MNTX - Earnings call 2 2021 | Manitex International, Inc.

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Operator

Greetings, and welcome to the Manitex International Second Quarter 2021 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Steve Filipov, Manitex International's Chief Executive Officer. Thank you, Steve.

You may begin.

Stoyan Filipov

operator. you, Thank and interest ladies thank for you Good Manitex gentlemen, International. continued in your afternoon, and I is our taking the hope appreciate time we everyone to safe and listen to call. and healthy, everyone Manitex I'm Steve International. Filipov, of CEO with take through quarter will update And CFO, announced today. the details you today Doolan, the is our me who of we financial second Joe

Following the line up our will we open prepared comments, custom, as Q&A. is our for

will or call, be or our release replay a Please XXXX, telephone this the XX with replay be until see we website our for and available instructions for XX, webcast August cover for available days. slides audio will broadcast

which Slide company. on which factors subject you reminds to our X for discuss the statement, associated described is with harbor to we our is you change many that filings, in risk can further safe refer details everything and SEC our

Slide impact let's thank executing delivered QX With global which and update. experienced million was now The since begin please adjusted our for and So quarter, revenue year's want the and X.X% in quarter, the on our with organization get for business within the excellent I team started Manitex of improvement plan. of fourth X an everyone pandemic COVID-XX. quarter significant second consecutive EBITDA the margin, peak quarter $XX the global of last it we to

some though not are goal the that adjusted factors which EBITDA, control get there to for overcome XX% within our of later are we'll forging ahead reach, longer-term in our towards We now seems us presentation. in be to and hurdles to

share, our for mast. cranes more favorable PM an adjusted as schedules to or excellent net the ramping bottom on customers. needed million Manitex the we at demand. mix straight with and did in income at per would where sold higher beat I that delivery our higher tonnage our $X.X of were production Product Manitex to add our businesses sharp an delivered up meet $X.XX a quarter focus team procuring Maintaining we job we line,

the a how a XXXX X-year Consequently, in the will high to anticipate finished higher sales which XXXX. we end good and look, the strong, half visibility quarter remain have of of $XXX of million, back we and since as year backlog globally with production nearly the continued of the and beyond. and XX% up second half we Orders and is strong

Looking for we a the from how that XXXX, are has plan multiyear seeing at business Manitex. since the developed changed we strategic now benefits

and growth, We area sourcing, boom, our are and sales have dramatically improved from growth the from improvements. Valla cranes. new platforms And work margin facility contributing and expansion European other also knuckle market penetration operational in introductions higher businesses to now product

have long business, in no For that trailer nor time tank those anything we of business been you the are holders, that or longer are aware in is crane likely that related. you the lifting

to with $X to progress briefly still we're to consistent of respect we've particularly supply the clear is made While and overcome, earnings the some want we chain. mentioned earlier, million pleased in be there hurdles I quarter, as with that our over

steel We due lead in material and systems see such hydraulic continue availability, difficulties truck to as procuring chassis. to and times lengthening some

the the near-term to would products a an job The are comes but picture tells in few demand supply volatility in online. to in built what worked our is out could supply more the the takes the risk that quarters. until done there results excellent today be as bottlenecks chain next some production reality get to to time have So say us we our bright, customers, doing teams our poses it while have chain deliver our and on that

Group has been being further comment a one cash cash the PM that would discussed of a in acquisition to user flow shift I our strong XXXX. but significant cash our in contributor balance will consistent since improvements the Joe of sheet XXXX improvements, the

Slide Please X. turn to

in the showed let businesses me start PM our of quarter, All with so improvement the commentary on Group.

stated is in And The is markets. improve getting units doing and market work the the production improve market products knuckle have our and and to we launch growing. we I've taking the efficiency product XX,XXX over boom global today, in As several been innovative globally. past, quality, new hold, are our is share

the We opportunity given the years. small that further we a in we markets, have most to are do in coming to here, but more player grow have

Our add share market. seeing I has the now in always the been market our have we following XXXX, started have year also improvement customers of large knuckle several and to prospects gain difficult leadership in in we max boom market across mass and American gains street market started a are the foundation traction, for North Manitex. the that and boom American And would strategy deliver good North knuckle XXXX. to has

continues at is to making equipment. for aerial to team ramp and aerials meet up and The oil demand excellent progress steel

made shift several showing of channels, have and in diamond the our investing core like in We of our in for all improvement to rental, good Germany Italy, and remains of business signs XXXX. to France we're utility the Spain, progress markets positive distribution zero-emission Valla with rough, support this cranes. rest the and the

larger and on-site crane U.S. demonstrations in several up our Italy companies product visibility through new rental rentals. and in the signed have to We increasing dealers

to trade products, in strong a cranes. for new France Valla our continues attended intake our and also in June and We be several order very show displayed

