First Quarter Financial Highlights:
LIVONIA, Mich., May 08, 2024 (GLOBE NEWSWIRE) -- Alta Equipment Group Inc. (NYSE:ALTG) ("Alta", "we", "our" or the "Company"), a leading provider of premium material handling, construction and environmental processing equipment and related services, today announced financial results for the first quarter ended March 31, 2024.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of Alta, said "Our first quarter results, in line with history and expectations, once again reflected the seasonal nature of our business as the winter weather impacted the Construction Equipment segment in our northern regions. Despite the seasonality, we were able to achieve $441.6 million of revenues for the quarter, up $20.9 million from the same period last year. Additionally, activity-related key performance indicators presented well for the quarter and our combined product support and rental revenues grew $6.3 million, or 3.7%, on an organic basis when compared to Q1 2023, reflecting the resilience of our end markets and continued elevated levels of activity and equipment utilization in our customer base. While new and used equipment sales in our core lift truck and construction segments increased $29.3 million from a year ago, equipment revenue mix negatively impacted equipment sales margins overall. Specifically, Ecoverse's high-margin equipment sales were down $14.4 million versus the first quarter of last year on a record sales comparison, as Ecoverse was replenishing its sub-dealers' inventories in the first quarter of 2023 amidst OEM equipment supply chain normalization. Additionally, within our Material Handling segment, our Peaklogix subsidiary, which sells high-margin automated warehouse system solutions, was down $8.7 million when compared to last year as its customer base has been impacted by the elevated level of interest rates leading to elongated capex decision making. While we believe the Peaklogix business will continue to be impacted by 'higher for longer' interest rates, we are confident that the Ecoverse variance in the first quarter is isolated as its customer base, which is focused on waste management, organics processing and composting, continues to realize solid annualized growth and equipment utilization remains strong."
Mr. Greenawalt added, "As we emerge from the weather-impacted first quarter and into construction season in the north, we remain bullish about the backlog of work and general activity levels at our customers for the remainder of 2024, which we believe will bode well for our product support and rental business lines, both of which experienced their natural seasonal increase in April. That said, we believe new equipment sales and sales profit margins, which have ebbed and flowed quarter to quarter historically, could be impacted over the remainder of the year by the increase of new equipment supply on the market and competitive pricing pressures. Nevertheless, we intend to continue to win our share of equipment deals by selling our overall dealership capabilities and what we believe to be an industry-leading value proposition."
In conclusion, Mr. Greenawalt commented, "Despite the potential for choppiness in new equipment sales, we remain positive regarding our opportunities this year and will continue to focus on customer equipment ‘uptime' relative to our product support business lines as well as our absorption ratio and cost optimization. Industry indicators continue to be supportive of medium and long-term growth in our end-user markets. We have a solid equipment backlog in our Material Handing segment and our Construction Equipment business will benefit from strong non-residential construction activity, increased state DOT budgets and accelerated spending on federal infrastructure programs for years to come. I sincerely want to thank all of our employees for their hard work in the first quarter. I am grateful for their dedication to our Guiding Principles and for providing best-in-class service to our customers."
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 March 31, 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 meaningfulConference Call Information:
Alta management will host a conference call and webcast today at 5:00 p.m. Eastern Time today to discuss and answer questions about the Company's financial results for the first quarter ended March 31, 2024. Additionally, supplementary presentation slides will be accessible on the "Investor Relations" section of the Company's website at https://investors.altaequipment.com.
Conference Call Details:
What: Alta Equipment Group First Quarter 2024 Earnings Call and Webcast Date: Wednesday, May 8, 2024 Time: 5:00 p.m. Eastern 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/885157610The audio replay will be archived through May 22, 2024.
About Alta Equipment Group Inc.
Alta owns and operates one of the largest integrated equipment dealership platforms in North America. Through our branch network, we sell, rent, and provide parts and service support for several categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, other construction equipment and allied products. Alta has operated as an equipment dealership for 40 years and has developed a branch network that includes over 85 total locations across Michigan, Illinois, Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada and Florida and the Canadian provinces of Ontario and Quebec. Alta offers its customers a one-stop-shop for their equipment needs through its broad, industry-leading product portfolio. More information can be found at www.altg.com.
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 ...
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