company’s consolidated financial statements.

In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition
of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” This ASU changes a parent
entity’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign
entity or of an investment in a foreign entity. A parent entity is required to release any related cumulative foreign currency translation
adjustment from accumulated other comprehensive income into net income in the following circumstances: (i) a parent entity ceases to
have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity if the sale or transfer results
in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided; (ii) a
partial sale of an

equity method investment that is a foreign entity; (iii) a partial sale of an equity method investment that is not a foreign entity whereby the
partial sale represents a complete or substantially complete liquidation of the foreign entity that held the equity method investment; and
(iv) the sale of an investment in a foreign entity. The amendments in this ASU are effective prospectively for fiscal years (and interim
reporting periods within those years) beginning after December 15, 2013. The adoption of this ASU is not expected to have a material
impact on the company’s consolidated financial statements.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net
Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have
unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date.
An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a
deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net
operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the
applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the
applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the
unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.
The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the
reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are
effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the
amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is
permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective
application is permitted.

Except as noted above, the guidance issued by the FASB during the current year is not expected to have a material effect on the Company’s
consolidated financial statements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to certain market risks that exist as part of our ongoing business operations and the Company’s use of derivative
financial instruments, where appropriate, to manage our foreign change risks. As a matter of policy, the Company does not engage in
trading or speculative transactions. For further information on accounting policies related to derivative financial instruments, refer to Note
6—“Derivative Financial Instruments” in our Consolidated Financial Statements.

Foreign Exchange Risk

The Company is exposed to fluctuations in foreign currency cash flows related to third-party purchases and sales, intercompany product
shipments and intercompany loans. The Company is also exposed to fluctuations in the value of foreign currency investments in
subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation
of foreign currency earnings to U.S. Dollars. Primary exposures include the U.S. Dollar when compared to functional currencies of our
major foreign subsidiaries, which include the Euro and the Canadian dollar. The Company assesses foreign currency risk based on
transactional cash flows, identifies naturally offsetting positions and purchases hedging instruments to partially offset anticipated
exposures. At December 31, 2013, the Company had foreign exchange contracts with a notional value of $3.5 million. The fair market
value of these arrangements, which represents the cost to settle these contracts, was a loss of approximately seven thousand dollars at
December 31, 2013.

At December 31, 2013, the Company performed a sensitivity analysis on the effect that aggregate changes in the translation effect of
foreign currency exchange rate changes would have on our operating income. Based on this

sensitivity analysis, we have determined that a change in the value of the U.S. dollar relative to currencies outside the U.S. by 10% to
amounts already incorporated in the financial statements for the year ended December 31, 2013 would have $0.3 million impact on the
translation effect of foreign currency exchange rate changes already included in our reported operating income for the period.

Interest Rate Risk

The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing issuances of variable rate
debt. Primary exposure includes movements in the U.S. prime rate, the Canadian prime rate and EURIBOR. At December 31, 2013, the
Company had approximately $47.6 million of variable interest debt with average weighted average interest rate at year end of
approximately 3.6%.

At December 31, 2013, the Company performed a sensitivity analysis to determine the impact that in increase in interest rates would have.
Based on this sensitivity analysis, the Company has determined that an increase of 10% in our average floating interest rates at
December 31, 2013 would increase interest expense by approximately $0.2 million.

Commodities Risk

Principal materials and components that the Company uses in our various manufacturing processes include steel, castings, engines, tires,
hydraulics, cylinders, drive trains, electric controls and motors, and a variety of other commodities and fabricated or manufactured items.
Extreme movements in the cost and availability of these materials and components may affect the Company’s financial performance.
Changes input costs did not have a significant effect on the Company’s operating performance in 2013. During 2013, raw materials and
component were generally available to meet our production schedules and had no significant impact on 2013 revenues.

In the absence of labor strikes or other unusual circumstances, substantially all materials and components are normally available from
multiple suppliers. However, certain businesses receive materials and components from a single source supplier, although alternative
suppliers of such materials may be generally available. Current and potential suppliers are evaluated on a regular basis on their ability to
meet our requirements and standards. The Company actively manages our material supply sourcing, and may employ various methods to
limit risk associated with commodity cost fluctuations and availability. The inability of suppliers, especially any single source suppliers for
a particular business, to deliver materials and components promptly could result in production delays and increased costs to manufacture
the Company’s products. To mitigate the impact of these risks, the Company continues to search for acceptable alternative supply sources
and less expensive supply options on a regular basis, including improving the globalization.

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The report of the Company’s independent registered public accounting firm and the Company’s Consolidated Financial Statements are filed
pursuant to this Item 8 and are included in this report. See the Index to Financial Statements.

