PLOW - Earnings call transcript Q1 2020

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Operator

Good morning, ladies and gentlemen, and welcome to the Douglas Dynamics First Quarter 2020 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Sarah Lauber, Chief Financial Officer of Douglas Dynamics. Please go ahead.

Sarah Lauber

Thank you. you us thank today's and everyone, for on joining call. Welcome,

be release with matters are have conference to begin, that risks will to described that this forward-looking to cause statements I and statements. risks we constitute filings Those remind in questions, be actual including will your would during that Before These could to comments different. like you forward-looking SEC. include, press answers the in some made call, we the our subject results yesterday's that materially among others, of

Bob Joining In our we'll open me around on provide performance. the call for Bob financial call moment, the review and today an Officer. thoughts questions. is results Executive I'll After of our our McCormick, Then guidance. Chief that, will your overview President a our and

With hand over to that, Bob. the I'll call

Robert McCormick

morning, Good everyone. Sarah. Thanks,

our anniversary we just the Before I'd begin, XX-year to note marks IPO. today that of like

of and over produced growth. progress diversity more Our made proud over prospects company we've serve stock significantly Outside long-term changes evolved that and growth of price has XX time. the lot proud of we implemented our the for there's of do. we're we to exciting the the XX are we've business, the markets the new of years, past in now lot the a but and We've increases, years the past a

expanding in our I'm year. confident truck position last on plans market, are leadership the focused we long-term ultimately outlined we that and aligned equipment the driving

is is our balance to Our none. talent sound, strong and our strategy is second

the our our us it timeline, place to our task achieve impact sway goals. undoubtedly will in pandemic and have we team the from right While won't

could to quarter, to results term. impacted predicted first the familiar quarter. the in have our challenges operate effectively Everyone presented one financial to unique challenges is near both to that the turning These start remember the no this year. going challenges and and which Now ability

for lower earnings of and, due everyone pandemic sales factors: starting X COVID-XX generated March. average X we main below quarter, than X impact and significantly else, and to constraints expectations trucks our the economic the For Class supply through internal operational chassis the in like snowfall,

everyone, top Let's start of for the that pandemic. topic is mind the with

is with and adapting control; Our namely, on outside business built of model drivers business significant dealing snowfall. to our

unique while is So measured, in the a to situation, teams and fashion. coronavirus able disciplined pandemic have challenging a been our and thoughtful respond

early guideposts: that March financial than and leadership would In our and service situation protect it by our as employees, customers senior be we when met when the provide exit would this health, U.S. team serve the safety the to priorities stronger seamless X established clear pandemic, was of and that impacted entered. quickly security

saw, the safety we March employees, of employees surrounding government end time U.S. all and and paying financial assistance for programs temporarily by the Knowing communities. all facilities partners closed to health probably reach you March. through on of we provided full-time As protect security our it employees, the XX them our that of take to would

to ensure April and utilize waiting the while healthcare of employees the through work. to system health paid return insurance families we Additionally, their portion premiums employee would to

will We employees. and at me, relationship do culture to further matter the Douglas we the did it strengthen people strong like Dynamics. right have already because this because decisions our was Trust and these thing enhance our with

for we safe environment a as work to soon the the facilities. all XX shutdown began was preparing return As complete, for

the to and adapting put Over the new countless facilities past weeks for safe to a our our productive in workplace create planning reality everyone. hours team and

the and production facilities customers levels To people provide bringing seamless mid-April. up service in to began we to our ramping back

staffed and are people in customers. we At May. confident service essential be by the operational end of needs facilities hundred several our this XXX% at fully work the meeting point, have We our back we of today, will

We critical of when this the DD long-term will that expect to delivering necessary making situation emerge in investments day," every profitable we our stronger our from the projects "getting are better fully business remain the also coupled entered. to mantra with focused we development growth and on plans. When than

Now let's segment. look each at

First, the expected were as Sales Attachments given be down them we the in QX. year-over-year, poor snowfall segment. to

In in second below-average fact, XX lowest marked was the snowfall of past and the the XXXX snowfall. year second snow season consecutive the years

effect negative low X on before, years our snowfall impact preseason. has and stated a multiplier we've the usually in row As a increases

Our when and with purchases dealers constrained season begins. will later preseason their overall when until our more from started orders, pandemic normal, some than and weeks preseason QX the the conservative placing probably X capital be the economic delaying disruption snow

product are in launches well specifically, for a and the long the new growth half-ton Orders V-plow well are note, term. Attachments over exceeding our products our the received market; expectations, bodes these for incremental in being On positive driving segment this offering.

