Alta Equipment Group Inc. (NYSE: ALTG) (“Alta”, "we", "our" or the
“Company”), a leading provider of premium material handling,
construction and environmental processing equipment and related
services, today announced financial results for the second quarter
ended June 30, 2024.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of
Alta, said “Our business rebounded well this quarter from the
seasonally-challenged first quarter and in the face of a moderating
market environment for new equipment sales. Notably, our product
support business performed well in this moderating environment as
we continued to achieve organic growth on increased field
population with revenues increasing to a record of $144.2 million,
an increase of $13.2 million from a year ago. Additionally, our
Material Handling segment also continued on its steady path of
profitable growth as we progressively execute on a solid sales
backlog and gain market share in strategic regions and product
categories throughout our footprint. We also saw a rebound in our
Master Distribution segment as revenue in the quarter was $16.7
million versus $12.8 million in the first quarter. While we
benefited from a return to normal seasonality and a strong quarter
from our Material Handling segment and our product support business
lines, market unit volumes in our Construction Equipment segment
remain under pressure due to uncertainty regarding interest rates
and the election outcome, especially affecting small to mid-size
contractors. Additionally, our construction equipment sales margins
continued to be impacted by the oversupply of competitive new
equipment on the market in the quarter.”
Mr. Greenawalt continued, “In the second
quarter, we gained further traction in our eMobility segment, which
expands the Alta dealership model into the over-the-road commercial
vehicle industry with a focus on commercial electric vehicles and
fueling and charging infrastructure. To that end, we are excited
about our new partnership with Harbinger Motors, a new manufacturer
of best-in-class commercial electric vehicles in the medium-duty
truck space. With the inclusion of Harbinger to our portfolio and
the traction gained with new customers in the quarter, we now have
approximately $25 million of sales backlog in the eMobility
business that we expect the majority to convert to revenues in the
second half of 2024.”
In conclusion, Mr. Greenawalt commented, “As we head into the
second half of 2024 and into 2025, cost and fleet optimization and
other initiatives to streamline our business will be high
priorities as we calibrate to the transitioning environment.
Despite what we believe to be potentially transitory headwinds for
new equipment sales, our long-term outlook for our Construction
Equipment segment remains positive. Infrastructure related project
pipelines are significant. We expect state DOT budgets to remain
elevated in 2025 and spending on federal infrastructure programs is
still in the early innings. In the Material Handling segment, we’re
proud to be a world-class partner of Hyster-Yale Materials Handling
and believe that their product portfolio and commitment to advanced
technologies combined with our diversified end-markets will allow
us to gain market share in key regions in the years to come,
regardless of volatility in the macro environment. I sincerely want
to thank all of our 3,000 dedicated employees for their hard work
and commitment to our business and to one another through the first
half of the year.”
Full Year 2024 Financial Guidance and
Other Financial Notes:
- The Company updates our guidance range and now expects to
report Adjusted EBITDA between $190.0 million and $200.0 million
for the 2024 fiscal year.
- On June 5, 2024, the Company sold $500.0 million of Senior
Secured Second Lien Notes at the rate of 9.000% per annum, which
are due on June 1, 2029 ("2029 Notes"). With the proceeds, the
Company extinguished our $315.0 million of Senior Secured Second
Lien Notes due April 2026. The Company recorded a loss on debt
extinguishment of $6.7 million.
- Concurrently with the 2029 Notes, the Company amended our ABL
First Lien Credit Agreement to extend the maturity date to 2029 and
increase the facility size to $520.0 million.
- Concurrently with the 2029 Notes, the Company amended our ABL
First Lien Credit Agreement to increase the floor plan facility to
$90.0 million.
