MNTX - Earnings call transcript Q3 2020 | Manitex International, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Manitex International, Inc.

Third Quarter 2020 Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Steve Filipov, Chief Executive Officer. ahead. go Please

Steve Filipov

the until Good for operator. hope and and everyone gentlemen, is call. to Thank on Today continued morning, interest you the taking and instructions will see me, appreciate and or our we your and I to CFO; our Doolan, XX, for President which our November in release our thank listen safe Joe with Kiefer, our available you, healthy and replay this website be call, call new ladies for have time Steve Manitex everyone XXXX. COO. International. Please

Slide will on we safe harbor discuss the associated with many past filings described statement everything to which subject SEC that and welcome risk change questions. factors you Moving our America is is for in commentary X, guidance a and a financial further which with our by our for summary, remind Joe present business for North followed quarter, our will your begin after company. will I third operating from and Steve update we

please, Slide X. on now let’s So begin

in track the thank management all future our endeavors. as months. by expense XX her an a professional to to on former in sheet proven Joe Yu, her Ruoru been. I support past like controls has Doolan board. excited and impact and reporting, also our over balance financial exceptional for I best on wherever he The analysis would I’m and has and Let me the has a have wish start CFO, team He to leader welcoming is a planning positive team. and Joe record made her

with start me let the COVID-XX update. Now

significant we are protecting health protect can line we EBITDA our changing continue by our our customers. making teams and daily, with will of of situation year. swing is maintaining executed protocols. importantly, the areas positive from the our in second adapt everything a as and quarter well-being and million. quarter our and vigilant the showed $X.X to our sure clean adjusted needed global doing remain progress our employees, are safe, made in by their expectations The to We this facilities We most of families many And and

position We our recovery. to for continue business a will

business spot with growing ramping backlog, for bright remains PM Our a and up are a now QX for us, we production deliveries.

current and Valla today, a in a looking for products. to zero-emission help significantly to and to better foundations the friendly traction challenging to markets in The new will the quarter Our move to In of we booked changing must and market more bring crane XXXX portfolio industrial new order significant set make the continues products. we our continue environmentally of the for business. this products market access innovative market

the You we in will Steve products quarter. from launched new several more about hear

cost the Turning our in our financial to boom necessary in performance. our Europe. our American by improving taking North reduction actions and margins By products business in aerial knuckle and

his detail improved in of commentary. in quarter. the will his operating – of results more cover Our the Joe third

we have Europe, positive in past growing the America although seen North in over this is weeks. is of backlog Our signs and mainly again, improvement few

balance Our good remains sheet in shape.

debt to And we $X debt. XX% our quarter, paid continue opportunities at We down in the to at in million look over discount. Italian reduce a

debt in our our our upcoming balance ability obligations. to solid We to these make sheet, are and look will we with continue opportunities for confident

running for managing and facilities the through and is pandemic, now, Our up are everyone globally.

continue our some operations we are have sporadic will hopeful shutdowns quarter that in America, We Latin the fourth forward progress in and to but had beyond.

our for turn up three cranes. aerials With X. to our facilities in production to and Italy the Please we Slide and backlog, ramping visibility orders booms, improved knuckle at are industrial

in businesses profitability, getting and led work This again though was still to good do. we our European progress back once U.S. to made by quarter our have operations

we As Italy. in a two-week planned in shutdown seasonal in August, had is Europe, common

did facilities necessary ship several our quality gaining knuckle the our shop are America. did improvements the markets While on not European Italy we some see we in our we to protocols floor. in safety also work products, growth improve PM on make France, and reorganize share UK, booms and and North lines, in as production

we working further stabilizes through with inventory. in dealers partnership work are as at XXXX Tadano Our is Southeast well, to expand Asia, and their looking

expanding last doing a Asia, revenues a year. Our along hard pandemic, new steel the lead aerial to tender The in meet team truck-mounted efficiencies additional focused even to project ramp and awarded XX% manufacturing on up QX. pursue were also for oil and over utility – We to in and a a in to markets into fantastic European with is current team up job are with working production for company another manufacturing demand utility in always tender close processes. is

discuss for year. North third outlook initiatives our and turn in rest please let ahead. over to Steve of the Now quarter America go it me the Steve, to

