Manitex International, Inc. (NASDAQ:MNTX) Q4 2022 Earnings Call Transcript

Michael Coffey: Yes. Let me take a stab at that, and I am going to ask Joe to also add some color on that as well. So, the revenue growth for the next 3 years will be much heavier in €˜24 and €˜25. However, the content of our revenue in 2023 will be more purely defined by internal manufacturing product. So every year, we always have a component of Class 8 trucks that we attach our cranes to and this year, more of our backlog is aligned with customer supply Class 8 trucks, meaning that we are going to have more of our internally produced product revenue this year than last year. So, we are looking at a top line growth that’s a little bit difficult with currency and FX changes to predict exactly where we are going, but we are going to look at some pretty good growth in 2023, but what’s fantastic about it is we will be selling less low-margin chassis and more Manitex manufactured product.

Rabern is also looking at some good growth entering Lubbock. Joe had mentioned and I had mentioned that we are actually opening the new branch in March this month to soft opening. The grand opening will happen in the summer. But this year is more of a year of process of getting the systems in place, and we will make another infusion of rental asset investments in €˜24 and €˜25 to accelerate that growth. Do you have any clarifications that you would like to offer, Joe?

Joseph Doolan: Yes. I was going to say there is not a whole lot I could expand on that. I think you are right, a big driver of it is going to be that we are going to see less chassis sales in €˜23 than we did in €˜22. So, the revenue growth itself will be impacted by that, but the margins will benefit by not having as much of our revenue coming from the chassis sales.

Matt Koranda: Yes. That’s great. Any way to frame up how much kind of revenue in €˜22 was kind of that pass-through chassis sale just so we have a baseline to think about as we head into €˜23?

Joseph Doolan: Yes. Matt, I have got it. The chassis sales in €˜22 were about €“ somewhere between $25 million to $30 million. It was probably closer to about $27 million in chassis sales for the year. It’s really on the €“ that’s in the oil and steel lines.

Matt Koranda: Yes. Okay. Makes sense. And then just last one for me and then I will jump back in queue. The EBITDA margin improvement that’s embedded in the 2025 outlook looks like just under 400 basis points relative to where you were in €˜22. It seems to me that just a basic contribution from the rental side of things gets you a good way, a good amount of the way there in terms of improvement. Maybe is there any way to bucket out the improvement that you are kind of expecting between mix versus just the core lifting EBITDA margin improvement that you contribute to that?