- During the second quarter, the Company repurchased 231,334
shares for $2.0 million. We have remaining repurchase authorization
of $10.5 million.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited) |
(amounts in millions unless otherwise noted) |
|
|
Three Months EndedJune 30, |
|
|
Increase(Decrease) |
|
|
Six Months EndedJune 30, |
|
|
Increase(Decrease) |
|
|
2024 |
|
|
2023 |
|
|
2024 versus2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 versus2023 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New and used equipment sales |
$ |
251.5 |
|
|
$ |
254.6 |
|
|
$ |
(3.1 |
) |
|
|
(1.2 |
)% |
|
$ |
480.1 |
|
|
$ |
474.2 |
|
|
$ |
5.9 |
|
|
|
1.2 |
% |
Parts sales |
|
78.0 |
|
|
|
71.3 |
|
|
|
6.7 |
|
|
|
9.4 |
% |
|
|
150.9 |
|
|
|
139.7 |
|
|
|
11.2 |
|
|
|
8.0 |
% |
Service revenues |
|
66.2 |
|
|
|
59.7 |
|
|
|
6.5 |
|
|
|
10.9 |
% |
|
|
130.2 |
|
|
|
119.9 |
|
|
|
10.3 |
|
|
|
8.6 |
% |
Rental revenues |
|
53.7 |
|
|
|
49.6 |
|
|
|
4.1 |
|
|
|
8.3 |
% |
|
|
102.2 |
|
|
|
93.1 |
|
|
|
9.1 |
|
|
|
9.8 |
% |
Rental equipment sales |
|
38.7 |
|
|
|
33.2 |
|
|
|
5.5 |
|
|
|
16.6 |
% |
|
|
66.3 |
|
|
|
62.2 |
|
|
|
4.1 |
|
|
|
6.6 |
% |
Total revenues |
|
488.1 |
|
|
|
468.4 |
|
|
|
19.7 |
|
|
|
4.2 |
% |
|
|
929.7 |
|
|
|
889.1 |
|
|
|
40.6 |
|
|
|
4.6 |
% |
Cost of
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New and used equipment sales |
|
211.9 |
|
|
|
210.3 |
|
|
|
1.6 |
|
|
|
0.8 |
% |
|
|
404.3 |
|
|
|
389.3 |
|
|
|
15.0 |
|
|
|
3.9 |
% |
Parts sales |
|
50.9 |
|
|
|
47.5 |
|
|
|
3.4 |
|
|
|
7.2 |
% |
|
|
99.2 |
|
|
|
92.9 |
|
|
|
6.3 |
|
|
|
6.8 |
% |
Service revenues |
|
26.9 |
|
|
|
25.4 |
|
|
|
1.5 |
|
|
|
5.9 |
% |
|
|
53.9 |
|
|
|
50.5 |
|
|
|
3.4 |
|
|
|
6.7 |
% |
Rental revenues |
|
6.2 |
|
|
|
6.2 |
|
|
|
— |
|
|
|
— |
|
|
|
12.9 |
|
|
|
12.3 |
|
|
|
0.6 |
|
|
|
4.9 |
% |
Rental depreciation |
|
30.8 |
|
|
|
27.6 |
|
|
|
3.2 |
|
|
|
11.6 |
% |
|
|
57.9 |
|
|
|
50.5 |
|
|
|
7.4 |
|
|
|
14.7 |
% |
Rental equipment sales |
|
29.4 |
|
|
|
24.6 |
|
|
|
4.8 |
|
|
|
19.5 |
% |
|
|
48.9 |
|
|
|
45.5 |
|
|
|
3.4 |
|
|
|
7.5 |
% |
Total cost of revenues |
|
356.1 |
|
|
|
341.6 |
|
|
|
14.5 |
|
|
|
4.2 |
% |
|
|
677.1 |
|
|
|
641.0 |
|
|
|
36.1 |
|
|
|
5.6 |
% |
Gross profit |
|
132.0 |
|
|
|
126.8 |
|
|
|
5.2 |
|
|
|
4.1 |
% |
|
|
252.6 |
|
|
|
248.1 |
|
|
|
4.5 |
|
|
|
1.8 |
% |
General and administrative
expenses |
|
114.5 |
|
|
|
105.2 |
|
|
|
9.3 |
|
|
|
8.8 |
% |
|
|
229.1 |
|
|
|
209.2 |
|
|
|
19.9 |
|
|
|
9.5 |
% |
