PLOW - Earnings call transcript Q4 2021

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Operator

Good day, and thank you for standing by. Welcome to the Douglas Dynamics Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation there will be a question and answer session. [Operator Instructions] Please be advised that today's conference is being recorded [Operator Instructions] I would now like to hand the conference over to your speaker today, Sarah Lauber, CFO. ahead. go Please

Sarah Lauber

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

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

Joining After the McCormick, I In then me Chief call we call the that, hand overview on questions. a the President, Officer. performance guidance. call our will today will that, open review an is Executive I your provide will of our over for Bob our moment, financial With Bob. will Bob to and and results

Bob McCormick

with Attachments park, review and produced Sarah, I'll quick from our of Good great the of a out team results. quarter. start the strong strong it execution everyone. morning, equally Thanks, demand knock

continues segment performance strong ever-changing focused teams unusual continuous initiatives endured in our has be stymied Despite serving seen difficult on demand, customers. while circumstances XXXX, but external conditions, and to our adapted driving also the and have the by incremental Solutions remaining heads. improvement to

situation, to unprecedented U.S., in Looking XX back the over back the protocols months safety-focused, past to the and emergence the getting first the adapting health two the pandemic in years of work. from were place, and putting

and still saw pandemic. sit XX dealing months ongoing new fall first variants months of the The from all the off economic surges second while the with home, XX

has the and some improvement continues impacting half the source dissipate, absenteeism in country, a will to economic in dramatically increase for continued Omicron start the employees associates. with very and Those then also challenge, be are across the supply of continue of year products raw both pandemic seen good of show performance chassis [unpredict] has XXXX That at put chain to primed believe XXXX the like macroeconomic an ready many are keeping of materials, in but for our the we team tight segments. to the rise number components, constraints, track faced factors companies shortages. inflation to we December. the big produce place second record led timing XX-year skilled by success and Inflationary The sectors of The staff to high. similar and to the the compensation exact the surge year. raising to headwinds remaining with January, issues situation related starting today. in backlogs, indicate or recently. a Finding As the trends demand remain The the and first half, year is pressures, as is who and headwinds we labor with month execute Prices similar but with question. news enter subside. rest initiatives supply we disruption, to will but strong and improved supply in third And chassis by in last

profitable of we've help end. the the both back will half number at for growth product XXXX XXXX Additionally, scheduled launches in that new a got segments drive of in

in segments the about talk more detail. Let's

pricing for the fourth several the increased quarter, XX-year and we offers. near the these increased about average. see season will Essentially, I slow year, areas actions well we the of And below driving and continue, There There snow of more fourth as UTVs a given were areas and are non-truck sales need the started ice totals year. namely additional in this good major the pathways and impacting mention were equipment were snow multiple season Record control on Coast. in later during demand strong impressive traffic increased snowfall which March, trends user end quarter, the tremendous where array of manually. creates Historically, traditional net quickly product now, such the metropolitan XX%, other environments, Midwest is will and off us non-truck nonstop cleared in positive efficiently very as and changes control off minus improved safety hospitals, which First, landscapers, taken Results disruptions. the The attachments. team year quarter or the products across hazard. large crews in our pandemic outperforming lead East factors and that wide and was Things ATVs. average, more QX cleared from If XXXX, places continued and segment. sidewalks on-campus results: dealer January in hope capped the with strength retail foot talk in these one to industry, these despite plus of A you our totals a and X%. expansion produced activity, storms a for factor even end-users equipment. complexes snowstorms with a by demand during seeing to for hear ice products, optimism, universities, maintenance to

