Alta Equipment Group Announces Fourth Quarter and Full Year 2024 Financial Results and Provides Adjusted EBITDA Guidance for 2025
Alta Equipment Group (ALTG) reported challenging financial results for Q4 and full year 2024, with total revenues declining 4.5% to $498.1M in Q4 and remaining flat at $1.87B for the full year. The company faced significant headwinds including elevated interest rates and construction market uncertainty.
Key financial metrics show:
- Q4 net loss of $(11.4M) compared to $(2.7M) in 2023
- Full-year net loss of $(65.1M) versus $5.9M profit in 2023
- Product support revenues grew 5.5% year-over-year
- Equipment sales decreased 3.8% to $987.0M for the year
Despite challenges, Alta demonstrated resilience through its dealership model and achieved organic growth in product support for the fifth consecutive year. The company provided 2025 Adjusted EBITDA guidance of $175.0M to $190.0M, expressing optimism for market normalization and improved performance.
Alta Equipment Group (ALTG) ha riportato risultati finanziari difficili per il quarto trimestre e per l'intero anno 2024, con ricavi totali in calo del 4,5% a $498,1 milioni nel Q4 e rimasti stabili a $1,87 miliardi per l'intero anno. L'azienda ha affrontato notevoli difficoltà, tra cui tassi di interesse elevati e incertezze nel mercato delle costruzioni.
I principali indicatori finanziari mostrano:
- Perdita netta nel Q4 di $(11,4 milioni) rispetto a $(2,7 milioni) nel 2023
- Perdita netta annuale di $(65,1 milioni) rispetto a un profitto di $5,9 milioni nel 2023
- I ricavi da supporto prodotto sono aumentati del 5,5% rispetto all'anno precedente
- Le vendite di attrezzature sono diminuite del 3,8% a $987,0 milioni per l'anno
Nonostante le sfide, Alta ha dimostrato resilienza attraverso il suo modello di concessionaria e ha raggiunto una crescita organica nel supporto prodotto per il quinto anno consecutivo. L'azienda ha fornito una guida per l'Adjusted EBITDA del 2025 di $175,0 milioni a $190,0 milioni, esprimendo ottimismo per una normalizzazione del mercato e un miglioramento delle performance.
Alta Equipment Group (ALTG) informó sobre resultados financieros desafiantes para el cuarto trimestre y el año completo 2024, con ingresos totales que cayeron un 4.5% a $498.1 millones en el Q4 y permanecieron estables en $1.87 mil millones para el año completo. La empresa enfrentó vientos en contra significativos, incluidos tasas de interés elevadas e incertidumbre en el mercado de la construcción.
Los principales indicadores financieros muestran:
- Pérdida neta en el Q4 de $(11.4 millones) en comparación con $(2.7 millones) en 2023
- Pérdida neta anual de $(65.1 millones) frente a una ganancia de $5.9 millones en 2023
- Los ingresos por soporte de productos crecieron un 5.5% interanual
- Las ventas de equipos disminuyeron un 3.8% a $987.0 millones para el año
A pesar de los desafíos, Alta demostró resiliencia a través de su modelo de concesionario y logró un crecimiento orgánico en el soporte de productos por quinto año consecutivo. La empresa proporcionó una guía de EBITDA ajustado para 2025 de $175.0 millones a $190.0 millones, expresando optimismo por la normalización del mercado y un mejor rendimiento.
알타 장비 그룹 (ALTG)은 2024년 4분기 및 전체 연도에 대한 어려운 재무 결과를 보고했으며, 4분기 총 수익은 4.5% 감소하여 4억 9,810만 달러에 이르고, 전체 연도는 18억 7천만 달러로 유지되었습니다. 이 회사는 높은 금리와 건설 시장의 불확실성을 포함한 상당한 어려움에 직면했습니다.
주요 재무 지표는 다음과 같습니다:
- 2023년 $(2.7M)와 비교하여 4분기 순손실 $(11.4M)
- 2023년 $5.9M의 이익에 비해 연간 순손실 $(65.1M)
- 제품 지원 수익이 전년 대비 5.5% 증가
- 장비 판매는 연간 3.8% 감소하여 9억 8,700만 달러
어려움에도 불구하고, 알타는 대리점 모델을 통해 회복력을 보여주었고, 다섯 번째 연속으로 제품 지원에서 유기적 성장을 달성했습니다. 이 회사는 2025년 조정 EBITDA 가이던스를 1억 7,500만 달러에서 1억 9,000만 달러로 제공하며, 시장 정상화와 성과 개선에 대한 낙관을 표현했습니다.
Alta Equipment Group (ALTG) a annoncé des résultats financiers difficiles pour le quatrième trimestre et l'année entière 2024, avec des revenus totaux en baisse de 4,5 % à 498,1 millions de dollars au Q4 et restant stables à 1,87 milliard de dollars pour l'année entière. L'entreprise a rencontré des vents contraires significatifs, notamment des taux d'intérêt élevés et une incertitude sur le marché de la construction.
