MNTX - Earnings call transcript Q1 2020 | Manitex International, Inc.

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Operator

Good day, everyone and welcome to the Manitex International Incorporated First Quarter 2020 Results Conference Call. Today's conference is being recorded.

And at this time, I'd like to turn the conference over to Steve Filipov, Chief Executive Officer of Manitex International. Please go ahead sir.

Steve Filipov

Thank you, Lorie, and good afternoon, ladies and gentlemen and thank you for your continued interest in Manitex International. safe listen and to is the everyone everyone to time our hope and appreciate healthy taking I call.

Yu, as Today we on website May this as for COO; instructions for see available until call, have me, VP Laura well for Steve Kiefer, a XX, CFO. the our President our call Please our Senior with which replay be and release and XXXX. will

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

we will begin welcome followed and results from your I quarter Steve an which with Laura will our financial will first operating a commentary of questions by present overview after summary

to are X. by going address effects it forward. like to turn update COVID-XX operations now our doing we on would slide and and start on I what to has the an providing pandemic Please the had

very been virus. have the no has by fortunate member and We affected been so far team

taking every necessary our safety, of well-being are protect to and team. health the step We

teams leadership and done excellent job, our continue to dealing healthy. Our develop new team to keep this uncertainty, ways with has and safe

leaders need a crisis direction been and and communicate is lead, During you what and continue to notice. to further provide will that doing have we do until

precautions health safety as And aware, We and still priority yet. there of you all are aren't and woods the out COVID is number out remain one.

appropriately their keep this the a and families of CDC, COVID-XX implemented regarding have employees Centers number our while time. Disease operating challenging the Prevention, to measures and been for facilities safe, We closely Control in monitoring and protective have our

continue to world's shop will provisions implement of changes to on spacing evolve guidance we'll our any our and the implement communicate health or and we conscious, appropriate as protocols they safety cleaning updates the floors. Following authorities,

ourselves and continues for sure more specifics been doing make to grow have to to Turning we position Manitex the around what recovery.

more network in networks us and new distribution industrial applications. to continues grow take to and markets Our rental utilities, construction,

cranes very diverse group of and Kiefer balanced boom pick-and-carry away more in trend but knuckle we've XX% and today. cranes a truck-mounted, zero-emission from our representation Our will aerials wise business Steve XX% energy. of from detailed markets big resulted have end end than serve markets in provide play less most importantly market seen a days breakdown, down picture back the shale energy to of a

sell well, process on we're shareholders specialized the We to that to for to with business the along focus transaction today. by year-end. core Sabre in We also interested is our moving parties several made complete this hope our is And good equipment. a order to that decision tank lifting talking

perform our the March to in into fourth in Italian helped for health well, safety to went an by work expectations The solidify to our shutdown effect achieved Even COVID-XX, to backlog Italy. mandated recover as and start that late PM we of our Group with very continues excellent COVID-XX up ahead ratio. with our well positive a book-to-bill was COVID to with until and contain regulations quarter, XXXX. And this

and running again are there. up Our plants back

this Laura quarter We and our have call. to Prior to in down paid which a $XX converts sheet a discuss pandemic outbreak, on will the further portion strong cash save liquidity in balance of expenses, interest we million. of the order on

as changes and this reviewed are or given order sure updates want backlog down a been close taking our issue provide has is million and to XX, on the uncertainty current quarter, every I $X PM our and As everyone very operations. estimated now these in make orders the missed and good any news March operations out is start Facilities the we our planning will a that process. timing we we through confirmed shipments, an look but shut QX we as close be to reassure of weekly first deliverable sales at QX, and

We market, a on the we to in demand. but did additional continue for adjusting our will to equipment, see focus quarter, the testament to we in or if need not which any is slowdown orders cancellations the see

actions We are taking our cost each production all the and scrutinizing forward. necessary reduce to every going and

shutdowns, as back back third PM, quarter. temporary in during have layoff our the up to ramp the second bring team We going – forward used as programs which flexibility we at ramp the us gives we and facility up

intake will we and only comment have Steve straight our cranes for with QX. reduced moment, build have As a mast in schedule in seen orders order we our in to what sluggishness have we build,

margins We in of our and headcount remainder profitability Georgetown have XXXX. our also for the started preserve to reducing

