MNTX - Earnings call transcript Q1 2024 | Manitex International, Inc.

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Operator

Good morning, ladies and gentlemen. Welcome to the Manitex International's First Quarter 2024 Results Conference Call. [Operator Instructions] And this call is being recorded on Thursday, May 2, 2024. I would now like to turn the conference over to Paul Bartolai from Balm Advisors. Please go ahead.

Paul Bartolai

welcome International's and Results Quarter everyone, Call. Conference morning, to First Manitex XXXX Good today Michael are Joseph call the Leading CEO, Doolan. Coffey; CFO, and quarter We detailing results. release press XXXX first issued financial operational earlier and a our today, release in Investor at available www.manitexinternational.com. This are corporate of the with presentation Relations the materials together publicly our section website accompanying uncertain the statements, I to that you questions control. remind would their which, to may by conference of today's call management's on and nature, are like company's include commentary forward-looking outside and responses

Although on beliefs, these management's current actual results statements are forward-looking based expectations could and differ materially.

some the filings to latest Risk of discussion a actual to section cause Factors that with results the For please the refer of factors SEC. our could of differ,

on non-GAAP and in earlier Coffey, a will CEO, outlook Additionally, questions. open turn on our release Mike. issued followed remarks, update call of will who progress the press prepared in begin financial financial from provide new measures an presentation. for please you with of note that Today's Joseph today the Michael will line of a by can elevating recent I'll excellence and including appendix initiative, this find these update have our At our the we we Doolan. With conclusion to CFO, remarks that, call business the performance, your of prepared historical from made review reconciliations the the over

Michael Coffey

operational by last the us as an to highlighted made growth joining our morning and on call first to you, Thank pleased year. owing margin good expansion revenue solid organic quarter we am year everyone with to and today. the Paul, improvements strong X% start delivered results, I very

XX% first result, a quarter our As year-over-year. increased EBITDA

organic your at during discussion with where outlined Despite of our turn quarter a of a level With We to priorities will performance. excellence execution, the successful strong record track begin we Page a consistent quarter. we are macroeconomic first that, our first elevating value please within presentation, with attention strategy. X growth uncertainty, the building creation of and delivered our performing high

X%, in crane from Our is PM North North our aspect XXXX. put in to our increased operations. revenue first quarter place American is articulated lifting commercial America. of products by improved growth equipment important of during The increased our processes output An to drive strong adoption Group strategy a new driven portfolio result growth of

knuckle in announced the discussions in truck promising. their launch are innovative PM part but we with several dealer The to adopt the XX.X We America product This new of discussions XXXX, have boom and product year. partners date North Group, been we articulated into from are strategy excellence PM to active monocrane. offering elevating of to launching offering. month, is very cranes the newest our designed for global the was this in PM forward later model this use, the looking our Last

up in that solid We integral our X% will our products and rental demand were in well. as quarter expect the of our distribution North segment America. in robust. our first expanding We remain North as in product Group in had Texas associated this Revenues the quarter markets PM trends another be

progress full of operation, at we just very first year location with pleased newest finished and Lubbock are Our its the location. this

XXXX, strategy, improvement. the may year As you elevating of our process recall we value it to that creation pertains X-year excellence, labeled

improve been all new results balanced attainment. expansion worked our for its margin capital processes. scorecard, prepare this update needed before to promising. systems systems, operating were implementing hard and global improving processes standards, X ERP These and Manitex to projects. have a The company on while investments considering upgrading Our We scale, efficiency designed

elevating headwind beginning sourcing made is we cost particularly excellence XXX industry. have excited structure. year, period initiatives are global that our Manitex last and of First constant pressures from well our the business am and work implemented both the year. as nearly the from direct points We our measures. supply reductions results. quarter up producing realize our progress for Last initiatives basis by to chain as I positive gross supply margins we The are Cost same reorganized increases result the and transformations team's were supply underway. a are been now from chain new a chain

began results added, look forward we the been are first and in quarter progresses. coordinated further to have a We to efficiencies suppliers meaningful and following collaborative the New year approach. and see as

to XX% first from $X.X EBITDA growth of enabled same the an sales operational improvements generate Our of period increase quarter million, adjusted and last us than balanced more year.

up Our XX.X% nearly quarter, basis during XXX was margin adjusted first the points. EBITDA

as We EBITDA second represents this notable a adjusted it the past result This of highest came are proud in performance the first slower is X that quarter. adjusted margin from it given quarterly years. seasonally particularly

