Alamo (ALG) 10 May 202020 Q1 Earnings call transcript

Good day, and welcome to the Alamo Group Inc.

First Quarter 2020 Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Evan Rizzuti. Go ahead, sir.

you. Thank should a you press of all release. have now, copy received the By

XXX is and and a receive if company's make missing However, anyone on are copy you release contact the at sure you call passcode of be one for week. replay send can a list. one, us There which begin would run XXX will will replay be the one and will by XXX-XXXX, XXX-XXXX dialing we one distribution a accessed call and XXXXXXX. please the hour to with after the The like

call webcast for is XX Additionally, company's the available a being website and at www.alamo-group.com, days. be the will replay on

are Treasurer opening remarks, the Management Officer; Chief the and Robinson, some Financial President Officer; and will your Richard make we'll Vice then On line today Chief Vice Wehrle, Corporate for President, with questions. and line Controller. President, Ron up open Dan me and Executive Malone, Executive

call of non-GAAP During are the the reference earnings their attachment GAAP to non-GAAP release. included to these remarks. numbers in our certain applicable in numbers results today, management may Reconciliations

Before comments forward-looking to like Rod, turning about statements. a make the call to over few I'd

making provisions Act pursuant are today statements the safe Litigation to harbor be that of will of We Securities forward-looking Private the made Reform XXXX.

and materially forecasted from results. Forward-looking which may and to differ in known risks statements cause involve results uncertainties, unknown periods the company's future actual

the SEC herein, following: are listed reports. issues, only company's Among of contained not demand, actual geopolitical those materially factors time other to impact, the to and any risk this obligation does to company speaks from in market factors, competition, which cause update undertake seasonality, issues could information COVID-XX The differ as which time date. weather, the currency-related results

to I introduce go Ron, Ron. would please ahead. like now

of joining then we I first following your results call few begin look forward provide and of for comments you, taking on today. to of a formal our Malone, go please and XXXX, will will the Dan, with quarter to want financial remarks, for you us the our ahead. Dan CFO, results, thank all review questions. Thank Ed, we our a our

from sales Thank XXXX X% due Organic down net our COVID-XX due first you, translation. XX% sales key and to to The up were are were acquisitions. about currency Ron. results takeaways quarter disruptions

net an X% up quarter and First income about acquisitions with both was basis. accretive, on unadjusted adjusted

exceeded nearly quarter First to XX% hand continued EBITDA year. on was highly EBITDA end and and and acquisitions prior availability since cash to up run of accretive quarter was million expanding Operating XX% $XXX backlog with adjusted Quarter-end cash $XXX flow favorable margins. million our credit plus generation December. down

effects XXXX organic year unfavorable First first higher $XXX.X currency Dutch the of the were Power more acquisition down XX% closer our X%. sales sales X%. prior million the Without quarter than were down of were on organic Without quarter. net effects, translation, to sales of

million the While currency strong of on Industrial $XX.X million, sales down in U.S. quarter unfavorable were to down X.X% we our in sales the prior X.X% Agricultural sales last currency over XXXX prior organic dollars X.X% year U.S. a started top Dutch XXXX first sales the division's first the net two translation the of Power due results of from our $XXX quarter acquisitions division XX.X% shipments Without COVID-XX dollars fell the X.X% down this quarter represented and year year the first in Morbark translation. were seeing organic mainly first impact disruptions. without about and and Division and without down effect weeks acquisitions, from effects. of sharply March growth, quarter. of increase

March. disruptions, offset quarter the operations end sales, Europe, two our sales. by organic and some Dixie significantly the last for North was were share XXXX, $X.XX Similar in our compared or per first million quarter per the and of $XX.X COVID-XX Power to of The diluted income reflected the by first incremental million of $X.XX Morbark Dutch shipments to American from diluted diluted weeks of Net Chopper net share. affected in accretive what $X.XX XXXX XXXX sales mainly acquisitions quarter or lower income per at the we European $XX.X of prior year saw growth share.

