Alta Equipment Group Inc. · NYSE:ALTG
Alta Equipment — Q1 2025 Earnings Presentation
34 slides from Alta Equipment's earnings presentation, May 7, 2025
Slide 1: Earnings Presentation First Quarter 2025
EARNINGS PRESENTATION FIRST QUARTER 2025 May 7, 2025
Slide 2: Legal Disclaimers
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 co
Slide 3: Agenda & Introduction
AGENDA & INTRODUCTION Agenda INTRODUCTION CEO Overview Executive Officers: Q1 2025 Results Business Conditions Ryan Greenawalt, CEO Strategy and Execution & Tony Colucci, CFO CFO Overview Q1 2025 Quarterly Financial Analysis Rental Fleet Summary Free Cash Flow Performance Capital Struc
Slide 4: CEO Overview
CEO OVERVIEW Ryan Greenawalt Earnings Presentation | First Quarter 2025 | May 7, 2025 4
Slide 5: Q1 2025 Results
CEO OVERVIEW Revenue decreased to to $423.0 million, a decrease of $18.6 million from Q1 2024 Q1 2025 Construction and Material Handling was $245.8 million and $157.9 million, respectively Results: Product Support Revenue increased to $138.1 million, with parts sales of $72.0 million and service sal
Slide 6: Business Conditions
CEO OVERVIEW Industry Fundamentals Remain Stable 1Non-Residential Construction Starts forecast to increase from $447 billion in ‘24 to $482 billion in ’25, $489 billion in ’26, $518 billion in ’27, $552 billion in ’28 2Industrial Spending forecast to remain high through ’28 ~$483 billion per yea
Slide 7: Strategy and Execution
CEO OVERVIEW Strategic Value-Creation Proven acquisition and integration track record; closing 17 acquisitions adding $543 million in total revenue and $66 million in EBITDA at accretive multiples (since IPO in 2020) Increased locations from 43 to 87 throughout Michigan, Indiana, Ohio, Illinois,
Slide 8: CFO Overview
CFO OVERVIEW Tony Colucci Earnings Presentation | First Quarter 2025 | May 7, 2025 8
Slide 9: Q1 2025 Quarterly Financial Analysis
CFO OVERVIEW Q1 2025 Quarterly Financial Analysis Total Company Increase Three Months Ended March 31, (Decrease) Total Company 2025 2024 2025 versus 2024 • Total revenue declined $18.6MM, or (4.2)%, from $441.6MM to $423.0MM Revenues: • Product support revenue of $138.1MM for Q1 2025 versus $136.9MM
Slide 10: Q1 2025 Quarterly Financial Analysis: Material Handling Segment
CFO OVERVIEW Q1 2025 Quarterly Financial Analysis Material Handling Segment Increase Three Months Ended March 31, (Decrease) Material Handling 2025 2024 2025 versus 2024 • Total revenue declined $16.4MM, or (9.4)%, from $174.3MM to $157.9MM Revenues: • Product support revenue of $58.4MM for Q1 2025
Slide 11: Q1 2025 Quarterly Financial Analysis: Construction Equipment Segment
CFO OVERVIEW Q1 2025 Quarterly Financial Analysis Construction Equipment Segment Increase Three Months Ended March 31, (Decrease) Construction 2025 2024 2025 versus 2024 • Total revenue declined $9.8MM, or (3.8)%, from $255.6MM to $245.8MM Revenues: • Product support revenue of $77.1MM for Q1 2025 v
Slide 12: Q1 2025 Quarterly Financial Analysis: Master Distribution Segment
CFO OVERVIEW Q1 2025 Quarterly Financial Analysis Master Distribution Segment Increase Three Months Ended March 31, (Decrease) 2025 2024 Master Distribution (Ecoverse) 2025 versus 2024 Revenues: • Total revenue increased $4.6MM, or 35.9%, from $12.8MM to $17.4MM New and used equipment sales $ 14.8 $
Slide 13: Rental Fleet Summary