Douglas. efficient, end non-truck deliver their expectations. to opportunity productive the and and users outstanding financial while few equipment, creating Over team meeting growth [Mark Hagelin, to are exceeding towards years, beginning which continued is Van customers' migrate performance for Keith entire and a more Gendron], attachments the past

solutions. inflationary efficiently. hindering to Supply and trucks to ability many to chain that work upfit economy continue solutions have headwinds the been our impacting Turning sectors disrupt of

the to QX. disruption business significantly net component upfit through year With continued compared chassis and profitability supply. our to quarter, lower volumes declined was moving sales due impacted of model, prior the For in

as near-term we to have the on see However, workforce despite it's important our margins. backlog we the keep intact address skilled impact we

renegotiating of half XXXX. means plant with were look we inflation mitigate into cost first trucks, customers the QX completing risk, this upfits reduction pressure in eventually these on XX-year on pushed these XXXX, into To these upfits and Class at near-term will more As we've our ahead when for put And particularly of margins shipments. out supply, delayed with of some X price help shipped. dramatic the trucks chassis been the are built highs,

and commercial continually the Dejana, and Dejana on had We municipal are remains but leadership success have solutions. our records. strong, address. backlog orders contracts strength Henderson the brands, repricing to are and at good testament teams at A and Henderson we harder of products, our to breaking

mentioned velocity As through our the impacts trucks moving profitability. I business earlier, significantly of model upfit

at the will fair The start the good upfit is backlog for deliver we and fact upfit know things to Douglas. flow of our a we in facilities, great chassis starts profitable begin is also year, moving that happen. our improve to second half Assuming trucks price for and through can work customers we

made to drive that on improvements actions they as chain Just like the execution that important Henderson are how one profitable Solutions in a year demand Once regarding upfit our reminder facilities. began. will our perform With recent financial municipal I'd and ago, said, and turned back and growth years supply of mention predicted recent long-term targets. disruption fourth taken deliver align. in we track our supply put to us diligent quarter dissipate, An when headwinds in confident before can great the

DDMS, successfully efficiency, facility. thorough you game-changing and and facilities, soften completed is highly and fixed increase across to driving Henderson we that stronger capital our The Huntley, strong supply As our our we're the through improves our I second locations these of January XXXX flow impressive. situation chassis upfit when these With improvements here completed a we demand upfit Huntley two allocation productivity. chassis Utilizing to efficient the out exit of a start were three lift, to of made other is work productive, our positioned will upgrade allowing us QX. a four remember we news in team business investor close Illinois great deciding XXXX, priorities. to operations, results entered cost turn the we half example through at in team to in meet customer move, than When was bold may that, heavy began from This Henderson the process event, leadership a plan a backlog, to throughput, our upfit replicate the position our improvements model. we to to how good clearly This but of The it. country.

going to committed remain -- forward. good remains top we it This again as we the dividend our course, and quarter. year this priority in before the bad, $X.XX per Of increased Times both have and

flow given million. repurchase our cash initiating program of consistently stock a strong production, we free Additionally, $XX are

and relationships way. available, meantime, logical due today. M&A one list hoping are we opportunities companies we opportunities aren't target ahead, our Looking come pursue to but of our on the the on diligence In become to that seeing continue many build near-term blue-chip to the see conduct

back grind have used and XXXX, imagination their within changing a who put the willingness for out necessary. down dedication creativity in by constantly all I'm term, team position to it operations to and improving at over circumstances, to the Looking grateful our long the plus adapt showing drive our demonstrated when heads and

-- exiting towards continue unpredictable goals, of to operational the series term, the believe to external I favor, potential. improvements will we over turn which recent near past are financial implemented with years, in later, two the in clearly than are will likely Sarah ready the entered. years firmly pandemic confident we While long-term we stronger be the we discuss our our when in to challenges have have combined driving we headwinds deliver, long-term faced

to Now call to I'd pass like Sarah. the

Sarah Lauber

remained which Thanks, the X.Xx year our top-line sales Bob. the effectively consolidated attachments year and for experienced inflationary three, level I'll record full results, growth; solutions the demand record these One, first grew the and at covered cover on XXXX. to a in basis; highlights. we two, include of costs over backlog overall end the and full we strong, double-digit

repurchase saw guidance. where within continues, our just to then next flow increase in the Lastly, strength and Board plan. free cash headwinds dividend particularly year's will a announced $XX increase, talk approved to to share Solutions quarter our XXth then move the about our foundation the our we we segment. lay million fourth I'll and This

both year. the by compared driven $XXX across net improvement a sales is increases The were First, a was full combination and XX% year higher increase which million, Full-year at million. price segments. volumes last Attachments of we implemented Truck when $XXX Work generated to

experienced of we caused and we, or direct of or was of Gross million sales XXXX, $XXX.X resulting part the last profit the XX.X% disruption for -- supply XXXX, the $XXX.X first first year, to which Although XXXX sorry, to compared million XXXX. suspend operations unfortunately, us experienced in net net shortages in for of XX.X% for chain pandemic-related in half sales delays.

