Manitex International Inc (MNTX) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Manitex International Second Quarter 2024 Results Conference Call. (Operator Instructions)

早安，女士們、先生們，歡迎參加 Manitex International 2024 年第二季業績電話會議。（操作員說明）

This call is being recorded on Wednesday, August 7, 2024.

此電話錄音於 2024 年 8 月 7 日星期三進行。

I would now like to turn the conference over to Paul Bartolai, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係部的保羅‧巴托萊 (Paul Bartolai)。請繼續。

Thank you. Good morning, everyone. Welcome to Manitex International's Second Quarter 2024 Results Conference Call. Leading the call today are CEO, Michael Coffey, and CFO, Joseph Doolan.

謝謝。大家早安。歡迎參加 Manitex International 2024 年第二季業績電話會議。今天主持會議的是執行長 Michael Coffey 和財務長 Joseph Doolan。

We issued a press release earlier today detailing our second quarter 2024 operational financial results. This release, together with the accompanying presentation materials, are publicly available in the Investors section Investor Relations section of our corporate website at www.manitexinternational.com.

我們今天稍早發布了一份新聞稿，詳細介紹了 2024 年第二季的營運財務表現。本新聞稿以及隨附的簡報資料可在我們公司網站 www.manitexinternational.com 的投資者關係部分公開取得。

I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results could differ materially.

我想提醒您，管理層在今天的電話會議上的評論和對問題的回答可能包括前瞻性陳述，這些陳述本質上是不確定的，超出了公司的控制範圍。儘管這些前瞻性陳述是基於管理階層目前的預期和信念，但實際結果可能存在重大差異。

For a discussion of some of the factors that could cause results to differ. Please refer to the Risk Factors section of our latest filings with the SEC. Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the press release issued earlier today and in the appendix of this presentation.

討論可能導致結果不同的一些因素。請參閱我們向 SEC 提交的最新文件中的風險因素部分。此外，請注意，您可以在今天早些時候發布的新聞稿和本簡報的附錄中找到歷史非公認會計準則財務指標的調整表。

Today's call will begin with prepared remarks from CEO, Michael Coffey, will provide a review of our recent business performance, including an update on the progress we have made on our new elevating excellence initiative, followed by a financial update from our CFO, Joseph Doolan at the conclusion of these prepared remarks, we will open the line for your questions. With that, I'll turn the call over to Mike.

今天的電話會議將以首席執行官Michael Coffey 準備好的演講開始，他將回顧我們最近的業務業績，包括我們在新的提升卓越計劃方面所取得的最新進展，隨後我們的首席財務官Joseph Doolan 將介紹財務最新情況在準備好的發言結束後，我們將開通您的提問專線。這樣，我會將電話轉給麥克。

Thank you, Paul, and good morning to everyone joining us from the call today.

謝謝保羅，今天參加我們電話會議的每個人都早安。

During the second quarter, we continued to make important progress on our elevating excellence strategy. And as a result, we produced further margin expansion, generated strong adjusted EBITDA growth and further reduced our net leverage.

第二季度，我們在提升卓越策略方面持續取得重要進展。結果，我們的利潤率進一步擴大，調整後的 EBITDA 成長強勁，並進一步降低了我們的淨槓桿率。

Our second quarter performance was highlighted by growth in rental operations, gained momentum in our cost reduction initiatives and ongoing process improvements. This resulted in nearly 20% year-over-year growth in adjusted EBITDA. Our second quarter adjusted EBITDA grew 137 basis points to 10.6% of revenues. This was our fourth consecutive quarter with an adjusted EBITDA margin of greater than 10%, generating adjusted EBITDA of roughly $33 million on a trailing 12 month basis.

我們第二季的業績突顯在租賃業務的成長、成本削減計劃和持續流程改善的勢頭上。這導致調整後 EBITDA 年成長近 20%。第二季調整後 EBITDA 成長 137 個基點，佔營收的 10.6%。這是我們連續第四個季度調整後 EBITDA 利潤率超過 10%，過去 12 個月的調整後 EBITDA 約為 3,300 萬美元。

This level of performance, which has come despite some mixed end market trends is a direct result of our successful execution of our strategy, elevating excellence. The business is performing at higher levels, and we have confidence that we can build on a track record of consistent performance.

