MNTX - Earnings call transcript Q2 2020 | Manitex International, Inc.

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Operator

Good day, everyone, and welcome to the Manitex International Second Quarter 2020 Results Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Steve Filipov, Chief Executive Officer of Manitex International. Please go ahead, sir.

Stoyan Filipov

Thank you, Lisa. gentlemen, International. you and interest your ladies Manitex in afternoon, and for thank continued Good everyone safe call. hope time I is to taking appreciate listen the everyone to our and healthy and have Today call COO; well CFO. Laura on as and our our VP with we as Senior the Yu, President Steve me, and Kiefer, be our XX, August XXXX. website Please replay for until see or our this available instructions for release call, which will

will harbor change statement, discuss begin we your Moving X. described which I you questions. with Steve, quarter, to our Slide filings from and we second to X with our that Laura begin on Please risk will now SEC will our welcome is let's financial a on our safe subject which business for guidance present the and is Slide in everything company. further by after commentary factors reminds update for followed operating many a short associated summary,

our update. in with clean shutdowns our global uncertainty protocols. the we it and about employees, their customers, products we testament and situation leader market significant significant customers. remain the had are our presents with to First, a protect we had making gas on our have health tested COVID-XX employees excellent a to the the launching planned our is by which I who market. in our believe with do markets a daily, new produce. facilities of to to and confident that we in done and is well-being maintaining changing focus number products specialized continuing remain the the continue from quarter clean of our teams by general The will vigilant will can making Thankfully, highlight diversifying call. to sure cyclical which the our become our to we develop to channels I have oil later safe, new protecting sure COVID-XX an on positive COVID-XX, families impact portfolio everything away we and and the have global opportunity portfolio and job we not a

we've That North global is straight anywhere over America. a consistently will known implemented starts said, products the can Our knuckle of for position as a category market we the of and into with growth boom for get mast leader, in new cranes XX% between turn. orders we for $X we which share where business North September we the truck decade of Boom throughout now to the market now, and strategy XX% to market billion, estimate in well shown knuckle a at develop fraction opportunity, that continued leader when growth The market have continue a American the this profitable and boom The articulated a is is is category distribution or gain Manitex this crane deliver global business over to growth booms. market to crane we and XXXX.

to statistics some that share we'll support and here, later traction gaining consistently statement are We on.

America mainly a new develop portfolio signed and strategy growth to several market. products relaunch zero-emission a marketing and quarter, Valla a to channels implemented great in Europe also new We electric dealers brand. in industrial have and grow new invested has new this crane we well-known campaign and to the to in Our new globally, potential up North

sheet. balance our to Turning

global market cash in quarters, to and We have from the dynamics the pandemic. on weather $XX million positioned to we few generating next in focus we with feel the to operations are opportunity current liquidity in continue well

million will for $XX deliver in discuss is more confident objective. priority in In detail, the due In debt of was continue we estimate million, impact our mentioned set we mainly to due reduced the close also in but another $X $X to revenues which on close this we Italy, shutdowns, weeks to to the the quarter and postponement the closures, first revenues. of will We quarter net to second million. we X in to COVID-XX of XXXX, this quarter, to Laura however, I'm ourselves,

margin Given the reduction current share the the shutdown of $X.XX EBITDA the approximately at negative PM, to quarter. per of a impact equates in

from two uncertainty global our capital. better managing to the in we consistently we do given delivered cash Now, in markets, Number $X.X delivered things QX, out working flow. our In cash set operations X, XXXX. million operating in by

we our we compensation business. track with and working can business in line consistent a and demand. our percentage capital crane QX, to working straight market North we a keep we're In down what our X, costs Manitex, control took will XXXX revenues process outlook Number headcount, our implemented at now forecasting new XX% decline control capital in be and monthly in improvement Boom in to American ratios. our also and our based XX% driving where team's We management on

We are now XX% in decline XX% to XXXX to the expect be further a seeing reduction. and

American in profitability quarter will to additional And the market million plan changing announced deliver have improve a I will enable we at conditions. Texas annualized this $X.X will operations, first to the an we to few our the Steve as additional restructuring details, discuss call, explained in but in significantly Georgetown, quarters. an over result, our us next adapt As scenarios most for our savings. developed which July, several facility, North

X. turn open COVID-XX. remain Argentina still to with occurrences facilities our and Slide Finally, being Chile increase the most geographies by of affected local in Please in

