MNTX - Earnings call transcript Q2 2022 | Manitex International, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Manitex International, Inc.

Second Quarter 2022 Results Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the conference over to Mr. Mike Coffey, Chief Executive Officer. sir. ahead, go Please

Mike Coffey

Mike Good you interest and earlier appreciate in join the CFO, which name time operator. is quarter, me you Doolan second the Joe you and financial for today. to our is My call. your Manitex will our announced and afternoon, you, with gentlemen, today take ladies who thank taking Coffey, through Thank we International. of We details

A to custom, our release line open remarks, call. a our statement, which happy also will will be is this will X for available Following reminds our and our for for including the our you Safe days, questions. for Harbor we that year. see available is prepared and information, telephone the Please brief for slides X cover presentation replay the we be as next website be described you other details Rentals first financial everything call, many today's change is SEC second leveraged our our company. covering and will as to call, further for our the XXXX to This results, key On we business which we results. subject financial on associated for our focus refer on with is margin in our filings, risks discuss the drivers performance, Rabern quarter being including highlights, shareholders. can trends earnings Slide

in performance goal right Rabern the our XXth on operating is margins. XX% with of anticipated, Rentals be The may of we XXXX. Rabern that improve You Rentals acquired aware what to April supporting line we

its markets. ample of many to outlook potential. was XXXX. having impact and I've and The have improvements XXXX our meaningful operating had EBITDA Since customers our and me hard for high-level a company's feedback and these The of take and sales direct meet our make and we spent will its are efficiency to only for to above company, full Manitex earnings with the and April have I've I we fully my with in Manitex base share realize getting for months X a goal both position showing is strategy with improve employees control, for to introduction time appointed company, identified months implement with growth. to and a profitability and financial ability leadership, gaining to to not in confident of the making allow their has are report second some acquainted positioning the customers, to changes cost performance key Together our improve help past improve I'm are this that offer to of results, our senior our ourselves their entities. team adjustments margins. between we pleased As CEO is XX%. capabilities. tremendous the collaboration opportunities from company fortune in to growth the short enviable growth already adjusted others and operating and most the April, with areas X going again. are also forward. I stated moved and performance the the Joe customer call working

the talk about let's So results.

meaningfully company's by backlog, was as sales during our continued improved sales in adjusted both of and gains also quarter. highlighted percentage the The quarter our the a second EBITDA

indicators key fronts. to pleased these with positioned well also our As that and of we discussed on we year. in to see the today's press performance And these progress believe release, other each improvements we throughout are continue in are

of third results the the QX reflect entirety contribution since to beyond. financial Rabern impacts the and for Rabern's of look April Our Rentals We forward quarter XX. contribution positive

EBITDA challenges attain Encouraged of into heavily our million. to our specifics Despite Joe organic of to performance. adjusted of our these increases throughput that year-over-year, EBITDA closed financial are An sales. in were stated few increase at supply will supply our already consolidated our chain up industry, our consecutive I a affecting XX% quarter capacity Texas at second pressures the sites. our indicates accelerating X.X% sales, up quarter $XXX and margin constrained with goal a speak entire Lubbock, market. move Rabern by Second to efforts Manitex's results chain. quarter-over-quarter throughput manufacturing review sales adjusted the includes capacity is all of record able double-digit results This backlog and to we were the moments. are and to in inflationary Despite expansion operational team Rentals announced the

same Our and increase deliveries the response. to slowed has industrial suppliers and costs, every challenging have by its This forced been in company pressures, capital impacted working business. the inflationary impacted materials

For first shipping also years, prior but X more example, International XXXX, delays of to during were unreliable and X.X the performance. months than expensive costs Xx with encumbered

outlook. shortcomings price they levels date, several variance, however, qualified expanding and via list order The United XXXX structures. meetings point recent reality, by and performance We In the and with not customer our of stated, or take previously possible of the our any or reasonable. will X are to have in order changes marked sentiment, chain supply obtained for the it customers' in cost to recent similar see orders in us in surcharges contrary, market. large to supplier to increases realities recession To the we stable suppliers future States or the as customers at forecast inflationary impact the softness addressing quarters where pressures economic XXXX. are the seen indicated more To

We it prepare but the unknown. we have is we for cancellations, any that not believe prudent order only seen also

have now, and turn more our to customers to that Joe that But suppliers comments to I'll to financial We end. working our Joe? over are it discuss like with performance. for our on later. I'd