The financial statements of the registrant required to be included in Item 8 are listed below:

Index to Financial Statements

Report of Independent Registered Public Accounting Firm

Consolidated Financial Statements:

Consolidated Balance Sheets as of December 31, 2013 and 2012

Consolidated Statements of Income for the Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Shareholders’ Equity for Years Ended December 31, 2013, 2012 and 2011

Consolidated Statements of Cash Flows for the Years Ended December 31, 2013, 2012 and 2011

Notes to Consolidated Financial Statements

Page
Reference
44

51-89

Report of Independent Registered Public Accounting Firm

To the Board of Directors and
Shareholders of Manitex International, Inc.

We have audited the accompanying consolidated balance sheets of Manitex International, Inc. and Subsidiaries as of December 31, 2013
and 2012, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the
years in the three-year period ended December 31, 2013. We also have audited Manitex International, Inc.’s internal control over financial
reporting as of December 31, 2013, based on criteria established in Internal Control—Integrated Framework (1992) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). Manitex International, Inc.’s management is responsible
for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the
effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial
Reporting appearing under Item 9A. Our responsibility is to express an opinion on these financial statements and an opinion on the
company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our
audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating
the overall consolidated financial statement presentation. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As described in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A, management has
excluded Manitex Sabre, Inc. from its assessment of internal control over financial reporting as of December 31, 2013. We also have
excluded Manitex Sabre, Inc. from our audit of internal control over financial reporting. Manitex Sabre is a wholly owned subsidiary of
Manitex International, Inc. whose total revenues and total assets represent approximately 3% and 9%, respectively, of the related
consolidated financial statement amounts as of and for the year ended December 31, 2013.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
Manitex International, Inc. and Subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for
each of the years in the three-year period ended December 31, 2013, in conformity with accounting principles generally accepted in the
United States of America. Also in our opinion, Manitex International, Inc. and Subsidiaries maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control—Integrated Framework
(1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ UHY LLP
UHY LLP

Sterling Heights, Michigan
March 11, 2014

MANITEX INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

As of December 31,

2013

2012

Current assets

ASSETS

Cash
Trade receivables (net)
Accounts receivable finance
Other receivables
Inventory (net)
Deferred tax asset
Prepaid expense and other

Total current assets
Accounts receivable finance
Total fixed assets (net)
Intangible assets (net)
Deferred tax asset
Goodwill
Other long-term assets

Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Notes payable—short term
Revolving credit facilities
Current portion of capital lease obligations
Accounts payable
Accounts payable related parties
Accrued expenses
Other current liabilities

Total current liabilities

Long-term liabilities

Revolving term credit facilities
Deferred tax liability
Notes payable
Capital lease obligations
Deferred gain on sale of building
Other long-term liabilities

Total long-term liabilities

Total liabilities

Commitments and contingencies
Shareholders’ equity

Preferred Stock—Authorized 150,000 shares, no shares issued or outstanding at December 31, 2013 and December 31, 2012
Common Stock—no par value, authorized, 20,000,000 shares issued and outstanding, 13,801,277 and 12,268,443 shares at December 31, 2013 and

December 31, 2012, respectively

Paid in capital
Retained earnings
Accumulated other comprehensive income
Total shareholders’ equity

Total liabilities and shareholders’ equity

The accompanying notes are an integral part of these financial statements

$ 6,091
38,170
326
1,775
72,734
1,272
1,669
122,037
—
11,143
24,036
2,117
22,366
1,031
$ 182,730

$ 6,910
2,707
1,812
24,974
789
8,894
1,930
48,016

37,306
4,074
2,512
2,984
1,648
1,199
49,723
97,739

$ 1,889
36,189
276
2,761
61,290
1,166
1,206
104,777
307
10,297
18,442
2,259
15,283
139
$ 151,504

$ 6,218
875
1,040
25,101
839
7,745
1,533
43,351

34,357
4,269
2,648
4,000
2,028
1,318
48,620
91,971

—

68,554
1,191
14,857
389
84,991
$ 182,730

53,040
1,098
4,679
716
59,533
$ 151,504

Net revenues
Cost of sales

Gross profit

Operating expenses

Research and development costs
Selling, general and administrative expense
Legal settlement (at net present value)
Total operating expenses
Operating income

Other income (expense)

Interest expense
Foreign currency transaction (loss) gain
Other(expense) income

Total other expense

Income before income taxes
Provision for taxes on income

Net income

Earnings per share :

Basic
Diluted

Weighted average common shares outstanding:

Basic
Diluted

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)

For the years ended December 31,

2013
$ 245,072
198,596
46,476

2012
205,249
164,785
40,464

2011
$ 142,291
113,041
29,250

2,912
26,026
—
28,938
17,538

(2,946 )
(95 )
(50 )
(3,091 )
14,447
4,269
10,178

0.80
0.80

$
$

2,457
23,548
—
26,005
14,459

(2,457 )
(110 )
6

(2,561 )
11,898
3,821
8,077

0.68
0.68

$
$

1,571
19,895
1,183
22,649
6,601

(2,540 )
49
103
(2,388 )
4,213
1,433
2,780

0.24
0.24

$
$

12,671,205
12,717,575

11,948,356
11,957,458

11,441,914
11,548,158

The accompanying notes are an integral part of these financial statements

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF COMPRENHENSIVE INCOME
(In thousands)

