Alta Equipment (US:ALTG)2025-11-06 21:20Financial Performance - Total revenues for Q3 2025 were $422.6 million, a decrease of 5.8% compared to $448.8 million in Q3 2024[14] - Net loss for Q3 2025 was $41.6 million, compared to a net loss of $27.7 million in Q3 2024, representing a 50.3% increase in losses year-over-year[16] - Gross profit for the nine months ended September 30, 2025, was $355.1 million, down from $377.2 million in the same period of 2024, reflecting a decrease of 5.9%[14] - The company reported a basic loss per share of $1.31 for Q3 2025, compared to $0.86 for Q3 2024, indicating a significant increase in loss per share[14] - Net loss for the nine months ended September 30, 2025, was $68.6 million, compared to a net loss of $51.5 million for the same period in 2024, indicating a year-over-year increase in losses of approximately 33.8%[22] Assets and Liabilities - Total assets as of September 30, 2025, were $1,431.0 million, a decrease from $1,480.4 million as of December 31, 2024[13] - Total liabilities increased to $1,428.1 million as of September 30, 2025, compared to $1,402.8 million at the end of 2024[13] - The total stockholders' equity as of September 30, 2025, is $2.9 million, a decrease from $43.9 million at June 30, 2025[19] - The accumulated deficit increased to $223.9 million as of September 30, 2025, from $181.6 million at June 30, 2025[19] Cash and Cash Equivalents - Cash and cash equivalents increased to $14.1 million as of September 30, 2025, up from $13.4 million at the end of 2024[13] - Total cash at the end of the period on September 30, 2025, was $14.1 million, compared to $14.6 million at the end of the same period in 2024[22] Expenses - Selling, general and administrative expenses for Q3 2025 were $105.9 million, a slight decrease from $110.6 million in Q3 2024[14] - Depreciation and amortization expenses for the nine months ended September 30, 2025, were $101.9 million, slightly down from $109.8 million in 2024[22] - Cash paid for interest increased to $51.9 million in 2025 from $43.8 million in 2024, representing an increase of 18.4%[22] Revenue Breakdown - New and used equipment sales for the three months ended September 30, 2025, were $211.1 million, down from $219.8 million in 2024, representing a decline of 3.1%[34] - Service revenues increased to $66.4 million for the three months ended September 30, 2025, compared to $64.6 million in 2024, reflecting a growth of 2.8%[34] - The Company recognized $17.0 million in project-based revenues for the three months ended September 30, 2025, compared to $13.1 million in 2024, marking a growth of 29.8%[38] Debt and Financing - Total debt and finance leases increased to $756.6 million as of September 30, 2025, from $705.8 million as of December 31, 2024, an increase of about 7.2%[63] - The Company was in compliance with all financial covenants set forth in its debt agreements as of September 30, 2025[63] - The effective interest rate on the ABL Facility was 5.8% as of September 30, 2025, down from 6.2% at the end of 2024[58] Divestitures - The Company divested its aerial fleet rental business for $18.0 million, resulting in a gain of $4.3 million[96] - The divestiture of the Dock and Door business generated $6.4 million, with a gain of $0.4 million recognized[97] Operating Segments - The Company has three operating segments: Material Handling, Construction Equipment, and Master Distribution, with performance evaluated using Adjusted EBITDA[99] - The Material Handling segment operates in several U.S. states and Canada, focusing on the sale, service, and rental of lift trucks and material handling equipment[100] - The Construction Equipment segment is engaged in the sale, service, and rental of construction equipment across multiple U.S. states and Canada[101] Taxation - The Company recognized income tax expense of $24.4 million for the three months ended September 30, 2025, significantly higher than the $11.6 million recognized in the same period of 2024[74] - The effective tax rate for the nine months ended September 30, 2025, was (62.6)%, compared to (10.0)% for the same period in 2024[78]