MNTX - Earnings call transcript Q1 2019 | Manitex International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

First Quarter 2019 Results Conference. Today's call is being recorded. [Operator Instructions] Now I'd like to hand the call over to Mr. Dave Langevin. sir. ahead, go Please

Dave Langevin

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

Laura Officer; On is the our until for well website Operating replay release Please be available this Steve today Senior XXXX. as as instructions Kiefer, our or May and call President and see with CFO. Yu, our me call, for will VP our Chief XX, which

we this ask statement slide first also regarding will brief Safe quarter Please that by the financial you SEC questions. to We review being operating Risk Factors #X. our will guidance refer now please present turn to followed our company. to associated which afternoon Now filed this summary, further well with call today’s first welcome a our overview. on within and and with begin many reported expectations. Harbor refer Slide any our for our statement. filings commentary Laura results will an with We financials after from a I the Steve,

Europe in throughout XXXX will activity several new allow fortunately stated year-end up released we our pick Europe. orders production. the significant which especially fourth when the quarter saw beginning pickup we of we weeks were both But America ago in slow, As and year, results, North in order the us to

earnings higher second year-over-year, continued quarters higher order had production on this see steps in benefits and the numerous were allow we the the production taken The sales and with impact noble improvement of to a have should from we’ve on side that third expand year and quarterly well. gross that modestly as solid our in sales While pattern us backlog our cost for continued financials. another we continued in which of structure margin, experience year expansion when operating Consequently as result as believe earnings year-over-year bottom our products, compared per to cost plans and growth share in all line overall that will EBITDA, for XXXX. growth well we in improvement in should pricing with

our today report of more did basis Further, over $X consistent EBITDA in reported to in in improvement sales, points, our a operating is we modest suppliers, component excess in our continue are the significant in with years, these a environment increased evidenced we cost in and reduction income. kept gross culture. a have reported business our a operate real XXX our the SG&A we in pruning a XX%. reduction our is credit improvement dollars, we results. repeatedly And While importantly, check we and stated our done increases costs largely material XX% to over we With of and net million maintaining to have over structure. a increase will cost improvement as cost programs as profits which quarter-by-quarter. of do in organizational In lean a consistently priority margin by regard an by improvement approach where we’ve This

production our demand cash increased increase which all we anticipation quarter. which the -- the a quarter in plan in Moving in inventory on, first first and of we our use all of the in increasing and quarters, small second third in resulted to of

see improvements near-term, our over with expect over quarters. two the we the However, sales to position in next cash grow

our ratios. our in debt where with comfortable aware, are now years last shareholders to our are we of we debt made position several balance the sheet many to over EBITDA have and As vast improvements net our quite

this like and would it deliver stakeholders. over other provide realize in Laura discussing our and we on this for comments, value opportunity Laura? these believe With year consistently objective excellent and increase and results I increase we Steve can, overall should improvements finish shareholders report which sales for financial is metrics. If to and over will in a operations. major goals result Our then we our solid turn with to to those to an XXXX brief can

Laura Yu

today. the afternoon. Good for call Dave. Thanks, Thanks joining

direct -- operating the Slide basis, $XX.X mast to million. points last QX weaker results. continued year, gross as X, revenue your up basis increases costs. On unfavorable is the versus as in X% currency due at of quarter a at of quarter lower year. of up to was adjusted impact due by to attention currency margin team me $X.X increased year, well quarter a last of last book X%, compared impact was a XXX order same which basis points excluding was execution Revenue to the PM first in the offset partially primarily to the which million Let was sales, cranes year last managing the same straight XX.X%, margin revenue XX compared from result euro, Gross up by a fourth unfavorable was a quarter effective our

per or income million a share, a XXX higher last improved X.X% $X.X to was points representing or compared net $X.XX fourth to of quarter income first per same share of XX% million $X.XX the year. Adjusted was loss net improvement XXXX. $X.X the XXXX quarter by EBITDA the in or or $X.X $X.X a first quarter Our net million basis sales, of to share Adjusted compared quarter to of million $X.XX per a nearly compared $XXX,XXX loss year-ago.

spent inventory as XXXX. the debt to equipment slide Net Steve. a XXXX. Turning net performance, it Management to net to reduce capital purchase other take debt the continue by debt further control This and Net breakout and and to we With will debt cash update first activity. quarter. necessary quarter working primarily increased improve provides year, me let in actions this slightly QX in sales turn by prepare costs, that, of production for increased to Slide X, driven