was every factors cost-cutting down flexing doing to short-term business business of already putting the Remember, Reacting the because so model in snowfall, outside change before team March pandemic poor is will their as pandemic we control. place measures Attachments Attachments model as for year, to mindset responding coronavirus its and to and year, of the well be rapidly snowfall. in built hit. our This the

navigating through banner not Long happen term, coronavirus. when and year levels was two our and robust be. Attachments headwinds, profit of a will clearly market-leading for will our snowfall Attachments, But improving growing XXXX protecting already rebound, [indiscernible], that significant DDMS. our can While XXXX segment

Truck as tight all truck recently is the to compounded remain most ability at of the components we supply by at the OEMs and and Class lines In down, pandemic. chassis for the will only last shortages increasingly the component shut X be OEMs. source and to constrained issues also current And mentioned Work been supply equipment These Solutions, effectively unknown. time, X upfits quarter, through due has

open skeleton well regions business their most than wait more to usual are with demand they Mid-Atlantic on work see when return. with while will of While of today, in capacity are the for XX% and below Coast and where crews them East the we dealerships the operating

we going book, and we so demand not are at in backlog was In long-term procure and for pandemic over and have place anticipate able contracts the of second we our half If of all. the the Class Henderson, our solid, strong equipment into need, to far, canceled. we year X- X-focused being be are components supply performance the chassis, order and, the operations will

and return have customer which to to demand. there world That undoubtedly suppliers meet an be at our component As cannot work, delays accurately ability we OEMs foresee the will today. waits on to impact will

news segment was in be into shape, mid-March Solutions of is the However, companies. that giving all the going true for the will that confidence prospects in good operations. us these And good long-term

increase announced firmly dividend been We earnings top complete, that to priority With years. to has I'd and opportunity our last to a reiterate for our take in the cash our I on usage the dividend commitment our turn today. always capital want call, XX XXth deployment, The increase like priorities. an to past in this

remain make success the that in committed to to growth. also long-term business necessary sustained the position investments We delivering profitable critical and us are for

long-term won't of the timing may change pandemic approach projects, it these direction. some impact the the and of While

portfolio that the we to and continue ahead, to will at opportunities carefully and logical we'll in explore for the attractive have valuations. pursue the products acquisitions Finally, our to add strategic years financial market flexibility services important

companies and down accurately short how many full unique levers navigating mindset. certain, we to creative of will we Most But maximize out, the in means order unique this us. quickly It's simply better more through positioned short-term have embark and and to predict pulled adversity, solutions confront DNA. combination weather during To a we is to on to team the are try while cash storm. than pulled this Our not batten than our flow. of We fairly play overcome confidence of That's that our simply external to DDMS finding capable ability our that downturn. out we in headwinds. this playbook can't have cutting problems believe part our our hatches the companies cost mindset be thrive we have

on focus doubling initiatives improve competitive expanding continuous on driving our At advantages, and time, quality the times. down same which lead shorten we improvement

proud unique responding of in conclusion, our and team demonstrated leadership this have am of they In challenges. to set I the

situation, remain better on and every laser-focused Bottom our stronger serving profitable and we'll long-term we getting line, customers While growth. exit drive day. navigating be this positioned to

call Sarah. the to hand I'll that, With

Sarah Lauber

term, Bob. a Thanks, we're Near significant clearly financial impact. facing

However, financial stronger will strength continue long invest went this from for the our allow to emerge us term in. than we to situation and

we for quarter the and conclusion The low main first record headwinds COVID-XX as a a three XXXX, the tough year we the then snow season in very of exited predicted a was pandemic. reasons: quarter

short-term our and we're preserving financial focus financial businesses. We playbook financial perspective the impact, a from maintaining has At snowfall income The in to April our strong May. end, is balance March status this decision of On well-being our created of sheet, to long-term the facilities our from cover cash our plan, employees partial balanced. evolved which the protection low through through all maintained far but a outweighs significant one shut implications. time, into shutdown

committed in end, investing other to the On growth maintaining projects. long-term we're our and our dividend

through to quarter plans our guidance. and walk related the first Now let me

For $XX.X million the gross $XX.X first and of of sales of net XXXX quarter generated profit million. we