Joe Doolan

afternoon, turn Thanks, everyone, to joining for the Slide today. presentation. Mike. you the call in thank Good X and Please

sequentially acquisition report early from driven the Rentals versus of in period. mainly you we the the prior second straight up $XX.X an quarter April, in million, States. in an financial the cranes Rabern from which were Rentals euro. and include in our of partially Italian which articulated quarter were having reporting also first mast performance, in increase cranes closed that results as Revenue this These is lower first by year by for may our sales United increase was XX% from was revenue business, sales driven As Mike $XX.X of lower offset consolidated noted, recall. Improvement, was the our by million the Rabern

XXXX XX% reflects since end which of mast platform Our articulated crane, orders continued backlog within record year-end. is XX, June is the was cranes of than higher and strong was up This businesses. June $XXX as it million XX% aerial at a straight and the

has backlog Aerial than year-over-year, year-over-year. have while Our increased XXX% year doubled straight period. work cranes are articulated prior more the mast platforms since up crane XX%

was our in quarter, margin strength The is $XX.X highest continued anticipated. in had indicative up second the the the flow. is in Our prior million for book-to-bill had level the of year. profit as we of Gross is and ratio trending year order of XX.X% quarter gross X.X:X X% from a we've

that these versus of along with have due and of was $X.X higher X.X% or in steel aerial contributed quarter been to quarter other be efficiency improved of quarter supply $XX and offset continue form million sales addressing quarter turn approximately increases the chain Rentals a $XX the XX.X% were Operating largely anticipate operating higher for quarter. by income profitability adjusted $X.XX increased million expenses, of sales, inclusive margins and of line sales we Slide were and operating of from in costs. but slower, pricing with acquisition surcharges or or XXXX therefore, work million Rabern oil Rentals Net of The points expenses at $X.X could X of prior the 'XX impacts or to represents with the EBITDA million be the platform. $X.X or in The QX. operating comparison and we million inflationary per and margins with the costs, the be for of and nonrecurring materials results extremely level logistics Rabern also manufacturing loss year's improvement of million second pressure items, in second with the and is adjusted of or non-GAAP last unforeseen in historical 'XX. well and and for was manufacturing prior see and approximately positive these million Please sourcing $X.XX to results active a in for as gains. EBITDA challenges improvement Manitex expenses While for and our onetime compared year. for Adjusted to contribution adjustments $X set. quarter of sequential share X.X% will $X.X of the cranes million may contributions share of as per Rentals We severance last Adjusting $X.X to operating as for net acquisition QX year, to reported, second expenses. in our basis XXX Rabern inflationary

from the year Rabern Manitex million in PPP mentioned costs compared these in million of quarter the the net the included the first and adjusted and which the or $X.X prior XXXX. and driven of up loan, this $X income acquisition the or share As reduced mast of severance sales gain a for for $X.X million business $X.XX income forgiveness items, straight was net and for per to quarter I Rentals share previously, in quarter from QX have for Adjusting $XXX,XXX benefited over profitability is by includes $X.XX quarter $X.X earnings. which charges was earnings. million business. year's higher from cranes other Last per Net the

operating cost to increases put profitability price margins were was able impacted implement. by pressure on Our to rise continued it's and despite increases, that we material

was obligation. their prior to Rabern to to use of in of at million moving Net the in due $XX debt Slide was debt end up acquire The increase from assume the the periods acquisition. Now $XX.X X. financing Rabern to due debt debt million, and quarter the

addition, operations. equipment the Rabern expand have purchases to In funded business we

remain EBITDA the was consisting company adjusted and in confident and through working turn of now cash the our has will $XX the liquidity lines months, to back Mike? PM and company compliance Our facility. that debt leverage that that, with and The covenants. XX Mike approximately obligations cash we million, have liquidity pro ratio necessary the available scheduled approximately will credit to trailing U.S. I are XX-month forma all availability the Xx over call of team the in Coffey. With coming and meet is capital other

