MNTX - Earnings call transcript Q2 2018 | Manitex International, Inc.

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Operator

Good day, and welcome to the Manitex International, Inc.

Second Quarter 2018 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to David Langevin, Chairman and CEO. Please go ahead, sir.

David Langevin

Justin. you, Thank and ladies Good gentlemen. afternoon, And thank in International. your for interest Manitex you

followed well further a guidance will our a by today XXXX. good instructions, any comments call securities, Kiefer, from million Please to significant and Steve, factors on April statement, restatement the $X.X be with charge which is and for Operating of sales see reporting Also, in refer close available adjustment mark-to-market SEC as Today, then associated our for and increase a harbor we unadjusted reported and safe On on relating the me XX-Qs our brief I Officer. were $XXX,XXX our restated Chief primarily Steve as or to filing until company. marketable filings operating our our income, and our many website profits risk expenses welcome we XX, non-cash will will XX-K. we our with except the begin release overview, and of with in questions. August please increase to company net a for replay for President restated

had in the in first well from quarter at and in up seen quarter, held level we ago several second not at we are in year a backlog Our is up though we Also the orders received even season solid years. XX% normal the it over this which time. a

Tadano highest one many invested in with the familiar not However, with approximately crane believe industry. Tadano world, million but of has quality what many the crane company results as -- event companies product by you improved the most important in the standards the the I premier but the in in necessarily companies are Corporation. not quarter of of the was which all that the mentioned our sure release, $XX I'm our operating is

company as multi-year distribution industry, synergies whereas and best buy significant independent strings and many have a well to select all many factors large a our our with through Tadano of in from for sourcing. suppliers. has see of there in the for make our give an which marketing, them almost forward the and of in us partner achievement These Strategically engineering reduce the sheet. our Asian they component distribution. we many produce in is have Tadano to been opportunity where our we internally transforming almost step not technology the and to the Further, investment. We our better as we influx it the process, capital components So no quality, component saw we is some improve presence company. the components costs Tadano markets, where a in also are of expand investment, balance our

we As three approximately reduced by $XXX has million in last our mentioned release, the been our years. debt over net

end the levels. had at benefit Our are the significant on more shareholders. debt-to-EBITDA We much a a back and achievement quarter. borrowings US of our acceptable This to no ratios is to our line

number growth extremely with crane share of market cranes boom confidence straight dealers energy this provide market. our continue more which We reported which mast fact, In to will and from us with 'XX sheet. room our on advantage million had that The markets now partnership. all we We take Tadano cash occasions, grow. in and we $XX primary grow serve we our of -- into infrastructure have the into And is the believe grow business have capital today by to continue we the reports and in XXXX. small reported we utilities, to be to working our as have opportunities presented our the are a balance will knuckle much

also Now, from have markets we growth potential in in with boom in we his in the and significant knuckle our lowest these on opportunities elaborate have participate the largest the we additional share. will remarks. where Steve further emphasis Tadano products, market

believe part all of a detailed over be benefit to the With Steve Finally, of Steve? is and discussion. most it I’d to comments, exciting the this forward more our time truly look our for opening operational I those to we turn potential to stakeholders. realizing Manitex for like

Steve Kiefer

which $X.X quarter. and versus and up quarter Good million second XX% gentlemen. quarter to second the adjusted afternoon, XXXX, EBITDA last of versus of from revenue Today, XX% up million, ladies XXX%. XX% compared was last Adjusted we And the EBITDA Dave. Thanks, reported second of of was quarter $XX.X XXXX up increased quarter. the

EBITDA, the approximately to work expansion million $XX significant of is quarter the Comparatively, sheet. years and to basis million net second versus we us Our over strengthening balance of quarter million, since hard of quarter. many our reductions from cash points team, of near-term three the ended $XX currency second with year. with We beginning debt are XXX execution XX% comparable Tadano challenges, and of margins Like gross $XXX which operational entire inflationary experienced growth, International XX.X% being cost currently and the one target XX%. Manitex that discussed. last from and investment pressure necessary gross XX% are previously largely solid period global increasing due of margin are in is exceeding margin with significantly down achieve debt confident of Overall, we XXXX, the the we and To the the of these margin gross from ago. revenue companies, improved including pleased the and will our down offset executing a EBITDA quarter during net margin results our allow Dave the improvements