Steve Kiefer

you, Steve. Thank

was compliance that the a health glad well-being in the operating the to have and priority with first our environment, While had of changing challenging we And are fortunate and codes that safety our operate. the and quarter each safety employees. report key of we at included we economic during facilities each prudently EBITDA, quarter incidents during and We maintained to the a new key worked that important with sheet. continuing gross at products our small product our of our invest and driving businesses no towards, in and COVID-XX we fatalities. improvement, launch margin priorities improving of balance only handful strengthening beyond Other and

The reach our for plan levels, at As completed Winona, restructuring being trough less severance-related with to $XXX,XXX. July. million cranes $X.X costs $X.X our included and mast headcount and other believe Texas, than annualized facilities total plan Minnesota Georgetown, in in in end demand $X.X a we market what savings million be million straight we reductions

marketed our dealers quarter to MAC brand MAC the America, pleased previously in year. two to versus that Turning key Crane. for PM new increased product under Articulated Manitex products are We which of our the same our last North growing categories. We were announced America to approximately cranes boom stands network. Sales North distribution XXX% add in knuckle

was The in second and Tennessee and Synergy Georgia, was with Atlantic the Alabama. in branches Keystone Dallas, and Texas, first Southern

significant purchase development order, international anticipate we quarter placed the product order from the Another awarded were $X.X and repeat being end a orders customer. an this to for during before this of million We military to be was pleased receive XXXX. additional

orders cranes versus Regarding for crane straight business, our second XX% up industry quarter. mast the were Manitex-branded sequentially straight mast

levels decade. remain at order a not in seen year-to-date However, we lows have

industry year XX% to this XXXX. As expect to XX% to continue such, shipments for we be versus down

from business an well is infrastructure, maintaining in infrastructure approximately this the of particularly our the space electrical eventual to most leader for grid revenue of critical sectors. and generated upgrading markets, with economic our the and and markets diversification electrical is the essential straight Thanks our crane In multiyear for is products mast utility, those an forward, end end serve telecom, networks. of array and XX% our us, growth the This segment strategy government and currently positioned Going is becoming recovery. military with supporting both in particular, needs. increasingly important telecom

sector, we for significant This quarter launch example the are suited was the during is fields. needs to the sector increased of of work utility. backlog is XX% to of are U utility for TCXXXU the in crane our with well their announced the and electrical utilities participation suited and unique standing third subcontractors. products with our headed this energy well of less reliant well, on A our not as than field the currently not While development energy

crane The sold we the first right. was quarter, the first crane produced and during all the shown third year. the the in half next currently we orders are This photo is below of taking way at for

we truck, features category week, plans. the and various support product longest investment and Additionally, XXXX XX-ton in our the applications. continue new development straight targeted crane product Furthermore, utility boom even on other and Monday is businesses boom its which announced this mast of through infrastructure to our business for this we in downturn,

sharp needs XXXX, customers continuing measures, continuing of maintaining top on our ongoing positive move our generate cost balance operations, dealers, As our our priorities rest sheet. to reduction strengthen health and our flow the through of safety from are the we cash meeting and a to focus and

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

Joe Doolan

today. appreciate your certainly morning, my you I Thanks, joining Thank Good and I comments the for and in make will call, everyone. Doolan, Joe I’m and call today’s I’m to brief the point. Steve. participating be here, to to and try excited

the on the First, QX, company Sabre sale industrial a generating mentioning that I’d the $X.X gain of proceeds for sold million, approximately tank business of $XXX,XX. cash start like to by during

which the years. Sabre are company’s have in proceeds my that most results. thus, discuss XXXX, turn results Sabre changes in the remarks, The should the we we and included and operating results discontinued ability and QX please will the financials statements, operations following in will X in achieve few X believe exclude Sabre our additional to With to versus continuing for earn-outs but that, We environment. must is meaningful current of discussion recognize from certain Slides results targets QX financial from in sales the operations upcoming

compared turnaround, PM, outbreak, was driven continue the straight which the the million, The $XX.X and for decline Steve of as America, Manitex quarter mast softness increases decline of in in Steve shown noted. sales by X.X% million COVID-XX of we mainly the lower partially as experience to revenues second North a cranes, to were by signs market at quarter good have Our $XX.X XXXX. of have driven by offset