compared supply, $X.XX compensation million adjusted to per Attachment XXXX. component the $XX.X basis increased primarily XXXX. in decline and million million of full gross to our basis, inefficiencies basis, all a discretionary taken our pricing with actions mitigation see to and can portion per increase XXXX. income second GAAP back more significant quarter noncash for on costs EBITDA, point GAAP press year XXXX by in SG&A in The as adjusted possible pleased pressures a relates net relates in share XX of saw across charge in in sales of a from inflationary million in Operationally, initiatives. headwinds savings We negative inconsistent to a costs, was million where very an higher adjusted incentive-based we of remaining income or cost recorded these offset you the and earnings return of compared million due net our or loss strive of margin Although EBITDA $XX.X On spending full XXXX, $XX.X or diluted driven A last higher input increase we're year levels XXXX, the absenteeism. EBITDA team's in net and loss our with nonrecurring diluted XXXX. added year chassis impairment we reconciliation items $XX.X $XX.X goodwill to to was in which segment. to million in large normalized to share to release. $X.XX net $XXX.X $XX.X On to

of in We to $X.XX $XX.X in or generated or million income compared XXXX. million $XX.X net $X.XX adjusted also XXXX

million effective was tax Truck credit XX.X% were impairment rate impacted tax Attachments in of ongoing Our but and XXXX primarily Work audits rate XX.X% prior for Both the second XXXX was $XX.X The lower to the of XXXX million, year. refinancing outcome compared state the $X.X rate results nondeductible the due successful different XXXX, low, for last rates The following to by unusually the the tax interest improved than year effective reasons. goodwill. the was was consistently from of in effective XXXX driven year. the were of by which tax favorably expense lower XXXX. facilities quarter throughout In performance strong was

the the to flow higher favorably year of $XX.X and sheet operating the in free cash full during million, Net Turning prior the year. $XX.X in figures for million was XXXX. $XX.X generated $XX.X balance to liquidity the cash Similarly, compares million than million XXXX. activities provided

X.Xx is sheet in leverage and in under our our and liquidity debt ample liquidity, which a million, with Capital revolver, and XXXX, lower of June million, range. of $XX.X within when spot net in refinancing was compared million balance year's a of target, $XX million XXXX. for to is the borrowing line totaled of locked $X.X million interest is last Net At in our $XXX.X Our compared leverage debt our XXXX, decrease rates. with the debt XXXX of end cash $XXX.X $XXX.X expenditures of capacity total million at ratio million in of in great $XXX.X to which includes in targeted end our million. liquidity line $XX.X

level review to million driven which loss the record to and despite QX and the $XX.X were Adjusted In EBITDA by to were fourth ice million declined snow Work segment. With Truck unusually $XX.X compared million. chassis last during our revenue Work outpace XXXX $XX.X in normal complete, the Attachments to period of quarter. revenue increased adjusted year, demand million, segment the due sales realize $X.X and recorded Inflationary XX.X a of and pressures. to at also year to based year on ability X% in XX% pandemic. disruption overall activity for the to Truck volumes price negatively return by The compared non-truck fourth the drove a and in closer of began decreased markets and increases and spending to increased response and control control to Results sales million the let's approximately partly impacted Henderson, strong ice full to the Solutions impacted inflationary quarter EBITDA products look due due net a mix of snowfall lack the retail higher compared the quarter, non-truck of particularly strong products prices of supply, to supply low to an prior-year core higher an in component prior Net chain EBITDA respectively. profitability inefficiency. which escalated segment's $X.X labor adjusted equipment. pressures and during the