Net income
Other comprehensive (loss) income

Foreign currency translation adjustments
Derivative instrument fair market value adjustments—net of income taxes of $3, $13 and $(33)

for 2013, 2012 and 2011, respectively

Total other comprehensive (loss) income
Comprehensive income

For the years ended December 31,

2013
$ 10,178

2012
$ 8,077

2011
$ 2,780

(320 )

429

(384 )

(7 )
(327 )

$ 9,851

26
455
$ 8,532

(63 )
(447 )

$ 2,333

The accompanying notes are an integral part of these financial statements

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Years ended December 31, 2013, 2012 and 2011
(In thousands, except per share data)

Common Stock

11,394,621
266,568

$ 46,920
1,554

22,927

109

(3,065 )

(12 )

Paid in
Capital
6
$

1,098

(6 )

Warrants
$ 1,788

(458 )
(1,098 )

Accumulated
Other
Comprehensive
Income
(Loss)

708

Retained
Earnings
(Deficit)
$ (6,148 )

2,780

(384 )

(63 )
261

429

26
716

11,681,051
105,000

$ 48,571
986

$ 1,098

$ 232

$ (3,368 )

(232 )

(77,071 )
500,000
30,351

(724 )
3,781
226

29,112

200

12,268,443
1,375,000
74,320

$ 53,040
13,927
657

(4,414 )

(70 )

87,928

1,000

(30 )

8,077

$ 1,098

$ —

$ 4,679

10,178

Total
$ 43,274
1,096
—
103

(12 )

2,780
(384 )

(63 )

$ 46,794
754

(754 )
3,781
226

200
8,077
429

26
$ 59,533
13,927
664

(70 )

1,000
10,178

13,801,277

$ 68,554

$ 1,191

$ —

$ 14,857

389

$ 84,991

(320 )

(7 )

Balance, December 31, 2010
Shares issued on warrant exercise
Expiration of warrants
Employee 2004 incentive plan grant
Repurchase to satisfy withholding and

cancelled
Net Income
Loss on foreign currency translation
Derivative instrument fair market

adjustment—net of income taxes

Balance, December 31, 2011
Shares issued on warrant exercise
Repurchase shares in connection with a

cashless warrant exercise

Stock offering
Employee 2004 incentive plan grant
Stock issued in connection with asset

purchase (see Note 21)

Net Income
Gain on foreign currency translation
Derivative instrument fair market

adjustment—net of income taxes

Balance, December 31, 2012
Stock offering
Employee 2004 incentive plan grant
Excess tax benefits related to vesting of

restricted stock

Repurchase to satisfy withholding and

cancelled

Stock issued in connection with asset

purchase (see Note 21)

Net Income
Loss on foreign currency translation
Derivative instrument fair market

adjustment—net of income taxes

Balance, December 31, 2013

The accompanying notes are an integral part of these financial statements

Cash flows from operating activities:

Net income
Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization
Legal settlement
Provisions for allowance for doubtful accounts
Gain on debt restructuring
(Gain) loss on disposal of assets
Deferred income taxes
Inventory reserves
Reserves for uncertain tax positions
Stock based deferred compensation
Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable
(Increase) decrease in accounts receivable finance
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
(Increase) decrease in other assets
Increase (decrease) in accounts payable
Increase (decrease) in accrued expense
Increase (decrease) in other current liabilities
Increase (decrease) in other long-term liabilities

Net cash provided by (used) for operating activities

Cash flows from investing activities:

Proceeds from sale of fixed assets
Purchase of property and equipment
Acquisition of business assets
Investment in intangibles except goodwill

Net cash used for investing activities

Cash flows from financing activities:
New borrowings term loan
Repayment of term loan
Net proceeds of stock offering
Borrowing on revolving credit facilities
Net (repayments) borrowings on working capital facilities
Proceeds from exercise of warrants
New borrowings—notes payable
Note payments
Repayment on capital lease obligations
Excess tax benefits related to vesting of restricted stock
Shares repurchased for income tax withholding on share-based compensation
Net cash provided by financing activities
Effect of exchange rate change on cash
Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at end of year
Supplemental disclosure of cash flow information:
Cash paid during the year for
Interest

MANITEX INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Thousands of Dollars)

For the years ended December 31,

2013

2012

2011

$ 10,178

$ 8,077

$ 2,780

3,945
—
172
—
(100 )
(168 )
47
(83 )
664

1,653
271
(8,852 )
(424 )
(892 )
(4,079 )
(89 )
(131 )
(36 )

2,076

139
(1,215 )
(13,000 )

—

(14,076 )

15,000
(15,000 )
13,927
5,409
(1,960 )
—
809
(916 )
(1,185 )
86
(70 )