Les principaux indicateurs financiers montrent :
- Perte nette de $(11,4 millions) au Q4 par rapport à $(2,7 millions) en 2023
- Perte nette annuelle de $(65,1 millions) contre un bénéfice de 5,9 millions de dollars en 2023
- Les revenus du soutien produit ont augmenté de 5,5 % d'une année sur l'autre
- Les ventes d'équipements ont diminué de 3,8 % à 987,0 millions de dollars pour l'année
Malgré les défis, Alta a démontré sa résilience grâce à son modèle de concessionnaire et a réalisé une croissance organique dans le soutien produit pour la cinquième année consécutive. L'entreprise a fourni des prévisions d'EBITDA ajusté pour 2025 de 175,0 millions de dollars à 190,0 millions de dollars, exprimant un optimisme quant à la normalisation du marché et à une performance améliorée.
Alta Equipment Group (ALTG) berichtete über herausfordernde finanzielle Ergebnisse für das 4. Quartal und das gesamte Jahr 2024, wobei die Gesamterlöse im 4. Quartal um 4,5 % auf 498,1 Millionen USD sanken und für das gesamte Jahr bei 1,87 Milliarden USD stagnierten. Das Unternehmen sah sich erheblichen Herausforderungen gegenüber, darunter hohe Zinssätze und Unsicherheiten auf dem Baumarkt.
Wichtige Finanzkennzahlen zeigen:
- 4. Quartal Nettverlust von $(11,4 Millionen) im Vergleich zu $(2,7 Millionen) im Jahr 2023
- Jahresnettoverlust von $(65,1 Millionen) gegenüber einem Gewinn von 5,9 Millionen USD im Jahr 2023
- Die Einnahmen aus Produktunterstützung wuchsen im Jahresvergleich um 5,5 %
- Die Ausrüstungsverkäufe sanken um 3,8 % auf 987,0 Millionen USD für das Jahr
Trotz der Herausforderungen zeigte Alta Resilienz durch ihr Händlernetz und erzielte im fünften Jahr in Folge organisches Wachstum im Bereich Produktunterstützung. Das Unternehmen gab eine Prognose für das bereinigte EBITDA 2025 von 175,0 Millionen USD bis 190,0 Millionen USD ab und äußerte Optimismus hinsichtlich der Normalisierung des Marktes und einer verbesserten Leistung.
- Product support revenues grew 5.5% YoY
- Strong cash flows and $60M debt reduction since June 2024
- Returned $13.6M to shareholders despite challenges
- Material Handling segment showed resilience with slight revenue growth
- Q4 net loss widened to $11.4M from $2.7M YoY
- Full-year net loss of $65.1M vs $5.9M profit in 2023
- Equipment sales decreased 3.8% to $987.0M
- Construction segment faced reduced volumes and pressured margins
- Q4 Adjusted EBITDA declined 18.1% to $40.7M
Insights
Alta Equipment's Q4 and full-year 2024 results reveal significant profitability challenges despite relatively stable top-line performance. The company's full-year revenue remained essentially flat at
The results demonstrate how macroeconomic headwinds compressed margins across Alta's business segments. Construction equipment volumes declined
Despite these challenges, Alta's business model showed resilience in key areas. Product support revenues grew
Looking ahead, Alta's 2025 guidance of
Equipment Fleet and Working Capital Management Generate Strong Fourth Quarter Cash Flows as Pressured Volumes and Gross Margins on Equipment Sales Drive Quarterly and Annual Earnings Decline
Fourth Quarter Financial Highlights: (comparisons are year over year)
- Total revenues decreased
4.5% year over year to$498.1 million - Construction and Material Handling revenues of
$318.6 million and$168.6 million , respectively - Product support revenues decreased
2.3% year over year with Parts sales decreasing to$67.9 million and Service revenues decreasing to$59.0 million - New and used equipment sales decreased
3.7% to$287.1 million - Net loss available to common stockholders of
$(11.4) million compared to$(2.7) million in 2023 - Basic and diluted net loss per share of
$(0.34) compared to$(0.08) in 2023 - Adjusted basic and diluted pre-tax net (loss) income per share* of
$(0.46) for 2024 compared to$0.04 for 2023 - Adjusted EBITDA* decreased
18.1% to$40.7 million compared to$49.7 million in 2023
2024 Full Year Financial Highlights: (comparisons are year over year)
- Total revenues decreased
$0.2 million year over year to$1,876.6 million - Construction and Material Handling revenues of
$1,131.4 million and$687.4 million , respectively - Master Distribution with revenues of
$59.2 million - Product Support revenues increased
