MEC - Earnings call transcript Q2 2020 | Mayville Engineering Company, Inc.

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Operator

Good morning, and welcome to the Mayville Engineering Company Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the call over to Nathan Elwell, Investor Relations. Please go ahead.

Nathan Elwell

you. Thank thank us and today's for you everyone, on joining call. Welcome, begin. quick items few before A we

statements. First, some of note the during the please that of Securities this will that meaning XXXX call results anticipations, hear in amended. Exchange you Act statements and assumptions will involve as XXE expectations, intentions, could materially and those beliefs, actual consist from differ Section Such forward-looking of forward-looking statements within express of forecasts. plans statements the risks, uncertainties, estimates, of the information our Because forward-looking our these

For the update please XXXX, federal including XX, more with as any ended We XXXX. period to law. the information obligation our regarding except required our SEC, by December for such ended and risks March do XX, that for and the not no XX-K intend period see such assume uncertainties, filing filing on securities and statements, Form on forward-looking XX-Q filings Form

Second, these certain this is the call will is measures. earnings financial release, to available included closest measures Reconciliation measure in which of GAAP financial non-GAAP mecinc.com. the at involve a discussion of

Chief me EVP Officer; call on Bob Butz, is Chairman, and and Joining Chief and Todd Officer; Ryan today President Raber, Marketing. Sales of Executive Strategy, Kamphuis, the Financial

over First, call financial to an Todd Bob. results Bob then I'll overview our the will provide will and that, review of performance, our hand guidance. With

Bob Kamphuis

call. Good Thank earnings Nathan. morning, you, quarter to everyone, welcome second and our

the to economic with our align quarter environment. second and challenges with we organization presented familiar current appropriately The unique as our business both continue

I'm halting Despite pleased generated regarding to adaptability key manufacturing MEC's nearly and of some million. sales business essential of to we we for the and EBITDA second net facilities MEC the enhance that of temporarily impacted planning, we at our period, I'm the continued that with for service pleased and long-term facility of see and and our customers reactions. million holding $X.X the changes production $XX.X schedules, to shutdowns, I MEC of success. both adjusted shut and delivery our Overall, and the at many during and by agility on coordination, optimization business down Our the especially top designation, half improvements position process required customer culture. customers profitability realignment with adjusted customers likewise COVID-XX action. pleased particularly and line is our action-oriented ingrained quick Based our our high but production some These performance their including or levels the facilities. was was nimble all implemented quarter. pandemic,

our to and While inventory levels. ensure supply we are initially increased in safety appropriate now we April, returning March levels to early late

As albeit expect continue inventory generally chain specific the priority. gradual our is on pre-pandemic a the our and in as workforce a of conditions, and safety in reminder, all lower at market May, near supply our top to than restart seeing U.S. remains centered levels, well-being to pandemic, depending which Throughout in began we customers we the term. heavily are increase volume our the

of time considerable resources strong as spent cleanliness ensure and to have to facilities Our and procedures distancing. ensure hygiene, needed teams social the our personal changing

who amount basis on the so. distancing practicing shop manufacturing the home And who continuing benefit on naturally are Those other can a need are come our to the our out, from regular facilities to We from each sales of with facilities limits which in measures. work social do have being greatly in spaced also associates careful the floor. work workers those interaction

people coupled that significant only Given in our COVID-XX. benefits our economic cost positive We of destocking I handful organization number not opportunities, employees all, of past essentially several revenue demand for new areas, landscape, light that facilities Prior All customer, have DMP, our and have COVID-XX amongst adjust rural our savings and test of continue located are we in key a automation from was months. end the with pandemic, believe a seen the more markets. over people cases schedules seen our structure our with combined process impact of working and a in companies the changes the performing to top was into a our had developed reflects safe assets, throughout performance our our COVID-related have most valuable technology quarter. made material quarter we current our production environment. that In line industry we've to second XX to shutdowns, ongoing and ensure inventory which many translating overall Similar well. to integrated to the emerging investments during cost our of