Mike Coffey

Thanks, wanted a X. to moment before turn summarize where of Slide we time things begin I take stand Q&A. Joe. the to Please to

with pleased how the are We progressing. year is

toward backlog progress our targets. Our margin steady obtaining and growth sales and

is consolidated this within are As Sales continued previously is adjusted forma quarter meeting EBITDA million of discussed, growth in we basis. at targeting Rabern's of Rabern reflects reach. revenue $XXX contributing results. with adjusted believe XX% to pro and our performance. double-digit improve expectations, EBITDA revenues a that to the also on We

our during Our intelligence which serving and to valuable construction this producing expansion the our for us and and in intention a the in industrial is Lubbock, and in and is to Canada. us well in results team engineering to of The share product quarter. the are operating are Rabern performance. post we integration and this to began overall address lines in target. departments Texas, market suited is attain feedback commitment. facility expansion the product acquisition design improving The rental forward with U.S. on our fulfilling reflects Italy. We Access in quarter's This Both Rabern are goal. and acquisition strategic Rabern's commonly their aerial North site expansion used committed the commitment, XXXX. remains work it underway, this preparation look and market to grow early included new this in industry. substantially directly this needed includes of meetings platforms electric financial for helping market proving product valuable The cranes are Manitex meetings American

beyond construction margins rental our the improved into general industry. focus Our extends entrance on

supply to address material inflationary delays. continue constraints headwinds, and We chain

our it's could our but important We weeks year both Rabern, some we to to see shareholders we'll attain up the August. operationally our well out double-digit see here. the effects off caution results quarters. are stronger is to as operator, the open initiatives in in the course, and a performance forward on answers. reporting look coming that forward likely you progress financially. for having to Group that looking We with PM be want closing of This by and please these mitigated seasonality to in I going lines do note With company, few as questions goal as to that, EBITDA a to QX some will

Operator

the is Capital. our And Koranda line of Instructions] first with question ROTH from [Operator

Unidentified Analyst

Daverin It's Matt. on for Mike

bookings to the implied stand backlog provide back looked color the half QX. really strong. So bookings seasonality quarter of where speak and just in for bookings Maybe on quarter-to-date and for the some year

Mike Coffey

Well, much for good thanks very a question.

So which was had this we really order sales. consistent pace with in through an keeping It's -- Mike Coffey. is July, value

with to again contrary. all of any a from changes in standpoint we haven't backlog. seen picks the change haven't it part QX to And So the order so light we seen order any fall. But the holidays and summer the forth. up back is at of typically in an because deterioration just behavior regard year generally, any in

Unidentified Analyst

Or almost there? immediately demand Rabern, is on are rental quarter, it's front? we then keep highlighted we up rental kind Any struggling reserved still equipment -- available. that of last And change is to as the with on helpful. Very it. Got

Mike Coffey

actually and right Amarillo now quite bit where today headquartered meetings the demand. we is team. of a calling I'm There's you had with Rabern from Yes.

As have take a as other at up we of matter customers. stage, fleet levels what orders. demand fleet record of does rerental -- we will re-rent filling fact, those And what temporarily from we to the traditionally, this industry

in So and operation operation year. of with a we early demand very have in our both an have to build expansion And beginning opening formal in has next open temporary there, do Lubbock, we good a light relationships been don't customers in the open the operation despite fact -- Lubbock we're that very, Amarillo.

Unidentified Analyst

Rabern Makes apologies And Got you missed if contribution anything I the but quarter? this on did guys earlier, provide revenue sense. for it.

Mike Coffey

formally think outlined, it's to don't you Or... I Joe, respond can that?

Joe Doolan

the presentation, segment but going going Yes, report our into I put didn't be we was to will the in XX-Q. information. say it information to, to I We're

able just quarter, But be our contributions the to $X revenue million since and of was over you'll Rabern. that's the date for portion the So see for Rabern's acquisition.

Mike Coffey

is at way it manufacturing quarter-over-quarter X%. Another grew about look to

the quarter from quarter-over-quarter. manufacturing of was is which most understandable, but So growth Rabern, X% in grew about the

Unidentified Analyst

That's half I just months. Rabern, Got how about of so January we're called the kind know it. as Rabern. still revenue But for expectations on stronger contribution helpful. we've maybe And touch for thinking before in back December, of -- on the out year the

Mike Coffey

we months it the we you any But I don't December and I January, to that December of after last and the X see because we're a and rental season, months. stronger up ebbing rental year want holidays those And month January then Well, and clarify, over said mean, being really construction the the seeing all. as see changes. winter from are don't growth month picks at progresses. the typically standpoint, light just

Unidentified Analyst

there. one And it. Got clarification Appreciate last me. Okay. the for

trended Maybe through. availability last companies since I In note think same? some a this earnings of the we've of some finally just provide they're that kind kind availability, how terms cycle, of chassis handful seeing improved flow chassis chassis seen has on we of commentary seeing Are quarter?