Finally, all PM very report of facilities back are and and running excited up at April we are the since that running XXX%. this to as week XX,

team to raise leadership noted during the we PM, am have the to work. not cash additional managed cash orders back our As any we earlier, of deliver we excited fund flow proud have and shutdown to tightly needed operation. get to to team as at I the is and PM's

have $XXX be Group Please the growth to start, results million well will deliver These PM perform consistently initiatives. X. and continued of and building COVID-XX. here. and slide a sales from is and is to margin good with Two run we a obviously turn in believe few expansion come changes a from solid different we consecutive starting rate quarter quarters to prior to The near

the team. a the strong key a of marketing we experienced, key market, continues our of newly talent here emergence initiatives leadership filling With engineering be in, our our we quality and handful arrival reenergized in the Managing brought that of our to know one customers, focused purchasing, team still our talent leaders in They have and strengthen September since now products. my addition further place. are and sales a of We to initiatives. and in and and some

strategy new delivered our place EBITDA in paying to adjusted to clearly, and X in to dealer business. this margin, number over player leader. boom We SG&A for cost with revenue the our had controlling keep Chile, are share an them forecast XX% with we and performance clearly line France, time, record a same the knuckle the in At able and The new in business our X number move were grow from XX% our and growth dividends. current

hold to leadership continue position the one Argentina. market We number in

steel marketing where excellent had to Simply oil said, in strategy working quarter business are. and an and going with aerials The France, market the sales our new we and are fish and Italy. is expansion fish Spain

in plan sales place aggressive we relaunch brand our put Lastly, to Valla an globally. have

our marketing in team now product and leveraging literature America. sales and are Manitex media distribution We have significantly improved our North social

Now discuss let operational highlights some over in to me it turn America. Steve North to further

Steve Kiefer

reiterate our words also keep the actions put from globe. Steve. I Steve force facilities COVID-XX, each forward on contend focus and the and remains around taking well-being the at of we've to you, like the to would which business acknowledging with and unprecedented Thank employees to of of safety the challenges in encouraging also a moving our harsh

and from needs. Thanks supporting sectors. serve those to the currently end diversification of markets, military our is utility, generated our most critical multi-year revenue and end XX% strategy, our markets with particular, government electrical telecom, approximately infrastructure, In infrastructure of an essential products of array

with supports gas, is our remaining generated revenue, other segments. The divided our global oil XX% and of rail evenly revenue revenue industry non-residential applications. residential the construction from between XX% of Another and that and the

Manitex a The ago prepared from have just sector. our stronger a markets transformation diversification years storm to This emerge energy we from end even in revenue COVID-XX potentially of from company. generated represents pandemic notable almost a and the today the our shift the XX% few when was weather

we our straight Regarding market with the mast Manitex of began flat the crane a year XXXX. versus business, expectation

And Manitex over which softened truck XX% is to the boom pleased of a great mast to products, service we line strong such the and as we and to see the space. our during Manitex market While securing a leader total, the industry quarter, dealer execution, orders strong product in straight remain testament were the industry network.

the checks network weekly continuing implemented a our into process of quarter. with with that distribution We the process channel during second quarter

significant are adequate based steps reduce we markets activity seeing they the ongoing dealers stocking taking critical levels serve. this levels at low larger their a to our to on good of reporting of reasonably number with in portion stocking be a are activity or quoting While time, dealers

increasingly hard in down. April, sales to were close much Although, while shut was of country the

straight our sales are to in XX% demand. May of customers to serve XX% dealers internal with see with openings a pleased for begun the taking crane have some team to and meetings Going phased the anticipating reduction their necessary actions are implementing forward, across market to we travel resumed and the market and this level the our production balance and country mast our Overall, place needs. have equipment

the by as This which North America in are headcount of crane straight branded Manitex reductions, activity $X.X crane articulating large line further announcements articulating offset MAC. to Some making crane production second of million the market to includes of the customer refer being mast we're are the due the growth increased international in shipments with and pursuing order anticipate months. we beginning military military for in quarter, a orders additional we coming a

with at show took Las products, implemented well the the In line Trade crane several new as CONEXPO key were and Show articulating Vegas. was the and introduce other trade early line nationwide introduced CONEXPO conducting to of dealers place able the meetings important we pleased April, in products Manitex' We're full while that quarantine MAC before customers. as

targeted control A several we stringent other applications, The and of for zero-emission and mast counterweight straight higher cranes exist. regulations straight included XX-ton and a more straight construction tractor on crane towards a mounted remote for lift road system by crane mast applications. industrial a compact CONEXPO removable targeted a X-ton highlighted capacity Valla a at applications country where weight parts semi XX-ton crane inside introduced products distribution the with XX-ton new crane towards mast a