Non-rental depreciation and
amortization |
|
7.2 |
|
|
|
5.4 |
|
|
|
1.8 |
|
|
|
33.3 |
% |
|
|
14.1 |
|
|
|
10.6 |
|
|
|
3.5 |
|
|
|
33.0 |
% |
Total operating expenses |
|
121.7 |
|
|
|
110.6 |
|
|
|
11.1 |
|
|
|
10.0 |
% |
|
|
243.2 |
|
|
|
219.8 |
|
|
|
23.4 |
|
|
|
10.6 |
% |
Income from operations |
|
10.3 |
|
|
|
16.2 |
|
|
|
(5.9 |
) |
|
|
(36.4 |
)% |
|
|
9.4 |
|
|
|
28.3 |
|
|
|
(18.9 |
) |
|
|
(66.8 |
)% |
Other (expense)
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, floor plan payable – new equipment |
|
(2.7 |
) |
|
|
(1.9 |
) |
|
|
(0.8 |
) |
|
|
42.1 |
% |
|
|
(5.5 |
) |
|
|
(3.4 |
) |
|
|
(2.1 |
) |
|
|
61.8 |
% |
Interest expense – other |
|
(16.5 |
) |
|
|
(11.8 |
) |
|
|
(4.7 |
) |
|
|
39.8 |
% |
|
|
(29.8 |
) |
|
|
(22.3 |
) |
|
|
(7.5 |
) |
|
|
33.6 |
% |
Other income |
|
1.0 |
|
|
|
0.2 |
|
|
|
0.8 |
|
|
|
400.0 |
% |
|
|
1.9 |
|
|
|
1.2 |
|
|
|
0.7 |
|
|
|
58.3 |
% |
Loss on extinguishment of debt |
|
(6.7 |
) |
|
|
— |
|
|
|
(6.7 |
) |
|
NM |
|
|
|
(6.7 |
) |
|
|
— |
|
|
|
(6.7 |
) |
|
NM |
|
Total other expense, net |
|
(24.9 |
) |
|
|
(13.5 |
) |
|
|
(11.4 |
) |
|
|
84.4 |
% |
|
|
(40.1 |
) |
|
|
(24.5 |
) |
|
|
(15.6 |
) |
|
|
63.7 |
% |
(Loss) income before taxes |
|
(14.6 |
) |
|
|
2.7 |
|
|
|
(17.3 |
) |
|
NM |
|
|
|
(30.7 |
) |
|
|
3.8 |
|
|
|
(34.5 |
) |
|
NM |
|
Income tax (benefit)
provision |
|
(2.7 |
) |
|
|
0.3 |
|
|
|
(3.0 |
) |
|
NM |
|
|
|
(6.9 |
) |
|
|
0.4 |
|
|
|
(7.3 |
) |
|
NM |
|
Net (loss) income |
|
(11.9 |
) |
|
|
2.4 |
|
|
|
(14.3 |
) |
|
NM |
|
|
|
(23.8 |
) |
|
|
3.4 |
|
|
|
(27.2 |
) |
|
NM |
|
Preferred stock dividends |
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.5 |
) |
|
|
(1.5 |
) |
|
|
— |
|
|
|
— |
|
Net (loss) income available to common
stockholders |
$ |
(12.6 |
) |
|
$ |
1.7 |
|
|
$ |
(14.3 |
) |
|
NM |
|
|
$ |
(25.3 |
) |
|
$ |
1.9 |
|
|
$ |
(27.2 |
) |
|
NM |
|
NM - calculated change not
meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 first
quarter ended June 30, 2024. 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 Second Quarter 2024 Earnings Call and
Webcast |
Date: |
Wednesday, August 7, 2024 |
Time: |
5:00 p.m. Eastern Time |
Live call: |
(833) 470-1428 |
International: |
https://www.netroadshow.com/events/login?show=e4b5b474&confId=67165 |
Live call access code: |
225050 |
Audio replay: |
866-813-9403 |
Replay access code: |
812356 |
Webcast: |
https://events.q4inc.com/attendee/130623837 |
The audio replay will be archived through August 21, 2024.
