Douglas Dynamics, Inc. (NYSE:PLOW) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET

Company Participants

Nathan Elwell - VP, IR

Robert McCormick - President, CEO & Director

Sarah Lauber - EVP, CFO & Secretary

Conference Call Participants

Michael Shlisky - D.A. Davidson & Co.

Timothy Wojs - Robert W. Baird & Co.

Gregory Burns - Sidoti & Company

Operator

Hello, and welcome to the Douglas Dynamics Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Nathan Elwell, VP of Investor Relations. Please go ahead.

Nathan Elwell

Thank you. 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 risk include, among others, matters that we have described in yesterday's press release and in our filings with the SEC. Please note, earlier this morning, we filed a short supplementary set of slides to accompany this call, which can be found in the IR section of our website, douglasdynamics.com and in our SEC filings. Joining me on the call today is Bob McCormick, President and CEO; and Sarah Lauber, EVP and CFO. I 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.

Robert McCormick

Thanks, Nate, and good morning, everyone. At first glance, this quarter's results don't look so positive. But if you look beneath the surface, the positives are there. The best news is that our Solutions segment improved its top and bottom line results significantly. Solutions sales increased double digits, and adjusted EBITDA margin improved to 7.3%, a big jump compared to the same period last year.

Team was able to increase the velocity above fits moving through our facilities and operate more effectively, especially at our Dejana operations. As expected, as this year's preseason shipment mix shifted more heavily towards the second quarter, the attachments segment had a difficult comparison to a relatively strong third quarter 2022. However, when combined, the second and third quarter attachments results were comparable to recent years. With that said, let me provide an update on the external headwinds facing our businesses over the past few years.