The level. historically is coded from decline post few a the our declined. has During coming high quarters, last backlog

previously, improved of As is due production our elimination lower-margin from well the as we've as reported velocity portfolio. to lower products backlog certain

time to as much margin as attainment. well order customer has welcome improve lines have that shortened satisfaction to a delivery trend Our enabled us

they the the ease. interest rates customers. businesses their as However, well result inflationary backlog lower on of orders facing is the Dealers impact have delaying also as as been assess their new and market pressures of

in this which market. the headwinds, near-term powerful these power infrastructure, just is led government now by seeing are drivers into spending offset and are generation being we works, While

We infrastructure U.S. demand works as a just they projects Southwestern preparing do well as government begin. new series as of example, a we in last week, to for expect bolster service system-wide projects, to updates For cranes are utility particular, company delivered as expansion.

this In new low in taking correct remain but has on to will dealer overall order as market. aggressive decline been inventories a witnessed itself we overall an have utilization the are intake, is rental Manitex We and meantime, expecting our position healthy.

X level the keeping share year. depending work end elevating months, through improve becoming our us and at product on with and to healthy proving are right in Current between the chain, visibility grow is is we In margins that our and a We supply excellence category. to to X ample XXXX, elevating and the through aiming released to strategy. be operations, continue and well providing Manitex. This will backlog ranges backlog our XXXX, fill strategy excellence we of is the clear plants of providing capacity for this while efficiency

contributed tracking of work schedule ahead are We and directly last year our quarter our results. first to

quarter Manitex team work trailing XX%. EBITDA very of this capital has proud putting detail X.Xx targets. year Joe allocation of pleased exceptional. are in that our adjusted will us achieve leverage ratio and to our employees our of with suffice XX.X%, range. provide I'm some their brings last nicely But been say, its remains nearly We very more which below first This very XXXX adjusted our are track pleased margins strategy. XX-month EBITDA to year it we to on and our margin at regarding the management our is targeted

positioned capital for are allowing We reduction we flow drive levels, us a as to strong further our cash of working conversion in to expect reduce leverage. year net

remain the markets. Looking to conditions of remainder solid our key across end the year,

and XXXX And Joe. end, I'd over full resonating our business, guidance. To to and Our within reduce financial with we profitable our that solutions with year opportunity are to to supporting like that, growth. customers, costs we reiterating turn see products are further our it

Joseph Doolan

details our and you, morning, an provide some everyone. commentary on give and with quarter, update on conclude outlook balance additional I will liquidity sheet, around for the good Mike, our XXXX. Thank and

was last X, period an X.X% increase The well operations year. Slide compared same the quarter by the driven to from XX during as of Turning was operations. net growth strength revenue to in rental quarter was first the as the organic continued first solid of and our for $XX.X all million, U.S. growth

driven forward year had revenue were prior a comparison quarter, of the negligible segment first As with versus from revenue was modestly this driven period, throughout XXXX. Equipment $XX.X the during Lifting to and year last be expected, quarter, we truck during an impact the and only case growth million chassis the expect increase X.X% the first sales down on which moving In in in year we continued see quarter in U.S. segment contribution continue volumes in facility our was our from by XX. grow operations. the location, opened strong. opened our including Texas we momentum to the million positive remained North Equipment and Texas since activity by have $X.X first of markets, Lubbock, Rental the March Lubbock, 'XX, revenue

fleet we took in a As expansion pause XXXX. in discussed, have we

we However, expand in growth invest capital our to expect XXXX. in to rental fleet

favorable 'XX into In market expected full the we first fact, of based on the half capital of much year forward year. for of pulled spending our the trends, the have

down of backlog of XX, total was from $XXX at As our $XXX end March the XXXX. million, million

'XX, material Gross million up international profit representing with backlog approximately XX% The during profit during of the increase, first favorable prior quarter $XX.X the a the of in of remaining was quarter Our the driven an mix. the the pricing, million America more $XX.X or was gross increase XX%. ended period XX%. improved from Europe total in with costs by North and year sales increase increased

points during from As first expense essentially period. same a the $X.X the million first million, the prior XXX the the year. quarter XX.X% modestly last factors, up profit period basis expense increased $XX.X very to result margin SG&A nearly these R&D for was in quarter, of unchanged quarter. year gross was from