5.5% year over year with Parts sales increasing to$294.4 million and Service revenues increasing to$253.8 million - New and used equipment sales decreased
3.8% to$987.0 million - Net (loss) income available to common stockholders of
$(65.1) million compared to$5.9 million in 2023 - Basic and diluted net (loss) income per share of
$(1.96) compared to$0.18 in 2023 - Adjusted basic and diluted pre-tax net (loss) income per share* of
$(1.24) compared to$0.50 and$0.49 , respectively, in 2023 - Adjusted EBITDA* decreased
12.1% to$168.3 million compared to$191.4 million in 2023
LIVONIA, Mich., March 05, 2025 (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 fourth quarter and full year ended December 31, 2024.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of Alta, said “Overall, our 2024 performance was impacted by several factors including elevated interest rates and uncertainty regarding the U.S. presidential race, both of which contributed to a moderation of construction spending and a reduction of non-residential project starts in the U.S., when compared to 2023. This backdrop resulted in an overall decline in the North American construction equipment market, as equipment volumes within some of our regional markets were off approximately 10 to 20 percent, year over year. Additionally, in the face of waning demand, construction pricing was further pressured throughout the year as industry dealer channels were overstocked across the landscape, impacting gross margins and market share in our Construction segment. The factors that challenged our Construction segment also impacted our Master Distribution segment in 2024, negatively affecting equipment volumes and gross margins year over year. In contrast, our Material Handling segment showed more resiliency, as North American lift truck deliveries grew in 2024 as the industry continued to work through record backlogs generated post-COVID. As a result, revenues for our Material Handling segment were
Mr. Greenawalt continued, “Despite the contraction in the construction equipment markets and other macroeconomic concerns, our total revenues for 2024 were essentially flat from last year, at
In conclusion, Mr. Greenawalt said, “Despite the current lack of clarity regarding interest rate levels and the proposed policy impacts of the new administration, our outlook for 2025 remains positive relative to 2024. We expect the oversupply of new equipment to normalize in the coming quarters, enhancing our competitiveness in the construction segment in 2025, with long-term stability driven by sustained capital investment in end-user construction markets. Lastly, we believe that the prudent cost and inventory optimization initiatives undertaken in 2024 provide a solid foundation for our business as we launch into 2025 and further create operating leverage for our business in the future. In closing, our success would not be possible without the ongoing determination and dedication of our employees, and I am very proud of their commitment to our Alta’s guiding principles in 2024, which are predicated on teamwork and fostering customers for life.”
Full Year 2025 Financial Guidance and Other Financial Notes:
- The Company released its 2025 guidance range and expects to report Adjusted EBITDA between
$175.0 million and$190.0 million for the 2025 fiscal year.
| CONSOLIDATED RESULTS OF OPERATIONS (amounts in millions unless otherwise noted) | |||||||||||||||
| Three Months Ended December 31, | Increase (Decrease) | ||||||||||||||
| 2024 | 2023 | 2024 versus 2023 | |||||||||||||
| Revenues: | |||||||||||||||
| New and used equipment sales | $ | 287.1 | $ | 298.1 | $ | (11.0 | ) | (3.7 | )% | ||||||
| Parts sales | 67.9 | 69.1 | (1.2 | ) | (1.7 | )% | |||||||||
| Service revenue | 59.0 | 60.8 | (1.8 | ) | (3.0 | )% | |||||||||
| Rental revenue | 47.5 | 55.3 | (7.8 | ) | (14.1 | )% | |||||||||
| Rental equipment sales | 36.6 | 38.2 | (1.6 | ) | (4.2 | )% | |||||||||
| Total revenues | 498.1 | 521.5 | (23.4 | ) | (4.5 | )% | |||||||||
| Cost of revenues: | |||||||||||||||
| New and used equipment sales | 249.2 | 252.3 | (3.1 | ) | (1.2 | )% | |||||||||
| Parts sales | 47.0 | 45.0 | 2.0 | 4.4 | % | ||||||||||
| Service revenue | 25.6 | 26.4 | (0.8 | ) | (3.0 | )% | |||||||||