Mike Coffey

year. customers for orders. chassis have been of improved. the that anticipating some continue so and on to but with still our based improved, has through on held it deliveries. scheduling had -- our to The remainder There We're improved. our that. chassis in and suppliers by The has order the with up held will It's we're the book we both late labor are and seeing chassis regard of much not improve demand, internal that But definitely order up availability challenges

Operator

And Reiner we from Adirondack line with have Instructions] question do [Operator the Funds. a of

Matthew Reiner

I goals like goal? for you bit you you now -- handling flow? where can there? more business seeing of guess, start what's it I leverage, the debt Like ultimate your, whatnot? where cash a your your and generating think think little for do said just what's Can you do And Xx, out reduction goals And you lay get when

Mike Coffey

is This Yes. Coffey. Mike

So with question categories are let that primarily to efficiency. working Joe. debt going through me capital reduction come answer for The

the the address timing challenges and chain have we've to of amount that orders had that. of So supply the in had, orders light of

more address an the So timing. that's order is issue than to what and of working we have bank capital normal,

that through plans remainder that working that occur cash do the in something and positive, we months that backlog. additional address have really see see the capital. us as And of from efficiency that We opportunity address XX X working X had and or seeing to next as Rabern, you'd if to generation of that production have a to the to category, for an the year. the So as we've this X through and of We're good see normally, demands months X flow had EBITDA capital production will we the improve months. we've that

As far anything we're have we paying add? target setting, have down as gearing to very you that but do sensitive specific don't are Joe, we ratio target, a debt. to

Joe Doolan

-- the No. debt The don't stress I significant for thing have year. requirement would a have a only is we that during we paydowns

We EUR have in a requires that termed that in paydown X December. Italy million

we payment to as that, capital the have cash, extent so mentioned, be operations will as our excess generate debt. besides I at it But the from making year. able And from to cash, the to end we're think would of we we efficiencies that reduce working Mike use and

Operator

from the And of our Securities. from next question Almy is line Wedbush

Unidentified Analyst

to to beyond articulated were and know Rabern you could speaking cranes of you I PM -- at brief I with you at Mike, the maybe the wanted in hoping the mention folks if possibilities. mean a bit about and Rabern. Group specifically had America. looking that electric, rental would was possibilities took on folks expand at for North And little was that I I

Mike Coffey

both Steel and perfect Well, American the market. they're Yes. is are electric systems and rental the hybrid reference to are Rabern and manufactured both and diesel actually and that is absolutely Valla, there the North Oil beyond electric for drive it which by products

in for some that fleet, Rabern some equipment American understood is their equipment. ensure market to accepted usage products our North But North these of Rabern and their this American. will and of Now optimized to has that strategy the key the buy are commonly both is

give for than are different example, of certain they let you equipment controls So the one in classes such American North me Europe. are

cranes we we're and technician so and certain in Rentals. for Chicago to to flying to senior And The what operate actually comfortable, really the really make articulated with become and easy fleet process. construction fleet. arrived complete Amarillo part big North it's familiar, North yesterday, is become to American different not class. part American our Group, the not manufacturing rental of engineers category, meet would that Rabern's of part of is to I PM that different afternoon and this a It's a a want the

Unidentified Analyst

So untapped the here yet no market America. there's Group's for North products new unidentified PM in

Mike Coffey

actually, is releasing will next a plans PM we think market Group, the end and that toward for we the there this Well, do quarter, be of untapped early tremendous quarter.

They in are expand and PM were developed I Those June bullish were to needs ability in are notice release, the -- are and address on in July released. the market August. with America our some Group. very products were now directly hitting management pretty and America in announced that we're the new that about. you'll We market in And North team excited North press to X the

Operator

I now on line turn have currently no the we phone Coffey And further to for the will comments. Mr. this closing call back at questions time.

Mike Coffey

cost chain. regard everyone to supply programs stated that wane we and we've reduce and unique efforts facing International. those and in optimistic Well, challenges are, challenges your And We're with We're beginning margin. to call. like kept very in putting Manitex in we our the for I as portraying our want backlog before, to thank results the look just our improve we're are I forward. customers' as thank progresses, interest and would you and and we're our to for The to our up sales team in optimistic also with management QX products forward QX going thrilled the with that joining has to year interest increased some and

Operator

you conference thank does day, We and have you, today. everyone. for call Thank conclude great ask please your participation that your your you That for lines. a disconnect and

Manitex International (MNTX) 13 Aug 222022 Q2 Earnings call transcript