MNTX - Earnings call transcript Q2 2024 | Manitex International, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Manitex International Second Quarter 2024 Results Conference Call. [Operator Instructions]

This call is being recorded on Wednesday, August 7, 2024. I would now like to turn the conference over to Paul Bartolai, Investor Relations. Please go ahead.

Paul Bartolai

you. Thank and International's everyone, Results Quarter to Call. Conference welcome morning, Second Manitex XXXX Good

today Michael are Joseph call the Leading CEO, Doolan. Coffey; CFO, and

quarter -- accompanying www.manitexinternational.com. presentation We detailing are website publicly results. release at press the materials, section release, XXXX Investors of in second corporate section This the issued financial Relations operational with earlier together available and Investor a our today our

management's forward-looking commentary conference I which, and to you would like are today's include to questions of control. nature, call their that may outside the statements, remind by on and responses uncertain company's

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

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

note issued and earlier measures find historical reconciliations Additionally, you of today can release of this in press please non-GAAP that presentation. the appendix in the financial

with the open of call business questions. line prepared Elevating review CFO, our Doolan. Excellence a remarks begin Michael new an initiative, these will have provide CEO, remarks, from update for prepared made progress on our by At from financial on Today's our of update will we will Joseph the a Coffey, conclusion recent followed your we including performance, who the

call to With that, Mike. turn I'll over the

Michael Coffey

Thank you, the Paul, and good today. morning to on everyone joining call us

to continued and we our net on growth progress quarter, our Elevating and important adjusted second margin further produced result, leverage. make expansion, as reduced strategy, the a we generated During further EBITDA Excellence strong

our ongoing in growth quarter Rental performance gained the process cost momentum initiatives second highlighted reduction by and in Our was improvements. operations,

year-over-year growth This resulted in in adjusted XX% EBITDA. nearly

strategy, EBITDA fourth level EBITDA basis grew of EBITDA build points XX%, a This we was market revenues. XX.X% of generating our of levels, which greater we record than an is margin that of business track is performing adjusted result at roughly adjusted a $XX adjusted direct performance, on performance. higher end with basis. a our consistent trailing successful This quarter can million to quarter XX-month Elevating has come second consecutive on Excellence. of despite execution of XXX Our and our trends, confidence of some The have mixed

your With we our with second attention quarter of presentation discussion turn Page where of please a will to X performance. begin that, our

X%, second revenue Our in further quarter progress We which growth our our velocity, Lifting results. operations. manufacturing Equipment North by increased American from driven benefited improving the also made

our the cycles. likely rates to intake also are has Higher lowering the year, They rates. interest Order slowed overall increased machine slowing levels due stocking maintained in replacement interest are by dealers.

We are as works not other is weakness seeing increasing Public construction are to in however, market drivers spending affecting contrary. end fundamental key Manitex. outlooks, the

made requests reasons. for to out the push have customers aforementioned delivery Some schedules

requests. with customers, We possible, are accommodating these scheduling where

to rates to in interest markets. are drivers While due high stock delay cost, forcing our key we replacing in carrying remain confident dealers long-term the

we So a short-term likely issue. believe this is

in timing until we However, U.S. our some cautious the reflected orders the This term. outlooks, on cuts and ending near backlog macroeconomic will clarity the get our in remain of the levels. election, think more rate and during quarter is customers we

drive That our our strategy with on product are said, growth initiatives dealer focused our increase we market share, and aggressively moving network to remain our forward expand and innovation.

to to in Group important increase an our America. continue PM in products distribution which on aspect We good is our make strategy, expansion North of dealer progress the goal our

you America, demand forward significant and and year. interest progress is on updating in we there to potential are in working from is on a significant community This We a lifting later with and look our interest solutions of dealer our identified -- portfolio remain our this articulated partners schedule. North

both to investment fleet second the our in our a trends and We in revenues is with from quarter are quarter. our increased increasing in segment owing robust, benefiting markets XX% expansions. Texas we in our North and fleet. remain strong geographic rental The Demand Rental had increase

at Our pleased location location. in progress very newest Lubbock also continues to this and we perform the well, with are

XXX manufacturing margins the points our year, last up Rental same quarter material Second from from driven and lower by throughput, basis segment. contributions period gross were increased costs increased

be progress and We have encouraged the headwind continue to sourcing on a by both chain and our supply Supply industry. Manitex constant been pressures our initiatives. for

are from to the costs through our pleased benefits be seeing lower some finally We material flow results.