And continue quarter. a Our another we and performed team well. stable see with the PM Italy, to in very to well shutdown order perform a group by market in intake, X-week delivering businesses even challenging of continued profitable

was up everyone, million $XXX revenue, from track Just this profitable to remind to XXXX. deliver on to prior business in COVID-XX, XX% over

by needed our annualized million in only also and have service. R&D, in areas parts our in SG&A levels and replacing to actions and by purchasing costs We $X.X taken revenues growth our for headcount with reducing our keep line critical

this attests backlog and both different global serve and aerials utility knuckle to the markets up applications Our industrial boom construction. which waste is in the the in truck-mounted exposure and business end same versus has we in XX% in XXXX, cranes management, period

Our in our quarter please order in to North the demand, Steve, American were with and which executed cover will align businesses reductions, Steve market costs more challenged headcount detail. we go ahead. further in

Steve Kiefer

Thank Steve. you,

the both boom America Manitex safety prudently from of stands While XXX% of announced knuckle important America at in health facilities had driving for and that operate, which is Manitex Leveraging employees. Other under quarter fatalities. our of small in the first our overall each strong economic generating products crane. launch that of are we results with versus producing report America, a operating the North the and last of brand with the in businesses, and priority North handful execution with PM disciplined in key our our articulating positive to challenging beyond the in We in and each wellbeing maintained that was year. costs MAC quarter priorities we and increased all products new reducing compliance brand the no continuing during product only dealers operations, codes and that a safety work our We COVID-XX and have incidents approximately we are fortunate same and positive North cranes invest glad accountability. to customers. key during improvement, Sales included marketed and we towards previously cash quarter environment,

anticipate of and military third Additionally, we during previously quarter a we additional orders be specialized to year. the product this announced MAC of the customer placed began shipments quarter, products for this to during

Manitex the our over orders customer completed year support. Overall the weak to we remained our quarter industry order at plan the network Manitex versus industry the strong product structure. line, XX% mast restructuring shipments during we our quarter. been total their dealer headcount Annualized costs orders XX% are has and straight second quarter, demand, XX% branded on to by overall business, effects we to quarter demand, is reduce for during crane during to primarily $XXX,XXX. dealers' XXXX. the which driven includes Regarding which be customers' July. testament a Based and And lower a at Winona, cost secured XX% down total severance-related and of industry COVID-XX our and of plan end Georgetown, initiated activity, million, the Minnesota expect from orders on $X.X based than industry approximately less reductions our Texas facilities were these by by in reducing savings and the This the second

important points our want producing a of this restructuring $X.X cost our material savings non-headcount quarter other million. second take annualized total actions reduction, are annualized second savings address elements $X.X plan and moment to quarter X restructuring to cost I reductions The The of from restructuring. million. regarding comprises

our to for activity. our and did product reductions year, to second knuckle reductions last supporting headcount quarter limited sales strong were we sales as not MAC line for We the straight business. of see mast versus production First, our personnel up in headcount implement were crane here the the any SG&A XXX% North activities America boom MAC MAC and continue

conditions, mast Second, of business market align itself. of our the nothing to to has regarding and very structure straight changed business important, while fundamentals crane the the had cost we

products to is essential Our strategy, supporting well space, of infrastructure our and markets telecom, the currently and eventual straight is in utility, the end XX% those business positioned approximately military, for crane revenue infrastructure, of sectors. most needs. an and diversification Thanks electrical array it recovery. critical serve leader generated our our of this mast with economic markets, particular, is from the end In government multiyear

introduced industry of revenue rail in applications. we to generated and product segments. new XX-ton construction Furthermore, oil our of global straight downturn, product with plans. nonresidential new from being this is our the revenue in The XX% divided supports Another mast business and Show investment crane XX% remaining that evenly other continue well the and our at the XXXX we XXXX The ConExpo residential even and gas, revenue received and our April the in XX support are through between development models marketplace.

a measures, priorities our on and second maintaining customers focus our cost our the meeting through dealers, move to needs and and we reduction, our are the working liquidity year, of continuing flow sharp reducing operations, health As the safety positive the from half capital. our cash of top generate maintaining

Laura? Laura Now, let in detail. more financials discuss over it to me turn the to

Ruoru Yu

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

Let's move operating X operations. shown financial to update and results. are X. from Results continuing Slide and QX

