Alta Equipment Group Inc 8-K, filed Nov 8, 2023
Alta Equipment Group Inc. (ALTG)
About this 8-K
Alta Equipment Group Inc filed this 8-K on November 8, 2023.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction |
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(IRS Employer |
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.*
On November 8, 2023, Alta Equipment Group Inc. (“Alta” or the “Company”) issued a press release announcing its results of operations and financial condition for the quarter ended September 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
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Description |
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99.1* |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
* The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ALTA EQUIPMENT GROUP INC. |
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Dated: November 8, 2023 |
By: |
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/s/ Ryan Greenawalt |
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Name: Ryan Greenawalt |
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Title: Chief Executive Officer |
2
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
Exhibit 99.1
Alta Equipment Group Announces Third Quarter 2023 Financial Results
Third Quarter Financial Highlights: (comparisons are year over year)
Livonia, MI. – November 8, 2023 – 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 financial results for the third quarter ended September 30, 2023.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of Alta, said “Our diversified end-user markets remain strong despite macroeconomic headwinds. Given this solid demand, and operational excellence from the Alta team, we achieved strong results during the third quarter. All our business segments continue to perform well. Our Construction segment new and used equipment sales continue to benefit from the increased availability of equipment from our OEM partners which is evidenced by the 19.3% organic growth this quarter when compared to the third quarter of 2022. Demand for material handling equipment also remains strong as we continue to work off of a high level of equipment sales backlog in that segment. Between all segments, we have sold nearly $149 million more new and used equipment into field population year to date than we did for the same period in 2022, which we know will correlate to future high-margin product support revenues. To that end, our product support revenues increased 12.1% from a year ago as we continue to support an ever increasing field population and provide our customers with reliable service through our more than 1,300 skilled technicians.”
Mr. Greenawalt continued, “We continue to execute upon our acquisition and growth strategy, acquiring Burris Equipment, which will expand our construction equipment presence in the Illinois market, and most recently, Ault Industries, which expands our Construction segment into Canada for the first time. Notably, both acquisitions are immediately accretive to shareholders and all major financial and valuation metrics. Additionally, in terms of further organic opportunities, as announced today we are expanding into western Pennsylvania through our new relationship with CASE Construction Equipment to serve construction contractors throughout the region. Including Burris and Ault, since the Company’s initial public offering in 2020, Alta has now completed 16 acquisitions which have contributed $537 million in revenue, and $65 million in Adjusted EBITDA.”
In conclusion, Mr. Greenawalt commented, “We are very pleased with our performance and the current trends in our end-user markets. Most importantly, our customers remain positive throughout the balance of this year and into 2024.
1
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
Incrementally beneficial to our business, federal spending initiatives will extend the cycle for years to come as well as increases in state DOT budgets and onshoring projects, some of which are currently underway in several of our markets.”