儘管終端市場趨勢參差不齊，但仍能取得如此高的績效水平，是我們成功執行策略、提升卓越水平的直接結果。該業務正處於更高的水平，我們有信心能夠建立穩定的業績記錄。

With that, please turn your attention to page 3 of our presentation, where we will begin with a discussion of our second quarter performance. Our second quarter lifting equipment revenue increased 2%, driven by growth from our North American operations. We made further progress in improving our manufacturing velocity, which also benefited the results.

接下來，請將您的注意力轉向我們簡報的第 3 頁，我們將在此開始討論我們的第二季業績。在北美業務成長的推動下，我們第二季的起重設備營收成長了 2%。我們在提高製造速度方面取得了進一步的進展，這也有利於結果。

Order intake has slowed in the year, likely due to increased interest rates. Higher interest rates are slowing machine replacement cycles. They are also lowering the overall stocking levels maintained by our dealers. We are not seeing fundamental weakness in construction outlooks. However, to the contrary, public work spending is increasing as our other key end market drivers affecting Manitex.

今年的訂單量有所放緩，可能是由於利率上升。較高的利率正在減緩機器更換週期。他們還降低了我們經銷商維持的整體庫存水準。我們沒有看到建築業前景出現根本性疲軟。然而，相反，隨著影響 Manitex 的其他關鍵終端市場驅動因素，公共工程支出正在增加。

Some customers have made requests to push out delivery schedules for the aforementioned reasons. We are accommodating these customers where possible rescheduling requests, while high interest rates are forcing dealers to delay replacing stock due to carrying costs. We remain confident in the long-term drivers in our key markets. So we believe this is likely a short term issue. However, until we get some more clarity on macroeconomic outlooks, the timing of rate cuts and the US election. We think customers will remain cautious in the near term. This is reflected in our orders during the quarter and our ending backlog levels. That said, , we remain focused on our growth initiatives and are aggressively moving forward with our strategy to increase our market share, expand our dealer network and drive product innovation.

基於上述原因，一些客戶要求延後交貨時間表。我們正在盡可能滿足這些客戶的重新安排請求，而高利率迫使經銷商因持有成本而推遲更換庫存。我們對主要市場的長期驅動因素仍然充滿信心。因此我們認為這可能是個短期問題。然而，在我們對宏觀經濟前景、降息時機和美國大選有更清晰的了解之前。我們認為客戶短期內將保持謹慎。這反映在我們本季的訂單和期末積壓水準中。也就是說，我們仍然專注於我們的成長計劃，並積極推進我們的策略，以增加我們的市場份額，擴大我們的經銷商網路並推動產品創新。

We continue to make good progress on our dealer expansion strategy, which is an important aspect in our goal to increase the distribution of our PM Group products in North America. We are working with identified potential partners and remain on schedule. This is a significant interest. There's a significant interest in demand from our dealer community and our portfolio of articulated lifting solutions in North America, and we look forward to updating you on our progress later this year.

我們的經銷商擴張策略持續取得良好進展，這是我們增加 PM 集團產品在北美分銷的目標的重要方面。我們正在與已確定的潛在合作夥伴合作並按計劃進行。這是一個重大的興趣。我們的北美經銷商社群和我們的鉸接式起重解決方案組合對需求非常感興趣，我們期待在今年稍後向您通報我們的最新進展。

We had a strong quarter in our rental segment with revenues increasing 15% in the second quarter. The increase is owing to both geographic and fleet expansions. Demand trends in our North Texas markets remain robust, and we are benefiting from our increased investment in our rental fleet. Our location in Lubbock also continues to perform well and we are very pleased with the progress at this newest location.

我們的租賃業務季度表現強勁，第二季營收成長了 15%。這一增長歸因於地域和機隊的擴張。北德州市場的需求趨勢仍然強勁，我們受益於對租賃車隊的投資增加。我們在拉伯克的工廠也持續表現良好，我們對這個最新工廠的進展感到非常滿意。

Second quarter gross margins were up 220 basis points from the same period last year, driven by increased manufacturing throughput, lower material costs and increased contributions from our rental segment. We continue to be encouraged by our progress on our supply and sourcing initiatives. Supply chain pressures have been a constant headwind for both Manitex and the industry. We are pleased to finally be seeing some benefits from the lower material cost flow through our results.

