Alta Equipment (ALTG)2024-11-12 21:16Revenue Performance - Total revenues for the three months ended September 30, 2024, were $448.8 million, a decrease of 3.2% compared to $466.2 million in the same period of 2023[9]. - New and used equipment sales decreased to $219.8 million in Q3 2024 from $253.6 million in Q3 2023, representing a decline of 13.3%[9]. - Parts sales increased to $75.6 million in Q3 2024, up 8.8% from $69.5 million in Q3 2023[9]. - Service revenues rose to $64.6 million in Q3 2024, an increase of 6.6% compared to $60.6 million in Q3 2023[9]. - Total revenues for the nine months ended September 30, 2024, were $448.8 million, compared to $466.2 million for the same period in 2023, reflecting a decrease of approximately 3.2%[27]. - Total revenues for the nine months ended September 30, 2024, were $1,355.3 million, a decrease of 1.7% compared to $1,378.5 million for the same period in 2023[81]. Profitability and Loss - Net loss for the three months ended September 30, 2024, was $27.7 million, compared to net income of $7.4 million in the same period of 2023[12]. - Basic loss per share for Q3 2024 was $(0.86), compared to earnings of $0.21 per share in Q3 2023[9]. - Comprehensive loss income for Q3 2024 was $(28.7) million, compared to $7.0 million in Q3 2023[12]. - The company reported a net loss of $11.9 million for the nine months ended September 30, 2024[13]. - The net loss for the nine months ended September 30, 2024, was $51.5 million, compared to a net income of $10.8 million for the same period in 2023[16]. Expenses and Costs - Total cost of revenues for Q3 2024 was $324.2 million, down from $340.1 million in Q3 2023, a decrease of 4.3%[9]. - Gross profit for the three months ended September 30, 2024, was $124.6 million, slightly down from $126.1 million in Q3 2023[9]. - The company reported an increase in general and administrative expenses to $110.6 million in Q3 2024, up from $106.8 million in Q3 2023[9]. - Operating expenses increased by $5.6 million to $117.8 million for the three months ended September 30, 2024, primarily driven by the full period impact from 2023 acquisitions[98]. - The company reported depreciation and amortization expenses of $109.8 million for the nine months ended September 30, 2024, up from $96.1 million in the prior year[16]. Cash Flow and Liquidity - Net cash provided by operating activities was $22.1 million, a significant improvement from a net cash used of $23.1 million in the prior year[16]. - The cash balance at the end of the period was $14.6 million, down from $31.0 million at the beginning of the year[16]. - The company experienced a net cash used in investing activities of $48.0 million, an improvement from $56.9 million in the prior year[16]. - Cash used in investing activities was $48.0 million for the nine months ended September 30, 2024, primarily due to $59.2 million in purchases of rental equipment[116]. - Cash provided by financing activities was $9.7 million for the nine months ended September 30, 2024, mainly due to $353.5 million of net proceeds from the line of credit and long-term borrowings[116]. Equity and Stockholder Information - Total stockholders' equity at June 30, 2024, was $125.2 million, down from $240.7 million at March 31, 2024, reflecting a net loss of $27.7 million for the quarter[13]. - Preferred stock dividends amounted to $0.625 per share, totaling $0.7 million for the quarter ended June 30, 2024[13]. - Common stock dividends and equivalents on stock-based compensation were $0.057 per share, resulting in a total of $2.0 million for the quarter ended June 30, 2024[13]. - The balance of accumulated deficit increased to $136.0 million as of September 30, 2024, compared to $91.0 million at June 30, 2024[13]. - The total number of common shares outstanding increased to 33,092,441 as of September 30, 2024, from 32,950,141 at June 30, 2024[13]. Segment Performance - Total revenues for the Company in the latest quarter amounted to $448.8 million, with Material Handling segment contributing $168.9 million and Construction Equipment segment contributing $262.3 million[78]. - The Company reported a loss before taxes of $16.1 million for the latest quarter, with the Construction Equipment segment showing a loss of $10.8 million[78]. - Material Handling segment revenues increased by $0.3 million to $168.9 million for Q3 2024, reflecting a flat performance in new and used equipment sales[103]. - Construction Equipment segment revenues increased by $16.2 million to $812.8 million for the nine months ended September 30, 2024, primarily due to acquisitions[109]. Strategic Initiatives - The company is pursuing a strategy focused on the distribution and powering of commercial electric vehicles, indicating a shift towards electromobility[85]. - Recent strategic acquisitions, including Ault and Burris, are expected to enhance geographic reach and service offerings, contributing positively to financial performance[87]. - The company expects its hydrogen production plant to become operational in the first six months of 2025, with a total investment of $5.3 million to date[36]. Debt and Financing - The total debt and finance leases amounted to $722.7 million as of September 30, 2024, compared to $667.0 million on December 31, 2023[49]. - The Company issued $500.0 million in Senior Secured Second Lien Notes at a rate of 9.000% per annum, due June 1, 2029, with outstanding borrowings of $478.7 million as of September 30, 2024[47]. - The Company had $200.6 million and $396.4 million outstanding borrowings under the ABL Facility and Floor Plan Facilities, respectively, as of September 30, 2024[121].