and we forward global producing to to our our added reorganized efficiencies are new designed hard we year chain these supply furthering keeping improve our lower with going and last results. forward. suppliers discussed, collaboration structure and cost. our new this, and initiatives the supply improving we work As chain positive team's look In We

operational improvements the second XX% period $X.X increase generate adjusted million, nearly of us quarter EBITDA of same year. These to an enabled last from

EBITDA very XX-month trailing this We are proud up XX-year period. And of is from our the progress. XX% prior roughly

been We by ratio, management focus allocation. disciplined quarter, a capital of the financial down our leverage driving $X important during net strategy, has Excellence, at our of the net end reduced Another on quarter. and million our further component X.Xx debt over Elevating the

recent Our been by somewhat in challenges. capital supply industry-wide our quarters progress masked has chain on discipline

we and strong are we our conversion working drive cash further us to positioning to year levels, reduction us in the debt progresses. year net allowing a debt of expect flow for reduction in to see as further the So the of net capital and happy quarter reduce

performing record core delivered X-year the business at results Excellence, relationships markets Elevating our headwinds, are rate end are has strategy strong and customer Despite and improved interest levels. improving. our is

what controllables committed improving focus production in during deliver improvements These cost processes, channels XXXX of to experiencing uncertain, strategic control. on recent our EBITDA remain include partnership and current our in that quarters. has new is expansion this disciplined are dealer growth to the us trends It adjusted enabled and in we slowing North order despite margin is priorities America. the While trends executing on are macroeconomic our within we strong

XXXX a range trends, to As lowering full [ of a result ] year to million guidance $XXX recent million. order of our $XXX revenue we are

However, demonstrating against XXXX our million, adjusted EBITDA million expect priorities. execution to we continue to $XX a be in strong range $XX our to of operational

that, turn to to call the With over like Joe. I'd

Joseph Doolan

Mike, everyone. the details Thank liquidity and good you, sheet. on morning, our some provide and additional balance on quarter an I and update give will

X. Turning the revenue operations. our in business Net for quarter strong driven improvements was our The the to second velocity further same year. and manufacturing growth last by quarter X.X% Slide in to Equipment in growth for of was compared $XX.X increase during Rental the million period an

The quarter, driven year of the prior North X.X% truck Lifting was increase versus second crane the sales. million the during American Equipment with an growth segment revenue by $XX.X period,

demand in revenue the of quarter, our period. in The Texas segment million markets driven $X.X investment in continued an trends year the Equipment our Rental prior was by was increase second XX% favorable and North fleet from growth. growth

key As we was capital XXXX quarter. to our part made our in discussed trends much the important to on we contributor spending expected forward last pull quarter, our decision early and an fleet markets, this the based have the into favorable of on growth market of expansion during

million was the As of $XXX of June total end XX, QX. million, at down from backlog $XXX

the with international representing ended with total approximately remaining of the Our the XX%. America backlog XX% North quarter

costs driven the year lower segment. contribution chain the during during of increase second driven increased Gross $XX.X The material an by increase increased million initiatives for was profit by period from million quarter manufacturing in XX%. and 'XX, prior the from throughput, profit supply was $XX.X up of gross Rental

XX.X% As gross basis increased margin to quarter. these XXX of a result factors, profit the points in

last million SG&A year. the from modestly quarter was $XX.X $XX.X expense same in for the period million, up

the during year million $X.X quarter, very from was expense modestly the prior R&D also up period.

levels trend flat forward, and expense We've our continued in investments we driving continue basically moving in revenue been business able this expect margin despite the hold we the benefits. recent and to are quarters operating to making that growth

million same Operating last $X.X during quarter, income up million from for was $X.X period year. the the

from was income in Second XXX the up and was quarter improved performance operating margin leverage. margin points operating year. and year-over-year last over operating improvement by X.X%, operating driven The margin gross basis

$X.X from XX%. for $X.X or sales, million of last an second quarter up same of for period year of EBITDA XX.X% the was sales increase the or from million X.X% Adjusted

of Net last year. income or the diluted same second for million to $X.X share compared was for or per net per period $XXX,XXX share the income $X.XX quarter $X.XX

per or Adjusted adjusted share period compensation $X.XX up quarter last Adjusted year. $X.X net income was and million net second $X.X stock excludes the in diluted from income or the $X.XX net second expenses. the other quarter, of income for per same million share nonrecurring of $XXX,XXX for

sheet Now turning to Slide balance our on XX.

is forward operating of the over down some was the despite June from results. as the end first our pull from cash million XX, $X flow net of of a result benefiting million, capital $XX.X As quarter spending which solid debt of

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

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

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

Operator, portion of completes remarks. question-and-answer now our prepared That the ready our we are call. for

Operator

comes first Security. Your from Instructions] [Operator Ted question Northland Jackson from

Edward Jackson

you. the I two quarter that. Congrats muted. of about was mute, the Sorry button to on on

You me can hear now?

