Manitex International(US:MNTX)2022-03-09 01:05Financial Data and Key Metrics Changes - Fourth quarter sales increased by 18% year-over-year to $53.4 million, with full-year revenues rising to $211.5 million from $167.5 million in 2020 [5][6] - Adjusted EBITDA for the full year rose to $8 million from $5.7 million, while the backlog grew to a record $189 million, up 66% from the end of Q3 [6][14] - Gross profit declined to $4.7 million in Q4 2021 from $8.4 million in Q4 2020, with gross margin at 14.8% compared to 18.7% the previous year [12][13] Business Line Data and Key Metrics Changes - The PM Knuckle Boom business experienced a decline in Q4 due to logistics and supply constraints, but full-year revenue growth was double-digit compared to 2020 [8][9] - The straight mast business in North America saw a significant pickup in demand, returning to pre-pandemic levels, with a backlog that has more than tripled year-over-year [10][15] - The Oil and Steel Aerial business had a record year in 2021, with significant orders booked in North America and Europe [11] Market Data and Key Metrics Changes - Growth was noted in Western Europe, North America, and operations in Chile, with strong order intake expected to continue into 2022 [9] - The company is expanding its dealer network in Asia and the Middle East to diversify its market presence [9] Company Strategy and Development Direction - The company is focused on improving margins and operational performance by streamlining operations and increasing capacity utilization [6][18] - Price increases are being implemented to offset rising material costs, with expectations for margin expansion in 2022 [12][13] - The company is optimistic about achieving greater operating performance despite ongoing supply chain pressures [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain constraints but noted strong demand for products and successful price adjustments [4][5] - The outlook for 2022 remains positive, with a record backlog and expectations for double-digit growth [18][19] - Management is confident in the company's ability to navigate supply chain challenges and deliver on backlog orders [39] Other Important Information - The company closed its Badger facility in Winona, Minnesota, to streamline operations, which is expected to lead to cost savings [6][16] - Net debt improved to $23.8 million at year-end, with available liquidity of approximately $37.6 million [17] Q&A Session Summary Question: What end markets drove demand in the quarter? - Management noted strong demand in commercial construction, utilities, and mining, particularly in North America and Europe [22][23] Question: How does the company plan to fulfill potential demand in the energy market? - Management indicated that oil and gas currently represent 10% to 15% of the portfolio, with expectations for growth in this area [24][25] Question: How is the backlog characterized regarding double ordering? - Management stated that the backlog is primarily composed of firm orders, with minimal double ordering due to chassis constraints [32][33] Question: What is the competitive landscape like? - Management noted that competitors are facing similar supply chain challenges and are also increasing prices [35] Question: What is the current state of supply constraints? - Management indicated that while some areas have improved, challenges remain, particularly with chassis supply and sporadic issues with hydraulics [38][39]