Alta Equipment Group Inc (NYSE:ALTG) Q3 2023 Earnings Conference Call November 8, 2023 5:00 PM ET Company Participants Jason Dammeyer - Investor Relations Ryan Greenawalt - Chairman and Chief Executive Officer Tony Colucci - Chief Financial Officer Conference Call Participants Alex Rygiel - B. Riley Matt Summerville - D.A. Davidson Steve Hansen - Raymond James Ted Jackson - Northland Securities Steve Ramsey - Thompson Research Group Operator Good afternoon and thank you for attending the Alta Equipment Grou ...

Financial Performance - Total revenue increased by 15.1% to $466.2 million compared to Q3 2022[10] - New and Used Equipment Sales Grew 20.7% to $253.6 million[10] - Adjusted EBITDA Grew 15.9% to $51.0 million compared to $44.0 million last year[10] - YTD Economic EBIT increased 15.3% or $12.7 million, from $82.7 million to $95.4 million[10] - Consolidated organic revenue grew $37.9 million, or 9.5%[29] - Revenue grew 18.6% to $1,355.3 million YTD; Organic revenue grew by $120.8 million or 10.6%[30] Market and Growth Strategy - M&A activity since public offering added $537 million in total revenue value and $65 million in EBITDA at accretive valuation multiples[16] - The company initiated a share repurchase program in July 2022[46] Balance Sheet and Liquidity - Uncapped Liquidity of $207 million as of September 30, 2023[36] - $305 million outstanding balance under $485 million ABL facility as of September 30, 2023[36] FY2023 Guidance - Increased FY2023 Adjusted EBITDA guidance from $180.0 - $188.0 million to $187.0 - $192.0 million[51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ALTA EQUIPMENT GROUP INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) | --- | --- | |----------------|-----------------------| | ...

Financial Data and Key Metrics Changes - Total revenue increased by 15.2% to $468.4 million, a record for the company, driven by Construction revenue of $281.5 million and Material Handling revenue of $169.1 million [8][22] - Adjusted EBITDA grew by 20.5% to $49.9 million compared to the previous year [8][24] - Organic revenue growth year-to-date was reported at 11.2% [8] Business Line Data and Key Metrics Changes - Construction Equipment segment benefited from high non-residential demand and federal infrastructure spending, with significant growth in Florida operations [12] - Material Handling segment saw organic growth in parts and service departments, with increases of 12% and 10% year-over-year respectively [23] - The newly created Master Distribution segment contributed $21.4 million in revenue, with the e-Mobility business generating $3.1 million from Nikola's TRE BEV tractors [8][13] Market Data and Key Metrics Changes - Positive trends were noted across major end-user markets in the Material Handling segment, including manufacturing and automotive [10] - Demand for heavy equipment in Florida, particularly articulated hauler trucks and excavators, saw double-digit growth year-over-year [12] - Federal initiatives are expected to extend the cycle with approximately $1 trillion estimated over the next decade for infrastructure projects [16] Company Strategy and Development Direction - The company aims to drive long-term equipment field population and aftermarket support penetration [9] - A disciplined approach to M&A is maintained, with a strong pipeline for accretive acquisitions [17] - The strategy includes expanding dealership networks and entering new end-user markets, particularly in Eastern Canada and the southern U.S. [17][76] Management's Comments on Operating Environment and Future Outlook - Management expressed strong customer sentiment for the remainder of the year, with supply chain constraints easing [16] - The company anticipates continued growth in the e-Mobility sector, particularly with Nikola's products [14][71] - Management remains optimistic about the recycling equipment market, projecting significant growth driven by sustainability trends [13] Other Important Information - The company successfully amended its credit agreements, increasing its ABL facility to $485 million, with additional expansion options available [30][31] - The secondary common stock offering closed in July, increasing liquidity and float in the stock [32] Q&A Session Summary Question: Rental utilization rates and pricing trends - Management noted that rental utilization rates have flattened as the fleet has grown, but they remain optimistic about customer sentiment [34][36] - Rental rates have increased by 6% year-over-year, with expectations for moderation in growth rates [37] Question: Organic growth from recent acquisitions - Management indicated that both Yale Industrial and Ecoverse are expected to contribute to organic growth, with significant opportunities in Eastern Canada [38][41] Question: M&A pipeline activity - Management confirmed that the M&A pipeline remains active, with no change in valuation expectations despite recent transaction inactivity [46][48] Question: Order activity and backlog - Management reported a strong backlog extending into 2024, with some product categories still facing lead time challenges [49][51] Question: Inventory and CapEx outlook - Management expects inventory levels to normalize over the next 12 to 18 months, with a focus on maintaining efficient turnover rates [56][64] Question: Nikola's revenue contribution and growth outlook - Revenue from Nikola is currently reported in the corporate segment, with expectations for incremental growth as retail deliveries increase [66][71]