XX%. decreased gross XX.X%. the net profit first gross quarter for Compared XX% of was to profit sales margin the quarter decreased XXXX, Our and

across by predicted Class the as had the pandemic. minimal impacted Solutions. time, were all the and below then, segments' Solutions, our sales of result impacted during and shutdown. shutdown we February, on layer through impacted significantly shipments were the impact average facilities significantly And COVID-XX and snowfall chassis of Attachments were the margins the X temporary margins were X of negatively As availability both by in as in in a in late-March Volumes this

CARES received quarter benefit we also the from a the Act. million $X.X During

an our shutdown, of the cost impacted which As credit, employee employees our we we eligible sales. retention for paid during were favorably March

in of the million, SG&A year. investments last the we've recorded long-term resourcing our quarter increase compared growth expenses and plans. $XX.X the making $XX.X during reflects The first been million to talent were

cost quarter adjusted plus volumes to the negative was As aforementioned million $X.X the $X the shutdown, result of associated the a million, for last for lower the first EBITDA quarter year. both with compared of across segments, first additional

$XXX,XXX, adjusted compared same net net per $X.X share, net of income share, adjusted the period or of XXXX. per share, compared of income $X.XX diluted us million, share, to of first a in $XX.X per $X.XX for leads or $X.XX or negative first net of per diluted negative quarter negative GAAP an $XXX,XXX, million, loss the diluted negative diluted $X.XX XXXX, XXXX. was a This basis, to On or the loss quarter of to for

costs shutdown impact per the volume. in X $X.XX the including For to of $X.XX and of approximately context, lost March, earnings was first related last pandemic adjusted quarter for we both the estimate in the share weeks

same Another notable slightly was for and the was due to we made period the unusual mark-to-market item quarter savings Interest of interest loan in quarter, January. in which million prior rate was drop incurred the the the our masks a This swaps term higher principal the forward to interest $X.X ineffective the LIBOR reduction included based in became $XX our the to noncash in million that expense balance as million in the on credit million it year, prepayment $X.X expense. agreement unprecedented due the than curve. the $X voluntary

expense in our the share. per adjusted excluded have mark-to-market noncash earnings We

tax negative tax compensation. excess The benefits effective The stock to XX.X%, the benefit negative benefit decreased due was of first XXXX. for to related compared tax quarter lower to XX.X% effective

Let comment on segments. me of briefly each the

respectively. first primarily $X.X segment's million snow the of EBITDA below same revenue million. pandemic. were are For season the period $XX.X COVID-XX EBITDA resulting and In average decreases last and during the snowfall from negative and attributable XXXX adjusted of The Attachments the the million and revenue to volumes million, lower adjusted $XX.X year, $X.X quarter, recorded significantly

the year's snowfall only this consecutive was second again below-average which snowfall provide region important is an there snowfall season; context, particularly To northeast was low region, in the us. not for

was remember the in America the lowest since XX% XXXX, and lowest we've you XX average across season below XX-year North the snowfall snowfall fact, approximately total the which was total years. In may seen

the Class net net Work impacted for X Turning were to first adjusted adjusted sales COVID-XX Solutions, sales net respectively. $X.X million of with million $XX.X and increased EBITDA In quarter. which $XX.X supply by EBITDA Work same reported million, Solutions constraint sales $XXX,XXX and work segment's for period were the in of adjusted Truck of the EBITDA last coupled and Truck the and shutdown chassis and negatively pandemic our the trucks, X to Both related facilities. year,

down say strong our free X.Xx us liquidity our to leverage well targeted we these XXXX liquidity. manage is with are discuss more quarter, that I Next, let's unusual figures. leverage impact have through range. balance king. our as we and comfortable cash pay all cash balance the that debt in We flow, recognize sheet these within in first is We of to also allowing that will clear sheet, like that, exited path times a and and the circumstances and

offset by favorable was In million. impacted inventory, supply, from quarter, offset of $X.X cash increased lower used the somewhat COVID-XX, of of changes the operations $XX.X receivable, snowfall working higher was million. in accounts million, change but $X.X by capital by favorable collection capital $X.X and negatively million, first in volumes on of in results The by chassis operating million, growing driven working $X.X