Michael Coffey

Thanks, fine. we can Ted. Yes, hear you

Edward Jackson

Okay. All right.

of a for handful you. So I questions got

color like some you're my U.S., that with U.S., business. Let's challenges the weakness your the in start business be seeing, through Like That then talking question. utility some if is geographic going it you into backlog. call hesitancy talked component would of, from I standpoint? truck When look with regards European some a to you within and you're I'd the it Lift give a about in also I bookings, it, can in it would. vertical, mean, that for peers some example. mean, have is about the you there market from and first section the

Michael Coffey

some concern. or the geographic Sure. of the areas geographic Sure. are maybe concern questions. Appreciate There lack of --

are mining moving with completely example, that of lot unaffected. They're are exposed areas For forward and just the a strength. minerals to

on out in that guidance, in our early favor. And some we had tax some were came as investment waiting European customers some guidance, tax hesitancy capital for markets

And of requests or these most anecdotal are part anecdotal points for the information.

fleet concern operator, -- regard that the you is equipment from in But you year, we're concerned And a have theme a slowed this it's year And often have that unequivocally, of the replacement customers theoretical. to overwhelming election that America. crane if XX infrastructure. is fleet careful is or hearing where rates. a process, stalled during machines translate that is inventory. seems And cost. And carrying in this say, think we this being of with our any more most dealers have XX catch-all. in where in I'd their used let's it's those dealer an because are crane I market what North to say about But X normalized have replacing replace, primarily to to on with interest -- they're longer that them see holding operator they're or to to X of happens assets and ready just are just

comments of As end particular, I'm range. those far as aware some markets, utility the in in of

that centers in. I think really around excessive most inventory, bucket participating of not which truck are we

our due to not demand utility We're signals and/or public hesitancy the works seeing with pending contrary. construction products any of to the for projects,

think that of are, I construction It's be a carrying to regard with work interest I to lot suppose, on done. out control. there's things costs of and everyone's just hesitancy and

Edward Jackson

seeing Question [ utilization. let's to guess, Okay. that, I there's not of the rates Caterpillar, over regards a general regards rental with and some like it, to, larger to, instance, side mean, to call a house. you're to the I going two, or shops, of the and And ] number softening other concern commentary Listening you. not a it sounds also Rental with for

color the seeing strength why I where It that's if be actually happen around because just starting North to in talk more kind more Is mean, maybe of area. a within that other bit little you're are about people reason? weakness Texas you just to

Michael Coffey

Well, yes, yes.

completely we of are -- to is any our one this. So insulated -- no

experienced in been in capable really have position We markets have The frankly, has contrary. of fantastic. any we're They're activity are but and a in to a strong. of not North are exceptional And and markets company space. playing strength that growing smaller, at us. in, Rabern Texas downturn, the Rentals that that we are bought that so and a lot favors we

really, with to been and happening downfalls that. some customers So had with had we're the But and of couple a few happier able be regard for expansion little associated into really customers. a markets of keeping finger our problems We've overall, performing what's on the of Lubbock. avoid we these we've well pulse the to run couldn't that we in are our

well. is well capital team get location. it's curve, in investments the showing of and utilized. And is just mean, it's Joe a forward fleet The I that some performing we're market The -- mentioned is before year very in performing pulled that that ahead to over numbers. well. new we

be They're So there's these areas of to types any going more just but downturns. in from always insulated economic are downturn, problems those less impacted.