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

Joseph Doolan

afternoon, start our Good Steve. for the income you thank Thanks, quarter. the like to discussing for joining I'd net and everyone, call by today.

million was forgiveness Protection loan. $X.X included quarter the Program a and $X.X income second of million loan of Paycheck our benefit net Our

to net due income, increased million million. share by adjusted, and million $XX improvement share. significant or loss as $X.XX per net other of million $X.X is items, The sales higher QX's per of our this $X.XX from onetime improvement Excluding or was was margin adjusted. a nearly of This $X.X gross $X.X driven

performance reflect quarters. Slides X recent trends the and for our financial quarter I'll comments from and this the most my Slide the turn to address and X slide. X, in Please for presentation

$XX million Manitex quarter the million, mainly straight increase in platforms first an Oil $XX.X compared or sales the were Our revenues business, & business for of by mast Steel million driven cranes in the was cranes knuckle $XX.X our higher of aerial increase and quarter XX% our of to The XXXX. for in PM business. our

driven larger than QX improvement and just to Our for million million The XX.X% I gross continues QX, $X.X that improved margin sales was gross the to sold by sales higher Manitex in our our business the mix in margin. sales typically increased trend The generate or driven QX. towards margin which over margin The or unit, target $XX.X mentioned. of percentage gross of cranes tonnage X.X% of higher cranes higher higher quarter the was by than gross a tonnage XX%. QX

contributed margin of in Also, higher our PM business the our to gross the knuckle cranes quarter. for increased sales

from our you can in higher sales revenue U.S. chart, PM As total portion and tonnage represent higher growing gross sales our margin see mix the of continues a trend to as the cranes. reflected

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

an job build are all and managing teams environment doing capacity starts this through global of as Our purchasing, excellent again. manufacturing sales to

of quarter. increased quarter, slightly the were increased compensation. base, in the incentive our from for XX.X% declined percentage to the revenue we QX for from to XX.X% existing as million by $X.X driven as mainly were QX to supporting up leverage QX, a Operating expenses significantly sales in expenses able expense Operating

a We percentage continue maintain operating will expense to strive action model. sales SG&A of in our and take control lower to as prudent to

QX. Adjusted and EBITDA EBITDA $X.X knuckle X.X% is or consecutive X.X% than in as an by increase of EBITDA for driven was QX for of sales million This and margin for has more percentage fourth improvement, the the crane increase from The mast higher $X.X boom quarter is straight our double The sales reflects adjusted Steve mentioned. million of businesses. was our adjusted sales of quarter. the

platform compared high a in QX as year-end. increase a XX, is is Our to backlog million crane, nearly X-year and straight was since backlog $XXX.X first This a represents orders for XX% higher by nearly the from June XX% XX% orders Knuckle from mast aerial the QX. backlog crane and increased work of and platforms have driven increase the the by cranes which crane knuckle XX% increase from XX% aerial mast Straight increased quarter. in QX by has increased businesses. has

of Now moving net to update QX. Slide a I'll debt little talk for X. bit a

decline million quarter cash and the million $XX.X cash $X balance $X.X year-end. representing led The at at end, in of Our strong debt financing free international driven was quarter a higher our locations. for and million by over was improvement short-term improvement a flow to net from

approximately cash, available million June of as consisted the Xx than XX, million, $XX facilities. less to quarter had $X At capital improved working $XX.X on of the company and -- ratio $XX.X of leverage Our million revolver million of in XX. our June which availability liquidity

that The the months. team over and is all remain open are next the through We liquidity that credit meet our have any covenants. with obligations will and company in to other the cash lines scheduled confident debt others compliance XX

the turn call Steve. to over I'll that, With back now

Stoyan Filipov

equipment. preferred to how their close be to end our and lifting turn and exceed the we Thanks, our understand and markets, continue X. confident Joe. of customers can provider Slide and staying access feel in to improvement We Please their we're to meet about needs

outlook the $XXX rest chain we positive closures expectations for our balance supply million seasonal European given remains of facility QX. our our have supports and While in to backlog improvements, continued XXXX in challenges

production the year we ratios of have rest and liquidity of in global to the Our generate year. back cash balance further and working sheet enable strong and our us support the more half ramp-up, generation for the to our opportunity will capital improve

