MNTX - Earnings call transcript Q2 2019 | Manitex International, Inc.

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Operator

Good day, and welcome to the Manitex International Second Quarter 2019 Results Conference Call. Today’s conference is being recorded.

At this time, I would like to turn the conference over to Dave Langevin. Please go ahead.

Dave Langevin

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

with is Laura me President call the On today Operating VP CFO. as Senior and Steve Officer; well our as Yu, and Chief our Kiefer,

release Please replay this available August instructions be for XX. see will or which for website until our our call,

on Now statement. also you guidance that statement and many We refer for to our the review first filings regarding slide associated company. the refer factors ask please our harbor SEC to with safe risk this further our

present I financial from a will will begin brief with which, After followed overview. welcome commentary Laura operating will a by questions. we summary, Steve.

X. bookings in is volatile Please quarter of demand the straight has start compared good off quarter, with the cranes to second U.S. saw clear getting XXXX. environment of month quarter after in for sales the now last in Slide while the slowing X%, the of quarter our first that very the a been as turn first mast number the it In an to we increase in to

While up straight boom And at we orders for note are the July. in did up orders the to was mast approximately that of picked $XX our trucks, end market U.S. backlog long-term July. trends the in in uncertain million

backlog driven long-term the oriented important our It’s by our as this company becomes to point several out PM-type reasons. products, towards less a that becomes more is to company shareholders as for whole and

products. about cycle Manitex short the production cycle for as products for boom half mast the PM as are First, knuckle-type straight as

straight as boom consistently mast cranes, American dramatic is a which primarily multibillion-dollar North product as global market, cranes. market per with to stated are in are Second, the And $XXX to compared less million. our knuckle compared cyclicality U.S.-driven year for of it sales with mast market a a the approximately cranes straight we’ve also, knuckle

room compared market mast us market to in to share market. to a cranes, grow X% in significant more crane we the share market have knuckle in lot a the Further, giving straight knuckle X% a

We North all of America, in cranes are for China. excludes markets South and, and specifically course, seeing growth we Asia, us, in serve, which knuckle Europe the

consistently is large cranes. growth few specific than overall XX to for attributes profits. operating business real rates straight in comments for is the XX% our plus-XX% consistent range. execution higher our Overall, for much our in – us mast reduce about the knuckle the more are to the And The the report key for this SG&A the order knuckles of a knuckle business. business margins in Finally, us to the

made will structure To operating control top our at in that allow second – management end, managed the improvement should and in our cost operating our show take quarter. we operating profits. in over us PM the This to a change more new

today the quarter On end net sheet, million as quarter – million see the $XX reported balance $XX first in the to quarter. second did at our on of debt end we of solid the for the the second for reduction the from

will $XX.X of us reduction approximately make progress further by believe of to thereby this million by increase from debt did year, end the we allowing which year. flow year, inventory Our we the for on end rest of last the through this

our million expected which in balance holdings In the will closes, third sale is of sheet addition, ASV $X.X our transaction the when the in from the approximate quarter. proceeds strengthen further

expanded in offset our quarters, they margins range. schedules comments order today quarter. the few low-margin and regarding the lead accompanying noted chassis. our in sales. total we as chassis recent reported And to times sales long called inventory metric The receiving XX% impact as a component that chassis in of reported company-owned remain of release our show and we in this a A more We the value-add

As on the them the sell-off by cranes remaining you long chassis next mounting over excess would have these inventory will times sold we lead and several diminished, expect, quarters.

not Other price areas shareholders, component of increases, concerns – that us; are reduction tariffs, manage PM an which and the at our such which expenses, and we and of material continue for issue from up come price lastly, our are our as diminishing; to especially will operation.

dealers reported second the the containers completed Finally, shipping we two as we in today, first quarter. to Tadano

More the shipment widely the PM overemphasized Tadano is a advantage significant a for equipment is future brand, sales This our our cannot was be branding a under term, PM second made over in long with Label. This container very the as major Tadano Asian and in importantly, premier exciting accepted while gives in known our in breakthrough for shareholders. Asia market Tadano the in expanding markets. our a brand development the not. company opportunity our is for which and labeling us this

discussing With those and it opening comments, with to finish Steve operations. Laura Laura? would I like over turn to