Trade pleased from new $X As a well as million in Show, CONEXPO to the to these others. approximately orders generate as products follow-up we're

the variety engaging for zero-emission of construction began warehouse team dealer network North Valla sales maintenance opportunities a our of and Additionally, leverage applications. for cranes the to line and growth American

second the and reduction, our our meeting cost second top and and our through needs enter rest move year, are our priorities dealers, the and the a reducing maintaining focus of we the customers capital. liquidity As health maintaining on the of our working of measures, half sharp quarter safety

in with was year quarter inventory improvement, second capital America. million this inventory approximately mainly Regarding the military summer increase an articulated associated remaining versus working The inventory end began of crane support of Approximately our with order backlog one-third and quarter in $X the associated North we industrial increase two-thirds activity. spring and shipment new cranes. is our seasonal for first with to build

priorities of Manitex and recovery. conditions coming execution market confident we're difficult these for us will aggregate, economic strongly perform these top the successfully enable In position to for

of discussion detailed Now financials. let more the me turn for over to Laura Laura? it a

Laura Yu

Thank Thanks Steve. everyone. call today. joining Good afternoon our you for

and results. to and QX move us update operations. slide Let's X, from X financial continuing operating Results showing

the of due outbreak our the North crane revenues Also the million, COVID-XX. quarter shutdown loss and to XXXX. facilities machinery primarily a was attributable units Our in in our for decrease X.X% the softness decline fourth The from of in quarter have driven of Italy PM by were to sales by $XX.X crane fourth market $X was sales the decrease million experiencing lower the to America. of driven with revenue we been business compared

euro caused the Looking the quarter This to to was by of the Part compared total impact total the of of year-over-year X.X% weaker XX.X% in unfavorable currency first at the a decline decrease. for the by quarter accounted a due from revenue U.S. revenue dollar. sales revenue the XXXX. against basis, declined

we book-to-bill cranes. with the to mast line bring straight production taken as order for in the have with intake quarter our Steve And X.XX was actions which in Our slowness order the noted, rates. our ratio has slower reflects

million $XX as the XX% was year-end. to XXst, March which XXXX backlog Our compared declined of

XX% by the cranes or U.S. which with mast in increased partially encouraging. proportion decline However and year end PM, to the straight offset the of compared from the business PM our The to in backlog is represents backlog the largest $X orders was million increase

from operational margin quarter compared compared XXXX to basis Gross quarter prior XX%, in by higher XXX favorable chain mix. revenue and XX.X% to the reduction efficiency initiatives gross up fourth was in the cost margin supply to sales decline XX.X% quarter. and was achieved margin Adjusted compared prior notwithstanding was the driven value-add the improvement points the was

$X.X Our earnings share. XXXX was per first or net income $X.XX adjusted quarter million

percentage EBITDA a EBITDA by sales. $X.X Adjusted by or the of quarter as million of was driven EBITDA X.X% improved XX fourth points from improved was The margin. primarily sales Adjusted gross higher XXXX. basis adjusted

decreased quarter prior Adjusted the for compared quarter. SG&A expense to the charges excluding slightly non-recurring

non-cash million $X.X intangible a assets. included also of goodwill related results charge XXXX to quarter first The impairment and the

and capitalization impact liquidity of assets. non-cash a the company's value had or and the market flow our charge This the is effect of on best explained underlying reflect and COVID-XX to This a certain pandemic current expected long-term adjustment as position. accounting was required cash the no

As million. our we for that team the customers, by million the million to more action softness members, market costs of expect to in a persist and took would result $X.X suppliers, $X to production a our of which year annualize at least for facilities We pretax to million the challenges months. $X reduce $X and to the remainder few

actions lower other incentive and discretionary spending. project costs, management furlough, compensation reduction salary limiting reductions cost travel, These include expense, reducing

end At was cash company available million debt slide at Net million to flat quarter million the $XX first including Moving the the approximately quarter, XXXX. XXXX. QX to seven, cash liquidity net $XX equivalents. debt end of of and had compared $XX update end of year for

credit U.S. to availability revolving September with $X extend was maturity last the outstanding to in March to pay $XX.X down XXst, the facility date at was XXXX. loan amended the in the million convertible XXXX XXth, used $XX of the balance which was million increase and Our The revolver notes. million to year July commitment