debt within are upcycle markets. progress we end as We efforts reduce the through continuing further our to ongoing

ago. year Compared end our the XX% to year the a at compared the of XXXX, quarter finished $XX versus quarter comparable the to the order was beginning the moderated backlog quarter strong second After of quarter of bookings in the million of particularly end levels, the quarter XX%. Our the of XXXX. quarter in backlog beginning up increase with second we orders and up of finished an with the X.X%

activity market goods order for contributed core levels our and with Solid products, Throughout share demand the our dealers the combined new within the all of market. our for products we from operations. global benefiting strength towards overall for products, new favorable many gains market quarter, saw industrial core

continued dealers utility, and Regarding energy reported sectors. many the the rental XX% demand quarter the utilization activity Manitex’s quarter several also of with be mast construction robust at from rates crane our straight during sales non-residential with active strong locations. to particularly Retail during over business,

as quarter of the an For have a compared were first half increase year, orders XX% first second of units start the versus XXX the industry strong very approximately to XXXX. after somewhat to first year, quarter And which half of the in levels. industry moderated said, we is orders the

As XXXX mast for mentioned cost we Manitex. are early going market. commercial call, in forward, during we three-year believe recognizing activity chassis. our stages solid And and Furthermore, market straight has aging is to that demand upcycle an was mast and very last patterns for versatility market year the the increasingly the fleet, mixed of last mounted cranes the exhibited strong straight benefit favorable by economic cranes operators end the believe deep of multi-year crane downcycle a of the driven

cranes execute of points opportunities additions; with higher second, with backlog approximately areas: enhancements of crane of activity third, and tons X an is the the is Specifically, properly this mast driven backlog and and upcycle, the energy, XX% associated larger ton To by focus within demand, with straight cranes support. ratings rental such than and we towards XX customer the further the comprised of our are and bias This infrastructure crane in in three product percentage XXXX. sharpening general operational being higher, excellence; percentage portfolio utility, XX First, higher segments.

in these gross strengthen We are that financial and allow and targets. significantly margin EBITDA our our areas returns, achieve lower continue and levels increased confident our us will to debt reducing three focus

total, a business, expansion revenue Regarding primarily that making primarily top-line knuckle our substantial our XX European optimizing margin crane is backlog and currently cost total of to early which than backlog, contribution PM’s total our our XX% our through in In of XXXX. boom higher continue opportunities PM while structure. group, points progress consists which orders we revenue towards PM over growing exist percentage internal comprise

knuckle the line market is crane a of mast for especially growth since larger boom market. PM straight priority company, knuckle is global Continued than times the our over top boom the XX

crane market in share previously knuckle million boom translates $XX mentioned, the revenue. point of to I’ve growth approximately market of each As

to that and our strengthening the So dealer for growth we positions opportunity world our remains significant company, a while other of one network again, in pursuing buildout are American diligently. our continuing parts North

relationship are our together through and growth our in at completed global of Tadano our accelerate collaboration to opportunities Tadano. the training our in operational has exceptional about and working team establishing excited Tadano distribution. particularly members for we're and recently Europe Asia Additionally, globally, Key our sales, plans teams marketing detailed extensive with where facilities in the

both production the and produced Saber improving facilities their areas other of facilities beat schedules. Badger at demand company, the continued saw at execution to of our we Looking in products strength operational for on we’re and focused

mast Additionally, performing branded mounted production TMXXX up the ramping platform North trolley sales Manitex Manitex loader, in truck of boom of straight work branded mounted the aerial continues are AXX and America acceptably. tractor crane

quarter. This new a is crane differentiated deliver we product industrial XX In that XXXX. meet as have the rating demand a carry of out to value third important performance roll our advantages through higher of will features we the will to a executing and level most forward, rest and the single deck will tons during of closing, objective Going number compelling of move offer marketplace. capacity the

set operational are manufacturing gains, new you hard returns. for We’re execution. for customers, Manitex and focused product We development revenue We now other your positioned team the distribution in employees remain shareholders, entire your our working and stakeholders. to footprint execution, and International. increase welcome shareholder today time product us Thank and and thank hard Manitex for company's and your the value work interest overall on for network you confident, well increased solid And expansion strength portfolio, ongoing questions. for and

Operator

[Operator Instructions].

today first Global. Shlisky Seaport Our comes Mike with from question

Mike Shlisky

know so And right? that happens I that most clear, the were just everyone quarter year-over-year, that here the watch backlogs quarters, down is you is to but previous from more important second mentioned correct?

