LIVONIA, Mich., April 23, 2025 (GLOBE NEWSWIRE) -- Alta Equipment Group Inc. (NYSE: ALTG) (“Alta” or “the Company”), a leading provider of premium material handling, construction and environmental processing equipment and related services, today announced that it will report its financial results for the first quarter ended March 31, 2025, after the U.S. markets close on Wednesday, May 7, 2025. In conjunction with this announcement, Alta management will host a conference call and webcast that afternoon at 5 ...

EARNINGS PRESENTATION FOURTH QUARTER AND FULL YEAR 2024 March 5, 2025 LEGAL DISCLAIMERS Forward-Looking Information This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Alta's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "proj ...

Financial Data and Key Metrics Changes - For the full year 2024, total revenue remained steady at approximately $1.9 billion, indicating resilience in the dealership model despite market challenges [10] - In Q4 2024, revenue declined 4.5% year-over-year to $498.1 million, but showed sequential growth compared to Q3, suggesting a post-election rebound [11][31] - Adjusted EBITDA for 2024 reached $168.3 million, down from $201 million in 2023, reflecting a $33 million gap primarily due to reduced equipment sales and margin compression [36][37] Business Segment Data and Key Metrics Changes - In the construction equipment segment, new and used equipment sales saw a 10.2% organic decline, while organic product support revenues increased by 3.7% year-over-year [15] - The material handling segment's revenue remained stable at $687.4 million for the year, a 0.9% increase from 2023, supported by product support growth [19] - The electric vehicle segment continues to see steady momentum, particularly in hydrogen-powered fleets, despite challenges in charging infrastructure [22] Market Data and Key Metrics Changes - The construction equipment sector faced challenges due to oversupply and tightening credit conditions, with significant regional variations in sales performance [13][14] - The North American lift truck market experienced a decline in new order bookings, impacting future sales velocity [18] - The backlog of federal infrastructure spending under the IIJA program remains a long-term catalyst for growth [15] Company Strategy and Development Direction - The company is focused on operational efficiency, disciplined capital allocation, and strategic growth through M&A, prioritizing high-margin recurring business lines [24][26] - The rent-to-sell strategy is emphasized as a critical tool for optimizing fleet utilization and balance sheet efficiency [17] - The company aims to enhance profitability through cost optimization and improving fleet utilization [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a complex macroeconomic environment in 2024 but expressed confidence in the company's diversified business model to navigate market volatility [8][10] - The outlook for 2025 includes expectations for improved EBITDA driven by better volumes in material handling and product support revenues [40][42] - Management remains cautious about the impact of macroeconomic factors on future performance, particularly regarding inflation and interest rates [44] Other Important Information - The company successfully raised $500 million in senior second lien bonds to refinance senior debt and extend maturities to 2029, enhancing liquidity [12] - The company ended 2024 with approximately $330 million in cash and availability on a revolving line of credit, providing a comfortable liquidity position [38] Q&A Session Summary Question: What are the underlying assumptions for equipment sales volume in the guidance? - Management indicated that the guidance does not assume aggressive growth in equipment sales, particularly in the construction segment, but expects to regain market share as supply overhang diminishes [60][62] Question: How should immediate actions be prioritized to lower balance sheet leverage? - Management plans to use cash flows to pay down debt and does not intend to grow the fleet in the near term, which should help improve the leverage ratio [66][68] Question: What efficiency measures have been implemented in product support operating expenses? - Management noted that initial cost-cutting measures have been completed, with further efficiency gains expected from technician productivity improvements in 2025 [74][76] Question: What is the outlook for the warehouse solutions business? - Management expressed optimism about returning to previous peak levels within the next 12 months, driven by organic growth and market trends favoring automation [80][82]

