Alta Equipment Group Inc. · NYSE:ALTG
Alta Equipment — Q4 2024 Earnings Presentation
35 slides from Alta Equipment's earnings presentation, Mar 5, 2025
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2024
EARNINGS PRESENTATION FOURTH QUARTER AND FULL YEAR 2024 March 5, 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: Q4 2024 Results 2024 Results Ryan Greenawalt, CEO Business Conditions & Tony Colucci, CFO Growth Strategy and Execution CFO Overview Q4 and Full Year 2024 Financial Summary Rental Fleet Summary Free Cash Flow Pe
Slide 4: CEO Overview
CEO OVERVIEW Ryan Greenawalt 4
Slide 5: Q4 2024 Results
CEO OVERVIEW Revenue Decreased 4.5% over the year ago quarter, to $498.1 million, a difference of $23.4 million from Q4 2023 Q4 2024 Construction and Material Handling Revenue Ended the Quarter At $318.6 million and $168.6 million, respectively Results: Product Support Revenue Decreased 2.3% from a
Slide 6: 2024 Results
CEO OVERVIEW Revenue Effectively Flat at $1,876.6 million in 2024 versus $1,876.8 million in 2023 Construction and Material Handling Revenue Increased to $1,131.4 million, or 0.6%, and $687.4 million, or 0.9%, respectively 2024 Results: Product Support Revenue (Parts and Service) Increased 5.5%, or
Slide 7: Business Conditions
CEO OVERVIEW Industry Fundamentals Remain Supportive 1Non-Residential Construction Starts forecast to increase from $446 billion in ‘24 to $482 billion in ’25, $489 billion in ’26, $518 billion in ’27, $552 billion in ’28 2Dodge Momentum Index, a leading indicator of construction spending, incre
Slide 8: 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) Increased locations from 43 to 87 throughout Michigan, Indiana, Growth Ohio, Illinoi
Slide 9: CFO Overview
CFO OVERVIEW Tony Colucci 9
Slide 10: Q4 2024 Financial Summary
CFO OVERVIEW Q4 2024 Financial Summary Quarterly Comparisons - Revenue Quarterly Comparisons New and used equipment sales Parts sales Revenue Metrics Construction Segment 58% 14% Total revenue decline of $23.4MM, or (4.5)% • Total revenue decline of $9.5MM, or (2.9)%, from from $521.5MM in Q4 2023 t
Slide 11: Q4 and Full Year 2024 Financial Performance
CFO OVERVIEW Q4 and Full Year 2024 Financial Performance SEQUENTIAL QUARTER-OVER-QUARTER (Q3 2024 VS Q4 2024) Q4 2024 Quarter Over Quarter Revenue / Gross Profit Consolidated ($MM) Total revenue increased $49.3MM, or 11.0% $521.5 $133.0 Gross profit decreased $8.0MM for a total of $116.5MM $498.
Slide 12: Q4 and Full Year 2024 Adjusted EBITDA
CFO OVERVIEW Q4 and Full Year 2024 Adjusted EBITDA Quarterly Adj. EBITDA1 / Adj. PF EBITDA1 Full Year Adj. EBITDA1 ($MM) Q4 2023 Q4 2023 2023 $49.7 $50.4 $191.4 2024 Q4 2024 Q4 2024 2022 $168.3 $40.7 $40.7 $158.1 2021 $120.0 Adj. EBITDA Adj. PF EBITDA Adj. EBITDA QUARTERLY AND YTD YEAR-OVER-YEAR Adj
Slide 13: Rental Fleet Summary
CFO OVERVIEW Rental Fleet Summary ($MM) Gross Book Value 2023 2024 Inc./(Dec.) Rent-to-Rent $198.5 $224.2 +$25.7 Rent-to-Sell 402.3 347.0 (55.3) Total Rental Fleet $600.8 $571.2 $(29.6) Rent-to-Rent Fleet Fleet Mix: 45% $6.6MM of Long-term investment in primarily lift trucks requiring ongoing mainte
Slide 14: Free Cash Flow Performance 2023 and 2024
