PART I – FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Alta Equipment Group Inc. reported Q1 2022 revenues of $331.7 million, up 23.4%, with a narrowed net loss of $1.2 million and increased total assets to $1,030.6 million [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets increased to $1,030.6 million by March 31, 2022, driven by inventories, while liabilities and equity saw minor shifts Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $504.7 | $448.6 | | Inventories, net | $291.0 | $239.2 | | **Total Assets** | **$1,030.6** | **$982.6** | | **Total Current Liabilities** | $470.7 | $420.6 | | Lines of credit & Floor plan payable | $300.9 | $253.2 | | **Total Liabilities** | **$897.6** | **$847.9** | | **Total Stockholders' Equity** | $133.0 | $134.7 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20(Unaudited)) Q1 2022 net revenues rose 23.4% to $331.7 million, with gross profit up 35.8%, and net loss significantly narrowed to $1.2 million Q1 2022 vs Q1 2021 Statement of Operations (in millions, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net Revenues** | **$331.7** | **$268.8** | | Gross Profit | $91.4 | $67.3 | | Income from Operations | $4.6 | $0.5 | | Net Loss | $(1.2) | $(5.7) | | Net Loss Available to Common Shareholders | $(2.0) | $(5.7) | | **Basic & Diluted Loss Per Share** | **$(0.06)** | **$(0.19)** | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders%20Equity%20(Deficit)%20(Unaudited)) Stockholders' equity decreased to $133.0 million by March 31, 2022, primarily due to net loss and preferred stock dividends - The change in stockholders' equity for Q1 2022 was primarily influenced by the **net loss** and **preferred stock dividends**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Q1 2022 saw $6.7 million net cash used in operations, $18.6 million in investing, and $24.6 million provided by financing activities Q1 2022 vs Q1 2021 Cash Flow Summary (in millions) | Cash Flow Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(6.7) | $0.6 | | Net cash used in investing activities | $(18.6) | $(9.8) | | Net cash provided by financing activities | $24.6 | $8.6 | | **Net Change in Cash** | **$(0.7)** | **$(0.6)** | [Notes to Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue streams, debt structure, segment performance, and recent business combinations [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights 23.4% revenue growth driven by acquisitions and strong business, improved gross margin, and sufficient liquidity - The company is currently experiencing 'recovery-related' supply-chain constraints from OEMs, leading to extended lead times for new equipment, but management believes its diversified cash flows and ability to source used equipment will help mitigate the impact[150](index=150&type=chunk) - On April 1, 2021, the company completed a private offering of **$315 million of 5.625% Senior Secured Second Lien Notes due 2026** to refinance existing debt, reduce borrowing costs, and enhance liquidity[154](index=154&type=chunk) Consolidated Revenue and Gross Profit YoY Change (in millions) | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | **$331.7** | **$268.8** | **$62.9** | **23.4%** | | **Gross Profit** | **$91.4** | **$67.3** | **$24.1** | **35.8%** | | Gross Margin | 27.6% | 25.0% | - | 2.6 p.p. | - The company operates through two reportable segments: Material Handling and Construction Equipment, with recent acquisitions like PeakLogix and ScottTech expanding capabilities into automated equipment installation and system integration[164](index=164&type=chunk)[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate exposure on variable-rate debt, with a 1% rate increase impacting pre-tax earnings by $1.9 million - The company's primary market risk is interest rate changes on its variable-rate debt, which includes the ABL Facility and Floor Plan Facilities[217](index=217&type=chunk) - As of March 31, 2022, a **1% increase in interest rates** would result in an approximate **$1.9 million decrease in annual pre-tax earnings**, based on the outstanding variable rate debt at that time[218](index=218&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective as of March 31, 2022, due to material weaknesses in internal controls, with remediation underway - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2022, due to ongoing material weaknesses in internal control over financial reporting[222](index=222&type=chunk) - The material weaknesses relate to: (1) user access and segregation of duties, (2) parts inventory controls, and (3) the order-to-cash process[224](index=224&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) - A remediation plan is in progress, including implementing new ERP modules, enhancing policies and procedures, and providing additional training, with expected completion before the end of fiscal 2022[224](index=224&type=chunk)[227](index=227&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not a party to any material legal proceedings, other than routine litigation incidental to its business - There are no material legal proceedings to which the company is a party or to which any of its property is subject, aside from routine legal matters[231](index=231&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes have occurred regarding the risk factors disclosed in the company's 2021 Form 10-K[232](index=232&type=chunk)

