Alta Equipment (ALTG) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for 2024 decreased 4.5% year over year to $498.1 million, with construction and material handling revenues at $318.6 million and $168.6 million, respectively[4]. - Net loss available to common stockholders for 2024 was $(65.1) million, compared to a net income of $5.9 million in 2023, resulting in a basic and diluted net loss per share of $(1.96) compared to $0.18 in 2023[4]. - Adjusted EBITDA for 2024 decreased 12.1% to $168.3 million from $191.4 million in 2023[4]. - New and used equipment sales decreased 3.8% to $987.0 million for the full year 2024[4]. - Total revenues for 2024 were $1,876.6 million, slightly down from $1,876.8 million in 2023, representing a decrease of 0.01%[22]. - Net loss for 2024 was $62.1 million, compared to a net income of $8.9 million in 2023, indicating a significant decline in profitability[22]. - Gross profit for 2024 was $493.7 million, down from $507.2 million in 2023, reflecting a decrease of 2.8%[22]. - Operating income fell to $18.6 million in 2024 from $54.4 million in 2023, a decline of 65.8%[22]. - Cash provided by operating activities was $57.0 million in 2024, slightly down from $58.4 million in 2023[24]. - Cash paid for interest increased to $76.4 million in 2024 from $53.6 million in 2023, indicating higher financing costs[24]. - Total cost of revenues for 2024 was $1,382.9 million, up from $1,369.6 million in 2023, an increase of 1.5%[22]. - The company ended 2024 with cash of $13.4 million, down from $31.0 million at the end of 2023[24]. - Total debt increased to $1,103.4 million in 2024 from $1,068.6 million in 2023, representing a rise of 3.0%[26]. - Adjusted total net debt and floor plan payables reached $796.6 million in 2024, up from $739.8 million in 2023, an increase of 7.7%[26]. - The company incurred interest expenses of $81.3 million for the year ended December 31, 2024, up from $57.0 million in 2023, an increase of 42.6%[26]. - Depreciation and amortization expenses were $144.5 million for the year ended December 31, 2024, compared to $132.6 million in 2023, reflecting a rise of 9.0%[26]. Revenue Segments - Product support revenues increased 5.5% year over year, with parts sales rising to $294.4 million and service revenues increasing to $253.8 million[5]. - The material handling segment showed resilience with revenues of $687.4 million, a slight increase from the previous year[5]. - Equipment volumes in some regional markets were down approximately 10% to 20% year over year, impacting gross margins and market share in the construction segment[4]. Shareholder Returns - The company returned $13.6 million to shareholders in 2024 despite a challenging business climate[5]. Assets and Liabilities - Total assets decreased from $1,570.9 million in 2023 to $1,480.4 million in 2024, a decline of approximately 5.7%[20]. - Cash reserves fell from $31.0 million in 2023 to $13.4 million in 2024, representing a decrease of about 56.5%[20]. - Accounts receivable decreased from $249.3 million in 2023 to $199.7 million in 2024, a reduction of approximately 20%[20]. - Total current liabilities decreased from $635.1 million in 2023 to $577.2 million in 2024, a decline of about 9.1%[20]. - Long-term debt increased from $312.3 million in 2023 to $480.0 million in 2024, an increase of approximately 53.7%[20]. - The accumulated deficit grew from $76.4 million in 2023 to $149.3 million in 2024, an increase of about 95.3%[20]. Future Outlook - The company expects to report Adjusted EBITDA between $175.0 million and $190.0 million for the 2025 fiscal year[6]. - Future outlook includes addressing supply chain disruptions and labor market dynamics that may impact financial performance[14]. - The company emphasizes the importance of innovation and market expansion as part of its growth strategy[14]. Market Performance - The company achieved organic growth in product support for the fifth consecutive year since going public, demonstrating the strength of its dealership model[5]. - Net loss available to common stockholders was $(11.4) million for Q4 2024, compared to a loss of $(2.7) million in Q4 2023[26]. - EBITDA for the year ended December 31, 2024, was $156.5 million, down 17.3% from $189.1 million in 2023[26]. - Adjusted EBITDA for the year ended December 31, 2024, was $168.3 million, a decrease of 12.1% from $191.4 million in 2023[26]. - Basic net loss per share was $(0.34) for Q4 2024, compared to $(0.08) in Q4 2023[26]. - Diluted net loss per share was also $(0.34) for Q4 2024, consistent with the basic loss per share[26]. - The company reported a loss on auction sale of $2.8 million in Q4 2024, indicating challenges in the used and rental equipment market[26].