在製造產量增加、材料成本下降以及租賃部門貢獻增加的推動下，第二季毛利率比去年同期增加了 220 個基點。我們在供應和採購計劃方面取得的進展繼續令我們感到鼓舞。供應鏈壓力一直是 Manitex 和整個產業面臨的持續阻力。我們很高興最終在我們的結果中看到較低的材料成本帶來的一些好處。

As we discussed, last year we reorganized our global supply chain structure and the new initiatives and our team's hard work and producing positive results. And keeping with this, we added new suppliers designed to improve collaboration and lower our costs. We look forward to furthering these efficiencies and improving our supply chain going forward.

正如我們所討論的，去年我們重組了我們的全球供應鏈結構和新舉措以及我們團隊的辛勤工作並取得了積極成果。為此，我們添加了新的供應商，旨在改善協作並降低成本。我們期待進一步提高效率並改善我們的供應鏈。

These operational improvements enabled us to generate second quarter adjusted EBITDA of $8.1 million, an increase of nearly 20% from the same period last year. We are very proud of this progress and our trailing 12-month EBITDA is up roughly 25% from the prior 12 year period.

這些營運改善使我們第二季調整後 EBITDA 達到 810 萬美元，比去年同期成長近 20%。我們對這項進展感到非常自豪，我們過去 12 個月的 EBITDA 比前 12 年同期成長了約 25%。

Another important component of our strategy of operating excellence has been a focus on disciplined financial management and capital allocation. We reduced our net debt by over $2 million during the quarter, further driving down our net leverage ratio 2.5 times at the end of the quarter. Our progress on our capital discipline in recent quarters has been somewhat masked by industry-wide supply chain challenges. So we are happy to see the reduction of net debt in the quarter, and we expect to further reduce our working capital levels, positioning us for a strong year of cash flow conversion and allowing us to drive further reduction in net debt as the year progresses.

我們卓越營運策略的另一個重要組成部分是注重嚴格的財務管理和資本配置。本季我們的淨債務減少了超過 200 萬美元，季末淨槓桿率進一步降低了 2.5 倍。最近幾季我們在資本紀律方面取得的進展在一定程度上被全行業供應鏈的挑戰所掩蓋。因此，我們很高興看到本季淨債務減少，我們預計將進一步降低營運資本水平，為現金流轉換強勁的一年做好準備，並使我們能夠隨著時間的推移進一步減少淨債務。

Elevating excellence, our three year strategy has delivered improved results and the business is performing at record levels. Despite interest rate headwinds, our core end markets are strong and customer relationships are improving. While the current macroeconomic trends remain uncertain, we are committed to executing on what is within our control. These controllables include improving our processes, cost of production improvements and new dealer partnership channels in North America.

為了提升卓越性，我們的三年策略取得了更好的成果，業務表現達到了創紀錄的水平。儘管存在利率不利因素，我們的核心終端市場仍然強勁，客戶關係正在改善。儘管當前宏觀經濟趨勢仍不確定，但我們致力於在我們控制範圍內執行任務。這些可控因素包括改善我們的流程、改善生產成本以及北美新的經銷商合作夥伴通路。

It is this disciplined focused on our strategic priorities that has enabled us to deliver strong adjusted EBITDA growth and margin expansion during 2024, despite the slowing in order trends we are experiencing in recent quarters as a result of order trends, we are lowering our full year 2024 revenue guidance to a range of $290 million to $300 million. However, we continue to expect our to 2024 adjusted EBITDA to be in a range of $30million to $34 million, demonstrating our strong execution against operational priorities.

正是這種對策略優先事項的嚴格關注，使我們能夠在2024 年實現強勁的調整後EBITDA 成長和利潤率擴張，儘管由於訂單趨勢，我們最近幾季的訂單趨勢有所放緩，但我們正在降低全年業績2024 年收入指引範圍為 2.9 億至 3 億美元。然而，我們仍然預計到 2024 年調整後的 EBITDA 將在 3,000 萬美元至 3,400 萬美元之間，這表明我們對營運優先事項的強大執行力。

And with that, I'd like to turn the call over to Joe.

說到這裡，我想把電話轉給喬。

Thank you, Mike, and good morning, everyone. I will provide some additional details on the quarter and give an update on our liquidity and balance sheet.

謝謝你，麥克，大家早安。我將提供有關本季度的一些其他詳細信息，並提供有關我們的流動性和資產負債表的最新信息。

Turning to Slide 9. Net revenue for the second quarter was $76.2 million or an increase of 3.7% compared to the same period last year. The growth during the quarter was driven by further improvements in manufacturing velocity in our equipment business and strong growth in our rental operations.