Full Year 2023 Financial Guidance and Other Financial Notes:
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Unaudited)
(amounts in millions unless otherwise noted)
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Three Months Ended September 30, |
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Increase (Decrease) |
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Nine Months Ended September 30, |
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Increase (Decrease) |
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2023 |
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2022 |
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2023 versus 2022 |
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2023 |
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2022 |
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2023 versus 2022 |
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Revenues: |
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New and used equipment sales |
$ |
253.6 |
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$ |
210.1 |
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$ |
43.5 |
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20.7 |
% |
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$ |
727.8 |
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$ |
579.0 |
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$ |
148.8 |
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25.7 |
% |
Parts sales |
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69.5 |
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61.8 |
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7.7 |
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12.5 |
% |
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209.2 |
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173.5 |
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35.7 |
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20.6 |
% |
Service revenues |
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60.6 |
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54.3 |
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6.3 |
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11.6 |
% |
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180.5 |
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154.2 |
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26.3 |
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17.1 |
% |
Rental revenues |
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54.0 |
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50.2 |
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3.8 |
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7.6 |
% |
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147.1 |
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131.5 |
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15.6 |
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11.9 |
% |
Rental equipment sales |
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28.5 |
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28.6 |
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(0.1 |
) |
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(0.3 |
)% |
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90.7 |
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105.0 |
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(14.3 |
) |
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(13.6 |
)% |
Total revenues |
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466.2 |
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405.0 |
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61.2 |
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15.1 |
% |
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1,355.3 |
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1,143.2 |
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212.1 |
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18.6 |
% |
Cost of revenues: |
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New and used equipment sales |
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212.0 |
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176.5 |
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35.5 |
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20.1 |
% |
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601.3 |
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482.6 |
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118.7 |
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24.6 |
% |
Parts sales |
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45.3 |
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40.0 |
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5.3 |
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13.3 |
% |
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138.2 |
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116.7 |
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21.5 |
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18.4 |
% |
Service revenues |
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26.5 |
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24.3 |
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2.2 |
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9.1 |
% |
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77.0 |
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66.3 |
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10.7 |
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16.1 |
% |
Rental revenues |
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5.7 |
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5.9 |
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(0.2 |
) |
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(3.4 |
)% |
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18.0 |
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16.7 |
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1.3 |
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7.8 |
% |
Rental depreciation |
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29.6 |
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25.9 |
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3.7 |
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14.3 |
% |
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80.1 |
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69.5 |
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10.6 |
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15.3 |
% |
Rental equipment sales |
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21.0 |
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20.8 |
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0.2 |
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1.0 |
% |
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66.5 |
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82.6 |
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(16.1 |
) |
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(19.5 |
)% |
Total cost of revenues |
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340.1 |
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293.4 |
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46.7 |
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15.9 |
% |
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981.1 |
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834.4 |
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146.7 |
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17.6 |
% |
Gross profit |
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126.1 |
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111.6 |
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14.5 |
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13.0 |
% |
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374.2 |
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308.8 |
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65.4 |
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21.2 |
% |
General and administrative expenses |
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106.8 |
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94.2 |
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12.6 |
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13.4 |
% |
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316.0 |
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265.9 |
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50.1 |
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18.8 |
% |
Non-rental depreciation and amortization |
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5.4 |
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3.7 |
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1.7 |
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45.9 |
% |
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16.0 |
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11.6 |
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4.4 |
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37.9 |
% |
Total operating expenses |
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112.2 |
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97.9 |
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14.3 |
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14.6 |
% |
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332.0 |
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277.5 |
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54.5 |
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19.6 |
% |
Income from operations |
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13.9 |
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13.7 |
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0.2 |
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1.5 |
% |
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42.2 |
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31.3 |
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10.9 |
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34.8 |
% |
Other (expense) income: |
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Interest expense, floor plan payable – new equipment |
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(2.4 |
) |
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(0.8 |
) |
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(1.6 |
) |
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200.0 |
% |
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(5.8 |
) |
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(1.6 |
) |
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(4.2 |
) |
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262.5 |
% |
Interest expense – other |
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(12.8 |
) |
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(7.7 |
) |
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(5.1 |
) |
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66.2 |
% |
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(35.1 |
) |
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(19.8 |
) |
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(15.3 |
) |
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77.3 |
% |
Other income |
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1.4 |
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0.2 |
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1.2 |
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600.0 |
% |
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2.6 |
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0.9 |
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1.7 |
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188.9 |
% |
Total other expense, net |
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(13.8 |
) |
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(8.3 |
) |
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(5.5 |
) |
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66.3 |
% |
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(38.3 |
) |
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(20.5 |
) |
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(17.8 |
) |
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86.8 |
% |
Income before taxes |
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0.1 |
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5.4 |
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(5.3 |
) |
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(98.1 |
)% |
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3.9 |
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10.8 |
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(6.9 |
) |
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(63.9 |
)% |
Income tax (benefit) provision |
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(7.3 |
) |
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0.3 |
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(7.6 |
) |
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NM |
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(6.9 |
) |
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0.8 |
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(7.7 |
) |
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NM |
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Net income |
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7.4 |
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5.1 |
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2.3 |
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45.1 |
% |
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10.8 |
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10.0 |
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0.8 |
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8.0 |
% |
Preferred stock dividends |
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(0.7 |
) |
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(0.7 |
) |
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— |
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— |
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(2.2 |
) |
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(2.2 |
) |
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— |
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— |
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Net income available to common stockholders |
$ |
6.7 |
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$ |
4.4 |
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$ |
2.3 |
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52.3 |
% |
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$ |
8.6 |
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$ |
7.8 |
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$ |
0.8 |
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10.3 |
% |
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NM - calculated change not meaningful |
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2
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
Recent Business Highlights:
Conference Call Information:
Alta management will host a conference call and webcast today at 5:00 p.m. Eastern Time today to discuss and answer questions about the Company’s financial results for the third quarter ended September 30, 2023. Additionally, supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website at https://investors.altaequipment.com.