or net up compared million profitability to compensation other making from EBITDA was during The business, was same have operating the million $X.X investments year-over-year for first to the forward, or Operating moving operating continue excludes $X.X quarter X.X%, $X.X sales the from diluted last margin recent up income Adjusted $X.X million $X.X year. and benefits. quarter the the for million and share per million expect performance compared hold of per in was diluted Adjusted the the the the to margin first meaningfully first 'XX driving the stock improvement nonrecurring or last year. from up margin diluted and was same breakeven $X.XX income of gross the was million adjusted leverage. period levels of this margin Adjusted by quarters of growth period flat first year. despite points driven quarter, of essentially we was $X.X XXX operating $X.XX in $X.X $X.X net same quarter last or from in or the million expense quarter for up basically Operating for income of for million share net in trend operating period and We and X.X% improved nearly expense expenses. XX.X% period quarter, $XXX,XXX million first per $X.XX year. our revenue been able are same income basis Net the year. last income continued we last share to in sales, income in

balance Now sheet to XX. turning our on Slide

of the the end was quarter payments March some XX, debt the working forward capital and $XX.X up due of is of to modestly fourth pull the net which As spending. million, from of capital timing

X.Xx compared As the quarter first results, the of end a of of strong at the X.Xx of result to the improved operating end at fourth leverage to of 'XX. quarter the 'XX net

could working which normalize inventory reduction We cash continue in the improved usage result levels conversion our leading year-end. quarters, to further in coming to leverage free a expect reduced flow and to capital even by levels, in

was and $XX As liquidity available of March XX, total cash million. approximately

reiterating to outlook. our our we year strategic continued outlook. XXXX in and are our the turning ongoing end our execution Based for against expectation Now momentum our markets on goals, full

of million. on question-and-answer detail remarks. range our call. $XX to $XX $XXX and adjusted we now in the of XXXX expect As we $XXX million in range for our we million prepared Operator, are to the ready completes EBITDA of That portion million revenue Slide a XX,

Operator

the [Operator Instructions] Your Roth. of from first Matt of line question comes Koranda

Matt Koranda

I'm in bookings. X to quarters times? start then what's that of that couple you unpack back lot above a order to on for in we back in you know if view robust your push the gives you wanted view, flow could on and of factors more I the book-to-bill in see the on the the a visibility I X but deliver within that maybe Mike, now. might also into a lead when curious, of environment. turn I your in ability under way. at But this healthy dealers that guess referenced inventory year, has view been the backlog hesitance level to And and terms a just of reasonable timing your the take book-to-bill just And in

Michael Coffey

funding of online to. pertains both And there, and it that That and that be and people most asphalt going seeing the is is That it then other all classification North But America And order if So that gen but to those see North uptick to regard town anticipating just years new now. commercial both infrastructure not the the tell speaks But of delivery. that related think material highways, to and happening to a are back of when businesses honestly is we and/or going the more we're of to power very costs. that we're significant industry the visible. when grid Europe construction North And that's ago, on not surprise. in vocational Europe expecting and quite what infrastructure smaller and XX, XX, we're to it's you generalized that coming transmission. some that's and a areas. that XX complex. yet, anticipated We're construction we're hesitancy aged. And all we maintenance grid. just actually that's infrastructure robust, will substantial. There's frankly, about; directly with bridges, years. a There's a projects those in that materials orders. really at those at when around concrete/asphalt in and but America, happening for There's were and And delivering interest speak and happening an that I the hesitancy you infrastructure it part in and is bit delivery pertains and Manitex, construction inflation that offset can't very driven It's in pronounced. are are America is has with of to our activities right little of leading trucks dynamics uptick you And driving an things also happen. look indicators, what's is infrastructure. looking concrete they're lot is we're of generalized

So being that there's an forth. offset is played back that's a and and dance a bit of

we there you're to that proper that anticipating your reason the It don't our When? was because to quarters to chain we're We've scared healthy of of And also decline, the around. exacerbated We issues. up grew rental with a Those delay last meet in demand. many that supply And and know have part that was expect delays. chain will by But that still far regard correct. orders. are ability part I we post-COVID was fleets get backlog as outstanding when slowed might our of considerably mounting will sped seen what which could that The the several So supply is turn That don't of that's the they inventory deliver, just and last but affecting a issues a that know. is turn. has business, our in degree. customers to as level. of the much question lesser when year.

in dynamically right keeping QX of booking as know, standard last been That's between the manage good the a So for good has And customer X you order seeing stated that and in to think and for last in seeing we're our also is into I for been orders an then it is X to faster the within we're we're think projected to backlog it's us Frankly, fill range results. years. have than months costs margin. headwind to the I moving that healthy improving, That's huge X healthy able and backlog. that margins. range going years, trying just satisfaction. we And We're fill what now. X