noncash net includes income GAAP the acquisitions. of now opening balance from Our large these some expenses allocations sheet stemming

above and these to the to incremental asset no exclude amortization, are both diluted require value these would incremental we the the operating to of for the amortization and assets, changes the expense between categories. of ordinary of Morbark significant the If been to values total flow cash allocation most of outside cost step-up related the the cost effects amortizable the over intangible acquisition Most fair and hard difference of inventory future acquisitions contribution per expense. EPS share. These related maintenance step-up, have historical acquisition $X.XX of of accounting

inventory excludes charges million the up year $XX Morbark XXXX quarter which over step-up EBITDA, $X was XX% adjusted quarter. First million, prior and the first

had sales in total EBITDA first adjusted in in contributing as prior adjusted adjusted to quarter, two the more Strong Morbark results quarter. XX% and drove increase the above-average margin. compared a percentage the of year than of first an EBITDA XX.X% Our this with acquisitions was EBITDA expansion Dutch dollars net margin the Power net sales

year acquisitions, the and tests EBITDA prior lower shipping delays. year than than shutdowns, the to core was these Excluding production related COVID-XX the quarter, business plant prior due

of COVID-XX. the of and the in XXXX past to the it trend, favorable slowing in in flow to year requirements, we sales operating quarter of began million seasonality operating in two flow XXXX $XX quarter. first negative which usually normal have each driven changes positive we million to expect million growth, compared XXXX, neighborhood This cash to capital working $X.X During $XX.X of the of positive large first years. to Due were we working the quarter by largely due cash due of flows, flow impact negative capital continue operating the cash generated cash of in prior

end, million and At on cash hand facilities with availability of of under liquidity. $XX.X credit quarter existing of $XXX million over provided us million $XXX

cannot more liquidity, adequate forecast duration have of we full a impact than COVID-XX currently and we While pandemic. the the

not do near-term liquidity we anticipate issues. However, any

Our order quarter is first backlog the having than XX% at XX% December. first quarter. and $XXX to Chopper large Dutch prior prior quarter here. enough lower declined first Backlog first was year Dixie in the backlog about year is ending mention million, since backlog, our ended quarter XXXX, Power included

order was Chopper Dixie and quarter. than prior Morbark lower excluding year backlog about XX% the books, first So

to about COVID-XX were To first our translation. results, due recap acquisitions, XX% down currency sales net sales were due up to organic quarter and XXXX X%

income with accretive, acquisitions an on X% adjusted up and unadjusted First was both about basis. quarter net

generation adjusted continued down EBITDA quarter prior with and run First EBITDA December. expanding since million cash liquidity accretive of XX%, acquisitions was Quarter-end year. $XXX up remained Operating to backlog $XXX is favorable margins. to above million, XX% highly covering nearly our and flow

now I'd to turn to back Rob. like over the call

All March. as strong quarter even soft with quarter for acquisitions, able sales achieve first were and right. Dan first and benefiting especially earnings slowdown the But with the we was March, actually, good, Thank up given in due the Dan. with that you, to And start until mean, our pretty March reported, I that our to we how pleased that ended and record was. from

March Europe and our showed as benefits were of France plants shut the North hard and down ones remained biggest Western Morbark. of as point Europe in beginning plants, England Certainly, Netherlands February some started the us in have the and though And time are this changed all period. started Power for America interestingly, impact in Dutch things our coronavirus and of said, by open March off throughout during which Dutch that was the But as And in really at I to January the pretty really hit and acquisitions good pandemic. Power period.

In North to America, operations our of most continued function. U.S.

Quebec probably So especially some Canadian this the most were our by affected in and situation. temporary were ones there plant, closures those

During these our in of to are have April, of who though plants in out as a COVID-XX, furlough the furloughing of XX% most demand either levels related about are of of response in demand. kind people or out to majority slowdown we we've been on due reopened, are workers workforce, the the now that to absent at were changes of closed have and our operation though some varying

we to to operate fashion able there. normal a By still obviously and fairly in are large,

meet are We people a functioning we a XXX time have a safely and lot and chain have make employees to then focusing social short-term be to supply our only few similar able still us. vendors meet be to reduced timely remotely need to operating about on manner maintaining reported, mean, the are basis having distancing, during I most and And we function more period. a as especially we this most our issues, of but as precautions scale, while our sure on were to being are they're able at have but those taken continue in suppliers also of able working generally, our requirements, to to we able level. to this from

