Alta Equipment Group Inc. · NYSE:ALTG
Alta Equipment — Q1 2024 Earnings Presentation
33 slides from Alta Equipment's earnings presentation, May 8, 2024
Slide 1: Earnings Presentation First Quarter 2024
EARNINGS PRESENTATION FIRST QUARTER 2024 May 8, 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 & INT RODUCT ION Agenda INTRODUCTION CEO Overview Executive Officers: Q1 2024 Highlights Business Conditions Ryan Greenawalt, CEO YTD Activity Trends & Tony Colucci, CFO Growth Strategy and Execution CFO Overview Q1 2024 Financial Summary Capital Structure and Debt Summary Capit
Slide 4: CEO Overview
CEO OVERVIEW Ryan Greenawalt Earnings Presentation | First Quarter 2024 | May 8, 2024 4
Slide 5: Q1 2024 Highlights
CEO OVERVIEW Revenue Increased 5.0% over the year ago quarter, to $441.6 million Q1 2024 Construction and Material Handling Revenue Increased to $255.6 million and $174.3 million, respectively Highlights: New and Used Equipment Sales Grew 4.1% over the year ago quarter, to $228.6 million, up $9.0 mi
Slide 6: Business Conditions
CEO OVERVIEW 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 ove
Slide 7: YTD Activity Trends
CEO OVERVIEW 2024: January - March [1] 2000 Service Call Orders Per Day: 1500 1000 Consistent service department YTD 500 call volumes year over year despite mild winter Activity 0 2024 Q1 Average Calls/Count: 1,289 2023 Q1 Average Calls/Count: 1,297 2023: January - March Trends: 2000 [1] Average
Slide 8: Growth Strategy and Execution
CEO OVERVIEW 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 Growth Opportunity for Accretive Transactions Remain in place for deals
Slide 9: CFO Overview
CFO OVERVIEW Tony Colucci Earnings Presentation | First Quarter 2024 | May 8, 2024 9
Slide 10: Q1 2024 Financial Summary
CFO OVERVIEW Q1 2024 Financial Summary Quarterly Comparisons - Revenue Quarterly Comparisons Parts sales New and used Revenue Metrics 17% Construction Segment equipment sales Total revenue growth of $20.9MM, or 5.0% • Total revenue growth of $22.5MM, or 9.7%, from 52% from $420.7MM in Q1 2023 to $44
Slide 11: Q1 2024 Financial Performance
CFO OVERVIEW Q1 2024 Financial Performance Q1 2024 Quarter over Quarter Revenue / Gross Profit QUARTER-OVER-QUARTER – REVENUE & GROSS PROFIT ($MM) Consolidated $121.3 $120.6 • Organic revenue grew $3.6MM, or 0.9% $441.6 $420.7 • Gross profit fell $0.7MM for a total of $120.6MM, a 0.6% decrease • Org
Slide 12: Q1 2024 Adjusted EBITDA / Economic EBIT
CFO OVERVIEW Q1 2024 Adjusted EBITDA / Economic EBIT Adj. EBITDA1 / Adj. PF EBITDA1 Adj. EBITDA1 / Economic EBIT1 ($MM) / TTM Pro Forma2 Q1 2023 Q1 2023 $44.0 $191.4 $191.4 $40.8 Q1 2024 Q1 2024 $158.1 $34.1 $34.1 $120.0 $121.7 $113.0 $113.8 $78.6 Conversion % 65.5% 72.0% 63.6% 59.0% 2021 2022 2023
Slide 13: Q1 2024 EBITDA Bridge and Core Business Isolation
CFO OVERVIEW Q1 2024 EBITDA Bridge and Core Business Isolation Ecoverse: Core Business: Q1 2023 Dealer Restocking Peaklogix: Interest Rate Sensitive Financing: Customer Offering Non-Activity Based [a] Finance Charge [b] [a] Core Business[c] Fundamentals YoY: New/Used Equipment Sales: +12.6% Parts &
Slide 14: Alta Equipment Group Financial Profile
CFO OVERVIEW Alta Equipment Group Financial Profile 2023 Q1 2023 Q1 2024 TTM ($MM) 2022 2023 Pro Forma1 Pro Forma1 Pro Forma1 March 31, 2024 Alta Revenue $1,571.8 $1,876.8 $1,876.8 $420.7 $441.6 $1,897.7 Acquisitions Revenue - - 74.1 23.7 - 50.4 Total Revenue $1,571.8 $1,876.8 $1,950.9 $444.4 $441.6
Slide 15: Capital Structure / Credit Profile
CFO OVERVIEW Capital Structure / Credit Profile Balance Sheet Strength / Liquidity5 Capital Structure ($MM) EV/2024F March 31, 2024 $ Amount EBITDA $797MM Cash $5.6 700,000 $540.2MM Debt:1 600,000 500,000 Lines of Credit (ABL)2 $330.0 400,000 1.6x Floor Plan – Used and Rental 98.4 Coverage $330MM 30
Slide 16: Debt Structure and Maturity Runoff
CFO OVERVIEW Debt Structure and Maturity Runoff Debt Maturity ABL SSSL $500MM Drawn $450MM Undrawn $400MM $350MM $318MM $315MM $300MM $250MM $200MM $150MM $100MM $50MM $0MM $0MM $0MM $0MM 2022 2023 2024 12/31/2025 4/15/2026 ABL SENIOR SECURED SECOND INTEREST RATE CAP $485MM facility committed for
Slide 17: Capital Allocation Overview
CFO OVERVIEW Capital Allocation Overview STRATEGIC M&A ORGANIC GROWTH DIVIDEND Excess CAPITAL EXCESS Capital Deal pipeline remains active, Initiated share repurchase Devoted to expansion, as ~$7.6MM annual program in July 2022, affording accretive, and actionable ‘23 organic revenue growth was commo
Slide 18: Rental Fleet and Cash Flow Summary