轉向幻燈片 9。第二季淨收入為7,620萬美元，較去年同期成長3.7%。本季的成長得益於我們設備業務製造速度的進一步提高以及租賃業務的強勁成長。

Lifting Equipment segment revenue was $67.9 million during the second quarter, an increase of 2.4% versus the prior year period with growth driven by the North American truck crane sales. Rental equipment segment revenue was $8.4 million in the second quarter, an increase of 15% from the prior year period. The growth was driven by continued favorable demand trends in our North Texas markets and our investment in fleet growth.

第二季起重設備部門營收為 6,790 萬美元，較上年同期成長 2.4%，成長主要得益於北美汽車起重機銷售的推動。第二季租賃設備部門營收為 840 萬美元，比去年同期成長 15%。這一增長是由北德克薩斯市場持續有利的需求趨勢以及我們對機隊成長的投資所推動的。

As we discussed last quarter, based on favorable market trends in our key markets, we have made the decision to pull forward much of our expected capital spending on fleet expansion into the early part of 2024, and this was an important contributor to our growth during the quarter. As of June 30th, total backlog was $116 million, down from $154 million at the end of Q1. Our backlog ended the quarter with North America representing approximately 50% of the total with international remaining 50%.

正如我們上季度所討論的，基於我們主要市場的有利市場趨勢，我們決定將機隊擴張的大部分預期資本支出推遲到 2024 年初，這是我們在 2024 年成長的重要貢獻者。截至 6 月 30 日，積壓訂單總額為 1.16 億美元，低於第一季末的 1.54 億美元。本季結束時，我們的積壓訂單中，北美約佔總數的 50%，國際市場剩餘 50%。

Gross profit was $17.2 million during the second quarter of 24, up from $14.9 million during the prior year period for an increase of 15%. The increase in gross profit was driven by increased manufacturing throughput, lower material costs driven by supply chain initiatives and increased contribution from the rental segment. As a result of these factors, gross profit margin increased 220 basis points, 22.5% in the quarter.

24 日第二季毛利為 1,720 萬美元，較去年同期的 1,490 萬美元成長 15%。毛利的成長是由於製造產量的增加、供應鏈計劃推動的材料成本的降低以及租賃部門的貢獻增加所推動的。由於這些因素，本季毛利率增加了 220 個基點，即 22.5%。

SG&A expense for the quarter was $11.1 million, up modestly from $10.8 million in the same period last year. R & D expense was $0.9 million during the quarter, also off very modestly from the prior year period. We've been able to hold our operating expense levels basically flat in recent quarters despite the revenue growth and investments that we are making in the business. And we expect this trend to continue moving forward driving continued margin benefits.

本季的 SG&A 費用為 1,110 萬美元，略高於去年同期的 1,080 萬美元。本季的研發費用為 90 萬美元，與去年同期相比也略有下降。儘管我們在業務中進行了收入成長和投資，但最近幾季我們的營運費用水準基本上保持不變。我們預計這一趨勢將繼續向前發展，推動持續的利潤率效益。

Operating income was $5.1 million during the quarter, up from $3.3 million for the same period last year. Second quarter operating margin was 6.7%, up over 200 basis points from last year. The year-over-year improvement in operating income and operating margin was driven by the improved gross margin performance and operating leverage.

本季營業收入為 510 萬美元，高於去年同期的 330 萬美元。第二季營業利益率為 6.7%，比去年同期成長 200 個基點。營業收入和營業利益率的年比改善得益於毛利率表現和營業槓桿的改善。

Adjusted EBITDA was $8.1 million for the second quarter or 10.6% of sales, up from $6.8 million or 9.3% of sales for the same period last year for an increase of 19%. Net income was $1.5 million, or $0.07 per diluted share for the second quarter compared to net income of $400,000 or $0.02 per share for the same period last year. Adjusted net income was $2.2 million or $0.11 per diluted share in the second quarter, up from adjusted net income of $1.7 million, or $0.08 per share for the same period last year. Adjusted net income for the second quarter excludes $700,000 of stock compensation and other nonrecurring expenses.

第二季調整後 EBITDA 為 810 萬美元，佔銷售額的 10.6%，高於去年同期的 680 萬美元，佔銷售額的 9.3%，增幅為 19%。第二季淨利為 150 萬美元，即稀釋後每股收益 0.07 美元，而去年同期淨利為 40 萬美元，即每股收益 0.02 美元。第二季調整後淨利為 220 萬美元，即每股攤薄收益 0.11 美元，高於去年同期的調整後淨利 170 萬美元，即每股 0.08 美元。第二季調整後淨利不包括 70 萬美元的股票補償和其他非經常性費用。

Now turning to our balance sheet on Slide 10. As of June 30th, net debt was $83.9 million, which was down over 2 million from the end of the first quarter despite the pull forward of some capital spending as a result of our cash flow benefited from solid operating results.