$XX.X quarter the second Our were million, quarter XX.X% a to compared of revenues decline of XXXX. the for

call, and under As with and keeping our minimum the pandemic earnings the of associated planning outbreak was in challenges discussed last team given quarter for control COVID-XX loss. during a challenging our early human management XXXX

estimate at shutdown at million May year. have PM in the that even share $X for were market. we not, a would $XXX The remained by COVID-XX was intake in PM earnings to sales in the revenue We lockdown During due weeks quarter, order if track encouraging challenging COVID-XX estimated in And this exceed the markdowns to per the $X.XX. Italy. which of deferred and for to April our lowered approximately million, second PM on due X very from

North make certain our restructuring activities We And my some the continue softness later and Kiefer market with comments actions, order rate. quarter. experience cranes line we those the on on I in in to remarks. outlined costs less benefits bring will in in second undertaken in America fact, production and the to additional slower Steve X expected have

knuckle approximately MAC same was America a increased number, year's compared worth have last sales While noting small it quarter. crane North XXX% it's to that

be reporting to this remain are our tough global pursuing we stable articulating our say that market would demand cranes quarter, large remains for on fair focus highest priority. it While a and

efficiency. unabsorbed savings second unfavorable aged supply from declined goods year from PM was chain operational and the from found MAC. articulating mast sales, quarter. our margin increased offset to order of million same June attributable of lower which $XX we XXXX, was lower in down no low-margin slowness the gross offset at crane manufacturing the our backlog. the have of a or product backlog decline strength range the mix, Gross to year-over-year XX% cost from cranes PM finished margin represents in as The quarter in America, decremental Our lower The revenues XX.X% with the XX% costs, reduction margin gross partially was from approximately The which period generate This resulted business selling due second ago. the initiatives was by straight improvement and the mid-XX% to of the Also and cash the XX% value-add second margin North quarter. XX, reflects XXXX. to backlog year-over-year. intake fully in in margin XX.X% our and compared in the from in for over XX.X%, now in business Adjusted XX.X% was

per second XXXX million quarter, EBITDA year. was Our expense, gross by Adjusted quarter driven SG&A for compared loss, of million $X.XX was $X.X lower the Adjusted net loss the was first or loss quarter slight share. per to adjusted excluding charges decreased which primarily a by this $X.X nonrecurring margins.

our We resulted XXXX implemented Cost in in in line in cost to SG&A have XXXX to reduction year. QX level period taken our initiatives prior have compared action keep SG&A $X.X savings in recurring expense revenues. and the same million with

North has further necessary market to headwind to preserve we equipment As boom to our American costs to our management reduce team a expect business, mast remain margins. straight taken actions

believe the expect our and gross these include with other million. Total annualized will us in savings we in business $XX XXXX. starting savings material headcount along restructuring restructuring deliver costs back reduction to taken of deliver additional the bring We and cost $X.X are level in that North actions crane million second restructuring even SG&A initiatives related the plan, Additional and actions margin will we than to reduce July and in expected be reduction and reductions, expense America $XXX,XXX. less further. the will cost to annualized estimated new XXXX, allow historical and have The cost of XXXX reductions in quarter implemented

X of inventory. the better available million, the aggressively with and end, prior was used million. million building QX a The end production occurring company especially cash the XXXX. company outstanding the savings, million notes reduction Moving At including payments manage revolver convertible working January the million to we have debt prior December cash cash not generated second million $XX of by million quarter which mature $XX Italian the $X.X the X, with early operations the year, total $X.X to 'XX, the continues had and million borrowing to discount in XX, call. in the on first was million XXXX, making million update discounts, of Italian company rate, cash $X.X which savings will in our at debt along on levels which to the revolver million X, face end, hand. availability to from our team capital, resulted Net on by July addition at this reduction from The on the down debt of debt quarter balance on its of second million. earnings on company are paid pay year, to principal Slide Subsequent mature compared down managing approximately quarter million The including $X.X $X excess quarter. liquidity XX% was expense notes, June equivalents. to quarter. us net bank to with on the The million. The an was was remaining of $X.X ensure has XXXX. $XX convertible $X in quarter, will interest we $X.X this additional $XX in PM of The quarter 'XX discussed This representing approximately inventory the at This quarter annualized in value. second a $X.X resulted in X.X interest

million end Italian years. to compliance $X the debt a is of its required the covenants. make remain with the also annual meet that XX We are all Management debt company term confident next over at in We obligations will the to repayment year. related this

reductions with line strong Steve improved a to working will With I in the management Our team inventory now that, focus the cost EBITDA. preserve demand and adjusted customer to performance Filipov. manage overall will structure capital continue call on with turn margins, to in aggressively back