pace orders. had they had more orders few have are a concern been issues placing customer to are with their time. normal part, operational customers at payments shipment is the few due few limitation. but accepting have have customers in also for that and that deliveries new our delays customers Though bigger and fashion. been requested But a most some have this quite limited, these have that where we've We fairly a orders The making canceled a a normal not at

and seem functioning. Our of right And in are held markets little now, up rate up there bit the farmers be and a better to in the field a little are holding bit better. has order our certainly, major the Agricultural products incoming both all

pleased And inquiring up on but actually basis. an getting seem the products a to and good. asking, parts so be quotes still little customers that and generally are is is as-needed spare our our back holding pretty and inquiry I And deliveries everything. cutting ordering mean, we're still certainly about level

their customers with during directives. own are seemed Stay be to contending Home the at the of issues So

rest in are hope term. that to that constraints with improve, will limited we income, Orion some and our start in our for that customers We governmental, year. have loosening, the are to situation some customers, restrictions continue this has of budget the of of So now effect that concerned total, our reduced some will the short markets asset though bookings on certainly these particularly

of travel, actions, control We've cash. limiting initiatives a believe these levels, have at delaying yesterday, adjusting did we several and but and our in we cash inventory, to result we or that result, some among cuts, what number should always back restrictions costs actions our even of we the a we actions. cutting actions including looking mentioned need pay believe stays that contemplated conserve and but where of capital not with And do reports, other if initiatives, soft. expenditures, taken certainly a these staffing we other business are what on development we and As our tomorrow, taken already because these to flow strong remain are on

Division said, Europe backlog, as we a up I still it at debt and of our healthy bookings reasonable is quarter, company And cash Certainly, where back a important, we fortunately, is to have its in the strong to little quarter, even work. year, in continue In the last benefit covenants our than result is maintain in a as with pace the it of management company as expects of our the for from starting slightly a and but level. during result reasonably it to while And acquisitions and the Agricultural get so be compliance all of to dropped completed high our noted, financial control but holding also first they're quarter. second level will as seems more initiatives. I a remain to usual cost

nongovernmental were all some holding to get effectively seeing, weeks, functioning these our there's been month little early remote our directives. interaction few up both they weaker the in have industrial in and so. again, or reasonably. certainly our home basis for a at the and cases, in sector Ag more We're with over customers bookings back customers softer Though starting pretty as the last to a last But are as this work is on are people improving noticeably stay governmental than

actions challenges stability So Group, of continue all be pandemic to help causing to the not we this certainly immune feel support this as will Alamo Therefore, since still continuously responding globally. problems ever-changing are in historic is doing began, been our the will and to and have markets we all, our the and all we customers but reasonable to we conditions the situation their mitigate taking needs. yet

respond and the these really a avoid I'm situations. to but team very to temptation tirelessly team March that this acted really hard proud month the us But during with and April. issue, We stay our daily trying and management of and on coming top are the has overreact acting directives of effort, to to to and this aggressively, at has been many I'm selflessly were in changes that of

really company of the whole with a showed lot certainly to of trying which all situation, this to us whole and support Certainly our and staff deal and has it. for the to unprecedented dedicated been has

in We to also and through thank all customers for feel process. in we want during thank their to for as the our our and to loyalty situation general vendors And support their investment our particularly, trying shareholders community continued this this want this. we're way

say concludes be to I to open Operator, ahead. now But might turn with the remarks, would I we'd but any to please you go questions take And formal any questions. our glad lines have. that, that like

Instructions] with Dori Yeah, Company. Mike absolutely. from is [Operator Shlisky question Our & first

So I'm and at working right those we're asking the still of now the level. not issues country. through local why situation budget about across sure the state

I toughest all teens it's budget local XX%, and that times really would any the a modest landscape, last much to XX% I probably here here. Do in think back some the seen time than to no the revenues different or of more XX there's decline in that downturns recession, more in As prior of successfully making, your XXs. years the kind downside where this you of XX much great state now, the too look have toward be

very kind just as of broad your for to things get you. could thoughts how tough Just

all, will other I hold now. predict. impacted. of the I of lot Yes, governmental bit many I it's degree, sort Yes. probably we difficult a a year. I think I this of better mean, think of of up bit I very And say first are know. unprecedented rest mean, don't for under to and than is little a manufacturing. situation. will we mean, right certainly The But be will exact be they budgets strain the an

could more in that in federal our state Since our that not much things affect the get customers how the think most city from government. or industrial governmental from our I county of is relief entities, Fed federal business. they are sector

How And wildcards, from much I so that's the will bad said, they get some revenues I help federal think, like the how of the government. will be?

mix on equipment mean, a being I But is our they most And and of out regular it's then essential basis. wearing and daily.

