Alta Equipment : First Quarter 2024 Earnings Call Presentation

EARNINGS PRESENTATION

FIRST QUARTER 2024

May 8, 2024

LEGAL DISCLAIMERS

Forward-Looking Information

This presentation 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 market price for our equipment; 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.

Non-GAAP Financial Measures

This presentation includes non-GAAP financial measures, including Adjusted EBITDA, Economic EBIT, organic revenue, and various cash flow metrics. Alta believes that these non-GAAP measures are useful to investors for two principal reasons. First, Alta believes these measures may assist investors in comparing performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance. Second, these measures are used by Alta's management to assess its performance and may (subject to the limitations described below) enable investors to compare the performance of Alta to its competition. Alta believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate Adjusted EBITDA, Economic EBIT, organic revenue, and free cash flow and other non-GAAP financial measures differently, and therefore Alta's non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies. With regard to our historical financial information, you can find the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the Appendices at the end of this presentation. Alta is not providing a quantitative reconciliation of Non-GAAP Adjusted EBITDA guidance because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. Specifically, Alta does not provide a reconciliation of forward-lookingNon-GAAP Adjusted EBITDA to GAAP net income, due to the inherent difficulty in forecasting and quantifying certain items that are necessary for such reconciliation. Certain deductions for non-GAAP exclusions used to calculate projected GAAP net income may vary significantly based on actual events (including variations in acquired intangible asset amortization and stock compensation expense) and Alta is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected GAAP net income being materially less than is indicated by projected Non-GAAP Adjusted EBITDA.

Information in this presentation is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Earnings Presentation | First Quarter 2024 | May 8, 2024

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AGENDA & INTRODUCTION

Agenda

CEO Overview

• Q1 2024 Highlights
• Business Conditions
• YTD Activity Trends
• Growth Strategy and Execution

CFO Overview

• Q1 2024 Financial Summary
• Capital Structure and Debt Summary
• Capital Allocation Overview
• 2024 Fleet and Cash Flow Summary
• FY2024 Guidance

Supplemental Information

Appendices

Question and Answer Session

INTRODUCTION

Executive Officers:

Ryan Greenawalt, CEO

& Tony Colucci, CFO

Earnings Presentation | First Quarter 2024 | May 8, 2024

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CEO OVERVIEW

Ryan Greenawalt

Earnings Presentation | First Quarter 2024 | May 8, 2024

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CEO OVERVIEW

Q1 2024 Highlights:

Solid performance in core Material Handing and Construction business as key activity-

based performance indicators remained intact for the quarter. Equipment sales at Ecoverse and Peaklogix pressured on difficult Q1 2023 comparative.

Revenue Increased

5.0% over the year ago quarter, to $441.6 million

Construction and Material Handling Revenue Increased to

$255.6 million and $174.3 million, respectively

New and Used Equipment Sales Grew

4.1% over the year ago quarter, to $228.6 million, up $9.0 million

Product Support Revenue (Parts and Service) Increased

6.5% to $136.9 million

Rental Revenue Increased

$5.0 million or 11.5% to $48.5 million

Construction Segment Positive Organic Growth

in equipment sales, product support, and rental departments; overall 2.8% organic sales growth

Core Material Handling Segment New Equipment Margins Stable

at 14.9% for the quarter despite competitive pricing pressure

Activity-Based KPIs stable and emerging from Q1 seasonality

As Labor Productivity increased to 85% in April and Fleet on Rent increase to $364.8 from $330.9 in January

Earnings Presentation | First Quarter 2024 | May 8, 2024

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CEO OVERVIEW

Business Conditions:

Industry indicators and trends, as well as customer activity and sentiment, remain positive.

State DOT budgets in operating regions provide sustainable backdrop.

Industry Data and Trends Supportive of Continue Growth in '24

• 1Non-Residential Starts forecast to increase from $423 billion in '23 to $441 billion in '24
• 2Non-Residential PIP has been on a solid growth trajectory since dip in '20
• 3Total State DOT FY24 budgets up double digits over FY23
• • Our Midwest (up 16.1%), Northeast (up 6.4%), and FL (up 13.6%) markets to benefit from increased spending
• 4Industrial Spending forecast to remain high at $436 billion in '24
• 5Manufacturing PIP growing related to on-shoring initiatives
• Federal infrastructure and mega projects accelerating, but still in early stages
• Solid visibility in Material Handling business based on current customer backlog
• Diverse end-user markets provide opportunities in numerous verticals

+11.7%

1.	ARA/HIS Global Insights, February 2024.
2.	US Census Bureau.
3.	ARTBA, Stifel Research.
4.	IIIR, February 2024.	Earnings Presentation | First Quarter 2024 | May 8, 2024	6
5: US Census Bureau, Thompson Research Group.