About Alta Equipment Group Inc.
Alta owns and operates one of the largest
integrated equipment dealership platforms in North America. Through
our branch network, we sell, rent, and provide parts and service
support for several categories of specialized equipment, including
lift trucks and other material handling equipment, heavy and
compact earthmoving equipment, crushing and screening equipment,
environmental processing equipment, cranes and aerial work
platforms, paving and asphalt equipment, other construction
equipment and allied products. Alta has operated as an equipment
dealership for 40 years and has developed a branch network that
includes over 85 total locations across 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 and Quebec. 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.altg.com.
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; fluctuations in interest rates; the
demand and market price for our equipment and product support;
collective bargaining agreements and our relationship with our
union-represented employees; 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. 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 our 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, revenues, 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 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, LLCkevin@scr-ir.com (225) 772-0254
Media:Glenn MooreAlta Equipment
Group, LLCglenn.moore@altg.com(248) 305-2134
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
(in millions, except share and per share
amounts) |
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
ASSETS |
|
|
|
|
|
Cash |
$ |
4.5 |
|
|
$ |
31.0 |
|
Accounts receivable, net of
allowances of $14.5 and $12.4 as of June 30, 2024 and
December 31, 2023, respectively |
|
251.9 |
|
|
|
249.3 |
|
Inventories, net |
|
547.3 |
|
|
|
530.7 |
|
Prepaid expenses and other
current assets |
|
32.2 |
|
|
|
27.0 |
|
Total current assets |
|
835.9 |
|
|
|
838.0 |
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
Property and equipment, net |
|
485.4 |
|
|
|
464.8 |
|
Operating lease right-of-use
assets, net |
|
110.1 |
|
|
|
110.9 |
|
Goodwill |
|
78.1 |
|
|
|
76.7 |
|
Other intangible assets, net |
|
61.2 |
|
|
|
66.3 |
|
Other assets |
|
20.6 |
|
|
|
14.2 |
|
TOTAL ASSETS |
$ |
1,591.3 |
|
|
$ |
1,570.9 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Floor plan payable – new
equipment |
$ |
298.4 |
|
|
$ |
297.8 |
|
Floor plan payable – used and
rental equipment |
|
99.9 |
|
|
|
99.5 |
|
Current portion of long-term
debt |
|
9.4 |
|
|
|
7.7 |
|
Accounts payable |
|
93.8 |
|
|
|
97.0 |
|
Customer deposits |
|
19.1 |
|
|
|
17.4 |
|
Accrued expenses |
|
52.5 |
|
|
|
59.7 |
|
Current operating lease
liabilities |
|
15.5 |
|
|
|
15.9 |
|
Current deferred revenue |
|
14.6 |
|
|
|
16.2 |
|
Other current liabilities |
|
7.2 |
|
|
|
23.9 |
|
Total current liabilities |
|
610.4 |
|
|
|
635.1 |
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
Line of credit, net |
|
214.2 |
|
|
|