Laura Yu

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

first as last market to for due results. to softness, euro, the weaker an which X, unfavorable attention period is the U.S. your to Revenue QX we same in which year, the versus direct X% due have the U.S. experiencing the straight primarily million me cranes as was a of operating this currency of compared dollar. X% Slide mast down increase the an quarter to year been declined well million, to $XX Let or which $X.X compared impact

year. sales, approximately current mix million of XX.X% the from Revenue pass-through last quarter XXXX. of trucks with $X.X decreased chassis quarter by quarter was margins unfavorable last with compared same to to compared the XX.X% on the same the and primarily impact higher second low from X%, by currency quarter compared year the to margin the Gross of revenues excluding driven

of as Adjusted Dave our result costs. team which range, value-add in the XX% of margins, remains the earlier, mentioned execution a in continued effective was managing

ASV, the of our to from Our $X.XX by per sale share, $X.X resulting in Myanmar. or substantially announcement value increase income XXXX holdings of net which was in second ASV impacted quarter million was the the of pending

$X.X $X.X compared flat income flat share, or or first to Adjusted the of quarter Adjusted the the compared million first of also year was quarter year. per this million, X.X% $X.XX quarter of sales. net this EBITDA in to was

quarter $X.X which EBITDA, was second related costs included XXXX in second of to the The this and year trade related adjustment nonrecurring that $XXX,XXX to years. recorded severance quarter approximately PM, related three $XXX,XXX the million results show every to was and at Bauma takes place onetime

almost activities first $X Our a of year for cash the from compared the the million same improved to year operating by ago. period half

teams to position. Our looking conversion constantly second to focus the capital for improve working main our company’s cash inventory are The global improve half the ways for cycle. XXXX is reduce to of

$X.X performance, to breakout X, compared first This of Let’s Slide net slide Management take quarter. year. debt this QX debt lowest working debt actions continue years. rest move debt costs, of XXXX. of quarter for update decreased capital reduce management, level we and many control year the in to our other net $XX.X necessary by provides the the Net will the seen to million, improve especially to inventory have million to a further the by net

addition, to million further. receive is we debt will down the cash pay completed, In sale ASV our in approximately $X.X when of

With now call to will that, I the Steve. turn

Steve Kiefer

on everyone to thanks call us the and Laura, you, for Thank joining today.

various operational were X% continued and call, manage the our while that earnings surcharge, our prepare in quarter teams during costs taking teams increase understood versus production are Overall, tariff first quarter. capacity, effectively necessary delivering our reported supply the the to freight well to our shipment for a steps As marketplace chain issues levels. revenue increased first

as XX.X% our margin slightly flat input as and our costs our pass-through of chassis by in mentioned Laura, an increase production gross of truck and were to declining, facilities. was chassis, as to efficiencies of related production two adjusted at Dave impacted by While negatively deliveries well sales

and quarter, changes. in problem through efficient alleviated move third much more we we teams with seen chassis more this production deliveries manner the to schedule a responding and have As timely our of flexible

Shifting and on commercial activity. market to update an

we segments, we government over are Our checks, in revenue. offering. markets continued utility we that sector, decline fleet within XX% we various worldwide product where with channel generate from show for show a the approximately markets in mobile of strength utilization of stable where saw our the generate energy end internal participate data revenue. The crane overall worldwide construction, rental the And and outside sources, combined which XX%

quarter of XXXX. quarter to equipment an ratio straight book-to-bill X.XX new XXXX. our the year second annualized X,XXX of full level quarter, the of for is year to mast orders orders, similar from reduced which X.XX the the industry slightly approximately industry rate during units Regarding Full the achieved during we moderated during build of cranes level

look forward Construction the our this a of October. during launch Exposition crane early An the was quarter product unveiling welcome line public important in Series. mast XX-ton Utility the Kentucky development the in to new International and TCXXX of straight heavy-tonnage and cranes, we a Manitex at industry-leading branded crane is This for addition of to the Louisville,

Order patterns our as the for largest growth forward multibillion-dollar on in opportunity XXXX remained our increased a this cranes basis penetration is a multiyear stable company and quarter, element which of market is boom our important knuckle throughout expanding key of to plans.

