The following is a summary of the Wajax Corporation (WJXFF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Wajax's Q1 2024 revenue was $482.3 million, a decrease due to lower sales in Construction and Forestry, and Material Handling sales, but partially offset by higher Industrial Parts sales and ERS sales.

• Gross profit margin increased to 22% due to a higher proportion of, and higher margins on, Product Support, Industrial Parts, and ERS sales.

• Increased selling and administrative expenses to 16.4% was attributed to personnel costs.

• There was a 5.3% decrease in adjusted EBITDA to $40.7 million due to lower sales volumes and higher personnel expenses.

• Adjusted net earnings fell by 28.5%.

Business Progress:

• Company is focused on executing six strategic priorities for future growth.

• Increased equipment sales are expected due to the new Hitachi Construction Machinery Americas (HCMA) financing program.

• Due to an increase in backlog and the new HCMA financing program, the company's inventory is expected to decline.

• Future growth stimulus will be commodity prices, budgeting for capital projects, and higher margins on Product Support, Industrial Parts, and ERS sales.

• Expansion plans include strategic priorities like growing the base business, specifically in parts, service, and margin improvement.

• Identified organic growth opportunities specifically in the product support parts and service, and Industrial Parts and Engineered Repair Service sectors, particularly focusing on Ontario.

More details: WAJAX CORP IR

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