| Rental revenue | 4.0 | 6.8 | (2.8 | ) | (41.2 | )% | |||||||||
| Rental depreciation | 27.4 | 30.0 | (2.6 | ) | (8.7 | )% | |||||||||
| Rental equipment sales | 28.4 | 28.0 | 0.4 | 1.4 | % | ||||||||||
| Cost of revenues | 381.6 | 388.5 | (6.9 | ) | (1.8 | )% | |||||||||
| Gross profit | 116.5 | 133.0 | (16.5 | ) | (12.4 | )% | |||||||||
| Selling, general and administrative expenses | 106.8 | 114.3 | (7.5 | ) | (6.6 | )% | |||||||||
| Depreciation and amortization expense | 7.3 | 6.5 | 0.8 | 12.3 | % | ||||||||||
| Total operating expenses | 114.1 | 120.8 | (6.7 | ) | (5.5 | )% | |||||||||
| Income from operations | 2.4 | 12.2 | (9.8 | ) | (80.3 | )% | |||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, floor plan payable – new equipment | (3.4 | ) | (2.6 | ) | (0.8 | ) | 30.8 | % | |||||||
| Interest expense – other | (20.0 | ) | (13.5 | ) | (6.5 | ) | 48.1 | % | |||||||
| Other income | 1.5 | 2.5 | (1.0 | ) | (40.0 | )% | |||||||||
| Total other expense | (21.9 | ) | (13.6 | ) | (8.3 | ) | 61.0 | % | |||||||
| Loss before taxes | (19.5 | ) | (1.4 | ) | (18.1 | ) | NM | ||||||||
| Income tax (benefit) provision | (8.9 | ) | 0.5 | (9.4 | ) | NM | |||||||||
| Net loss | (10.6 | ) | (1.9 | ) | (8.7 | ) | NM | ||||||||
| Preferred stock dividends | (0.8 | ) | (0.8 | ) | — | — | |||||||||
| Net loss available to common stockholders | $ | (11.4 | ) | $ | (2.7 | ) | $ | (8.7 | ) | NM | |||||
| Adjusted EBITDA(1) | $ | 40.7 | $ | 49.7 | $ | (9.0 | ) | (18.1 | )% | ||||||
| NM - calculated change not meaningful | |||||||||||||||
| Year Ended December 31, | Increase (Decrease) | ||||||||||||||
| 2024 | 2023 | 2024 versus 2023 | |||||||||||||
| Revenues: | |||||||||||||||
| New and used equipment sales | $ | 987.0 | $ | 1,025.9 | $ | (38.9 | ) | (3.8 | )% | ||||||
| Parts sales | 294.4 | 278.3 | 16.1 | 5.8 | % | ||||||||||
| Service revenues | 253.8 | 241.3 | 12.5 | 5.2 | % | ||||||||||
| Rental revenues | 203.4 | 202.4 | 1.0 | 0.5 | % | ||||||||||
| Rental equipment sales | 138.0 | 128.9 | 9.1 | 7.1 | % | ||||||||||
| Total revenues | 1,876.6 | 1,876.8 | (0.2 | ) | — | ||||||||||
| Cost of revenues: | |||||||||||||||
| New and used equipment sales | 837.9 | 853.6 | (15.7 | ) | (1.8 | )% | |||||||||
| Parts sales | 196.2 | 183.2 | 13.0 | 7.1 | % | ||||||||||
| Service revenues | 105.8 | 103.4 | 2.4 | 2.3 | % | ||||||||||
| Rental revenues | 22.5 | 24.8 | (2.3 | ) | (9.3 | )% | |||||||||
| Rental depreciation | 115.9 | 110.1 | 5.8 | 5.3 | % | ||||||||||
| Rental equipment sales | 104.6 | 94.5 | 10.1 | 10.7 | % | ||||||||||
| Total cost of revenues | 1,382.9 | 1,369.6 | 13.3 | 1.0 | % | ||||||||||
| Gross profit | 493.7 | 507.2 | (13.5 | ) | (2.7 | )% | |||||||||
| Selling, general and administrative expenses | 446.5 | 430.3 | 16.2 | 3.8 | % | ||||||||||
| Non-rental depreciation and amortization | 28.6 | 22.5 | 6.1 | 27.1 | % | ||||||||||
| Total operating expenses | 475.1 | 452.8 | 22.3 | 4.9 | % | ||||||||||
| Income from operations | 18.6 | 54.4 | (35.8 | ) | (65.8 | )% | |||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, floor plan payable – new equipment | (12.1 | ) | (8.4 | ) | (3.7 | ) | 44.0 | % | |||||||
| Interest expense – other | (69.2 | ) | (48.6 | ) | (20.6 | ) | 42.4 | % | |||||||
| Other income | 3.1 | 5.1 | (2.0 | ) | (39.2 | )% | |||||||||
| Loss on extinguishment of debt | (6.7 | ) | — | (6.7 | ) | NM | |||||||||
| Total other expense, net | (84.9 | ) | (51.9 | ) | (33.0 | ) | 63.6 | % | |||||||
| (Loss) income before taxes | (66.3 | ) | 2.5 | (68.8 | ) | NM | |||||||||
| Income tax benefit | (4.2 | ) | (6.4 | ) | 2.2 | NM | |||||||||
| Net (loss) income | (62.1 | ) | 8.9 | (71.0 | ) | NM | |||||||||
| Preferred stock dividends | (3.0 | ) | (3.0 | ) | — | — | |||||||||
| Net (loss) income available to common stockholders | $ | (65.1 | ) | $ | 5.9 | $ | (71.0 | ) | NM | ||||||
| Adjusted EBITDA(1) | $ | 168.3 | $ | 191.4 | $ | (23.1 | ) | (12.1 | )% | ||||||
| NM - calculated change not meaningful | |||||||||||||||
(1) Adjusted EBITDA is a non-GAAP measure. Refer below to “Use of Non-GAAP Financial Measures” for a definition of Adjusted EBITDA and Reconciliation of Non-GAAP measures for a reconciliation of our Adjusted EBITDA to net (loss) income, the most comparable U.S. GAAP measure.