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

for So again, pursuing a we’re company opportunity this our significant that and diligently. is growth one

Recent million a military customer includes order in $X from highlights PM securing a Asia. from

months. and PM’s expand additional military I our continues, over presence announcements coming efforts to global forward, Going the in the anticipate market

new dealers quarter. pleased plans, In market we’re during addition and network of and a the and remains add growth products new four distribution for to Manitex to part our growing lines PM segments, our critical new

consolidated opportunity Lastly, growing continued addition in growing important to structure. both revenue, we and realize current for management of shareholders. our and initiative, our reductions support top-line senior ongoing remains of during SG&A. company operating on in focused we’re cost In our this at quarter an our improvement PM margins the And to

and goals XXXX, markets, to and the development is various end our challenges and our agile expansion our responding of new growth, In margin closing, being product opportunities are objective. to executing meet primary revenue in

other shareholders, hard working to stakeholders. increase and our We’re for customers, value employees

entire and Manitex solid service, Thank hard work, to gains, your ongoing your customer time And continued you team interest in execution. discipline for for International. you and operational thank again today overall the Manitex

Dave, start Operator? would like open now and to Laura I and the question-and-answer our line session.

Operator

question Company. And with we’ll Shlisky Instructions] Dougherty Mike & our from take [Operator

Mike Shlisky

afternoon. Good guys. Hi,

Steve Kiefer

Hi, Mike.

Dave Langevin

Hi, Mike. here. day from Good

Mike Shlisky

Yes, well. thank you as

Dave Langevin

back. Welcome

Mike Shlisky

the to backlogs order you July in It’s the good into that to touch outlined. on Wanted back. patterns be first you. Thank

in orders throughout improved bit that through curious, were that say for went orders of you kind normally you the did things of a kind it? of I’m that maybe cadence there were kind how better quarter go that And of they kind July. – backlog You than as July? of any your is were

Dave Langevin

was in ended was up. and we backlog – quarter, our Obviously, the – second the we So We quarter strong. started XXs, good. first the quarter the

similar to in serve XXXX. hard we straight XXXX, year, to strong just And that it’s straight the America. a we what started PM so down, about so similar I’m to primarily North were and anticipating slow mast But mast market. the we the not also talking out is this much, in market market

North second primarily that slow was down So And to America, slow in June. it’s and quarter. it started again, the in particularly

But again pretty because got and July, shipped then order July. in picked good we nice pattern we it in up a

I in European So slow know have But we July. the to period practice. obviously accepted is August typically, we had – because the a better seem book-to-bill don’t

which this For weeks starting lot seems an period The of in it during down understandable. that will time, And two holiday taking we’ve example, like Europe there’s our week. accepted of awful in for and plant States, practice is shut next

that And a see North in And the occurs a a really the which good orders third quarter. see quarter. generally quarter. the in again, shape don’t pickup, standpoint we’re so plants production fourth we But we from the until American pickup expect for in in fourth will we again generally

Mike Shlisky

share Can you say also far share to knuckles? here? you Or Got or is either this so touch in just the gained straight year? on mast come still in Okay. it. trends this Would market maybe you

Dave Langevin

and Mike, on it’s know, that mast you flow on say have the mast. us we the have probably of get we this, the have our on steady holding straight better a a with don’t readings I very markets. handle mast, hard Straight everybody we knuckle I Steve, to on would know, side, the on our because provides we’re like industry information side. in all in good that very don’t source as information. straight you that

information to the So large, has that’s a us good but on not there we are on that, source so the to handle knuckle side. been have developed knuckles provide the

America, as North appears or I trend just it’s a have between South the said, mast a in little and good again, our consistent around but that Asia, order know to to world, little And in we seems I gauge, have I would Europe, America, – to market So our harder the but say the to it I the order market, idea? us course, around don’t U.S. and market straight – of continue volatile. any U.S. any there don’t you trend, a it changes in if material And share. to a been more have whereas of Steve, seem know

Steve Kiefer

we over shipment And year, continues standpoint, of of that XX%. market announced of level around last we’ve a recent data XX%. from market a Mike, our – share a little The high from Yes. approximately share year-to-date, some the seen, to hover record