hours countless and and our aligning near spent to profitability enhance our flow efficient for more term. structure make to the long have We cash maximize organization and our

an term economic of perfectly the Based and capacity that you consolidation on greater Our pandemic with this frank accelerated of the To short-term the would move and was gains. and of the into the became decision was combination Carolina in largest apparent. requirement, our impact action in endeavor was South manufacturing item undertaken as before the the resulting our both for pandemic efficiency being investment second new of technology manufacturing facility be consolidation quarter this the the capacity us locations. became the footprint Greenwood, something deliver plant initial other and from smaller studied from long

efficient As smaller, a be facility manufactured facilities produced us manufacturing all that with to capacity other footprint. maintain the at the will country, same were result of around now allowing the components this X a at more consolidation, capacity

certainly has result on of of and of Throughout majority execute potential demand of While continuous improvement opportunities. team markets, and end as lower have us the areas identify our we proactively cost the a the continues challenges, to savings external our seen a set pandemic. pandemic presented

production markets a commercial have Where suffered in thinking continues markets, down to start issue would After by destocking during the be a Inventory this midyear, into that many particular, quarter. will portion continue most customers resolved vehicles and it now second believe the shut year. the of construction access to Our we key our initially equipment and in recently. large of these factor. be later

While an been top all weeks, vehicle be when return, those contracts. and maintained factor important our that in customers' have performance, to returns, reiterate orders our relationships the to This deliver inventory we we've note, On start of we improve means on volume positive will report for that ready seen just impacting will yesterday. our and to the markets want rates received recent destocking customer a July build line I also volumes including quickly. commercial has

order, to have reached to the reason that believe As large fleets have we are we bottom. continuing and

a one are engaging dealer recreation navigate inventories bright as of we market many production. encouraged believe activity lower to military outran this as trend the stayed their for relatively that for to demand be seeing we where light to continue military order will we And staying continue past within also spot the outdoor be end that We vehicle across are us Powersports the will oriented forms particularly in home We closer to consumers months. are We projects. home. seeing has believe served environment flow segment, consumer and market by several are encouraged a prosperous the business our during as current the to continues positively. our as by this sector stable be continue

about this markets to team quarter. opportunity new great In new expanding at order period. this growing our the progress make for and during spoke up business of into market continued order during we We a last on terms call, PPE the Since related second volume share, quadrupled. last wrapped quarterly materials on our annual significant nearly opportunities the

a follow-up of of contract, coming we As with may similar there our orders in that magnitude result quarters. the this success anticipate be

opportunities win will our in key one market. end initiative anticipate of also from that We we future. takeover more customers trending the be is to win there to the business agricultural in positively, and This sizable continue

relating Our additional continuing share the market activity in is to our markets on capturing on trajectory. more horizon. are military upward end substantial And their efforts

customer procured line is expansion this prominent market new sizable project launched which with relating also being a product a our powersports another We to end blue-chip in fall.

and current addition grow to continue customers new make continue reshoring markets. and both regarding in headway potential new will outsourcing, to customers. having add the with projects to in takeover current prospect for to We share customers, projects the These

We excited about structure, a We're our conservative coming minutes. continue credit growing agreement this updated potential see to will in flexibility navigate our the on to forward. to a amended of management. provide topic this capital to the we Todd in But projects potential MEC's expect number the the during an capital believe, and months. strengthen insurance layer of to discuss the of look going new detail opportunities On potential keeping and for new few extra exemplifies pandemic. the you another move the prudent we note, impacts more quarter developments in to approach to forward

We monitor share, potential also and gain relationships organization new enter geographic competitive position offer to form for market new blue-chip continue the markets. diligently acquisition products, with opportunities. to customers That landscape the new will

to pandemic, long we activity While quite believe the muted there consolidation be the will M&A overall term. been has due that more over

just a mentioned, fulfill on criteria needs investment-oriented strict the As all our to needs I adhere approach. to acquisition any potential and of combination above always, to return else,

service control, on past been notably to be we ready navigate, that we So deliver the the when best-in-class continue not easiest it need to our months they the customers focused while these have can to to being several matters most.

