Alta Equipment (ALTG) - 2023 Q2 - Quarterly Report

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]