First Quarter Financial Highlights:
- Total revenues increased
$20.9 million year over year to$441.6 million - Construction and Material Handling revenues of
$255.6 million and$174.3 million , respectively - Product support revenues increased 6.5% year over year with Parts sales increasing to
$72.9 million and Service revenues increasing to$64.0 million - New and used equipment sales grew 4.1% year over year to
$228.6 million - Net loss available to common stockholders of
$(12.7) million - Basic and diluted net loss per share of
$(0.38) - Adjusted basic and diluted net loss per share* of
$(0.22) - Adjusted EBITDA* of
$34.1 million
CEO Comment:
In conclusion,
Full Year 2024 Financial Guidance and Other Financial Notes:
- The Company adjusted the top end of our 2024 guidance range and now expects to report Adjusted EBITDA between
$207.5 million and$212.5 million for the 2024 fiscal year.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) | |||||||||||||||
(amounts in millions unless otherwise noted) | |||||||||||||||
Three Months Ended | Increase (Decrease) | ||||||||||||||
2024 | 2023 | 2024 versus 2023 | |||||||||||||
Revenues: | |||||||||||||||
New and used equipment sales | $ | 228.6 | $ | 219.6 | $ | 9.0 | 4.1 | % | |||||||
Parts sales | 72.9 | 68.4 | 4.5 | 6.6 | % | ||||||||||
Service revenues | 64.0 | 60.2 | 3.8 | 6.3 | % | ||||||||||
Rental revenues | 48.5 | 43.5 | 5.0 | 11.5 | % | ||||||||||
Rental equipment sales | 27.6 | 29.0 | (1.4 | ) | (4.8 | )% | |||||||||
Total revenues | 441.6 | 420.7 | 20.9 | 5.0 | % | ||||||||||
Cost of revenues: | |||||||||||||||
New and used equipment sales | 192.4 | 179.0 | 13.4 | 7.5 | % | ||||||||||
Parts sales | 48.3 | 45.4 | 2.9 | 6.4 | % | ||||||||||
Service revenues | 27.0 | 25.1 | 1.9 | 7.6 | % | ||||||||||
Rental revenues | 6.7 | 6.1 | 0.6 | 9.8 | % | ||||||||||
Rental depreciation | 27.1 | 22.9 | 4.2 | 18.3 | % | ||||||||||
Rental equipment sales | 19.5 | 20.9 | (1.4 | ) | (6.7 | )% | |||||||||
Total cost of revenues | 321.0 | 299.4 | 21.6 | 7.2 | % | ||||||||||
Gross profit | 120.6 | 121.3 | (0.7 | ) | (0.6 | )% | |||||||||
General and administrative expenses | 114.6 | 104.0 | 10.6 | 10.2 | % | ||||||||||
Non-rental depreciation and amortization | 6.9 | 5.2 | 1.7 | 32.7 | % | ||||||||||
Total operating expenses | 121.5 | 109.2 | 12.3 | 11.3 | % | ||||||||||
(Loss) income from operations | (0.9 | ) | 12.1 | (13.0 | ) | (107.4 | )% | ||||||||
Other (expense) income: | |||||||||||||||
Interest expense, floor plan payable – new equipment | (2.8 | ) | (1.5 | ) | (1.3 | ) | 86.7 | % | |||||||
Interest expense – other | (13.3 | ) | (10.5 | ) | (2.8 | ) | 26.7 | % | |||||||
Other income | 0.9 | 1.0 | (0.1 | ) | (10.0 | )% | |||||||||
Total other expense, net | (15.2 | ) | (11.0 | ) | (4.2 | ) | 38.2 | % | |||||||
(Loss) income before taxes | (16.1 | ) | 1.1 | (17.2 | ) | NM | |||||||||
Income tax (benefit) provision | (4.2 | ) | 0.1 | (4.3 | ) | NM | |||||||||
Net (loss) income | (11.9 | ) | 1.0 | (12.9 | ) | NM | |||||||||
Preferred stock dividends | (0.8 | ) | (0.8 | ) | — | — | |||||||||
Net (loss) income available to common stockholders | $ | (12.7 | ) | $ | 0.2 | $ | (12.9 | ) | NM | ||||||
NM - calculated change not meaningful | |||||||||||||||
Conference Call Information:
Alta management will host a conference call and webcast today at
Conference Call Details:
What: | Alta Equipment Group First Quarter 2024 Earnings Call and Webcast |
Date: | |