have continue and do of in to adversity. it XX for even we this We done face years, over the

top again our Fabricator consecutive magazine were has our proud We've this Speaking on success. our to named Fab to growth focusing say I'm we able in organization longevity, our by the list largest stay customers' led the the always once that to this by XX on been list. June, nation's year the through that marks fabricator, commitment the to of tenth

do have we faced While term. recently, mindset challenges consistently prosper more no so reason we and important why customers this is will our long the we that and an doubt over have

performance this know our a call displayed want excellent the It detail, and makes to we a resilience the will have team come I during discuss to moment Before I Todd. takes dedication the service workplace. a time. MEC now in and efficient appreciate this of I difficult stretch employee for I through thank And shareholders, and pass providing successful, With to financial all. they take a your that, Todd the safe experience, to organization. stronger and to I to pass together, customer more contribution to the be you Thank have much best. that that call on our team that publicly

Todd Butz

providing our guidance. on balance a Thanks, Bob. before I'll commentary look begin quarter our sheet, second at thoughts financial and our with on performance liquidity

prior same press our as the million is of quarter we recorded decline year in compared pandemic manufacturing a $XX.X driven second decrease noted period, to The construction to destocking MEC down of production activities, the X in access continued during As during were on due release, the markets. volume million and and $XXX.X end XX%. reductions sales by net customer shut this X customers forced our particularly our business and are an equipment Even the of vehicle, to essential though designated agriculture, many weeks quarter. as average customers pandemic, for to for commercial

customer preserve of production reopened MEC As reduce at our cash it own down some quarter, customers facilities and to flows. these cost their when temporarily levels. the shutdowns, was the a Toward manufacturing shut lower its end of of facilities, in direct order also manufacturing result

during also as intact. production the same quarter important marked of $X.X remain pre-pandemic prior quarter manufacturing is Manufacturing pandemic, gain period. compared It loss end, all for $XX.X margins a million components the the of XXXX year customer produced and second of customer As that remained lower volumes to relationships, a to for note than programs million levels.

realign volumes reduction in related tremendous These we various its basis efforts and underabsorbed are the are employ helped structures, points and that we to will volumes several the Although overhead. related unable return. provide improvements cost our when cost quarter reductions overcome margin business cost hundred in And sustainable. reduction of

to transfer the charge to Greenwood cost sales quarter the production the million related other capacity the company to facilities. X facility a closure incurred during of $X.X and of Additionally,

prior million additional to period. We second for moves cost $X.X as to for Profit of million expect same the third $XX.X the an XXXX these sharing million bonus $X.X the compared in deferred of incur quarter. and compensation quarter were to also year finalize expenses

onetime Of and course, charge, to long-term million a incentive a deferred $XX.X quarter included specific compensation IPO. second XXXX, plan expense the of

and expense million for ESOP compared $X.X this quarter and to by decreased expenses quarter. million $X.X the as $X.X these million during the discretionary gain were expenses bonus sharing to $X.X items, onetime period. selling, those accruals bonus million period, of sharing the second second due $X.X Excluding which XXXX year the the and was of prior year to the discretionary and administrative a million included IPO $X.X expenses. quarter expense during quarter a million gain Other Similarly, for general as for accruals to of of DMP due the onetime the this compared same was during elimination gain change elimination quarter. acquisition-related prior same

from XXXX for achieved $X of to million initiatives. DMP, The synergies second XXXX million million cost last charges of the decreased $X.X pandemic to the to same the quarter period. $X.X due onetime compared the year ongoing Excluding expenses integration these to prior and was year, for of lower was savings entered $X.X through credit incurred. travel interest due due decrease and and into loss Interest in lower expense the the during expenses as is million million our $X.X due of to rates was the XXXX. which quarter lower Income amended the tax September quarter securing million debt $X.X agreement levels benefit second compared restated this pretax through XXXX as to

net use this which not end, prior along future losses does the -- and driven quarter year was expire, federal will pretax The will mostly offset million expenses. NOL quarter, be IPO we it used incurred operating from as with and losses loss forward to onetime Our acquisition-related was earnings. DMP of carry $XX.X by

