Group 1 - Alta Equipment Group Inc. appointed Jeff Hoover as Chief Legal Officer and General Counsel effective January 18, 2024 [1][2] - Jeff Hoover has extensive experience in mergers and acquisitions, corporate finance, commercial lending, and real estate transactions, previously serving as a partner at Dinsmore & Shohl LLP and Howard & Howard Attorneys, PLLC [1][2] - Hoover will lead and coordinate Alta's legal affairs, corporate governance, and Board relations, while also supporting operational leaders from an administrative and compliance perspective [2] Group 2 - Alta Equipment Group operates one of the largest integrated equipment dealership platforms in the U.S. and has a presence in Canada, with over 80 locations across various states and provinces [3] - The company specializes in selling, renting, and providing parts and service support for a wide range of equipment, including lift trucks, heavy earthmoving equipment, and environmental processing equipment [3] - Alta has been in operation for 39 years, offering a comprehensive product portfolio to meet customer equipment needs [3]

Financial Data and Key Metrics Changes - Total revenue increased by 15.1% year-over-year to $466.2 million, with a $61 million increase compared to Q3 of last year [6][18] - Adjusted EBITDA grew by 15.9% to $51 million, reflecting strong performance across major business segments [7][20] - Year-to-date, the company placed approximately $149 million more equipment into the field compared to the first three quarters of 2022 [18] Business Line Data and Key Metrics Changes - Construction revenues increased to $282 million, while Materials Handling revenues rose to $168.6 million [6] - New and used equipment sales grew by 20.7% to $253.6 million [6] - Product support revenues increased by 12.1% year-over-year, with parts sales at $69.5 million and service revenues at $60.6 million [7][19] Market Data and Key Metrics Changes - The Construction segment showed strong demand, particularly in Florida, with a favorable customer sentiment and record backlog [8] - The Material Handling segment is expected to enter 2024 with a record backlog, with no significant cancellations reported due to macroeconomic factors [34] Company Strategy and Development Direction - The company is focused on expanding its Construction segment and has made strategic acquisitions, including Burris Equipment and Ault Industries, to enhance market penetration [9][10] - The company aims to optimize existing cash flow streams and be strategic with capital allocation as it heads into 2024 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of demand across diversified markets despite macroeconomic challenges [7][8] - The company anticipates continued organic growth in parts and service, expecting to maintain high single-digit growth rates [35] Other Important Information - The company has raised its adjusted EBITDA guidance for fiscal year 2023 to a range of $187 million to $192 million [20] - The company ended the quarter with approximately $207 million in availability on its revolving line of credit [22] Q&A Session Summary Question: Can you talk about your order book and customer sentiments regarding higher interest rates? - Management indicated that the Construction segment requires inventory on the ground, while the Material Handling side has a record backlog with no significant cancellations due to inflation or interest rates [34] Question: What are your thoughts on new and used equipment pricing heading into 2024? - Management noted inflationary increases in new equipment pricing and moderation in used equipment pricing, expecting these trends to continue into 2024 [41][42] Question: Can you discuss the performance of your material handling facing end markets? - Management highlighted stable demand in manufacturing and food and beverage sectors, with some softening in warehouse automation projects due to interest rates [46] Question: How do you feel about the value of the stock today relative to growth opportunities? - Management emphasized a cautious approach to capital allocation, balancing stock buybacks with growth opportunities in M&A [53]

Financial Performance - Total revenue increased by 15.1% to $466.2 million compared to Q3 2022[10] - New and Used Equipment Sales Grew 20.7% to $253.6 million[10] - Adjusted EBITDA Grew 15.9% to $51.0 million compared to $44.0 million last year[10] - YTD Economic EBIT increased 15.3% or $12.7 million, from $82.7 million to $95.4 million[10] - Consolidated organic revenue grew $37.9 million, or 9.5%[29] - Revenue grew 18.6% to $1,355.3 million YTD; Organic revenue grew by $120.8 million or 10.6%[30] Market and Growth Strategy - M&A activity since public offering added $537 million in total revenue value and $65 million in EBITDA at accretive valuation multiples[16] - The company initiated a share repurchase program in July 2022[46] Balance Sheet and Liquidity - Uncapped Liquidity of $207 million as of September 30, 2023[36] - $305 million outstanding balance under $485 million ABL facility as of September 30, 2023[36] FY2023 Guidance - Increased FY2023 Adjusted EBITDA guidance from $180.0 - $188.0 million to $187.0 - $192.0 million[51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ALTA EQUIPMENT GROUP INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) | --- | --- | |----------------|-----------------------| | ...

