Earnings call transcript Q4 2022

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Operator

Greetings and welcome to the Alamo Group's Fourth Quarter 2022 Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Ed Rizzuti, Executive Vice President, General Counsel and Secretary. Please go ahead.

Edward Rizzuti

you. Thank should a you press of all release. have now copy received the By

missing one would dialing one one a replay week. replay begin send copy, one can call, anyone XXXXXXXXXX call on a However, is passcode list. distribution the but be and sure which the us be There XXXXXXXXXX, after the company's release please at like we a and by will with you make you're The XXXXXXXX. the contact receive will will accessed of hour run for to

the the will www.alamo-group.com, Additionally, call days. website is for available on being replay company's a webcast and XX at be

On President some opening Executive the questions. Treasurer; Officer. Officer, line President and line make me Wehrle, and Leonard, Management Dan your will Chief Jeff and Officer; Executive Malone, open Chief Financial the and Chief we'll up for Sustainability Vice today Executive with remarks, are Richard Vice then and President,

in certain earnings release. During the are our the to call numbers GAAP attachments applicable results included today Reconciliations reference in numbers management non-GAAP non-GAAP to of their may remarks.

Before about Jeff, statements. to I'd turning forward-looking a few call the over make to comments like

made will of of statements We forward-looking that to Reform today provisions making safe the XXXX. harbor the are Litigation be Securities private pursuant Act

results Forward-looking the company results. which forecasted this Among only statements uncertainties, from currency company's differ contained and company's periods in operational time update COVID-XX any other disruptions, issues factors weather, SEC involve cause does are listed date. speaks differ known and herein, could obligation impacts, undertake materially Market the materially seasonality, information from demand, chain to those actual geopolitical and time which of issues, actual cause future not the competition, may to as unknown supply reports. The related to the risks risk including which to results following: in factors

to ahead. like Leonard. Jeff, introduce now would I Jeff please go

Jeffery Leonard

year-end begin will on for the of We results Richard us review the of our provide XXXX, a will to financial joining thank additional today. our then Ed. want quarter call all I you for and you with Thank results. fourth comments

taking Following will our formal questions. forward we your look remarks, to

So ahead. please Richard, go

Richard Wehrle

good and with everyone. and income produced products, demand chain fourth sales for that solid net record driven closed quarter a despite net performance persistent XXXX and by Jeff headwinds. Thanks group's labor morning, strong Alamo our shortage supply

of for quarter XXXX an were were net million, million of as consolidated Fourth sales quarter translation currency over $XXX.X increase dollar to by impacted to quarter sales negatively to quarter the net U.S. of fourth XX% X% last $XXX.X Fourth in compared the strengthen. XXXX compared year. fourth just continued the

initiatives, dollars as well surcharges freight freight already supply manufacturing by Both chain dollars as issues, to to in improved inventory and were invoices. margin price improves impacted shortages, the margin in it the both XXXX as basis fourth by gross points margin XX the quarter due $XX.X to significantly to percent, compared on as inbound efficiencies. year, which negatively Gross added million, up costs was higher and labor quarter of earlier did take be continue percentage

diluted income fourth for million diluted of for point was of net an XXXX. or Consolidated share, one of million XXXX -- of income $XX.X versus for fourth quarter $X.XX $XX.X the net for XX% $X.XX increase per the quarter per share

the in and costs both control to efforts expenses profitability. support continued help Our the increase

for mowing for XXXX products America and quarter North XXXX. way the million, same in XXXX quarter million labor strong. margins fourth increase $XXX.X both improved markets the as Operating and Vegetation were XXXX. fourth demand and for XX% net disruptions, net in compared to primarily of due Fourth price fourth the delivered $XXX.X remain and for a quarter the realization income quarter forestry division. was million $XX.X of shortages period in versus $XX.X and million, XX% to Management increase up operating chain Despite sales Europe for of for agricultural led Strong division this supply XXXX tree efficiency. improved an solid care governmental

