Financial Performance - Revenues for Q2 2023 reached $1,090.6 million, a 21.8% increase from $895.4 million in Q2 2022[9] - Gross profit for the six months ended June 30, 2023, was $372.3 million, compared to $200.3 million for the same period in 2022, reflecting an 85.9% increase[9] - Net income attributable to stockholders for Q2 2023 was $38.3 million, a significant recovery from a net loss of $19.4 million in Q2 2022[9] - Basic earnings per share for Q2 2023 were $2.23, compared to a loss of $1.15 per share in Q2 2022[9] - Operating profit for the six months ended June 30, 2023, was $101.4 million, compared to an operating loss of $34.0 million for the same period in 2022[9] - Net income for the six months ended June 30, 2023, was $66.0 million, a significant improvement from a net loss of $42.9 million in the same period of 2022[13] - Comprehensive income for the six months ended June 30, 2023, was $86.8 million, compared to a loss of $125.7 million in the same period of 2022[11] Assets and Liabilities - Total assets increased to $2,109.9 million as of June 30, 2023, up from $2,026.2 million at the end of 2022[8] - Total liabilities remained relatively stable at $1,803.7 million as of June 30, 2023, compared to $1,801.1 million at the end of 2022[8] - Cash and cash equivalents increased to $65.7 million as of June 30, 2023, from $59.0 million at the end of 2022[8] Cash Flow and Investments - Cash provided by operating activities increased to $44.8 million compared to only $0.2 million in the prior year[13] - Cash dividends paid totaled $11.1 million, slightly higher than $10.9 million in the same period last year[13] - The company experienced a net cash used for investing activities of $(11.9) million, an improvement from $(22.9) million in the prior year[13] - Total debt additions amounted to $66.6 million, while debt reductions were $79.0 million, resulting in a net cash used for financing activities of $(28.9) million[13] Inventory and Production - The company's total inventory as of June 30, 2023, was $820.1 million, compared to $799.5 million as of December 31, 2022, reflecting an increase of 2.4%[57] - The finished goods and service parts inventory increased to $415.0 million as of June 30, 2023, from $335.8 million as of December 31, 2022, representing a growth of 23.6%[57] - Lift truck unit shipments increased by 9.5% to 27.7 thousand units in Q2 2023 compared to Q2 2022, with a notable 31.7% increase in the Americas[75] Segment Performance - The Americas segment generated revenues of $788.5 million in Q2 2023, compared to $596.6 million in Q2 2022, marking a growth of approximately 32.2%[34] - Operating profit for the Americas segment was $65.2 million in Q2 2023, significantly up from $3.1 million in Q2 2022[34] - The EMEA segment reported revenues of $200.6 million in Q2 2023, an increase from $184.8 million in Q2 2022, representing a growth of about 8.0%[34] - The JAPIC segment's revenues decreased to $49.6 million in Q2 2023 from $64.9 million in Q2 2022, reflecting a decline of 23.5%[34] Stockholder Equity - The total stockholders' equity at the end of June 30, 2023, was $292.3 million, reflecting a decrease from $351.5 million in the previous year[14] - The balance of redeemable Class A and Class B stock remained stable at $0.1 million as of June 30, 2023[20] Tax and Compliance - The reported income tax rate for the three months ended June 30, 2023, was 23.6%, up from 14.2% in the same period of 2022[36] - The Company recognized discrete tax benefits of $2.3 million in Q2 2023, compared to $4.5 million in Q2 2022, primarily due to the expiration of the statute of limitations for uncertain tax positions[38] Future Outlook - The Company expects significant increases in revenue and operating profit in the second half of 2023 compared to the prior year, driven by improved pricing and cost management[120] - The global lift truck market is projected to decline in 2023, with anticipated booking declines in all regions compared to 2022, but volumes are expected to remain strong compared to pre-pandemic levels[114]

Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q1 2023 Earnings Conference Call May 3, 2023 11:00 AM ET Company Participants Christina Kmetko – Investment Relations Rajiv K. Prasad – President Scott A. Minder – SVP, CFO, and Treasurer Alfred M. Rankin, Jr. – Chairman & CEO Conference Call Participants Stephen Ferazani - Sidoti & Company Chip Moore - EF Hutton Brett Kearney - Gabelli & Company Operator Ladies and gentlemen, welcome to the Hyster-Yale Materials Handling 2023 First Quarter's Earnings Call. My ...