Financial Data and Key Metrics Changes - Total revenue increased by 15.2% to $468.4 million, a record for the company, driven by Construction revenue of $281.5 million and Material Handling revenue of $169.1 million [8][22] - Adjusted EBITDA grew by 20.5% to $49.9 million compared to the previous year [8][24] - Organic revenue growth year-to-date was reported at 11.2% [8] Business Line Data and Key Metrics Changes - Construction Equipment segment benefited from high non-residential demand and federal infrastructure spending, with significant growth in Florida operations [12] - Material Handling segment saw organic growth in parts and service departments, with increases of 12% and 10% year-over-year respectively [23] - The newly created Master Distribution segment contributed $21.4 million in revenue, with the e-Mobility business generating $3.1 million from Nikola's TRE BEV tractors [8][13] Market Data and Key Metrics Changes - Positive trends were noted across major end-user markets in the Material Handling segment, including manufacturing and automotive [10] - Demand for heavy equipment in Florida, particularly articulated hauler trucks and excavators, saw double-digit growth year-over-year [12] - Federal initiatives are expected to extend the cycle with approximately $1 trillion estimated over the next decade for infrastructure projects [16] Company Strategy and Development Direction - The company aims to drive long-term equipment field population and aftermarket support penetration [9] - A disciplined approach to M&A is maintained, with a strong pipeline for accretive acquisitions [17] - The strategy includes expanding dealership networks and entering new end-user markets, particularly in Eastern Canada and the southern U.S. [17][76] Management's Comments on Operating Environment and Future Outlook - Management expressed strong customer sentiment for the remainder of the year, with supply chain constraints easing [16] - The company anticipates continued growth in the e-Mobility sector, particularly with Nikola's products [14][71] - Management remains optimistic about the recycling equipment market, projecting significant growth driven by sustainability trends [13] Other Important Information - The company successfully amended its credit agreements, increasing its ABL facility to $485 million, with additional expansion options available [30][31] - The secondary common stock offering closed in July, increasing liquidity and float in the stock [32] Q&A Session Summary Question: Rental utilization rates and pricing trends - Management noted that rental utilization rates have flattened as the fleet has grown, but they remain optimistic about customer sentiment [34][36] - Rental rates have increased by 6% year-over-year, with expectations for moderation in growth rates [37] Question: Organic growth from recent acquisitions - Management indicated that both Yale Industrial and Ecoverse are expected to contribute to organic growth, with significant opportunities in Eastern Canada [38][41] Question: M&A pipeline activity - Management confirmed that the M&A pipeline remains active, with no change in valuation expectations despite recent transaction inactivity [46][48] Question: Order activity and backlog - Management reported a strong backlog extending into 2024, with some product categories still facing lead time challenges [49][51] Question: Inventory and CapEx outlook - Management expects inventory levels to normalize over the next 12 to 18 months, with a focus on maintaining efficient turnover rates [56][64] Question: Nikola's revenue contribution and growth outlook - Revenue from Nikola is currently reported in the corporate segment, with expectations for incremental growth as retail deliveries increase [66][71]

EARNINGS PRESENTATION SECOND QUARTER 2023 LEGAL DISCLAIMERS Forward-LookingInformation Thispresentationincludes“forward-lookingstatements”withinthemeaningofthe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995.Alta’sactualresultsmay differfromtheirexpectations,estimatesandprojectionsandconsequently,youshouldnotrelyontheseforward-lookingstatementsaspredictionsoffutureevents.Wordssuchas“expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “cou ...