Conference Call Details:
What: |
Alta Equipment Group Third Quarter 2023 Earnings Call and Webcast |
Date: |
Wednesday, November 8, 2023 |
Time: |
5:00 p.m. Eastern Time |
Live call: |
(646) 904-5544 |
International: |
929-526-1599 |
Live call access code: |
535642 |
Audio replay: |
866-813-9403 |
Replay access code: |
156593 |
Webcast: |
https://events.q4inc.com/attendee/102634779 |
The audio replay will be archived through November 22, 2023.
About Alta Equipment Group Inc.
Alta owns and operates one of the largest integrated equipment dealership platforms in the U.S. and has a presence in Canada. Through its branch network, the Company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, heavy and compact earthmoving equipment, environmental processing equipment, cranes, paving and asphalt equipment and other material handling and construction equipment. Alta has operated as an equipment dealership for 39 years and has developed a branch network that includes over 80 total locations in Michigan, Illinois, Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada and Florida and the Canadian provinces of Ontario, Quebec and Maritime. Alta offers its customers a one-stop-shop for their equipment needs through its broad, industry-leading product portfolio. More information can be found at www.altaequipment.com.
3
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
Forward Looking Statements
This press release 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,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside Alta’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: supply chain disruptions, inflationary pressures resulting from supply chain disruptions or a tightening labor market; negative impacts on customer payment policies and adverse banking and governmental regulations, resulting in a potential reduction to the fair value of our assets; the performance and financial viability of key suppliers, contractors, customers, and financing sources; economic, industry, business and political conditions including their effects on governmental policy and government actions that disrupt our supply chain or sales channels; our success in identifying acquisition targets and integrating acquisitions; our success in expanding into and doing business in additional markets; our ability to raise capital at favorable terms; the competitive environment for our products and services; our ability to continue to innovate and develop new business lines; our ability to attract and retain key personnel, including, but not limited to, skilled technicians; our ability to maintain our listing on The New York Stock Exchange; the impact of cyber or other security threats or other disruptions to our businesses; our ability to realize the anticipated benefits of acquisitions or divestitures, rental fleet and other organic investments or internal reorganizations; federal, state, and local government budget uncertainty, especially as it relates to infrastructure projects and taxation; currency risks and other risks associated with international operations; and other risks and uncertainties identified in this presentation or indicated from time to time in the section entitled “Risk Factors” in Alta’s annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission (the “SEC”). Alta cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. Alta does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
*Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we disclose non-GAAP financial measures, including Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income, and Adjusted basic and diluted net income per share, in this press release because we believe they are useful performance measures that assist in an effective evaluation of our operating performance when compared to our peers, without regard to financing methods or capital structure. We believe such measures are useful for investors and others in understanding and evaluating our operating results in the same manner as our management. However, such measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for, or in isolation from, net income, revenue, operating profit, debt, or any other operating performance measures calculated in accordance with GAAP.