$X.X loss was second representing compared to The million $X.XX XXXX $X.X Our per driven was share The gross a quarter the was $X.XX improvement positive loss was loss $X.XX to from per improved higher loss EBITDA for QX. initiatives. operations continuing negative net third driven share a or $XXX,XXX loss Adjusted QX. The by primarily QX. $X.XX from improvement share over by the $X.X improvement million, per from QX, in million cost loss of in $X reduction margin per adjusted of $XXX,XXX quarter share a million. a an or

in we of and as October $XX our approximately backlog. our This June backlog month the increase Manitex press that backlog XX, backlog orders were driven XX. PM September to to October. million note the took QX orders $XX of which orders XXXX. Also Valla And compared a received in in Our to current you’ll represents the the XX% new contributing XX% at received million, is at in of by was business, new as increase release, saw over increase

quarter. margin increase lower is Manitex, headcount related primarily second compared QX margin to for reduction cost mast cost was reductions sale and resulted the reduction increased savings gross XX.X% Cost QX. supplies as of of to the booms. on at decreases an recurring from knuckle activities production primarily than gross Our SG&A margin the XX.X%, The expense generally cranes, as in cost initiatives lower of straight $XXX,XXX a to which well have have in in due

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

and cost reductions. North other Additional business July restructuring taken reductions actions include in were in American crane in and the material headcount

will expect reduce than realized $XXX,XXX. cost these even saves deliver SG&A believe We of restructuring that We reduction margins million. $X $X.X QX costs approximately Total these initiatives additional in will Actual gross and cost less over and strengthen savings our related were further. actions expenses million. annualized were

for QX. Now for discussion a debt moving Slide net X to of

outstanding by a was quarter debt at July, approximately the paid down which is million will has XXXX. revolver. debt XXXX, we availability cash approximately cash. QX $XXX,XXX. results of $X The net with million, notes, the the including which XXXX approximately of balance company Our its on used year, reduce million QX. January than of This was draws face at December outstanding the In mature PM consistent revolver September convertible will the of the to on of available quarter, balance at savings $XX The liquidity million approximately $X.X million on remaining At million. discount the on this with XX% $X.X $X to value. million $X.X outstanding million mature company an Revolver end, million two annualized Italian approximately interest expense company of lower third XX, end and in of $XX had $XX as $XX

next the each remain any meet call turn to these to XX that over covenants. obligations all on repayment this our at We will is that and with Steve. and end the With open the the I team others of as confident debt that, scheduled company other will in The well. of have liquidity $X annual have We debt through months. cash million lines term now back are Italian compliance over the credit year a

Steve Filipov

Thank environment all and families safety X work make to member the Joe. importance outlook to need We and that safe every a to sure turn team returns for you, next realize and Steve discuss Please we of our the to to Slide in safely. comes their quarter.

have our keep new to keep business, shut had few are moving a have we is grow Although infected new must effort to safe. case and product find invest a down takes continue facility markets. we fortunate to our team similar in by development our continuing ways to we which to one virus, customers why as pipeline it new to the only and been members new only teams In to a forward

forecast to we months. is difficult reliable we our delivering products in on with inventory earlier through expansion obviously grow growth bring reductions cash while keep our have down year. are cost building margin focus QX requires the our to to to the we goods still dealing team and the facilities long-term customers. of the continue markets. made This this have finished inventory. extremely products generate keep to $XX challenges to gives million It and more We and past customers, to that the with our current focus our few opportunity put in This our producing will million to me and continue our next our QX to our deliver and have able able a revenues We be innovation pursue as we’ll progress excellent work to new that $XX confidence and you and backlog. business on executed services going reductions seen, have But out in our can

to two debt we close have with As you during to reductions, XX opportunity these plus our made these with thanking the would are months, past to XXXX. generate in the we work customers to would inventory doing of term. efforts not quarter And payments finish like execute the progress of leadership, hard have we their XXXX also for I our to the thank know, us upcoming we the their payments. like the challenging quarter out and all year all and be the planning cash fourth first have Without in times. help I we far. as make for they the so long made teams uncertain the would global are and loyal have for improve we efforts by to grow the and these commitment many business to partners able

continue ahead a I access operator for We as make today, strategy start ask call. executing and of you and I’ll thank have the lifting Q&A great session and business. time specialized future stop the of and us, and progress the attention solutions a will your please there, to we our so by will

Operator

go the And Schilsky is from Instructions] with of first [Operator our Securities. question line Please Colliers Mike ahead.