two quarter margin plans first, Henderson possible, mentioned, goals. fixed reducing where costs long-term closed Bob two and near-term reasons: meet also the execute As upfit headwinds, to operations main Henderson's on for given on to focus we during a

million, of Based Second, we project of and to long-term back impairment following improvements years. we a changes were pay recent without to our at remaining able significantly because two under facilities the projects $X.X years. nonrecurring make in decreasing charge recorded the capabilities the action, upfit in on we these efficiency this DDMS expect

very cash results, our almost double of Lastly, were free flow with we million. pleased $XX.X XXXX dividend which the are

consistently past to years, to the cash us Over most have conditions, under free to we able two operating changes. continue make strong even two been have the which flow difficult generate allowed

XXXX. of our able share First, per increase for we for the IPO first the to our XXth since time to quarter $X.XX were dividend

to million deploy Second, Board years the authorization, our further excess approved the repurchase ahead. demonstrating share a $XX in commitment capital

I'd Next, and targets. our outline thoughts guidance to like long-term on

the from share, $X.XX $XXX EBITDA to which per to estimates Our earnings to $XX range rate be anticipates of share in $X.XX per and sales million to tax million effective share net of between XX%. adjusted XX% $XXX XXXX per financial an and million; to XXX outlook range adjusted

will year the again XXXX a the Solutions more Work of far, not As once a largest By typical provide in Douglas, color headwinds economic bit be on for reside Truck let drivers me our segment. guidance. the

is to play XXXX The during backlog end component more assuming in that with shortages First, causing understood grow. and in we X.Xx our need. position supply second much the XXXX, the we record year. of customers silver XXXX. by work backlog, improve quarterly that in now, new XXXX will then continue will basis the ago. a enter today. across a importantly, meaning entire chassis the the we to lining supply chassis are chip XXXX is than and the set truck to impacting half continued backlog better are XXXX, record was to auto industry, supply high Right shortages and start that continues than industry higher chassis demand entire a year the be the will in computer on believe ended slowly We we At backlog We're to similar of delays

saw costs we continue fourth quarter, Second, in into XXXX. will which the input in steep a uptick

Our the what the costs are by we entered at in in others. further seeing some year remain guidance offset relief inflation assumes is to in areas level we at as

XXXX begin we over earnings backlog solutions the be In issue. in will improvement these of of tremendous is confident will chassis to of As chassis term. increase. expect in know as to the term, as business will negatively realize I starts dollar-for-dollar the performance recovery the to work see an challenge which and solutions when we that have to subside. with margin continue segment's velocity near half margins. to still macroeconomic issues the realization inflation a timing supply impact gained the improve expectation long expect We're of the we an remains price second elongated. covering headwinds lag the XXXX, and throughout inflation shortages, price company, But And

continued the Work highlights of guidance strength XXXX our business, the of segment. Attachment side Truck and other the the resilience On

continued great The products. been workforce have also are market-leading demand for through our and consistently to meet chain news constraints, they continue. able they we the navigating to is expect that strong While supply

to team profits the better-than-expected line slightly of and well top XXXX. Our of to our conditions economic and non-truck growth weather lion's and continues products perform from driving continue in demand is times will share end-users all growth. in trends drive in Strong

the As average snowfall. guidance always, assumes year for our

subsequent issued Looking shortages, which further XXXX We financial disrupted out, long-term share chassis the than the in earnings by and XXXX. the mostly and release, of as per reiterating in component Bob quarter goal greater earnings XXXX, also our first then goal $X. of mentioned was in our fourth we're mitigation followed in which and pandemic this

to the hard more external 'XX internal these put we've our ease believe today, work to to we can unfolds. expect means We stronger challenges in we We operations typical of position march adjusted project as and had per years, lessons. towards start on resume our valuable in wins from or improve last a now and important are have celebrate we in to learned will two earnings goal share, to that far XXXX. reach Reflecting and $X the we've

for also important, and our our continue our we growth that With to returns our open will free we'd the shareholders conditions taking deployment our optimally anyone stronger long-term said, we ensure pre-pandemic our on invest to While than control are success. that And to remain our positioned questions. longer long-term we grow focus Operator? mindset for prioritize by cash driven flow, have to that is strong committed the to call Get and Better will like the on hoped, within of factors effective prudently strategies. to return in we exit we drawing Everyday while are capital as continue would and just which

Operator

Instructions] first Chan Josh come will Our from Baird. the line question [Operator of from

You may begin.