Market Performance - North American construction equipment market sales declined by approximately 10% in 2024, with some regions experiencing reductions of up to 20%[144] - Volvo Construction Equipment reported a 20% decline in North American sales, attributed to slowing end-user demand and elevated inventory levels[144] - North American rental utilization rates began to recede in 2024, leading to a $46.0 million reduction in rental fleet gross cost, totaling $571.2 million as of December 31, 2024[147] - The North American lift truck market exhibited growth in 2024, driven by robust manufacturing sectors and expanding logistics operations[145] - Equipment supply chain constraints gradually subsided throughout 2023, leading to increased new equipment inventories[146] Financial Performance - Consolidated revenues decreased by $0.2 million to $1,876.6 million for the year ended December 31, 2024, compared to 2023, primarily due to a decline in new and used equipment sales[171] - New and used equipment sales dropped by $38.9 million, or 3.8%, to $987.0 million, while parts sales increased by $16.1 million, or 5.8%, to $294.4 million[171] - Gross profit decreased by $13.5 million, or 2.7%, to $493.7 million, with a gross profit margin decline from 27.0% in 2023 to 26.3% in 2024[172] - Operating expenses increased by 4.9% to $475.1 million, driven by the impact of acquisitions and costs associated with organic growth[173] - Adjusted EBITDA decreased by $23.1 million, or 12.1%, to $168.3 million for the year ended December 31, 2024[166] Segment Performance - Total revenues for the Material Handling segment increased by $5.9 million to $687.4 million in 2024, with organic revenue growth of $4.1 million, or 0.6%[177] - New and used equipment sales decreased by $2.4 million, or 0.7%, to $365.2 million in 2024, while rental equipment sales surged by $5.3 million, or 101.9%[176] - Total revenues for the Construction Equipment segment increased by $6.7 million to $1,131.4 million in 2024, with parts sales rising by 9.8%[181] - Income from operations for the Construction Equipment segment fell by $26.2 million, or 73.8%, to $9.3 million in 2024[181] - Master Distribution segment revenues decreased by $24.6 million to $59.2 million in 2024, attributed to reduced sales volumes as sub-dealer stocking levels were full[190] Operational Insights - Approximately 44% of the company's employees are skilled service technicians, highlighting the focus on service and maintenance[153] - The company experienced strong demand for skilled technicians' labor and replacement parts, despite a reduction in equipment utilization year over year[148] - Service revenues improved by 3.9%, reflecting a positive trend in product support despite overall revenue challenges[171] Cash Flow and Investments - For the year ended December 31, 2024, the company reported a net cash provided by operations of $57.0 million, with a net loss of $62.1 million adjusted for non-cash items resulting in net cash inflows of $63.5 million[194] - Cash used in investing activities for 2024 was $56.2 million, primarily due to $73.4 million in purchases of rent-to-rent equipment, partially offset by $17.2 million in proceeds from sales[196] - Cash used in financing activities for 2024 was $17.9 million, primarily due to the extinguishment of $319.4 million in Senior Secured Second Lien Notes and principal payments of $639.9 million on long-term debt[198] Debt and Interest - The company’s ability to pay interest and principal on its indebtedness will depend on future operating performance and the availability of borrowings[203] - As of December 31, 2024, outstanding borrowings under the ABL Facility were $182.9 million, down from $317.5 million in 2023[219] - A 1% increase in interest rates applicable to variable rate debt would reduce annual pre-tax earnings by $2.6 million[219] - The company has fixed rate Senior Secured Second Lien Notes of $500.0 million due in 2029, with no exposure to changing interest rates as of December 31, 2024[220] Strategic Outlook - The company anticipates a rebound in lift truck bookings in the second half of 2025 as supply and demand factors normalize[145] - The company anticipates pursuing additional strategic acquisitions and opening new start-up locations in the future[201]

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].

