MNTX - Earnings call 4 2020 | Manitex International, Inc.

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Operator

Greetings. Welcome to the Manitex International Fourth Quarter and Full Year 2020 Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the call over to your host, Steve Filipov, Chief Executive Officer, Manitex International. Please go ahead.

Stoyan Filipov

Thank you, operator. gentlemen, International. you and interest your ladies Manitex in morning, and for thank continued Good everyone safe call. Today year and hope our our time with I financial is I XXXX. CFO, to taking appreciate me, the in listen the who you results will to more Joe for full our have on discuss call and the Doolan, healthy, detail and quarter fourth for XX, replay be see instructions this Please our our will March or call, available release until XXXX. website which for

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

let's challenges us on in our The to please dealing So resilience and I top of current this highest-quality team, a global deliver with continued to teams customers all want our our families our all. the for customers. thank their COVID-XX begin quarter their for pandemic now strong and the Slide X. and of safety services and mind brings remain continuing products to to the

significant revenues a I'm see the out to and glad improvements close in clearly have and as made in a seen in have business, We XXXX. our we our our turnaround we backlog improvement

product have challenging job the several our since for positive to trended an which was is North in Having improvement the an orders time our uptick purchasing inventories team customers in to to in continues in in for excellent improvement cranes, North and but spoken knuckle Manitex we by year a continued done American revenue America, had is it growing energy, and new straight that to an demand. segment saw the our over a from first we dealers quarter, now direction. mast we in pandemic in somewhat that general their our Even boom quarter, customers and XX% like driven be expected military in progress adding high a fourth During visited MAC has order, during clear us. construction environmental clearly, XXXX, markets. Sticking a XXXX, the this and make managing for dealers that market of

we & knuckle million, in driven recently Our of Valla industrial backlog Steel record with Oil $XX our into was announced X-year the and products boom which and but aerial continues cranes PM zero-emission product. our by to high push also grow, a mainly our

and to We launch in this new several will also continue in accelerate products we drive development new XXXX. continue and product initiative XXXX, to

in some the launches new have will product half exciting XXXX. of very We second

the time schedule, we first XXXX, in of working to have are to the many since good and up our For facilities. we visibility of end our production ramp

mitigate managing them the and have availability the team commodity we to every making I'm many increases, are is confident very as with challenges we but tightly, We seen pricing effort these best can. and

markets growth. focus the in the And we the global middle as even another X. sheet, QX in strengthening the be solid strategy commented $XX over significant products to and the has our different done in has executing in where improvement of have this XXXX Slide great which a pandemic, million, and a on and many have PM our This will since continue in operating. Please the The progress $XX end Group an we debt was see quarter, balance been of We to is down million to with net turn made headline and is team our company business to excellent past. the had markets. job

XXXX, over on at XXXX. the work EBITDA put reductions close improvement strict in PM. place to cost controls basis we XXXX adjusted for a point improvements late we delivered the continue into and the And executed We we with in cost to profitability XXX

& is and product Oil improvements Steel making significant in the our more but importantly, to new in delivery aerials Our business quality customers. development

we the of this and chain. The manufacturing product was with middle by year new to in also of has exciting to new zero-emission One improve business development are initiatives been our significantly product products streamlining Valla quality of the our products see supply our costs improve the to of this key customers. rejuvenating facilities but our as also improving and

for technology crane the know, different. strong is is all a this there industrial no globally, space and we push As

drop profitability market. restructuring end Our reduced a XXXX align recent Manitex and happy headcount are and in the us. see Georgetown focus straight overall delivered light in for if business XXXX. in the of challenging in uptick the some our we the executed at we with our orders, a not XX% the We North major in America tunnel facility with Even to we major mast of the QX program in with by remains

to With business around we in the seen units profitability see volumes has hope XXX X,XXX the deliver units this stabilization around the in some today, market XXXX past. to

Let me financial to Joe now discuss turn performance. to Joe? over it our

Joseph Doolan

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

comments continuing start will First, operations. my address by today from mentioning that to I'd results like

Slides please for the changes that financials. environment. With discuss QX are XXXX, turn Sabre, continuing operating the will the the As remarks you versus results business. third know, and sold to following will which my financial operations most operations quarter the company's results exclude is company but and Sabre X results Sabre the fourth in discontinued tank I'll the results from and included discuss believe current we industrial thus, in X statements, quarter, during in that, in meaningful