現在轉向投影片 10 上的資產負債表。截至 6 月 30 日，淨債務為 8,390 萬美元，較第一季末減少超過 200 萬美元，儘管由於我們的現金流受益於穩健的經營業績而提前了一些資本支出。

As a result, net leverage improved to 2.5 times at the end of the second quarter compared to 2.9 times at the end of the fourth quarter of 23. We continue to expect our working capital usage to further normalize in the coming quarters, which could result in a reduction in inventory levels, leading to improved free cash flow conversion and even further reduced leverage levels by the end of the year. As of June 30th, total cash and available liquidity, it was approximately $ 33 million.

結果，淨槓桿率在第二季末提高至2.5倍，而23日第四季末為2.9倍。我們仍然預計未來幾季我們的營運資金使用將進一步正常化，這可能會導致庫存水準下降，從而改善自由現金流轉換，甚至在年底前進一步降低槓桿水準。截至6月30日，現金和可用流動資金總額約為3,300萬美元。

That completes our prepared remarks. Operator, we are now ready for the question and answer portion of our call.

我們準備好的發言就到此結束了。接線員，我們現在已準備好進行通話的問答部分。

Thank you (Operator Instructions)

謝謝（操作員說明）

Ted Jackson, Northland Securities.

特德傑克遜，北國證券。

Morning, Brent.

早上好，布倫特。

Ted?

泰德？

Sorry about that. I was on mute, but it unmuted. So again, good morning and congrats on the quarter to the to you next. I think you can hear me now?

對此感到抱歉。我本來是靜音的，但是沒靜音。再次，早安，恭喜您下個季度的業績。我想你現在能聽到我說話嗎？

Okay, morning.

好的，早安。

Yes, we can hear you.

是的，我們能聽到你的聲音。

Fine. I got a handful of questions for you. Let's start with the Lift Truck business. I mean, and you know, talking about weakness in bookings, you're going through the backlog. And when you look into that business and the challenges that you're seeing, can you give some color with regards to it from a geographic standpoint? I mean, is that US is there some European component? And then also from like a market vertical, if you would, you know, like some of I'd call it, your peers have talked about some hesitancy within the utility section in the US for example? That would be my first question.

美好的。我有幾個問題想問你。讓我們從堆高機業務開始。我的意思是，你知道，談到預訂方面的疲軟，你正在經歷積壓的情況。當您研究該業務以及您所看到的挑戰時，您能否從地理角度對其進行一些描述？我的意思是，美國有一些歐洲成分嗎？然後，從垂直市場的角度來看，您的同行是否也談到美國公用事業部門的一些猶豫？這是我的第一個問題。

Sure, Ted. Good morning, and I appreciate the questions. You know, there's some areas of geographic concern or maybe lack of geographic concern. For example, mining the areas that are exposed to mining and minerals are completely unaffected. They're just moving forward with a lot of strength and. We had some early-on hesitancy in some European markets as customers were waiting for some tax guidance. Capital investment tax guidance, on that came out in our favor. And so we these are anecdotal requests for the most part are anecdotal points of information on. I'd say most of the concern this year is in North America and it's an election year. I think that is often a catch-all.

當然，泰德。早上好，我很高興提出這些問題。你知道，有些地區有地理問題，或者可能缺乏地理問題。例如，在暴露於採礦和礦物的區域進行採礦完全不受影響。他們只是以巨大的力量向前邁進。我們早期在一些歐洲市場有些猶豫，因為客戶正在等待一些稅務指導。資本投資稅收指引在這一點上對我們有利。所以我們這些都是軼事請求，大部分都是軼事資訊。我想說，今年最令人擔憂的是北美，而且今年是選舉年。我認為這通常是包羅萬象的。

But unequivocally, the overwhelming theme that we're hearing from our customers is concerned with regard to interest rates and it's some it's stalled or slowed normalized equipment replacement in our used machines. Let's see if a crane operator, this is theoretical. But if you have a crane operator is 10 to 12 assets in their fleet and seven or eight of them are ready to replace. They're just they're holding on to those longer to see what happens with interest rates and our dealers are being more careful in replacing fleet during this process, primarily because of carrying costs.