CEO OVERVIEW

YTD

Activity

Trends:

2024: January - March [1]

2000

1500

1000

500

0

2023: January - March [1]

2000

Service Call Orders Per Day:

• Consistent service department call volumes year over year despite mild winter

2024 Q1 Average Calls/Count: 1,289

2023 Q1 Average Calls/Count: 1,297

• Average call count ~1,300 in both Q1 '23 and Q1 '24

Key performance indicators show stable Q1 2024 and seasonal growth into Q2 2024.

1500

1000

500

0

Fleet Utilization Increasing into Q2 2024

	January 2024	February 2024		March 2024	April 2024
Dollars on
$330.9MM	$334.3MM	$348.0MM	$364.8MM
Rent
		+$33.9MM

[1] These management estimates do not include Canadian subsidiaries (Ault and YIT).

Earnings Presentation | First Quarter 2024 | May 8, 2024

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CEO OVERVIEW

Growth

Strategy and

Execution:

Demonstrated ability to grow business both organically and through accretive acquisitions in core markets and new business segments.

M&A Activity Since Public Offering

demonstrates the success of our growth strategy, closing sixteen acquisitions adding $537 million in total revenue value and $65 million in EBITDA at accretive valuation multiples

Opportunity for Accretive Transactions Remain

in place for deals that compliment our existing business and increase long-term shareholder value; dealership opportunities that would expand our OEM relationships and/or geographic territory remain a focus

Continue to Expand Geographic Reach and Product Portfolio in Existing Business Segments

by leveraging existing OEM relationships and developing partnerships with new OEMs that continue to compliment our current business lines; a brownfield opportunity to distribute CASE Construction Equipment in Western Pennsylvania, is representative of this leg of our growth strategy

Opportunistically Expand into New Business Segments

in tangential or complimentary equipment markets

Expand Alternative Energy Related Opportunities

in segments including over-the-road (Class 3-7) commercial EVs (sales, service and turnkey infrastructure charging solutions), hydrogen and fuel cell technology and related segments

Earnings Presentation | First Quarter 2024 | May 8, 2024

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CFO OVERVIEW

Tony Colucci

Earnings Presentation | First Quarter 2024 | May 8, 2024

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CFO OVERVIEW Q1 2024 Financial Summary

Quarterly Comparisons

Revenue Metrics

Total revenue growth of $20.9MM, or 5.0% from $420.7MM in Q1 2023 to $441.6MM in Q1 2024

Parts and Service sales totaled $136.9MM, a 6.5% increase from Q1 2023

Quarterly Comparisons - Revenue

Construction Segment

• Total revenue growth of $22.5MM, or 9.7%, from $233.1MM to $255.6MM
• Product support revenue growth of $7.9MM, or 11.6% for a total of $76.0MM in Q1 2024
• New and Used Equipment sales growth of $14.0MM, or 12.5%, from $112.1MM to $126.0MM

Material Handling Segment

• Total revenue growth of $9.5MM, or 5.8%, from $164.8MM to $174.3MM
• Product support revenue growth of $0.8MM for a total of $58.7MM to end Q1 2024
• Rental revenue growth of $1.0MM, or 5.6% for a total of $19.0MM in Q1 2024

New and used

equipment sales

52%

$228.6

Construction

58%

Parts sales

17%

Q1 2024	Service
Revenue by	revenue
Department	14%

Rental revenue 11%

Rental equipment sales

6%

Material

$441.6MM Handling

Earnings Metrics

Master Distribution Segment

Q1 2024

39%

Adjusted EBITDA of $34.1MM versus $40.8MM in Q1 2023, a 16.4% decrease

GAAP income from operations of $(0.9)MM compared to $12.1MM in Q1 2023

• New business segment introduced in Q1 2023
• Total revenue of $12.8MM in Q1 2024, reduced from $26.7MM in Q1 2023
• New & Used Equipment sales of $9.1MM in Q1 2024
• Parts sales of $2.5MM in Q1 2024

Revenue

Master Distribution 3%

Earnings Presentation | First Quarter 2024 | May 8, 2024

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