16,100
102
4,100
1,889
$ 6,091

3,498
—
17
—
(119 )
181
1
183
226

(12,494 )
378
(17,187 )
117
11
6,702
2,765
1,168

(8 )
(6,484 )

212
(1,125 )
(345 )
—
(1,258 )

—
—
3,781
9,221
4,181
—
764
(7,884 )
(795 )

3,336
1,183
25
(194 )
62
1,089
316
—
104

(5,597 )
(927 )
(12,484 )
389
(99 )

4,297
478
(165 )
—
(5,407 )

289
(610 )
(1,585 )
(12 )
(1,918 )

—
—
—
6,009
1,600
1,096
4,647
(5,868 )
(578 )

(12 )

6,894
(160 )
(431 )
662
71

—
9,268
292
1,526
71
$ 1,889

$ 2,857

$ 2,498

$ 2,552

Income taxes

$ 4,415

$ 2,067

$ 1,247

(See Note 16 for other supplemental cash flow information)

The accompanying notes are an integral part of these financial statements

MANITEX INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)

Note 1. Nature of Operations

The Company is a leading provider of engineered lifting solutions. The Company operates in two business segments: the Lifting Equipment
segment and the Equipment Distribution segment.

Lifting Equipment Segment

The Company is a leading provider of engineered lifting solutions. The Company designs, manufactures and distributes a diverse group of
products that serve different functions and are used in a variety of industries. Through its Manitex, Inc. subsidiary it markets a
comprehensive line of boom trucks, truck cranes and sign cranes. Manitex’s boom trucks and crane products are primarily used for
industrial projects, energy exploration and infrastructure development, including, roads, bridges and commercial construction. Badger
Equipment Company (“Badger”) is a manufacturer of specialized rough terrain cranes and material handling products. Badger primarily
serves the needs of the construction, municipality, and railroad industries.

CVS Ferrari, slr (“CVS”) designs and manufactures a range of reach stackers and associated lifting equipment for the global container
handling market, are sold through a broad dealer network. On November 30, 2013, CVS acquired the assets of Valla SpA (“Valla”) located
in Piacenza, Italy. Valla offers a full range of mobile cranes from 2 to 90 tons, using electric, diesel, and hybrid power options. Its cranes
offer wheeled or tracked, fixed or swing boom configurations, with special applications designed specifically to meet the needs of its
customers.

On August 19, 2013, Manitex Sabre, Inc. (“Sabre”) acquired the assets of Sabre Manufacturing, LLC. Sabre located in Knox, Indiana,
manufactures a comprehensive line of specialized mobile tanks for liquid and solid storage and containment solutions with capacities from
8,000 to 21,000 gallons. Its mobile tanks are sold to specialized independent tank rental companies and through the Company’s existing
dealer network. The tanks are used in a variety of end markets such as petrochemical, waste management and oil and gas drilling.

Equipment distribution segment

The Company operates a crane dealership that operates as Manitex Valla’s North American sales operation and also distributes Terex rough
terrain and truck cranes, Manitex boom trucks and sky cranes, and the PM Group’s knuckle boom cranes. The Company treats these
operations as a separate reporting segment entitled “Equipment Distribution.” The Equipment Distribution segment also supplies repair
parts for a wide variety of medium to heavy duty construction equipment sold both domestically and internationally. The crane products are
used primarily for infrastructure development and commercial construction; applications include road and bridge construction, general
contracting, roofing, and sign construction and maintenance.

The Company’s North American Equipment Exchange division, (“NAEE”) markets previously-owned construction and heavy equipment,
domestically and internationally. This division provides a wide range of used lifting and construction equipment of various ages and
condition, and has the capability to refurbish the equipment to the customers’ specification.

Note 2. Basis of Presentation

The consolidated financial statements, included herein, have been prepared by the Company pursuant to the rules and regulations of the
United States Securities and Exchange Commission. Pursuant to these rules and regulations, the financial statements are prepared in
accordance with accounting principles generally accepted in the United States of America. The consolidated financial statement includes
the accounts of Manitex International, Inc., and its subsidiaries. Significant intercompany transactions have been eliminated in
consolidation. The Company’s result include the results for companies acquired from their respective dates of acquisition: July 1, 2010 for
CVS (and July 1, 2011 for the effect of assets purchased ), August 19, 2013 for Sabre and November 30, 2013 for Valla.

Financial statements are presented in thousands of dollars except for per share amounts.

Note 3. Summary of Significant Accounting Policies

The summary of significant accounting policies of Manitex International, Inc. is presented to assist in understanding the Company’s
financial statements. The financial statements and notes are representations of the Company’s management who is responsible for their
integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied
in the preparation of the financial statements.

Cash and Cash Equivalents —For purposes of the statement of cash flows, the Company considers all short-term securities purchased with
maturity dates of three months or less to be cash equivalents.