In We're outlook summary, shareholders, with for our Manitex support see on and longer we cautious the of And the a our global supply customers, are future ahead our going here and chain. be larger the given to term. much more shortages we brighter on us. suppliers building the of a

longer-term million us company margins. we moving to be EBITDA goals, are is in and $XXX sales a have our backlog strong Our XX% we said and towards with

balance some reality to not sales that the lumpiness is we forecasts global control. better that forward-looking quite And some and said, we've backlog, However, environment, forging see given beyond margins sheet, expect in is our the with time. had ahead which a we're that

the the lines open could you for With up Q&A operator, session? please that,

Operator

comes Capital [Operator Instructions] the with of ROTH Matt Partner. line from question first Koranda Our

Matt Koranda

be looked product the wanted to cadence mix, straight A bookings could the in may kind that sort you're thoughts it end mast seeing general Maybe maybe notable driving pretty be that could just bookings any that then some talk some just backlog. talk nice this bookings energy I a mix to if the seeing on this your of of that the about strong. by on is straight of you're maybe solid. construction you during month the if you like within little discuss quarter, trends could sound there market in quarter, backlog in of thread Maybe the any job could of if they did you side drivers versus see helpful. mast really quarter. And specifically, when you dealers bit product

Stoyan Filipov

would trends by good seen Matt, And question. Sure. of I as QX we've significantly, across for saying start since accelerated this thanks that mast really mentioned, year. market most on the the has straight orders. you the board,

the pretty shift pretty us. boom pretty of is has has booms been And which biggest there. really looking the think for the feel I the constant, Knuckle year, knuckle been business. forward about news and rest good through good I steady So

obviously. is say other Italy, markets well. would the were aerials perform And one Spain, mentioned Europe performing that continues very business that the well. to of Italy, some I in U.K., the I

then good significant was other And So growth Valla obviously piece we we're seeing that there. see the growth.

So really and board, from pickup order a demand across there. nice think portfolio, product we're seeing the in I intake

into of shift we've general a I'd driven some past, a infrastructure, of markets, there. the the mentioned the is Matt, that's Europe and stimulus just I that's And the driving of is kind given business say take utilities, knuckle If in as larger go by demand. going boom construction business, now our lot growth through the

of So it. obviously piece that helping that's

almost our at when the getting on dealers, look from the surprisingly our I you are market. we've commodity that a think it very well. And very for straight a pretty just has of Chile, customers base. doubled the coming got mast off comes doing product obviously, North of demand straight areas when mast market, America difficult XXXX couple then have there. more a been with we're demand low And to

very We that booms. have does of a facility installation knuckle That's there been strong.

booms, knuckle had think, our that's of max look think also and on starting more that's traction. into America I piece have a North of been, mentioned at customers strategy couple that also competitive it. knuckle you in new I to when the a significant booms, some get getting I

Matt, our sitting about it $XXX August, at with seems think I good So high I'd now, of summary, of just pretty right in like still And say in we year. here products million demand. the the the are backlog, rest the beginning feel

Matt Koranda

That's great.

Okay. are to tight I'm you relatively chain. And in supply certain currently dealers then are delivery know what But components in order to just quoting of curious, I cycles? What terms that mentioned of those of that have more the you bit challenges, current how hear would chain impacted a lead helpful little some be your to about. are times? And supply given been the kind

Stoyan Filipov

Okay.

competitors to our I'm be Obviously, So as going of lot can. to transparent as calls. these Matt, I listen a

that, to throughput deliveries. we a get I'll example, the higher normal all obviously demand our because think, than, lead in where that boom And the given of the still, there for I knuckle of about month But portfolios volume I and talk want So and chassis in is lot times a demand. are within times, straight business down is different moment. a current longer to see higher market, little The don't product. a lead mast the product

comparison times bad in think now at not in need competitors. I end our they product. day, demand, with and of right our too But the customers lead general, our And the are

detail. but Steel, with the Matt, is you, little with I'll lot gaps, would the mentioned better. On When quarter deeper I first a the getting to I'd there prepared we year, bit a steel. bit say, constraints, into this the we of spoke a this be go say, remarks, honest in of was

that's could That change, normalizing think I obviously. itself.