Conference 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 fourth quarter and full year ended December 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 Fourth Quarter and Full Year 2024 Earnings Call and Webcast |
| Date: | Wednesday, March 5, 2025 |
| Time: | 5:00 p.m. Eastern Time |
| Live call: | (833) 470-1428 |
| International: | https://www.netroadshow.com/events/global-numbers?confId=76339 |
| Live call access code: | 626132 |
| Audio replay: | (866)-813-9403 |
| Replay access code: | 909287 |
| Webcast: | https://events.q4inc.com/attendee/852719845 |
The audio replay will be archived through March 19, 2025.
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 and inflationary pressures resulting from supply chain disruptions; labor market dynamics that impact the price and availability of labor; negative impacts on customer payment policies; adverse banking and governmental regulations, resulting in a potential reduction to the fair value of our assets; the performance and financial viability of key suppliers, contractors, customers, and financing sources; our key OEM's relative approaches to competitive pricing dynamics in the marketplace and how their approaches impact the competitiveness of the equipment we sell and our market share; economic, industry, business and political conditions including their effects on governmental policy and government actions that disrupt our supply chain or sales channels, including taxes and tariffs which impact us or our key suppliers; fluctuations in interest rates and the relative tenor of those levels; the demand and market price for our equipment and product support; collective bargaining agreements and our relationship with our union-represented employees; our success in identifying acquisition targets and integrating acquisitions; our success in expanding into and doing business in additional markets; our ability to raise capital at favorable terms; the competitive environment for our products and services; our ability to continue to innovate and develop new business lines; our ability to attract and retain key personnel, including, but not limited to, skilled technicians; our ability to maintain our listing on the New York Stock Exchange; the impact of cyber or other security threats or other disruptions to our businesses; our ability to realize the anticipated benefits of acquisitions or divestitures, rental fleet and other organic investments or internal reorganizations; federal, state, and local government budget uncertainty, especially as it relates to infrastructure projects and taxation; currency risks and other risks associated with international operations; and other risks and uncertainties identified in this presentation or indicated from time to time in the section entitled “Risk Factors” in Alta’s annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission. Alta cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. Alta does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
*Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we disclose non-GAAP financial measures, including Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted pre-tax net income, and Adjusted basic and diluted pre-tax net income per share, in this press release because we believe they are useful performance measures that assist in an effective evaluation of our operating performance when compared to our peers, without regard to financing methods or capital structure. We believe such measures are useful for investors and others in understanding and evaluating our operating results in the same manner as our management. However, such measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for, or in isolation from, net income, revenues, operating profit, debt, or any other operating performance measures calculated in accordance with GAAP.