Warrants —The Company had issued warrants, which allowed the warrant holder to purchase one share of stock at a specified price for a
specific period of time. The Company records equity instruments including warrants issued to non-employees based on the fair value at
date of issue. The fair value of the warrants at date of issuance is estimated using the Black-Scholes Model.

Revenue Recognition —For products shipped FOB destination, sales are recognized when the product reaches its FOB destination, or when
the services are rendered, which represents the point when the risks and rewards of ownership are transferred to the customer. For products
shipped FOB shipping point, revenue is recognized when the product is shipped, as this is the point when title and risk of loss pass from the
Company to the customers.

The Company establishes reserves for future warranty expense at the point when revenue is recognized by the Company and is based on
percentage of revenues. The provision for estimated warranty claims, which is included in cost of sales, is based on revenues.

Allowance for Doubtful Accounts —The Company has adopted a policy consistent with U.S. GAAP for the periodic review of its accounts
receivable to determine whether the establishment of an allowance for doubtful accounts is warranted based on the Company’s assessment
of the collectability of the accounts. The Company

established an allowance for bad debt of $333 and $161 at December 31, 2013 and 2012, respectively. The Company also has in some
instances a security interest in its accounts receivable until payment is received.

Property, Equipment and Depreciation —Property and equipment are stated at cost or the fair market value at date of acquisition for
property and equipment acquired in connection with the acquisition of a company. Depreciation of property and equipment is provided over
the following useful lives:

Asset Category
Machinery and equipment
Furniture and fixtures
Leasehold improvements

Depreciable Life
1 – 15 years
3 – 12 years
1.5 – 12 years

Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for
maintenance and repairs are charged to expense as incurred. Depreciation expense for the years ended December 31, 2013, 2012, and 2011
was $1,627, $1,401, and $1,284, respectively.

Other Intangible Assets —The Company accounts for Other Intangible Assets under the guidance of ASC 350, “Intangibles—Goodwill
and Other”. The Company capitalizes certain costs related to patent technology. Additionally, a substantial portion of the purchase price
related to the Company’s acquisitions has been assigned to patents or unpatented technology, trade name, customer backlog, and customer
relationships. Under the guidance, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Intangible
assets with indefinite lives are tested annually for impairment.

Goodwill —Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and
liabilities at the date of acquisition is reviewed for impairment annually, and more frequently as circumstances warrant, and written down
only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in
accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 350,
“Intangibles—Goodwill and Other” (“ASC 350”). The Company selected October 1 as the date for the required annual impairment test.

Goodwill is tested for impairment at the reporting unit level. The Company’s two operating segments comprise the reporting units for
goodwill impairment testing purposes.

taxes, depreciation and amortization (EBITDA) of comparable, publicly traded companies. This analysis also did not indicate
impairment. Moreover, the Company also observed implied EBITDA multiples from relatively recent merger and acquisition activity in the
industry, which was used to test the reasonableness of the results.

The Company did not have any impairment for the years ended December 31, 2013, 2012 and 2011.

Impairment of Long Lived Assets —The Company’s policy is to assess the realizability of its long-lived assets, including intangible assets,
and to evaluate such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (or
group of assets) may not be recoverable. Impairment is determined to exist if the estimated future undiscounted cash flows are less than the
carrying value. Future cash flow projections include assumptions for future sales levels, the impact of cost reduction programs, and the
level of working capital needed to support each business. The amount of any impairment then recognized would be calculated as the
difference between estimated fair value and the carrying value of the asset. The Company did not have any impairment for the years ended
December 31, 2013, 2012 and 2011.

Inventory —Inventory consists of stock materials and equipment stated at the lower of cost (first in, first out) or market. All equipment
classified as inventory is available for sale. The company records excess and obsolete inventory reserves. The estimated reserve is based
upon specific identification of excess or obsolete inventories. Selling, general and administrative expenses are expensed as incurred and are
not capitalized as a component of inventory.

Foreign Currency Translation and Transactions —The financial statements of the Company’s non-U.S. subsidiaries are translated using
the current exchange rate for assets and liabilities and the weighted-average exchange rate for the year for income and expense items.
Resulting translation adjustments are recorded to accumulated other comprehensive income (OCI) as a component of shareholders’ equity.

The Company converts receivables and payables denominated in other than the Company’s functional currency at the exchange rate as of
the balance sheet date. The resulting transaction exchange gains or losses, except for certain transaction gains or loss related to
intercompany receivable and payables, are included in other income and expense. Transaction gains and losses related to intercompany
receivables and payables not anticipated to be settled in the foreseeable future are excluded from the determination of net income and are
recorded as a translation adjustment (with consideration to the tax effect) to accumulated other comprehensive income (OCI) as a
component of shareholders’ equity.