We define Adjusted EBITDA as net income before interest expense (not including floorplan interest paid on new equipment), income taxes, depreciation and amortization, adjustments for certain one-time or non-recurring items and other adjustments. We exclude these items from net income in arriving at Adjusted EBITDA because these amounts are either non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Management uses Adjusted total net debt and floor plan payables to reflect the Company's estimated financial obligations less cash and floor plan payables on new equipment ("FPNP"). The FPNP is used to finance the Company's new inventory, with its principal balance changing daily as equipment is purchased and sold and the sale proceeds are used to repay the notes. Consequently, in managing the business, management views the FPNP as interest bearing accounts payable, representing the cost of acquiring the equipment that is then repaid when the equipment is sold, as the Company's floor plan credit agreements require repayment when such pieces of equipment are sold. The Company believes excluding the FPNP from the Company's total debt for this purpose provides management with supplemental information regarding the Company's capital structure and leverage profile and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. Adjusted total net debt and floor plan payables should be considered in addition to, and not as a substitute for, the Company's debt obligations, as reported in the Company's consolidated balance sheets in accordance with U.S. GAAP. Adjusted net income
4
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
is defined as net income adjusted to reflect certain one-time or non-recurring items and other adjustments. Adjusted basic and diluted net income per share is defined as adjusted net income divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Certain items excluded from Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income, Adjusted basic and diluted net income per share are significant components in understanding and assessing a company’s financial performance. For example, items such as a company’s cost of capital and tax structure, certain one-time or non-recurring items as well as the historic costs of depreciable assets, are not reflected in Adjusted EBITDA or Adjusted net income. Our presentation of Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income, Adjusted basic and diluted net income per share should not be construed as an indication that results will be unaffected by the items excluded from these metrics. Our computation of Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income, Adjusted basic and diluted net income per share may not be identical to other similarly titled measures of other companies. For a reconciliation of non-GAAP measures to their most comparable measures under GAAP, please see the table entitled “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
Contacts
Investors:
Kevin Inda
SCR Partners, LLC
kevin@scr-ir.com
(225) 772-0254
Media:
Glenn Moore
Alta Equipment Group, LLC
glenn.moore@altg.com
(248) 305-2134
5
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except share and per share amounts)
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September 30, |