$XX.X free million, XXXX negative result cash for a capital versus an first last declined plus of months $X.X of flow the $X.X in to of As this, million, year. million, X increase expenditures

the quarter of end a of collection compares $XX.X liquidity $XX.X first to the of receivable. higher voluntary of liquidity debt payment quarter due flow lower our the of Total increased of Liquidity on cash million at our the last plus first year. end from strong XXXX, to free million accounts at

first higher million, XXXX business. increase expenditures of compared investments to when the $X.X Capital quarter totaled to the first $XXX,XXX ongoing during quarter in for relates of XXXX. the the The

right while between determining still near are long-term are balance essential our projects. committed term to finding in the which remaining We expenditures methodically the

debt the of our additional ended first million. we million quarter $XXX.X net the debt that the $XX with made Following we quarter, payment during on

obligations our future. As any is stands foreseeable terms covenant-light a also It's most maintain at violating a X.Xx to that net the the we're in we we debt risk ratio leverage of are much and companies through our better and of position term today, it of than believe not of manage worth loan recession. in mentioning

XX, on Our while XX, revolving borrowings on June loan term to credit mature mature December XXXX, is XXXX. to are agreement due our set

pandemic. thoughts our Like many outline at playbook outlook plans contingency companies the XXXX to like we plan adjusted our protection our the have company. and Internally, are various and across financial I'd Now we moment, regarding using budgets created of guidance. income the withdrawing our scenarios because

conditions unprecedented variables unknown While to is too of better on are basis have we to creating with there used we of confidence. overall are our economy recession-like projections reacting regular budgets to amount a the a until business, idea for provide this situation Attachments us for any many how for

addition, as news populated base In term. that is in they're near to mean which of by it today. not can XX% pandemic, and may in impacted located that areas also good the operate many customer our qualifies operate an essential able effectively densely heavily are service the But

moment, by much are at the Attachments We our by For supply and which be a are have the work year. cash snowfall Attachments, demand by landscapers constrained this we at the important preseason will this But for At low is the note, to the positive line. impacted pandemic. supply well-established remember most the likely of on to end with user fourth lean, pandemic, longstanding dealers chain important expect the we states. start in Douglas of and quarter still as be more stage, to X a being able it's weeks front the delayed means while impacted will chain partnerships, be

being in many especially by region. the impacted obviously as is For demand Coast our locations of are Solutions, the East pandemic, hard-hit

we this in supply biggest should point. on hundreds suppliers and Solutions long-term of the upfits, of impact, probably is the the Our we contracts the of an component rely at see for unknown side equation Henderson. Between chassis the municipal-focused business at less given have OEMs

what in our say now X to we significant is varying a of very expect April quarter we X to states weeks earnings. be on during for have For will and shutdown which can second impact May,

I to Finally, this. want with close

to stated, dividend. Bob committed remain As the we funding

XXXX cash dividend. to As and do flow we free our expect in we sit here to earnings generate the fully fund today,

open we'd Q&A. for Now like to call the

Operator

Instructions]. [Operator

the Sigdahl of question comes from Craig-Hallum. first Ryan Your with line

Ryan Sigdahl

what I hearing sentiment? about delaying the channel? you kind from to but talked and about start guys And end hearing feeling you How then are what you are also then probably of QX, I channel to from are Work more inventory? know Attachments. want with customer Truck orders you dealer

Robert McCormick

accelerated was they the The that the with last of we flat. years were pleased in In inventory and to low-snowfall quite dealer environment relatively expect or but were we this at you inventories end took January, row, a results. be of plow would increased, X

in was crop they're it of equipment, while the of best that business good of of mentioned a we in standards. MSAs sign. So in, cream truck small comes I still sentiment, most most dealers, the operate they're terms normal by dealer the the a biggest When to our considered they're that before, and as

and certainly And them so pandemic preseason mindful take to them capital and this that take the also shutdown shipment it orders. And early our is they of when will of constrained. has this of for that place is order size they be more those wise

until that the only place further itself row negative is even and have some not all the So on X that point years level season a snow a down over a accelerated that showing probably start will in tick going time. then fourth reduced wait dealers to in the to quarter increased and preseason, we orders impact at snowfall expect

the our QX. kind that would The preseason other we would little point expect the progresses. a year of just still we in as bit see process this calendar Again, ship early out while QX I to in versus lengthening thing that it's see make ordering more is of

Ryan Sigdahl

than guys them? you you try extending your historically some financial mentioned of greater kind Are any then among to help terms payment do, And of you customers. and constraints

Robert McCormick

No.

