Douglas Dynamics, Inc. (NYSE:PLOW) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET
Company Participants
Nathan Elwell - Vice President, Investor Relations
Bob McCormick - President and Chief Executive Officer
Sarah Lauber – Executive Vice President and Chief Financial Officer
Conference Call Participants
Tim Wojs - Baird
David Johnson - D.A. Davidson
Greg Burns - Sidoti & Company
Operator
Good day, and welcome to the Douglas Dynamics First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, today’s event is being recorded. I would now like to turn the conference over to Nathan Elwell, Vice President of Investor Relations. Please go ahead.
Nathan Elwell
Thank you, Rocco. Welcome, everyone, and thank you for joining us on today’s call. Before we begin, I would like to remind you that some of the comments that will be made during this conference call, including answers to your questions, will constitute forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters that we have described in yesterday’s press release and in our filings with the SEC.
Joining me on the call today is Bob McCormick, President and CEO; and Sarah Lauber, EVP and CFO. Bob will provide an overview of our performance, followed by Sarah reviewing our financial results and guidance. After that, we’ll open the call for questions.
With that, I’ll hand the call over to Bob. Please go ahead.
Bob McCormick
Thanks, Nathan. Good morning, everyone. The story this quarter is simple. Snowfall was well below the 10-year average overall, and the East Coast saw its lowest snowfall season in decades. This really impacted volumes and attachments and caused our results to come in well below our initial expectations, hence, our pre-release and guidance update a few weeks ago. The silver lining is we have been successfully managing through weather-driven challenges for over 75 years. We know what needs to be done and how to do it. This one snow season doesn’t impact our commitment to reach $3 of EPS in 2025. This is a short-term issue, and we remain on track.
As far as other headwinds we are facing are concerned, chassis supply is still inconsistent and unpredictable. OEMs remain cautious when talking about the potential timing of chassis flow improvements, and we aren’t planning on any major increases this year. Overall, I would say component shortages have improved slightly, but it’s product specific. Certain items such as hydraulics are still an issue globally, which impacts our Solutions businesses.