Manitex International, Inc.

Ladies and gentlemen, and welcome to the Manatex International Inc. second quarter 2022 results conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone keypad. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, today's conference is being recorded. I would now like to turn the conference over to Mr. Mike Coffey, Chief Executive Officer. Please go ahead, sir.

Thank you, operator. Good afternoon, ladies and gentlemen, and thank you for your interest in Manatex International. We appreciate you taking time to join our call. My name is Mike Coffey, and with me today is Joe Doolin, our CFO, who will take you through the financial details of the second quarter, which we announced earlier today. Following our prepared remarks, as is our custom, we will be happy to open the line for questions. Please see our website for our release and other information, including a brief presentation for this call. A telephone replay will be available for seven days, and the slides we cover will also be available for the next year. Slide two is our safe harbor statement, which reminds you that everything we discuss is subject to change as described in our SEC filings, which you can refer to for further details on many risks associated with our company. On today's call, we will focus on our second quarter 2022 results, covering financial highlights, our business performance, margin trends, and key drivers being leveraged for our shareholders. This is the first earnings call including Rayburn Rentals financial results. You may be aware that we acquired 70% of Rayburn Rentals on the 11th of April, 2022. Rayburn Rentals' performance is right in line with what we anticipated, supporting our goal to improve operating margins. As this is my second earnings call and with only four months with the company, allow me to offer a short, high-level introduction again. I was appointed CEO in April to help the company improve its profitability and growth. Since April, we have identified areas for cost control, efficiency improvement, and collaboration between the Manatex operating entities. I'm pleased to report that some of these changes are already showing results. Others will take time to fully implement and realize their full potential. I've spent most of the past four months getting acquainted with the company, its employees, and our capabilities. I've also had the fortune to meet many of our customers, gaining their direct feedback and outlook for 2022 and 2023. The senior leadership, Joe and I are making adjustments to our strategy to make a meaningful impact to the company's financial performance going forward. Manatex has the enviable position of having a tremendous customer base with ample opportunities for growth and share in key markets. Together with our customers, we are positioning ourselves for growth and has not moved from our stated goal to improve adjusted EBITDA performance above 10%. The team is working hard, and we are confident in our ability to improve both sales and operating margins. So let's talk about the results. The second quarter was highlighted by continued gains in both our sales and our backlog. The company's adjusted EBITDA as a percentage of sales also improved meaningfully during the quarter. As discussed in today's press release, we are pleased with our progress on each of these fronts, and we also believe that we are well positioned to continue to see improvements in these and other key performance indicators throughout the year. Our Q2 results reflect Rayburn Rental's financial contribution since April 11. We look forward to the positive impacts of Rayburn's contribution for the entirety of the third quarter and beyond. Second quarter consolidated sales were up 16% year over year, and our second quarter backlog closed at a record $214 million. Despite inflationary pressures and supply chain challenges that are affecting our entire industry, we were able to move our adjusted EBITDA margin up to 7.4% of sales. Encouraged with these results, the team and I are accelerating efforts to attain our stated goal of double-digit adjusted EBITDA performance. Joe will speak to the specifics of our financial results in a few moments. An operational review indicates Manatech's capacity to increase throughput at all sites. This includes the already announced organic expansion of Rayburn rentals into the Lubbock, Texas market. Despite consecutive quarter-over-quarter increases in manufacturing sales, our throughput capacity is heavily constrained by our supply chain. Our suppliers have been impacted by the same inflationary pressures challenging every industrial and materials business. This has impacted costs, load deliveries, and forced the company to increase its working capital in response. For example, during the first six months of 2022, international shipping costs were three and a half to four times more expensive than prior years, but also encumbered with delays and unreliable performance. We are addressing the realities of the supply chain shortcomings by expanding the list of qualified suppliers and via price increases or surcharges where they are possible or reasonable. In reality, as previously stated, it will take several quarters for us to see more stable supplier performance and cost structures. The recent inflationary pressures and economic recession in the United States point to future softness in the market. To date, however, we have not seen any marked impact to our customer sentiment order variants, or changes in our customers' outlook. To the contrary, recent meetings with four large customers indicated 2023 order forecasts at similar levels to the orders obtained in 2022. We have also not seen any order cancellations, but we believe it is only prudent that we prepare for the unknown. We are working with our suppliers and our customers to that end. I'll have more comments on that later, but for now, I'd like to turn it over to Joe to discuss our financial performance.

Joe?