Time: | |
Live call: | (833) 470-1428 |
International: | https://www.netroadshow.com/events/global-numbers?confId=60369 |
Live call access code: | 960798 |
Audio replay: | 866-813-9403 |
Replay access code: | 147420 |
Webcast: | http://events.q4inc.com/attendee/885157610 |
The audio replay will be archived through
About
Alta owns and operates one of the largest integrated equipment dealership platforms in
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 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
*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
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
Contacts
Investors:
Kevin Inda
kevin@scr-ir.com
(225) 772-0254
Media:
glenn.moore@altg.com
(248) 305-2134
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
(in millions, except share and per share amounts) | |||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Cash | $ | 5.6 | $ | 31.0 | |||
Accounts receivable, net of allowances of | 239.4 | 249.3 | |||||
Inventories, net | 553.7 | 530.7 | |||||
Prepaid expenses and other current assets | 23.6 | 27.0 | |||||
Total current assets | 822.3 | 838.0 | |||||
NON-CURRENT ASSETS | |||||||
Property and equipment, net | 477.0 | 464.8 | |||||
Operating lease right-of-use assets, net | 110.1 | 110.9 | |||||
76.0 | 76.7 | ||||||
Other intangible assets, net | 63.9 | 66.3 | |||||
Other assets | 14.0 | 14.2 | |||||
TOTAL ASSETS | $ | 1,563.3 | $ | 1,570.9 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Floor plan payable – new equipment | $ | 300.8 | $ | 297.8 | |||
Floor plan payable – used and rental equipment | 98.4 | 99.5 | |||||
Current portion of long-term debt | 8.5 | 7.7 | |||||
Accounts payable | 98.6 | 97.0 | |||||
Customer deposits | 16.2 | 17.4 | |||||
Accrued expenses | 52.0 | 59.7 | |||||
Current operating lease liabilities | 15.6 | 15.9 | |||||
Current deferred revenue | 14.3 | 16.2 | |||||
Other current liabilities | 26.7 | 23.9 | |||||
Total current liabilities | 631.1 | 635.1 | |||||
NON-CURRENT LIABILITIES | |||||||
Line of credit, net | 328.6 | 315.9 | |||||
Long-term debt, net of current portion | 312.6 | 312.3 | |||||
Finance lease obligations, net of current portion | 33.2 | 31.1 | |||||
Deferred revenue, net of current portion | 4.0 | 4.2 | |||||
Long-term operating lease liabilities, net of current portion | 99.3 | 99.6 | |||||
Deferred tax liabilities | 7.6 | 7.7 | |||||
Other liabilities | 10.0 | 15.3 | |||||
TOTAL LIABILITIES | 1,426.4 | 1,421.2 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, | — | — | |||||
Common stock, | — | — | |||||
Additional paid-in capital | 236.0 | 233.8 | |||||
(5.9 | ) | (5.9 | ) | ||||
Accumulated deficit | (91.0 | ) | (76.4 | ) | |||
Accumulated other comprehensive loss | (2.2 | ) | (1.8 | ) | |||
TOTAL STOCKHOLDERS’ EQUITY | 136.9 | 149.7 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,563.3 | $ | 1,570.9 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
(in millions, except share and per share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenues: | |||||||
New and used equipment sales | $ | 228.6 | $ | 219.6 | |||
Parts sales | 72.9 | 68.4 | |||||
Service revenues | 64.0 | 60.2 | |||||
Rental revenues | 48.5 | 43.5 | |||||
Rental equipment sales | 27.6 | 29.0 | |||||
Total revenues | 441.6 | 420.7 | |||||
Cost of revenues: | |||||||
New and used equipment sales | 192.4 | 179.0 | |||||
Parts sales | 48.3 | 45.4 | |||||
Service revenues | 27.0 | 25.1 | |||||