division lines. of a XXXX to XX% snow for division's products XXXX. in quarter excavator were of truck sales performance in sweeper fourth improved solid This due compared vacuum the extent net and Equipment $XXX.X Industrial fourth and and the up is a net to quarter the million million, sales product removal $XXX.X to of lesser

in this this as While operations, shortages quarter, improvement parts not to continued quarters. as efficiencies, truck which although division's other component turn unfavorable manufacturing chassis delivery impact previous in significant showed drove

the fourth for sales million of debt were $X.X million in XX% Operating products price our company's the the for was compared in billion quarter for billion, A the $X.X income XXXX strong both year at of main record along XXXX the of up $XX.X were the of fourth drivers XXXX, XXXX. to demand quarter XX%. for Consolidated increase. with positive the year a full $X.X impact, initiatives of in increase full compared divisions coming to an

of million or an of Full for points versus or $X.XX year over experienced $X.XX inflation higher XXXX, resulted million we and a income was full XX%. Net income was XX costs, versus of margin as inbound diluted year full $XX XXXX diluted net in $XXX.X of year increase record down the for XXXX. purchase basis per full of for components, $XX.X about Margin the of freight costs, share, up year which also higher gross percentage and was all costs. million per absorption XXXX the share material

North $XXX.X governmental XX%. $XXX.X division all product Vegetation demand Full tree $XX.X in million XX% million, robust the Management to both experienced versus XXXX, The and categories, forestry, prior were year. year Full income in particularly for American was up and care compared in million operating up sales net year million for European agricultural XXXX, $XXX.X the XXXX for and division mowing.

trucks to the $XXX.X $XXX.X but way, for million an excavators Sales lines product XXXX. compared all net year XX% full million contributed and Industrial XXXX division the the Equipment increase. For sales for XXXX, in led vacuum were of

year X%. constrained were $XX.X costs. This of million both costs versus XXXX, Full chassis input impacted in freight results disruptions, deliveries, material an by income operating XXXX increase chain manufacturing supply the million inbound and for division's full higher of was $XX and inefficiencies, year negatively

end came backlog XXXX. excellent up at XXXX. for an backlog over compared in of billion. company the of to company's of $X full the just an XXXX year The for for was This start XX% increase This positions the

additional financial for Turning year-end XXXX. to the few a items

Working to receivable receivable and $XXX sales were working ago up in solid and Accounts XXXX. sheet higher million Our remain to at The end results a from million, balance inventory. $XXX XX% accounts from the increase increased continues of capital strong. million from $XXX up $XXX volume. million year capital

on major no steady. We continued pleased really remains be very collections receivables cash incoming with and to and issues

million, modestly higher supplies. key the components is process, and that's levels. service almost higher for The EBITDA our XXXX. from Inventory is record although compared by $XXX from for the of And of down to reflection a material as this work finally, growing XX-month also to two purchasing levels $XX efforts cost million the up support parts reflected company's of compared up in XX% trailing to constraint has during our debt our increase products higher well customers time inflation, our a quarters, is end This last demand XXXX. as

is focus inventory inflation will to controlling remain XXXX, should pressure cash for as strong and on both our expenses, profits expected reduce incoming we to continue consolidated levels. be debt costs the balance sheet as margins. be XXXX be extremely as For will our in continue and will put to important flow Increasing disciplined on to

as prices margins. material maintain based adjust also needed costs in changes in order and transportation will We our on to target

the inventory help hold work we on We're performance -- of in focusing supply future chain amount further also improvements process. on in to reduce

will supply shortages. throughout company, needing for be the heightened challenge biggest our labor demand chain Our current constraints in given the products and

XX% our of pleased our the XXXX. regular Board increase dividend a We're recently share of quarter first for in approved per quarter $X.XX that