We define Adjusted EBITDA as net income before interest expense (not including floorplan interest paid on new equipment), income taxes, depreciation and amortization, adjustments for certain one-time or non-recurring items and other adjustments. We exclude these items from net income in arriving at Adjusted EBITDA because these amounts are either non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Management uses Adjusted total net debt and floor plan payables to reflect the Company's estimated financial obligations less cash and floor plan payables on new equipment ("FPNP"). The FPNP is used to finance the Company's new inventory, with its principal balance changing daily as equipment is purchased and sold and the sale proceeds are used to repay the notes. Consequently, in managing the business, management views the FPNP as interest bearing accounts payable, representing the cost of acquiring the equipment that is then repaid when the equipment is sold, as the Company's floor plan credit agreements require repayment when such pieces of equipment are sold. The Company believes excluding the FPNP from the Company's total debt for this purpose provides management with supplemental information regarding the Company's capital structure and leverage profile and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. Adjusted total net debt and floor plan payables should be considered in addition to, and not as a substitute for, the Company's debt obligations, as reported in the Company's Consolidated Balance Sheets in accordance with U.S. GAAP. Adjusted pre-tax net income is defined as net income before income taxes adjusted to reflect certain one-time or non-recurring items and other adjustments. Adjusted basic and diluted pre-tax net income per share is defined as adjusted pre-tax net income divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Certain items excluded from Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted pre-tax net income, Adjusted basic and diluted pre-tax net income per share are significant components in understanding and assessing a company’s financial performance. For example, items such as a company’s cost of capital and tax structure, certain one-time or non-recurring items as well as the historic costs of depreciable assets, are not reflected in Adjusted EBITDA or Adjusted pre-tax net income. Our presentation of Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted pre-tax net income, Adjusted basic and diluted pre-tax net income per share should not be construed as an indication that results will be unaffected by the items excluded from these metrics. Our computation of Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted pre-tax net income, Adjusted basic and diluted pre-tax net income per share may not be identical to other similarly titled measures of other companies. For a reconciliation of non-GAAP measures to their most comparable measures under GAAP, please see the table entitled “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
Contacts
| Investors: | Media: |
| Kevin Inda | Glenn Moore |
| SCR Partners, LLC | Alta Equipment Group, LLC |
| kevin@scr-ir.com | glenn.moore@altg.com |
| (225) 772-0254 | (248) 305-2134 |
| CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Cash | $ | 13.4 | $ | 31.0 | |||
| Accounts receivable, net of allowances of | 199.7 | 249.3 | |||||
| Inventories, net | 535.9 | 530.7 | |||||
| Prepaid expenses and other current assets | 25.5 | 27.0 | |||||
| Total current assets | 774.5 | 838.0 | |||||
| NON-CURRENT ASSETS | |||||||
| Property and equipment, net | 81.6 | 73.4 | |||||
| Rental fleet, net | 358.8 | 391.4 | |||||
| Operating lease right-of-use assets, net | 113.0 | 110.9 | |||||
| Goodwill | 77.5 | 76.7 | |||||
| Other intangible assets, net | 54.7 | 66.3 | |||||
| Other assets | 20.3 | 14.2 | |||||
| TOTAL ASSETS | $ | 1,480.4 | $ | 1,570.9 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Floor plan payable – new equipment | $ | 293.4 | $ | 297.8 | |||
| Floor plan payable – used and rental equipment | 81.1 | 99.5 | |||||
| Current portion of long-term debt | 10.5 | 7.7 | |||||
| Accounts payable | 91.5 | 97.0 | |||||
| Customer deposits | 14.8 | 17.4 | |||||
| Accrued expenses | 51.2 | 59.7 | |||||
| Current operating lease liabilities | 15.1 | 15.9 | |||||
| Current deferred revenue | 13.0 | 16.2 | |||||
| Other current liabilities | 6.6 | 23.9 | |||||
| Total current liabilities | 577.2 | 635.1 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Line of credit, net | 179.8 | 315.9 | |||||
| Long-term debt, net of current portion | 480.0 | 312.3 | |||||
| Finance lease obligations, net of current portion | 35.5 | 31.1 | |||||
| Deferred revenue, net of current portion | 4.3 | 4.2 | |||||
| Long-term operating lease liabilities, net of current portion | 103.5 | 99.6 | |||||
| Deferred tax liabilities | 10.8 | 7.7 | |||||
| Other liabilities | 11.7 | 15.3 | |||||
| TOTAL LIABILITIES | 1,402.8 | 1,421.2 | |||||
| STOCKHOLDERS’ EQUITY | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | — | — | |||||
| Additional paid-in capital | 243.5 | 233.8 | |||||
