Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Manitex International, Inc.

Third Quarter 2022 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael Coffey. Mr. begin. may you Coffey,

Michael Coffey

Mike Good you interest and earlier appreciate in join our CFO. which name time operator. is quarter, me you Doolan, third 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 Joe thank taking Coffey, through Thank we International. of We details

open custom, our and for the the be available remarks, and brief slides days to the is call. be Following will year. website other release telephone for this A be a line for next our Please our we'll we our prepared including see presentation cover questions. for X also available replay happy as for information, will

will results, I'm to the On margin performance, And Q&A turn for remarks provided. tandem provide over we'll and third the on our and have focus then highlights, I'll in financial then today's our our our session. call, to leveraged a CFO, covering we being business of Joe quarter slides we opening call stakeholders. key drivers trends some Doolan, going deck XXXX with

third X take the to my quarterly the during results CEO, This marks I'm to the me. to excited made shareholders like appreciation and being past to report faith positive as my for I'd a to and our the call progress and express moment quarters. Board placed in

we midterm optimistic outlook. management delivering Your margins, our about team is and short improved are on and

positioning growth and are efficiency ourselves improvements. our dealers with Together for customers, we and

working is within adjusted above goal stated this sight. goal, our EBITDA. which to perform now closer moved attain we The is team to quarter, XX% hard This to

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

X. Now straight Slide to move let's

X a significantly and being XXX increase was and weeks EBITDA averages. due despite our We just sales our a increase. historically to of summer year-over-year slow million, a at compared to margin representing European operations, XX% quarter elevated adjusted to point downtime we gross QX historical as at XX%, $XX quarter Third basis had revenues, below slightly

pace Our stood end. at kept with sales backlog $XXX million and at growth quarter

first our to to newest During continues Rabern Manitex perform Rabern robust call, we above sales with expectations quarterly contributions. highlighted EBITDA addition the Rentals. and the team,

happening am customer Our planned with Lubbock a I expansion scheduled are advance early XXXX. opening in new is our sales on is pleased report Lubbock-based occurring and track, of This base. to customer

adjusted EBITDA achieved or X% We third quarter of of $X.X million sales.

Our million $X for compared $XX X annualized EBITDA in results as to exceeds and year quarters in adjusted full adjusted million now XXXX EBITDA. past the to

debt. Our total quarter, grew increasing our the sheet net balance in

growth long-term a directly a we completed associated manufacturing-based inventory. During third This backlog. in with tripling quarter, is in growth our historic

the our Amarillo We of completed used which businesses. as rental expansion rental fleet, be acquisition as our Lubbock also expansion well will for

quarter moving growth reduction and fourth We well $XX debt With to forward. are investments, million now in our situated these objectives during and well with anticipate credit total meet remain positioned a in cash short-term availability. the we

challenges, supply Slide team is operational suppliers we list expanded management shipping addressing our The I and to presenting some of quarter, discussed up business. have about purchasing chain want possible. the higher and Last talk qualified we to Finishing highlights. global costs X, international headwinds consolidate other proactively where to these inefficiencies

past spoke year. about costs recover during also the price to increases We made

favorable seeing trends price as favorable are which backlog, through we We higher to and more cost work was at now booked pricing.

production. improve to was Valla reorganizing first steel crane, manufacturing to and our our Italian step of reorganization the velocity This the and leverage announced companies our of oil resources we quarter, second PM the our During operations. and the

month, this Head companies. named our we Mills, American of North Richard manufacturing Earlier

also more and and oil America, market steel a lines product higher Valla penetration in new allowing North and for services. meaningful We announced levels channel distribution of customer

Our to sharing market improved global increased lowered look additional now and We position will profitability. forward costs better and preparation company to for aligned fiscal manufacturing the attain XXXX throughput. better share, and plans are for organized improve businesses in that growth year

Let's performance performance We groups. the move of of of a to our on our short company's each Slide rental X. summary exceptional touched product We've provided already of division. the

both closed the division another over and to articulated knuckle Backlog or year. Our increasing backlog. order sales improved boom XX% crane quarter, prior increased

straight Our in in European our year-over-year, sales our focused fortunate quarter. have is production are Manitex frames. and about U.S.-based and were to grown is we tonnage backlog Sales is line XX% million. again crane $XXX on and the at product split, The mass larger evenly backlog up

aerial backlog at production work what for platforms, are ramping very in level seeing with double As and was come healthy we up a a year orders ago. it

to quarter. performance to third our Joe the At financial to like over it Joe? this discuss for point, I'd turn

Joseph Doolan

you, to in X the Thank turn Mike. presentation. Please Slide

can is recall. acquisition Rentals report as the include having you that financial our You second performance, which results in reported closed we note that Rabern may consolidated this April, in early

in charges offset was third from versus our million, from Rabern an United Increased for driven and of or foreign increase of mainly our the was million quarter our an sales sales $XX increase cranes by XX.X% the were currency mast States. prior Revenue million. articulated period. the The Rentals of by straight European $X.X operations year $XX.X of in improvement revenue cranes

cranes mast businesses. and $XXX the of increase cranes, reflects an September This Our articulated backlog orders within remains million platforms represents strong aerial 'XX. of XX% strong in from straight continued