Matt Koranda

flow that are the the from would are product positive that infrastructure either pricing? there follow-up commercial implications construction of And implications side any for if margins and incremental maybe see just or and mix from a be negative less that, for then lifting the side, for is, general which just on we what mix coming order more the

Michael Coffey

Yes.

the had So we the both terribly in we've think last mix change X will what over years.

regard So things to that with did strategy. our we

We some the taking product a business. that have our margins. just products product stop decisions had favored in did some terminate In make in to profiles cases, with a In were we to classes. to few the mothball or need had not able few margin had that to orders we acceptable substitute another few have a portfolio that cases, difficult

in we've prepared then been And not as the what directly expecting months And release, positive the we're new North next and excited America. a quarters story want distribution heavier our healthy the XX about. America to to is over a articulated strong. in North to very in specifically of It's a discussions into articulated some layering reiterated earnings a part will class correlated those see that said will well. that's America. to and XX North a this then of profile is What yet, orders announce we that has demand be cranes And couple that done. we're product partners and continue, had we what favor in is for that so to margin boom we'll We're And product bring it that ago, with very but are story. way, going into the those meaningful bringing we in straight

So we're that. about pretty excited

Matt Koranda

with end and well maybe I EBITDA is actually question for the your I address dovetails the above guess, adjusted can of had, full guidance well. this Joe one this the year. another for range But That high as quarter,

for into of sort probably and why year? in margin it seasonality, only fair. just conservatism of I address the remainder for just just performance in fits QX, the in year of outlook. guide? Maybe know margin just EBITDA the these levels about the the we talk you But why could, the if can't maybe so So we're terms maybe how it's sustain of

Joseph Doolan

It's out it. to XX% little still months, our our bit do is seasonality in with taking the On our A to EBITDA up early coming so below the we've third you're adjusted couple guidance. We XX% start quarter, XX a that things XX.X% been Europe. targeting. it's Matt, in see Yes, of right. trailing year of the particularly

for down So a been that's us. quarter typically

a to prior quarter affect us. This seasonality have was and year. in going some significantly for that's we third quarter, over the improved the us But we quarter will know

I point. out. guidance So this see QX a little think to at our to how it's want early We plays really just start changing

Michael Coffey

not beat And been years, to able want investors. But our Matt, last in do we've we X disappoint grateful be to forecast. the our to

of of going be we're disappoint, if I lot optimism. don't level want a We're work So to that cavalier to cautious. a being done. to over-delivering. read And routinely disappoint There's to want as we be by good

Matt Koranda

And one. then one maybe last just

capital in growth there mentioned just You that fleet, what of pulling does growth the versus expansion into quantify half capital half. the rental for just you Could plan capabilities for rental first and quarter and expansion us maybe for the year what revenue spend in in and the fleet spending then first you're you the full some first that in and what there? and

Michael Coffey

open the is first So is branch late how the to growing market deliver that's And Lubbock a due advantage fourth the full now quarters. in results, it in XX the but in market in happy and to of and for happy year, And is ahead well. into that our had X by with we're We've a it's our little utilization ability full take expansion very design area performing We're construction curves. our months. very dynamics rental with with the $X to the number for delays, and Texas price what's Lubbock, to we're expectations. fleet happy in, bit of We're branch getting in coming of that North in million, Lubbock. bulk the happening open

items we've budget to market take us and treating comment Joe are So forward Rayburn. how the the customers made of that our is those at performing advantage capital correctly how pulled

Operator

there this I Coffey for questions turn And would the Instructions] are at [Operator no back time. remarks. like to call further closing Michael to

Michael Coffey

Thank faithfulness that. you, and really thank operator, you appreciate your for We our to Manitex. investors with

Sidoti Cap be quarter, During Conference. Small the we the second will attending

And which Conference, Northland on X. be June Investor also attending scheduled attendance be XX. we're Our for fortunate May will is to the

quarter, this with our that, we meeting call. next hopefully, Manitex So if quarterly look thank you don't, And our interest your you during in you there. to But forward with call. we we we to and will for connect with conclude want

Operator

This ladies you, you Thank disconnect. Have and you, presenters, you conference your gentlemen. now and a call. for and day. today's concludes participation, good may thank Thank

Manitex International (MNTX) 2 May 242024 Q1 Earnings call transcript