Derivatives—Forward Currency Exchange Contracts —The Company enters into forward currency exchange contracts in relationship
such that the exchange gains and losses on the assets and liabilities denominated in other than the reporting units’ functional currency
would be offset by the changes in the market value of the forward currency exchange contracts it holds. The forward currency exchange
contracts that the Company has to offset existing assets and liabilities denominated in other than the reporting units’ functional currency
have been determined not to be considered a hedge under ASC 815-10. The Company records at the balance sheet date the forward
currency exchange contracts at its market value with any associated gain or loss being recorded in current earnings. Both realized and
unrealized gains and losses related to forward currency contracts are included in current earnings and are reflected in the Statement of
Operations in the other income expense section on the line titled foreign currency transaction gain (loss).

The Company has entered into forward currency contracts to hedge certain future U.S. dollar sales of its Canadian Subsidiary. The forward
currency contracts to hedge future sales are designated as cash flow hedges under ASC 815-10. As required, forward currency contracts are
recognized as an asset or liability at fair value on the Company’s Consolidated Balance Sheet. For derivative instruments that are
designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other
comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings
(date of sale). Gains or losses on cash flow hedges when recognized into income are included in net revenues (see Note 6).

Credit Risk Concentrations —Financial instruments which potentially subject the Company to concentrations of credit risk consist
primarily of cash, trade receivables and payables. The Company maintains its cash balances and marketable securities at banks located in
Detroit, Michigan, Toronto, Canada as well as several separate Italian banks. Accounts in the United States are insured by the Federal
Deposit Insurance Corporation up to $250. At December 31, 2013 and 2012, the Company had uninsured balances of $5,814 and $1,889,
respectively.

As of December 31, 2013, no customers accounted for 10% or more of total Company’s accounts receivable. As of December 31, 2012,
two customers accounted for 15% and 13% if the Company’s total accounts receivable, respectively. In 2013, no one customer accounted
for 10% or more of total company’s revenues. In 2012, one customer accounted for 11% of total company revenue. In 2011, no one
customer accounted for 10% or more of total company’s revenues. For 2013, 2012 and 2011 purchases from any single supplier did not
exceed 10% of total purchases.

Research and Development Expenses . The Company expenses research and development costs, as incurred. For the periods ended
December 31, 2013, 2012 and 2011 expenses were $2,912, $2,457, and $1,571, respectively.

Advertising —Advertising costs are expensed as incurred and were $626, $517, and $475 for the years ended December 31, 2013, 2012,
and 2011, respectively.

Litigation Claims —In determining whether liabilities should be recorded for pending litigation claims, the Company must assess the
allegations and the likelihood that it will successfully defend itself. When the Company believes it is probable that it will not prevail in a
particular matter, it will then record an estimate of the amount of liability based, in part, on advice of outside legal counsel.

Shipping and Handling —The Company records the amount of shipping and handling costs billed to customers as revenue. The cost
incurred for shipping and handling is included in the cost of sales.

Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.

Income Taxes —The Company accounts for income taxes under the provisions of ASC 740 “ Income Taxes,” which requires recognition
of income taxes based on amounts payable with respect to the current year and the effects of deferred taxes for the expected future tax
consequences of events that have been included in the

Company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences
between the financial accounting and tax basis of assets and liabilities, as well as for operating losses and tax credit carryforwards using
enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are recorded to reduce
deferred tax assets when it is more likely than not a tax benefit will not be realized.

Accrued Warranties —Warranty costs are accrued at the time revenue is recognized. The Company’s products are typically sold with a
warranty covering defects that arise during a fixed period of time. The specific warranty offered is a function of customer expectations and
competitive forces. The Equipment Distribution segment does not accrue for warranty costs at the time of sales, as they are reimbursed by
the manufacturers for any warranty that they provides to their customers.

A liability for estimated warranty claims is accrued at the time of sale. The liability is established using historical warranty claim
experience. Historical warranty experience is, however, reviewed by management. The current provision may be adjusted to take into
account unusual or non-recurring events in the past or anticipated changes in future warranty claims. Adjustments to the initial warranty
accrual are recorded if actual claim experience indicates that adjustments are necessary. Warranty reserves are reviewed to ensure critical
assumptions are updated for known events that may impact the potential warranty liability.

Debt Issuance Costs —Debt issuance costs incurred in securing the Company’s financing arrangements are capitalized and amortized over
the term of the associated debt. Deferred financing cost are included with other long-term assets on the Company’s balance sheet.

Sale and Leaseback —In accordance with ASC 840-40 Sales-Leaseback Transactions, the Company has recorded deferred revenue in
relationship to the sale and leaseback of one of the Company’s operating facilities. As such, the gain on the sale of the land and building has
been deferred and is being amortized on a straight line basis over the life of the lease.

Computation of EPS —Basic Earnings per Share (“EPS”) was computed by dividing net income (loss) by the weighted average number of
common shares outstanding during the period.