Core Insights - Alta Equipment Group Inc. reported a decline in financial performance for 2024, influenced by elevated interest rates and reduced construction spending, leading to a decrease in equipment volumes and gross margins [4][5][6] - The company's Material Handling segment showed resilience with a slight revenue increase, while the Construction segment faced significant challenges [4][5][6] - Despite the overall decline, the company managed to maintain flat total revenues year-over-year, demonstrating the strength of its dealership model and diversified revenue streams [6] Financial Highlights for Q4 2024 - Total revenues decreased by 4.5% year-over-year to $498.1 million, with Construction and Material Handling revenues at $318.6 million and $168.6 million, respectively [5][8] - New and used equipment sales fell by 3.7% to $287.1 million, while product support revenues decreased by 2.3% [5][8] - The net loss available to common stockholders was $(11.4) million, compared to $(2.7) million in 2023, with a basic and diluted net loss per share of $(0.34) [5][8] Full Year 2024 Financial Highlights - Total revenues for 2024 were $1,876.6 million, essentially flat compared to $1,876.8 million in 2023 [5][9] - New and used equipment sales decreased by 3.8% to $987.0 million, while parts and service revenues increased by 5.8% and 5.2%, respectively [5][9] - The net loss available to common stockholders for the year was $(65.1) million, compared to a profit of $5.9 million in 2023, with an adjusted EBITDA decrease of 12.1% to $168.3 million [5][9] Segment Performance - The Material Handling segment's revenues increased to $687.4 million, reflecting growth in North American lift truck deliveries as the industry addressed post-COVID backlogs [4][5] - The Construction segment faced a decline in equipment volumes by approximately 10 to 20 percent year-over-year, leading to pressured pricing and gross margins [4][5] - The Master Distribution segment also experienced negative impacts on equipment volumes and gross margins due to the challenges faced in the Construction segment [4][5] Management Commentary - The CEO highlighted the impact of macroeconomic factors on performance, including interest rates and construction spending, while expressing optimism for 2025 based on expected normalization of equipment supply and ongoing capital investment in construction markets [4][6] - The company successfully achieved organic growth in its product support business for the fifth consecutive year, indicating resilience despite market challenges [6] 2025 Financial Guidance - The company expects to report Adjusted EBITDA between $175.0 million and $190.0 million for the 2025 fiscal year, reflecting a positive outlook compared to 2024 [7]

Core Insights - Alta Equipment Group Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024, highlighting challenges in the construction equipment market due to elevated interest rates and political uncertainty [3][4] - The company's total revenues for 2024 were essentially flat at $1.9 billion, demonstrating resilience despite market cyclicality [4][6] - The Material Handling segment showed growth, with revenues increasing to $687.4 million, while the Construction segment faced declines [4][5] Financial Highlights for Q4 2024 - Total revenues decreased by 4.5% year over year to $498.1 million [5] - New and used equipment sales fell by 3.7% to $287.1 million [5] - Net loss available to common stockholders was $(11.4) million compared to $(2.7) million in Q4 2023 [5] - Adjusted EBITDA decreased by 18.1% to $40.7 million [5][9] Financial Highlights for Full Year 2024 - Total revenues were $1,876.6 million, a slight decrease of $0.2 million year over year [5][22] - Construction and Material Handling revenues were $1,131.4 million and $687.4 million, respectively [5] - Net loss available to common stockholders was $(65.1) million compared to $5.9 million in 2023 [5][22] - Adjusted EBITDA decreased by 12.1% to $168.3 million [5][22] Segment Performance - The Material Handling segment experienced growth, with North American lift truck deliveries increasing as the industry worked through post-COVID backlogs [4] - The Construction segment faced a decline in equipment volumes, with a year-over-year drop of approximately 10 to 20 percent in some regional markets [4] - Product support revenues increased by 5.5% year over year, with parts and service sales growing to $294.4 million and $253.8 million, respectively [5][6] Outlook for 2025 - The company expects Adjusted EBITDA for 2025 to be between $175.0 million and $190.0 million [7] - There is optimism regarding the normalization of new equipment supply, which is anticipated to enhance competitiveness in the construction segment [6] - The company plans to leverage cost and inventory optimization initiatives undertaken in 2024 to create operating leverage moving forward [6]

Core Points - Alta Equipment Group Inc. will report its financial results for Q4 and full year 2024 on March 5, 2025, after U.S. markets close [1] - A conference call and webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results [2] Company Overview - Alta Equipment Group operates one of the largest integrated equipment dealership platforms in North America, with over 85 locations across various states and Canadian provinces [3] - The company specializes in selling, renting, and providing parts and service support for a wide range of specialized equipment, including material handling, construction, and environmental processing equipment [3]