Call Start: 17:00 January 1, 0000 6:37 PM ET Alta Equipment Group Inc. (NYSE:ALTG) Q4 2021 Earnings Conference Call March 31, 2022, 5:00 PM ET Company Participants Ryan Greenawalt – Chairman and Chief Executive Officer Jason Dammeyer – Director Tony Colucci – Chief Financial Officer Conference Call Participants Alex Rygiel – B. Riley. Bryan Fast – Raymond James Matt Summerville – D.A. Davidson Operator Good afternoon. Thank you for attending today's Alta Equipment Group Fourth Quarter 2021 Earnings Confer ...

Financial Data and Key Metrics Changes - Net revenues increased by 33.7% year-over-year to $295 million, with adjusted EBITDA growth of 43.4% to $31.4 million [6][17] - Product support revenue, including parts and service sales, grew by 22.1% in the third quarter [6] - The company achieved a record sales quarter with total revenue of $295 million, and year-to-date revenue reached $857 million, aiming to exceed $1 billion for fiscal 2021 [17][22] Business Line Data and Key Metrics Changes - The construction segment's product support business grew by 15% on an organic basis, while the material handling segment's product support business grew by 5% [18] - Rental revenue saw organic growth of $4.3 million, or 15%, driven by higher utilization rates, which increased to approximately 70% from 65% at the end of Q2 [19][22] - The product support business realized $87 million in revenue for the quarter, achieving a 9% organic increase year-over-year [17] Market Data and Key Metrics Changes - Strong demand for new and used equipment, increased rental fleet utilization, and a growing need for replacement parts and services were noted due to favorable market conditions [8] - The Class 8 truck market averages around 250,000 units per year in the US, with a total value of approximately $30 billion, presenting significant opportunities for the company [27] Company Strategy and Development Direction - The company is focused on long-term strategic growth opportunities, including the e-mobility initiative with Nikola Motors, which is expected to roll out in the first half of 2022 [9][10] - Recent acquisitions, including Baron Industries and Gibson Machinery, are aimed at expanding warehousing and logistics capabilities and geographic reach [11][22] - The company is actively pursuing M&A opportunities to drive growth and support its long-term value strategy [12][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for continued success, citing strong demand across all business segments and the potential for infrastructure legislation to bolster demand [12][13] - The company does not foresee a normalization of demand, believing that any federal infrastructure stimulus will further increase demand for equipment [33] - Management highlighted the importance of maintaining technician headcount to support organic growth in the product support business [37] Other Important Information - The company has integrated acquisitions made since going public and maintains a solid balance sheet with approximately $290 million available on its line of credit [22] - The company has increased its fiscal year 2021 adjusted EBITDA guidance to a range of $113 million to $116 million due to strong year-to-date performance [28] Q&A Session Summary Question: Is there a potential for softness in equipment sales as the market normalizes? - Management does not anticipate normalization, believing that infrastructure spending will sustain demand [33] Question: Can you provide insights on backlog levels? - Backlogs remain historically high and stable, with no significant changes in lead times expected for over a year [35] Question: What is the pricing environment for new and used equipment? - Pricing for used equipment is peaking, and margins have been maintained despite rising costs from OEMs [41] Question: What is the outlook for M&A activity? - The company expects to be active in M&A markets, with a pipeline of potential deals and a target of approximately $15 million in annual EBITDA from acquisitions [50] Question: How is the company attracting technician talent? - The company is focused on building relationships with trade schools and community colleges, and has dedicated recruiters to source technical talent [54]

Alta Equipment Group Inc. (NYSE:ALTG) Q2 2021 Earnings Conference Call August 12, 2021 5:00 PM ET Company Participants Andrew Rundle - Director, Finance Ryan Greenawalt - Chairman and CEO Tony Colucci - Chief Financial Officer Conference Call Participants Min Cho - B. Riley Securities Bryan Fast - Raymond James Will Jellison - D.A. Davidson Operator Good day and thank you for standing by. And welcome to the Alta Equipment Group Second Quarter 2021 Earnings Call. At this time, all participants are in a liste ...