$XX.X the the our as continue million tax EBITDA million be rate same to period. We of was second for Adjusted $X.X quarter prior XXXX approximately to long-term effective per year anticipate for to XX%.

flows very for offset the of prior during execute year Now debt aforementioned of let the effectively million first $X.X current was lower timing Cash during quarter our million in balance half for compared by were million. initiatives adjustment cost accounts the destocking a million sheet level The operating of $XX.X provided in period, as Capital due inventory activities to able expenditures year. and the prior challenging receivables the issues. to pandemic same decrease holding address year, during payments half payable, period. XXXX $X.X our our liquidity figures. half stable. am and The to a XXXX of which while $XX.X as year and million decline first technology in were net investment to to XXXX was by the me decline the of of same $XX cycle, XXXX. were $X.X focused of reductions driven expected and pleased we're that on the be first Capital leverage I in accounts Despite automation due still by XXXX versus range which completion for are new $XX the million of the million. investment expenditures to to compared

ratio original maximum This level credit adjustments quarter in increases quarter Adjusting X.XXx amended with from serving future entered along company customary secure usual until exchange quarter. of and customers to of quarterly us providing The the facility relief covenants. capacity We in to the announced, fourth previously amendment its fourth the date negative focused XXXX. and the the X.XXx the As our returning credit leverage allow to amendment maturity for thereafter XXXX. added against impacted. pricing, which agreement X.XXx The not and was modest of was through debt an other on growing during macroeconomic agreement to the insurance the will events, of business. remain the to

leverage As lower $XX.X ratio threshold than of debt June in was covenant XX, of XXXX, of million, our total significantly X.XXx. outstanding resulting net a X.Xx,

position update outlook ongoing most not our the on I'd discuss and the the to consistent related in economic today. top the Now a and uncertainty impact XXXX. of briefly to COVID remainder guidance we of customers, of for are like with our social pandemic, Based

believe be quarter for the we XXXX second year. the point low of that However, do the will

fairly second the in with half stabilization, XXXX, we by business quarter fourth at year, For same XXXX of the looking year, across of the results quarter produce facility bottom see our When to a spread will From an line in first we a fourth of a half similar comparison comparison general for performance year, third to in as to improvement but last followed of rewards expect results the of the the evenly have second we conditions. the expect we easier the half tough gradual and the third perspective, the more expect quarters. optimization. do quarter reap while

Of turn back over course, the environment. this remarks. for pandemic-related assumes I closing said, shutdowns customers the will that significant Bob we to a experience or deterioration don't additional that in by economic our With call current

Bob Kamphuis

today's Thanks for Todd. the to and the action align COVID-XX to organization continue take and we MEC, we took cost At necessary your I'm stronger demand, we proud of report, all meet making will more and to our and bring market ongoing overall our economic to to an reality. adapt to to approach quickly challenges Despite market how are appropriately structure efficient. built to innovative measures circumstances related

with maintaining customers towards and key to value In our on control be industry-leading can focus continue addition we our to what with customers, service. and providing constant dedicated we'll communication

the We all our above we'll safety ensuring facilities of that our will focus at prioritize clean times. all else, workforce at and and are safe efforts well-being and

generate like several While ones, up goals both expose months our and our call with strategy challenges Operator, ahead. presented shareholders. and complete, new have long-term With we'd our I go questions. have in comments open continue ability achieve us to the value faith to our prepared please these to for and us ongoing in for to our turn, past