但毫無疑問，我們從客戶那裡聽到的壓倒性的主題是與利率有關，這在一定程度上導致了我們二手機器的正常化設備更換停滯或減慢。讓我們看看起重機操作員是否知道，這是理論上的。但如果您的起重機操作員的車隊中有 10 到 12 項資產，其中七到八項已準備好更換。他們只是持有更長的時間，看看利率會發生什麼變化，而我們的經銷商在過程中更換車隊時更加小心，主要是因為持有成本。

And that's that that seems to trends translate in just about any market where we have dealer inventory is farmers on end markets in particular, I'm aware of some of those comments in the utility range. I think most of that centers around some excessive bucket trucks, inventory which we really are not participating in. And we're not seeing any signals of hesitancy with utility construction for our products and or the pending demand due to public works projects. To the contrary, I think there's a lot of construction work to be done on, but just on a hesitancy with regard to carrying costs and interest and some things that are, I suppose, out of everyone's control.

這就是趨勢似乎轉化為幾乎所有我們有經銷商庫存的市場，尤其是終端市場上的農民，我知道公用事業範圍中的一些評論。我認為其中大部分都集中在一些過多的鬥車和庫存上，而我們確實沒有參與其中。我們沒有看到任何對我們產品的公用設施建設和/或公共工程項目的懸而未決的需求猶豫不決的信號。相反，我認為還有很多建設工作要做，但只是在成本和利息方面猶豫不決，而且我認為有些事情超出了每個人的控制範圍。

Okay. Question number two, going over to the rental side of the house, I'm listening to, I mean, for instance, Caterpillar and also some of the other larger rental shops. You know, there's a general commentary with regards to, let's call it a softening with regards to rates in utilization. And it sounds like you're not seeing that? Or is that any concern to you? And is it just because you happened to be in North Texas and that's the reason.

好的。第二個問題，關於房子的租賃方面，我正在聽，我的意思是，例如，卡特彼勒和其他一些較大的租賃商店。你知道，有一個關於利用率的一般評論，我們稱之為利用率的軟化。聽起來你好像沒有看到這一點？或者您對此有任何擔憂嗎？難道只是因為你碰巧在北德克薩斯州，這就是原因嗎？

I mean, just maybe more color around why you're seeing strength where other people are actually starting to talk a little bit more about kind of weakness within that area?

我的意思是，也許只是更多地解釋為什麼你看到了優勢，而其他人實際上開始更多地談論該領域的弱點？

Well, yes, yes. So we are -- no one is completely insulated to any of this. We have not experienced any downturn to the contrary on the markets that we're in in North Texas are strong. They're smaller but we are playing in a position of strength in markets that are growing and have a lot of activity. And so that favors us.

嗯，是的，是的。所以我們——沒有人能完全免受這些影響。我們沒有經歷任何衰退，相反，我們在北德克薩斯州的市場很強勁。它們規模較小，但我們在不斷成長且活躍的市場中處於優勢地位。這對我們有利。

And you know frankly, we bought a really capable and exceptional company in that space. Raeburn rentals has been fantastic. So on we're keeping our finger to the pulse of what's happening with our customers. We've had a couple of customers run into a few problems, and we've been able to avoid some of the associated downfalls with regard to that. But overall, these little markets are performing really, really well, and we couldn't be happier for the expansion that we had and made public. I mean, it's were just over a year in that new location. The team is performing well, the market is performing well. Joe mentioned before that we pulled forward some capital investments to get ahead of that curve, and that fleet is very well utilized and that's showing in the numbers. So there's always going to be problems in any economic downturns that these areas are just less impacted. They're more insulated from those types of downturns.

坦白說，我們購買了該領域一家真正有能力且傑出的公司。Raeburn 的租金非常好。因此，我們將密切關注客戶的動態。我們有一些客戶遇到了一些問題，我們已經能夠避免一些與此相關的問題。但總體而言，這些小市場的表現非常非常好，我們對我們擁有並公開的擴張感到非常高興。我的意思是，在那個新地點才一年多。團隊表現好，市場表現好。喬之前提到，我們提前進行了一些資本投資，以領先於這一曲線，並且機隊得到了很好的利用，這在數字中得到了體現。因此，在任何經濟衰退中總是會出現問題，只是這些地區受到的影響較小。他們更能免於此類經濟衰退的影響。

And third question. I have one more after this is a moving over to the US market and the effort to bring your knuckle products from Italy here. It sounds like you're still on track to have an announcement with regards to some distribution partners there in the past, you've signaled that it would be a couple, maybe as many as three. So my first question towards this is does that still kind of stand that we could see a couple of distribution partners in that area?