Mike Schilsky

Good morning, guys.

that seeing faster you mix So of It just helpful. than growing let is the and us sense, lot a maybe certainly does higher-margin appreciably here mix you in a the or a in higher? quarters be probably at QX just after shifting is the going very And that and that be do mean slightly think least? just we’re at a the moment, PM towards with start the also PM shifting to that’s straight higher will like in Can backlog mix give that margin sounds here. difference few guys, to me cranes mast

Steve Filipov

months, see we’ve the bit been the it XX% XX over now, business on. the the knuckle Yes. XX business, as mean and which what the you good today of revenue larger part Mike. working Thanks today, – that’s for is Manitex said is as boom company. really said, question, represents We for really the I of little And for that, you over just a past the a the company. for about engine growth feel we’ve

in the XX% also you gross As better XXXX. before, and over will in knuckle said are said the business margins the the business. booms, a is cyclical trend be backlog that And we’ve I the think as than consistent today into

saw points the should showed yes, We higher to see that a margin I QX QX, basis margins. right? XXX And in you increase. and So some think gross gross trend of of you

we’ve of But America. you’re reductions of by a was that higher and Some represents in portfolio that. seeing some out now driven taken that cost the knuckle boom North obviously, business,

So question time. to over I margins yes, improved think see should your short is, answer you

Mike Schilsky

Thank for you that. is wanted turn the I to – something continents. to them restructuring. you there did If two on

run about million savings. annualized almost in You’ve And was $X got there the rate which the said you the quarter sounds total U.S. third like here. restructuring, of

Italy million but forward point in turn or made a delay $X changes are like be actions? And going during program? you the is shutdown. that happening this – what summer So margin some rate from that to going about be there any on more of run get appreciable it there from wanted Or or to those sounds they might forward. full annualized you’ll impact of going there that to in to kind mentioned that you any the do Is good quarter fourth I forward? the I

Steve Filipov

Yes, Mike.

I’ll So restructuring it to we to but Steve major Europe, in North I since last just haven’t talk America, over done year. any about really turn mean,

right? we’re I that’s doing we’ve getting So growing. prepared in backlog As got really, a ramped my remarks, mentioned what up, is

in booms above on where or on Italian QX XX% we were businesses. We’re knuckle the

year-over-year. XX% up We’re

now ramping we’re the looking obviously, So business. at up

it’s in PM to So of really QX, case this of perspective. restructuring up. revenue mentioned back business I probably as we’ll run knuckle more a ramping see don’t And case the rate from in think pre-COVID is Europe, I a the

North time. difficult that I in the July. is So business through only would mention late pretty thing knuckle been the sign that a a restructuring, the has And even that’s remember then boom executed that a positive American we I think on difficult resilient

far months. really a that so are we to money spend didn’t that. we’ve the gotten couple only And So effects do lot obviously, a of of

I America did. restructuring going in to in answer that restructuring But the we think are So the Steve, with forward? run and maybe good see or the definitely returns you on Joe, you just want restructuring the North rate do chime

Steve Filipov

Sure, Steve. work in so Mike, didn’t manufacturing the our affect America restructuring North footprint.

and our you on very are in North Manitex, we’re America as Mike, focused with scalable, primarily assembly. know, So operations

do At changes In by in the in and that look the did smaller the rough straight some do Winona, build any Manitex or the the North – Q, straight the experienced if headcount the America, did so end the direct year-over-year quarter And terrain And added cranes increase Minnesota there. we for facility, in reductions, time, So that assembling affected people we the want Mike, industrial most Winona for financials do the brand some fourth focused there got North July terrain that that the reductions area. because for of – not some cranes. labor make – trucks. in a we’ve – to cranes filled of this mast same we you in rough were And third That there, again, we’ve we mast MAC and into I not going areas. any growing some in and of in for those crane up year the in was the activity Manitex products. Manitex we’ve reductions the we’ve quarter boom make we and to we’ve we nice America slots emphasize we all were the it indirect our both did on got make due MAC.

gross operations cost And the in margin. being the of as through nature the clearly our flowing have financials, you to see flexible. – due the and So now reductions are

it eventual comes. for upturn crane We’re in straight the the when mast prepared market

Mike Shlisky

the we expecting I during the Filipov, the That any The Europe, be see, was up that color. Steve changes done margin improvements back should there were Is comments that to just impact question. or the shutdown made. really a appreciate and first. Can crust that on of were we there?