Operator

from comes Dobre Mig R.W. with Baird. question first The Instructions] [Operator

Unidentified Analyst

during the Grabowski on looked? you on Can that recall that last quarter about maybe morning. July trended XX%. and about Joseph It's how said the was April's utilization you overall call, I for Mig that how this talk

Bob Kamphuis

the XX% we with type overall I'll I results quarter second the of you've decline. had and tell seen a you, the guess here for Well, volume

June and tough again. May months. So were a April little got July and better better

when that's improvement, expecting. talk we're steady we about So what seeing that's

Unidentified Analyst

Great.

the the carrying how and then can between less yourselves work destocking of production? Okay. what destocking Are by does mean just of you clarify OEMs Or OEMs? your it dynamic. And anticipation is in the exactly just you components

Bob Kamphuis

they our their basically inventory reduce customers' on they're about amount goods working the inventory talking have that inventory, they're Well, we're they finished inventory goods finished in to that going the of that pipeline. and destocking that process have

not out So on. support go that levels and which either production sold their inventory into adjustments and creates turn we or activity, that -- goes and out is basically, the inventory of in of those inventory, sold

Unidentified Analyst

And that continue year? adjustments Got the expect rest you that it. the those for of

Bob Kamphuis

Well, a level perhaps, growth -- a making fairly activity. That or activity down, growth same consistent that's in to not results we level much sales the But that at robust they at their inventory finished is it get their their continue worse. the think we'll inventory until goods on that relative see inventory end.

Unidentified Analyst

Understood.

then maybe me. And question Okay. for more one

orders truck mentioned couple the you from your prepared long As X OEMs? increase months. remarks, does translate that X your rebounded here How have Class components in to last Class for of the demand

Bob Kamphuis

question? would answer that you Ryan,

Ryan Raber

Yes, Joe.

we that as think got ramp X the July, into manufacturers up this at point. and Class increase are build kind to of into I beginning rates June, fairly stable

May I was June were anemic. pretty think was July much April better. the and numbers good.

of aren't be be trend we've carrying inventory. to said, We got We a here. a like Bob our just-in-time I lot of demand, think close delivery customers companies. going would kind good to tend

timing. growing and to respond in very retail follow terms end with closely of to hopefully, market will changes make they as So sales their them

Operator

with from comes Andy question Citi. Kaplowitz next The

Andy Kaplowitz

everybody well. is Great. Hope

quarter point the improved for July, XX% much versus Bob, a the following quarter? like that in around Mean sales, decline versus for what but out the mean does question of was decline better improved, sales decline that you curiosity, already? of up cadence sort at just on the just than the of So XX% said last

Bob Kamphuis

when say Yes. XX%, even I in wasn't quarter-to-quarter comparison, guess, XX% that's you June. it

I And evenly in to a half that's markedly so or it. good more Todd's think I talked he and July similar But spread, first quarter think better being fourth about think when about comments, again. way to And half. third second

Andy Kaplowitz

a that to sales? by clarify, or first versus can just is Is that terms for EBITDA, just What improvement In And EBITDA. half Okay. in that mean in half that you I that? decent does does assume Todd, half. mean Maybe guidance? Bob clarify, second it second what similar of means Todd, terms mean you of similar

Todd Butz

volumes, the that to during to in an That's would you at we a more second but expect it primarily those the From degree, improvements when fourth cost we'll through spread third benefits. quarter, perspective, of all be follow EBITDA made certain so consistently would the look yield improve and because the we've quarter.

the just half spoke So should I things of half because from second of. EBITDA EBITDA improved first be those

Andy Kaplowitz

you Sure. quarter. And the Todd, little bit than for a did of around decremental sort margins, better rehab

should referred high you in get sales be teens. of to, think, drastic half? of that's sustainable? second it given Or that Is the as better the I something as sort in even declines just won't here sort