to we our team detail But to schedules things, good be I yesterday I valve out valve of a done But better had the meet And the production deliver adjusting Hydraulics, suppliers. blocks, of can right our of kind you person, and tell types our job to what now, continues to there our steel think our they team suppliers get challenge. get a really bit to going those forecasting that one a can to are through when of we in blocks. us. going valve we're around has

to products. teams work and obviously, with together at think on our have end we our deliver of to I this. So We the need able customers, the be day, suppliers to production will work the

don't working on be from biggest we're The a have of but I for continues secret all be America. honest chassis, of little that's industrial truck issue American listens not we And mainly more because working So challenge to on business the on North bit it, in that. anyone us, supply. a the that's today, being I with to think you, space. that and to is think easy. a That cautious that it's chassis why we're North we're

today. we the that think, that's have, probably largest I So issue

Matt Koranda

lastly, I I availability a given then price you extended excess assume have about I lead mean, and with cost challenges, some associated -- little bit freight, of could and helpful. times talk guess, you costs the Okay. just I And some that. other component That's some additional wondered if may

that. on? bit So pricing and least it that able like? look what's cost increase little pass of say Are about the portion could environment a at you to you Maybe capture a in

Stoyan Filipov

Matt. Sure, Okay.

offset Joe customers. is on transparent end maybe think bit. the be we're you, and mean, those our looking And with costs I'll I being objective over the customers. any of honest to a to the and commentary at But price with input day, our of forward turn start to it side, some our I to to make

customers working our then back understand we're from. with suppliers think those we're on as where our much coming of push can. And costs to we I as

of So best at that. day, that think the trying I is end of that doing can. we're all the the the balance team But they job to

At the on. pass I of net think and going our day, end that's objective. that, those to we're customers are understanding our costs the

we various production capable of of existed those in that as as QX, our think I of again, that. the constraints I we point, can. of and through given, all think, in tough we're to we'll of at the those we worked what further is forward mean, through recalibrating continue going in a environment. those some think it. QX schedules I of demonstration I are mean going think get with many Now good end have, challenges I inefficiencies, But And do your day, facilities. we're the I a to that to

trying on we're to of But there? comment do what kind else and want Joe, pricing to you dynamic the anything

Joseph Doolan

increase can only the to of regular and bit into in there's increases But the the obviously, margins like to to the minimize pricing, through Yes, to doing we're us, calls We've that, everything to cost thing to along targeting gross talk doing there, margins being I Steve, margins we a about as to a been we'd have we can it, try have. with we we and talk the to of know to as and but we eating team what are costs, the passed No. we costs have. add little much that's hit the can we're maintain is would try about push maintain it. we happening that that

Matt Koranda

levels, fixed serve huge the some does margin cost just should can half additional mix all expansion, a bit? to still a gross bit Do pretty in of margin we strong, you the year? relative margin necessarily tie just in on expansion shouldn't little absorption little backlog Maybe Okay. the looks given get help of see front the that Or the nice you we solid. that little XQ mean bow it up we count hold here, on but to back

Stoyan Filipov

Yes.

Go ahead, I ahead. go -- ahead, think Joe.

Joseph Doolan

Steve. ahead, Go fine. That's

Stoyan Filipov

the margin. business, going I Europe for in be there. going just Joe. that have couple performing potentially boom, to We've Yes, mean, of seasonal could we well. the impact I'll obviously, knuckle Matt, all those is the Remember, aerial chain supply in some impact I Obviously, over and of turn to those there's was headwinds to got shutdowns what front it a weeks. say, us, are the some very

we be in going have. couple -- think just weeks we're to looking headwinds that's shutdown forward. want And that the I to those I have of we a deal of to So think with QX. are conservative kind And

not the you lot getting off the I need of of north the also And level. we're did. of objective we're XX% to a don't add taking that eye relatively get But at we margins. that SG&A of we low And our growth to don't -- again, think SG&A see a keeping we

QX the do able there, that. of be growth between lot cost you to look But a revenue and Joe, to Just add didn't anything? to want QX, we

Joseph Doolan

everything No, The was Steve, to I you're on pretty I say, seasonality, increased was base, expense revenue. in much to to going anything that, the really add we cover on that's we got don't an right, SG&A, going touched know to you impact And need mention. the QX.