| Treasury stock at cost, 1,587,702 and 862,182 shares of common stock held at December 31, 2024 and December 31, 2023, respectively | (11.7 | ) | (5.9 | ) | |||
| Accumulated deficit | (149.3 | ) | (76.4 | ) | |||
| Accumulated other comprehensive loss | (4.9 | ) | (1.8 | ) | |||
| TOTAL STOCKHOLDERS’ EQUITY | 77.6 | 149.7 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,480.4 | $ | 1,570.9 | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share amounts) | |||||||||||
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Revenues: | |||||||||||
| New and used equipment sales | $ | 987.0 | $ | 1,025.9 | $ | 817.2 | |||||
| Parts sales | 294.4 | 278.3 | 234.8 | ||||||||
| Service revenues | 253.8 | 241.3 | 206.6 | ||||||||
| Rental revenues | 203.4 | 202.4 | 180.1 | ||||||||
| Rental equipment sales | 138.0 | 128.9 | 133.1 | ||||||||
| Total revenues | 1,876.6 | 1,876.8 | 1,571.8 | ||||||||
| Cost of revenues: | |||||||||||
| New and used equipment sales | 837.9 | 853.6 | 683.2 | ||||||||
| Parts sales | 196.2 | 183.2 | 157.4 | ||||||||
| Service revenues | 105.8 | 103.4 | 90.7 | ||||||||
| Rental revenues | 22.5 | 24.8 | 22.4 | ||||||||
| Rental depreciation | 115.9 | 110.1 | 95.5 | ||||||||
| Rental equipment sales | 104.6 | 94.5 | 103.0 | ||||||||
| Total cost of revenues | 1,382.9 | 1,369.6 | 1,152.2 | ||||||||
| Gross profit | 493.7 | 507.2 | 419.6 | ||||||||
| Selling, general and administrative expenses | 446.5 | 430.3 | 362.3 | ||||||||
| Non-rental depreciation and amortization | 28.6 | 22.5 | 16.5 | ||||||||
| Total operating expenses | 475.1 | 452.8 | 378.8 | ||||||||
| Income from operations | 18.6 | 54.4 | 40.8 | ||||||||
| Other (expense) income: | |||||||||||
| Interest expense, floor plan payable – new equipment | (12.1 | ) | (8.4 | ) | (2.7 | ) | |||||
| Interest expense – other | (69.2 | ) | (48.6 | ) | (29.1 | ) | |||||
| Other income | 3.1 | 5.1 | 1.6 | ||||||||
| Loss on extinguishment of debt | (6.7 | ) | — | — | |||||||
| Total other expense, net | (84.9 | ) | (51.9 | ) | (30.2 | ) | |||||
| (Loss) income before taxes | (66.3 | ) | 2.5 | 10.6 | |||||||
| Income tax (benefit) provision | (4.2 | ) | (6.4 | ) | 1.3 | ||||||
| Net (loss) income | (62.1 | ) | 8.9 | 9.3 | |||||||
| Preferred stock dividends | (3.0 | ) | (3.0 | ) | (3.0 | ) | |||||
| Net (loss) income available to common stockholders | $ | (65.1 | ) | $ | 5.9 | $ | 6.3 | ||||
| Basic (loss) income per share | $ | (1.96 | ) | $ | 0.18 | $ | 0.20 | ||||
| Diluted (loss) income per share | $ | (1.96 | ) | $ | 0.18 | $ | 0.20 | ||||
| Basic weighted average common shares outstanding | 33,179,598 | 32,447,754 | 32,099,247 | ||||||||
| Diluted weighted average common shares outstanding | 33,179,598 | 32,877,507 | 32,301,663 | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | |||||||||||
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net (loss) income | $ | (62.1 | ) | $ | 8.9 | $ | 9.3 | ||||
| Adjustments to reconcile net (loss) income to net cash flows provided by operating activities | |||||||||||
| Depreciation and amortization | 144.5 | 132.6 | 112.0 | ||||||||
| Amortization of debt discount and debt issuance costs | 4.2 | 2.0 | 1.8 | ||||||||
| Imputed interest | 0.5 | 1.0 | 0.3 | ||||||||
| (Gain) loss on sale of property and equipment | (1.1 | ) | 0.2 | (0.2 | ) | ||||||
| Gain on sale of rental equipment | (33.4 | ) | (34.4 | ) | (30.1 | ) | |||||
| Provision for inventory obsolescence | 1.5 | 2.2 | 1.4 | ||||||||
| Provision for losses on accounts receivable | 5.7 | 7.2 | 5.0 | ||||||||
| Loss on debt extinguishment | 6.7 | — | — | ||||||||
| Change in fair value of derivative instruments | 0.8 | (0.6 | ) | — | |||||||
| Stock-based compensation expense | 4.8 | 4.3 | 2.7 | ||||||||
| Gain on bargain purchase of business | — | (1.5 | ) | — | |||||||
| Changes in deferred income taxes | (8.6 | ) | (10.1 | ) | (1.2 | ) | |||||
| Changes in assets and liabilities, net of acquisitions: | |||||||||||
| Accounts receivable | 42.7 | (16.6 | ) | (34.7 | ) | ||||||
| Inventories | (145.3 | ) | (286.3 | ) | (272.6 | ) | |||||
| Proceeds from sale of rental equipment - rent-to-sell | 126.1 | 123.5 | 125.6 | ||||||||
| Prepaid expenses and other assets | 4.3 | 0.5 | (4.1 | ) | |||||||
| Manufacturers floor plans payable | (7.8 | ) | 122.5 | 77.3 | |||||||
| Accounts payable, accrued expenses, customer deposits, and other current liabilities | (26.9 | ) | 7.3 | 26.7 | |||||||