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

gross increase $XX.X an of from represents The of Our XX% and $X the at points book-to-bill third We percentage of is X.X:X is look tick period in we've margins over ratio we was highest continue from prior to our anticipate year basis as a up margin quarter, $X.X had as orders. XXX gross of million. prior in and million Gross indicative will is the million level year over year the a ahead. the for of we continued had sequential the in QX. Gross profit in XX.X% margin increase higher quarter anticipated. strength trending

at to contribution Manitex Rabern or the increased of X% the sales to manufacturing the as was 'XX or $X.X third EBITDA X.X% improvement Rentals largely of The We contributions Rentals. improved as results year. EBITDA quarter cranes. margins Adjusted the million higher for million $X.X Rabern anticipate in and due last adjusted of profitability quarter of of sales well versus third for to positive

turn to of addressed operating year. our the sales to for expenses prior other expenses. comparison I X margin, quarter and Now a gross results wanted to prior and speak operating and Slide but to please I've already

onetime XX.X% as for $XX.X severance were other these and expenses, expenses Rabern quarter. and adjusted compensation costs. the last our contributed Operating operating for were quarter, similar million inclusive reported, stock or XX.X% million Adjusting Rentals approximately of $X.X operating non-GAAP period. million approximately of of million items, $X.X to expenses $X.X million in sales the $X.X the to year's or compared for

paid a quarters. monthly million, $X.X and business million were comprised of be in XX expenses a of to installments charge charge settlement will $X.X sale the in related expense over legal XXXX. This interest of Other

with significantly Adjusted Net share per million or year. which $X.X quarter. $X.XX or loss loss including was loss per impacted or $XXX,XXX was last compared in quarter mentioned, several income for $X.XX year's a $X per net that $X.X the in million third net our to $X.XX of legal compared per items share settlement the a last or I onetime $X.XX of were earnings. million share There results, share the

current at fleet the moving availability, flow to our Slide of expansion Now $XX positioned meet current our acquisitions to from related are in quarter million demand. to reduce due the continue end The level we the Rabern and X. credit to to $XX.X funding and meet of requirements. are anticipate debt rental funding throughout the well striving utilizing up quarter begin lower we XXXX. cash orders Net million, to We fourth of debt, period to to prior material the to debt our was

With call will to Mike? now Mike back that, Coffey. I turn the

Michael Coffey

Thank you, Joe.

As in with to our indicates This targets. long-term it million in adjusted shorter-term margins. our EBITDA goals, $XXX is in just our reaching how and of close pertains million operating become how $XX XX% sales milestones X goals And now this financial status and financial have a Slide outlines an on closing are annualized check, million. at to we run presently $XXX rate sales slide but we EBITDA adjusted are

company. the resources sustain to I've momentum, products, much brand past, transforming into a believe I strength, the the have in said we Manitex that this larger As

well now short-term The While giving within much the guidance, right of are on numbers. aren't slide sights setting the is we our target to reach. we larger

on we and While our performance, to you improvements coordinated improving steady, expect planned our are us reliable, operations. can to short-term work

In which manufacturing but the a for of is within Rabern gains gross pre-COVID made also our manufacturing our quarter, of Rentals. improvement we businesses. to The was due reflective margin positive processes influence XX%, to returned the margins normal

and will in see beyond continue our we we XX% cost margins to realize businesses, As to improvement margin excel future manufacturing quarters.

by future of and like Please team both about this turn why our the I'd to the management progress Manitex X. are to year made Slide we summarize optimistic International.

fortunate we dealer As our a are company, network. have current to

a XXXX in North Rabern kept backlog, are record is Our business. expand our the proven in Texas. partners for strong XX% sales. XXXX great remained will Sales year-over-year. grown operations great accelerate The pace dealers to approximately our higher This levels and investment as we again Rentals has are and This customers increased with sales have reflected success. rental in and best has and which

company products margins, The We improvements. operations, produce to of made our company are which and and about Manitex transformation favorable the to a progress and is results is excellence story in high-performance in reflected more reflected now upcoming very to The process just reorganization in the this ease, operational is relative year's tracking results. exceed be Manitex beginning story to to making manufacturing be our bolstered enterprise. our near with by a a a XX% people. are improvements, thriving dedicated in a completed This gross motivated our profitable a can and great pricing seen term further employees engaged backlog. improved and will are which and with

and operational quarter in for Our and very throughput, looking efficiencies. we cost production fourth is structure positive, steady forward to improvements are our the outlook

lines that, the please would open With operator, for our questions from you investors?