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December 31, |
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ASSETS |
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Cash |
|
$ |
1.4 |
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|
$ |
2.7 |
|
Accounts receivable, net of allowances of $14.3 and $13.0 as of September 30, 2023 and December 31, 2022, respectively |
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|
259.1 |
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|
232.8 |
|
Inventories, net |
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|
492.8 |
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|
399.7 |
|
Prepaid expenses and other current assets |
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|
31.0 |
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|
28.1 |
|
Total current assets |
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|
784.3 |
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|
663.3 |
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NON-CURRENT ASSETS |
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Property and equipment, net |
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447.6 |
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|
377.8 |
|
Operating lease right-of-use assets, net |
|
|
106.1 |
|
|
|
113.6 |
|
Goodwill |
|
|
71.1 |
|
|
|
69.2 |
|
Other intangible assets, net |
|
|
54.3 |
|
|
|
60.7 |
|
Other assets |
|
|
17.0 |
|
|
|
6.0 |
|
TOTAL ASSETS |
|
$ |
1,480.4 |
|
|
$ |
1,290.6 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Floor plan payable – new equipment |
|
$ |
280.6 |
|
|
$ |
211.5 |
|
Floor plan payable – used and rental equipment |
|
|
83.9 |
|
|
|
45.3 |
|
Current portion of long-term debt |
|
|
6.6 |
|
|
|
4.2 |
|
Accounts payable |
|
|
89.6 |
|
|
|
90.8 |
|
Customer deposits |
|
|
14.9 |
|
|
|
27.9 |
|
Accrued expenses |
|
|
53.4 |
|
|
|
55.1 |
|
Current operating lease liabilities |
|
|
15.4 |
|
|
|
14.8 |
|
Current deferred revenue |
|
|
14.5 |
|
|
|
14.1 |
|
Other current liabilities |
|
|
10.9 |
|
|
|
7.5 |
|
Total current liabilities |
|
|
569.8 |
|
|
|
471.2 |
|
|
|
|
|
|
|
|
||
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
||
Line of credit, net |
|
|
303.5 |
|
|
|
217.5 |
|
Long-term debt, net of current portion |
|
|
312.0 |
|
|
|
311.2 |
|
Finance lease obligations, net of current portion |
|
|
26.2 |
|
|
|
15.4 |
|
Deferred revenue, net of current portion |
|
|
4.4 |
|
|
|
4.9 |
|
Guaranteed purchase obligations, net of current portion |
|
|
2.9 |
|
|
|
4.7 |
|
Long-term operating lease liabilities, net of current portion |
|
|
95.0 |
|
|
|
101.9 |
|
Deferred tax liability |
|
|
7.7 |
|
|
|
6.4 |
|
Other liabilities |
|
|
11.4 |
|
|
|
17.6 |
|
TOTAL LIABILITIES |
|
|
1,332.9 |
|
|
|
1,150.8 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized, 1,200,000 Depositary Shares representing a 1/1000th fractional interest in a share of 10% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share, issued and outstanding at both September 30, 2023 and December 31, 2022 |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value per share, 200,000,000 shares authorized; 32,368,112 and 32,194,243 issued and outstanding at September 30, 2023 and December 31, 2022, respectively |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
226.5 |
