Alta Equipment Group Inc. · NYSE:ALTG
Alta Equipment — Q2 2024 Earnings Presentation
34 slides from Alta Equipment's earnings presentation, Aug 7, 2024
Slide 1: Earnings Presentation Second Quarter 2024
EARNINGS PRESENTATION SECOND QUARTER 2024 August 7, 2024
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: Q2 2024 Results Business Conditions Ryan Greenawalt, CEO YTD Activity Trends & Tony Colucci, CFO eMobility Growth Strategy and Execution CFO Overview Q2 2024 Financial Summary Capital Structure and Debt Summary
Slide 4: CEO Overview
CEO OVERVIEW Ryan Greenawalt Earnings Presentation | Second Quarter 2024 | August 7, 2024 4
Slide 5: Q2 2024 Results
CEO OVERVIEW Revenue Increased 4.2% over the year ago quarter, to $488.1 million, and increasing $46.5 million sequentially over Q1 2024 Q2 2024 Construction and Material Handling Revenue Increased to $294.9 million and $175.6 million, respectively Results: Product Support Revenue Increased 10.1% to
Slide 6: Business Conditions
CEO OVERVIEW Construction Industry in Transitioning Environment Higher interest rates and election uncertainty creating hesitancy with small to mid-level contractors Business Oversupply of new equipment will take time for the market to absorb Labor remains a headwind; contractors understaffed,
Slide 7: YTD Activity-Based KPI Trends
CEO OVERVIEW 2024: January - June [1] 2000 1500 YTD 1000 500 Service Call Orders Per Day: Activity- 0 Consistent service department call volumes year over year Based KPI 2000 2023: January - June [1] 2024 Q2 YTD Average Calls/Count: 1,410 2023 Q2 YTD Average Calls/Count: 1,400 Trends: 1500 1000
Slide 8: eMobility Gaining Traction
CEO OVERVIEW CEO OVERVIEW eMobility Gaining Traction Entered partnership with Harbinger to support the launch of its electric medium-duty truck lineup (Class 4-6) eMobility: eMobility Territory Assignments: Michigan, Illinois, Florida, New England, Southern California Developing a sizeable sal
Slide 9: Growth Strategy and Execution
CEO OVERVIEW Strategic Expansion Proven acquisition and integration track record; closing 16 acquisitions adding $537 million in total revenue and $65 million in EBITDA at accretive multiples (since IPO in 2020) Growth Increased locations from 43 to 85 throughout Michigan, Indiana, Ohio, Illinoi
Slide 10: CFO Overview
CFO OVERVIEW Tony Colucci Earnings Presentation | Second Quarter 2024 | August 7, 2024 10
Slide 11: Q2 2024 Financial Summary
CFO OVERVIEW Q2 2024 Financial Summary Quarterly Comparisons - Revenue Quarterly Comparisons Parts sales New and used 16% Revenue Metrics Construction Segment equipment sales Total revenue growth of $19.7MM, or 4.2% • Total revenue growth of $13.4MM, or 4.8%, from 51% from $468.4MM in Q2 2023 to $48
Slide 12: Q2 2024 Financial Performance
CFO OVERVIEW Q2 2024 Financial Performance QUARTER-OVER-QUARTER – REVENUE & GROSS PROFIT Q2 2024 Quarter over Quarter Revenue / Gross Profit Consolidated ($MM) Organic revenue grew $0.5MM, or 0.1% $132.0 Gross profit increased $5.2MM for a total of $132.0MM, a 4.1% increase $488.1 $126.8 $468.4
Slide 13: Q2 2024 Adjusted EBITDA / Economic EBIT
CFO OVERVIEW Q2 2024 Adjusted EBITDA / Economic EBIT Adj. EBITDA1 / Adj. PF EBITDA1 Adj. EBITDA1 / Economic EBIT1 ($MM) / TTM Pro Forma2 Q2 2023 Q2 2023 Q2 2024 Q2 2024 $191.4 $188.8 $52.9 $49.9 $50.3 $50.3 $158.1 $120.0 $122.3 $113.8 $105.2 $78.6 Conversion % 65.5% 72.0% 63.9% 55.7% 2021 2022 2023
Slide 14: Alta Equipment Group Financial Profile
CFO OVERVIEW Alta Equipment Group Financial Profile 2023 YTD Q2 2023 YTD Q2 2024 TTM ($MM) 2022 2023 Pro Forma1 Pro Forma1 Pro Forma1 June 30, 2024 Alta Revenue $1,571.8 $1,876.8 $1,876.8 $889.10 $929.7 $1,917.4 Acquisitions Revenue - - 74.1 46.4 - 27.7 Total Revenue $1,571.8 $1,876.8 $1,950.9 $935.