Josh Chan

Rob morning good my Hi Thanks questions. Sarah. taking for and

Bob McCormick

Good Josh. morning,

Sarah Lauber

Josh. Good morning,

Josh Chan

clarification. QX, inflation Sarah, that solutions-only apply that for question, does I the in whole just your a the morning. company? Good Or a first ramping was on comment? comment guess

Sarah Lauber

we quarter. in us is that input saw steel those would the increases peak of that guess, that the time all using But fourth costs. saw the mean we for in fourth board, frame, September kind realizing say the I which coming really we lot of the year, we notices, quarter. are price to implies I the I were It in during steel across a

Josh Chan

Okay.

going dollar-to-dollar a then forward? meet the you And do at inflation on continue so to least to basis -- in Okay. attachments expect business

Sarah Lauber

Yes. Yes.

So walkthrough, on thinking let I'm the the way I me versus guess, inflation. non-price

in to XXXX, So the for the the process, dollar expect accordingly. preseason covered will XXXX, the that said changes at look to when outlets. and that they I make still diligent we at follow and script attachments will effectively happen we I look all market pricing But their dollar of continue longer for term. very across

new solutions the implemented -- regain some On on business. side, for multiple working to we're some longer-term surcharges price are and on there increases price areas contracts. where we have their And close

versus in the what's that's lag of further are solutions, and So out further. fact driven by driving year price the the inflation that really chassis for pushed

expect we cover longer to overall, it the term. in So

lag to bit. attachments the solutions year specifically to So cover get your will a questions, yes, for will and

Josh Chan

guess might All in is great addressing comments And way color. it either Has Or gradually? be Bob's that southern occurring there then non-truck is it the last big then need? a you, that in right. can that this That's how And shift ballpark earlier or attachments. phenomenon business business about back how circling people to for I that been more a year? year are you of particular of

Bob McCormick

you us, got significant snow equipment, as things we've excited look financial has past group Yes. we're a basis. when you've control we've been the hinted of the these when for some at on especially line continues emerge couple years. which over annual growth talked done, We've phenomenon does gradually. program this an about targets, of pickup It we new to Deere long-term the Attachments of to things present expecting John avenue that top the it But and about. like we at and mounted grow, a on our have market share that growth ice the amount have growing And weren't

uptick result products, Sarah, we proportions I'd an to brands are there? like revenue the say you that. want Attachments growth us. and 'XX, No, not set to think that And our have exciting matter. through those We've of to earnings all right the speculate or group. additional it's for and opportunity you going new we longer-term on say So got really us I'm for sales, further expect in of going non-truck XX% certainly, growth a we've that an we out long per forward, over had area look think long-term and the you saw of area. expansion of a off especially hand, share focus is to earnings more percentage definitely for attachments, big but about not goal growth or in things and this what revenue I'm the an when anything time their earnings $X in anything and driving going calculating growth piece continued

Josh Chan

for wishes you and the Thanks, Thank Josh. Great. color best for 'XX.

Bob McCormick

Our next Mike the is line of from Shlisky from Davidson. question D.A.

You may begin.

Mike Shlisky

are how guys hey doing? Yes, you

Bob McCormick

Mike, Good you? how are

Sarah Lauber

Mike. Good

Mike Shlisky

start like involved kind Yes. share Can a it M&A just I'd Good. you in kind about there? assume can does sense you're Is two segments Is what $X over long-term is that talking the the is -- that remind give you're per level any in to hoping assumption? average year with weather your us, term? there about where of the demand share talking Just of $X the 'XX. as be long to us a to outlook.