early Under from several revolver. made opt LIBOR save the million when carry the at drawn a a rate. X.X% payments the spread company agreement, plus interest pay only The furlough payment current company which on in a can This to principal total the expense. annual rate interest to made interest bank was on note

the The million LIBOR will company XXth December of on Xth, mature company's $X.X and XXX on The excess points based XXXX. is spread availability. has mature which will two current the convertible remaining over basis notes revolver January million this $X on year

debt this a million term related of We year. annual the end Italian to to $X required are also the repayment make at

meet Management its the is over will months. XX obligations confident that the company next

with XXth, Program as We and all of and a debt from are its On to we covenants. CARES now subsidiary received expect Protection company Act. U.S. April full the loan million Paycheck maintain compliance $X.X XXXX, part the the

In accordance the they performance control are cash the management, a will as costs. for debt PPP strong primarily of the qualifying with company costs, adjusted the forgiven will use certain in from CARES be of of requirements the loans payroll continue focus to PPP if the described used or terms loan, the Under proceeds PPP, PPP, may improve working the capital inventory and for flow expenses act. with Management on EBITDA. reduction, amounts

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

Steve Filipov

to is and is Thank And leadership hour. the safety you, eight. In our Please leading today's and by the the of not turn maintaining the dedicated our and summary, to Steve by Laura. changing highest if standards team. slide environment wellness team day

reopen. as of we're that hopeful up running start our markets We in are global we're facilities XXX% to trend excited this continues and and and economies

continue schedules markets, the with suppliers to but By we costs. team will and we necessary We a We do profitability this control time. to any production the not shutdowns conserve cash for and the maintain have working our control closely our our takes our cannot can plans our course. members, customers, pandemic challenging unless current actions different through and further take end

better few clarity As we for we order we on called months. in savings the close looking for more have to be intake Laura get $X out million and in will remarks, XXXX as identified of our next her

the the with continue The and we foundations have opportunity products. provide us sheet portfolio and been drive continue position implemented With access which every and to loyal future and customers. at period. in growth this customers towards innovative best probably will have is Manitex for the share to with through strong to cost look diversification continue and scrutinize remain our we weather We'll us very the solid and liquidity balance we this solid end will in brands, years, cash new many help to new markets conserve with to

augmented process our in geographic leadership that shown strategy can the challenging brand we and We we our can PM-Tadano. have PM, perform to focused improved profitability with in MAC taken and improvements, strong have actions put place, and three by leveraging deliver operational diversification that team PM markets a even business

on Let be proud months of team. cultural six very change. I'm part me Manitex finish as to a with a of the the After Manitex, comment CEO

are passionate the We and have an entrepreneurial engaged process be we and management. The in team change changing our cash are culture. spirit of going around and safety this to fundamentals around

leadership. and process with starts Safety

pandemic leading our The We of taking done current an to our This have the and but COVID-XX team is just about job protecting started time all journey has in success. on crisis this and in team uncertainty. excellent management situation. a critical

all simple efficient to what making and business. debate, say. drive discuss, We sure was every and flow pretty simple, necessary for manage cash if in each -- keep the and Cash change working be actions another importantly, show about opportunity but most management our decide can our to things your we is to keeping take us we to The going we Entrepreneurship environment control of our is own. do and capital need is cost every as targets. overachieve it

on. and QX cash from is opportunity build the the entire QX to Our is inventory in QX which team focused generate

Operator? I start ask the session there for operator time please and will attention your the today and thank of to now stop and Q&A the you call.

Operator

& [Operator our Instructions] question We'll you. Thank Company. from Mike Shlisky take first with Dougherty

Mike Shlisky

Good afternoon guys.

Steve Filipov

afternoon, Good Mike.

Steve Kiefer

afternoon. Good

Laura Yu

Hi.