The number of shares related to options, warrants, restricted stock and similar instruments included in diluted EPS (“EPS”) is based on the
“Treasury Stock Method” prescribed in ASC 260-10, Earnings per Share. This method assumes theoretical repurchase of shares using
proceeds of the respective stock option or warrant exercised, and for restricted stock the amount of compensation cost attributed to future
services which has not yet been recognized and the amount of current and deferred tax benefit, if any, that would be credited to additional
paid in capital upon the vesting of the restricted stock, at a price equal to the issuer’s average stock price during the related earnings period.
Accordingly, the number of shares includable in the calculation of EPS in respect of the stock options, warrants, restricted stock and similar
instruments is dependent on this average stock price and will increase as the average stock price increases.

Stock Based Compensation —In accordance with ASC 718 Compensation-Stock Compensation, share-based payments to employees,
including grants of restricted stock units, are measured at fair value as of the date of grant and are expensed in the consolidated statement of
income over the service period (generally the vesting period).

Comprehensive Income —“Reporting Comprehensive Income” requires reporting and displaying comprehensive income and its
components. Comprehensive income includes, in addition to net earnings, other items that are reported as direct adjustments to
shareholder’s equity. Currently, the comprehensive income adjustment required for the Company has two components. First is a foreign
currency translation adjustment, the result of consolidating its foreign subsidiary. The second component is a derivative instrument fair
market value adjustment (net of income taxes) related to forward currency contracts designated as a cash flow hedge.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is
reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the
hedged transaction affects earnings (date of sale). See Note 6 for additional details.

Reclassifications —Certain reclassifications have been made to the 2012 and 2011 financial statements to conform to the 2013
presentation.

Business Combinations —The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business
Combinations. The guidance requires consideration given, including contingent consideration, assets acquired and liabilities assumed to be
valued at their fair market values at the acquisition date. The guidance further provides that: (1) in-process research and development will
be recorded at fair value as an indefinite-lived intangible asset; (2) acquisition costs will generally be expensed as incurred, (3) restructuring
costs associated with a business combination will generally be expensed subsequent to the acquisition date; and (4) changes in deferred tax
asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense.

ASC 805 requires that any excess of purchase price over fair value of assets acquired, including identifiable intangibles and liabilities
assumed be recognized as goodwill. In accordance with ASC 805, any excess of fair value of acquired net assets, including identifiable
intangibles assets, over the acquisition consideration results in a bargain purchase gain. Prior to recording a gain, the acquiring entity must
reassess whether all acquired assets and assumed liabilities have been identified and recognized and perform re-measurements to verify that
the consideration paid, assets acquired and liabilities assumed have been properly valued.

Note 4. Earnings per Common Share

Basic net earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the
period. Diluted earnings per share reflects the potential dilution of warrants and restricted stock units. Details of the calculations are as
follows:

Net Income attributed to common shares

Basic
Diluted
Earnings per share

Basic
Diluted

Weighted average common shares outstanding
Basic
Diluted

Basic
Dilutive effect of warrants
Dilutive effect of restricted stock units

2013

2012

2011

$
$

10,178
10,178

0.80
0.80

$
$

8,077
8,077

0.68
0.68

$
$

2,780
2,780

0.24
0.24

12,671,205

11,948,356

11,441,914

12,671,205
—
46,370
12,717,575

11,948,356
2,521
6,581
11,957,458

11,441,914
102,534
3,710
11,548,158

Note 5. Fair Value Measurements

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of
December 31, 2013 and 2012 by level within the fair value hierarchy. As required by ASC 820-10 financial assets and liabilities are
classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The following is a summary of items that the Company measures at fair value on a recurring basis:

Assets:
Forward currency exchange contracts
Total current assets at fair value

Liabilities:
Forward currency exchange contracts
Valla contingent consideration (see Note 20)
Total long-term liabilities at fair value

Assets:
Forward currency exchange contracts
Total current assets at fair value

Liabilities:
Forward currency exchange contracts

Total current liabilities at fair value

Fair Value at December 31, 2013

Level 1

Level 2

Level 3

Total

$ —
$ —

$ —
—
$ —

$ 40
$ 40

$ 47
—
$ 47

$ —
$ —

$ —
250
$ 250

$ 40
$ 40

$ 47
250
$ 297

Fair Value at December 31, 2012

Level 1

Level 2

Level 3

Total

$ —
$ —

$ 137
$ 137

$ (13 )
$ (13 )

$ —
$ —

$ 137
$ 137

$ (13 )
$ (13 )

The carrying value of the amounts reported in the Consolidated Balance Sheets for cash, accounts receivable, accounts payable and short-
term variable debt, including any amounts outstanding under the Company’s revolving credit facilities and working capital borrowing,
approximate fair value due to the short periods during which these amounts are outstanding.