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------------|-------| | | | Q2 23 | | | | | | | | | | | | | | | | | Q2 23 | | Q4 21 | | | | Q4 22 Q1 23 | | Higher pricing, increased sales volumes and a favorable sales mix Better-than-expected significant operating profit versus prior year loss Comparable operating loss in 2023 vs. 2022, but higher volume of demos should enhance foundation for improved returns Nuvera Investments to commercialize Nuvera fuel cell technology Lift Truck ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-54799 HYSTER-YALE MATERIALS HANDLING, INC. (Exact name of registrant as specified in its charter) Delaware 31-163 ...

Financial Performance & Outlook - Hyster-Yale achieved record quarterly revenues of $985.2 million in Q4 2022[11] - Hyster-Yale's Q4 2022 net income was $7.6 million, showing better-than-expected profitability[16] - The average sales price per unit in backlog increased by approximately 34% from Q4 2021[16] - Hyster-Yale anticipates a significant increase in revenues and substantial operating profit in 2023[93] - Hyster-Yale expects increased margins and higher operating profit in 2023 compared to 2022[93] Segment Performance (Q4 2022) - Lift Truck segment revenue reached $938.0 million with an operating profit of $27.2 million and adjusted EBITDA of $36.8 million[19] - Bolzoni's revenue was $92.0 million, with an operating profit of $2.0 million and adjusted EBITDA of $5.1 million[19] - Nuvera's revenue was $1.3 million, with an operating loss of $9.3 million and adjusted EBITDA of -$9.1 million[19] Market Dynamics & Strategy - Hyster-Yale's backlog decreased by approximately 10% from its peak in Q1 2022[11] - Hyster-Yale's sales in the Americas accounted for approximately 67.8% of total sales in 2022[18] - Hyster-Yale is focused on core strategies to transform its competitiveness, market position, and economic performance[16]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $985 million for the fourth quarter, a record high, representing a nearly 19% increase year-over-year [94] - The consolidated operating profit for the fourth quarter was approximately $20 million, a significant improvement from an operating loss of $107 million in the same quarter of the previous year [96] - Net income for the fourth quarter was $7.6 million compared to a net loss of $103 million in the prior year [97] Business Line Data and Key Metrics Changes - The lift truck business generated an operating profit of $27 million in the fourth quarter, compared to an operating loss of $93 million in the prior year [98] - Bolzoni reported an operating profit of $2 million in the fourth quarter, recovering from a loss of approximately $2 million in the previous year [101] - Nuvera's operating loss decreased to about $9 million in the fourth quarter, an improvement from a loss of $11 million in the prior year [102] Market Data and Key Metrics Changes - The global lift truck market is expected to decrease in each quarter of 2023 compared to 2022, although it should remain above pre-pandemic levels [82] - Lift truck bookings decreased in the fourth quarter compared to the previous year, attributed to a focus on solid margin orders and extended lead times [83] - The average sales price of a backlog unit increased by nearly 35% year-over-year and almost 7% sequentially [86] Company Strategy and Development Direction - The company aims to improve profitability by focusing on higher margin backlog units and increasing production rates throughout 2023 [108] - Strategic initiatives include the introduction of modular and scalable products and advancements in truck electrification and technology [120] - The company is working closely with suppliers to ensure a consistent flow of materials and minimize disruptions [111] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting continued gains from higher margin backlog units and substantial operating profit in 2023 [108] - The company anticipates a significant increase in cash flow before financing activities in 2023 compared to 2022 [113] - Management noted that the current order cancellation rate is low, reflecting ongoing demand for new replacement lift trucks [89] Other Important Information - The company generated positive cash flow before financing activities of $5 million in 2022, a significant improvement from a nearly $280 million use of cash in the previous year [105] - The company ended 2022 with cash on hand of $59 million and total debt of $553 million, showing a modest increase in net debt sequentially [106] - The company is focused on reducing inventory levels as production ramps up, which is expected to lead to a significant reduction in inventory days on hand by year-end [107] Q&A Session Summary Question: Can you speak to the cadence of operating profit improvement as you work through the lower margin backlog? - Management indicated that improvements are expected to build on the fourth quarter of 2022, with the majority of lower margin units produced in the first half of 2023 [119] Question: How is the company addressing the challenges in Europe? - Management acknowledged ongoing supply chain issues in Europe but expressed confidence in gradually increasing production volumes as these challenges are addressed [2][4] Question: What are the expectations for Bolzoni in relation to lift truck sales? - Management stated that Bolzoni's performance is closely tied to lift truck sales, and as shipments rise, Bolzoni is expected to benefit from increased demand [40]

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20BUSINESS) The company is a globally integrated manufacturer of lift trucks, attachments, and parts, segmented into Americas, EMEA, and JAPIC, also operating Bolzoni and Nuvera - The company is a globally integrated, full-line lift truck manufacturer with operations segmented into Americas, EMEA, and JAPIC, also operating Bolzoni (attachments) and Nuvera (hydrogen fuel cells)[11](index=11&type=chunk)[12](index=12&type=chunk) Revenue Components by Year | Component | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Lift trucks | 73 % | 73 % | 76 % | | Parts | 15 % | 15 % | 14 % | | Service, rental and other | 7 % | 6 % | 5 % | | Bolzoni | 5 % | 6 % | 5 % | | Nuvera | less than 1% | less than 1% | less than 1% | - Sales of internal combustion engine lift trucks and electric lift trucks accounted for approximately **43%** and **30%** of annual revenues in 2022, respectively[13](index=13&type=chunk) Backlog of Unfilled Lift Truck Orders | Date | Units (in thousands) | Approx. Sales Value (in millions) | | :--- | :--- | :--- | | December 31, 2022 | 102.1 | $3,730 | | September 30, 2022 | 108.2 | $3,700 | | December 31, 2021 | 105.3 | $2,880 | - The company faces intense competition based on distribution strength, brand loyalty, customer service, price, and product performance, competing with global manufacturers and alternative materials handling methods[30](index=30&type=chunk) - As of January 31, 2023, the company had approximately **8,200 employees**, with **6,700** in the Lift Truck division, **1,300** at Bolzoni, and **200** at Nuvera[37](index=37&type=chunk) [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20RISK%20FACTORS) The company faces operational risks from supplier dependence, raw material costs, global operations, cyclical demand, cybersecurity, and family control - The company depends on a limited number of suppliers for critical components like engines and counterweights, and has experienced shortages that negatively affected production levels[61](index=61&type=chunk) - Significant increases in raw material costs (steel, lead, copper, rubber) due to inflation and supply constraints could materially reduce profitability[63](index=63&type=chunk) - The lift truck business is historically cyclical, with demand tied to general economic activity, where economic downturns can lead to significant fluctuations in revenues and net income[70](index=70&type=chunk) - The company faces cybersecurity risks to its IT infrastructure, which could disrupt business operations or result in data breaches[82](index=82&type=chunk) - As of December 31, 2022, members of the company's extended founding family held approximately **87%** of Class B common stock, representing **73%** of the total voting power, which could allow them to control the outcome of director elections and other significant corporate actions[91](index=91&type=chunk) [Item 1B. Unresolved Staff Comments](index=15&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments - None[92](index=92&type=chunk) [Item 2. Properties](index=15&type=section&id=Item%202.%20PROPERTIES) The company operates numerous owned and leased facilities globally for assembly, manufacturing, distribution, and offices across its segments - The company operates principal assembly, manufacturing, distribution, and office facilities globally, which are both owned and leased across its Lift Truck, Bolzoni, and Nuvera segments[93](index=93&type=chunk) [Item 3. Legal Proceedings](index=15&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings in the ordinary course of business but is not a party to any material ones - The Company is not a party to any material legal proceeding[94](index=94&type=chunk) [Item 4. Mine Safety Disclosures](index=15&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) The company reports no mine safety disclosures - None[95](index=95&type=chunk) [Item 4A. Information About Our Executive Officers](index=16&type=section&id=Item%204A.