So of of mean, small that's and I I part think a we're the maintenance a part their budgets budget. sort of and

hold it's will said, much how And we a some be little business. next in to normal to think it's going everybody people better, In I couple I think I real bit in is going the quarter back we'll like I effective to be be So second to like up still start but it's degree. to important But getting affected. general. the said,

I up better. hold think we'll

it's exactly how we hard the in really shape deal to I situation. all be much affected. will But with we're think to predict

crop to to I as business. they're Then positive, a contrast but of sounded as across the against you seeing acreage, the this go of year. the Maybe major some I some first higher on ranches. of think, crop row farmers the I industrial. not and some your more Okay, ag little wanted mean, Maybe costs rough comments side, of bit be still shift most great. the are positive,

business that the plant near-term? [indiscernible] if some then on rancher upstream the on any effect So investments a impact lant figure the can positive you help has of the I'm of curious toward shutdown, out kind shutdowns have on side, at on farmers the And that and any in me wheat does your side? downstream

Yes.

I don't think is steady row the this right, field. for like hard go been the as the farmers. crop But than crop believe farm are row that as in down, Some is they to is short-term down, crop as chances are down under Their incomes that acreage the up prices to and of farmers go certain cultivation more long under predict. as have there's up but cultivation the we and you're holding in steady, certainly acreage holding long up

And and so and normal going kicking But are all think they're everything, it's will I not into bookings are in normal. to think they're to business not tires trying our going certainly distance. farmers because dealers and showing not like row like they acting, that I general in I say say it from social crop normally, but are far their the won't too

with And are they're farmers thing, is operating because know tragic prices going some range. going like to short-term that. And soon of I back it's plants and are actually, reasonably that's on products is but I on the the the there holding ranchers think middleman packing get there's to whole wildcard The cleaned processors so go that to going availability. more up that act how wheat to what's causing because demand already I I plants the kind say, all that that's are and of disruptions less wheat up and up, some predicting functionally together, get their well. the it's get Like say, they the their are like

normal. like should to quarter function a think back should processing said, little of the the the the I rough I be second wildcard. think effectively it's But bit that. that's mean, But could they on be I be little the have so I And second that more should and year, a that found believe half I ways

down, the but issues think in in quarter. balance half more going but they not time. to that But I are come at they're on. ranchers second second to they're don't adding I year, us I not some said, prices think their hold the in you're are a the getting They hurt, I think but point more like this I think will that see into of of

Okay. That's Ron. color, one last for Maybe great me. one

should on is side, potentially you on the has I the On least the and plan that debt possible? at bring What's major extra happened it, that least finance But French at just the I kind debt guess, all debt. if balance make cash mean, as are flow it Obviously, get net to debt cash this the any sheet, Dan, least, least you for keep don't at year need if as users. go now have do to hold? net very of reduction your you low the down then

I debt goal. But reduce net making debt be management, be will major we mean, we paying net is keeping debt, cash continuing debt. our some Yes. to certainly, paying will down

We cash will as we'll believe as little start inventory. we're with the I'd down. effective also flow should we improve goes some softness should receivables sales, at on. And actually see say reducing like to year that in coming a

So as cash, thought receivables the paying be all we're turn inventory hold we some and we to into going cash. will just I not

we and We to start to down cash debt, will want to our meet our balances keep want paying keep needs. we enough

short in into little but the worried U.S. that's was value. a that ago, that of more And about the dollar outside now were U.S. But a of that cash down most month cash the little mean, is bit in a to I term, it's gotten bit a equilibrium. little and outside We some back that. repatriate come this our I strong, easier U.S. mean, now the

bring balances. cash we the some paying be down decline. overseas, I year, will debt and rest cash our debt. holding so will back But of above-average will foresee more we see be that do for And be We'll and over yes, bringing still we you'll the probably

debt a more there'll paying to do be want the than down just I minimum, chunk. we a just confirm,

Yes.