CFO OVERVIEW Free Cash Flow Performance 2023 and 2024 [1] Non-GAAP measures; see Appendix B for reconciliation of Non-GAAP measure 2023 2024 Target Profile 1 Adjusted EBITDA [1] $191.4 $168.3 $200.0 Plus: Non-Cash Operating Activities (Non-Addbacks) 2 7.3 8.0 -/- (Less): Gain on sale of Rent-to-Sell
Slide 15: Capital Structure / Credit Profile
CFO OVERVIEW Capital Structure / Credit Profile Balance Sheet Strength / Liquidity5 Capital Structure ($MM) EV/2024 December 31, 2024 $ Amount EBITDA 900,000 Cash $13.4 800,000 $725MM Debt:1 700,000 600,000 Lines of Credit (ABL)2 $182.9 $512MM 500,000 Floor Plan – Used and Rental 81.1 400,000 Financ
Slide 16: Tangible Asset Coverage
CFO OVERVIEW Tangible Asset Coverage Financial Measure Balance Sheet Fair Market Value December 31, 2024 $ Amount ($ in millions) Amount Estimate Cash $13.4 Debt:1 New Equipment* $81 ~$137 Lines of Credit (ABL)2 $182.9 Floor Plan – Used and Rental 81.1 Used Equipment $62 ~$71 Finance Lease Liabiliti
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: Capital Allocation Overview
CFO OVERVIEW Capital Allocation Overview STRATEGIC M&A ORGANIC GROWTH DIVIDEND Excess CAPITAL EXCESS Capital Strategic opportunities with in- $20.0MM share repurchase Dedicated to expansion, ~$7.8MM annual program in place, affording the network dealerships and in although common stock dividend emer
Slide 19: 2H 2024 Optimization Metrics
CFO OVERVIEW 2H 2024 Optimization Metrics REDUCED FLEET MAINTAINED LEVERAGE DECREASED SG&A ($ in millions) 1H 2024 2H 2024 (June 30, 2024) (December 31, 2024) Rental Fleet OEC $617.2 $571.2 Leverage (total debt minus cash) $858.01 $796.6 SG&A Expenses $229.1 $217.4 1ST HALF TO 2ND HALF COMPARISONS -
Slide 20: Adjusted EBITDA Bridge 2024 to 2025 Guidance
CFO OVERVIEW Adjusted EBITDA Bridge 2024 to 2025 Guidance FY 2025 OUTLOOK ($ IN MM) ADJUSTED EBITDA: FY 2025 From: GUIDANCE $175.0 - $190.0 (Net of New Equipment Floorplan Interest) 2024 Adj. EBITDA to 2025 Adj. EBITDA Guidance Bridge $200.0 $4.0 $1.0 $190.0 $3.0 $(1.3) $6.0 $182.5 $180.0 $7.7 $(6.2
Slide 21: Thank You
THANK YOU (NYSE:ALTG) Investor Relations Contact: Kevin Inda SCR Partners M: (225) 772-0254 E: Kevin@scr-ir.com 21
Slide 22: Supplemental Information: About the Company
SUPPLEMENTAL APPENDICES INFORMATION About the Company 22
Slide 23: Alta Equipment Group Overview
THE COMPANY Alta Equipment Group Overview Material Handling Construction E-mobility Distribution BRANDING MARKET RELATIONSHIPS OEM/SUPPLIER SELECT OFFERING PRODUCT SELECT Food and Beverage Highway, Street, and Bridge General Freight Trucking, Local Biofuel / Compost / Food Waste / SELECT END
Slide 24: Product Support Overview
THE COMPANY Product Support Overview Product We have capabilities to support all makes Support and models of Construction and Material Solutions Handling equipment. SERVICE Over 85 full-service locations across 15 states and 2 provinces Approx. 1,300 of Alta’s ~2,900 employees are factory traine
Slide 25: Product Support Yield Trends
THE COMPANY Product Support Yield Trends Parts and Service Sales follow Equipment Sales Parts and Service Sales ($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 $344.0
Slide 26: Alta Equipment Group Vs Pure-Play Rental Businesses