Sarah Lauber

Ryan. not, we're No,

relatively that pleased terms. our terms terms. that And We typical I'm historically opted for have have far cash you, thus those have remained with I'll cash preseason tell

So that that's one good sign seen. we've

Ryan Sigdahl

I'll Last and it turn me question over. for then

the the do the buybacks, You kind capital of current kind you in environment, dividend. talked about given have dividend, et the of investments reiterating stock the capital allocation, firmly changes allocation temporary down, or to cetera? hunkering between After company, any near-term

Sarah Lauber

So the a way maybe about tweak we not think here this in there. has changed and capital allocation environment,

to dividend, focused are that. committed the on fully We

We year. free for the flow generate cash dividend expect will the that to cover we

Secondly, we've made which we QX. been $XX on debt, down million payment of focused in paying a

today. comment And we're committed environment acquisitions. into make are we in continuing with this and CapEx, in on at long-term comfortable the I'd back investing say projects. We leverage then, growth third, our I'll then invest that to to business are our

are also sales, capital going again we I we the being but I'll However, the sure request still around X% re-approving each year, navigate areas. will be on say, of year. through just are expect that invest this and very diligent we making CapEx investment through we an right as it, in

Robert McCormick

moment. add that, just me one just Let on to for

to free even things a the remember of is get balance is It's Douglas a always great in than almost about tough. certainly cash when One It things generation have sheet flow better business most. model, shape. is we that high

as growth levers appropriate CapEx, we we're trim suggests, long-term we have pull while will do ability the initiatives make Sarah that we support to have. making the sure investments So we that back have and to mindset the still

the a cuts, for don't we is lose balanced momentum making sure at against it long-term same goals. So our time very short-term approach

Operator

of line comes question Baird. Wojs, the Tim with next from Your

Timothy Wojs

can just how volume? recognizing normalized decrementals situation? unit just can on you or think of the question you kind would kind of flex, think and sluggish But How flex margin. expectations what as margins second maybe of at quarter decremental you first of a do kind maybe the given look the isn't quarter, into of of kind normal third a a this more just Maybe you

Sarah Lauber

of think much a commercial our that little variable and a been a When cost decrement Tim. I that And with ice, margin, XX% obviously, have costs. range. our question, bit Great business where our evolved, has acquisitions typical fixed more always to structure, around we've and about the from snow additions we more

good a to that. standpoint, times. that normal place was than that's from QX about think higher Clearly, But in

look bit saw have overhead to weeks this speed when and the March, half longer that come in our severity QX we the shutdown us QX we to it quarter. the then And takes were you at react. X and at related costs for a With in

about to So QX, when share impact you earnings $X.XX on $X.XX impact. estimated the being of per I the think based adjusted COVID-XX

which to end then not quarter, to being look can a I the the increase see clearly improving of You to going year. weeks, have two that half more the QX, is decrement. an But through sequentially

Timothy Wojs

my the as for we the to that QX, That you out of second it Okay. sounds that what kind a $X.XX to triple of we to if was look called like could sounds QX for use $X.XX like question. used It baseline kind going be that like. maybe might and impact

Sarah Lauber

going those to during reiterate, shutdown back Absolutely. working And and been this ramping getting I was on to hard period. are impacts. just up work back We've

of in May So we'll start here and out to that come into June.

Timothy Wojs

Right.

Okay.

Okay. Understand there.

the there? things, contract On It of you in the and has the Dejana? really well there held any how haven't been Henderson same that like cancellations. characterize sounds backlog is up side Dejana But pretty would

Robert McCormick

I seen market-leading you would are haven't if can it's where say East positions on Dejana's and as we you Mid-Atlantic. but Coast the there, imagine, cancellations of think Well,

right so this in they're of thing. middle And the

And like I we for be the half is the the guess, that line what what's wildcard areas, the will running, user dealers seen them are when certainly of biggest that truck ones dust orders end from in settles. I the and when perspective forward looking off, are well this up would point. closed. with at Tim, leave earlier, them The we the as like with you in all sentiment open, are look made of a probably region economy OEMs we and would back expect. is downsized those look the demand I that open And get drop chassis have although are what's comment so country first half a we've of work we pretty in

Timothy Wojs

Okay.

looking [indiscernible] us about refinance. about before, on the thinking guess trying that? extending I or you kind could Because Okay. at think, of had lastly, just kind you're how I maybe you guess, I how just Understood. of talked revolver you're maybe And then to

of update pushing and And any out on maturity sort of getting into agreement there? of some so the kind

Sarah Lauber

Absolutely.

As them. our have I us to you expect We to partnerships fortunate very been in to we've challenged. working markets had the opt wait until we've of with able be back refinance. still banking could and the the credit know, QX. We're staying be close just We're year. as may as half been the closely It to that early market.