第三個問題。在轉移到美國市場並努力將您的指關節產品從義大利帶到這裡之後，我還有一個。聽起來您仍然有望就過去的一些分銷合作夥伴發佈公告，您已經表示這將是幾個，也許多達三個。因此，我對此的第一個問題是，我們是否仍然可以在該地區看到幾個分銷合作夥伴？

And then secondly, as a follow-up into that, given that these trucks are really coming out of Italy and being imported, at least for the time being, how are you going to handle the ability to support those distributors in terms of parts and service, mainly within parts, meaning that you're going to need to bring some inventory level and spare parts from Italy into the US and put that on your balance sheet to ensure you're providing the support level that you're dealers will need? I mean, kind of all the color around that and then have one more afterwards.

其次，作為後續行動，考慮到這些卡車確實是從義大利出來並進口的，至少目前如此，您將如何處理在零件和技術方面支援這些經銷商的能力服務，主要是零件，這意味著您需要將一些庫存水準和備件從義大利帶入美國，並將其計入您的資產負債表，以確保您提供經銷商所需的支援等級？我的意思是，周圍的所有顏色，然後再有一種。

Yes. I really like the questions. So we're speaking in a bit of cryptic terms and not naming names because we're in active discussions with new dealers and it's a competitive market. So we don't want a single what we're doing to our competitors. We are in active discussions with five North American dealers and some of them have placed preliminary orders are getting familiar with the products.

是的。我真的很喜歡這些問題。因此，我們用一些神秘的術語來談論，而不是指名道姓，因為我們正在與新經銷商積極討論，而且這是一個競爭激烈的市場。因此，我們不想讓我們的競爭對手受到任何影響。我們正在與五家北美經銷商積極洽談，其中一些經銷商已經下了初步訂單，正在熟悉產品。

We're pretty excited about the individuals that we're talking with. We're very excited about the markets that they're serving and the way that we've gone about this for years and the way that we're going about it now is, we're engaging with them, they're ordering a handful of products, they're testing the markets, we're doing price and customer feedback testing. And Crescendo with an announcement that will be a partnership announcement between these dealers and us. So our expectation today is that we're expecting to have two or three appointments on this year, and that's why we're talking to five. We're actually talking to many more than that. But there are five that are on our high target list, if I can use that phrase.

我們對正在與我們交談的人感到非常興奮。我們對他們所服務的市場以及我們多年來的做法感到非常興奮，我們現在的做法是，我們正在與他們接觸，他們正在訂購他們正在測試少數產品的市場，我們正在進行價格和客戶反饋測試。Crescendo 發布了一項聲明，該聲明將是這些經銷商與我們之間的合作夥伴關係聲明。因此，我們今天的預期是，今年我們預計會有兩到三個約會，這就是我們與五個約會的原因。實際上我們正在談論的遠不止這些。但如果我可以用這個字的話，有五個在我們的高目標名單上。

Regarding the support of the product -- the question is really insightful our whole strategy in North America was to build an organization structure that essentially could act like a manufacture support arm in North America. And that's been built. We put that structure in Georgetown. We have a team of product support, product managers, on engineering even though that we're not manufacturing the crane in the US, we're supporting the crane from the US ad that's by design.

關於產品的支援——這個問題確實很有洞察力，我們在北美的整個策略是建立一個組織結構，本質上可以充當北美的製造支援部門。那已經建成了。我們把那個結構放在喬治城。我們擁有一支由產品支援、產品經理和工程人員組成的團隊，儘管我們不在美國製造起重機，但我們支援美國廣告中設計的起重機。

And with that has come high moving parts stock that needed to be put in place in North America. And that's also done. We actually brought on critical parts to the US to support the products that we're marketing in the United States. And we just we want to make certain that these products are really well supported, the customers getting strong technical. And if there is a part failure or damage that we can get them back online and running quickly.

隨之而來的是需要在北美部署的大量移動零件庫存。這也完成了。實際上，我們將關鍵部件帶到了美國，以支持我們在美國行銷的產品。我們只是想確保這些產品確實得到很好的支持，客戶獲得強大的技術。如果出現部件故障或損壞，我們可以讓它們恢復在線狀態並快速運行。

Some of that to actually really encouraging news.

