Alta Equipment Group Announces Second Quarter 2024 Financial Results

Financial Performance - Total revenues increased by $19.7 million year over year to $488.1 million, with Construction Equipment revenues at $294.9 million and Material Handling revenues at $175.6 million [1] - Product support revenues rose by 10.1% year over year, with Parts sales increasing to $78.0 million and Service revenues increasing to $66.2 million [1] - New and used equipment sales decreased by 1.2% year over year to $251.5 million [1] - The company reported a net loss available to common stockholders of $(12.6) million, with a basic and diluted net loss per share of $(0.38) [1] - Adjusted EBITDA was $50.3 million [1] CEO Insights - The CEO noted a rebound in business from the first quarter, with product support achieving record revenues of $144.2 million, an increase of $13.2 million from the previous year [2] - The Material Handling segment continued to grow profitably, executing on a solid sales backlog and gaining market share [2] - The eMobility segment gained traction, with a sales backlog of approximately $25 million expected to convert to revenues in the second half of 2024 [2] - The CEO emphasized the importance of cost and fleet optimization as the company navigates a transitioning market environment [2] Financial Guidance - The company updated its guidance, expecting to report Adjusted EBITDA between $190.0 million and $200.0 million for the fiscal year 2024 [3] Debt Management - On June 5, 2024, the company sold $500.0 million of Senior Secured Second Lien Notes at a rate of 9.000% per annum, due June 1, 2029, and used the proceeds to extinguish $315.0 million of Senior Secured Second Lien Notes due April 2026 [4] - The company also amended its ABL First Lien Credit Agreement to extend the maturity date to 2029 and increase the facility size to $520.0 million [4] Operational Metrics - The company repurchased 231,334 shares for $2.0 million, with a remaining repurchase authorization of $10.5 million [4] - Total current assets were reported at $835.9 million, with total assets amounting to $1,591.3 million [18][19]