With Jeff. over call back to that turn will I the

Jeffery Leonard

was Richard. full and to, I'd best our able history. company thank quarter very records cap you, again, joined market year pleased call off the conference positive results for company leverage earnings to XXXX and today. the financial like set We sustained new to and for in everyone also that were sales with who's momentum Thank the fourth our

were Sales effects X% as of by XXXX. divisions experienced we by that million sales our strength our $XX.X sales period. or significant of more the in translation XX% than quarter operating by double-digits throughout the increased up during despite display fourth markets both the reduced currency to continued Net the to compared XXXX,

with year the impact sales $XX For more currency X.X% having a XXXX, than million. or negative full XX% of a translation

and this to equipment nearly of sales mowing equipment XX% division products net a XX%, sales in increase but governmental led rose XX% Sales and in Management also sales more than sales the segment mowers tree growth. European Vegetation sales fourth the of division's Agricultural of nice of America still and in in than softer, care forestry were increase North seasonally a showed South XX%, The more governmental in quarter America. while by

were its fourth by into were led sales increase XX%, vacuum sales by parts snow Equipment excavators while pre-collection nearly up also quarter experienced XX%. and related The division's removal America trucks Industrial sales sales division XX%. and by of quarter up in of XX% of equipment of net in sweepers a North up many the parts cold weather the drove equipment, during spare street

performance during quarter and XX% receipts chain Compared approximately Class improve same while to X to declined prior X were the the in chassis also period. quarter. the in of higher modestly XXXX, continued Class fourth Supply of receipts the chassis truck X year, fourth

remained Equipment within capacity nicely vocational of improvement industrial such Although, manufacturers, the components, ended Manpower Supplies further X in supported remained us, improved our to chassis wiring Industrial division. trucks we of constrained as chassis with more and major remain larger Class the quarter and our constrained we job sales in sales than critical concerning by continued hydraulics from this equipment other allocations receipts growth. the operating and we to harnesses, and openings anticipated. automation efficiencies shortage impair availability

evident reported in for margin Fourth the this quarter the backlog the year. gross the year, throughout quarter. margin our highest As results XX.X% excellent, of our of was and we've remains was the in

structure also did the prior almost teams year, than our Our on cost increasing were X% streamlining our operating operating managing Fourth of flexibility. an controllable lower job expenses quarter costs. focus and reflecting excellent

our top and our at third expenses facilities of of difficulty] the removal XX%, fourth line quarter during one level the last these in operations XXXX. quarter achieved fourth manufacturing quarter. of sales ceased to larger also consolidated one plants U.S. drove activities income our We into [technical operating snow a Higher

demonstrate nearly this the in million from final than fourth excellent the quarter Order year. markets modest $XXX Our nearly year of down flat the us Despite XXXX. with of $X X% quarter. XX% XX% than provided than of higher opportunities of more decline, year-end billion strength quarter was end record at continue were of almost months during less the to order higher fourth established than the and backlog the to prior bookings third in the and

XX% year North fourth our the in XXXX. of This in relative quarter fourth mowing prior decision quarter. order a the Industrial as Orders rebound due program given the declined to Management our in to conduct partly high in The this businesses, division was bookings higher to division American order than only XX% segment. the backlog agricultural was very limited preseason Vegetation Equipment noteworthy were the

Officers, markets in keeping in governmental fiscal growth again Most Budget quarter. spending state year-over-year general states According county than receipts XXXX. during levels trillion spending aggregate, of XX% fund reported and increase XXXX, increased highest during since spending and fiscal XXXX, governments following remained Activity county the more National XX.X% grew $X.XX Association in in In association also state, a the the the to robust XXXX. fourth of total increase in XX.X% recorded XXXX. agencies higher our and to records during State municipal at the municipal revenue

quarter. demand industrial continue care very in at strong. invest was customers for forestry agricultural maintenance tree Our and segment upgraded facilities And very the from good, healthy fourth our also a for remained and to especially sector pace. right-of-way equipment in Activity

ahead, encouraged the remain about we by markets, trends our we coming As to be and visible in we the continue look company's outlook months. positive the optimistic for

witnessed yet concern While we XXXX. are half we've trends cause at a for for remain signs the a that of first not vigilant of potential recession, for least any

healthy quarters and several of forward backlog Our visibility. excellent large provides

Las internal employees therefore, several skilled supply improvements further recruitment focus next performance driving and on upcoming optimize Vegas. at the our in to month of the to manufacturing versions and quarters Our still also the continuing achieving CONEXPO our and accelerated capabilities products our core for fully higher, remains hybrid introduce We're of our excited next footprint. chain, show in electric efficiencies several of

now remarks. your our take concludes questions. ready prepared to This We're

go please operator, ahead. So,

Operator

Thank you.