Slide 15: Capital Structure / Credit Profile
CFO OVERVIEW Capital Structure / Credit Profile Balance Sheet Strength / Liquidity5 Capital Structure ($MM) EV/2024F June 30, 2024 $ Amount EBITDA 900,000 Cash $4.5 $803MM 800,000 Debt:1 700,000 600,000 $560MM Lines of Credit (ABL)2 $217.5 500,000 Floor Plan – Used and Rental 99.9 400,000 2.6x Finan
Slide 16: 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 17: Capital Allocation Overview
CFO OVERVIEW Capital Allocation Overview STRATEGIC M&A ORGANIC GROWTH DIVIDEND Excess CAPITAL EXCESS Capital Strategic opportunities with in- Initiated $12.5MM share Devoted to expansion, as ~$7.7MM annual repurchase program in July network dealerships and in ‘23 organic revenue growth was common st
Slide 18: Rental Fleet and Cash Flow Summary
CFO OVERVIEW Rental Fleet and Cash Flow Summary Rental Cap-Ex Summary ($MM)1 Six Mos Six Mos Ended Jun Ended Jun Fleet Mix: 2021 2022 2023 30, 2023 30, 2024 48% Earthmoving; Gross Rental Capex $207.6 $186.8 $242.4 $128.7 $113.6 32% Mtl Handling; 12% Aerial; OEC of Rental Fleet Sold (160.5) (139.0) (
Slide 19: Adjusting FY 2024 Guidance
CFO OVERVIEW Adjusting FY 2024 Guidance FY 2024 OUTLOOK ($ IN MM) ADJUSTED EBITDA: FY 2024 From: GUIDANCE $207.5 – $212.5 To: $190.0 - $200.0 (Net of New Equipment Floorplan Interest) 2024 GUIDANCE COMMENTARY: Lower than anticipated Construction and Master Distribution new equipment sales and gros
Slide 20: Thank You
THANK YOU (NYSE:ALTG) Investor Relations Contact: Kevin Inda SCR Partners M: (225) 772-0254 E: Kevin@scr-ir.com Earnings Presentation | Second Quarter 2024 | August 7, 2024 21
Slide 21: Supplemental Information: About the Company
SUPPLEMENTAL APPENDICES INFORMATION About the Company Earnings Presentation | Second Quarter 2024 | August 7, 2024 22
Slide 22: Alta Equipment Group Overview
THE COMPANY Alta Equipment Group Overview Material Handling Construction E-mobility Distribution BRANDING MARKET RELATIONSHIPS OEM/SUPPLIER SELECT OFFERING PRODUCT SELECT Food and Beverage Highway, Street, and Bridge General Freight Trucking, Local Biofuel / Compost / Food Waste / SELECT END
Slide 23: Product Support Overview
THE COMPANY Product Support Overview Product We have capabilities to support all makes Support and models of Construction and Material Solutions Handling equipment. SERVICE Over 85 full-service locations across 15 states and 2 provinces Approx. 1,300 of Alta’s ~3,000 employees are factory traine
Slide 24: Product Support Yield Trends
THE COMPANY Product Support Yield Trends Parts and Service Sales ($MM) New/Used/Rental Eq. Sales Future Parts and Service 2020 2021 2022 2023 2022 2023 Sales Parts $129.6 $178.5 $234.8 $278.3 $950.3MM $1,154.8MM Service 128.5 165.5 206.6 241.3 Total $258.1 $344.0 $441.4 $519.6 +$204.5MM = Equipment
Slide 25: Alta Equipment Group Vs Pure-Play Rental Businesses