Stoyan Filipov

mind environment. X you, Manitex top the to to will will to monitor Steve and global this for Manitex. of we growth Laura. can on be the what will and Thank and be Please situation COVID-XX Slide future continue for uncertain the in best as continue we to turn we at The adapt discuss focused team, pandemic

running, facilities of and are While Argentina up in are back hotspots facilities production our limited Chile in most running levels. currently and the and

through plans move to implementing we safely. shutdowns, the are work our we to As European teams make with return summer sure period

actions decisions and restructure We make is team have facilities to America, us be. costs will back management and on to North demands. our our had needs sure get with have implemented but to some making to in market our hard in where them keep laser-focused our profitability These we our line been control

about North of product boom insignificant knuckle spoke in the in the we new shows in have MAC the we developments. branding today, growth is and and course The During initiatives going locally. many not potential our the of call crane America market forward sales

to Tadano Our markets. expand and dividends partnership pay continues with to new

they know, could we many a segment presents known Tadano PM the to electric grow ramping zero-emission product vehicles, to our trend us Tadano and In to I've great team As of growing we expand are opportunity delivered the you us in a and distribution. partner several to are the in to for and best for customers growing quarter, ask deliver new We decades, brand. help our a up Valla for participate globally. efforts the

diversified is lifting a portfolio. to strategy industrial become Our

growth and in that the get first profitability, have past our consistently three PM now back process step The to which was business quarters. to for done we

volume some again, we're $X articulating that And of $XXX X,XXX PM, at our billion unit in at and X,XXX. of is perspective, level market a built of give we year. peak to terms million In cranes, for excess revenue, in prior just now

are on have a please operations we to from We're stop we also time and of there such all was balance reducing and our and shown in importantly, I'll the must and truck-mounted in today, a a call. taking our attention Lisa by ask which as much straight actions Manitex start generating aerials sheet Our significantly which Valla portfolio, have expanding our and can Most margins and of dormant, execute necessary our you to session America, market. the your cash industrial solid cranes. preserve for boom we liquidity, and remain products will thank we challenging leader North I Q&A the debt. the

Operator

[Operator Instructions].

from question a Securities. Shlisky have with We Colliers Mike

Michael Shlisky

that all, to on much secondly, initiatives. sort how could maybe that you I first the a in of wanted very you first save of quarters? folks permanent of to fact might have impressive. obviously the furloughs over how much of could be million considered cost-saving count and you reduction? I think us back $X I about tell half off maybe and is million for we do $X.X realize can of And start how temporary the down can some an annualized basis is that us, mean, maybe spend back two the next coming year, of So asking then it $XXX,XXX on guess, the in be maybe it break you cost of the should much

Stoyan Filipov

more QX. in XXXX. of - And QX piece timeline, give little and nonrecurring. would the executed normal then say I'll we've I'll the of timeline, it. Laura But to is to the a rate kind run What at details get the beginning it turn be in we'll bit of Mike, a of then we'll at I a probably and you Okay. the in recurring you give so a I think and savings bit

QX, I executed we like on it in said, So July.

but Laura, QX, ramp a get really will not the we'll couple significant So couple recurring nonrecurring? want but but quarters, to so over of the through QX. more in you next in and it of go up months,

Ruoru Yu

Yes.

to cost recurring the cost the of the a if the production labor need chain the pickup to see normal direct - of increase especially reductions. SG&A then most in material supply in we bring headcount So the the But the in to most of million, production reduction be we the back future, level. might savings will is savings headcount we and reduction to related unless recurring, $X.X

Stoyan Filipov

SG&A. in are headcount the XX% And XX% of XX-XX, reductions, manufacturing, Mike, kind

Ruoru Yu

Correct.

Michael Shlisky

you previous was have Is want And tie on $XX you spoke million just then Does the X $X.X about million comment into starting sure I of same Steve, announced the said, XXXX. comment what the that that just you separate in entail. in that here? that Slide what years? I'm here, to from not also $XX savings other that about include million

Ruoru Yu

provide Yes, I that. can

million It's $XX $X.X million. annualized the the an So number. includes

- SG&A $X.X rest the besides the coming savings. from rest So million, the implemented, just we

we to quarter, As I These SG&A million mentioned billion. period ago. of are same SG&A before, the savings year recurring $X.X in a achieved savings the second $X.X compared

$X.X to equal it's million, plus savings. So $X.X $XX to that, billion around the annualize million around annualized is

