Manitex International(US:MNTX)2024-02-29 20:12Financial Data and Key Metrics Changes - Net revenue for Q4 2023 was $78.7 million, flat compared to the previous year, with a decline of $1.6 million or approximately 2% from lower truck chassis sales [9][10] - Operating income increased to $4.8 million, up 14% from $4.2 million in the same period last year, with an operating margin of 6.1%, an increase of 80 basis points year-over-year [10] - Adjusted EBITDA for Q4 was $8 million, or 10.2% of sales, remaining flat compared to the same period last year [10][67] - Net income for Q4 was $5.2 million, or $0.26 per diluted share, compared to $0.5 million, or $0.02 per share, for the same period last year [74] Business Line Data and Key Metrics Changes - Lifting Equipment segment revenue was $70.8 million in Q4, a decrease of 1% year-over-year, but would have increased by about 2% excluding chassis sales [73] - Rental Equipment segment revenue was $7.9 million in Q4, supported by strong demand in key North Texas markets, with expectations for continued strength in 2024 [30] Market Data and Key Metrics Changes - The backlog as of December 31 was $170 million, down from $230 million a year ago, but still represents approximately nine months of sales, indicating healthy visibility into 2024 [61] - North America accounted for approximately 60% of the total backlog, with international markets making up the remaining 40% [61] Company Strategy and Development Direction - The company is focused on its "Elevating Excellence" strategy, which emphasizes growth, operational efficiency, and disciplined capital allocation [67][70] - The strategy includes prioritizing higher-margin products and geographies, leading to a decline in backlog but an improvement in quality [5][61] - The company aims for 25% revenue growth and nearly doubling EBITDA, with adjusted EBITDA margins expected to expand by 300 to 500 basis points [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2024, citing strong demand conditions and early order confirmations across core markets [69] - The company anticipates further improvements in manufacturing velocity and is focused on a CapEx-light model to support existing customer demand [29][92] - Management noted that supply chain pressures have eased, positioning the company well for future growth [7][25] Other Important Information - The company has made significant progress in reducing net leverage, achieving a ratio of 2.9x at the end of Q4, down from 3.9x at the end of 2022 [59][31] - The company is exploring opportunities for capital deployment beyond debt reduction, including organic investments and potential acquisitions [14][15] Q&A Session Summary Question: How should we think about Rabern revenue growth versus core Manitex's revenue growth? - Management indicated that Rabern's fleet expansion is partially replacement and partially growth, with a focus on traditional manufactured Lifting Products segment over the Rental segment [12][33] Question: How large of a drag were steel prices on gross margins in the quarter? - Management acknowledged a significant impact from steel prices, particularly in the U.S., and mentioned efforts to offset this with price increases and surcharges [13][35] Question: What opportunities exist for reinvesting back into the business? - Management stated that they are not yet prepared to discuss specific acquisition plans but are focused on solidifying the business foundation before pursuing growth through acquisitions [14][15] Question: What is the outlook for the tax rate in 2024? - Management indicated that a tax rate of around 28% is expected to hold for 2024 [84][107] Question: How does the company view its backlog and production capacity? - Management expressed a desire for a backlog closer to six months of production capacity for improved customer satisfaction and margin profiles [48][86]