Steve Filipov

Yes.

done more quality. are mentioned And So Mike, efficiency improvements somewhat I that we’ve there, really, on the related. flow

that on So hydraulic the basically to hydraulic a new the it. the do that testing where system, knuckle replaced we improve the booms could you with really hydraulic give whole the feds assembly so for we of it system an the quality example, we out cleaned in for

then improvements. of warranty more warranty I customers quality that’s will improvement And costs see. down. a think But work factor So I a margins going that I to time perspective, a, our over this of time, definitely our efficiency to a of from efficiency bunch we’ll obviously, wouldn’t or see take in point. improved kind at It’s us go wouldn’t some through those

Mike Shlisky

to that. the in green if trends do sounds indoor like information color they that I to Perfect. get more these some the you touch than because but emissions? bit the on that’s Valla that’s going quite buying more probably Okay. don’t are wanted sense the customers use a that the little want and well, that mast Then the you PM, briefly And they purposes better, business. focused to they also use got trying just for Or buying of shared. to not the are closer it customers just for on where? outdoors buying I who’s That for job? because are be that doing you to Valla Can and tool give best are the straight –

Steve Filipov

Yes.

to off Valla of a diesel – start is XX-year-old industrial I that So electric Mike, from and say a time. cranes, thousands long a with very remember is, They would since what both produce company.

around of of all, the products that of and we’ve the Valla first the I we’ve to that that some we’ve the space, XX products think product launched. So ton launched new base in fully electric way our improvements been reenergize customer up kind all We’ve the to cranes. and four able made new

our kind is done good of kind just sales team all, on around. we’re regenerate work a the of We’ve management back them marketing. new and have media, of still I’m with the to first lot – foundation, we customers, there social we business a had to tell flow, the think a I going So to

it. of been piece a So I think that’s

is days big a The rather facilities. application warehousing facility. he’s a a crane than the in facilities, waiting Valla team a the move or manufacturing for actually of bought easier because facility utilization you it’s ago, a crane, give I move and with an in through overhead product of with for I from was couple say, be It I’ll could of customer – I’d example he’s looking the mean, other, inside just utilization left Valla facility overhead an right. works his lot a a to the to can’t certain this direction, product, you product replace the in example, to and

So it. I a inside lot flexibility the think you a where right, obviously can’t there’s just just more emissions, in zero facilities have And existing then we use anymore.

took Europe. So basically, a the with some channel, that’s going really And aggressively me we rental driving, as customer in in and space Coll push and pretty Netherlands more a in through business kind took the And what’s I to the get there. And start away our that let it. of then from this we’re they’re in just order company of Coll, think, out think, we went finish product which competitor, been with rental with the to to they’ve that that premier use will competitor. through with I have happy

in really product, the about and Europe. we good So that’s feel

North also out There’s a internal. we’ve to So use. And kind in the even the gaining lot of have a glazing North due and again, it’s putting to zero-emission is small we’ve done in America it’s of been our a facility what to traction of Chicago applications. product where rental shifting lot America, customers, we fleet a

the a our building. the glass zero-emissions. elevator, an So put you – which to to done X.X our again, or floor, with basically that for to picks machine, and the example, suction can it application, up it smaller And just whatever applies fifth up it all goes ton, in floor. There’s fourth

So I of think piece of that’s driving business this the blazing kind globally. the is other that’s

Mike Shlisky

– couple is don’t a think kind help opportunity size be the is mentioned – to a today Can material over and us might roughly of last number Is able pretty what much you’ve quarters you help us it here of – Valla as that Valla it all Can you here? big to of go? really. where where it it – is just you I maybe the think

Joe Doolan

Before a revenue just more little I I’d belt. to our you get under give number, bit like a Mike,

I when XX said, and XX I new company from put months in than a long a bit knew the time you ago, management ago, months into there. long, team more As came a I Valla little ago,

starting the that’s get to limit of things, sky accelerate building to traction. We’ve a team to We’re we’re hate there lot product We’re the a customer out we’re a got that’s product, doing us growth. out is we’ve say new but new and I for place. in building – got portfolio obviously right? going help get

grow it that. give get I of in mean, Whether $XX a talk probably think, a or level I’ll XXXX, more can XXXX good I to, foundation revenue. you to around we But more, Mike, of somewhere we’ve So business better about I that to clarity as the million, get better and north probably number. I’d say that’s potentially it’s got good a

