MNTX - Earnings call transcript Q1 2021 | Manitex International, Inc.

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Operator

Greetings, and welcome to the Manitex International Incorporated First Quarter 2021 Results Conference Call.

During the presentation, all participants will be in listen-only only mode. Afterward, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Steve Filipov, Chief Executive Officer. ahead. go Please

Steve Filipov

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

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

let's the cost The continuing team keep quarter on another good team safety of I global improvement thank to X. begin and on delivered of for want focused Manitex and to Now, delivery. quality, fundamentals slide our

a With the improvement. revenues this demand. recovery over XXXX the in fourth $XXX to and are meet a of Our quarter healthy in ramping right EBITDA all X% businesses million trended we of of global quarter our with direction improvement seeing are consistent up over markets third and backlog, consecutive

we work we vehicles strengthen starting in growth overall, protocols COVID-XX safety periodic mast starting North seeing platforms to our markets develop growth. to And have our XXXX American now our an the growth to straight to electric continue to Our return turn shutdowns. with in of is traction. trend seen and But lighter businesses are majority booms, perspective, to around, a transformation area our knuckle see strategy gain and From business, significant and we operational beyond. positive

all ramp, with increased pricing meet of We are we availability across up are to dealing demand components. And businesses. as of ramping the daily and challenges we

our experienced are million balance past, will as feel liquidity We further Joe we team, will we dealt total solid mitigate and in Manitex ground slide we availability, and with for to is best and an on sheet, growth management on future with but $XX who the confident we in our challenges Please credit them these have can. turn X. has comment plans. cash

performance of dealers our mast if utilization fleet is have And rates highs. to XXXX. the improvement our in activity the markets healthy lows of of notably our after deterioration. pre-pandemic Customer North in of our QX of was an dealers in are American some businesses utilization at growth Rental of the at which several improved the the for indicator America North these a most quote market serve. improved in activity. was all and seeing are north market straight not improving. a sentiment all Many, we driver experienced All expected know positive market, is Anecdotally, gone quarters is XX% of XX%, which sequential of main crane from of products signs of

management. order Our we most traction, for gaining North tree growing seeing articulating But the utilities, care, with waste lifting market importantly, follow-on is in starting Manitex and sales also customer. crane in MAC forming or are military America team specialized a additional an

PM the the and in from oil have exposure and with past now and growth products for strong also Chile mainly to European very led showing team the XXXX but zero-emission sales France, the continues products the Our with But to necessary is Last not for North in our increase top markets, by at traction Group our our we distribution for businesses our growth grow X.X-ton this are technology improvements as management team least, are UK quarter. about right lifting direction launch we European to markets crane for in make to of improvements and Demand the an cleaner globally. plan, top few market geographic driven steel Each these we coming new from growth demand hold excited we a and show continues demand Valla products, to in deliver backlog seeing markets with the and year. our Argentina, and PM remain implemented us. Demand good Spain months. seeing for aerial sales commodities, is positive in us. Italy, taking are all trending and our this which gaining new America

European large are units market. the in received Our placing them rental their first customers and now

manufacturing in team warehousing Valla nuclear facilities Our industrial excellent with the new making the applications. US industry, inroads customers and in is

business with products to have growing several will this be year and upside new We these this applications. more launching later market meet new much

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

Joe Doolan

Good X my and the slide. thank reflect today. I'll and quarter. Steve. financial call from afternoon, everyone, X, X turn Slides our slide comments Thanks, the and address you joining to Please performance for for this

driven quarter $XX.X to the PM in increase straight QX fourth business. Manitex our million, quarter the of in revenues The in higher were with by of knuckle an compared Sales for were our of boom $XX.X our at X.X% million business sales increase mainly was mast XXXX. of sales for cranes consistent cranes Our the QX.

as an million improvement per QX, The in tax net or per million. The quarter improvement to gross $X.XX margin $X.XX was million, QX. net by Our adjusted compared QX. increased higher driven share a fourth loss million, per was of of The income of in was to million first per for of QX, due compared $X.X $XXX,XXX to I of sales the $X.XX $X from $X.X loss loss loss $X.X for net $XXX,XXX. net share a loss and lower $X.X quarter $X.XX share share adjusted was mentioned loss $X of million loss or expense

with what which tonnage higher or by unit. $X.X typically the QX. mix US consistent that and $XXX,XXX quarter. quarter, higher higher of cranes the margin have than fourth The the is by quarter was in higher margin. offset a The lower sales sales the in the straight international million of was for the units, gross to we experienced Our The of gross sales materials due sales the lower in increased of US our from cost Manitex skewed margin million margin gross driven business of QX, was gross gross for $X sales primarily increased was mast in the to margin percentage XX.X%

sales see represent growing As gross revenue. our you the portion as higher can from trend our to total continues a chart, margin of PM