THE COMPANY Alta Equipment Group Vs Pure-Play Rental Businesses New and used EQUIPMENT DEALERSHIP BUSINESS MODEL equipment sales Protected exclusive areas of primary responsibility (APRs) 54% Exclusive rights to OEM equipment and parts Proprietary diagnostic software to service field populatio
Slide 26: 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% 1% Manufacturing End-Market Detail Agriculture, Forestry, and Landscaping Retail Trade 1% 9% Other Public Administration 17% Transportation 5% Equipment 20% Transpor
Slide 27: Construction Equipment Revenue by End Market
THE COMPANY Alta Equipment Group – Construction Equipment Revenue by End Market Finance, Insurance, and Real Estate 2% Construction End-Market Detail Retail Trade Aggregate and 2% Mining Manufacturing 7% 11% Building Construction General Agriculture, Forestry, and Contractors And Operative Builders
Slide 28: Transformative Growth and Execution since IPO
THE COMPANY Transformative Growth and Execution since IPO THEN: IPO1 NOW (~4.5 years from IPO) Revenue Revenue3 $900MM $1,917MM Locations2 Locations3 43 85 Total Employees2 Total Employees3 ~1,700 ~3,000 Technicians2 Technicians3 ~850 ~1,300 Adj. EBITDA Adj. PF EBITDA4 $94M $189M FCFE Yield FCFE Yie
Slide 29: Appendices
APPENDICES Unaudited Reconciliation of Non-GAAP Financial Measures Earnings Presentation | Second Quarter 2024 | August 7, 2024 30
Slide 30: Adjusted EBITDA – GAAP Reconciliation
APPENDIX A Adjusted EBITDA – GAAP Reconciliation Six Mos Six Mos Ended Jun Ended Jun TTM ($MM) 2021 2022 2023 Q2 2023 Q2 2024 30, 2023 30, 2024 Jun 30, 2024 Net income/(loss) available to common shareholders $(23.4) $6.3 $5.9 $1.7 $(12.6) $1.9 $(25.3) $(21.3) Depreciation and amortization 95.8 112.0
Slide 31: Free Cash Flow from Operations - GAAP Reconciliation
APPENDIX B Free Cash Flow from Operations - GAAP Reconciliation Six Mos Ended Jun Six Mos Ended Jun ($MM) 2021 2022 2023 30, 2023 30, 2024 Net cash provided by (used in) operating activities per GAAP $30.7 $26.0 $63.8 $(33.8) $(21.0) Adjustments for non-recurring items 1 4.7 3.7 4.9 1.6 4.0 Transfer
Slide 32: Economic EBIT – GAAP Reconciliation
APPENDIX C Economic EBIT – GAAP Reconciliation Six Mos Ended Six Mos Ended ($MM) 2021 2022 2023 Jun 30, 2023 Jun 30, 2024 Net income/(loss) available to common shareholders per GAAP $(23.4) $6.3 $5.9 $1.9 $(25.3) Depreciation and amortization 95.8 112.0 132.6 61.1 72.0 Interest expense 24.0 31.8 57.
Slide 33: Retained Cash Flow - GAAP Reconciliation
APPENDIX D Retained Cash Flow - GAAP Reconciliation Six Mos Ended Six Mos Ended ($MM) 2021 2022 2023 Jun 30, 2023 Jun 30, 2024 Net income (loss) per GAAP $(20.8) $9.3 $8.9 $3.4 $(23.8) Adjustments to reconcile net income (loss) to Retained Cash Flow: Depreciation and amortization 95.8 112.0 132.6 61
Slide 34: Unlevered FCF Reconciliation
APPENDIX E Unlevered FCF before/after Growth Investments Reconciliation Six Mos Ended Six Mos Ended ($MM) 2021 2022 2023 June 30, 2023 June 30, 2024 Economic EBIT [1] $78.6 $113.8 $122.3 $63.4 $43.8 Tax (Expense)/Benefit (3.6) (1.3) (6.4) (0.4) (6.9) Unlevered FCF Before Growth Related Investments [