CFO OV ERVIEW Rental Fleet and Cash Flow Summary Rental Cap-Ex Summary ($MM)1 Three Mos Three Mos Ended Mar Ended Mar +3% YOY 2021 2022 2023 31, 2023 31, 2024 Improvement Gross Rental Capex $207.6 $186.8 $242.4 $57.3 $51.7 in rental rates 6 OEC of Rental Fleet Sold (160.5) (139.0) (155.1) (31.7) (36
Slide 19: Adjusting FY 2024 Guidance
CFO OVERVIEW Adjusting FY 2024 Guidance FY 2024 OUTLOOK ($ IN MM) ADJUSTED EBITDA: FY 2024 GUIDANCE $207.5MM – $212.5MM (Net of New Equipment Floorplan Interest) 2024 GUIDANCE COMMENTARY: Reducing top-end guidance by $5.0MM, to $212.5MM; leaving low-end guidance intact Strong rental and product
Slide 20: Thank You
THANK YOU (NYSE:ALTG) Investor Relations Contact: Kevin Inda SCR Partners M: (225) 772-0254 E: Kevin@scr-ir.com Earnings Presentation | First Quarter 2024 | May 8, 2024 20
Slide 21: Supplemental Information: About the Company
SUPPLEMENTAL APPENDICES INFORMATION About the Company Earnings Presentation | First Quarter 2024 | May 8, 2024 21
Slide 22: Expanding Footprint in Key Geographic Markets
THE COMPANY Expanding Footprint in Key Geographic Markets Strategic Expansion 85 locations throughout Michigan, Significant investment made in Indiana, Ohio, Illinois, scalable infrastructure Massachusetts, Maine, New Hampshire, Connecticut, New York, Complementary offerings in Vermont, Florida, Vir
Slide 23: Product Support Overview
THE COMPANY Product Support Overview Product We have capabilities to support all makes Support and models of Construction and Material Solutions Handling equipment. SERVICE Over 85 full-service locations across 15 states and 2 provinces Approx. 1,325 of Alta’s ~3,000 employees are factory traine
Slide 24: Product Support Yield Trends
THE COMPANY Product Support Yield Trends Parts and Service Sales ($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 Overview
THE COMPANY Alta Equipment Group Overview Material Handling Construction E-mobility Distribution BRANDING MARKET RELATIONSHIPS OEM/SUPPLIER SELECT OFFERING PRODUCT SELECT Manufacturing Highway, Street, and Bridge General Freight Trucking, Local Biofuel / Compost / Food Waste / SELECT END MAR
Slide 26: ALTG's Growth Financing Model – 2023 Illustrative
THE COMPANY ALTG’s Growth Financing Model – 2023 Illustrative CAPITAL STRUCTURE SUPPORTS GROWTH STRATEGY ALTG’s ABL-based capital structure alongside operating cash flows provide a framework for continuation of acquisition and organic growth Operating cash flows applied against the ABL revolver
Slide 27: 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 28: Transformative Growth and Execution since IPO
THE COMPANY Transformative Growth and Execution since IPO THEN: IPO1 NOW (~4.0 years from IPO) Revenue Revenue3 $900MM $1,898MM Locations2 Locations3 43 85 Total Employees2 Total Employees3 ~1,700 ~3,000 Technicians2 Technicians3 ~850 ~1,325 Adj. EBITDA Adj. PF EBITDA4 $94M $191M FCFE Yield FCFE Yie
Slide 29: Appendices: Reconciliation of Non-GAAP Financial Measures
APPENDICES Unaudited Reconciliation of Non-GAAP Financial Measures Earnings Presentation | First Quarter 2024 | May 8, 2024 29
Slide 30: Adjusted EBITDA – GAAP Reconciliation
APP ENDIX A Adjusted EBITDA – GAAP Reconciliation Three Mos Ended Three Mos Ended TTM ($MM) 2021 2022 2023 Mar 31, 2023 Mar 31, 2024 Mar 31, 2024 Net income/(loss) available to common shareholders $(23.4) $6.3 $5.9 $0.2 $(12.7) $(7.0) Depreciation and amortization 95.8 112.0 132.6 28.1 34.0 138.5 In
Slide 31: Free Cash Flow from Operations - GAAP Reconciliation
APP ENDIX B Free Cash Flow from Operations - GAAP Reconciliation Three Mos Ended Three Mos Ended ($MM) 2021 2022 2023 Mar 31, 2023 Mar 31, 2024 Net cash provided by (used in) operating activities per GAAP $30.7 $26.0 $63.8 $(20.1) $(11.9) Adjustments for non-recurring items 1 4.7 3.7 4.9 0.3 2.0 Tra
Slide 32: Economic EBIT – GAAP Reconciliation
APP ENDIX C Economic EBIT – GAAP Reconciliation Three Mos Ended Three Mos Ended ($MM) 2021 2022 2023 Mar 31, 2023 Mar 31, 2024 Net income/(loss) available to common shareholders per GAAP $(23.4) $6.3 $5.9 $0.2 $(12.7) Depreciation and amortization 95.8 112.0 132.6 28.1 34.0 Interest expense 24.0 31.
Slide 33: Retained Cash Flow - GAAP Reconciliation
APP ENDIX D Retained Cash Flow - GAAP Reconciliation Three Mos Ended Three Mos Ended ($MM) 2021 2022 2023 Mar 31, 2023 Mar 31, 2024 Net income (loss) per GAAP $(20.8) $9.3 $8.9 $1.0 $(11.9) Adjustments to reconcile net income (loss) to Retained Cash Flow: Depreciation and amortization 95.8 112.0 132