|
|
|
222.8 |
|
Treasury stock at cost, 862,182 shares of common stock held at both September 30, 2023 and December 31, 2022 |
|
|
(5.9 |
) |
|
|
(5.9 |
) |
Accumulated deficit |
|
|
(71.8 |
) |
|
|
(74.2 |
) |
Accumulated other comprehensive loss |
|
|
(1.3 |
) |
|
|
(2.9 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
147.5 |
|
|
|
139.8 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
1,480.4 |
|
|
$ |
1,290.6 |
|
6
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except share and per share amounts)
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
New and used equipment sales |
$ |
253.6 |
|
|
$ |
210.1 |
|
|
$ |
727.8 |
|
|
$ |
579.0 |
|
Parts sales |
|
69.5 |
|
|
|
61.8 |
|
|
|
209.2 |
|
|
|
173.5 |
|
Service revenues |
|
60.6 |
|
|
|
54.3 |
|
|
|
180.5 |
|
|
|
154.2 |
|
Rental revenues |
|
54.0 |
|
|
|
50.2 |
|
|
|
147.1 |
|
|
|
131.5 |
|
Rental equipment sales |
|
28.5 |
|
|
|
28.6 |
|
|
|
90.7 |
|
|
|
105.0 |
|
Total revenues |
|
466.2 |
|
|
|
405.0 |
|
|
|
1,355.3 |
|
|
|
1,143.2 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
New and used equipment sales |
|
212.0 |
|
|
|
176.5 |
|
|
|
601.3 |
|
|
|
482.6 |
|
Parts sales |
|
45.3 |
|
|
|
40.0 |
|
|
|
138.2 |
|
|
|
116.7 |
|
Service revenues |
|
26.5 |
|
|
|
24.3 |
|
|
|
77.0 |
|
|
|
66.3 |
|
Rental revenues |
|
5.7 |
|
|
|
5.9 |
|
|
|
18.0 |
|
|
|
16.7 |
|
Rental depreciation |
|
29.6 |
|
|
|
25.9 |
|
|
|
80.1 |
|
|
|
69.5 |
|
Rental equipment sales |
|
21.0 |
|
|
|
20.8 |
|
|
|
66.5 |
|
|
|
82.6 |
|
Total cost of revenues |
|
340.1 |
|
|
|
293.4 |
|
|
|
981.1 |
|
|
|
834.4 |
|
Gross profit |
|
126.1 |
|
|
|
111.6 |
|
|
|
374.2 |
|
|
|
308.8 |
|
General and administrative expenses |
|
106.8 |
|
|
|
94.2 |
|
|
|
316.0 |
|
|
|
265.9 |
|
Non-rental depreciation and amortization |
|
5.4 |
|
|
|
3.7 |
|
|
|
16.0 |
|
|
|
11.6 |
|
Total operating expenses |
|
112.2 |
|
|
|
97.9 |
|
|
|
332.0 |
|
|
|
277.5 |
|
Income from operations |
|
13.9 |
|
|
|
13.7 |
|
|
|
42.2 |
|
|
|
31.3 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, floor plan payable – new equipment |
|
(2.4 |
) |
|
|
(0.8 |
) |
|
|
(5.8 |
) |
|
|
(1.6 |
) |
Interest expense – other |
|
(12.8 |
) |
|
|
(7.7 |
) |
|
|
(35.1 |
) |
|
|
(19.8 |
) |
Other income |
|
1.4 |
|
|
|
0.2 |
|
|
|
2.6 |
|
|
|
0.9 |
|
Total other expense, net |
|
(13.8 |
) |
|
|
(8.3 |
) |
|
|
(38.3 |
) |
|
|
(20.5 |
) |
Income before taxes |
|
0.1 |
|
|
|
5.4 |
|
|
|
3.9 |
|
|
|
10.8 |
|
Income tax (benefit) provision |
|
(7.3 |
) |
|
|
0.3 |
|
|
|
(6.9 |
) |
|
|
0.8 |
|
Net income |
|
7.4 |
|
|
|
5.1 |
|
|
|
10.8 |
|
|
|
10.0 |
|
Preferred stock dividends |
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
(2.2 |
) |
|
|
(2.2 |
) |
Net income available to common stockholders |
$ |
6.7 |
|
|
$ |
4.4 |
|
|
$ |
8.6 |
|
|
$ |
7.8 |
|
Basic income per share |
$ |
0.21 |
|
|
$ |
0.14 |
|
|
$ |
0.27 |
|
|
$ |
0.24 |
|
Diluted income per share |
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.26 |
|
|
$ |
0.24 |
|
Basic weighted average common shares outstanding |
|
32,368,112 |
|
|
|
31,981,843 |
|
|
|
32,320,346 |
|
|
|
32,091,353 |
|
Diluted weighted average common shares outstanding |
|
32,729,517 |
|
|
|
32,138,952 |
|
|
|
32,631,082 |
|
|
|
32,290,127 |
|
7
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
|
