Douglas Dynamics, Inc. (NYSE:PLOW) Q2 2022 Earnings Conference Call August 2, 2022 10:00 AM ET

Company Participants

Robert McCormick - President and Chief Executive Officer

Sarah Lauber - Chief Financial Officer

Conference Call Participants

Mike Shlisky - D.A. Davidson

Timothy Wojs - Baird

Operator

Good morning, ladies and gentlemen and welcome to the Douglas Dynamics Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Ms. Sarah Lauber, Chief Financial Officer of Douglas Dynamics. Please go ahead, Ma'am.

Sarah Lauber

Thank you. Welcome, everyone, and thank you for joining us on today's call. Before we begin, I'd 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, our President and Chief Executive Officer. In a moment, Bob will provide an overview of our performance, then I'll review our financial results and guidance. After that, we'll open the call for your questions.

With that, I'll hand the call to Bob.

Robert McCormick

Thanks, Sarah. Good morning, everyone. As we noted in the press release, we are pleased with our results for the second quarter. We see continued strength and overall demand across our businesses. Our team is using its considerable ingenuity to address and work around the various industry wide challenges we continue to face.

The Attachments segment reported strong results with record net sales and strong preseason orders. The Dilution segment continues to see strong demand, but is still facing macro economic headwinds from chassis supply and inflationary pressures. The strong demand outlook in both segments means we're well positioned for long-term success. The headwinds we outlined last quarter remain our biggest challenges today. First, we continue to see inflationary pressures which are negatively impacting margins. Second, labor market constraints, where our teams have found creative ways to attract and retain talent, and the situation is stable to slightly improved.

Lastly, supply chain disruption and chassis availability. I'll speak more to chassis in just a minute. We continue to improve how we operate most effectively under these conditions. And while the macro economic constraints are not easy and significantly, the situation is more stable and changing less rapidly today than it was last year. Despite these limitations, we remain on track to deliver our full-year guidance, which we have narrowed towards the center of our original ranges. Now let's walk through each segment.