need and availability As costs has that are steel situations noted and and doing increasing be mentioned Steve we throughout been the as as are that. chassis supply monitored such industry, challenges to chain

to QX were Our a offset to leverage global purchasing, the excellent were million Increased revenue build and consistent through sales quarter. XX.X% cost. compensation in lower expenses all of we QX, and incentive in insurance sales in QX again. starts Operating quarter, by consulting for of percentage environment, XXXX. for increased from the an recorded are Operating declined quarter able capacity manufacturing as the base, with our the supporting to expense XX.X% doing existing job this expenses expense as expenses teams managing were $X.X as during

straight was and quarter, which of crane We an increase million, model. of in fourth our XX%, is increase sales. to reported or operating by or the prudent will sales lower a control from our maintain business. $X.X increased adjusted or percentage million $X.X was action continue in sales of EBITDA SG&A EBITDA $X.X Adjusted to take million expense of driven are as This X.X% The sales. mast targeting X.X% of

business million. by and took activity approximately as backlogs from was from of increase nearly more nearly higher that to than crane to aerial XX crane mast increase XX. XX% increased order April represents XX. compared March XX% million for backlog work $XXX backlog articulating Our Backlog driven December platforms units. This and a increased $XX was across by December This most increased has by Straight XX% December. orders in

foreign call and and covenants. The a meet debt the from to the company million short-term next Net XX through each from revolver. The $X that million cash all traditional and net of the representing is million $X increase bank and working will Now million, update end, We open for with that, compliance $XX small back that a consisting moving confident $XX in at currency debt $XX XXXX. the liquidity debt increase was of financing of movements. company obligations on quarter by consisting At lines a in had and turn credit now an any are March XX to others of of months. slide million facilities. driven the to have capital over year-end, I revolver million seven approximately was increase liquidity the other Steve. team remain cash, QX, scheduled debt available $XX in approximately these With will

Steve Filipov

future. us remain health and slide mind be have continue all Thanks, COVID-XX show top our long globally, will safety at to will outlook still Joe. to a vaccination and eight and let's of continue to turn of Please rates team's about way And the to for turn attention our for we for go progress to XXXX. our Manitex. while we QX vigilant

commented right is results to margins. to to to still across what challenges with we our expect any is we're actions demand, have from current over and $XXX and times not this gives with pricing excited we issues necessary steps and customers million have coming that much to mitigate confident taking We're the several also all today, working improved over dilute up the in meet be demand XXXX volatility growing taking in As our the businesses. I'm markets deal our confidence of to backlog dealers our to and And XXXX. arise. component management overcome, record all that visibility ramp We see us we but team our chain to this supply as financial

products to forward. Q&A company operator, the focused Manitex lines open challenges you the opportunities turn and larger, a for keep delivering best diversified session? more please will market the We going more profitable could the making and that, to and on With

Operator

Please line Instructions] with go Securities. [Operator Shlisky first please for which the question, ahead. moment you. comes Colliers Thank Mike the from of One

Mike Shlisky

Good afternoon, guys.

Steve Filipov

Good afternoon, Mike.

Joe Doolan

Mike. Hey,

Mike Shlisky

handful but It couldn't eventually, A question because you what about a you may great, of has are you out April quarter is chain? a demand, ship really or have stuck have XX. end but backlogs there end any the had, you wish there? strong way big by perspective with break or due in that both cranes will looks of to could been, are topic revenue the quarter, issues backlog. unshipped the come you quarter kind the there of other and chassis missed the just from Is supply availability of the still backlog in can A

Joe Doolan

Sure. There the dealing its chain the we're Sure, them perspective here daily I'd Mike. demand honest mean, of and some in much the to you, wasn't getting I through And production really areas managing that from across with the quarter, quarter. strong driven, supply across middle that a We're board. we say, second first demand missed with are there But sitting board. challenges. the better. be are is still Yes,

boom I are think demand. still the all trucks, we booms, high knuckle mentioned, its Valla, in even aerials that and today numbers whether

care markets are are bit utility is go to Obviously, very tried North strong. residential which is a up strong. I market to which And housing the about strong. continues markets So driving talk tree America little The those. still

So there. is I demand the think

little obviously, Now, lead a are longer. bit times getting

feel backlog customers that are we good our So -- be people getting but of that about are pretty strong. of ahead ahead continues getting to that,

Mike Shlisky

the statement? story, fair watch you that we to And faced any third mentioned, thing And it be Is then, major of have theoretical quarter monitoring you're just challenges for of second supply not something is kind a the just but you more should Joe definitely yet. or that actually or for? chain about concerned a here,