Steve Kiefer

remain in revenue, expanding year adjusted as EBITDA you, solid the into our improvement with end Thank year Thanks call Overall, After to healthy second for backlog markets deliver and the quarters. as well and $XX of Laura. XXXX adjusted everyone XX% EPS third key today. closing global move our on us a versus our joining are million. businesses we to improving enter positioned to we results XXXX,

these of details, we to issues on an Regarding continue costs and on various costs tariff normalized throughout some actions update commercial on gross early total activity, level XXXX the deliver XXXX. into operational continued in and pleased to manner. margin offset results combined effectively see of reported of in and The cost XX%. discussed that freight and market supply Shifting our worked market the many marketplace that positive an to we the capacity, manage latter teams these appropriate part and improvement to impact surcharge, chain pass operational both to a to XXXX we're factors reduction metrics the the XXXX. We our diligently throughout over

the data product sources utilization internal show rental for within checks outside our with robust Our channel mobile offering. from continued fleet various cranes combined

Regarding our for of first would an intake the if represent line was X,XXX branded Manitex which, XXXX nearly straight units, realized, quarter XX% industry mast annualized shipment levels. cranes, over order growth

needs, drives quarters. we biased the In with healthy ton various our higher to of XX a customers weight pattern seeing continued classes XX% continue support orders Manitex. diversification classes, across general, the and positive fleet towards heavier expanding which orders weight of total their were the for XXXX third growth during team shipment their XXXX through seeing mix been Additionally, X,XXX replaced from year. the period number second being to levels steps volumes units the of The necessary Georgetown, prepare Texas and taking while an increasing over for industry has also the in when cranes per Manitex operational increased

expanding dollar and penetration our Regarding business, market element a multibillion multiyear in PM plans. this largest growth knuckle boom opportunity of our is of increased our key XXXX

market knuckle our to in low growth of approximately global base market million revenue. As crane each I from previously boom mentioned, $XX point of share the translates

pursuing is So this growth continued in with global again diligently. and network significant and one company for Europe. in The the of distribution added our in quarter opportunity our two two dealers North America we're strengthening a been first that

solid at XXth team the boom brand strong new and PM few America. of two North Valla cranes the displayed knuckle show, opportunities in North progressing cost Oil Manitex three cranes hydraulic line the boom celebrated of producer its in launch highlights in has new aerial first America to the in group cranes boom is mounted PM out excited the truck knuckle of leverage Bauma a anniversary. Additionally, the PM Manitex-branded from PM Bauma $X heritage was platforms. the A show for and three success as Munich, and PM trade April million participation a Group. orders, ahead. Europe ongoing of new growth many Italian construction Bauma knuckle & about We includes received a show early the The in We took years in we're the mounted entire Germany the and in new the for work PM place reduction. orders coming that trade new cranes Steel truck over of show

the currently a near military we $X.X announcements over pursuing move new anticipated group a this into opportunities military Additionally, customer customer. anticipate and for We're quarter PM orders the as $XXX,XXX of is annual the presently order million with follow-on in future. second processing additional from other

primarily our in to restructuring Steel of and & work annual within platform with $X.X savings related mounted severance the European reduction knuckle will quarter million truck be our boom current of second restructuring pertaining to activity million completed $X.X group, Oil crane cost businesses and Regarding costs aerial provide PM costs. over

our two will gains, and work, would is to line value and service, stakeholders. time we annual in Additionally, our customers, execution. Lisa, in session. this the to meet XXXX now shareholders, We're team Manitex discipline hard goals overall instructions our to session. today cost manufacturing the over open-up the first with you Dave, In other product to question-and-answer one-time footprint your interest and operational expansion the of development and review International with Manitex our ongoing in we consolidation your I our $XX,XXX. the hard executing growth, savings generating employees for facilities closing, could you please of primary revenue thank manufacturing consolidated for continued Laura margin a new quarter and solid Thank objective. you like in and reduction $XXX,XXX start increase entire and for customer begin and working

Operator

take Capital ROTH Matt Koranda, will our We from Instructions] question [Operator first Partners. Absolutely.