315.9 |
|
Long-term debt, net of current
portion |
|
477.4 |
|
|
|
312.3 |
|
Finance lease obligations, net of
current portion |
|
35.7 |
|
|
|
31.1 |
|
Deferred revenue, net of current
portion |
|
4.1 |
|
|
|
4.2 |
|
Long-term operating lease
liabilities, net of current portion |
|
99.7 |
|
|
|
99.6 |
|
Deferred tax liabilities |
|
10.8 |
|
|
|
7.7 |
|
Other liabilities |
|
13.8 |
|
|
|
15.3 |
|
TOTAL LIABILITIES |
|
1,466.1 |
|
|
|
1,421.2 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Preferred stock, $0.0001 par
value per share, 1,000,000 shares authorized, 1,200 shares issued
and outstanding at both June 30, 2024 and December 31,
2023 (1,200,000 Depositary Shares representing a 1/1000th
fractional interest in a share of 10% Series A Cumulative Perpetual
Preferred Stock) |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value
per share, 200,000,000 shares authorized; 32,950,141 and 32,369,820
shares issued and outstanding at June 30, 2024 and
December 31, 2023, respectively |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
240.7 |
|
|
|
233.8 |
|
Treasury stock at cost, 1,093,516
and 862,182 shares of common stock held at June 30, 2024 and
December 31, 2023, respectively |
|
(7.9 |
) |
|
|
(5.9 |
) |
Accumulated deficit |
|
(105.6 |
) |
|
|
(76.4 |
) |
Accumulated other comprehensive
loss |
|
(2.0 |
) |
|
|
(1.8 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
125.2 |
|
|
|
149.7 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,591.3 |
|
|
$ |
1,570.9 |
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
(in
millions, except share and per share amounts) |
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
New and used equipment sales |
$ |
251.5 |
|
|
$ |
254.6 |
|
|
$ |
480.1 |
|
|
$ |
474.2 |
|
Parts sales |
|
78.0 |
|
|
|
71.3 |
|
|
|
150.9 |
|
|
|
139.7 |
|
Service revenues |
|
66.2 |
|
|
|
59.7 |
|
|
|
130.2 |
|
|
|
119.9 |
|
Rental revenues |
|
53.7 |
|
|
|
49.6 |
|
|
|
102.2 |
|
|
|
93.1 |
|
Rental equipment sales |
|
38.7 |
|
|
|
33.2 |
|
|
|
66.3 |
|
|
|
62.2 |
|
Total revenues |
|
488.1 |
|
|
|
468.4 |
|
|
|
929.7 |
|
|
|
889.1 |
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
|
|
|
New and used equipment sales |
|
211.9 |
|
|
|
210.3 |
|
|
|
404.3 |
|
|
|
389.3 |
|
Parts sales |
|
50.9 |
|
|
|
47.5 |
|
|
|
99.2 |
|
|
|
92.9 |
|
Service revenues |
|
26.9 |
|
|
|
25.4 |
|
|
|
53.9 |
|
|
|
50.5 |
|
Rental revenues |
|
6.2 |
|
|
|
6.2 |
|
|
|
12.9 |
|
|
|
12.3 |
|
Rental depreciation |
|
30.8 |
|
|
|
27.6 |
|
|
|
57.9 |
|
|
|
50.5 |
|
Rental equipment sales |
|
29.4 |
|
|
|
24.6 |
|
|
|
48.9 |
|
|
|
45.5 |
|
Total cost of revenues |
|
356.1 |
|
|
|
341.6 |
|
|
|
677.1 |
|
|
|
641.0 |
|
Gross profit |
|
132.0 |
|
|
|
126.8 |
|
|
|
252.6 |
|
|
|
248.1 |
|
General and administrative
expenses |
|
114.5 |
|
|
|
105.2 |
|
|
|
229.1 |
|
|
|
209.2 |
|
Non-rental depreciation and
amortization |
|
7.2 |
|
|
|
5.4 |
|
|
|
14.1 |
|
|
|
10.6 |
|
Total operating expenses |
|
121.7 |
|
|
|
110.6 |
|
|
|
243.2 |
|
|
|
219.8 |
|
Income from operations |