Joe Doolan

from availability volatility in would buy I would we steel forward opportunity say, to had issue. And call a delivered of from I you, two would say, those bad operations we an being suppliers. now at And about the talked days that -- perspective No. steel been suppliers. was an first Mike, I I'll quarter has actually too Sure. from I say delivery our our one yesterday. the on suppliers we least early. took tell steel the not on

great have job I a talked that, us positive I pretty in I demonstrates we're confidence up about is ago. a up. place where always even that's there's supply. EBITDA all too that we X%. good be in I and we are that thing. are. managing that. And do we I said, we the bad. that to turmoil doing all think The about, the today something backlog is didn't And is Sequential missing So quarter think give XX would And team up that through parts versus as And say manage those the first management that shouldn't months our feel leading XXXX revenue And that bad. we indicators is think

Mike Schilsky

Got it.

the has that to on Sorry here a is it straight mast lines mainly talking old just over again, also you to last as years? but XX the sure companies apples-to-apples. back backlog knuckle a and that that and other obviously five-year about backlog. on based the own, harp you want Load that make that for past. you're in on more question high when and boom. or to ASV history The five-year one Are high the just just I own that's April is you current backlog used the on it's XX? to look saying April you today, The King used Is companies five

Joe Doolan

So I product No. line… the like-for-like, its say right? would

Mike Schilsky

Okay.

Joe Doolan

-- we're company the to after lines we ago comparing much just point, was that. that back different years five five the … product have we your went

thought a we So that good comparison. was

Steve Filipov

that product exactly we right. That's then. to Yeah. had lines Yeah, the back compare same now we

Joe Doolan

Exactly.

Mike Schilsky

sure. making Just

Joe Doolan

Yeah.

Mike Schilsky

story across in here. for me, so you And XXXX businesses? mentioned is the tailwind, for multiyear multi-year kind there the maybe a positive had gives a one of both the that Steve, last What beyond, and you growth confidence potential

Steve Filipov

XXXX, customers opportunity markets pretty now. not backlog us gives I the that, XXXX that products think we that's are we're Well, about growing. booms, before. substantiates right say, positive the only the a markets. America XX,XXX -- truck we we've deliver some in, that boom strong knuckle that should obviously the in I confidence more share up. low-base. markets growth. but And that, North globally us grow a We're to North the for to, market a There's in build, the business end -- that America as from the see knuckle talk boom we in pretty And in Remember and we The the units we're is in in ramping gaining mentioned lot is coming

to zero up the and around the feel or I've continue that on as mind units. good new just is that stabilize should and you So that we're coming is North units just in Valla to growing products. with business, in already infancy. low And in its of in in significantly launching going X,XXX backlog. our is to grow. that so business mentioned before, business America we're X,XXX which we share have there. a emissions between, going ESG Aerials mentioned really is And really everything traction And we off XXX of Then seeing

XXXX the is XXXX that that, than better to focus XXXX. that's should be have XXXX. At pretty And going than today. So least confident I'm we be better

Mike Schilsky

so Thanks pass on. will it I Excellent. much.

Steve Filipov

Great. I appreciate it Mike.

Operator

Instructions] [Operator

Steve Filipov

further Is operator? there there Questions? anything

Operator

Securities. Mike with We from follow-up ahead. a do go the have of Please question Schilsky line Colliers

Mike Schilsky

Hey guys, just on going, keep phone if I'll while here. the me it's we're

Steve Filipov

Sure.

Mike Schilsky

grow Curious, can in to how with it's going of update -- on? you us efforts Asia Tadano How and there? kind over

Steve Filipov

to a had we last big year-over-year Obviously, quarter six East. think Yeah. the have open the because in on to markets I months. the mentioned first Tadano, closed the shipment, down with Mike, eight we Asian been we're I'd Middle revenue say, which past year

bit mentioned would I moving about, these need off. okay, still to but see the into working with the more to on We're say, for there are Tadano team. I how take it's it's, plans little runway And going Australia -- we markets So still a that.

in Latin going it. business. ground we're us. the a boom the the again real gaining America, markets So America, At certain to day, of to are those extent Middle keep we knuckle And end working the see Europe, East North focus for

Mike Schilsky

Okay. it. that I it. appreciate guys. Got Thanks it. Well, was

Steve Filipov

All Thanks Mike. right.

Operator

closing no turn presentation back you. There continue time. this to are the the and/or at will questions further now remarks. Please with I call

Steve Filipov

much are backlog got your we we've Manitex. environment. you deliver operator. And $XXX beyond. Thank thank interest today. feel But time about Okay. very where in we complex XXXX a feel and again, you for over in appreciate we and million a business We we'll everyone your good to in growth And that like and able confident strong be

So much. thank all We you appreciate it. very

Operator

And for your call disconnect you conference the for conclude please participation. thank that you your does That We line. ask today.

Manitex International (MNTX) 9 May 212021 Q1 Earnings call transcript