Okay.

questions. Well, my so Okay. thank you for answering great, much

you. Thank

Our with Sidoti is next Joe from question Mondillo Company.

Ron and Dan well. you're doing morning, good hope Hi,

you, Thank morning. Joe. Yeah,

markets in just you really, And of farmer be corn but is ethanol a I Ag one which I'm of what result supply, not could as of questions crop lower my your Just ethanol crop curious fact the of to they're and year regarding because already. degree this a don't at wanted row to of seen the are could on follow-up sure exactly, what you year, because weighing of the lot does particularly think, the that looking in there asking lot of the to I know, we've you to segment? some sort Ag lot a just on already a markets, have degree prices, consumption demand maybe And later situation business. quantify I'm the makeup which planting

much So I'm up curious business the sector segment? Ag or part how that just of makes Ag of your

through many of get but go that the the we is between, dealers, that really orchard you're right. subsectors for of we our farmers, say, feel farmers, given Ag a hard breakdown ranchers, the within have the certainly, hobby breakdown farming, sales, it is We don't have definitive to

there's I if farm some to I sellers some ethanol, the we too feel could got I think under incomes, the the and and going see they've still acreage where to mean six corn I overproduction under storage in are five, think storage, ago a think mean, you already. selling there's think probably and mean, corn because fair years could XX% that I I weakening. cultivation, with And already. I while much that remember, bit prices they're were be already in below they got be in But also and farmers

I feel I still up think there's well. And I reasonably hold farm should income mean, don't so

Because, that I prices. crop mean, they've constrained been fairly at

well. would think still and than are upside the they incomes, I show like I by I whole that I can think of so prices, got think benefit consumers. farm there's I get where barring think lower market But network with to even ranchers we that there's to get mean, this and with corn and that the apply we process as to too. get ranchers, the So actually downside sort actually given helps still this any this more slightly

for the that's lot So feedstock. a other used

what we about feel but and downside, downside. than that where ethanol upside are, in corn I and we're we everything, that cycle, slightly still it some still I I are you're the I yes, more low not though feel there's where in much that still feel saying upside, So so Ag know guess I even there's

that the at cultivation, it as equipment reasonably up that as even But to farm I in the long point than be much much they they'll well. are. the pointed that certainly, we're have have under acreage almost that's more under to farmers that's cultivation whatever strong, as a with. thing upside why think we say, could And total prices are, so a holding the it's I a more. spend like was cultivation, lot they should out I mean up I little low not downside, at acreage and but better acreage crop there's have with to feel a kind But think of is such and under better they begin lot of downside acreage interesting have

From top Yeah. a

that's right. Yes,

So measures large on understand cost little to a when And when was relative put place a did really better wanted to or the about? bit management severity start to of it you serious I the timing, start downturn? you that exactly in how see to long spoke that

shut all was and and have have when down even that, well, were I up was interesting. for some But more Europe work. February I Italy France March working mean, that's that home, actually our March fast. was Like say, period started really, in March to restricting March, of things orders. ones the was already back That's That's only I when we in a when was were to when of and England it but coming. with there not January first U.S., England home I strong getting all in all ones we've to in all now these earlier record of plants kind the even I like in mean, fact, started shape bad results, all of working us, it our at stay the than started measures. really and when heavy But were it's shutdowns like March. mean, mean, show said, that's weak both cases very I started March. not France cases with I Most when started time. company. and said, lot the are in our of from for people

of from of because aren't home. work And it difficult kind governmental that up responding made kind to like set

course, that's like we all all have I back into in there. plants do. businesses are in we to so little say, showed the than changes. open good The are COVID-XX. but our more products, though like and from affect most I was the softness a think Europe of bases, starting and starting Of tried said unprecedented say, situation the fairly working the open like business at our by some home customers now to all it adapt to I very like here April, level I the thing production to of we're Continuing up like people on. are build but in adapt all now while the market I our situation. into there even that is see, January said limited we've It's now, by to the unique moving said, in can us situation effect, mean February, these our and but I And little the saw like from March May, we of

a out more a more, start customers, back our bit opening are work. little either seeing we're seeing people little Things as how trying are up we're remotely they with or getting bit to to to communication figure function

basis second to me, I important constraints, said, going going the be that's we budget be is see very I quarter there's very there. base the I especially to be So that will normal there's normal, if how mean, weaknesses I say, think to like back to North much in second to I America little out get I some think why back Western just quarter, But to think the Europe, world, some financial start I think bit functioning a important.