We session. Instructions] be [Operator will conducting question-and-answer now a

Chris Moore question Securities. first go Please comes CJS Your from ahead. with

Chris Moore

on Hey, good Congrats quarter. guys. terrific morning a

Jeffery Leonard

Thank you.

Chris Moore

Right.

year XXXX understanding So, X%. and you for XX%. a or revenue come of takes below guys above Consensus And north the in for was XXXX? but was the for X% puts to guide, bit Alamo be don't the growth before little in what QX level significantly would

Jeffery Leonard

question. great Chris, Okay.

nice For last the X very but receipts these calls, to our are happen And now we The growing saw quarters increase big to I in in little position trucks. in a start supply consistent the than receipts chassis, think chain still that increase of QX. terms that bookings of lever faster in a fairly the in. couple Class made improvement that's would We I more. I quickly very, need of mentioned a be the on just profitability. the of itself bit remark sales and of

So, the supplies available wish answer and really really our thing we're was supply but to for be and question as isn't. would there them magic more us a doing to chain higher is to bit there continue is that it our formula, just I drive continue your for little is only the well. doing you in It's to performance, trend for capacity people its to the to doing, could take what improve the get some and tell doing basics readily continue, well. which to for I

Chris Moore

in you late February it mid-November. were in mean, you sit much? Has surprised late where of QX? now see level Or you at versus And that I from the November? or in that -- visibility availability changed chassis could

Jeffery Leonard

back Chris, you to got QX. actually go to

If into we we back of chassis expected recall, push you QX that fairly a some quarter had will the poor QX. because

over-the-road long large So, trucks of haul the now. That's it. slowing a we that truckers part boost. are got But on operate fleets also spend their

chassis safe a our few suppliers, there's traditional position. more our So, which to from is starting plants coming available improve

what back. fresh sounding to I the than a we're from hearing. it off going that's OEMs think continue picture the few truck and bit major is all much months was a for meetings better with We're

Chris Moore

term That's goal. it. about Got helpful. XX% very a medium talked operating We've times. margin few that

Now that is QX done.

terms that of we almost also? a pure Or thoughts You that thinking a months on XX% supply had record be XX% two visibility? Is in. conversation else should updated Any just in chain about? anything

Jeffery Leonard

just in of sure. do, row. said No, doing us we more I Supply Chris. it's think a what chain, I've for that quarters several

our Now make that's consolidate job producing the operations biggest to primarily strategy don't continuing so a and associated that this the a time footprint. our lags with point consumption, and really driver. about we've the talked executing few we But products of of doing that times, products market good closer Ocean to fact the Atlantic inventory in have across shipping a consolidation continuing is and and

new machine for in manufacturing our robotics we recognize same labor capability, we're to be some buying because accelerating tools, going come. our this automation and investments more the to constraint getting time, in At time we're more

fact, candid. In answer really yet see us an can to be none that, of to

Chris Moore

helpful. one Got And me some cash for it. comments last on of That's on Richard's flow. just

So, had the QX first a working you a nine you after lot obviously, months. capital in build had good of

quite -- a You AR still still bit. up is

beginning the is of thoughts, kind So, strong, what it that I of heard? pretty the XXXX be just certainly of in should terms year,

Richard Wehrle

think I all. at don't Chris, Yeah. that's to change going

If I up. do going expecting continue to very to receivable to to levels here, be it's stay do think the sales that accounts our going strong. we we're

Our excellent in DSOs are shape.

issue I'm not about So, a -- I here. collection worried don't

keeps incoming and third remain we're second is right think strong doing first, cash going So, from now. to quarter I