%20INFORMATION%20ABOUT%20OUR%20EXECUTIVE%20OFFICERS) This section provides information on the company's executive officers, including Alfred M. Rankin, Jr. as Chairman and CEO, and Rajiv K. Prasad as President - The report lists the names, ages, and positions of the company's executive officers, including Alfred M. Rankin, Jr. as Chairman and CEO, and Rajiv K. Prasad as President[97](index=97&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=16&type=section&id=Item%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's Class A common stock trades on the NYSE, with no public market for Class B stock, and no issuer purchases of equity securities have been made - Class A Common Stock is traded on the New York Stock Exchange (Symbol: HY), with no public trading market for Class B Common Stock[99](index=99&type=chunk) - As of December 31, 2022, there were approximately **813** Class A and **735** Class B common stockholders of record[100](index=100&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In 2022, revenues increased to **$3.55 billion**, operating loss narrowed to **$(39.1) million**, and net loss improved to **$(74.1) million**, with a positive outlook for 2023 driven by backlog and moderating costs [Consolidated Financial Review](index=20&type=section&id=CONSOLIDATED%20FINANCIAL%20REVIEW) For 2022, consolidated revenues rose **15.4%** to **$3.55 billion**, operating loss decreased to **$(39.1) million** due to the absence of a goodwill impairment charge, and net loss improved to **$(74.1) million** Consolidated Results of Operations (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Revenues | $3,548.3 M | $3,075.7 M | | Gross Profit | $433.9 M | $363.4 M | | Operating Profit (Loss) | $(39.1) M | $(152.3) M | | Net Loss Attributable to Stockholders | $(74.1) M | $(173.0) M | | Diluted Loss per Share | $(4.38) | $(10.29) | - The reduction in operating loss in 2022 was mainly due to the absence of a **$55.6 million** non-cash goodwill impairment charge taken in JAPIC in 2021, increased gross profit in the lift truck business, and a lower operating loss at Nuvera[134](index=134&type=chunk) Lift Truck Unit Data | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Unit Shipments (thousands) | 100.8 | 94.9 | | Unit Bookings (thousands) | 97.6 | 159.6 | | Unit Backlog, end of period (thousands) | 102.1 | 105.3 | Operating Profit (Loss) by Segment (2022 vs. 2021) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Americas | $46.8 M | $(19.7) M | | EMEA | $(46.6) M | $0.3 M | | JAPIC | $(10.6) M | $(67.5) M | | Bolzoni | $6.2 M | $(1.8) M | | Nuvera | $(34.3) M | $(62.3) M | [Liquidity and Capital Resources](index=24&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity improved in 2022 with **$40.6 million** in operating cash flow, supported by a **$300 million** revolving credit facility and a **$225 million** term loan, while total debt reached **$552.9 million** - Net cash provided by operating activities was **$40.6 million** in 2022, a significant improvement from the **$253.5 million** used in 2021, primarily due to a smaller increase in inventory compared to the prior year[142](index=142&type=chunk) - The company has a **$300.0 million** secured revolving credit facility expiring in June 2026 and a **$225.0 million** term loan maturing in May 2028[145](index=145&type=chunk) Capital Structure Summary | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $59.0 M | $65.5 M | | Total debt | $552.9 M | $518.5 M | | Total temporary and permanent equity | $225.1 M | $382.9 M | | Debt to total capitalization | 71 % | 58 % | Capital Expenditures | Year | Amount (in millions) | | :--- | :--- | | Planned 2023 | $65.2 | | Actual 2022 | $28.8 | | Actual 2021 | $44.3 | [Perspective and Outlook](index=28&type=section&id=PERSPECTIVE%20AND%20OUTLOOK) Despite an expected decline in the global lift truck market for 2023, the company anticipates a significant increase in revenues and a return to substantial operating profit, driven by higher-margin backlog and strategic initiatives - The global lift truck market is expected to decline in 2023 