Todd Butz

challenges situation, better, XX%. Yes. And a made, that improvements based months. we've I the it margin relates Defiance, that maybe and the done XX%. that forward range. than XX about XX% would to expect quarter, be would be to doing circumstances historically, more -- consolidations we We're I maybe decremental over margin normalized integration quite honestly, to certainly, historic we've in levels and less XX.X% Andy. the on decremental given to automation back been all all We that unique that second had again, in of the finished quarter-over-quarter. we've last our plant the And the going of expect And

into made structures. cost our really sustainable, reductions definitely we've So permanent cost some

Andy Kaplowitz

just from then And more one me.

mentioned, military, You maybe powersports, spots. as Bob, bright

they or the decent you is of So contribute And growth that on of sales that of kind could Can less in declines I more stabilization the half second the in year? you've give this how know color a seen those much to some us business. maybe powersports businesses? sized portion

Bob Kamphuis

ask more to was a then of was that inventory but deeply. comment make a Ryan maybe quarter. lot comments, I'll second There Yes. general depleted in couple I'll of the

having down considered significant there. nonessential, while that inventory, typically non from shutting facilities As or production essential consumers we're are the bought disruption are

end, some chewed low. their our is too be inventory. that level. end And good of inventory to Demand seems customers at now they at up a at So

continuing One end their of things. inventory, those X those going the things are demand so the that X there's markets. from regrowth on So in is customer and

Todd Butz

Andy, our noted, dealer lows. of And of couple at inventories a sitting really, customers I'd add few points. XX-year their just have are A like

-- destocking, some be lot talked obviously more not this a powersports the about the to first-time buy, the of drove the we're were just are just market would about recreation of planning there's market out buyers that restocking outdoor demand maybe as we've a thinking new pandemic And those those in So into maybe only a lot entering is it to but that that for unit of sitting sidelines, buyers on the such and volumes. the boosting families space.

Operator

question The Fisher UBS. next from with is Steven

Steven Fisher

I question just on on margins. Andy's follow-up there wanted the to

the taken action reduce have guys to costs. you As all

Just about decrementals have what recover incremental we on much several XX margins said the more light XX should those come over we as on thinking the Todd, downside, so think the as out the about of we about months something reductions? but be not to the we hundred might of how kind should cost incrementals here hopefully, in way about up. maybe think reduction you the but next, points, basis this of to start

Todd Butz

XX% had So think margins incremental low in when we've again, you range. were historically, that that

now. changes permanent reductions margin our cost in these XX% in would incremental ranges going that I got these the and place, expect we've that will higher forward, Now be

the benefits basis true margin look won't look up of are when half that of in consolidation of yield probably ramping into volumes basis, at to We XXX initially improvement second the all third quarter. you year, XXX at But of an final the as still we're quarter. think you we our return. this when Greenwood those points the looking annualized knowing that facility I So in at

we I a it's XX.X% And So level, just I say, let's when EBITDA. at $XXX let's say, -- normalized and XXXX marker, finished at a say over adjusted XX%, look million at as around volumes return, maybe mark.

adjusted being getting We and maybe to have XX% those at levels even EBITDA. that less pathway now or back

we'll that have market do we'll the line into we of as sight. this And But as benefit. So of get of year, look rebounds. that get you obviously, more that some certainly,

Steven Fisher

year are yet? the that seeing position then moves towards [indiscernible] supply customers from consolidate suppliers consolidating to over perspective chatting, a ago, a you started in discussion And must and downturn, a we that helpful. was That's would what when there's base maybe any tend

Ryan Raber

seen takeover wins, Steve, would is Yes. Ryan. call We've avenues. came and multiple from this definitely that we what

I think a viability awareness the some financial about the heightened at definitely there's our of OEMs of now competitors.

in takeover cases We just folks have in participated in proceed where couldn't some business. business