Chris Moore

Perfect. there. Thanks leave guys. will it I

Jeffery Leonard

Chris. Thanks

Operator

Burns Next question, Company. with ahead. go & Please Greg Sidoti

Gregory Burns

but there? been Morning. all? is here market the outlook the at, seen dealer change has ag trends in look I about the outlook -- that What your in know maybe as any the Have at you in you've there talked past, change for a you business? inventories any something demand

Jeffery Leonard

think mean, the slightly, at most thing thing. I inventories rising pretty are sits serve thing, good now, a I us bad it's moment. that good think right not Dealer that's the a of it but where a industry

strong The you. surprisingly has in ag to trend been with candid be

seeing signs quarter last year. But bookings of think have level that weakness the pay. remained a some been were first shows just back we good. It's the candid activity legs be fine -- of And I lasted in The you, good the right as still it's has it but as honestly, It's surprising. the I'm it that long future. foreseeable to now. surprised for cycle has excellent with seems

Gregory Burns

saw any order Okay. Or this strong Great. that quarter, there. in growth you more then, Any the is across particular? industrial the board? that it the side, And line color on product was

Jeffery Leonard

across at of a couple pretty We it's think snow changed strategy our I the been ago. much quarters removal board. had

been We like. snowplow supplier the for of a attachments have traditionally trucks and

So, we municipal made a trucks we the and onto That what state, strategy our product chassis chassis. And we the but supply. constraint like. what and the complete of to on deliver we're spreaders, shifted didn't you county and contractors operators, our the complete for demand plows. produce referring product to We build made large the this That's themselves. the part the saw and increased persistent salt

snowplow of nicely. very That picked has very equipment. that the appreciated up by been So has operators strategy business part the of large

the the On our have nicely, been and way remained street It's robust. the through. of has strong, balance business truck all division, sweepers been Industrial vacuum been very have rebounding strong

obvious to very but a high. is utilization cite for sky want it's fleet at very, I level. don't rental high Our a reasons, number

I'd soon. to into rental trucks that some get fact, more like In pretty fleet

waiting was through chassis Everything finally good are in flow to chassis board. pretty So, much just the industrial. been those beginning now. no, and it's for across They've

Gregory Burns

terms offset guess, point? completely of that? to like Have you in cost? you at now to pricing accomplish market able the And then, been inflation feel in have lastly, I Okay. the Do you price where are sufficient is, this you

Jeffery Leonard

Yeah.

mean, every We of the year. raised prices the we have. start I year at

have it, company. Greg. we're our We a XXXX in think of I part well. do discipline as of as just in front That's

the have been QX couple expanding last efficiency improve began margins our to Our by operating commented efficiencies only chain did but operating the as of in quarters, offset we've stabilize. as supply

I a clear So, answer. give yes, you

some we we backlog of think I We we're think very out front of in it. moved I And position. are QX. in weaker a nice the out in actually had

head So, of we're nice very now months position this the year. a into as early in we

Gregory Burns

you. Thank Great.

Jeffery Leonard

Thanks Greg. Appreciate it.

Operator

question, with Moore Tim go Please Next EF Hutton. ahead.

Tim Moore

on of impressive sales and I'm maybe trying and that congratulations which backlog, be year Thanks is to a number, get I'm growth sense the compared how much higher strong margin at If to a looking orders gross new just increased. a your record could ago.

you one to you don't be and around freight a do points ago? some orders XXX the to difference the realization basis full gross net ago. time about better year a don't than of backlog price surcharges more summer, preseason have might maybe think program trying just than be another I'm this compared think, year out if to And the on could margin back your by I mean

Richard Wehrle

say that in of for hard mean, been to all backlog our say. got I pricing all It's there that better. has now XXXX. would we've be would I it right doing

we And the do to actually to want comfortable manufacturing feel through have had We're flow exactly them I have think Jeff as consistent that. mentioned, the plants. key We be. with the a where here that. margins going is we So, to very

Jeffery Leonard

to our we've more as And not is side some backlog. reprice success, with say is of division. on would that much but as Management governmental the our One about had to Jeff. nearly this thing had that difficult other you it's business, We Tim, Vegetation I

that crunch were start some out of ones. of the the the in at those and were supply QX, taken chain contracts moved lower margin those So, older

than So, the we now actually couple profile better pricing we've had of last backlog and had quarters.

