Alta Equipment Group Inc 8-K, filed Aug 9, 2022

Alta Equipment Group Inc. (ALTG)

8-K 2022-08-09 For: 2022-06-30

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Added on April 07, 2026

About this 8-K

Alta Equipment Group Inc filed this 8-K on August 9, 2022, reporting on events of June 30, 2022.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	001-38864	83-2583782
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.0001 par value per share	ALTG	The New York Stock Exchange
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	ALTG PRA	The New York Stock Exchange


Exhibit No.		Description

99.1*		Press Release, dated August 9, 2022.

Ex-104		Cover Page Interactive Data File (embedded within the Inline XBRL document).


	ALTA EQUIPMENT GROUP INC.

Dated: August 9, 2022	By:	/s/ Ryan Greenawalt
		Name: Ryan Greenawalt
		Title: Chief Executive Officer


	Three Months Ended June 30,						Increase (Decrease)					Six Months Ended June 30,						Increase (Decrease)
	2022			2021			2022 versus 2021					2022			2021			2022 versus 2021
Revenues:
New and used equipment sales	$	217.3		$	132.0		$	85.3		64.6	%	$	368.9		$	255.8		$	113.1		44.2	%
Parts sales		58.3			44.1			14.2		32.2	%		111.7			85.5			26.2		30.6	%
Service revenue		51.7			42.4			9.3		21.9	%		99.9			81.1			18.8		23.2	%
Rental revenue		43.6			38.2			5.4		14.1	%		81.3			71.3			10.0		14.0	%
Rental equipment sales		35.6			36.0			(0.4	)	(1.1	)%		76.4			67.8			8.6		12.7	%
Total revenues	$	406.5		$	292.7		$	113.8		38.9	%	$	738.2		$	561.5		$	176.7		31.5	%

Cost of revenues:
New and used equipment sales	$	182.2		$	112.5		$	69.7		62.0	%	$	306.1		$	219.0		$	87.1		39.8	%
Parts sales		40.0			30.6			9.4		30.7	%		76.7			59.3			17.4		29.3	%
Service revenue		21.9			16.4			5.5		33.5	%		42.0			30.9			11.1		35.9	%
Rental revenue		5.4			5.2			0.2		3.8	%		10.8			10.7			0.1		0.9	%
Rental depreciation		23.3			21.3			2.0		9.4	%		43.6			40.7			2.9		7.1	%
Rental equipment sales		27.9			29.8			(1.9	)	(6.4	)%		61.8			56.7			5.1		9.0	%
Cost of revenues	$	300.7		$	215.8		$	84.9		39.3	%	$	541.0		$	417.3		$	123.7		29.6	%

Gross profit	$	105.8		$	76.9		$	28.9		37.6	%	$	197.2		$	144.2		$	53.0		36.8	%

General and administrative expenses	$	88.8		$	71.1		$	17.7		24.9	%	$	171.7		$	135.9		$	35.8		26.3	%
Depreciation and amortization expense		4.0			2.6			1.4		53.8	%		7.9			4.6			3.3		71.7	%
Total general and administrative expenses	$	92.8		$	73.7		$	19.1		25.9	%	$	179.6		$	140.5		$	39.1		27.8	%

Income from operations	$	13.0		$	3.2		$	9.8		306.3	%	$	17.6		$	3.7		$	13.9		375.7	%

Other (expense) income:
Interest expense, floor plan payable – new equipment	$	(0.5	)	$	(0.5	)	$	—		—		$	(0.8	)	$	(1.0	)	$	0.2		(20.0	)%
Interest expense – other		(6.3	)		(5.5	)		(0.8	)	14.5	%		(12.1	)		(10.8	)		(1.3	)	12.0	%
Other income		0.4			—			0.4		100.0	%		0.7			0.1			0.6		600.0	%
Loss on extinguishment of debt		—			(11.9	)		11.9		(100.0	)%		—			(11.9	)		11.9		(100.0	)%
Total other expense	$	(6.4	)	$	(17.9	)	$	11.5		(64.2	)%	$	(12.2	)	$	(23.6	)	$	11.4		(48.3	)%

Income (loss) before taxes	$	6.6		$	(14.7	)	$	21.3		(144.9	)%	$	5.4		$	(19.9	)	$	25.3		(127.1	)%

Income tax provision		0.5			—			0.5		100.0	%		0.5			0.5			—		—
Net income (loss)	$	6.1		$	(14.7	)	$	20.8		(141.5	)%	$	4.9		$	(20.4	)	$	25.3		(124.0	)%

Preferred stock dividends		(0.7	)		(1.1	)		0.4		(36.4	)%		(1.5	)		(1.1	)		(0.4	)	36.4	%
Net income (loss) available to common shareholders	$	5.4		$	(15.8	)	$	21.2		(134.2	)%	$	3.4		$	(21.5	)	$	24.9		(115.8	)%


☐	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))


What:	Alta Equipment Group Second Quarter 2022 Earnings Call and Webcast
Date:	Tuesday, August 9, 2022
Time:	5:00 p.m. Eastern Time
Live call:	(888) 660-6153
International:	(929) 203-1911
Live call access code:	7327860
Audio Replay:	(800) 770-2030
Replay access code:	7327860
Webcast:	https://events.q4inc.com/attendee/279364861