CFO OVERVIEW Rental Fleet Summary March 31, March 31, ($MM) Gross Book Value 2024 2025 Inc./(Dec.) Material Handling $194.9 $212.0 $17.4 Construction – Aerial (Rent-to-Rent) 72.5 64.1 (8.4) Total Rent-to-Rent Fleet 267.4 276.1 9.0 Construction – Earthmoving/Specialty (Rent-to-Sell) 341.9 308.0 (33.9
Slide 14: Free Cash Flow Performance
CFO OVERVIEW Free Cash Flow Performance [1] Non-GAAP measures; see Appendices for reconciliation of Non-GAAP measures 2023 2024 2025 YTD Target Profile 1 Adjusted EBITDA [1] $ 191.4 $ 168.3 $ 33.6 $ 200.0 Plus: Non-Cash Operating Activities (Non-Addbacks) 2 7.3 8.0 2.7 -/- (Less): Gain on sale of Re
Slide 15: Capital Structure / Credit Profile
CFO OVERVIEW Capital Structure / Credit Profile Balance Sheet Strength / Liquidity5 Capital Structure ($MM) EV/2025 March 31, 2025 $ Amount EBITDA 900,000 Cash $11.1 800,000 $750MM Debt:1 700,000 600,000 Lines of Credit (ABL)2 $220.0 $510MM 500,000 Floor Plan – Used and Rental 70.0 400,000 Finance L
Slide 16: Tangible Asset Coverage
CFO OVERVIEW Tangible Asset Coverage Financial Measure Balance Sheet Fair Market Value March 31, 2025 $ Amount ($ in millions) Amount Estimate Cash $11.1 Debt:1 New Equipment* $89 ~$148 Lines of Credit (ABL)2 $220.0 Floor Plan – Used and Rental 70.0 Used Equipment $58 ~$67 Finance Lease Liabilities
Slide 17: Debt Structure and Maturity Runoff
CFO OVERVIEW Debt Structure and Maturity Runoff Debt Maturity ABL SSSL $600MM Drawn Undrawn $500MM $500MM On June 5, 2024 the Company amended its ABL facility to increase borrowing capacity and extend the maturity from 12/31/2025 to March of 2029. Simultaneously $400MM with the amendment, the Compan
Slide 18: FY2025 Capital Allocation Strategy
CFO OVERVIEW FY2025 Capital Allocation Strategy STRATEGIC M&A STOCK REPURCHASE LEVERAGE REDUCTION ORGANIC GROWTH $30.0 million share repurchase Strategic opportunities with in- program in place, with ~$24 Manage leverage profile and network dealerships and in Dedicated to expansion, market million r
Slide 19: Reaffirming FY 2025 Organic Guidance
CFO OVERVIEW Reaffirming FY 2025 Organic Guidance FY 2025 OUTLOOK ($ IN MM) FY 2025 ADJUSTED EBITDA: GUIDANCE $171.5MM – $186.5MM (net of divesture) (Net of New Equipment Floorplan Interest) 2025 GUIDANCE ASSUMPTIONS/COMMENTARY: Adjusting low-end and top-end guidance by $3.5MM, to $171.5 and $186.
Slide 20: Thank You
THANK YOU (NYSE:ALTG) Investor Relations Contact: Kevin Inda SCR Partners M: (225) 772-0254 E: Kevin@scr-ir.com Earnings Presentation | First Quarter 2025 | May 7, 2025 20
Slide 21: Supplemental Information: About the Company
SUPPLEMENTAL APPENDICES INFORMATION About the Company Earnings Presentation | First Quarter 2025 | May 7, 2025 21
Slide 22: Alta Equipment Group Overview
THE COMPANY Alta Equipment Group Overview Material Handling Construction E-mobility Distribution BRANDING MARKET RELATIONSHIPS OEM/SUPPLIER SELECT OFFERING PRODUCT SELECT Food and Beverage Highway, Street, and Bridge General Freight Trucking, Local Biofuel / Compost / Food Waste / SELECT END
Slide 23: Material Handling Revenue by End Market
THE COMPANY Alta Equipment Group – Material Handling Revenue by End Market Finance, Insurance, and Aggregate and Mining Real Estate 0% 2% Manufacturing End-Market Detail Agriculture, Forestry, and Retail Trade Landscaping Other 9% 11% 1% Transportation Equipment 20% Public Administration Rubber And
Slide 24: Construction Equipment Revenue by End Market
THE COMPANY Alta Equipment Group – Construction Equipment Revenue by End Market Finance, Insurance, and Real Estate Construction End-Market Detail 2% Aggregate and Manufacturing Retail Trade Mining 9% 2% 10% Building Construction General Contractors And Operative Agriculture, Forestry, and Builders