Tim Moore

some the last And that great. something you recently. that's related No, mostly made and to that's that earlier makes That's hear off on comments to That's good rolled year. just been for going sense.

an of You've fall? been extra final had parts as Or months later. back about the the to better that you that summer the arrive go improved last months? for that stage few in expense an after to absorption is much a reset and it it have a How couple might incurring last same when is assembly headwind few unfinished

Richard Wehrle

little and couple quarters, million last $XX The $XX ended of million. in in probably were or the process more our bit year we maybe Tim, so, work we a at even

need reduce system think I we chain coming of more that So, the the keep to can supply to some we move still to is think have We room I through is going moving number if it really the get we chain that. keep has growth, and way which pushed what to number mean, And down. that supply area go to through is, continue down, I the that want. where

Jeffery Leonard

I'll more now. Jeff. it's the bit you for facilities a the that Tim, in way right little to add are color And operating

While improving the is last tends just it in guess. supply the of and flowing through chain behavior flow month through, the of I to manufacturing, quarter. the more material is That's

a get the we so, in And final equipment week. of coming surge

having burn time in to pretty we're that's still We of month. weeks That's good to but push not final frankly. we bit out are, that. of kind our the like don't the over tradition, where products So, a

them, one-third to efficiency higher. still room for rising they get improved So, the think lot move of a about room ought there's of We've only to go. to improvement. nice There's I where

Richard Wehrle

flowing I little a and other -- quarter inside bit it suppliers. consistency too, just hit bit Tim, the the think is a be individual great. little from key would each more more the here that We equally can then month

Tim Moore

from uptick in thanks of in winter loss not if uptick? No, hear on maybe nice recent think a it's there'll and for that the that. to parts demand tree side, the forestry color in care do probably there there ice the demand U.S.? storms? And It's is snowy great Was flip it's Texas the going for right Or you direction. the be and any quantifying any

Jeffery Leonard

first my comment. you Give

you low-end probably And you of have forestry, the shelf, product that more the the it. high-end. than takes On don't not don't on because if the much range that Texas sell winter shipper the and

market that quickly, guess It the So, for mostly I'm sure the it's react The help business I trying our does contractors run. in to fleet. operating say. what current short doesn't parts is

removal. us to has already blades, when and excellent starts And winter in I it start for really tips -- tell what year, The always and snowfall been putting snow it early would on you, plows is wear November October helps this did really this people new snow the working. as

picks we've parts got good in an our I already share change record in to backlog plow in really all-time We gaining And our really, have we I selling So, and we've snow. business quality trucks. a builder this reputation nicely We a up. mean, think be particularly market snow been since that feel just a of is snow now, space. strategy. product, right produce

The of the it's think to you, that candid It here I because you from with will out be we've that high it to So, of enough backlog going is be uptick. cyclicality business. kind already now. take seen to for measure the hard

Tim Moore

Great.

So, two questions. more quick

or first is there's compared see XX% sustainable to XX% up you travel two will one of do you years. it bit to costs XXXX? a was back? Richard, percentage XX% to back nice tick do for to it to think The that's declined any Or that sales, think come if as costs the around one-time prior a SG&A. It

Richard Wehrle

full for reason that same there's range. stay that could year, a number you no movement think have But why little in some Tim, in overall, can't there. I bit

the the to done to keep had keep those on great and job. going that that in check a for continue place past is of after and a job we of the in our pricing sure inflation we and were first aggressive we've quarter putting We little products. bit make this to Our year that all was because control,

SG&A. We'll mean, that something It be. to do was were on keep I cost, close shipments that on mean yeah, we percentage-wise an we So, to just having controlling But a and if just to we keep that to here money And spend had heavy relatively where going it. the eye go doesn't have do check. needed not few need stay to expenses total we're numbers the could relatively in and we're going we out. It the and the stay depending just means on overall, should there bumps you should sales. how to