Edward Jackson

I question, this, announcement to there. effort have from Third the you've and you're as some to over as an distribution a would be sounds knuckle after track with moving it to is past, products market maybe partners on Italy here. that one more signaled regards It In have many bring U.S. X. the like to the your couple, still

towards partners does could stand in area? that of kind is see So still this of my distribution that that question couple we first a

time need for to mainly trucks the going of And are I mean, level bring the then out I a that mean, kind of then of parts? balance will how support distributors are that, have to really in around and one are given you going more color support that the afterwards. to spare secondly, ensure providing parts least the Italy coming and need? as Italy ability terms to the follow-up of you I within level being to that inventory on and that parts sheet dealers service, handle these those some your and at into being, imported, U.S. you're put from your into

Michael Coffey

really questions. Yes. like I Yes, the

to cryptic so our doing because naming with want new And So we're what terms competitors. active we're it's competitive we're a and a speaking market, in signal bit don't to dealers. in not discussions we of names

We active and that individuals the with that about excited We're about preliminary have orders, are some very getting talking them We're the placed familiar North serving. excited with. products. in X dealers American markets of with discussions pretty they're the we're

a price these it and with for partnership And that dealers and about engaging the them. crescendo customer between of the the is feedback markets. going And we're us. testing. testing way gone ordering products. announcement a way about an with that that doing handful and They're we've we're be years this it'll now They're will announcement We're

we're this phrase. there and So many X We're appointments are to actually our X our than that's to high target to I that why we're use expectation, X X. list, but is have on year that talking Ted, talking are or expecting that if more can that,

is support the of really the question product, Regarding insightful. the

America, act structure was strategy like organization North support arm to put built. that's in been Georgetown. an structure whole Our and America build a manufacturer that essentially We North in in could that

Even the the We have in a we're team of product crane by support, product the U.S., not we're supporting crane the managers, though that's design. U.S., engineering. from manufacturing and

has in that be And and with that's the support actually States. brought America, products in that high the U.S. parts United to moving come to in We put parts North critical done. stock place we're the that marketing needed to also

part that and there products we can are we And The quickly. just them is technicals. online certain if want that strong running a And -- make back these getting get supported. or failure is customer really we to well damage,

Edward Jackson

encouraging That's actually news. really

last... My Okay.

Michael Coffey

Ted. The Go good ahead, -- ahead. go

Edward Jackson

no, going No, I'm to no. Keep going. move on... no,

Michael Coffey

to balance for sheet, machine a change wanted can and see yes, really because in workday fast-moving sheet small. a the parts spoil going not just They're sensors valves are customer. I balance that a say, a down and you're the and seal things and kits the to

they've and stock parts support in those the to we've the markets. we're certain products, with dealers So things support our got put working make in to right that their play closely right

market the feel serve in of give to and we've market So share. It's from -- it's like past. with Excellence. a will done it's what we well longer the change And standing us part in Elevating a going

Edward Jackson

your the what's release, on question because last actually for it him did tables it in it my is probably statement. it and press line on Joe with expense item tables then this the I notice those quarter, want this didn't the in this your fun. And of of out quarter differs your didn't don't the in and to page -- all the you is the in I did adjusted first I reconcile reconciliation and quarter. that it notice this when honestly did but last I from quarter, leave notice the income more with But first interest to didn't EBITDA, in notice And Okay. I first this

just little And in so the to it's a nitpick -- as because same. last it his for fiscal data year, historical the was

tables. a between and statement So the disconnect what's reconciliation that changed there is happen? income that Why makes the

Joseph Doolan

Interesting.

Edward Jackson

that weeds? How's the getting into in

Joseph Doolan

No. is It's difference. interest income the

So netted year, But of we prior split the expense in net separately. it ] table, for have them. against interest income ] This [ the we the reconciliation out past, year. the interest we had purposes [

Edward Jackson

Okay.

just this changed split and and I'd I went was see realized and it. had then I like, missed and So I something that I why historically doesn't

Operator

the no further time. at Michael am questions I There Coffey. are conference this handing now to over

Michael Coffey

moment And faith operator. take their Their doing and a just you, work Thank interest to in to we're I means to business in want what our their us. investors with us. for thank a our lot

also the I'd I on and results. remiss Manitex last professionals at didn't this working these year employees recognize the and And that to so be hard are if deliver

excited a about fantastic we're and going. We where we're have team, very

connect look everyone wish connecting we well want we this If to you forward in and with we don't quarter, to you with soon.

today. call. thank everyone for your and interest me And This your Manitex concludes time let in our call on the

Operator

call. Ladies and for concludes conference today's Thank you gentlemen, this your participation.

now may disconnect. You

Manitex International (MNTX) 7 Aug 242024 Q2 Earnings call transcript