Now build the overly folks they on. ones take material that definitely weren't stuff some goodwill to trust and but we're

middle quote in activity than strong, pandemic better in our incrementally last quarter So the second the and of the the quarter. year stronger remain than very really first

economic we we're are normal the on, say opportunities of market-based I more outside So situationally definitely would working on new see conditions. projects that kind of driven the in

Operator

Blair. from question comes Larry de with Maria The William next

Larry de Maria

truck of on destocking I'm It of weaker expect perhaps destocking in things, not, good is example. top to and for as you touched shape, obviously, on but a there's long -- about that. this markets few unclear is you powersports go how for? guess these this know inventory I like are sounds on I

out destocking little biggest Is is how And just a occurring? long? just it bit So flash where of another the quarter?

Ryan Raber

this is Larry, Ryan.

for year inventory commercial I in ag think at the CV, really the in down construction vehicles. is setup here destocking and

really the but or question. the because headwind June if customers the the into probably had longest industry and anticipated, really and about that's little When I would I our get of same commit the higher that you July, a even say a than of done think we market, up. equipment asked biggest most still coming the it's them mostly stronger access year, board with think wouldn't construction most looking that that's think order metrics and the backdrop

if A of sales saying needed access. would as of were the destocking large And a ag although ag, anticipate a particularly there. retail bit they still construction most to gotten you that out we separate little there small to better. So be headwind, little and OEMs some small hang in done kind from on on has

tractors, small farmers, turf equipment. hobby to powersports to similar So

has have because And there I continuing better to but well. think out some of good just work inventory help been point, at to the little that bit news age. large still that's in some there shape, to that do of ag flat. as fleets has are will stronger lot The consume cycle a replacement volumes a a is be

Larry de Maria

That's Can just from better, then just talk Okay. can bottom things down mentioned getting know mention -- is on Maybe order are board the far Could up for July they how helpful. April, comment sequentially? order very you maybe July, year-over-year? improved up. But boards? quoting in I Or just switch looking business. and is you about we takeover we especially

Ryan Raber

I think are quarter. mean, from we definitely second the sequentially I stronger

I coming Larry, got third into really then the and the year-over-year. the we be down this was It going started quarter worse late knew to destocking pandemic say, through let's turn, vehicle think year, to last commercial year.

even COVID, staying would dealerships So home. is market course, folks were at expecting the areas. some and powersports lockdown those out say the normal were when during declines we I in in a exception market that one

dealers were got least is in certainly at the stronger let's was, higher back that And the to volumes would X to the space. powersports year-over-year. to up, So and of activity out a starting of or X-week and call lull there point it, no lockdown open once flat certainly, folks sequentially

Larry de Maria

I consolidated Apologies term getting Difficulty] What's bit the and but penetrance dollar second quarter? a I you're in Okay. to lower, XX% question. or margins obviously you you the absolute if know at know volumes XX% already, from and this [Technical answered incurred plans. last savings? what little XX% those but what's talking absolute restructuring And about the a then was you

Todd Butz

Larry, this is Todd.

fixed a the is at that other that replacing lot into of that, we the facilities X Certainly other as Greenwood at redistribute overhead. we're work there not looking facility, of So closure locations.

to haven't be annualized important just in that savings at it's locations. at people $X the the overhead that probably to of think that $X million cost on I of again, -- cost savings to retaining to It's saving. any lost million we're as that really well range as maybe because fixed an the note, just business. will We're we other But of it. we all be look going produced

Operator

At further this time, we have Instructions] questions. [Operator no

would So back concludes Chairman, turn conference this President the question-and-answer Kamphuis, our and over Bob to like session. to CEO. I

Bob Kamphuis

for in we look all of interest some Conference We forward seeing you virtually your today. you time to Jefferies tomorrow. and thank during appreciate Folks, your MEC, Industrial

go chat as and you. we'll by. the a some good have days more Thank So day,

Operator

now conference for today's Thank The concluded. you presentation. attending has

You disconnect. may now

Mayville Engineering (MEC) 8 Aug 202020 Q2 Earnings call transcript