Mike Shlisky

couple for this that also. of Okay. you us years is, Maybe I’ll real just throw one more a there is now can – you old update quick. out And

some a North over you You going to if for some America. work so. steel update one, us too? that those last how that maybe months platforms recall the it had the I good pretty product, to the outlook XX can have Does of seem oil just been truck the as or was lot of mounted brought were and first. curious aerial I truck-mounted demand that platforms had for

Steve Filipov

The year-over-year. up new and we’ve with job gone out XX% have out my and team gone said Mike, to Steve in a on launched of you comments, the Europe, into it. talk American close fantastic I’ll give is done new We’ve business to new But oil I’ll as markets, aerial ask Yes. perspective kind I has then about and steel business. the dealers, North gotten products. a

plan And And you want we is together, because So grew can perspective. North I add Steve, North from do that but think see think in in the as business okay, America. America? probably continue we we to doing think more North opportunity that there. put more to XXXX I do you’ll much But we we’re North in With obviously, could to our XXXX. America, that do America just product under there AXX grow to think I in I want

Steve Kiefer

customers And repeat completely with orders. we dealers, to month, Steve’s our we’re we’re taken And into of And that can say, more for area. of adding us further that orders. just in we at the quarters been additional a They looking of are them that incorporate AXX. onto team, and the aligned XXXX, all I number that line, taken product we some in now, every grow example, or line point one plan. our that taking help every we the A them on the quarter. And that have dealers signed that opportunity, the models XXXX place in and same we that announced The that the steel Mike, with oil the on part that have Sure. announced revenue two as in realize year, and – working are there’s what have answer have mix this now time, that AXX product third have more, at to is quarter. move of capabilities into repeat dealers Mike, we additional have for, reach

Operator

go And we line [Operator sir. question ahead Mike Schilsky. follow-up from a the of Instructions] do have Please

Mike Schilsky

make electric to an kind your truck? engineering? coordinate might of forth comments been the to have products there Have or Do just two some it’s you electrified you any heavy out soon any whether on far been of just so hearing that. we’ve type a the kind update progress of with truck? lot recently how mount launched Any an a or a crane of on you some well two after work on been making but costs you okay. about us Me someone give of right. are or trucks Guys, you. being as maybe me year chance, Could as to the working kind next on as as Kenworth for more and a today. changes try That’s there, major electrified your advent year got I one again, All I there? and to you’ve else the

Steve Filipov

know of Yes. you on that? to want I Steve, do you’re projects. some the working answer

Steve Kiefer

sure. for Yes,

So and underway Mike, terrain products with those. some to work is – Valla, with our industrial the of along rough there’s there electrify

news rather still companies categories. key ready trucks, work the contractors through and periodic – are trucks day, been the going urban end delivery delivery work that type we slower, distribution five sharing adapt little our that trucks, truck are – work users with end our have manufacturers our and that would with have to end you’re that Regarding base, we’re a on crane vocational for the our – our dealers rental and commercial and the a forward, been move it’s providing some chassis, drive will the the and work that. and pickup But various in a than dealers. and us our of class in that I manufacturers solution. there, It’s our on trucks have technology say, doing and users be freight are the actual truck suppliers, we’re on the seeing on eight areas. information pickup trucks when what the to of And going And to customer doing at the as updates

Mike Schilsky

can on going in And sense. to how and the went turning maybe doing to and Makes either or service And anything improve quarter? it. parts that to in then near-term you’re Got business update parts service, you keep the that further? us

Steve Filipov

for quarter. in positive us actually Yes. a Mike, the it’s

you can a tell about numbers, than quarter, actually. miss little me quarter, it’s bit the my I better of I for the prior year I Joe, revenue but XX% think, if think

shelf, to order to talking doing to on lot products dealers parts more know, line fill put access some sure dynamic online. more technical about a as improvements our been increase we’re can parts rates you the that publications I’ve move or our to product So make and of

to to to that a for of I the it’s a going do for that, have to of accelerate more us that it’s we’re opportunity grow just I think, that So business. piece in be it all the things we doing business. because mentioned. a to more little And that, again, bit still us XX% Mike, But I margins time, focus takes XX% in think but lot XXXX of

ultimately need step we’ve Joe, XX%, are – Go opportunity business. But line going So XX%, of an it where us we’ll the fundamentals. said, of couple for get we’ll if forward, industry be focus to it. over the definitely to the fill parts north on to plan, we we to we rate. best of it’s past on right And I quarters. like XX% next And working move to seen sorry. to companies the XX% then need and I grow The the in our want to continue now, probably we’re ahead, that’s think and grow