Steve Kiefer

second with coming dealers of and orders our the lot in the in. first particularly you quarter seasonality is a inventory there as a in of number recall, Yes, ordered significant Correct. quarter

second orders of the So a quarter digested were number as well. in being those

Mike Shlisky

about strong than season, also Yes, delivered the was we’re you QX the forward be construction mean US of in going you people question quarter just first advance now another pattern that the -- quarters? and QX more guys more normalized coming could that And did to sense be in I wanted and orders. or back fourth back up normal? quarter we could this here things

Steve Kiefer

Yes.

With tax expect changes the the its end, to make the those that, at year. order close normal there to then be folks that I considerations patterns law out increase will we as impossible year here and

Mike Shlisky

is does dealerships any point? quarter, And Asia as still far out there of it Tadano do that’s do the their as put on with their or the to goes, or what anything and backlog too at to this for early with you initiatives has

Steve Kiefer

Yes. The doesn’t include Tadano, activity current yes. from backlog any

Mike Shlisky

quarter, XXXX for Okay. overall the sense as to Tadano, now And feel of the effect feel of perhaps last compared about before? excluding a of the we versus speaking, how today business as broadly to get can then just you sort perhaps

Steve Kiefer

activity we in seen overall strong America. continue very activity -- good to The North Europe. see in We've

second As particular historical in little well Latin to issues participation there. has don't in the work Asia, of slow the that and have been been so have the excited opportunities in publicized. know, America quarter, Mike, a about distribution Argentina, the some where Tadano you much in we with currency

Mike, again, America, good Europe. and overall, opportunity strength strength good So North in in

Latin growing some be to there’s in been excited And year-over-year. softness We’re America in Asia.

Mike Shlisky

And perhaps from more then Okay. me. maybe one

what what ratio which forward? balance Your great leverage target leverage curious, whatsoever have is going us, can no the line ratio companies of sheet many tell am they kind this actually ideal your I you in news. or is and is in have quarter current issues sector with the

David Langevin

I'll Maybe Steve. tackle one, that

EBITDA Mike, moves in X.X think are a range surpass we I to debt-to-EBITDA once and will X we obviously I as our upon up, that. time think

of the were we’re far we’re charts think So I here -- are you depths as right, the during debt-to-EBITDA off as we downturn. as the --

say comforting in very normalized it's to our be shareholders us back as for you So and and range.

Operator

will Koranda with Matt ROTH Next be Capital.

Matt Koranda

I here. noise, airport, background I'm an in apologize noise any for if apologies. so any background there's

you So up line just the order sort I other they give of after the mean from is, or quarter? being had your did rates I how Mike's in question July. of in which they tracked terms hold backlog as could follow-up questions, book-to-bill of one down, just your

Steve Kiefer

Yes.

rates second the in So year. were quarter, of up the X.X% last versus order quarter about

is lower are the but the order saw as activity out with -- seasonality and of on roughly is the then which typical may in for book-to-bill which normal second the fall quarter July, see summer was X.XX the then see. as busy and the during recall summer, second June we the book-to-bill acceleration you in cranes people pattern very that strong quarter seasonality as begin Our working continued first was up in we've anticipated activity X.XX In we for and year. that are the beginning some you wrap we that after the quarter

David Langevin

months August orders. seeing trends more production what going we And of that’s out good because the At is periods are have. have acceleration customers more thing those again that are of see our we’ll you going Matt towards are this customers. mean to the happened pattern good summer July, But which least wait have this end year obviously Because I is our a dealers -- the of is year. we’re backlog till the last -- trends The the you the that our is similar expectation we units end and we -- to then year. we’re

buildups that, customers. don’t know or I of you’ve Steve heard don’t among build So heard any of know any haven’t inventory inventory of we Mike if I ups, of but

Steve Kiefer

are have of machines that’s -- though Many many our machines absolutely, are yes, no, already end user. to that correct. of No, the leaving committed the factory -- been an

Matt Koranda

Okay.

the it’s order you So flow sell and through way, basically material for has not changed in any seasonality guys?

Steve Kiefer

Correct.