Sarah Lauber

I would I plans we're guidance our always at going average snowfall. looking any we're or mean, forward, looking whenever say, to

talking now other to which opportunities integration growth non-truck see you and So areas certainly, on we're are without of a just lot say backlog. would other laid that requiring And certainly, some growth to further attachments improvement had in we growth $X solutions, in of the still that the projects. margin our snowfall. out just there reach I the that plans and the we vertical for have these can plans,

Bob McCormick

do the amount an fixed within is chance Mike, eating about record backlog levels backlog to view, I start to from Yes. importance them. of to pace at bake target. put And Solutions through think we had things simplistic know, at is When never start very any and thing of we those has get deal, talk than a the a acquisitions bad or what's and projections. attachments into and we velocity think two way about growing currently important largely together, Also, performing group. when targets the you group ahead faster originally that you a look will near Attachments of the $X you doing would to a you then sake don't deal of way it to growth the on we into have the get of way. sitting you're have that's anticipated, a cost you point at how those model. to do And We we that's group, that our that one for unbelievable moving of have financial Douglas that which a add, thinking

Mike Shlisky

inventory it. wanted like can I and not are for just to update if give folks going? also And problem, is just you us it. dealer do Got it's How a Got I it situation? ask, but feel starting this assume your at inventory there point? you

Bob McCormick

at bit. them six-year couple of this interesting. We of just dealer at inventory dealer a it's were long tick, we've January seen Yes, in year, loads. just the Even a it's last years, up the took Lowest last little January had though we inventories haven't for end breakout time. snowfall a and season a

of while a little still little So certain more may be a snow Retail very in It's country. to strong. parts in activity or place. less the interesting, a it continues terrific

We are seeing more ice events.

two in terms think seasons the that and the farther you farther If of about south ice is last United moving within States.

we've other a through on are drivers dealers a basis. regular stocking allowing sell inventory so their got pretty that number to our And of

So on lights lights green. we Everything any or at all. don't our have that side of any business is red yellow

out? Can just question. multiples be not us a back think something flesh Or of year-over-year. think is there any occurrence them Can canceled I last you this for risk of quarter. it one Okay. and out you additional a here? Great. backlogs is ask sign just asked you whether of kind folks is I that that likely of gigantic

Mike Shlisky

-- this of in stronger first that on to sit was weeks still are interesting order in We What's backlog, today, even here the as point. have in sitting six we XXXX than seen none weeks thus intake this XXXX. is tremendous while it six we're of that first is far we the

thing the we The competitors. trucks that gives So more this of optimism work is many the hope obviously, that anytime away there, us at still know end get for soon. of our day, isn't going we renewed than

going flow and times hungry So than of in competitors. our as and are better are chassis most people their again, be vehicles. even our to first to -- start to We're be lead generally to going get line

don't I for cancellations us are all. big a at So risk think

would this We in a get I not fixes Mike, itself. we're chassis us XXXX guys. from to a even because on so the expecting The much, models. going think surge period. any and is not I through to those when Thanks standpoint, we're this a backlog other earnings OEMs grow in thing is business to it. X-months of perfect be basis Appreciate going XXXX, We're blowing consistent which, chip through chance that point into out, give X-months to thing to pretty solutions going it's our

Bob McCormick

Thank you.

Sarah Lauber

Thanks, Mike.

Operator

line comes Christopher the from Sidoti. Our question from McGinnis of next

may You begin.

Christopher McGinnis

Thanks morning. kind taking and Good for of the insights release. for in all questions my the

a [indiscernible] you the the little inflationary harder just backlog, on just environment -- bit pushed -- Has the a we think I class -- push bit side. the has smaller to last that start, that about recently? question little around introduced and off of truck maybe Henderson given talked

Bob McCormick

the understand what -- vehicles. for situation some make asking I municipal creates opportunities I want you whether were side, Henderson it about sized on the sure where to smaller any

Christopher McGinnis

around timeframe. Right. The XXXX newest that you think introduction, I added Exactly.