|
10.3 |
|
|
|
16.2 |
|
|
|
9.4 |
|
|
|
28.3 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, floor plan payable – new equipment |
|
(2.7 |
) |
|
|
(1.9 |
) |
|
|
(5.5 |
) |
|
|
(3.4 |
) |
Interest expense – other |
|
(16.5 |
) |
|
|
(11.8 |
) |
|
|
(29.8 |
) |
|
|
(22.3 |
) |
Other income |
|
1.0 |
|
|
|
0.2 |
|
|
|
1.9 |
|
|
|
1.2 |
|
Loss on extinguishment of debt |
|
(6.7 |
) |
|
|
— |
|
|
|
(6.7 |
) |
|
|
— |
|
Total other expense, net |
|
(24.9 |
) |
|
|
(13.5 |
) |
|
|
(40.1 |
) |
|
|
(24.5 |
) |
(Loss) income before taxes |
|
(14.6 |
) |
|
|
2.7 |
|
|
|
(30.7 |
) |
|
|
3.8 |
|
Income tax (benefit)
provision |
|
(2.7 |
) |
|
|
0.3 |
|
|
|
(6.9 |
) |
|
|
0.4 |
|
Net (loss) income |
|
(11.9 |
) |
|
|
2.4 |
|
|
|
(23.8 |
) |
|
|
3.4 |
|
Preferred stock dividends |
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
(1.5 |
) |
|
|
(1.5 |
) |
Net (loss) income available to common
stockholders |
$ |
(12.6 |
) |
|
$ |
1.7 |
|
|
$ |
(25.3 |
) |
|
$ |
1.9 |
|
Basic (loss) income per share |
$ |
(0.38 |
) |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
$ |
0.06 |
|
Diluted (loss) income per share |
$ |
(0.38 |
) |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
$ |
0.06 |
|
Basic weighted average common shares
outstanding |
|
33,239,620 |
|
|
|
32,368,112 |
|
|
|
33,174,158 |
|
|
|
32,296,067 |
|
Diluted weighted average common shares
outstanding |
|
33,239,620 |
|
|
|
32,731,422 |
|
|
|
33,174,158 |
|
|
|
32,581,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
(in millions) |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
Net (loss) income |
$ |
(23.8 |
) |
|
$ |
3.4 |
|
Adjustments to reconcile net (loss) income to net cash flows used
in operating activities |
|
|
|
|
|
Depreciation and amortization |
|
72.0 |
|
|
|
61.1 |
|
Amortization of debt discount and debt issuance costs |
|
1.1 |
|
|
|
0.8 |
|
Imputed interest |
|
0.2 |
|
|
|
0.5 |
|
Loss (gain) on sale of property and equipment |
|
— |
|
|
|
0.3 |
|
Gain on sale of rental equipment |
|
(17.4 |
) |
|
|
(16.7 |
) |
Provision for inventory obsolescence |
|
0.5 |
|
|
|
1.2 |
|
Provision for losses on accounts receivable |
|
3.5 |
|
|
|
3.4 |
|
Loss on debt extinguishment |
|
6.7 |
|
|
|
— |
|
Change in fair value of derivative instruments |
|
(0.2 |
) |
|
|
0.5 |
|
Stock-based compensation expense |
|
2.6 |
|
|
|
1.9 |
|
Changes in deferred income taxes |
|
(6.8 |
) |
|
|
— |
|
Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
|
Accounts receivable |
|
(6.5 |
) |
|
|
1.5 |
|
Inventories |
|
(109.6 |
) |
|
|
(200.6 |
) |
Proceeds from sale of rental equipment |
|
66.3 |
|
|
|
62.2 |
|
Prepaid expenses and other assets |
|
— |
|
|
|
(7.6 |
) |
Manufacturers floor plans payable |
|
5.2 |
|
|
|
86.1 |
|
Accounts payable, accrued expenses, customer deposits, and other
current liabilities |
|
(14.5 |
) |
|
|
(27.7 |
) |
Leases, deferred revenue, net of current portion and other
liabilities |
|
(0.3 |
) |
|
|
(4.1 |
) |
Net cash used in operating activities |
|
(21.0 |
) |
|
|