Matt Koranda

that in the XX% the -- then pick targets I think second release of speak could margin EBITDA for backlog. And the in talked and just of of north sort your mix of gross I a in know margin, which commentary terms maybe the gross half. or to north imply about And XX% XX% margin does up you

could So through cadence in talk specifically you QX, more may of the QX? be us improvement

Steve Kiefer

Yes.

particularly higher our Throughout larger cost margins have efficiency activity cranes. cranes and improvements. operations, straight to cranes there’s the for which the been mast So, the reduction our backlog biased than ongoing generally is smaller

the our near of as XX% favorable about So mix those our patterns approaching XX%. things in margins year cost efficiencies, is and combination, term target what’s guiding gross Matt, reduction, production approaching optimism EBITDA we exit

David Langevin

And quarter our finished you our as know Matt -- we -- the at XX.X%.

I So I make, think we’ll could happens. it's but what a putt even see

Matt Koranda

from just and mast? the sort thought size but market here, a in one XXXX that I that of your towards boom of obviously of maybe assuming maybe through straight I to putting if last of impactful far some was you thinking just pretty And Asia distribution, for through maybe opportunity and Tadano the and timing for I help mean to XXXX, knuckle us I of in in that? magnitude sense their investment we’re so what am XXXX mean the sort it’s about products get you wanted for for terms the roughly me. potential

David Langevin

the I are market Well, the the think make we process to like large markets product. extreme, Tadano, a is Asian have we a the potential allow but that trained normal for have company in distribution with sure on to obviously,

of -- rest introduction company. their ‘XX, that introduction to to network, the the be will working on We through to the

in already, mentioned the new. is Steve some of As done his relatively that though investment even we’ve remarks

will in we’ll further think see don't in surely So we there’s parameters give around something see as you're right. that. And on that think XXXX. we I some along, I get something XXXX. We anything

Matt Koranda

out mean how … help of slide us global is anything on sort on then market that I And size,

David Langevin

know, Asia, with Asian What market familiar you the Steve? exact in what It’s I'm big, size the I think the is don’t -- markets. in what not is

Steve Kiefer

Globally, we’ve Matt, about as the shared billion. market total X.X is

how on I’d Regarding with information is. that you pull back breakdown, Asia and that up the different have just get to then all big

had haven't much International sales their marketing the between teams and Tadano detailed we Manitex previously there plans know and You and together. participation putting

will speak So as about in that able to market et forward. they more Dave cetera up we mentioned, plans, sizes, process, going be get as detail

David Langevin

hundreds of be the because would biggest biggest certainly obviously market second your Asia US. is market millions and be third It’s and would Europe

if hundreds a So of certainly billion. millions, it’s approaching not

Operator

will Next Management.. Neuhauser Charles Investment be with Mainwall

Charles Neuhauser

… going Yes, was to actually hi. I

David Langevin

Hi, Charles.

Charles Neuhauser

the Hey, but USA, the would about talked are you not specific States are have how you? user other had impression guess they your seems under the but was the revenue to on you I or in focus potential in in do year like I or potential much -- knuckle those the that. in going new growth not next not the the place as which been of boom that type distribution biggest cranes Tadano that end revenue I've also cranes whatever not incremental and the that growth in are you network and of only new-ish be fully have for or source just Europe. United accepted as development

far curious PM guess potential you I of the cranes in So how I’m are the do realizing in you United the States? along think

David Langevin

Steve some I workforce think dealers. begun the training cranes in we the understands that some US. their new has appointed. and purchases establishing people, dealers over Obviously, with to stock Those quarters, the a of knuckle few a good last of repeat dealers number have have of we job done of mentioned have our that a

So at been we three have it years. for

what fits seeing market And a United to contrary said a has fairly a very it I market crane which in progress. long of because because been the in way the are market. used you think to cover it knuckle lot than stick the Well, we gaining Charles, crane a growth the have have stick is small to -- application on still is with it’s in crane, different that well as the applications and is marketplace. go we think we States the I -- the in the utilization

So opportunity well -- lot I but but think overview. that’s specifically don’t know scratching to if think as any an starting you it I gives go. targets, of and momentum mention to kind the -- we are of we a obviously are I I don't us think want gain surface we Steve,

Steve Kiefer

North share market the overall past years, points market. have Yes, gained XX%. PM several for of in the over North market remains But still in two under American we our share America

and dealer network of continue ongoing lots announcements more an we our with for follow building there's So opportunities out basis. will upside to on

Charles Neuhauser

to -- So dealer you there’s new add continue product to to add I to line? opportunities mean still continue that

Steve Kiefer

Absolutely.