Operator

first Matt ROTH Instructions] Capital. question from comes Koranda with Our [Operator

Michael Zabran

of for Michael start if Maybe other the breakdown equipment? quarter. part specifically with the just and we boom Matt. It's could on Zabran sales on the AWP, revenue segment, Congrats truck,

Michael Coffey

much. the Joe, quarter here. can revenue very Sure. by segments Mike Coffey touch product Thanks you line? on

Joseph Doolan

to are you of Or of segments? out like you're for...? the split the Yes, looking the looking understand each by revenue

Michael Zabran

correct. Yes, Yes.

mix the Just of per segment. contribution revenue

Joseph Doolan

business. manufacturing the the of lift the Okay. majority revenue. The the for segment, segments from revenue the Per of business the was came bulk

the I $X.X segment the about revenue think rental from was million.

million $X.X at the the and So came of segment. came rest it from $XX.Xmillion, Rabern lifting from

Michael Zabran

at So quarter third operation third European quarter, results, -- just looking I'm

Joseph Doolan

you're looking Is trucks, for, that platforms, Mike, trying are what boom to you parts? understand

Michael Zabran

correct. Yes,

Joseph Doolan

Okay, sorry.

mostly of rental. terms was rest from, the came in So that's it lifting and the where segments, it was

trucks, $XX boom we boom Aerial from and $X Platforms trucks the about was On had cranes. knuckle came million million. the around

sales. As $X.X was had -- total the million million. equipment we And then other said, some rental I merchandise around $XX was rental, was including

Michael Zabran

Okay. That's Got it. helpful.

Joseph Doolan

filed of have bit can should afternoon. see in the this later the components be that little the you revenue, XX-Q chart and the details more where a We'll of of a

Michael Zabran

Right.

Okay.

that. Sounds for out good. I'll look

of planned next of business So start the see to the great the repurposing year. Italian at

of lot maybe to expecting I Valla we give update Maybe line an see a and us for when think when products we're expect it time just in fulfilled U.S. to the see can makes sense. on just -- orders? available

Michael Coffey

today. demand We're steel good. the heavily we're those a year, next in The for the plans trade next actually populated. X are oil pull-through They Yes. market. Well, and increase seeing PM next And we're U.S. year be months. attending shows heavy and but products developing few Valla, there'll actually with actually in is

over years we're for very the but So is the product boom through been example, growth next North the come cranes. in to product, And very, in looking favorably segment. PM the has European received, few Valla America from the well toward knuckle growth going heavy

Michael Zabran

Right. That makes sense.

QX maybe And from Or growth to quarters? kind unison take in that the with some a Valla, rollout? quarter we would of that we of or can going -- expect X is in that to see

Michael Coffey

year in backlog No, but they're selling product -- and the it it's appointing we've been don't specific have they've I that well for all U.S. -- received. dealers, and -- been Valla, line got the new

QX generally, months, are So delivery sales QX quarter. be but and in bigger there'll every

Michael Zabran

backlog further bit order if a state little Okay. now? Got right of you of it. the any Mike, could maybe we seen to And speak kind have just cancellations? specifically,

Michael Coffey

we're news time. ourselves held has all that. report, the that with Great sales. up The I increased asking backlog to our actually. question appreciate That's a

then quickly quarters And the meet of $XXX X can increasing demands. robust backlog as so we're had another holding as started, production in. we've actually, almost and to closed we at But our million. We increases, of orders is quarter order those took fourth the rate wave as firm. And

steady. not is And base. We're we've holding got great backlog a any whatsoever. So cancellations seeing customer

Michael Zabran

great. Okay. Got Last if can. it. That's for guys, one me, I

our backlog that In head us much sequentially moving Just versus higher-margin of through? higher? the called higher maybe we can filtering us terms from help operational the that around improvement, efficiencies margin you is that improvement, help get of improvement really is parse out how margin sequential Rabern out wrap just what the just versus -- business

Michael Coffey

Yes.

that. here's think way So about to the

So is if to X a things are margin it's long when there's The gains manufacturing. slowing cycle, longer. supply you chain X bit with down, well, working follow the elasticity months which little is production the

excel So that look the both I And well, X/X, improve expecting to as improve will that operations are is we're backlog manufacturing come addressing margin and and would our is place favorably. throughput manufacturing. coming from influence margin more manufacturing own. gains Rabern's to improving X/X X/X as putting the we're But beyond that from coming initiatives that their priced at and into in as roughly

an size due the really to about the is manufacturing improving margins process in progress. impact manufacturing. moving which we're to it's see is a X/X segments. coming a from as the we're to X/X have Rabern, improvement, slower we're manufacturing, but in pretty of I'd are but rentals, coming from quarters it So instant larger expecting gain margins its And But characterize happy good both way at clip, a broadly than

Operator

concludes time, Since there conference this this are no today's further questions at call.

participation, disconnect your You have and time. great Thank this a may at lines day. for you your

Manitex International (MNTX) 3 Nov 222022 Q3 Earnings call transcript