其中一些確實是令人鼓舞的消息。

The good --

好的--

No no keep going ---

不不繼續---

I just wanted to say yes, the balance sheet, you're not going to see a change in the balance sheet because the parts fast moving parts are small there, sensors and valves and seal kits and things that can down a machine and really spoil Workday for a customer. So we've put those things in stock and we're working closely with our dealers to make certain that they've got the right products, the right parts support in play and to support their markets. So it's part of elevating excellence. It's a change from what we've done in the past. And we feel like it's going to serve the market well and will give us a longer standing and with market share.

我只是想說，是的，資產負債表，你不會看到資產負債表發生變化，因為快速移動的部件很小，感測器、閥門和密封套件以及可能導致機器癱瘓並真正損壞的東西客戶的工作日。因此，我們已經將這些東西存入庫存，並與經銷商密切合作，以確保他們擁有正確的產品、正確的零件來支援並支援他們的市場。所以這是提升卓越的一部分。這與我們過去所做的有所不同。我們覺得它將很好地服務於市場，並將讓我們擁有更長久的地位和市場份額。

Okay. And then my last question is probably more for jokes that I want to leave him out of all the fun things that I didn't notice, which was I didn't notice this with the first quarter, but I did notice that with this is in your reconciliation tables on the last page of your press release, when you reconcile to your adjusted EBITDA, the interest expense line item on those cables differs from what's in the income statement and it did that in this quarter and it actually did it in the first quarter.

好的。然後我的最後一個問題可能更多是為了開玩笑，我想讓他遠離我沒有註意到的所有有趣的事情，這是我在第一季度沒有註意到這一點，但我確實注意到了這一點在新聞在稿最後一頁的調整表中，當您調整調整後的EBITDA 時，這些電纜上的利息費用項目與損益表中的項目不同，它在本季度做到了這一點，實際上在本季度做到了這一點第一季。

And honestly, I didn't notice it in the first quarter. So it's just a little nit pick up as to because in the historical data for last fiscal year, there was the same. So what's changed that makes that happen? Why are there was a disconnect between the income statement and the reconciliation tables? --

老實說，我在第一季並沒有註意到這一點。所以這只是一個小問題，因為在上一財年的歷史數據中，也有同樣的情況。那麼是什麼改變導致了這種情況發生呢？為什麼損益表和調節表之間會有脫節？--

Interest income is the difference. So in the past, we had noted the interest income against the interest expense prior year, this year we have it split out separately, but for purposes of the reconciliation table we have now.

利息收入就是差額。因此，在過去，我們記錄了利息收入與上一年的利息支出，今年我們將其單獨分開，但出於我們現在的調節表的目的。

Okay.

好的。

So I just yes, I look at like why doesn't this foot? And then I went historically, and I realize that something may change, and I've missed it. So that is it for me. Thank you very much for the time. I'll talk to you guys later.

所以我只是說，我看看為什麼這隻腳沒有？然後我回顧了歷史，我意識到有些事情可能會改變，但我錯過了它。這對我來說就是這樣。非常感謝您抽出時間。稍後我會和大家聊聊。

Thank you, Dan.

謝謝你，丹。

Thank you. There are no further questions at this time. I am now handing the conference over to Michael Coffey.

謝謝。目前沒有其他問題。我現在將會議交給邁克爾·科菲。

Thank you, operator, and Just want to take a moment to thank our investors for their work with us their faith in what we're doing and their interest in our business means a lot to us. And I'd also be remiss if I didn't recognize the employees and professionals at Manitex that are working so hard this year and last to deliver on these results. We have a fantastic team and we're very excited about where we're going. If we don't connect with you in this quarter. We want to wish everyone well, and we look forward to connecting with you soon. And let me thank everyone for your interest in Manitex and your time on the call.

謝謝您，運營商，只是想花點時間感謝我們的投資者與我們合作，他們對我們正在做的事情的信心以及他們對我們業務的興趣對我們來說意義重大。如果我沒有認可 Manitex 的員工和專業人員，他們今年和最後一年都在努力工作以取得這些成果，那就是我的失職。我們擁有一支出色的團隊，我們對我們的目標感到非常興奮。如果我們在本季沒有與您聯繫。我們祝福大家一切順利，並期待盡快與您聯繫。讓我感謝大家對 Manitex 的興趣並抽出時間參加電話會議。

This concludes our call today.

我們今天的電話會議到此結束。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。