Financial Performance - Total revenues for the three months ended June 30, 2023, increased to $468.4 million, up from $406.5 million in the same period of 2022, representing a growth of approximately 15.2%[13] - Gross profit for the three months ended June 30, 2023, was $126.8 million, compared to $105.8 million in the prior year, reflecting a gross margin improvement[13] - Net income for the three months ended June 30, 2023, decreased to $2.4 million from $6.1 million in the same period of 2022, indicating a decline of approximately 60.7%[16] - Total revenues for the six months ended June 30, 2023, were $796.0 million, compared to $889.1 million for the same period in 2022, indicating a decrease of about 10.5%[35] - Net income for the six months ended June 30, 2023, was $3.4 million, a decrease from $4.9 million in the same period of 2022, representing a decline of approximately 30.6%[22] - The company reported a basic income per share of $0.05 for the three months ended June 30, 2023, down from $0.17 in the same period of 2022[13] Assets and Liabilities - Total current assets as of June 30, 2023, were $759.5 million, an increase from $663.3 million as of December 31, 2022, representing a growth of about 14.5%[10] - Total liabilities increased to $1,288.8 million as of June 30, 2023, compared to $1,150.8 million at the end of 2022, marking an increase of approximately 12%[10] - The company’s total stockholders' equity increased to $141.4 million as of June 30, 2023, compared to $139.8 million at the end of 2022[10] - The accumulated deficit as of June 30, 2023, was $(76.5) million, compared to $(76.4) million at the end of the previous quarter[18] - The total outstanding balance under the Floor Plan Facilities was $348.2 million as of June 30, 2023, compared to $256.9 million as of December 31, 2022[62] - The total debt and finance leases amounted to $628.5 million as of June 30, 2023, compared to $548.3 million as of December 31, 2022[69] Revenue Breakdown - New and used equipment sales for the six months ended June 30, 2023, amounted to $474.2 million, up from $368.9 million in the prior year, reflecting an increase of approximately 28.5%[35] - Parts sales increased to $139.7 million for the six months ended June 30, 2023, compared to $111.7 million in the same period of 2022, marking a growth of about 25.1%[35] - Service revenues rose to $119.9 million for the six months ended June 30, 2023, from $99.9 million in the same period of 2022, representing a growth of approximately 20.0%[35] - Rental revenues for the six months ended June 30, 2023, were $93.1 million, compared to $81.3 million in the same period of 2022, an increase of about 14.4%[35] Cash Flow and Investments - The company reported a net cash used in operating activities of $33.8 million for the six months ended June 30, 2023, compared to a net cash provided of $3.4 million in the same period of 2022[22] - Net cash used in investing activities was $40.6 million for the six months ended June 30, 2023, compared to $37.4 million in the same period of 2022[22] - The company had cash of $2.3 million at the end of the period, a decrease from $2.7 million at the beginning of the year[22] Stockholder Information - Dividends on preferred stock were $0.625 per share, with total dividends on common stock and stock-based compensation amounting to $0.057 per share[18] - The company reported a total of 32,368,100 common shares outstanding as of June 30, 2023[18] - The preferred stock remains at 1,200,000 shares as of June 30, 2023[18] Segment Performance - Total revenues for the three months ended June 30, 2023, amounted to $468.4 million, with Material Handling segment contributing $169.1 million and Construction Equipment segment contributing $281.5 million[111] - For the six months ended June 30, 2023, total revenues reached $889.1 million, with Material Handling segment at $333.9 million and Construction Equipment segment at $514.6 million[112] Interest and Financing - The effective interest rate on the First Lien Floor Plan Facility increased from 7.0% as of December 31, 2022, to 8.0% as of June 30, 2023[59] - The Company recognized interest expense of $1.9 million for the three months ended June 30, 2023, associated with new equipment financed under its Floor Plan Facilities[63] - The Company sold $315.0 million of Senior Secured Second Lien Notes at a rate of 5.625% per annum, due on April 15, 2026[66] Other Financial Metrics - The effective tax rate for the six months ended June 30, 2023, was 10.5%, compared to 9.3% for the same period in 2022[84] - Total stock-based compensation expense recognized was $1.1 million for the three months ended June 30, 2023, an increase of 37.5% from $0.8 million in 2022[86] - The estimated aggregate fair value of the Company's debt instruments as of June 30, 2023, was $610.4 million, compared to an aggregate carrying value of $634.0 million[92]

Alta Equipment Group Inc. (NYSE:ALTG) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET Company Participants Jason Dammeyer - Director-SEC Reporting & Technical Accounting Ryan Greenawalt - Chairman & Chief Executive Officer Tony Colucci - Chief Financial Officer Conference Call Participants Will Jellison - DA Davidson Alex Rygiel - B. Riley Ted Jackson - Northland Securities Bryan Fast - Raymond James Operator Good afternoon, and thank you for attending today's Alta Equipment Group First Quarter 202 ...