The book and fair value of the Company’s term debt was $2,896 and $2,912 for the year ended December 31, 2013, and $2,755 and $2,800
for the period ending December 31, 2012. The book and fair value of the Company’s capital leases was $4,796 and $5,565 for the year
ended December 31, 2013 and $5,040 and $6,200 for the period ending December 31, 2012. There is no difference between the book value
and the fair value for amount recorded in connection with a long-term legal settlement, which was $1,022 and $1,049 for the periods ending
December 31, 2013 and 2012 respectively.

Fair Value Measurements

ASC 820-10 classifies the inputs used to measure fair value into the following hierarchy:

Level 1

- Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted

assets or liabilities;

Level 2

- Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for

substantially the full term of the asset or liability; and

Level 3

- Prices or valuation techniques that require inputs that are both significant to the fair value measurement and

unobservable (i.e., supported by little or no market activity)

Fair value of the forward currency contracts are determined on the last day of each reporting period using observable inputs, which are
supplied to the Company by the foreign currency trading operation of its bank and are Level 2 items.

Note 6. Derivative Financial Instruments

ASC 815-10 requires enhanced disclosures regarding an entity’s derivative and hedging activities as provided below.

The Company’s risk management objective is to use the most efficient and effective methods available to us to minimize, eliminate, reduce
or transfer the risks which are associated with fluctuation of exchange rates between the Canadian and U.S. dollar and the Euro and the U.S.
dollar.

When the Company’s Canadian subsidiary receives a significant new U.S. dollar order, management will evaluate different options that
may be available to mitigate future currency exchange risks. The decision to hedge future sales is not automatic and is decided case by case.
The Company will only use hedge instruments to hedge firm existing sales orders and not estimated exposure, when management
determines that exchange risks exceeds desired risk tolerance levels.

The Company enters into forward currency exchange contracts in relationship such that the exchange gains and losses on the assets and
liabilities denominated in other than the reporting units’ functional currency would be offset by the changes in the market value of the
forward currency exchange contracts it holds. The forward currency exchange contracts that the Company has to offset existing assets and
liabilities denominated in other than the reporting units’ functional currency have been determined not to be considered a hedge under ASC
815-10. The Company records at the balance sheet date the forward currency exchange contracts at its market value with any associated
gain or loss being recorded in current earnings. Both realized and unrealized gains and losses related to forward currency contracts are
included in current earnings and are reflected in the Statement of Income in the other income expense section on the line titled foreign
currency transaction gains (losses). Items denominated in other than a reporting units functional currency includes U.S. denominated
accounts receivables and accounts payable held by our Canadian subsidiary and certain intercompany receivables due from the Company’s
Canadian and Italian subsidiaries. The decision, to hedge future sales is not automatic and is decided case by case. The forward currency
contracts to hedge future sales are designated as cash flow hedges under ASC 815-10.

As required, forward currency contracts are recognized as an asset or liability at fair value on the Company’s Consolidated Balance Sheet.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is
reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the
hedged transaction affects earnings (date of sale). Gains or losses on cash flow hedges when recognized into income are included in net
revenues. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the
assessment of effectiveness are recognized in current earnings. The Company expects minimal ineffectiveness as the Company has hedged
only firm sales orders and has not hedged estimated exposures. In the next twelve months, the Company estimates $10 of pre-tax loss
related to forward currency contracts hedges to be reclassified from other comprehensive income into earnings.

At December 31, 2013, the Company had entered into a forward currency exchange contract. The contract obligates the Company to
purchase CDN $1,700. The contract matures on April 30, 2014. Under the contract, the Company will purchase Canadian dollars at
exchange rates of .9619. The Canadian to US dollar exchange rates was $0.9402 at December 31, 2013. At December 31, 2013, the
Company had forward currency contracts to sell €800 at 1.4251, €400 at 1.3635 and €100 at 1.3538 with contract maturity dates of July 2,
2014, February 10, 2014 and January 31, 2014, respectively. The Euro to US dollar exchange rate was 1.3194 at December 31, 2013. The
unrealized currency exchange asset is reported under prepaid expense and other if it is an asset or under accrued expenses if it is a liability
on the balance sheet at December 31, 2013 and 2012.

As of December 31, 2013, the Company had the following forward currency contracts:

Nature of Derivative
Forward currency contract
Forward currency contract
Forward currency contract

Amount
CDN$ 1,325
CDN$ 442
1,300
€

Type
Not designated as hedge instrument
Cash flow hedge
Not designated as hedge instrument

The following table provides the location and fair value amounts of derivative instruments that are reported in the Consolidated Balance
Sheet as of December 31, 2013 and 2012:

Total derivatives not designated as a hedge instrument

Asset Derivatives
Foreign currency Exchange Contract

Balance Sheet Location
Prepaid expense and other

Liabilities Derivatives
Foreign currency Exchange Contract

Accrued expense

Total derivatives designated as a hedge instrument

Asset Derivatives
Foreign currency Exchange Contract

Balance Sheet Location
Prepaid expense and other

Fair Value

December 31,
2013

December 31,
2012

(37 )

137

(13 )

Fair Value

December 31,
2013

December 31,
2012