Core Viewpoint - Alta Equipment Group (NYSE: ALTG) is identified as a compelling business with the potential to deliver outsized returns for shareholders over the next 3–5 years, despite facing challenges in balancing margin and revenue growth with high levels of operational demands [3]. Group 1: Company Overview - Alta Equipment Group is positioned as a business that can provide significant returns to its shareholders in the medium term [3]. - The company is currently navigating the complexities of maintaining both margin and revenue growth while managing high operational demands [3]. Group 2: Investment Perspective - The investment thesis suggests that the market may have mispriced Alta Equipment Group, presenting an opportunity for investors who evaluate businesses fundamentally rather than as mere stock tickers [2].

Financial Data and Key Metrics Changes - The company recorded revenue of $448.8 million for Q3 2024, down $17.4 million year-over-year and down $39.3 million sequentially from Q2 2024, primarily due to declines in new and used equipment sales [25][31] - Adjusted EBITDA for the quarter was $43.2 million, a decrease of $7.8 million from Q3 2023, with a trailing 12-month adjusted pro forma EBITDA of $178 million [31][39] - The company reduced funded debt by $39 million during the quarter, maintaining a leverage ratio of 4.6x trailing 12-month adjusted EBITDA as of September 30 [33][37] Segment Performance Changes - In the Construction Equipment segment, revenues decreased by $41.4 million year-over-year to $262.3 million, with new and used equipment sales down $40.6 million [28] - The Material Handling segment saw revenues remain flat year-over-year at approximately $170 million, with product support revenues increasing by 3.5% [26][30] - The high-margin product support business grew 7.8% to $140.2 million, demonstrating resilience amid market fluctuations [13][25] Market Data and Key Metrics Changes - The Construction Equipment segment was significantly impacted by customer hesitance to invest in new equipment due to election uncertainties and interest rate concerns [9][15] - The Material Handling segment benefited from a substantial sales backlog, allowing it to capture market share despite competitive pressures [12][16] Company Strategy and Industry Competition - The company is focused on optimizing its business, enhancing customer satisfaction, and retaining top talent as part of its strategic vision [18] - The administration's proposed tax cuts and incentives for domestic manufacturing are expected to drive demand for construction equipment in 2025 [15][16] - The company aims to increase its share in electrified product classes and expects its e-mobility business to gain traction as customers shift towards electrification [17][19] Management's Comments on Operating Environment and Future Outlook - Management noted that post-election sentiment has improved, leading to expectations of increased capital deployment in Q4 2024 and into 2025 [9][15] - The company anticipates a normalization in equipment supply and favorable lending conditions supporting construction equipment spending in 2025 [15][16] - Management expressed confidence in the long-term prospects of the business despite the challenges faced in 2024 [46][47] Other Important Information - The Board of Directors expanded the share buyback program to $20 million, indicating confidence in the company's long-term value [19] - The company ended the quarter with $320 million in liquidity, providing flexibility to navigate future market conditions [38] Q&A Session Summary Question: Can you provide more detail on the weakness in equipment sales? - Management indicated that the downturn was primarily in the heavy equipment lines, particularly in Michigan and Florida, which drove the majority of the year-over-year variance [50][52] Question: How do you plan to return to targeted leverage ranges? - Management stated that both reducing debt and increasing EBITDA are necessary, with a focus on optimizing the fleet and used equipment [53][55] Question: What is the outlook for the material handling market? - Management expects to remain flat relative to 2023 performance in the first half of 2025, supported by a backlog of orders [64][66] Question: How has the hurricane impact affected demand? - Management noted an uptick in demand for compact equipment for cleanup efforts, but overall impact is expected to be immaterial [69] Question: What is the expectation for SG&A expenses moving forward? - Management anticipates that most of the SG&A reductions will stick, but some sequential growth is expected in line with increased sales [70][72]