through pretty a carry backlog second good have quarter. to We the us

said, slow we year almost the going we've say, will nice coming second normal said, of go of what pace see normal, bit really I Ag very whole, the results, quarter this orders I to business for be continuing like but it's quarter how a the things more little I third like country. some pace. in is rest on, to at really just and is me, And my But get had but how a steady quarter, for the whole there the one and and to new to to much is our seen trying at happens focus at second bookings, are amazing a I like the think to in pickup saw and important, point, respond not for but back

making cost three is the We two adjustments weeks the to March This and started actually Richard. in toward first of April. end tail

Okay.

I measures to to determine react are just you talked of you that was the how in cost trying the sort changes about? Okay. quick to

debts we half we announcing heavy Well, mean it restrictions Richard were two started and the of by in already and March as second we you mean, and us. middle I started March two good. were ended soon in good whole also, the and of back first then responded cutting the and March, said, January months but months second February hard March. poorly, these off travel like for didn't of and hard, and I on salary CapEx responded started seeing as we as half the hitting March, everything

me. for Okay. And then question last

number. of the a wanted Regarding the But XX%, get sort healthy. which backlog you fairly just to you also to bit. in your up sizable indication prepared some acquisitions, commentary backlog of the little you're sort predict seeing? to fairly that remarks described the is of I try in, is mean, excluding of clear is stated backlog what a order Because a and your your

just So have help all? that trend listing? any the at you clarify order Or could of change in you seen sort

second Well, conditions first for is of as I second in fairly mean, healthy say March yes, early middle respond when March challenged It's and of were like needs April, around our I and plants quarter. said, so stay communication cities, changes I customers, some I half so the operating the general, wherever some the these got was to said, I was plants, of with There we everyone early with will of with for customers I mean, these backlog county, world and nobody operate March, was I directive I some know that we states, to half Communication were. respond some now of and I new many country regarding mean, was in to at I where mean, shutdowns. multiple states we responding. became it's given second and some in and trying so in daily, home. XX many mean, from some communication daily customers difficult, mean, the April. it everybody we of very trying the because,

some set And customers of up as to home. aren't work said, I our governmental's from really

normal I second I start very mean, same times. mean, said, orders a coming bookings was difficult. but reasonably the I biggest it right the but year. was some but are they're in I of environment. But Ag to nothing deliveries, functioning at we're on now, deliveries. orders basis, second of said, still were big basis, better the Ag, trying isn't say, than That's they our one why March. like a delay little like And bit And I'm were operating the improve, I the not seeing to in, at even was they communication is our were half communications come saying yes, better improving. like still pace. a there So they're challenging April, in are order they're I I this half Ag doing ordering, taking of though communication ordering, now, are and Governmental's so think still in say certainly, And certainly,

trying say, had are, cancellations, they haven't I where figure out to they're their much We but budgets. like

I And is most infrastructure. our on improve, think and of so to of the that's still of mean, ordering a unknowns think out as out just said, I cycle, being I is stability They're a starting good because lot I with is think basis. used communication equipment the I the dealing But there's cleaning, there. still regular

be there's a is to or this very like we we're certainly we like of holding and lot think a assume, recovery important And to to little hope wave it second a quicker reasonably well, and me really this I go. things a But get the for kind remission any to not be respond I there's of anything. I of set say, I or to second quarter the that's pace going so up when that say to is we seeing unknowns, think that will why going to back start normal. how mean going

people just plants themselves, to we that, in inventory, trying operating I mean, I so back still is we're our sure clean while we say, supply far the our meet to we we're the make want like demand. we and working have meeting worried too don't we're making I functioning, customer think we're sure safe, get cut of needs customers, chain ahead mean, to I but of and but conditions changing we to to trying I need And on inventory like are yes, it. that say, we're react that overreacting daily We're say, we not like avoid have that our

to So daily I daily. conditions overreacting like to without trying are say, react changing we just