Mike Shlisky

Yes. Thank you.

start to couple So I of with wanted clarifications. a off

First, PM. on you mentioned

year? were is top did term Did or track of before, deal that that that Is like say for globally. on you long looking It you And Before million that hear the you $XXX the a sounds above were more correctly? COVID at of saying forecast? also year. line XX% big you I crisis became were a for what margins this

Steve Filipov

Mike. Yes. No,

the question. for yes So thanks

$XXX I to around we a business. deliver revenue But in very ahead good on year First of months were think the the of us track million as blowing which were Obviously, first of since the helped two changed yes, say and quarter. of plan, shutdown. going the in that's I get the we well and all

business work a EBITDA, EBITDA and is going and north was for of But through did QX my That's proven the that we did XX% we're going the for I that. As deliver XX% pandemic change. with have obviously XX% to in that QX. quarters of now today think think point to margins. above And we in to I couple XX% deal we'll can

the earlier. up small is as is, little that started I been news But really a out we military good up this we XX deliver the very April I bit had week, show didn't employment we've that have a base clearly, Italy, because allowed of to operations XXX%. think back us some start to But up of orders work. with on the we team government and on total And up one for member think crew, in

that's get run So to we're rate. to take we're back that back starting get some to excited up, really time and really ramped going to but obviously

hopefully that question. So your answers

Mike Shlisky

Sure.

mean, was just $XXX catch it chance could six really lost for though. very it get close you at neighborhood or have that the happen the little. million up? weeks follow-up where to to affected Is can't production you Just point? Is going it you very of this year, a sounds much like that I to not is or there in no

Steve Filipov

to and shut was up a I I think is slow a little everything mean too month I that. running for it's been Obviously, the say Yes. order April because week. intake of said, down. we've Mike, fairly early Right now like

to going We're better can't as get we're XX%, doing plans XX%, minus answer XX%, So minus we scenarios revenue. I visibility question. that have around minus to May. start really to those in pull ready XX% then And minus

is of you European of the think think both the going. this is and the of May figure should U.S. to month we I need kind business all And about way business where out this the

the that it and we're going mentioned to me we missed $X with tough shutdown. and off And we'll million that's But see. because of So how it's we're far the for why basically was week to team tracking Steve really the you tell be. every I

So keep early us, tell. for if news but really good too going, things a that's little to it's

Mike Shlisky

it Okay. Fair have you mast to the side side. enough. over far secured orders mentioned Kiefer the you turning had Steve straight year-to-date, so year. XX% was share Do range think the a just the Perhaps of that gain? down a other you you outperforming the give you overall I some can XX% were was But us point. past sense here? in market at that the in think a you're to

Steve Kiefer

in XX%. our -- of quarter Mike first share orders The over were the the

As under of XX%. you little know a the finished year our some we conversations, from last year

that's diversification introduced products So seeing increased the we've share over by strategy. we about XX% And past the driven years, the are the a from several past lot past over to and several that XX% some the the gains. years, share we've over been And five years. market really new

Mike Shlisky

going And heavier maybe PM which theme cranes, on you been XXXX? margins? the too? so larger could other you for to held the confirm Has And far of that in both a side, is trend have trend Steve, that I of has higher there guess, usually

Steve Kiefer

Yes.

the side, it's is beneficial. performing received introduced mast crane the XX-ton mast For straight which has straight absolutely well. and crane, well We been Mike,

a parts more weight flexible has have counterweight also which attractive for that it makes stringent XX-ton very version our CONEXPO more We system, of a and at of regulations. country that removable introduced new crane road the

the couple very focused the introductions, capacity XX-ton, of portion the cranes is the line, with time best-in-class out market years, having new segment. going some products over in of this higher we most forward. as towards the some of COVID dividends to So with disruption. lot on trend which the that you like and focusing recent product well the product and But the a and cranes some capacity now us the XX-ton spent round on at paying of recall, as past as for lower We're new of Mike, of going time

Mike Shlisky

PM the a trend? is side, on And there Okay. similar

Steve Kiefer

where of the in meter we're market the our have is mid XX-ton I is kind strong -- about range that mean, market up Mike, the we is, say, basically, I'd where range. is, then, meter. right? products. And to XXX-ton So which obviously, we're We're smaller

But the I'd those also say, are, larger products. We volume. lower have much

So the of and of doing we're kind it we're at core well.

the year-over-year France portfolio. we're XX% as a executing type an that is growth testament, think example, because, product I in on to of

team really North to doing in get doing good to capacity a MAC XX-ton and job the job, into think range, America, there. is that range meter pretty that I a good XX-ton

I So, the at that saying to from that positive what no, CONEXPO think, and was product. the to And products to on definitely really go with Steve going the back sides. really capacity, launched both with I'm to straight mast gains confident new XX-ton-and-up side, see we're we've share continue

Mike Shlisky

haven't I wanted I to quite some time. heard name Great. because on touch in that Also, Valla,