Nine Months Ended September 30, |
|
|||||
|
2023 |
|
|
2022 |
|
||
OPERATING ACTIVITIES |
|
|
|
|
|
||
Net income |
$ |
10.8 |
|
|
$ |
10.0 |
|
Adjustments to reconcile net income to net cash flows used in operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
96.1 |
|
|
|
81.1 |
|
Amortization of debt discount and debt issuance costs |
|
1.4 |
|
|
|
1.3 |
|
Imputed interest |
|
0.8 |
|
|
|
0.2 |
|
Loss (gain) on sale of property and equipment |
|
0.3 |
|
|
|
(0.2 |
) |
Gain on sale of rental equipment |
|
(24.2 |
) |
|
|
(22.6 |
) |
Provision for inventory obsolescence |
|
3.1 |
|
|
|
2.5 |
|
Provision for losses on accounts receivable |
|
5.1 |
|
|
|
4.0 |
|
Change in fair value of derivative instruments |
|
2.2 |
|
|
|
— |
|
Stock-based compensation expense |
|
3.3 |
|
|
|
1.9 |
|
Changes in deferred income taxes |
|
(7.4 |
) |
|
|
— |
|
Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
|
||
Accounts receivable |
|
(32.7 |
) |
|
|
(24.8 |
) |
Inventories |
|
(247.4 |
) |
|
|
(200.8 |
) |
Proceeds from sale of rental equipment |
|
90.7 |
|
|
|
105.1 |
|
Prepaid expenses and other assets |
|
(5.5 |
) |
|
|
(4.3 |
) |
Manufacturers floor plans payable |
|
97.9 |
|
|
|
37.8 |
|
Accounts payable, accrued expenses, customer deposits, and other current liabilities |
|
(6.9 |
) |
|
|
30.5 |
|
Leases, deferred revenue, and other liabilities |
|
(7.0 |
) |
|
|
(3.4 |
) |
Net cash (used in) provided by operating activities |
|
(19.4 |
) |
|
|
18.3 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
||
Expenditures for rental equipment |
|
(48.7 |
) |
|
|
(39.9 |
) |
Expenditures for property and equipment |
|
(8.6 |
) |
|
|
(6.9 |
) |
Proceeds from sale of property and equipment |
|
0.8 |
|
|
|
0.7 |
|
Guaranteed purchase obligations (expenditures) proceeds |
|
(2.5 |
) |
|
|
0.8 |
|
Expenditures for acquisitions, net of cash acquired |
|
(1.6 |
) |
|
|
(40.4 |
) |
Net cash used in investing activities |
|
(60.6 |
) |
|
|
(85.7 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
||
Proceeds from line of credit and long-term borrowings |
|
278.5 |
|
|
|
242.3 |
|
Principal payments on line of credit, long-term debt, and finance lease obligations |
|
(197.0 |
) |
|
|
(187.3 |
) |
Proceeds from non-manufacturer floor plan payable |
|
148.3 |
|
|
|
98.8 |
|
Payments on non-manufacturer floor plan payable |
|
(138.5 |
) |
|
|
(81.3 |
) |
Preferred stock dividends paid |
|
(2.2 |
) |
|
|
(2.2 |
) |
Common stock dividends declared and paid |
|
(5.7 |
) |
|
|
(1.8 |
) |
Other financing activities |
|
(5.2 |
) |
|
|
(1.2 |
) |
Net cash provided by financing activities |
|
78.2 |
|
|
|
67.3 |
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash |
|
0.5 |
|
|
|
(0.1 |
) |
NET CHANGE IN CASH |
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
|
|
|
|
||
Cash, Beginning of year |
|
2.7 |
|
|
|
2.3 |
|
Cash, End of period |
$ |
1.4 |
|
|
$ |
2.1 |
|
Supplemental schedule of noncash investing and financing activities: |
|
|
|
|
|
||
Noncash asset purchases: |
|
|
|
|
|
||
Net transfer of assets from inventory to rental fleet within property and equipment |
$ |
143.0 |
|
|
$ |
101.0 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
||
Cash paid for interest |
$ |
33.8 |
|
|
$ |
15.2 |
|
Cash paid for income taxes |
$ |
4.0 |
|
|
$ |
0.4 |
|
8
ALTA EQUIPMENT GROUP INC.