EARNINGS PRESENTATION SECOND QUARTER 2023 LEGAL DISCLAIMERS Forward-LookingInformation Thispresentationincludes“forward-lookingstatements”withinthemeaningofthe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995.Alta’sactualresultsmay differfromtheirexpectations,estimatesandprojectionsandconsequently,youshouldnotrelyontheseforward-lookingstatementsaspredictionsoffutureevents.Wordssuchas“expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “cou ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ALTA EQUIPMENT GROUP INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) | --- | --- | |----------------|-----------------------| | | | | ...

Alta Equipment Group Inc. (NYSE:ALTG) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET Company Participants Jason Dammeyer - Director-SEC Reporting & Technical Accounting Ryan Greenawalt - Chairman & Chief Executive Officer Tony Colucci - Chief Financial Officer Conference Call Participants Will Jellison - DA Davidson Alex Rygiel - B. Riley Ted Jackson - Northland Securities Bryan Fast - Raymond James Operator Good afternoon, and thank you for attending today's Alta Equipment Group First Quarter 202 ...

EARNINGS PRESENTATION FIRST QUARTER 2023 May 10, 2023 LEGAL DISCLAIMERS Forward-Looking Information This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Alta's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Total revenues increased by **26.8%** to **$420.7 million**, resulting in **$0.2 million** net income, while total assets grew to **$1,376.8 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in millions) | (in millions) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $729.5 | $663.3 | | **Total Assets** | **$1,376.8** | **$1,290.6** | | **Total Current Liabilities** | $525.8 | $471.2 | | **Total Liabilities** | $1,238.7 | $1,150.8 | | **Total Stockholders' Equity** | **$138.1** | **$139.8** | - Total assets increased to **$1,376.8 million** as of March 31, 2023, from **$1,290.6 million** at the end of 2022, primarily driven by a significant increase in net inventories, which rose from **$399.7 million** to **$469.1 million**[11](index=11&type=chunk) - Total liabilities rose to **$1,238.7 million** from **$1,150.8 million**, largely due to increases in floor plan payables (from **$256.8 million** to **$314.8 million**) and the line of credit (from **$217.5 million** to **$256.0 million**)[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in millions, except per share) | (in millions, except per share) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$420.7** | **$331.7** | | **Gross Profit** | $121.3 | $91.4 | | **Income from Operations** | $12.1 | $4.6 | | **Net Income (Loss)** | $1.0 | ($1.2) | | **Net Income (Loss) to Common Stockholders** | **$0.2** | **($2.0)** | | **Diluted EPS** | **$0.01** | **($0.06)** | - Total revenues increased by **26.8%** year-over-year, driven by strong growth in new and used equipment sales, which rose **44.9%** to **$219.6 million**[14](index=14&type=chunk) - The company swung to a net income of **$1.0 million** in Q1 2023 from a net loss of **$1.2 million** in Q1 2022, reflecting higher revenues and improved gross profit[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in millions) | (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **($20.1)** | **($6.7)** | | **Net cash used in investing activities** | ($18.9) | ($18.6) | | **Net cash provided by financing activities** | $37.9 | $24.6 | | **Net change in cash** | ($1.0) | ($0.7) | - Net cash used in operating activities increased to **$20.1 million**, primarily due to a **$114.3 million** increase in inventories, partially offset by a **$57.0 million** increase in manufacturers floor plans payable[23](index=23&type=chunk) - Financing activities provided **$37.9 million** in cash, mainly from **$97.0 million** in proceeds from line of credit and long-term borrowings, used to fund working capital needs and acquisitions[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - On March 1, 2023, the company acquired the assets of M&G Materials Handling Co. ("M&G"), a Yale dealer in Rhode Island, for a purchase price of **$2.3 million**[101](index=101&type=chunk) Segment Assets (in millions) | (in millions) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Material Handling** | $446.5 | $416.3 | | **Construction Equipment** | $829.9 | $775.5 | | **Master Distribution** | $81.2 | $77.6 | | **Corporate and Other** | $19.2 | $21.2 | | **Total assets** | **$1,376.8** | **$1,290.6** | - The company began separately reporting Master Distribution as a new segment in the first quarter of 2023, following the acquisition of Ecoverse in late 2022. Financial data for 2022 has been recast to reflect this change[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated revenues grew **26.8%** with **16.2%** organic growth, improving