compared to 2022, but remain above pre-pandemic levels in most regions[166](index=166&type=chunk) - For 2023, the company expects a significant increase in revenues and a substantial operating profit, driven by shipping higher-margin backlog and abating cost inflation[172](index=172&type=chunk)[178](index=178&type=chunk) - Strategic initiatives include launching new modular, scalable lift trucks and testing a hydrogen fuel cell-powered container handler at the Port of Los Angeles[174](index=174&type=chunk) - Nuvera will continue to focus on placing its 45kW and 60kW fuel cell engines in heavy-duty vehicle applications, with a 2023 loss expected to be comparable to 2022[177](index=177&type=chunk) - Capital expenditures are expected to be approximately **$65 million** for 2023, a significant increase from 2022 levels, to maintain facilities and invest for long-term growth[179](index=179&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages interest rate risk with swaps and foreign currency risk with forward contracts, which had a net liability fair value of **$43.5 million** at year-end 2022 - The company is exposed to interest rate risk due to floating-rate financing arrangements and uses interest rate swap agreements to mitigate this exposure[185](index=185&type=chunk) - The company is subject to foreign currency exchange rate risk from international operations and uses forward foreign currency exchange contracts to partially reduce these risks, with a net liability fair value of **$43.5 million** at December 31, 2022[187](index=187&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=31&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This item incorporates by reference the Financial Statements and Supplementary Data, which are detailed in Part IV of the Annual Report on Form 10-K - The required financial statements and supplementary data are set forth in Part IV of the report, beginning on page F-1[189](index=189&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=31&type=section&id=Item%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no disagreements with its accountants on accounting and financial disclosure for the three-year period ending December 31, 2022 - There were no disagreements with accountants on accounting and financial disclosure for the three-year period ended December 31, 2022[190](index=190&type=chunk) [Item 9A. Controls and Procedures](index=31&type=section&id=Item%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022, a conclusion audited and supported by Ernst & Young, LLP - Management concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[191](index=191&type=chunk) - Management concluded that the Company's internal control over financial reporting was effective as of December 31, 2022, a conclusion audited and supported by Ernst & Young, LLP[192](index=192&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=33&type=section&id=Item%2010.%20DIRECTORS,%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information on directors, executive officers, and corporate governance will be provided in the 2023 Proxy Statement and is incorporated by reference - Required information for this item will be included in the 2023 Proxy Statement and is incorporated by reference[198](index=198&type=chunk) [Item 11. Executive Compensation](index=33&type=section&id=Item%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation will be included in the company's 2023 Proxy Statement and is incorporated by reference - Required information for this item will be included in the 2023 Proxy Statement and is incorporated by reference[200](index=200&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=33&type=section&id=Item%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information on security ownership will be provided in the 2023 Proxy Statement, with **936,515** Class A shares remaining available for future issuance under equity compensation plans as of December 31, 2022 - Required information for this item will be included in the 2023 Proxy Statement and is incorporated by reference[201](index=201&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2022) | Plan Category | Securities to Be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | **Class A Shares:** | | | | | Equity compensation plans approved by security holders | — | N/A | 936,515 | | **Class B Shares:** | | | | | Equity compensation plans approved by security holders | — | N/A | — | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=33&type=section&id=Item%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding certain relationships, related transactions, and director independence will be included in the company's 2023 Proxy Statement and is incorporated by reference - Required information for this item will be included in the 2023 Proxy Statement and is incorporated by reference[203](index=203&type=chunk) [Item 14. Principal Accountant Fees and Services](index=33&type=section&id=Item%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information regarding principal accountant fees and services will be included in the company's 2023 Proxy Statement and is incorporated by reference - Required information for this item will be included in the 2023 Proxy Statement and is incorporated by reference[204](index=204&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=34&type=section&id=Item%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K report, including articles of incorporation, material contracts, and required certifications - This item provides an index of all exhibits filed with the Form 10-K, including articles of incorporation, material contracts, and required certifications[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 16. Form 10-K Summary](index=36&type=section&id=Item%2016.%20FORM%2010-K%20SUMMARY) The company reports no Form 10-K summary - None[215](index=215&type=chunk) Financial Statements and Supplementary Data [Report of Independent Registered Public Accounting Firm](index=40&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on Hyster-Yale's consolidated financial statements and internal control over financial reporting, identifying goodwill valuation for Bolzoni as a critical audit matter - Ernst & Young LLP provided an unqualified opinion, stating the financial statements are fairly presented in accordance with U.S. GAAP[227](index=227&type=chunk) - The auditors also expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[228](index=228&type=chunk)[236](index=236&type=chunk) - A critical audit matter was identified concerning the valuation of goodwill for the Bolzoni reporting unit, due to the complex and subjective judgments involved in estimating its fair value[231](index=231&type=chunk)[232](index=232&type=chunk) [Consolidated Financial Statements](index=43&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show 2022 revenues of **$3.55 billion**, a net loss of **$74.1 million**, total assets of **$2.03 billion**, and positive operating cash flow of **$40.6 million** Consolidated Statements of Operations Highlights (in millions) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Revenues | $3,548.3 | $3,075.7 | $2,812.1 | | Gross Profit | $433.9 | $363.4 | $465.4 | | Operating Profit (Loss) | $(39.1) | $(152.3) | $49.9 | | Net Loss Attributable to Stockholders | $(74.1) | $(173.0) | $37.1 | Consolidated Balance Sheets Highlights (in millions) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $1,458.7 | $1,350.0 | | Total Assets | $2,026.2 | $1,970.1 | | Total Current Liabilities | $1,342.9 | $1,104.6 | | Total Liabilities | $1,801.1 | $1,587.2 | | Total Permanent Equity | $210.9 | $382.9 | Consolidated Statements of Cash Flows Highlights (in millions) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $40.6 | $(253.5) | $166.9 | | Net cash used for investing activities | $(35.4) | $(24.5) | $(43.7) | | Net cash provided by (used for) financing activities | $(10.9) | $193.6 | $(40.6) | [Notes to Consolidated Financial Statements](index=49&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial data, including a **$55.6 million** goodwill impairment in JAPIC and a **$10.0 million** fixed asset impairment in Nuvera in 2021, and **$133.2 million** in recourse obligations as of December 31, 2022 - In June 2022, the company purchased an additional **15%** equity interest in Hyster-Yale Maximal, bringing its ownership to **90%**, with an option to purchase the remaining **10%** interest[259](index=259&type=chunk) - In 2021, the company recognized a **$55.6 million** goodwill impairment charge for the JAPIC reporting unit and a **$10.0 million** impairment charge for Nuvera's fixed assets[347](index=347&type=chunk)[343](index=343&type=chunk) - As of December 31, 2022, the company had total recourse or repurchase obligations of **$133.2 million**, primarily to support financing for its customers and dealers, with **$116.5 million** of this related to its joint venture, HYGFS[373](index=373&type=chunk)[374](index=374&type=chunk) - The company has a valuation allowance of **$121.7 million** against its deferred tax assets of **$139.2 million** as of December 31, 2022, indicating uncertainty about the realization of these assets[296](index=296&type=chunk)