Jeffery Leonard

Yeah. I would because our made in of first emphasize round investments side we've on electrification our significant the percentage of equipment.

will now the round through a of that from half We machines in production to XXXX. move flow largely have prototypes to back second

So, I think dollars, up it percentages. edge the throughout will in not year in necessarily

Tim Moore

when No, think sense. recall, about that do action it start think save one maybe I Good. the really in-country my at year related then plan to that production, more underway delivery And If were you this France for for transportation and of big a and last quarter. of asked is terms I you margin percentages. of a Is timing? might fourth U.K. Australia, costs you makes that your and question on doing last made to study maybe policy improving improvement? I a lead was always story Brazil, in seeing or for that accelerating times How gross is to quarter customers.

Jeffery Leonard

takes while. It is. It a Yeah.

within some groundwork our structure do the to company. have of We legal

meaningful the then into still so And year. that. early to see next on that, have more to as tooling in We intellectual property think we much some of progress to our I you'll it into move have but facilities, facilitate then stages but seen around that. we're change from we head we're QX in to very some it, start We've of in benefit actively already and

Richard Wehrle

forward, because before, have Rick we as us just division allows what's are job cost It on as working ridiculous. and product Raborn what that go working two Having an Haberman other these be is that, opportunity the each and worldwide, difference makes is going groups big build this groups this Mike a Tim, intent things difference their with where exactly to together excellent their to of to is to huge. Add make heads, which done able is moving guys with this our to we've the said work is.

Tim Moore

helpful. Great. No, that's

for benefit later think a starting I that's that get you year. big catalyst this

lot. for So, my it thanks questions. a That's

Richard Wehrle

bet. You

Jeffery Leonard

Okay. Thank you.

Operator

Instructions] [Operator

comes Please go question Shlisky Mike next Your D.A. ahead. Davidson. with from

David Johnson

for David Good Mike. This is morning. on Johnson

Jeffery Leonard

Hi, good morning.

Richard Wehrle

Good morning.

David Johnson

wondering your flow the on Hey, for up looking at at Morning. free with XXXX, the sheet current larger in was the appetite the potentially I cash seen we've and there. Morning. low in what's past? company of M&A deals taking margins the a Given and here? are leverage balance you growth the time, that step operating from

Jeffery Leonard

Yes.

David Johnson

Great. Okay.

Jeffery Leonard

we've for market I and our deals, looking always balance good wanted we've don't examples portfolio Europe and larger And for we've between tree want looks to stated to and times. forestry in obvious our Europe, are bit we America But things that in yes, some North you give to grow Now to Europe, said reasons. a little the in those business time. care at right? Europe. more us, Particularly several

yes, And for good very moment. now. deals actively are us think larger So, for companies at is like looking right I that timing we the the

David Johnson

mentioned positions availability, All right. That's especially those filled? working in lastly, labor you you to to hear. Can great us And you're initiatives any on manufacturing. through take get

Jeffery Leonard

where this increasing we're reengineering, then apprenticeship not to programs, operations increasing certain and automated, just labor. partially we looking but automate, liberate automated can at in that lastly, the through Yeah. we outreach manufacturing And footprint communities been We've able operate. just our fully fully

volume product bigger the if to So, production made get low consolidate we where utilization better we country another in up that people the can factories shipping one of point-of-sale. our we side in closer destination, we're to

things. from be a from going work lot fight those us tough where But manpower of through and helps several still a employees of it's also that down now. hundred like a to we would take We're that's point to view. right So

David Johnson

for you Thank my taking Understood. questions.

Jeffery Leonard

Thank you.

Richard Wehrle

you. Thank

Operator

remarks. now closing Thank turn to over for you. floor management I will the

Jeffery Leonard

our for remarks forward second the to XXXX you our this again May Thank I quarter apologize. look speaking conference for at that with XXXX, call We – you concludes of call. Okay.

Operator

today's concludes teleconference. This

disconnect this you may And for You your lines at participation. time. your thank

Alamo (ALG) 24 Feb 232022 Q4 Earnings call transcript