Alta Equipment (ALTG) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 decreased by $26.2 million year over year to $422.6 million, a decline of 5.8%[5] - The net loss available to common stockholders for the quarter was $(42.3) million, translating to a basic and diluted net loss per share of $(1.31)[5] - Adjusted EBITDA for Q3 2025 decreased by $1.5 million year over year to $41.7 million[5] - 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[24] - Gross profit for Q3 2025 was $117.8 million, down from $124.6 million in Q3 2024, reflecting a gross margin of 27.8%[23] - Rental revenues decreased to $48.4 million in Q3 2025, down 10.4% from $53.7 million in Q3 2024[23] - The company reported a basic loss per share of $1.31 for Q3 2025, compared to a loss of $0.86 per share in Q3 2024[23] - Total operating expenses for the nine months ended September 30, 2025, were $337.1 million, down from $361.0 million in 2024[23] - Adjusted EBITDA for the nine months ended September 30, 2025, is $123.8 million, slightly down from $127.6 million in 2024[26] - Basic net loss per share for the three months ended September 30, 2025, is $(1.31), compared to $(0.86) in the same period of 2024[26] Asset and Liability Management - Total assets as of September 30, 2025, were $1,431.0 million, a decrease from $1,480.4 million as of December 31, 2024[22] - Cash increased to $14.1 million from $13.4 million as of December 31, 2024[22] - Accounts receivable rose to $216.0 million, up from $199.7 million as of December 31, 2024[22] - Inventories decreased to $504.6 million from $535.9 million as of December 31, 2024[22] - Total current liabilities decreased to $542.7 million from $577.2 million as of December 31, 2024[22] - Long-term debt, net of current portion, increased slightly to $483.1 million from $480.0 million as of December 31, 2024[22] - The accumulated deficit increased to $(223.9) million from $(149.3) million as of December 31, 2024[22] - Total stockholders' equity decreased to $2.9 million from $77.6 million as of December 31, 2024[22] - Floor plan payable for new equipment decreased to $270.8 million from $293.4 million as of December 31, 2024[22] - Total debt as of September 30, 2025, is $1,116.2 million, an increase from $1,103.4 million as of December 31, 2024[26] Strategic Initiatives and Market Outlook - Construction Equipment segment revenues decreased by $20.7 million, primarily due to a deliberate fleet optimization strategy, resulting in a rental fleet size approximately $40 million below the prior year[4] - Product support revenues increased by 1.1% year over year to $141.7 million, with a gross profit percentage rising by 160 basis points to 47.2%[5] - The enactment of the One Big Beautiful Bill Act (OBBBA) is expected to positively impact future cash taxes and liquidity, as the company is now in a taxable loss position[9] - The company completed the divestiture of its Dock and Door division for $6.4 million, with $3.1 million received in cash at close[9] - The company projects Adjusted EBITDA for the full fiscal year 2025 to be between $168.0 million and $172.0 million[9] - DOT spending budgets in major U.S. markets are projected to rise by 6.0% in fiscal 2026, supporting infrastructure projects[4] - October 2025 was noted as the strongest month of the year for equipment sales, particularly in the Construction Equipment segment, indicating potential recovery[4] Cash Flow and Financing Activities - Cash provided by financing activities was $20.7 million for the nine months ended September 30, 2025, compared to $9.7 million in 2024[24] - Cash paid for interest in the nine months ended September 30, 2025, was $51.9 million, compared to $43.8 million in 2024[24] - Net cash used in investing activities was $19.3 million for the nine months ended September 30, 2025, compared to $48.0 million in 2024[24] Expense Management - Interest expense for the nine months ended September 30, 2025, is $66.6 million, up from $57.9 million in 2024[26] - Depreciation and amortization for the three months ended September 30, 2025, is $34.9 million, down from $37.8 million in 2024[26]