Mike Shlisky

the as what they as your pass in And cranes color speaking far just any sourcing over some And us for structure Asia, going of think happen of cost that back you in can their anything in half expect parts as of to around us some shipments Okay. to there the to some you big give put the orders? some forward? to in addition, use about tell your might

Dave Langevin

Mike. Sure,

We’re still working on the last part.

working components. still putting reviews and for reviews together We’re cost on quality

not better I we think knows that developments forward will a componentry and I’m area. business there are we’re no some aware the cooperation go of of studying everyone Tadano getting there’s product. than any recent. Because in and of components the lot But that, that So in crane we as be

will to componentry. So big developments developed I – are to And going seeking hasn’t we’re access again, work that a think forward. with yet, there actively that be but to we them. their continuing way in But

On the $X that high last – had of years. go we done the we Asian sales into bar. had went out over million in had we few have didn’t very last a We year, million Asia. the market, If $XXX sales

Tadano’s $X that the represents even So put And we’ll that this that order in another shortly of announced dealer bar. going this We’ve we’re the our by containers order it military that Singapore or of some year. the order large to know end we first military. into network. another receive Singapore high that year was with multiplied basis, I wasn’t a agency receive another dealer million the we two because expect the On very from things quarter, Asian network. an I

– is Tadano from had to a in of but has the the their that. if don’t that’s So know my Do order have a don’t to did for true, the quality it, on And mention very because they remarks Todano. I you exciting allow products I product. the started. of penetration know had – Manitex brand I us, standpoint in know through maybe Manitex, PM not lot that Manitex checks any last Steve? other Manitex we which container don’t or review Manitex products, go

Steve Kiefer

it Yes, true. is

Dave Langevin

Okay.

is product, Manitex which own Manitex XXX% So Todano of, a they product.

Mike Shlisky

that. course, Great. talked one about great one on of attaches, of availability. brand Steve, a last Certainly, you having Perhaps that. certainly, from that about development chassis the me kind evaluation

Class are outlook. like truck the looking are truck sounds some – backlogs catching of their kind markets that on X up orders truck right decline now. and in of OEMs It Given of out are the of kind

Dave Langevin

That’s correct.

Mike Shlisky

then we’re for looking at some more freight out And there. market year, a the normalized Yes. truck given trends of next

or quite individual So individual Or the are of pieces think out have of – be right XXXX? between trucks are now? chance able of just you parts now to to you’ll beat and on end kind now there to issues that right certain just any there

Steve Kiefer

And you very managing have chassis. well past closely, overall. we the And know, we’ve in Yes. six particular. manage it tight in been quarters, Mike, very component-related been the to were The it experienced quarter related chassis second disruptions as over

are Production a quarter, quarter trucks. for experience my in truck chassis with disruption out now – the we the as level second now in alleviated some the buy the to from from factories turn the conversations of levels first shipping reoccurrence the high schedule. anticipate prepared might during at were, delays, in and we We particular, did dealers shared our don’t And which the at quarter. changes some remarks various factories. saw in of X what at the That’s Class some right third and very peak X Class I level, during we be

Dave Langevin

I of is I’ll would. my stated in said might couple add, we calls quarters we remarks, that in we reemphasize what of bought had a than Mike, more chassis I last result that previous as normally this issue,

wanted So customers, better our our them a if mount that they on to we chassis inventory had chassis. expanded to we our so offering

So the now this of diminishing of be it would problem. some reduction or

reduce units chassis that mounting actively our can our sold own so chassis well. are inventory our We we like as on

Mike Shlisky

part a half, it. back the not all just that’s inventory So for reduction Correct? the of of

Dave Langevin

that’s we’ve of bought chassis. was in of that second And inventory the of – will seen. that months. part of that and say flow A inventory, for months part the that’s Now increase our through the the yes, what increase that’s it part reason we saw of six six we first in part that’s the you

Mike Shlisky

will it Okay, guys. much. Thanks pass very appreciate I I it. along.

Dave Langevin

Mike. Thanks, you. Thank

Steve Kiefer

Thank you, Mike.

Operator

this And today’s session, this you and participation. your conference. for concludes Thank question-and-answer the concludes

You now may disconnect.

Manitex International (MNTX) 9 Aug 192019 Q2 Earnings call transcript