gross profit margin to **28.8%** and maintaining solid liquidity [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Consolidated Results of Operations (Q1 2023 vs Q1 2022, in millions) | (in millions) | Q1 2023 | Q1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$420.7** | **$331.7** | **26.8%** | | New and used equipment sales | $219.6 | $151.6 | 44.9% | | Parts sales | $68.4 | $53.4 | 28.1% | | Service revenue | $60.2 | $48.2 | 24.9% | | **Gross Profit** | **$121.3** | **$91.4** | **32.7%** | | **Income from Operations** | $12.1 | $4.6 | 163.0% | | **Net Income (Loss)** | $1.0 | ($1.2) | (183.3%) | Organic Revenue Growth Reconciliation (Q1 2023, in millions) | (in millions) | Total Revenues | Acquisitions Revenues | Total Organic Revenues | Organic Growth (%) | | :--- | :--- | :--- | :--- | :--- | | **Q1 2023** | **$420.7** | **$35.4** | **$385.3** | **16.2%** | - Consolidated gross profit margin increased by **120 basis points** to **28.8%** in Q1 2023 from **27.6%** in Q1 2022, driven by a favorable pricing environment and a higher margin on rental equipment sales[144](index=144&type=chunk) [Segment Results](index=32&type=section&id=Segment%20Results) - **Material Handling** revenues grew **31.2%** to **$164.8 million**, with organic growth of **21.2%**, resulting in **$5.1 million** income before taxes[148](index=148&type=chunk)[150](index=150&type=chunk) - **Construction Equipment** revenues increased **13.1%** to **$233.1 million** entirely from organic growth, reporting a loss before taxes of **$1.6 million**, an improvement from the prior year[154](index=154&type=chunk)[156](index=156&type=chunk) - **Master Distribution**, a new segment from the Q4 2022 Ecoverse acquisition, generated **$26.7 million** in revenue and **$3.4 million** in income before taxes in its first full quarter[161](index=161&type=chunk)[162](index=162&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's principal sources of liquidity are cash from operations, debt issuance, and borrowings under its line of credit and floor plans[171](index=171&type=chunk) - Net cash used in operating activities was **$20.1 million** for Q1 2023, compared to **$6.7 million** in Q1 2022, primarily due to a seasonal build of new equipment inventory[166](index=166&type=chunk)[167](index=167&type=chunk) - As of March 31, 2023, **$229.4 million** of available borrowings under revolving line of credit and floor plan facilities are deemed adequate for future liquidity needs[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are interest rate and foreign currency, with a **1%** rate increase potentially reducing pre-tax earnings by **$1.7 million** - The company is exposed to interest rate risk on its ABL Facility and Floor Plan Facilities, which are based on floating rates like SOFR[178](index=178&type=chunk) - As of March 31, 2023, a **1%** increase in interest rates on variable rate debt would reduce annual pre-tax earnings by **$1.7 million**, net of hedging impacts[179](index=179&type=chunk) - Foreign currency risk exists due to operations in Canada, affecting revenues and expenses denominated in Canadian dollars and European currencies, with forward contracts used to hedge a portion of this exposure[180](index=180&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective due to an un-remediated material weakness in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of March 31, 2023, due to a material weakness in internal control over financial reporting[182](index=182&type=chunk) - The material weakness relates to the sales process and was previously disclosed in the 2022 Annual Report on Form 10-K[182](index=182&type=chunk) - A remediation plan is underway, focusing on training, system enhancements, and implementing regular management monitoring controls, with remediation considered complete once these controls operate effectively for a sufficient period[184](index=184&type=chunk)[185](index=185&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings beyond 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 incidental to the business[189](index=189&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from those disclosed in the prior year's Annual Report on Form 10-K - No material changes have occurred from the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022[190](index=190&type=chunk)

Alta Equipment Group Inc. (NYSE:ALTG) Q4 2022 Earnings Conference Call March 9, 2023 5:00 PM ET Company Participants Jason Dammeyer - Director of SEC Reporting & Technical Accounting Ryan Greenawalt - Chairman and CEO Tony Colucci - CFO Conference Call Participants Alex Rygiel - B. Riley Will Jellison - DA Davidson Ted Jackson - Northland Securities Bryan Fast - Raymond James Operator Good afternoon, and thank you for attending the Alta Equipment Group Fourth Quarter and Full Year 2022 Earnings Conference C ...