(in millions, except share and per share amounts)	June 30, 2022			December 31, 2021
ASSETS
CURRENT ASSETS
Cash	$	0.5		$	2.3
Accounts receivable, net of allowances of $11.8 and $10.7 as of June 30, 2022 and December 31, 2021, respectively		211.2			182.7
Inventories, net		296.6			239.2
Prepaid expenses and other current assets		30.4			24.4
Total current assets	$	538.7		$	448.6

Property and equipment, net		346.7			344.5
Operating lease right-of-use assets, net		98.2			102.6
OTHER ASSETS
Goodwill	$	44.1		$	41.9
Other intangible assets, net		40.4			43.4
Other assets		3.0			1.6
Total other assets	$	87.5		$	86.9
TOTAL ASSETS	$	1,071.1		$	982.6

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Lines of credit, net	$	123.6		$	98.4
Floor plan payable – new equipment		151.7			114.2
Floor plan payable – used and rental equipment		46.9			40.6
Current portion of long-term debt		3.1			2.6
Accounts payable		77.4			73.5
Customer deposits		21.3			16.7
Accrued expenses		41.3			39.3
Current operating lease liabilities		16.3			16.2
Other current liabilities		25.0			19.1
Total current liabilities	$	506.6		$	420.6

LONG-TERM LIABILITIES
Long-term debt, net of current portion		310.4			310.0
Finance lease obligations, net of current portion		11.9			9.0
Deferred revenue, net of current portion		3.6			4.2
Guaranteed purchase obligations, net of current portion		4.2			5.2
Long-term operating lease liabilities, net of current portion		84.9			88.4
Deferred tax liability		6.9			6.9
Other liabilities		3.4			3.6
TOTAL LIABILITIES	$	931.9		$	847.9
CONTINGENCIES - NOTE 12
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value, 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 June 30, 2022 and December 31, 2021, respectively	$	—		$	—
Common stock, $0.0001 par value, 200,000,000 shares authorized; 31,981,843 and 32,363,376 issued and outstanding at June 30, 2022 and December 31, 2021, respectively		—			—
Additional paid-in capital		218.5			217.4
Treasury stock at cost, 862,182 and 390,000 shares of common stock held at June 30, 2022 and December 31, 2021, respectively		(5.9	)		(5.9	)
Accumulated deficit		(73.4	)		(76.8	)
TOTAL STOCKHOLDERS’ EQUITY	$	139.2		$	134.7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,071.1		$	982.6


	Six Months Ended June 30,
(amounts in millions)	2022			2021
OPERATING ACTIVITIES
Net income (loss)	$	4.9		$	(20.4	)
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation and amortization		51.5			45.3
Amortization of debt discount and debt issuance costs		0.7			0.8
Imputed interest		0.1			0.2
Gain on sale of property and equipment		(0.1	)		—
Gain on sale of rental equipment		(14.6	)		(11.1	)
Provision for inventory obsolescence		1.9			0.4
Provision for bad debt		2.4			2.3
Loss on debt extinguishment		—			11.9
Share-based compensation expense		1.1			0.5
Changes in deferred income taxes		—			0.5
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(30.7	)		(18.6	)
Inventories		(131.7	)		(85.6	)
Proceeds from sale of rental equipment		76.4			67.8
Prepaid expenses and other assets		(7.3	)		(8.2	)
Manufacturers floor plans payable		31.7			6.0
Accounts payable, accrued expenses, customer deposits, and other current liabilities		16.7			19.2
Leases, deferred revenue, and other liabilities		0.4			(0.8	)
Net cash provided by operating activities	$	3.4		$	10.2
INVESTING ACTIVITIES
Expenditures for rental equipment	$	(30.3	)	$	(22.8	)
Expenditures for property and equipment		(4.2	)		(3.3	)
Proceeds from sale of property and equipment		0.3			1.1
Expenditures for guaranteed purchase obligations		(1.7	)		(1.2	)
Expenditures for acquisitions, net of cash acquired		(1.5	)		(2.6	)
Net cash used in investing activities	$	(37.4	)	$	(28.8	)
FINANCING ACTIVITIES
Expenditures for debt issuance costs	$	—		$	(1.6	)
Extinguishment of long-term debt		—			(153.1	)
Proceeds from lines of credit and long-term borrowings		166.7			488.3
Principal payments on lines of credit, long-term debt and finance lease obligations		(143.4	)		(306.9	)
Proceeds from floor plan payable with unaffiliated source		64.6			52.3
Payments on floor plan payable with unaffiliated source		(52.5	)		(57.7	)
Preferred dividends paid		(1.5	)		(1.1	)
Payment of promissory note		—			(1.0	)
Other financing activities		(1.7	)		—
Net cash provided by financing activities	$	32.2		$	19.2

NET CHANGE IN CASH		(1.8	)		0.6

Cash, Beginning of year		2.3			1.2
Cash, End of period	$	0.5		$	1.8
Supplemental schedule of noncash investing and financing activities:
Noncash asset purchases:
Net transfer of assets from inventory to rental fleet within property and equipment	$	69.9		$	86.3
Supplemental disclosures of cash flow information
Cash paid for interest	$	11.9		$	8.3