(33.8 |
) |
INVESTING
ACTIVITIES |
|
|
|
|
|
Expenditures for rental equipment |
|
(30.6 |
) |
|
|
(32.3 |
) |
Expenditures for property and equipment |
|
(7.2 |
) |
|
|
(6.1 |
) |
Proceeds from sale of property and equipment |
|
1.9 |
|
|
|
0.7 |
|
Acquisitions of businesses, net of cash acquired |
|
— |
|
|
|
(1.4 |
) |
Other investing activities |
|
(1.5 |
) |
|
|
(1.5 |
) |
Net cash used in investing activities |
|
(37.4 |
) |
|
|
(40.6 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
|
Expenditures for debt issuance costs |
|
(1.8 |
) |
|
|
— |
|
Extinguishment of long-term debt |
|
(319.4 |
) |
|
|
— |
|
Proceeds from line of credit and long-term borrowings |
|
849.3 |
|
|
|
203.5 |
|
Principal payments on line of credit, long-term debt, and finance
lease obligations |
|
(476.2 |
) |
|
|
(133.5 |
) |
Proceeds from non-manufacturer floor plan payable |
|
79.5 |
|
|
|
103.5 |
|
Payments on non-manufacturer floor plan payable |
|
(82.8 |
) |
|
|
(98.5 |
) |
Preferred stock dividends paid |
|
(1.5 |
) |
|
|
(1.5 |
) |
Common stock dividends declared and paid |
|
(3.9 |
) |
|
|
(3.7 |
) |
Repurchases of common stock |
|
(2.0 |
) |
|
|
— |
|
Other financing activities |
|
(9.1 |
) |
|
|
4.3 |
|
Net cash provided by financing activities |
|
32.1 |
|
|
|
74.1 |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
(0.2 |
) |
|
|
(0.1 |
) |
NET CHANGE IN CASH |
|
(26.5 |
) |
|
|
(0.4 |
) |
|
|
|
|
|
|
Cash, Beginning of
year |
|
31.0 |
|
|
|
2.7 |
|
Cash, End of
period |
$ |
4.5 |
|
|
$ |
2.3 |
|
Supplemental schedule of
noncash investing and financing activities: |
|
|
|
|
|
Noncash asset purchases: |
|
|
|
|
|
Net transfer of assets from inventory to rental fleet within
property and equipment |
$ |
83.0 |
|
|
$ |
96.4 |
|
Contingent and non-contingent consideration for business
acquisitions |
|
0.5 |
|
|
|
— |
|
Supplemental disclosures
of cash flow information |
|
|
|
|
|
Cash paid for interest |
$ |
32.5 |
|
|
$ |
24.1 |
|
Cash paid for income taxes |
$ |
1.3 |
|
|
$ |
1.3 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited) |
(in millions, except share and per share
amounts) |
|
|
June 30, |
|
|
December 31, |
|
Debt and Floor Plan
Payables Analysis |
2024 |
|
|
2023 |
|
Senior secured second lien notes |
$ |
500.0 |
|
|
$ |
315.0 |
|
Line of credit |
|
217.6 |
|
|
|
317.5 |
|
Floor plan payable – new
equipment |
|
298.4 |
|
|
|
297.8 |
|
Floor plan payable – used and
rental equipment |
|
99.9 |
|
|
|
99.5 |
|
Finance lease obligations |
|
45.1 |
|
|
|
38.8 |
|
Total debt |
$ |
1,161.0 |
|
|
$ |
1,068.6 |
|
Adjustments: |
|
|
|
|
|
Floor plan payable – new
equipment |
|
(298.4 |
) |
|
|
(297.8 |
) |
Cash |
|
(4.5 |
) |
|
|
(31.0 |
) |
Adjusted total net debt
and floor plan payables(1) |
$ |
858.1 |
|
|
$ |
739.8 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net (loss) income available to common
stockholders |
$ |
(12.6 |
) |
|
$ |
1.7 |
|
|
$ |
(25.3 |
) |
|
$ |
1.9 |
|
Depreciation and
amortization |
|
38.0 |
|
|
|
33.0 |
|
|
|
72.0 |
|
|
|
61.1 |
|