So more just probably there. just you've of some sounds kind it's out. new It got like starting programs

more tailwind out think you for in do to pretty if calendar could be you is XXXX strong year, economic year a question? Valla some a there's close could So maybe half here, kind you of comment, that the normalcy of of the back the or

Steve Kiefer

Yes.

time I think for Valla. -- of I question, a have the again, Mike. lot mean I really for thanks

a going zero We it's is product. it think, emission. I in fleet. use our It's Everybody green. rental really great

I think, and small I community, benefit a of fleet great rental plan their here delivers see fleet. to to machinery. we think the lot have It as a rental this into expand return. putting them they're going a crane marketing into We And

market. specialized small a it's But

margins, good volume. it's but high not got it's So

our they've down in at quite tell completely affected COVID Italy. I'd facility by weeks. just started. been a bit is, you what shut So They six we for Obviously, were

there -- we've product. good So with a say, got a good that order I'd backlog

this think. So then launch of American off I takes it North into think would kind XXXX, more I of with probably and as thing as QX,

Mike Shlisky

more in my wanted here ask All bunch chain. also to supply of first two right. I I just left questions. got the about

are have as you're As or able in kept in you dealing to the going Italy, been brought America, back there any North keep currently your that lines suppliers production with? issues you've production open,

Steve Kiefer

of we factory good. Mike, Romania that or our example, in weldments, give all weldments Europe, would most basically boom create of a in So knuckle we say, at you to be far so buffer facility produces ready decided to I'll least a a that open on our an small we have of I'd the for that product. keep shift so to And weldments, restart.

was a good team. the So by that decision

pretty first over running now been now, in say, shortages we good. from And said week North right And time, going, right any that as the suppliers. change But been seen we time. America, haven't major whole but I'd we've any could it's

So been on supply of And side. there's said, -- not pulling really we any bit. like of shortages little kind chain a we're back the

we're suppliers closely the on working that side. So with

Mike Shlisky

some Laura, mentioned And Great. had cost you then savings.

said these you have try you how get like along on permanent you thing? $X $X color I first the that a think Can cuts you done temporary the as just quarter, like -- is you just also is million. us in right-size and PM just is are elsewhere, much it give the to any million this cost some Did And it is year? rest more -- basis? those on very Are a of there or of annualized? or all of not that for the

Steve Kiefer

Yes.

the would to outlook seeing kind today kind we're answer said as trend Laura planning that details. I that a So that's of think, that's and of Mike, line could of ask revenue minus say, our with doing. we're current scenario that XX% in that I I'll that's But And part more I change.

Europe, have what new complete is far, We've say. really layoff And I that's But that mainly helped locations. hires. shutdown. North stopped us would during in any we the we our reduced temporary programs all so America, staffs temporary basically

take action So in now Europe. we we're taking a need look any to at and the further if then ramp-up

through some to that's Mike want if America. really So walk North the But you Laura details? of

Laura Yu

we America, if North QX mainly the too. from also answer but it's your It's so remainder the savings bit more. PM of And, year, and question Mike, annualize, Yes. to little for have a cost from we

it's PM, some are initiatives -- of similar. For the

cost. out are We are savings team. of travel some to some We can. the T&E. hires to we if project pushing the on in savings try year. of rein for also We some new There's projects the on the the entire try There push later to next

Steve Kiefer

a avoidance of some going also it's actually side and mix one then down. cost So that's on there's Mike headcount

Mike Shlisky

the hope it. the back Appreciate I in all That’s Great. queue. have. questions I’ll

Steve Kiefer

Thank you, Mike.

Operator

do [Operator We have Instructions] a Mike follow-up from Shlisky.

Mike Shlisky

think one one right it more. no you've orders. today. there got I only you other opportunities launched can $X.X in ask said I you when certainly was couple I were it a had you you you wants – I QX the And for think going on million think mentioned $X.X that sounds back question million the like military If here it so else a All was ask to first said

Steve Filipov

Yes million. $X.X

Some that the with I the to add-on that so Mike say to order. project orders additional orders was parts occurred way. that Mike had. would on potential But One that along the Steve some comments the additional changes a associated military

that had also may come. that another We add-on PM in boom for for have initial knuckle we an order

we've trying just uses. that aggressive we're with product military proven to be those out any we've for there adapt because And contracts we defense can a got that

remember And up business. if calls this had you on I for the team one of mean order it's I the we'll military So my think good conference see. base first signed a already

actually good to the in got we're in we booms can environment Georgetown. North a this have that down us is the in and straight And knuckle I America seeing products for think stabilize where growth to in this we've take sure facility to business make mast

rebalance job doing I that. the And kind really of a team is to good think

that's us. on back not I well be nice think done half for that's it. the of in year could us another for opportunity still the working – yet but So it And out working