Financial Data and Key Metrics Changes - The consolidated revenues for Q3 2022 were $840 million, an increase of 12% or over $90 million compared to the prior year, driven by a 13% revenue increase in the Lift Truck business [16] - The company reported a consolidated operating loss of $24.9 million for Q3 2022, an improvement from an operating loss of $54.3 million in Q3 2021 [17] - The net loss for Q3 2022 was $37 million, compared to a net loss of $77 million in the prior year [17] Business Line Data and Key Metrics Changes - The Lift Truck business generated an operating loss of $15.3 million in Q3 2022, an improvement from a loss of $21.3 million in the prior year, driven by price increases that offset material and freight inflation [18] - Bolzoni reported an operating loss of $1.3 million in Q3 2022, compared to breakeven results in 2021, primarily due to lower sales volumes and higher manufacturing costs [19] - Nuvera's operating loss decreased to $9 million in Q3 2022 from a loss of $32.5 million in the prior year, although the loss increased due to product development costs [20] Market Data and Key Metrics Changes - The worldwide lift truck market is expected to decline in Q4 2022 and for the full year 2023 compared to prior year periods, although it remains above pre-pandemic levels [11] - The average sales price of a backlog unit increased by nearly 40% year-over-year and over 8% sequentially, supporting future unit margin expansion [12] Company Strategy and Development Direction - The company is focused on introducing new modular and scalable products and electrification of trucks, with ongoing projects in hydrogen fuel cell technology [26][27] - The strategic initiatives aim to improve margins and profitability, with a focus on managing costs and maintaining liquidity during the transitional period [25][28] Management's Comments on Operating Environment and Future Outlook - Management expects a modest operating profit in Q4 2022 and a return to solid operating profit and net income for the full year 2023, driven by improved margins and cash flow [24] - The company is optimistic about the easing of component shortages and the resolution of supply chain bottlenecks, which should support increased production and shipment volumes in 2023 [9][10] Other Important Information - The company generated cash and reduced net debt by nearly $30 million in Q3 2022, with cash on hand of $69 million and total debt of $545 million [22][23] - The CFO succession plan was discussed, with Scott Minder taking over from Kenneth Schilling, who will retire at the end of 2022 [29][30] Q&A Session Summary Question: Can you expand on the backlog serving as a shock absorber in any downturn? - Management noted that the extended backlog, while initially a challenge, is now seen as a protective advantage, allowing the company to maintain production levels through 2023 and into 2024 despite potential market downturns [33][34] Question: What is the focus on electrification and Nuvera's role? - The company is seeing strong customer interest in zero-emission solutions and is actively developing electric trucks and fuel cell technology, with ongoing projects in both North America and Europe [47][48] Question: How is the backlog structured geographically? - Backlogs are higher in North America compared to Europe, but both regions have extended backlogs that should sustain operations through economic slowdowns [64][65]

Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q2 2022 Earnings Conference Call August 3, 2022 11:00 AM ET Company Participants Christina Kmetko - Investment Relations Alfred Rankin - Chairman & CEO Rajiv Prasad - President Kenneth Schilling - SVP, CFO & Treasurer Conference Call Participants Steve Ferazani - Sidoti & Company Chip Moore - EF Hutton Brett Kearney - GAMCO Investors Benjamin Thelen - Arosa Capital William Nicklin - Circle N Advisors Operator Hello, and welcome to the Hyster-Yale Q2 2022 Earnin ...

Q2 2022 INVESTOR PRESENTATION Transforming the way the world moves materials from Port to Home (rymaximal NUVERA Delivering tailored solutions through a portfolio of exceptional brands Safe Harbor Statement & Disclosure This presentation includes forward-looking comments subject to important risks and uncertainties. It may also contain financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Refer to Hyster-Yale's reports filed on F ...