Rental revenues | 6.7 | 6.1 | |||||
Rental depreciation | 27.1 | 22.9 | |||||
Rental equipment sales | 19.5 | 20.9 | |||||
Total cost of revenues | 321.0 | 299.4 | |||||
Gross profit | 120.6 | 121.3 | |||||
General and administrative expenses | 114.6 | 104.0 | |||||
Non-rental depreciation and amortization | 6.9 | 5.2 | |||||
Total operating expenses | 121.5 | 109.2 | |||||
(Loss) income from operations | (0.9 | ) | 12.1 | ||||
Other (expense) income: | |||||||
Interest expense, floor plan payable – new equipment | (2.8 | ) | (1.5 | ) | |||
Interest expense – other | (13.3 | ) | (10.5 | ) | |||
Other income | 0.9 | 1.0 | |||||
Total other expense, net | (15.2 | ) | (11.0 | ) | |||
(Loss) income before taxes | (16.1 | ) | 1.1 | ||||
Income tax (benefit) provision | (4.2 | ) | 0.1 | ||||
Net (loss) income | (11.9 | ) | 1.0 | ||||
Preferred stock dividends | (0.8 | ) | (0.8 | ) | |||
Net (loss) income available to common stockholders | $ | (12.7 | ) | $ | 0.2 | ||
Basic (loss) income per share | $ | (0.38 | ) | $ | 0.01 | ||
Diluted (loss) income per share | $ | (0.38 | ) | $ | 0.01 | ||
Basic weighted average common shares outstanding | 33,108,695 | 32,223,221 | |||||
Diluted weighted average common shares outstanding | 33,108,695 | 32,430,715 | |||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
(in millions) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
OPERATING ACTIVITIES | |||||||
Net (loss) income | $ | (11.9 | ) | $ | 1.0 | ||
Adjustments to reconcile net (loss) income to net cash flows used in operating activities: | |||||||
Depreciation and amortization | 34.0 | 28.1 | |||||
Amortization of debt discount and debt issuance costs | 0.4 | 0.3 | |||||
Imputed interest | — | 0.3 | |||||
Gain on sale of rental equipment | (8.1 | ) | (8.1 | ) | |||
Provision for inventory obsolescence | 0.5 | 0.1 | |||||
Provision for losses on accounts receivable | 1.7 | 1.5 | |||||
Change in fair value of derivative instruments | (0.1 | ) | — | ||||
Stock-based compensation expense | 1.3 | 0.8 | |||||
Changes in deferred income taxes | — | (0.1 | ) | ||||
Changes in assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 8.0 | 1.3 | |||||
Inventories | (66.3 | ) | (114.3 | ) | |||
Proceeds from sale of rental equipment | 27.6 | 29.0 | |||||
Prepaid expenses and other assets | 5.0 | (5.2 | ) | ||||
Manufacturers floor plans payable | 0.4 | 57.0 | |||||
Accounts payable, accrued expenses, customer deposits, and other current liabilities | (0.2 | ) | (6.5 | ) | |||
Leases, deferred revenue, net of current portion and other liabilities | (4.2 | ) | (5.3 | ) | |||
Net cash used in operating activities | (11.9 | ) | (20.1 | ) | |||
INVESTING ACTIVITIES | |||||||
Expenditures for rental equipment | (12.9 | ) | (14.6 | ) | |||
Expenditures for property and equipment | (4.4 | ) | (3.1 | ) | |||
Proceeds from sale of property and equipment | 0.1 | — | |||||
Expenditures for acquisitions, net of cash acquired | — | (1.7 | ) | ||||
Other investing activities | (0.9 | ) | 0.5 | ||||
Net cash used in investing activities | (18.1 | ) | (18.9 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from line of credit and long-term borrowings | 72.8 | 97.0 | |||||
Principal payments on line of credit, long-term debt, and finance lease obligations | (61.9 | ) | (59.8 | ) | |||
Proceeds from non-manufacturer floor plan payable | 41.0 | 50.7 | |||||
Payments on non-manufacturer floor plan payable | (39.1 | ) | (49.7 | ) | |||