Bob McCormick

Yes.

are they in shape, budgets. Here's to what's back still but decent fixed Municipal dollar are budgets interesting. being

work within they amount. go that operating are need, a occurs fixed on dollar So the still when they budget trucks and inflation prices up

next they the couple right? a as I'll -- can couple can me So well. if I'll give take X XX -- take X, they things say, they trucks, of your then to medium-duty They but what, can take or trucks point, wanted can of year, say, a happen,

some So increase we certainly that demand expect to vehicles. see on of more those

yet those large We have to sitting as expect shell that we vehicles. business the if on still next municipalities see some two mix game, that or they're to shuffling see some will. they do firm shift pretty will Right smaller trucks, over now, we the but you cycle play their

Christopher McGinnis

Appreciate that.

demand the in it's the relation in than coming is outlook, place other that's through. Just else to 'XX really now just anything

other plant you've terms all done about of lifting the efficiencies. You've the hard in talked

Bob McCormick

-- business a situation think what you is being never our what you of part hold. next know the back, mean year I where I that's going where That's of to long-standing model Exactly. go weather-driven

and Henderson down, and disciplined improve around, the result. the this finding batten more efficient we I we're when it so whatever headwind you exiting exiting that across had replicating taking we nothing hatches facilities, still at be just profitable very more are strategy, we to to upfit dialogue three well are other So as and ways a a successful practiced And today, when right, thing have turns if but stronger. are going look

at would as have hoped we longer Double So is Dynamics. things out to it on all when it's taking this of we're our that very subside. going be impatient you, these tell really -- will mean watch this as of us control, positioned dissipate, but headwinds than to happens the headwinds fun what to are I I'm what any anybody see these right? when excited happens point, I well feel

Christopher McGinnis

I appreciate quick that. just And two ones. Great. then

you seeing it's sounds you're maybe of talk the garnering the rate I about growth but a larger side, there? number Just for non-truck about talked on years, attachment just it like percentage now. know this can you've a

Sarah Lauber

I prior group. year growth just from in XX% I for was the to over of this a to projected XX% continue a perspective have exact don't real but question, mentioning and well It's front been the the to area grow. Attachments focus percentage Yes. on me,

Bob McCormick

be that script my offerings opportunity a of in what impact year the on like little highlight indicated the product us specifically get we this some longer very term. to I take more those want more we the to -- And and into looks deeper the as from should as calendar also year hearing topic progresses. It exciting. We be you'll

Christopher McGinnis

Great. are sounds there. opportunities M&A. there out It in hurdle And one on biggest transaction around then What's this at last point environment? a some just completing one like the the

Bob McCormick

would Well, things. say two I

available. becoming is that's target one first The our list something on

a we of very, thoughtful know, out list very you there. disciplined, As have targets

is a in determine the to desired But land. stretch going environment we has is have get make Again, it as when to to we comes targets obviously, an have It's a property valuations, see we're for we -- robust entirely and there. to to targets possible can have one, to we'll find Sarah if we And obviously, and out. that that to layed environment important those where and so ourselves up out up, then to needs that, one we're may to right? work. and the our market And bid, first. play of that still to number but if numbers going And need still conditions, multiple happen don't M&A very where

Christopher McGinnis

that. Thanks in questions I good QX. for appreciate my and luck taking

Bob McCormick

you. Thank

Sarah Lauber

Chris. Thanks,

Operator

any I'm back turn to McCormick, queue. the CEO, I'd And further showing Instructions] questions like to the closing for call remarks. not any in [Operator Bob over

Bob McCormick

thoughts. a for I'd to you leave with like time of Thank your Thanks. today. couple you

While that of ensure fundamentals person our Dynamics, true. day. the we while Have at and of haven't taking the we short-term at one, pandemic improve terrific goals pulling some well-positioned long-term for point our everything three in and within two, through three, headwinds. and do economic is would drivers our driven your we this to achieve we changed, and all things a the Dynamics control success. business to our Douglas we meet us focus profit remain forward during want to Thank we these longer Number the team on that like, from manage know Number business to than year. away to any you are we'll -- Douglas And within expectations. time, number look of impact for you at our lose is long-term long-term you won't seeing

Operator

call. you conference Thank participating. for This concludes today's

have disconnect. now may great day. Everyone a You

Douglas Dynamics (PLOW) 22 Feb 222021 Q4 Earnings call transcript