A business If and of quick and gas, understand. XXXX? oil Yes. in question just throw just I that could lot make No, uncertainty. I one your does up of last what

exactly. and don't contractor. think know Since business vacuum he's our in gas, in, total a of say of of contractor, a and vacuum lot to think is more mean, kind business. a we oil ELA back that's oil I have gas sell decline hard mean to I I trucks. working that detail we it's mean, I even I yes, wouldn't around base rental And Again, it account diversified saw when a truck business the low we had vacuum our is oil I gas don't where and but dropped Alamo's of certainly to who going mean we mean, for. in all I our to and truck I But we in of have single mean, still digits. that it. noticeable then, XXXX,

So thing, right not big now. is certainly under a stress it's it but

the oil really Saudi been like I COVID-XX, we gas the say, got by in battle. and mean impacted Russian they've has the oversupply get they

on mean, I are going of so good gas, oil and things in lots there's the And not good short on term. in pretty what's

is us to help to other construction, and it's but between breakout is be think that to for as much us us, oil as vacuum so soft but area. going mining I going stuff. I it's help, our certainly to right little mining won't to that's So mostly downturn. non-governmental hard of XXXX other isn't applications, going And some say, little in truck is did a like it's our bit But of soft, this in construction these it It I and going now. kind yes, in a is it sort some areas, soft. be of bit of soft everything gas, But excavators and think impact

you safe guys luck and very appreciate it stay got I good well thank well. and with and as much everything

All right.

go with next [Operator Please is question ahead. CJS our Instructions] Securities. And Moore Chris from

Hey, good guys. morning

morning. Good

May order outlook for on a moment. be the kind of stay

So times article that And lead your one Can still outlook are the control lead lag term? half secondly, of bit near for improves, even chain of of days that more under spectrum? becomes still be where products could supply unless near more crucial a term. these second in me longest or there's have the times if improve that in orders the kind just issues that those much things you was little pandemic you a talked about the the terms remind

I fairly XX build as for to little Yes. us much certain I out we'll to mean, short. us, mean, going bit XX usually with. takes The probably lead too products days mean, this, a said, begin on product. but we of be I time sometimes XX inventory sort I order into usually a to like much And days as

we a our truck products I wouldn't been we've So think, had a vehicle closures lot of street reopen whole down. to say lot cutting and are the certainly, lead a inventory industry softness, changing got that certainly, work bit. some truck times, plant chassis, The chassis, that to excavators, sweepers, actually our we I we've starting I back. They're used a has want lot. mean, of some like vacuum little a trucks, lot buy and of

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of, of to down comes lot a mean, I the people. course, Sure. things

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travel. mean, what not we're it's already with some them. And But we're to along we're I said that, limited and I mean, So I any it has domestic very other and of travel. eliminated that doing like central We've deal and kind not salaries. one it's go yes, but than most of the short people and most we are us, doing ever levels you say, cost, adjust there's need trying don't travel, with those for we're really, making our the reviewing need, but more staffing kind And mean to it all comes we're in what level the term, that's to pop. to have I of have daily. not down we I than changes international

to starting say, especially like mainly are needs people road most to plans But bit of the I now. customer And to think, open our salespeople, not through Allan. more. They the are servicing We're little I trying calls, a and text up emails, and that. on they're be ready as now right customers little phone up a more making to bit open and to respond and

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in guys. Thanks back the jump I'll it. Appreciate line.

Thank you.

right there I'll And in Instructions] to no back telephone the further closing [Operator now, questions are queue. management for remarks.. turn it

think interesting whole very just conditions mean, to as I they and but we think good work and I is good And trying quarter you I continue company everybody situation, not all. our a or and I critical of a joining like our and of we and appreciate mean, said, say, change, to Okay. everything assure feel to and second function the to all. going bad. I today diligently this us your whole that Well, the are top say, country doing about just unprecedented to but said, really support ability to very I on us, respond to again, I you be I but like and I industry. is want and and and like as And We thank our interest an mean, perform certainly mean, company for, so I terrible

and you, keep with developing, July. appraised thank forward we to conference you to and on we quarter our we're but in So of second look how speaking call you we'll try

So good day. have a Thank very much. you

concludes for This participation. Thank today’s call. you

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