We have a open lot for us are ways us. of different other a refinance We're would Term approaches currently we to could in that take. to B. There Loan be

not So ability I'm concerned to about the refinance.

expensive the think a pandemic little this be it before is was I it's going expectation, hit. than though, to more

Timothy Wojs

Okay.

Okay. Well ability the there. still it's is good that

Operator

next Sidoti with comes the Company. of McGinnis, & question from line Chris Your

Christopher McGinnis

a can to measures any projected going maybe spent just margins to with changes just forward? of you've being in the margin, know measures thoughts about any in combat of lot around wanted obviously and talk hurt start you the to just manufacturing some may DDMS, time just COVID, and I off I issues maybe response that that the by safety around maybe pandemic? but hurt

Robert McCormick

Sarah our as Safe And we in perspective, mentioned we'll all all for of I'm perspective. going ramp-ups. putting XX-person in take as short-term during to cleaning a through to think I Work location that hits of a a say the upfitting. element whether we from earlier, will it. that from appropriately that, manufacturing put I place, we speak that shutdowns are it's and teams Return financial been to logical XXX-person as going the social the soon for safety to location or speaks facilities, I measures distancing down a place have shut

I that in might initially be concern can't, the solutions But of farther to spaced work that may apart. that you people they're productivity do some again, put a have can't when tell impact that you we people because these the then just crisis. you with long-term might faced a imagine would I had place

already nothing people are solutions just some unique found short And of incredible. the of so have

that quite thing completely never to days down an we you a and look and we've operations say, facility what's there can get suggest look other to you The location at I if blank to XX possible, and would is differently engineering a sheet give of about at team do paper to and shut-down dream stand do an what shut opportunity it? and got you frankly, a

safety I continuous the I the are some long this that I expect, back running And term, of not margin have And all. we some operational, would impact a at long-term actually measures see accelerate gained in cool. out improvement we margins, place the some answer, put initiatives our fact, we've we're expect may on should think up really so that have will come that and long negative that would those in of of shorter, momentum when improvements. that of XXX%

Christopher McGinnis

in are as starting the on local to you know it just but backlog? there states didn't past budgets Great. be Henderson impacted by I COVID, maybe to recession, Henderson, appreciate that the insight. on risks own moving I then And any and

Robert McCormick

question. terrific a That's

the significant to the downturn last acquisition end up on lifetimes. very proud through continued always While grow other were the that through to economic economic our most the of we of cycle, Henderson we purchased even say coming Henderson in out

all says we need to about municipal budgets. that on think know I the So impact

Do those has cut of is because to budgets and during the get downturns? one But collections. last removal things back cut the control impact significant and commerce ice on of tax snow Absolutely. get it

be So not from situation significantly should is perspective. while new itself, that Henderson impacted that unto says every a history environment

Christopher McGinnis

environment last around just then And competitive Solutions. that. for the Thanks question, Okay. in

causing to a you the maybe about falls the the by disruption balance for of the of country Can you bit it's and flex talked maybe sheet. possibly across strength You about competition your as maybe and grow opportunity just wayside? the talk opportunities little

Robert McCormick

Certainly, your that guess about go that's equipment dealer, But $X million I back is a average probably what truck think we're it's is if business. exploring. a size to million you I your can small upfitter, It something $XX to operation.

businesses I businesses having those on not were To challenged be are degree, this not acquisition longer a those term weather of going to list. target Okay? environment. short-term some Douglas' are to large and think

Okay?

the is we So to situation. things strategy modification to not a the one will a do acquisition make of accommodate

larger-sized blue-chip I a certainly may of there's strategy. medium- fallout have part go-forward to opportunities which out unfortunately are not it's are of our of it. We out of other in We'll be of eyes them present the a companies. companies, coming list likely there. smaller that themselves large targets think that this end if open Most to be for keeping our

Operator

at the over to back questions Instructions]. I no and am CEO. call to [Operator like this I Bob McCormick, turn further showing time. President would now

Robert McCormick

you. thank staying today. you appreciative these we forward are on new difficult as Douglas hope Have to any healthy terrific of in the And Thank work day. very through that as you ongoing we a developments together. are times. ahead time in months your for this We we your look updating and Dynamics, you always, And throughout situation all interest

Operator

gentlemen, and participation, concludes Thank Ladies this and your have day. you a for conference. today's wonderful

all may You disconnect.

Douglas Dynamics (PLOW) 10 May 202020 Q1 Earnings call transcript