Charles Neuhauser

Okay. picky note, and target term more that near of sort term by is near margin rate the And the about XX%, of then on XX%, exceeding guess you end this you gross what margin year? EBITDA I when covered of a the by mean a talk you run of

Steve Kiefer

end -- soon this possible, as of as this be would as possible. year a soon As good but result certainly

David Langevin

I say, is time. think and is X.X%, long as two high very have the one which we nearer that row, Charles, margin a margin our been so quarters much EBITDA it has you a in much is near-term XX.X% the -- a gross in is the

couple we So that got gives there. but us still of some points hope a

a that's So still challenge.

trying the couple world. challenging, in environment it know of stuff us guess So -- kinds to But ahead quarters in all the that's of of to we thrown would you as that keep we’re we a is the both also around if places near cost them. so line stay from of I on next term cross the at have be great in

Operator

global. Shlisky And will Seaport be Mike next with

Mike Shlisky

or a you possible question on is next last it may be margin XXXX? XX% to get on there your year EBITDA goal, Back basis full year can that to

David Langevin

know that you models show models are our but as Certainly models.

and have is to the you Steve and that. committed to entire So executive organization

Mike Shlisky

And get the sense as well. just top-line to a for

to Now, foreseeable a this the year going that the you’ve each since the last for for future? year Is been ratchet case year. quarter little it's saying up and throughout still

Steve Kiefer

holidays there’s for August so and there aware on in Europe typically forth. number the extended you're slowdown third particular, a as -- go of as the a quarter of So in in Mike, countries

results for then revenue flattish the be So I some third quarter for the would margin quarter. of gross fourth the in our that in pickup and expect anticipate quarter modest and will I second total type

Mike Shlisky

it. got Okay

Steve Kiefer

in aware normal you're that’s seasonality of that And that we business. that, our see

Mike Shlisky

sense. I got That makes Sure, it.

Operator

we from Instructions]. question [Operator go And will and take John next a investor. ahead Serafini, private

Unidentified Analyst

on a quarter. Congratulations gentlemen. great Hello, Yes.

we’re As for cycles through stride. clearly and the you folks down here. upcycle an a gaining many you are really it's of lot quarters been I've up these And to of wonderful know on years that going and in and hear

again, light tensions getting of price had any So you question are problem a through? of we or specific is, I in headwinds materials, there steel going is congratulations. One other trade are from raw or especially the

Steve Kiefer

an based earlier that in Absolutely, to X% our margin dynamics. goods headwind want me want sold, as different what you and in in or about offset to And we mention been in going did or? the expand we’re business our price second a seeing or now component Dave certainly of raw how Overall, closely. a gross increase. our maintained are forward, probably that our increase, and has seeing we've been course is gross we do X% one, aggregate speak you quarter. announced for -- a the did Yes, margin we're material take we -- we’re expect so right the that of the managing for on the business of probably cost that material seeing do managing year to to maintain We we've

is to go But the that are working to and industrial inflationary marketplace. been pursue suppliers a we've displacing discounts our and long the of at inflation offset suppliers us, as experienced that different defer everyone those as some level at how high supplier as our way We've we has the to pressures. near to part different the quarter marketplace been to in disseminating the most responsible is, gross -- to the our maintained second again, But we it on paid way the the we high lot to goes we've to manage through been a the tariffs and hard appreciate to and in extent that material way. what obviously lastly, ongoing the as from of a effectively. term you our look as is of possible and in -- And come have basis, managing that's it look possible maintain some but So there this and do, most expect most of we level forward surcharges work headwinds or there's are to that the cost things expand can at some a teams process. management margins into

Operator

does conference And conclude period. Dave will I that question-and-answer to over back the turn now CEO. Langevin, the

David Langevin

Thank interest for Manitex. Thank you, you Justin. look everyone We And future thank your in to again. forward you calls.

Operator

thank conclude participation. do for today's conference. you thank does We your Well, you. That

Manitex International (MNTX) 11 Aug 182018 Q2 Earnings call transcript