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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38864 ALTA EQUIPMENT GROUP INC. (Exact name of Registrant as specified in its Charter) Delaware 83-2583782 (State or other jurisdicti ...

Financial Data and Key Metrics Changes - Total revenue increased by 37.3% to $405 million for Q3 2022, with year-to-date revenue reaching $1.1 billion, matching the total revenue for the full year 2021 [10][20] - Adjusted EBITDA grew by 39.2% to $44 million compared to Q3 2021, with year-to-date adjusted EBITDA at $115.4 million, a 39% increase from the previous year [11][24] - GAAP net income for the quarter was $4.4 million, marking a positive shift from a loss in the previous year [10][25] Business Line Data and Key Metrics Changes - The Product Support business saw strong organic growth, with parts and service revenues reaching a record $116 million, nearly tripling from approximately $40 million per quarter in 2019 [21][22] - Material Handling segment experienced a 17.3% organic growth, while the Construction segment saw a 15.8% increase year-over-year [21] - Rental revenue grew by 12.5% due to increased rental rates and physical utilization [23] Market Data and Key Metrics Changes - The company noted a stable demand for parts and service, with sales backlogs at record levels, driven by supply chain challenges and high demand for equipment [11][12] - The tight labor market is pushing companies to adopt integrated and automated material handling solutions, which is expected to positively impact the business [12] Company Strategy and Development Direction - The company has completed 13 acquisitions since going public in 2020, representing total revenue of $440 million, indicating a strong commitment to an acquisitive growth strategy [13] - The acquisition of Ecoverse Industries positions the company as a leader in the eco-friendly waste solutions market, which is expected to provide significant growth opportunities [15][16] - The company is focusing on e-mobility and leveraging its platform to capitalize on emerging market trends [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial performance and significant opportunities for growth in 2023, despite macroeconomic challenges [17][30] - The company anticipates continued demand for equipment and strong performance in parts and service through the end of the year [30] Other Important Information - The company has increased its 2022 adjusted EBITDA guidance to a range of $155 million to $158 million, up from a previous range of $147 million to $152 million [29] - The balance sheet remains strong with approximately $270 million in cash and liquidity, and total leverage at 3.3x adjusted pro forma EBITDA [25] Q&A Session Summary Question: Can you discuss the total addressable market and long-term organic growth in the waste and recycling market? - Management indicated that the U.S. market is in its early stages, with significant growth potential as it catches up to Western Europe, and they do not foresee the need for further acquisitions to participate in this growth [34] Question: What are the key end markets driving demand for equipment and parts? - Management noted that there has been no increase in cancellations of equipment orders, with strong demand across various sectors including automotive, grocery, and logistics [39] Question: How has the hurricane impacted the business? - Management reported an immaterial impact from the hurricane in Q3, with expectations that the cleanup efforts could actually drive more demand for equipment [46] Question: What is the outlook for the rental business in Q4? - Management acknowledged a seasonal fade in rental revenue due to colder weather but expects the impact to be less significant due to diversification and recent acquisitions [47] Question: Can you provide an update on Ecoverse and its integration? - Management confirmed that Ecoverse is expected to contribute positively, with a focus on building out service offerings and navigating infrastructure needs for battery electric vehicles [51]

Financial Data and Key Metrics Changes - The company reported record total net revenues of $406.5 million, an increase of 38.9% or $113.8 million compared to $292.7 million in the second quarter of the previous year [7][17] - Adjusted EBITDA was $41.4 million for the quarter, up 28.2% or $9.1 million from the second quarter of 2021 [20] - GAAP net income for the quarter was $5.4 million, with both segments contributing to profitability [21] Business Line Data and Key Metrics Changes - The material handling segment saw a 15.9% organic growth, while the construction segment experienced a 9.6% increase year-over-year [18] - Parts and service revenues reached $110 million for the quarter, marking a new record [19] - The rental business achieved double-digit organic growth of 10.2%, driven by increasing rental rates and improved fleet utilization [19] Market Data and Key Metrics Changes - Demand for both new and used equipment remains high, with sales backlogs at record levels [9] - The passing of the Bipartisan Infrastructure Bill is expected to drive further demand for construction machinery in 2023 and beyond [9] - The Canadian market expansion is projected to increase annualized deliveries from over 50,000 to over 70,000 industrial trucks, enhancing market coverage by 40% [11] Company Strategy and Development Direction - The company is focused on a multi-pronged growth strategy, including M&A activities, with the recent acquisition of Yale Industrial Trucks Inc. in Canada [10] - The strategy aims to increase scale and establish a presence in international markets, while also enhancing product offerings and services [11][12] - The company plans to pay a regular quarterly dividend and implement a share repurchase program, indicating a balanced approach to capital allocation [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand across all end-user markets, despite concerns over a potential recession [8] - The company anticipates continued strong performance in parts, service, and rental segments for the second half of the year [28] - There is cautious optimism regarding the supply chain, with variability expected but overall positive trends in equipment deliveries [59] Other Important Information - The company ended the quarter with $273 million in unsuppressed availability on its revolving line of credit, maintaining a leverage ratio of 3.5 times adjusted pro forma EBITDA [22] - The company has increased its 2022 adjusted EBITDA guidance to a range of $147 million to $152 million, reflecting strong second-quarter results and expectations for continued demand [28] Q&A Session Summary Question: How does the global supply chain imbalance affect the business? - Management believes that the demand recorded in Q2 2022 was not a pull forward but rather a reflection of existing demand finally being met by supply [32] Question: How is the company managing labor tightness? - The company is focused on recruiting skilled trades and improving retention, particularly in administrative roles, to navigate the tight labor market [34][35] Question: Are acquisition multiples increasing? - While some asset-light businesses are seeing higher multiples, the company remains selective and has a robust pipeline, allowing it to pass on deals that are too expensive [36][38] Question: What is the strength of the backlog? - The backlog remains tight, with healthy demand and visibility for continued growth, despite potential variability in supply [42][43] Question: How is the company addressing the impact of Amazon's slowdown on its business? - The company has not seen a significant impact, as most of its work involves automating existing facilities rather than new builds [53]

Alta Equipment Group Inc. (NYSE:ALTG) Q1 2022 Earnings Conference Call May 11, 2022 5:00 PM ET Company Participants Jason Dammeyer - Director of SEC Reporting and Technical Accounting Ryan Greenawalt - Chairman and Chief Executive Officer Tony Colucci - Chief Financial Officer Conference Call Participants Will Jellison - D.A. Davidson Alex Rygiel - B. Riley Bryan Fast - Raymond James Operator Good afternoon and thank you for attending the Alta Equipment Group First Quarter 2022 Earnings Conference Call. My ...