Mike Shlisky

globally? Asia with us progress on either there the partnership Okay. Got or going how Any in you it. Could update also Tadano? with it's interesting

Steve Filipov

Mike. Sure Yes. The operational team, shipped. good. both we I and in PM time had, relationship of with a initial teams I the really Yes. been Middle Obviously Tadano. lot our would announced been Tadano has the spending QX say that on East actually at we the order for sides is mean big,

that $XXX,XXX somewhere in I had from think order new for about So we East. dealer Middle the Tadano there a for around

us do help a Tadano working branching quality Tadano say the and I would positive. a really the also is of They great the that And has to on in we're on our that's we together into also great out Steve's North So a team other job brand. organization. that know places also within America, quality all with side. kind partnership with team

our can at in American looking improve North we're us So quality help Tadano products. even how

I team think job a good done Steve's with the So there.

So East that's order now. and right been for I that shut quarter Tadano where we then are Middle now we we've distribution in mean basically the down. shipped

team are ramped relationship of we're with all our there. that kind up So getting with green but lights

Mike Shlisky

revolver one down converts debt due The the took you to Okay. for did quarter December torture also almost you some pay got the I I plan, appreciate here. well. some different you. here January know Maybe pieces two game of last as with one coming on in you've but that going you and up last

have revolver the it's you elsewhere on get Now inventory kind plans and do then revolver? can rest your from some – you option, the give use we Are that first when fourth down lower cost like us your like for help quarter is or game to to debt to your or generate but cash default of of plan you the and Sabre pay from quarter?

Steve Filipov

Yes.

So the why going cash. with it? reason do what mean the Laura – the talk I back and we're to view don't But did to delta. I'll our could Laura it about basis come talk to kind then about Mike I'm strategic you we why going of of

Laura Yu

Yes.

the million. convertible So revolver Mike but paid $X notes down we we borrowed $X million the from by

down to operation the based we X.X% from significant. revolver debt. have total, generated now. difference X.X% agreement note And to X.X%. million The convertible right is around the basis LIBOR $X convertible XXX is pretty is interest on points there's over the the The So pay

pandemic, a to us. is We back we stopped large this conserve the were in before COVID-XX – were for savings more to pay we but prepayments try we because making the COVID-XX So February. going down cash,

Steve Filipov

yes. Yes,

$X right and now -- that's cash bit keep -- a But, I'd QX about your and we're mean then million generate talked little everyone. in side, it's on we for need Mike the QX. powder inventory yeah, I mode we mean, strategic I So more dry to of say, going visibility. that to obviously, get

not we that for cash that's additional So building mentioned we're stock.

ground inventory hold it. to going our reduce on and we're So

COVID deal debt. do the that we'll early pay is, keep if decision in what haven't that, to where a to we'll you do some be to see is our obviously, we're down with made the that that continues, we got we're said to then can -- we And continue of yet. cash as we've dry. make then liquidity we down up. we that converts but the able said want sure converts But and we'll that that. to end powder position going Sabre to if do And But, pay our We've

I to QX, obviously, work then, the deal that use then we'll look see work decision the what looks and thoughtful. operations Sabre really QX QX. and that at make need like see we think through maximize in how And like, cash that through

Mike Shlisky

appreciate I Thanks act And this much. Okay. so as usual.

Steve Filipov

you, Mike. Thank

Laura Yu

Mike. you, Thank

Operator

the At to call any That session. time, back does conclude I'll over for Filipov question-and-answer our Steve closing this turn comments.

Steve Filipov

obviously, soon all Again very your you where healthy forward up be you Lorie. we company. everyone we are. time interest be but very look much, with very everyone. safe, the is, a Thank and excited appreciate and We're, else pandemic for to Please we're everyone Great. Manitex. catching Thank dealing in interest your as we with about in

you So appreciate very thank much. all We it.

Operator

does conference Thank Thank you call for participation. conclude you That everyone. your today. our for

lines. now may You your disconnect

Manitex International (MNTX) 9 May 202020 Q1 Earnings call transcript