THE COMPANY Alta Equipment Group Vs Pure-Play Rental Businesses EQUIPMENT DEALERSHIP BUSINESS MODEL New and used equipment sales Protected exclusive areas of primary responsibility (APRs) 53% Exclusive rights to OEM equipment and parts Proprietary diagnostic software to service field populatio
Slide 27: Material Handling Revenue by End Market
THE COMPANY Alta Equipment Group – Material Handling Revenue by End Market Finance, Insurance, and Aggregate and Mining Real Estate 0% 2% Manufacturing End-Market Detail Agriculture, Forestry, and Retail Trade Landscaping Other 9% 11% 1% Transportation Equipment 20% Public Administration Rubber And
Slide 28: Construction Equipment Revenue by End Market
THE COMPANY Alta Equipment Group – Construction Equipment Revenue by End Market Finance, Insurance, and Real Estate Construction End-Market Detail 2% Aggregate and Manufacturing Retail Trade Mining 9% 2% 10% Building Construction General Contractors And Operative Agriculture, Forestry, and Builders
Slide 29: Alta Equipment Group Financial Profile
THE COMPANY Alta Equipment Group Financial Profile 2023 ($MM) 2022 2023 Pro Forma1 2024 Alta Revenue $1,571.8 $1,876.8 $1,876.8 $1,876.6 Acquisitions Revenue - - 74.1 - Total Revenue $1,571.8 $1,876.8 $1,950.9 $1,876.6 Alta Gross Profit $419.6 $507.2 $507.2 $493.7 Acquisition Gross Profit - - 25.2 -
Slide 30: Appendices: Unaudited Reconciliation of Non-GAAP Financial Measures
APPENDICES Unaudited Reconciliation of Non-GAAP Financial Measures 30
Slide 31: Adjusted EBITDA – GAAP Reconciliation
APPENDIX A Adjusted EBITDA – GAAP Reconciliation ($MM) 2021 2022 2023 Q4 2023 Q4 2024 2024 Net income/(loss) available to common shareholders $(23.4) $6.3 $5.9 $(2.7) $(11.4) $(65.1) Depreciation and amortization 95.8 112.0 132.6 36.5 34.7 144.5 Interest expense 24.0 31.8 57.0 16.1 23.4 81.3 Income
Slide 32: Free Cash Flow Performance – GAAP Reconciliation
APPENDIX B Free Cash Flow Performance – GAAP Reconciliation ($MM) 2023 2024 Levered Free Cash Flow after RTS Decisioning and Returns to Shareholders[1] 1 $22.3 $39.0 Reconciliation to Consolidated Statements of Cash Flows: Cash Paid Addbacks to EBITDA 2 (1.8) (10.3) Working Capital Components of Ope
Slide 33: Retained Cash Flow - GAAP Reconciliation
APPENDIX C Retained Cash Flow - GAAP Reconciliation ($MM) 2021 2022 2023 2024 Net income (loss) $(20.8) $9.3 $8.9 $(62.1) Adjustments to reconcile net income (loss) to Retained Cash Flow: Depreciation and amortization 95.8 112.0 132.6 144.5 Amortization of debt discount and debt issuance costs 2.0 1
Slide 34: Economic EBIT – GAAP Reconciliation
APPENDIX D Economic EBIT – GAAP Reconciliation ($MM) 2021 2022 2023 2024 Net income/(loss) available to common shareholders $(23.4) $6.3 $5.9 $(65.1) Depreciation and amortization 95.8 112.0 132.6 144.5 Interest expense 24.0 31.8 57.0 81.3 Income tax expense/(benefit) 3.6 1.3 (6.4) (4.2) EBITDA [1]
Slide 35: Unlevered FCF Before/After Growth Investments Reconciliation
APPENDIX E Unlevered FCF Before/After Growth Investments Reconciliation ($MM) 2021 2022 2023 2024 Economic EBIT [1] $78.6 $113.8 $122.3 $77.7 Tax (Expense)/Benefit (3.6) (1.3) 6.4 4.2 Unlevered FCF Before Growth Related Investments [1] $75.0 $112.5 $128.7 $81.9 1 Working Capital Investment (37.9) (4