Interest expense |
|
19.2 |
|
|
|
13.7 |
|
|
|
35.3 |
|
|
|
25.7 |
|
Income tax (benefit)
provision |
|
(2.7 |
) |
|
|
0.3 |
|
|
|
(6.9 |
) |
|
|
0.4 |
|
EBITDA(1) |
$ |
41.9 |
|
|
$ |
48.7 |
|
|
$ |
75.1 |
|
|
$ |
89.1 |
|
Transaction costs(2) |
|
0.1 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
0.7 |
|
Loss on debt
extinguishment(3) |
|
6.7 |
|
|
|
— |
|
|
|
6.7 |
|
|
|
— |
|
Stock-based incentives(4) |
|
1.3 |
|
|
|
1.1 |
|
|
|
2.6 |
|
|
|
1.9 |
|
Other expenses(5) |
|
2.3 |
|
|
|
0.7 |
|
|
|
3.7 |
|
|
|
0.9 |
|
Preferred stock dividend(6) |
|
0.7 |
|
|
|
0.7 |
|
|
|
1.5 |
|
|
|
1.5 |
|
Showroom-ready equipment interest
expense(7) |
|
(2.7 |
) |
|
|
(1.9 |
) |
|
|
(5.5 |
) |
|
|
(3.4 |
) |
Adjusted
EBITDA(1) |
$ |
50.3 |
|
|
$ |
49.9 |
|
|
$ |
84.4 |
|
|
$ |
90.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net (loss) income available to common
stockholders |
$ |
(12.6 |
) |
|
$ |
1.7 |
|
|
$ |
(25.3 |
) |
|
$ |
1.9 |
|
Transaction costs(2) |
|
0.1 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
0.7 |
|
Loss on debt
extinguishment(3) |
|
6.7 |
|
|
|
— |
|
|
|
6.7 |
|
|
|
— |
|
Stock-based incentives(4) |
|
1.3 |
|
|
|
1.1 |
|
|
|
2.6 |
|
|
|
1.9 |
|
Other expenses(5) |
|
2.3 |
|
|
|
0.7 |
|
|
|
3.7 |
|
|
|
0.9 |
|
Intangible amortization(8) |
|
2.6 |
|
|
|
2.2 |
|
|
|
5.2 |
|
|
|
4.4 |
|
Adjusted net income
(loss) available to common stockholders(1) |
$ |
0.4 |
|
|
$ |
6.3 |
|
|
$ |
(6.8 |
) |
|
$ |
9.8 |
|
Basic net (loss) income
per share |
$ |
(0.38 |
) |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
$ |
0.06 |
|
Diluted net (loss) income
per share |
$ |
(0.38 |
) |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
$ |
0.06 |
|
Adjusted basic net income
(loss) per share(1) |
$ |
0.01 |
|
|
$ |
0.19 |
|
|
$ |
(0.20 |
) |
|
$ |
0.30 |
|
Adjusted diluted net
income (loss) per share(1) |
$ |
0.01 |
|
|
$ |
0.19 |
|
|
$ |
(0.20 |
) |
|
$ |
0.30 |
|
Basic weighted average
common shares outstanding |
|
33,239,620 |
|
|
|
32,368,112 |
|
|
|
33,174,158 |
|
|
|
32,296,067 |
|
Diluted weighted average
common shares outstanding |
|
34,035,830 |
|
|
|
32,731,422 |
|
|
|
33,174,158 |
|
|
|
32,581,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measure(2) Expenses related to
acquisitions, capital raising and debt refinancing activities(3)
One-time expense associated with the extinguishment of debt(4)
Non-cash equity-based compensation expenses(5) Other non-recurring
expenses inclusive of severance payments, greenfield startup,
non-cash adjustments to earnout contingencies, legal and consulting
costs(6) Expenses related to preferred stock dividend payments(7)
Interest expense associated with showroom-ready new equipment
interest included in total interest expense above(8) Incremental
expense associated with the amortization of other intangible assets
relating to acquisition accounting
Alta Equipment (NYSE:ALTG)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Alta Equipment (NYSE:ALTG)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024