Matt Koranda

Good guys. Hi, afternoon.

Dave Langevin

Good afternoon, Matt.

Steve Kiefer

Matt. Hi,

Matt Koranda

the bookings to mid-XXs of of couple start in in sort looks range of you terms last wanted off a quarterly implied basis Just we It guys quarters. for stabilized the on number. bookings like with

So that looks healthy.

of take to couple get your a on softer. seasonality been I know the year. Just this last years, QX has curious seasonally bit

shaping wanted any more bit little get or positive? reason to this and to up that any out is that be turn year, it think your a on So differently would how is to thoughts there reason

Dave Langevin

business, the Matt. are Generally quarters year, typically quarters were fourth and of be Generally to way seasonality low. generally. -- our This third strongest going second it's speaking that quarter thanks, speaking, of sure because first the I’m because and our

have last good we we as quarter, First orders variable of over quarter. stabilized our we've that cost because course, integrated. coming got that -- still was fourth to But a quarter, we are increased not the mentioned, know, what were a reported course, falls so so was also -- in we you orders that now report company at of which into and then We've production have level. to -- vertically of -- have first you the into as in

times us. at We material bring are the in lead to have important to

quarter to result, do the better and and third so ramp is of what yet, and year quarter but not we're to second the So up, -- as is is is than expectations are first trying third trying do the second third what our course that quarter, the than a we’re second. this better booked

working what that’s So -- that’s we’re our for.

Matt Koranda

the gets comfortable higher of secondarily or that end cranes second be it question half, quarter-over-quarter PM further you we we is seemingly story where stick bit -- to Dave. that, we I Yes, rate the revenue picking to feel Europe a I to QX more in heart are guess terms backlog I it. of, of that by guess, of as run I more sort Got here? I need mentioned relying of a for guess, is relying on my do mean, the better up are and guess, in

Dave Langevin

we have we are our to have expansion. stay of Obviously we to long-term We solid -- a we near-term, that backlog. have in don’t more have because factor this PM But the story of the just so long-term, grow. be -- just background stay expectations a in we big as or range, growth

the lot nature of to limited of we can business, a we our products, to producing specific to in. the we side. can them produce and don't orders. mind because into build that more components on so it's orders So primarily that We we anticipate side obviously stock, specs some certainly hard of but because keep have we have especially build that can they standard to some to Manitex But are the PM

So huge than more again, need don’t have, really we what need consistency. numbers just we we

Matt Koranda

I before Yes, still it I understood. sticking just follow-on orders? replacing Tadano And on follow-on to orders back guess will in expectation what of terms expected as get and our in then in update had the you need that QX? forward-looking front their with that front, on is -- see QX order field the March, in any from they think

Dave Langevin

Yes, so that Matt. Very -- good thanks, question.

that’s quarter do it because certainly that way the on being order to finishing obviously everything a beginning fine then of just build As we make the as as again was discussed which last the works there. we up course, reported production and it, order, our want from today, within we are starter from expectations first described they which we sure

the Tadano that for shipped, aspect our company will in. of get Asia, its But and this a it open on And so and dealers customers was to so name that. last as to goes quarter which field, important to Asia happen most the it into number a and in the get that takes it it time on is on being reported -- to goes it, that we want

now study it's said coming last because analysis, which going obviously of very expectations but need As to time take on is all undertaken we nicely. and I together that that’s manage to quarter, and

-- So follow-up year. through expect we orders roll as I through some more we go as this would

Matt Koranda

showing looks and Then solid I’m me just anything be in improvement repeatable for to I copy if wouldn't deck, benefit a got forgive that in price year? product about a we it. it cost the to mean, build certainly it, remainder a performance a of mix year need of front, if to is in Okay, guys. out call is wasn’t in assuming pretty volume feel on I the margin terms And the obviously wasn’t pretty there the or QX we we but the in repeatable this you that healthy of the of do But get the were of for is but quarter. like the huge the able mix had bridge for you QX rest pretty

Dave Langevin

Yes. Thanks, Matt.

