Alta Equipment Group Announces Fourth Quarter and Full Year 2024 Financial Results and Provides Adjusted EBITDA Guidance for 2025

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$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$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]