Joe Doolan

I confirm yes. was just So it, going to

of up the points of as part revenue, where were it’s sales a couple we As percent ago. percentage far as year a a over yes,

Mike Schilsky

to from particular any are are a current for rent some an I the at get a of cranes just a out indicate Okay. and are being are you rate mean, are that worn come what I that does – And a does you product indicator used used? for cranes a fleets feel used the that bit? to perhaps trying have replaced? right some that cranes in follow-up their that quarter, intel eventually sales new out the of people if to when we’re any high quite now? is trends indicating using Do am seeing be being there, that your up, that whether the need they this good having that current actually is being cranes business to there

Steve Filipov

rental actually not a visited long actually, Yes. ago. to America I’ll in of companies couple – North has Steve

you talk about general to do want Steve, utilization? what to want think is you about positive, the trend and you I utilization So talk see? but

Steve Kiefer

sure, And as trend market a end Mike, focus versus quarter. The certainly positive, well second Yes. the regional it focus. is for on depends of as lot

our but and are the that the of Steve I as we – the quarter, slice from percent serve, rates backlog, majority of Joe up the we historic And level the healthy pretty and is seen versus utility and and The which and sectors, through rate the any increases and utilization their second rental utilization up – from utilization example, high as into XXXX. much on we to business energy part infrastructure smaller Those activity our still folks measure. obviously, that the are a particularly end infrastructure. a adding both at only you’ve second a that versus those down are vast sector, fleets, other on quarter. the historical of and, ago, not our a frankly, segments, in we is rate and than are currently for utilities the the backlog the but few and fleets being years of the So levels. XX-ish in up fleets telecom telecom focus have the the move But

Steve Filipov

kept, U.S. it past transmission have haven’t Mike, way. busy. that going mention this six The think at rental else, months those I those guys the the the mean, on has fleets think utility all. I really I slowed we’ve had everything slowed fleets and of hurricane and down in distribution, to down. don’t think, Not

And the know, the up want business. XX% of the On XX% probably probably I XX%, talked would as is utilization be trough most they’re people that the and into XX%, you now. XX% construction we’re rental in where at customers north side, to to

some So I on. cautious kind fleet little But how that’s more there adding more I think we’re utilization. trending would out that people uncertainty bit the a think, gauge are just of

Mike Schilsky

people follow-up be some there fleets? going level some here? the of answer. unable kind that force these point, an go. Okay. cranes over in I the have of might at some sense have last happening on you couple keep excessive let older quarters? more of to, the Are that Is Do replacment fleets been that – the are aged you I to there to one get was

Steve Filipov

Yes.

– think I about right? year. construction utilize life a utilization a hours is X,XXX crane I The crane think the product remember, An a than, the different, this a an we a X,XXX lot to of for lot about may or is longer works X,XXX hours year. cycle example, aerial have talked that and before. You for aerial product

your at So parts, look at of it look for a a a still you and in or fleet. could easily it and replacement kick refurbish two out to crane bit year keep

age. it’s it I months fleet not, replacement cycle, is, people between stay you So about like would product whatever really a XX, of right, where XX aerials, a to to want think, you think where think conventional XX

think just different in a right I dynamic cranes it’s now.

is. cycle differently. bit replacement a I little tough like product So the to people really said, will a little Because tell what you the utilize

Operator

call And back further Mr. no this time. Steve. turn will at the to Filipov, we I questions over have

Steve Filipov

Fred. you, Thank

their may We to forward to safe, look follow-up be Steve time and really to Manitex. everyone I to hesitate for in And So everyone thank want questions to interest myself, please or and speaking soon. Please it. appreciate with have don’t Joe. you any

a Have day. much. very you thank So good

Operator

disconnect lines. for This and you ask thank today. does please conference conclude the your participation that you We call all your for kindly

Manitex International (MNTX) 5 Nov 202020 Q3 Earnings call transcript