Manitex International(US:MNTX)2022-05-07 13:37Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $60.4 million, an increase of 28% year-over-year and up from $53.4 million in Q4 2021, driven mainly by sales of larger tonnage cranes and aerial platforms [17][10] - Gross profit margin was 16.8%, representing a 200 basis point improvement sequentially but nearly 200 basis points lower than the previous year due to higher raw material costs and increased logistics expenses [17][11] - Adjusted EBITDA increased to $2.7 million or 4.5% of sales, compared to $1.9 million or 3.9% of sales in Q1 2021, with a sequential improvement of 390 basis points from Q4 2021 [18][11] - Net income for the quarter was $0.2 million, a significant improvement from a loss of $0.8 million in the same quarter last year [22] Business Line Data and Key Metrics Changes - The backlog reached a record $206 million as of March 31, 2022, which is 145% higher than at the end of March 2021, reflecting strong orders in straight mast cranes, knuckle cranes, and aerial platforms [20] - The straight mast crane backlog more than tripled year-over-year, while knuckle crane and aerial platforms backlogs more than doubled since Q1 2021 [20] Market Data and Key Metrics Changes - The company is experiencing strong demand across most product categories, with a book-to-bill ratio of 1.3:1 for the quarter, indicating continued strength in order flow [20] Company Strategy and Development Direction - The acquisition of Rabern Rentals is expected to improve operating margins and overall shareholder value, with the company focusing on operational efficiency and leveraging its product innovations [5][6] - The company aims to achieve double-digit EBITDA performance by improving production output and efficiencies, as well as enhancing supply chain management [12][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from global supply delays and rising cost pressures but expressed confidence in the effectiveness of their initiatives to counteract these challenges [26] - The integration of Rabern Rentals is expected to contribute positively to margins, with management anticipating a slight uptick in gross margin in Q2 2022 [38][39] Other Important Information - Net debt stood at $31.5 million as of March 31, 2022, with a leverage ratio of 3.5x trailing 12-month adjusted EBITDA, and the company has available liquidity of approximately $35 million to $40 million [23] Q&A Session Summary Question: What type of growth to expect from Rabern Rentals? - Management indicated that Rabern Rentals is seeing slightly over 20% year-over-year organic growth, with strong demand expected to continue throughout the year [33] Question: What was the price/volume contribution in Q1? - The majority of revenue increase was attributed to volume from sales of larger tonnage cranes, with pricing having a relatively small impact of about 2.5% [35] Question: Is there additional price action embedded in the backlog? - Yes, management confirmed that there are price increases expected to flow through in Q2, with some already seen in Q1 [36] Question: Key drivers for gross margin expansion throughout the year? - The addition of Rabern Rentals is expected to drive gross margin improvement, along with strategic pricing and cost initiatives [38]