Michael Shlisky

you've do will run order July You And here. mentioned than seen Based on some rates perspective, think far, better guys, June? than from what so an be QX? or of QX and was you the delivery better QX better topline perspective than QX

Stoyan Filipov

U.S. this shutdown the Yes, I way furloughs we Mike, X-week obviously a had the going at And we're we to bit not in had give a point. guidance caveat QX, in is Italy. this would minimal. some And

You America, doing I restructuring. in look mean, at North furloughs QX, obviously, we're

We QX. have in X-week shutdown a

So point. little as at it's And that this be I mentioned really I've gets bit QX to but slow. predict going expectation hard our is better, to before, a is QX think

work the I the us when shutdowns, the mentioned backlog, that when we good to visibility. we've mean, I news I PM increase get good the that's got in back good is for think obviously after

lot want going shutdowns QX, really a a for of I still in both peg I to So Europe we number U.S. and think got But don't on the you, Mike.

Michael Shlisky

to I share. also sense mast market a straight your get want of

in the stable was I that How share higher of than is XX%. over it Steve past. ever orders that Kiefer, don't that? I think mentioned you much recall that being the

give is next this quarters? can of your And share kind think the you to as over can keep of range trending today? sense couple you where in you So a just maybe

Steve Kiefer

sure And our the know, be But notice will companies. they've In year, Mike, who XX%. at of I'm our they're market customer that also Mike, time, that, I'm dealers. competitors, taken new of ever more and well-run over a focused the half responding. have the this share of sure first downturn. we're even our of than in very in you was orders more maintaining our closest to very, than on a machines continuing and and we're channels probably usual, pipeline invest same product

and know full good you and as And a our first. together, have gains allowed product time, so dealer achieve well a continuing relations, solid portfolio second, history dealer And network focus we from And those the very us strong at areas. laser COVID through realized. that we're pandemic, to has the this in both of

Stoyan Filipov

to I'd leader Manitex just boom business. Yes. mean, it's market add has that, solid been Mike. always a the trucks. in I

done team push past or to right, the with so, think the envelope into longer - going I larger getting the machines since has continue business we're boom and job technology, a growing to there. the great into the over decade

there. Steve we've XX-ton, new new future, when to gotten growth, going dealer this the where a time products we're to great building develop as in right, continue products down new new comes. at So then for even invest market, network, launched ConExpo. said, for traction it to XX-ton we It's got is Because a in to our and a from continue

Michael Shlisky

Okay. year? folks with on on the okay ordering Maybe about today? are they of dealer you more? have bit are low wondering what They of worried are your you give we little Or bit down shape in feel right a like lot inventories of most hand now? I Do can far a spent And if little last time this me one. one inventories. so a selling detail was

Stoyan Filipov

Steve, do take you on inventory? to want that dealer

Steve Kiefer

Sure.

inventory because from down, to reorder, sell channel dealer has a activity, that Rental course, are it's products into we in the come so do Mike, is the our mixed the environment. cautious dealers amongst So but and of checks this we have the that down overall, market - modestly for picture.

grids, it's and and, strong. utility course, upgrade for utilities, down particular, telecom support dealers lower repair example, ongoing in is activity for to quite in and and Of still But energy. electrical

Stoyan Filipov

are Yes. more of I others. a And end that than are okay, monitor in I but utility, mean, to would they've say much X we trying dealers, the customers the development Mike. parts of last the I our that, is continues to industry the not Construction, of that region, we're going to couple weeks sure - speaking ago, up a there our hit At of and our say certain least, to I our in that inventory, stable. and clear obviously strong. been it's to be grids too dealers We're carrying to there depending it's on powder them using the all And same but make position the inventory day, dry, I we and dealers' situation. where not are mean, and we're the cash. want the thing. putting they're trying same keep cash, think generate do was

out when problems can. got and a and help that moving from we we I partnership our having think So us with them we've good perspective, they're dealers, they keep posted machines, where on

Operator

question-and-answer And session. turn any additional to back remarks. the closing the for over Steve like call conclude does Filipov I'd to that or

Stoyan Filipov

all you Manitex. excellent interest forward appreciate we Well, much, next and all and International your evening. Manitex look thank your you. you again very you an in have time Thank to and to Thank Great. interest for in quarter, talking and

Operator

And Thank today's your participation. that presentation. concludes you for

now may You disconnect.

Manitex International (MNTX) 9 Aug 202020 Q2 Earnings call transcript