EARNINGS PRESENTATION FIRST QUARTER 2023 May 10, 2023 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," "project," "budget," ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Total revenues increased by **26.8%** to **$420.7 million**, resulting in **$0.2 million** net income, while total assets grew to **$1,376.8 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in millions) | (in millions) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $729.5 | $663.3 | | **Total Assets** | **$1,376.8** | **$1,290.6** | | **Total Current Liabilities** | $525.8 | $471.2 | | **Total Liabilities** | $1,238.7 | $1,150.8 | | **Total Stockholders' Equity** | **$138.1** | **$139.8** | - Total assets increased to **$1,376.8 million** as of March 31, 2023, from **$1,290.6 million** at the end of 2022, primarily driven by a significant increase in net inventories, which rose from **$399.7 million** to **$469.1 million**[11](index=11&type=chunk) - Total liabilities rose to **$1,238.7 million** from **$1,150.8 million**, largely due to increases in floor plan payables (from **$256.8 million** to **$314.8 million**) and the line of credit (from **$217.5 million** to **$256.0 million**)[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in millions, except per share) | (in millions, except per share) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$420.7** | **$331.7** | | **Gross Profit** | $121.3 | $91.4 | | **Income from Operations** | $12.1 | $4.6 | | **Net Income (Loss)** | $1.0 | ($1.2) | | **Net Income (Loss) to Common Stockholders** | **$0.2** | **($2.0)** | | **Diluted EPS** | **$0.01** | **($0.06)** | - Total revenues increased by **26.8%** year-over-year, driven by strong growth in new and used equipment sales, which rose **44.9%** to **$219.6 million**[14](index=14&type=chunk) - The company swung to a net income of **$1.0 million** in Q1 2023 from a net loss of **$1.2 million** in Q1 2022, reflecting higher revenues and improved gross profit[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in millions) | (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **($20.1)** | **($6.7)** | | **Net cash used in investing activities** | ($18.9) | ($18.6) | | **Net cash provided by financing activities** | $37.9 | $24.6 | | **Net change in cash** | ($1.0) | ($0.7) | - Net cash used in operating activities increased to **$20.1 million**, primarily due to a **$114.3 million** increase in inventories, partially offset by a **$57.0 million** increase in manufacturers floor plans payable[23](index=23&type=chunk) - Financing activities provided **$37.9 million** in cash, mainly from **$97.0 million** in proceeds from line of credit and long-term borrowings, used to fund working capital needs and acquisitions[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - On March 1, 2023, the company acquired the assets of M&G Materials Handling Co. ("M&G"), a Yale dealer in Rhode Island, for a purchase price of **$2.3 million**[101](index=101&type=chunk) Segment Assets (in millions) | (in millions) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Material Handling** | $446.5 | $416.3 | | **Construction Equipment** | $829.9 | $775.5 | | **Master Distribution** | $81.2 | $77.6 | | **Corporate and Other** | $19.2 | $21.2 | | **Total assets** | **$1,376.8** | **$1,290.6** | - The company began separately reporting Master Distribution as a new segment in the first quarter of 2023, following the acquisition of Ecoverse in late 2022. Financial data for 2022 has been recast to reflect this change[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated revenues grew **26.8%** with **16.2%** organic growth, improving gross profit margin to **28.8%** and maintaining solid liquidity [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Consolidated Results of Operations (Q1 2023 vs Q1 2022, in millions) | (in millions) | Q1 2023 | Q1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$420.7** | **$331.7** | **26.8%** | | New and used equipment sales | $219.6 | $151.6 | 44.9% | | Parts sales | $68.4 | $53.4 | 28.1% | | Service