$XX.X was sale of cranes were cranes consistent of by of increase XX% for in increase knuckle Our our revenues QX. QX This $XX.X in the straight with in in third PM our business the unit. mast and sales were the business of mainly quarter for quarter million zero-emission Sales the an of compared sales XXXX. driven to higher million, booms Valla

the Our business, loss fourth increase million, net $X.XX for $X.X tax quarter quarter from for increase by loss mainly driven the the earnings per was was driver loss offset million the million, was of QX per adjusted of compared QX main was driven operating an share share. third or quarter-over-quarter. per the which higher $X loss by quarter share third per income the $X.X from earnings fourth net tax in our from The expense was is Again, quarter. improvement in compared operations share $X.XX The in PM of loss for per expense strong the higher continuing $X.X million. the to $X.X which $XXX,XXX The to $X.XX loss million a of in $X.XX share loss QX. or loss in decline per a in with

in X.X% million million an which of our EBITDA $X.X adjusted XX.X% The an generally Our gross was from was third which business is driven increased crane EBITDA sales the million in $X.X or by our unit, $X quarter, increase a is of margin. Adjusted reported X.X% sales. the higher gross for knuckle boom for from margin The cranes the business. of the quarter. is increase have or sales. primarily knuckle which PM increase quarter, was third margin due to increased XX.X% the This sale of of

from to doubled mast September higher we as XX, September increase backlog crane note you'll was is than are orders XX, nearly orders XXXX. driven platforms that in is million December compared release, in units. And as took $XX business XX. backlog million, increase a XX% Our approximately $XX saw up more press September which backlog Straight XX% to the of January This XX. by across from all and our

of was quarter. for the the fourth the ratio up for book-to-bill significantly X.XX:X third from Our quarter, X.XX:X ratio

June about business and SG&A in our headcount resulted COGS we consistent of recurring business prior and crane cost cost $X.X in the and performance million QX and and reduce cost actions in for in our initiatives were have Restructuring talked costs and in on American taken in with we other expense calls, July and savings include QX. As reduction have North initiatives SG&A. reductions. unit reductions to These production taken material Manitex is in

these deliver our of strengthen believe reduce expect expenses. SG&A annualized these will that actions reduction and initiatives will margins We savings cost gross million. We $X.X

as savings the expected, originally we annualized is backlog, strong are expected. which our as to we initially headcount required attributable than decrease While not maintain higher high to us

usage from on revolver to Net our we a quarter. of I'll update moving totaling on debt was The an cash. convertible decrease borrowings at notes $XX.X had XX. quarter our Now X, that company million in September the and Slide combination for December the through a under off provide million million paid debt $X of fourth $XX end, representing X approximately position

will particular, obligations debt that had million meet lines available at end $XX from term we call the repayment million. With cash is months. inventory. the at that, working made our for the $X have to At quarter. over of end including related through team open million and generated others XX company in annual back mainly This of States, of over the the covenants. The $XX and free in And as capital to confident and, cash the Steve. a liquidity approximately driven our will balance with the year. The of $X remain flow the fourth availability our all improvements the addition, credit compliance million in outstanding cash. Revolver in XX, to was December debt other on United million company of $X with the in liquidity turn the quarter, XXXX, In the we next million, $XX.X now I of was are any revolver company scheduled Italy

Stoyan Filipov

attention and Joe. X, XXXX. Please let's for Slide turn to our to QX our outlook turn Thanks,

the current situations be challenged COVID-XX to continue We globally. by

happens quarantines. some seeing facilities, XXXX. This in cannot much and Europe, us our on the stricter challenge in markets uptick our team families. safety are every for of so of but facilities several is our will the an U.S. of we what effort in position to we in Unfortunately, also all seen have to We today outside continue taking a control of both be a their and our

the a strength, see America MAC do mast our we driven XXXX. American should the we growth with until European some sequential be in to North Valla already. growth North for still which business and said, to That Given significant businesses straight in products, our we have business. the we can opportunity This have our grow will by started in revenues backlog see

commodity problem have, importance capital we ramping and have are in and are a up. improving And is The to will although to material, we every drive cash these. critical, flow cash We company. of by challenges day the availability generation working is of the this good overall our continue to mitigate we and free of pricing volatility, still reducing working liquidity

drag a we longer European our needs, business Our no first on generating now flow operations in time positive cash the acquired since is corporate are the cash and which XXXX.