Preferred stock dividends paid | (0.8 | ) | (0.8 | ) | |||
Common stock dividends declared and paid | (1.9 | ) | (1.9 | ) | |||
Other financing activities | (5.5 | ) | 2.4 | ||||
Net cash provided by financing activities | 4.6 | 37.9 | |||||
Effect of exchange rate changes on cash | — | 0.1 | |||||
NET CHANGE IN CASH | (25.4 | ) | (1.0 | ) | |||
Cash, Beginning of year | 31.0 | 2.7 | |||||
Cash, End of period | $ | 5.6 | $ | 1.7 | |||
Supplemental schedule of noncash investing and financing activities: | |||||||
Noncash asset purchases: | |||||||
Net transfer of assets from inventory to rental fleet within property and equipment | $ | 38.8 | $ | 42.7 | |||
Supplemental disclosures of cash flow information | |||||||
Cash paid for interest | $ | 10.6 | $ | 6.8 | |||
Cash paid for income taxes | $ | 0.2 | $ | 0.1 | |||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) | |||||||
(in millions, except share and per share amounts) | |||||||
Debt and Floor Plan Payables Analysis | 2024 | 2023 | |||||
Senior secured second lien notes | $ | 315.0 | $ | 315.0 | |||
Line of credit | 330.0 | 317.5 | |||||
Floor plan payable – new equipment | 300.8 | 297.8 | |||||
Floor plan payable – used and rental equipment | 98.4 | 99.5 | |||||
Finance lease obligations | 41.7 | 38.8 | |||||
Total debt | $ | 1,085.9 | $ | 1,068.6 | |||
Adjustments: | |||||||
Floor plan payable – new equipment | (300.8 | ) | (297.8 | ) | |||
Cash | (5.6 | ) | (31.0 | ) | |||
Adjusted total net debt and floor plan payables(1) | $ | 779.5 | $ | 739.8 | |||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net (loss) income available to common stockholders | $ | (12.7 | ) | $ | 0.2 | ||
Depreciation and amortization | 34.0 | 28.1 | |||||
Interest expense | 16.1 | 12.0 | |||||
Income tax (benefit) provision | (4.2 | ) | 0.1 | ||||
EBITDA(1) | $ | 33.2 | $ | 40.4 | |||
Transaction costs(2) | 0.2 | 0.1 | |||||
Stock-based incentives(4) | 1.3 | 0.8 | |||||
Other expenses(5) | 1.4 | 0.2 | |||||
Preferred stock dividend(6) | 0.8 | 0.8 | |||||
Showroom-ready equipment interest expense(7) | (2.8 | ) | (1.5 | ) | |||
Adjusted EBITDA(1) | $ | 34.1 | $ | 40.8 | |||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net (loss) income available to common stockholders | $ | (12.7 | ) | $ | 0.2 | ||
Transaction costs(2) | 0.2 | 0.1 | |||||
Intangible amortization(3) | 2.6 | 2.2 | |||||
Stock-based incentives(4) | 1.3 | 0.8 | |||||
Other expenses(5) | 1.4 | 0.2 | |||||
Adjusted net (loss) income available to common stockholders(1) | $ | (7.2 | ) | $ | 3.5 | ||
Basic net (loss) income per share | $ | (0.38 | ) | $ | 0.01 | ||
Diluted net (loss) income per share | $ | (0.38 | ) | $ | 0.01 | ||
Adjusted basic net (loss) income per share(1) | $ | (0.22 | ) | $ | 0.11 | ||
Adjusted diluted net (loss) income per share(1) | $ | (0.22 | ) | $ | 0.11 | ||
Basic weighted average common shares outstanding | 33,108,695 | 32,223,221 | |||||
Diluted weighted average common shares outstanding | 33,108,695 | 32,430,715 | |||||
(1) Non-GAAP measure
(2) Expenses related to acquisition, capital raising and debt refinancing activities
(3) Incremental expense associated with the amortization of other intangible assets relating to acquisition accounting
(4) 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) Interest expense associated with showroom-ready new equipment interest included in total interest expense above
Source:
2024 GlobeNewswire, Inc., source