Slide 25: Product Support Overview
THE COMPANY Product Support Overview Product We have capabilities to support a variety of Support makes and models of Construction and Solutions Material Handling equipment. SERVICE Over 85 full-service locations across 15 states and 2 provinces Approx. 1,300 of Alta’s ~2,900 employees are facto
Slide 26: Product Support Yield Trends
THE COMPANY Product Support Yield Trends Parts and Service Sales follow Equipment Sales Parts and Service Sales ($MM) New/Used/Rental Eq. Sales 2020 2021 2022 2023 2024 Parts and Service Sales Parts $129.6 $178.5 $234.8 $278.3 $294.4 $1,200.0 Service 128.5 165.5 206.6 241.3 253.8 Total $258.1 $344.0
Slide 27: Alta Equipment Group vs Pure-Play Rental Businesses
THE COMPANY Alta Equipment Group Vs Pure-Play Rental Businesses EQUIPMENT DEALERSHIP BUSINESS MODEL New and used equipment sales Protected exclusive areas of primary responsibility (APRs) 53% Exclusive rights to OEM equipment and parts Proprietary diagnostic software to service field populatio
Slide 28: Alta Equipment Group Financial Profile
THE COMPANY Alta Equipment Group Financial Profile TTM ($MM) 2022 2023 2024 Q1 2024 Q1 2025 March 31, 2025 Revenue $1,571.8 $1,876.8 $1,876.6 $441.6 $423.0 $1,858.0 Gross Profit $419.6 $507.2 $493.7 $120.6 $115.0 $488.1 % margin 26.7% 27.0% 26.3% 27.3% 27.2% 26.2% Operating Expenses1 $378.8 $452.8 $
Slide 29: Appendices: Unaudited Reconciliation of Non-GAAP Financial Measures
APPENDICES Unaudited Reconciliation of Non-GAAP Financial Measures Earnings Presentation | First Quarter 2025 | May 7, 2025 29
Slide 30: Adjusted EBITDA – GAAP Reconciliation
APPENDIX A Adjusted EBITDA – GAAP Reconciliation Three Mos Ended Three Mos Ended TTM ($MM) 2022 2023 2024 Mar 31, 2024 Mar 31, 2025 Mar 31, 2025 Net income/(loss) available to common shareholders $6.3 $5.9 $(65.1) $(12.7) $(21.7) $(74.1) Depreciation and amortization 112.0 132.6 144.5 34.0 32.4 142.
Slide 31: Free Cash Flow Performance – GAAP Reconciliation
APPENDIX B Free Cash Flow Performance – GAAP Reconciliation Three Mos Ended ($MM) 2023 2024 Mar 31, 2025 Levered Free Cash Flow after RTS Decisioning and Returns to Shareholders[1] 1 $16.6 $29.8 $3.7 Reconciliation to Consolidated Statements of Cash Flows: Cash Paid Addbacks to EBITDA 2 (3.4) (9.4)
Slide 32: Retained Cash Flow – GAAP Reconciliation
APPENDIX C Retained Cash Flow - GAAP Reconciliation Three Mos Ended Three Mos Ended ($MM) 2022 2023 2024 Mar 31, 2024 Mar 31, 2025 Net income (loss) $9.3 $8.9 $(62.1) $(11.9) $(20.9) Adjustments to reconcile net income (loss) to Retained Cash Flow: Depreciation and amortization 112.0 132.6 144.5 34.
Slide 33: Economic EBIT – GAAP Reconciliation
APPENDIX D Economic EBIT – GAAP Reconciliation Three Mos Ended Three Mos Ended ($MM) 2022 2023 2024 Mar 31, 2024 Mar 31, 2025 Net income/(loss) available to common shareholders $6.3 $5.9 $(65.1) $(12.7) $(21.7) Depreciation and amortization 112.0 132.6 144.5 34.0 32.4 Interest expense 31.8 57.0 81.3
Slide 34: Unlevered FCF Before/After Growth Investments Reconciliation
APPENDIX E Unlevered FCF Before/After Growth Investments Reconciliation Three Mos Ended Three Mos Ended ($MM) 2022 2023 2024 Mar 31, 2024 Mar 31, 2025 Economic EBIT [1] $113.8 $122.3 $77.7 $14.2 $17.3 Tax (Expense)/Benefit (1.3) 6.4 4.2 4.2 (0.7) Unlevered FCF Before Growth Related Investments [1] $