Let me this. saying summarize by

so And that to here American the we we'll provide tailwinds for volumes and a replacement hopeful to domestically targets. margin to is we're that to of advantage managing actions as in and our $X a it's America, additional and positive of have margin taking are by efficiently. Coming we additional contraction out align executive in period will been could an certainly, must everyone, the is execution reach here scale on we XXXX. remind balance continue in reported focus incentive North the product business infrastructure moved benefits to that out outlook, to running aggressively share find and and and our cycle, expect will large North see achievement certain to financial articulating nice a our to business. of our And improvement. our this projected We results EBITDA a our bill million is begin this and take goals, these of unit see tied global we that businesses work we of we see team's market up of in revenues, some maintain here of costs It opportunities costs cranes sales PM program to further diligently for through continuing our to year, our cycles dollars take us. Regardless how continue we XX-month with from

session? very Our ultimate that, portfolio operator, to close is please to open we lines deliver for our goal the you as Q&A XXXX. With we remainder in deliver have goal, necessary while XX% a of that this on are adjusted to the the could need improvements some to work to the shareholders. And company EBITDA the businesses

Operator

[Operator Instructions] Our first question Shlisky comes Colliers with Mike from Securities.

Michael Shlisky

or can if in give I something was Is as mast wondering us articulated. else? to the utilities, Is some rentals what's both information you it backlog it straight construction? and driving

Stoyan Filipov

say, would haven't customers above, They mean all really utility be a slowed always the priority. you Mike. run I I to down. Well, when to of has talk been maintenance Utilities, continues fleets. pretty strong that

also the say is and transmission think right that is I strong tree-trimming other distribution an would pretty focus. I industry. area of development the area now is

really saw on to where safer a tree seeing side that's knuckle knuckles demand a a the can of easier and the manage. lot for trimming So the becomes put booms and boom, because knuckle we're on of lot you end

area other be forming. booms The for knuckle would

it's is good area, lot that's example, a in, of So happen, to to business, boom couple sure, then and ready with of already in the managing think Midwest And Residential, for residential. in get have and honest going be a infrastructure the on the business. now I their dealers down inventories, Mike, in forming you, job they've also that for driving straight And the they're where next really I months. place think started. knuckle on our going replenishing demands mast development to they're I'm are done a

extent. So are of about the a helps backlog that I areas. obviously We think certain to our kind talked our and deal delivering we are those also on, that government

board, whether it's kind our all to straight mast cranes, with across the So boom you, of honest on it's knuckle products, be of cranes.

about be out of crane truck-bedded aerials, a very really, We really aerials now. job. in Our and Valla, buoyant revenue, doing demand doubling talked are Italy to good continues electric the right and almost they're

I it's board. of bit we'll see, but I guess, the So little color, think Mike, across a

Michael Shlisky

the to final And that's your on turn of some I Steve. also commentary. wanted points margin great to color,

You've taken the be it baked bit quarters, looks out like last of and that XXXX. in fully of quite over costs couple will a in,

the on materials. cost some raw the same the You and you're But you've of Can seem some to of business. to got challenges have availability acknowledged more higher out sense, that I is would time, talking at your about margins get to in also it. profit of materials you net-net start basis, kind on a a And might some for do when see a us to give XXXX? up? chance you that any of as timing expansion in decent show appreciate some there

Stoyan Filipov

Sure.

year. it talk right tackle that all how I'll see progressing availability me we're that the margins challenges and question and turn over and with kind of then just Joe the we supply, now Let of about to having to this rest

day supplier. and we helping we components steel X involved I'm have be message time. in get is and in in we team business. this a we about of don't as lot very that's And we're making day. always sure place that's chain So we ramping supply and have. We that we've carry team a And had that always on challenge. right? right any think steel movie We've to on many delivery on. it And on strong have to what issues before, a now, We're can address ramp talk But is that up, I suppliers, challenges seen the I most facilities. cyclical would we're going my to a keep calm to up of our say

several steel suppliers. We have

So we are now, a other we into jam, find run end the at certain become opportunities opportunities but think places. go those if And to and do the right challenges, I of there day. go

supply look, with of the building thing time, end million, to chain lot and the to right components this to we to able second forecast that. in we'll So going the of we're we're And the it's at better is backlog major at day, that a nice is get any business. third sure this I $XX-plus there on that's and in anywhere quarter our now, say, be stoppages fight to year. mean a what make hasn't day-to-day our been that But do our job. the line the

process. benefit a past operations us that's So and -- planning months. we and sales our XX our will the our forecasting benefit And that call haven't what a I in had that's manage help S&OP, think our that we

on components. And the that's Joe, want you to take side, So that? then of availability kind of on margin the