EARNINGS PRESS RELEASE
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in millions, except share and per share amounts)
|
September 30, |
|
|
December 31, |
|
||
Debt and Floor Plan Payables Analysis |
2023 |
|
|
2022 |
|
||
Senior secured second lien notes |
$ |
315.0 |
|
|
$ |
315.0 |
|
Line of credit |
|
305.3 |
|
|
|
219.5 |
|
Floor plan payable – new equipment |
|
280.6 |
|
|
|
211.5 |
|
Floor plan payable – used and rental equipment |
|
83.9 |
|
|
|
45.3 |
|
Finance lease obligations |
|
32.8 |
|
|
|
19.6 |
|
Total debt |
|
1,017.6 |
|
|
|
810.9 |
|
Adjustments: |
|
|
|
|
|
||
Floor plan payable – new equipment |
|
(280.6 |
) |
|
|
(211.5 |
) |
Cash |
|
(1.4 |
) |
|
|
(2.7 |
) |
Adjusted total net debt and floor plan payables(1) |
$ |
735.6 |
|
|
$ |
596.7 |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income available to common stockholders |
$ |
6.7 |
|
|
$ |
4.4 |
|
|
$ |
8.6 |
|
|
$ |
7.8 |
|
Depreciation and amortization |
|
35.0 |
|
|
|
29.6 |
|
|
|
96.1 |
|
|
|
81.1 |
|
Interest expense |
|
15.2 |
|
|
|
8.5 |
|
|
|
40.9 |
|
|
|
21.4 |
|
Income tax (benefit) provision |
|
(7.3 |
) |
|
|
0.3 |
|
|
|
(6.9 |
) |
|
|
0.8 |
|
EBITDA(1) |
$ |
49.6 |
|
|
$ |
42.8 |
|
|
$ |
138.7 |
|
|
|
111.1 |
|
Transaction costs(2) |
|
0.3 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
0.3 |
|
Stock-based incentives(4) |
|
1.4 |
|
|
|
0.8 |
|
|
|
3.3 |
|
|
|
1.9 |
|
Other expenses(5) |
|
1.4 |
|
|
|
0.3 |
|
|
|
2.3 |
|
|
|
1.5 |
|
Preferred stock dividend(6) |
|
0.7 |
|
|
|
0.7 |
|
|
|
2.2 |
|
|
|
2.2 |
|
Showroom-ready equipment interest expense(7) |
|
(2.4 |
) |
|
|
(0.8 |
) |
|
|
(5.8 |
) |
|
|
(1.6 |
) |
Adjusted EBITDA(1) |
$ |
51.0 |
|
|
$ |
44.0 |
|
|
$ |
141.7 |
|
|
$ |
115.4 |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income available to common stockholders |
$ |
6.7 |
|
|
$ |
4.4 |
|
|
$ |
8.6 |
|
|
$ |
7.8 |
|
Transaction costs(2) |
|
0.3 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
0.3 |
|
Intangible amortization(3) |
|
2.0 |
|
|
|
1.0 |
|
|
|
6.4 |
|
|
|
4.0 |
|
Stock-based incentives(4) |
|
1.4 |
|
|
|
0.8 |
|
|
|
3.3 |
|
|
|
1.9 |
|
Other expenses(5) |
|
1.4 |
|
|
|
0.3 |
|
|
|
2.3 |
|
|
|
1.5 |
|
Adjusted net income available to common stockholders(1) |
$ |
11.8 |
|
|
$ |
6.7 |
|
|
$ |
21.6 |
|
|
$ |
15.5 |
|
Basic net income per share |
$ |
0.21 |
|
|
$ |
0.14 |
|
|
$ |
0.27 |
|
|
$ |
0.24 |
|
Diluted net income per share |
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.26 |
|
|
$ |
0.24 |
|
Adjusted basic net income per share(1) |
$ |
0.36 |
|
|
$ |
0.21 |
|
|
$ |
0.67 |
|
|
$ |
0.48 |
|
Adjusted diluted net income per share(1) |
$ |
0.36 |
|
|
$ |
0.21 |
|
|
$ |
0.66 |
|
|
$ |
0.48 |
|
Basic weighted average common shares outstanding |
|
32,368,112 |
|
|
|
31,981,843 |
|
|
|
32,320,346 |
|
|
|
32,091,353 |
|
Diluted weighted average common shares outstanding |
|
32,729,517 |
|
|
|
32,138,952 |
|
|
|
32,631,082 |
|
|
|
32,290,127 |
|
(1) Represents Non-GAAP measure
(2) Expenses related to acquisition, capital raising and debt refinancing activities
(3) Represents incremental expense associated with the amortization of other intangible assets relating to acquisition accounting
(4) Reflects non-cash equity-based compensation expenses
(5) Other non-recurring expenses inclusive of severance payments, greenfield startup, legal and consulting costs, and non-cash adjustments to earnout contingencies
(6) Expenses related to preferred stock dividend payments
(7) Represents interest expense associated with showroom-ready new equipment interest included in total interest expense above
9