can as expenses the going So as be we revenue drive that. long adding up, we're to cover to not

Operator

line [ comes Our the Twins Capital of ]. with next from question Jordan Mark

Unknown Analyst

some Matt the and to Koranda which great which QX real see gentlemen, you the $XX the as supply to X the margin spoke it related well. I sales earlier range some have So on income there was net progress a to gross call shows report, mentioned questions chain, in bit. really in movement and million

more you on can within areas little other perhaps touch a bit some that. So elaborate and

within type in how situation maintain trajectory may And with here, your component if at how question you you position? with is, we're availability? X-part were efforts this navigate is connection control folks anything, and this did a So can that of in previous we respect whether And your what, terms in here growth a nice of at play Terex when to on? your

Stoyan Filipov

constraints through I how start it. Sure, those. we're and working the question. really for Mark. the Thanks with I'll appreciate

of facilities, have our do our we we obviously, chassis, own own columns. where in So vertical our booms, several some our own integration make

remember, vertical integration buy the availability we the and XX% get business build. is helps steel of that of us with model a obviously there. So we But what

work a So there's lot of supply on chain.

months places. finding that team in on the having work the not past other alternatives finding and alternatives, a think I good has single-sourced low-cost job XX to done components, really

And helped think I that's far. so us

we been we've I really are worked Mark, I mean, of So a on, and what that a strategic those mentioned, that's in the lot XXXX, things done benefit. that

can comment one to the I I think, as look, of think a was the you this hydraulic what things and can our other we're working suppliers day, couple last on best ones. was floor components had obviously week, I them pull, And off things on is There's of come work daily as at our the meet make about addressing we in. we where yesterday. end the demand. the And of management. supplier the those there we can, we're into sure then and do that with production hospital products can to say, pull you the And

we those. of down doing that past obviously had but able things And improve confident lines not to on shortages. are shut of from experience, everything up, had your had comes up facilities. to I through on that with a different now can I that pretty facility we're doing not lot to manage chain production And production we're those availability be any those about say able would be supply shutdowns that obviously to any things of as all to We've we terms. my shift the material to working till feel our any comment our We're

Unknown Analyst

venture say work are planning logistics and procurement it's your phenomenal know doing I because tough there. out to and that I group

Stoyan Filipov

and do, done. get It's Mark. are got hard hard. that sure, It's things But we those we'll to the for

Unknown Analyst

seen the it's not surface. on Yes,

people scenes, are Manitex. very working So some the very, at there's hard that beyond

if if company investment acquire you investors it strong to So -- come you looking that make with. financing? acquisition? Would want came could enough the want and stick to acquire, what And as down assuming there you your it? strategic an so, a is inappropriate to well, to we support to operation appreciate the key one your suppliers, you or in would presently that Is of

Stoyan Filipov

Right most suppliers. see don't we as now, obviously, other They're -- I our at, are there's can nothing ramp would need They're solid. Yes. up to can right of trying well. But much to and now that they Mark. that supplier. I financially supply buy as Sure, to to mean, I a doing as say look Mark. us suppliers need we

I if but think, look, sheet, our had we that's company to, we And the strong. is financially we something that balance not could, today. given need to do

mentioned in I a have bit And we the produced the that to knuckle source any ramp-up we're integration not of welding vertical us bit quite I And a the get remember, because mean, little we certain all has single that that business a Romania suppliers. of boom many actually to in our have. components. helped Italy, does that's the facility

say us of I'd there. kind So helped that's

We make again steel. And us our as own booms get in I we Georgetown, that's Texas. the helped think

a chain is say I that in imminent need front to supply with us, Mark, from that we nothing perspective. of deal would So

Operator

does the the turn conclude management closing over like to to This comments. floor for back question-and-answer session. I'd

Stoyan Filipov

Everyone, your your time and operator. in today Thank for you you, Manitex. thank interest

you, we with end operator, a safe. business. everybody. lifting or Please larger your our out think and it. any Be about Joe And Thank good and We into questions. we'll Manitex that, to I to more myself for And grow global you, progress follow-up thank the call. reach Peter, for continuing help. appreciate feel

Operator

today's conclude does teleconference. This

and day. disconnect your Thank a your you now. for participation, wonderful may have You lines

Manitex International (MNTX) 3 Aug 212021 Q2 Earnings call transcript