mix know, is As an you issue. always

into level are much the you chassis their very and cranes tonnage much Manitex chassis, consistent though crane, going it's crane a as this more you fact that have -- talked a doesn't they about as lower margins the at to they’re -- times you more that have side. the the are PM Our obviously attached at get value if to we’ve the number lower get vary over XXX,XXX -- into costs little in variable years, added of level and because as of a tonnage the

margins the compared much as compared a sales, opportunity and add an of chassis so gives has less more in percentage a the proportionate lower therefore, that -- to crane that increase of so margin. us And to $XXX,XXX crane to

continue. and margins, difficult where are will it's So that gross obviously, which the totally on be solid predict, for we the completely that our will the reported that but to our that’s good mix, first was Steve because quarter, expectations had expectations

Matt Koranda

the guess tweets. I estimates is on this be puts on sort incremental sort any of and puts would Basically through would And part quantifiable pressure the chain, latter sort year, Great. assumption pressure would your it whatever of of tariffs helpful. margins initial the be preliminary of the on thoughts just my timely how the but yesterday's supply that day your be question additional of given

Dave Langevin

for to All those what guess we don't reality, the of reason course, because, the is things negotiation are know don't drama because market which, again, stock what is they on hard is either. and the

steel certainly from of when was should reported tariff-related which have heavy but impact. past large. are Right see we all have year-ago, prices impact, seems increase as we the to under increase and that an we not it components components. a the we all and But importantly, wasn't this costs huge concentration -- as that We've we the are a said like all volatile. And reason first are impact was -- that coming control know, that, prices a we I the it an year-ago, still prices it as on component was we of So it just reported we that’s a don't big more materiality place and have -- had a subside environment is to over through went a standpoint, on shouldn't obviously, it countries, did so year. managing a where factor in started in our now,

together the a don't don't I doing to want know know, Steve, put that all that while one to when this I were analysis you question? are anything So, add we work the if you back.

Steve Kiefer

year. entered our plan, as actions backlog, I first increase, an be as there's minimal manage this and effect of did last last The I we that we mitigated the action if will and included year say, chain that And last were it today, and was if went anticipate be but second to through that we know, how will effect in components. tariffs just possible exiting half year would tariffs normalized, had -- not our as a as costs year. able possible quarter of don't the manage beginning might the for the overall, fully or in the normalized not, exemption -- as and just affect well were regarding mentioned we as fully supply this that any or Matt, all may year that We included were may fully

Matt Koranda

to chain the levels guess, -- is to Is say relatively the elevated the, then the that’s supply modestly more the that reason? with And it tightness out your efforts there? fair are associated I Okay. combat inventory

Dave Langevin

we have we the we to bring plans are. We lead are stated, -- we we have we in, know that the our can items those to time Matt, as knew have plans. longest production sure in realize to Well, know what order make ones

as in components. to saw to should for and our go the place and we that’s you are. what first reason you why And is come second started as production, the inventory in, quarter again, result up so the orders the hopefully our in a which And order the that’s, expectations for third in carrying -- quarter, again that higher of expect over started now

So, it's all related finished goods. to

Matt Koranda

That’s it. then more last And helpful. the on is of one Got restructuring. housekeeping a question

of I QX, your prepared million an you about we’ve that backing year? Is $XXX,XXX, in in what way $X.X come incremental in restructuring to about guess, in QX. a you remarks, in for I mentioned $XXX,XXX terms And spent, you the rest of total. a cash to -- expecting think the out it think fair probably

Dave Langevin

the And all restructuring both knuckles, very knuckles, know for is split mobile where tried are group way knuckles, cost your and work are from because the benefits a good have we now, the assessment a continue that. ongoing pruning second position where in is getting because -- so on long is awful as still an an the we want in the company We a emphasize times restructuring the have like company cranes, the the as know Yes, position we and it be a but to we where correct. we that will a and numerous we we and we of we’ve mentioned to quarter will [ph] in did we lot in know knuckles.

Matt Koranda

Perfect. there, I will it Thank you. leave guys.

Dave Langevin

for your Thanks Matt. question. you, Thank

Steve Kiefer

Thanks, Matt.

Operator

further everyone, to appear questions no time. this [Operator Instructions] at And there be

Dave Langevin

forward your future Thank for meetings. We interest you Lisa. look for in Thank you, Thank calls everyone future and very much. you to Manitex.

Operator

gentlemen, that all conference. and does thank your Ladies to like today’s for participation conclude We would you today.

may You now disconnect.

Manitex International (MNTX) 6 May 192019 Q1 Earnings call transcript