revenue | $60.2 | $48.2 | 24.9% | | **Gross Profit** | **$121.3** | **$91.4** | **32.7%** | | **Income from Operations** | $12.1 | $4.6 | 163.0% | | **Net Income (Loss)** | $1.0 | ($1.2) | (183.3%) | Organic Revenue Growth Reconciliation (Q1 2023, in millions) | (in millions) | Total Revenues | Acquisitions Revenues | Total Organic Revenues | Organic Growth (%) | | :--- | :--- | :--- | :--- | :--- | | **Q1 2023** | **$420.7** | **$35.4** | **$385.3** | **16.2%** | - Consolidated gross profit margin increased by **120 basis points** to **28.8%** in Q1 2023 from **27.6%** in Q1 2022, driven by a favorable pricing environment and a higher margin on rental equipment sales[144](index=144&type=chunk) [Segment Results](index=32&type=section&id=Segment%20Results) - **Material Handling** revenues grew **31.2%** to **$164.8 million**, with organic growth of **21.2%**, resulting in **$5.1 million** income before taxes[148](index=148&type=chunk)[150](index=150&type=chunk) - **Construction Equipment** revenues increased **13.1%** to **$233.1 million** entirely from organic growth, reporting a loss before taxes of **$1.6 million**, an improvement from the prior year[154](index=154&type=chunk)[156](index=156&type=chunk) - **Master Distribution**, a new segment from the Q4 2022 Ecoverse acquisition, generated **$26.7 million** in revenue and **$3.4 million** in income before taxes in its first full quarter[161](index=161&type=chunk)[162](index=162&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's principal sources of liquidity are cash from operations, debt issuance, and borrowings under its line of credit and floor plans[171](index=171&type=chunk) - Net cash used in operating activities was **$20.1 million** for Q1 2023, compared to **$6.7 million** in Q1 2022, primarily due to a seasonal build of new equipment inventory[166](index=166&type=chunk)[167](index=167&type=chunk) - As of March 31, 2023, **$229.4 million** of available borrowings under revolving line of credit and floor plan facilities are deemed adequate for future liquidity needs[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are interest rate and foreign currency, with a **1%** rate increase potentially reducing pre-tax earnings by **$1.7 million** - The company is exposed to interest rate risk on its ABL Facility and Floor Plan Facilities, which are based on floating rates like SOFR[178](index=178&type=chunk) - As of March 31, 2023, a **1%** increase in interest rates on variable rate debt would reduce annual pre-tax earnings by **$1.7 million**, net of hedging impacts[179](index=179&type=chunk) - Foreign currency risk exists due to operations in Canada, affecting revenues and expenses denominated in Canadian dollars and European currencies, with forward contracts used to hedge a portion of this exposure[180](index=180&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective due to an un-remediated material weakness in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of March 31, 2023, due to a material weakness in internal control over financial reporting[182](index=182&type=chunk) - The material weakness relates to the sales process and was previously disclosed in the 2022 Annual Report on Form 10-K[182](index=182&type=chunk) - A remediation plan is underway, focusing on training, system enhancements, and implementing regular management monitoring controls, with remediation considered complete once these controls operate effectively for a sufficient period[184](index=184&type=chunk)[185](index=185&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings beyond routine litigation incidental to its business - There are no material legal proceedings to which the company is a party or to which any of its property is subject, aside from routine legal matters incidental to the business[189](index=189&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from those disclosed in the prior year's Annual Report on Form 10-K - No material changes have occurred from the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022[190](index=190&type=chunk)