Joseph Doolan

about Yes, in the across percentage growth margins. on coming PM, of a bigger backlog, Yes, We coming for but the higher fourth that is the is and from talked all at the Mike, we're of that's quarter. businesses, XX.X% generally Steve. from margins, fine, which have that about much

a trend out think next So be. the upwards look quarters, as in we what into we're I gross several slight margins will looking at our

Michael Shlisky

Okay. Maybe Tadano with with into Asia, one Can other any on just made the product? with just progress or the own your one you for me you've expansion hit here. us either --

Stoyan Filipov

Sure. Sure.

several with in through on dollars this We're So into year, Tadano first mean hundred million-or-so thousand I would went the I've Tadano leased. very couple our I be been plan. is doing of This to say, Tadano revenue from calls, work is Australia Tadano. team. plan year with all, expand mentioned a the mean, of we'll I'll channel. start we I the And good They've as into $X the Asia. above now with the team.

back and leverage down, Middle yes, Middle that as I East only So we PM going with And also then, East was prices with a for Middle I the dealers the are starting oil Asia bit to present, continue but is the Mike. And that well. started our much things to increasing, mean, in as other through say but knuckle and oil possible, boom. would products, up not pick businesses those and East in the we'll have have us to gas on come are

state play. that of gives hopefully, a So of kind you

Operator

Koranda next comes from Matt with Our question ROTH.

Unknown Analyst

This is [indiscernible] Matt. for on

which but down a at PM way about backlog, a backlog margin, maybe to a of to margin? for of see year-on-year. quarter the is see looking can kind understanding safe your And where commentary, sequential driving just there PM the mix higher-margin is gross the on, little ask Or at backing bit least products, of mix, the in another the Just it we front the stand? sales assume gross jump higher the talking

Stoyan Filipov

Sure.

I towards to -- XX% at margins the I'll mean, have And the put trend to X. that? your as Joe shift. So you'll happen to to we'll that this will point, I towards way. portfolio you to it's it over going overnight, XX% the us going end target. Joe, a see to we course of the to the want It's be start And day, trend year margin of not add with that the continue shift, sequential to think but products. higher-margin anything it gross start to

Joseph Doolan

No, right, Steve. through the be think we that's backlog. right, jump but a of I we're work way think our I And immediately don't won't big growth you're that it expecting as -- in more a gradual

Unknown Analyst

Really kind to just the a of quarter things, forward? is million it's pull safe And $X.X it. just Got side on fair SG&A on of of a to say kind helpful. OpEx it is like number a

Stoyan Filipov

But expenses is to we today $XX obviously bit. don't going see And XXXX as Yes. percentage you Scott on for million. not of we'll year company. add down. revenues go SG&A We that answer a grow variable the grow as about continue add a some lot line, look, SG&A to I'd top of growth would have a to we're us. be a ], be going is [ the lot question. change our will obviously, There's need to the how And to SG&A of the that

as cost in and benefited of Europe, we reductions the the would see a So say In equation to restructuring XXXX. But number Joe, will Joe? will look have. And obviously to that's XXXX, XXXX, year. at we that help I North we we XXXX grow we a in the program other In restructuring did to think, could did in also us where start in I so save us I and of that's we is program that piece continue on. is and to good us that money. pretty objective count kind think America, benefit this

Joseph Doolan

that's think I Steve. right, Yes,

what the with past think expecting. be what had and I we I we're think will in that consistent

I So yes, change wouldn't that.

Operator

to [Operator over Instructions] will remarks. closing Filipov the I call turn Thank you. now Steve for

Stoyan Filipov

and -- will everyone we're Thank the going and you, your business to attention on today. our to the We Manitex. your is my appreciate and And that you thank message grow call to you, do Manitex globally, drive to Stacey, forward for we time business everyone, move continue to profitably.

safe Stacey. you, thank out you. Thank there. you, and So all, Thank be

Operator

This today's concludes teleconference.

time, disconnect may You thank this and you your lines your at for participation.

Manitex International (MNTX) 11 Mar 212020 Q4 Earnings call transcript