| Leases, deferred revenue, net of current portion and other liabilities | 0.4 | (4.3 | ) | (0.7 | ) | ||||||
| Net cash provided by operating activities | 57.0 | 58.4 | 18.5 | ||||||||
| INVESTING ACTIVITIES | |||||||||||
| Expenditures for rental equipment | (55.1 | ) | (62.2 | ) | (63.9 | ) | |||||
| Expenditures for property and equipment | (15.4 | ) | (12.4 | ) | (12.8 | ) | |||||
| Proceeds from sale of property and equipment | 5.3 | 0.5 | 1.2 | ||||||||
| Proceeds from sale of rental equipment - rent-to-rent | 11.9 | 5.4 | 7.5 | ||||||||
| Acquisitions of businesses, net of cash acquired | — | (45.6 | ) | (86.7 | ) | ||||||
| Other investing activities | (2.9 | ) | (3.1 | ) | (0.4 | ) | |||||
| Net cash used in investing activities | (56.2 | ) | (117.4 | ) | (155.1 | ) | |||||
| FINANCING ACTIVITIES | |||||||||||
| Expenditures for debt issuance costs | (1.9 | ) | — | — | |||||||
| Extinguishment of long-term debt | (319.4 | ) | — | — | |||||||
| Proceeds from long-term borrowings | 974.2 | 379.6 | 413.2 | ||||||||
| Principal payments on long-term debt and finance lease obligations | (639.9 | ) | (288.3 | ) | (298.3 | ) | |||||
| Proceeds from non-manufacturer floor plan payable | 120.8 | 188.4 | 149.9 | ||||||||
| Payments on non-manufacturer floor plan payable | (133.6 | ) | (179.7 | ) | (121.9 | ) | |||||
| Preferred stock dividends paid | (3.0 | ) | (3.0 | ) | (3.0 | ) | |||||
| Common stock dividends declared and paid | (7.8 | ) | (7.6 | ) | (3.7 | ) | |||||
| Repurchases of common stock | (5.8 | ) | — | — | |||||||
| Other financing activities | (1.5 | ) | (2.1 | ) | 0.7 | ||||||
| Net cash (used in) provided by financing activities | (17.9 | ) | 87.3 | 136.9 | |||||||
| Effect of exchange rate changes on cash | (0.5 | ) | — | 0.1 | |||||||
| NET CHANGE IN CASH | (17.6 | ) | 28.3 | 0.4 | |||||||
| Cash, Beginning of year | 31.0 | 2.7 | 2.3 | ||||||||
| Cash, End of period | $ | 13.4 | $ | 31.0 | $ | 2.7 | |||||
| Supplemental schedule of noncash investing and financing activities: | |||||||||||
| Noncash asset purchases: | |||||||||||
| Net transfer of assets from inventory to rental fleet | $ | 120.6 | $ | 180.2 | $ | 122.9 | |||||
| Common stock issued as consideration for business acquisition | 3.0 | 6.3 | 2.7 | ||||||||
| Contingent and non-contingent consideration for business acquisitions | 1.1 | 2.0 | 12.7 | ||||||||
| Supplemental disclosures of cash flow information | |||||||||||
| Cash paid for interest | $ | 76.4 | $ | 53.6 | $ | 28.0 | |||||
| Cash paid for income taxes | $ | 3.7 | $ | 5.7 | $ | 1.0 | |||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share amounts) | |||||||
| December 31, | December 31, | ||||||
| Debt and Floor Plan Payables Analysis | 2024 | 2023 | |||||
| Senior secured second lien notes | $ | 500.0 | $ | 315.0 | |||
| Line of credit | 182.9 | 317.5 | |||||
| Floor plan payable – new equipment | 293.4 | 297.8 | |||||
| Floor plan payable – used and rental equipment | 81.1 | 99.5 | |||||
| Finance lease obligations | 46.0 | 38.8 | |||||
| Total debt | $ | 1,103.4 | $ | 1,068.6 | |||
| Adjustments: | |||||||
| Floor plan payable – new equipment | (293.4 | ) | (297.8 | ) | |||
| Cash | (13.4 | ) | (31.0 | ) | |||
| Adjusted total net debt and floor plan payables(1) | $ | 796.6 | $ | 739.8 | |||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income available to common stockholders | $ | (11.4 | ) | $ | (2.7 | ) | $ | (65.1 | ) | $ | 5.9 | ||||
| Depreciation and amortization | 34.7 | 36.5 | 144.5 | 132.6 | |||||||||||
| Interest expense | 23.4 | 16.1 | 81.3 | 57.0 | |||||||||||
| Income tax (benefit) provision | (8.9 | ) | 0.5 | (4.2 | ) | (6.4 | ) | ||||||||
| EBITDA(1) | $ | 37.8 | $ | 50.4 | $ | 156.5 | $ | 189.1 | |||||||
| Transaction and consulting costs(2) | 0.3 | 0.6 | 2.3 | 1.6 | |||||||||||
| Non-cash adjustments(3) | — | (1.5 | ) | — | (1.5 | ) | |||||||||
| Loss on debt extinguishment(4) | — | — | 6.7 | — | |||||||||||
| Share-based incentives(5) | 0.9 | 1.0 | 4.8 | 4.3 | |||||||||||
| Other expenses(6) | 1.5 | 1.0 | 4.3 | 3.3 | |||||||||||
| Preferred stock dividend(7) | 0.8 | 0.8 | 3.0 | 3.0 | |||||||||||
| Loss on auction sale(8) | 2.8 | — | 2.8 | — | |||||||||||
| Showroom-ready equipment interest expense(9) | (3.4 | ) | (2.6 | ) | (12.1 | ) | (8.4 | ) | |||||||
| Adjusted EBITDA(1) | $ | 40.7 | $ | 49.7 | $ | 168.3 | $ | 191.4 | |||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income available to common stockholders | $ | (11.4 | ) | $ | (2.7 | ) | $ | (65.1 | ) | $ | 5.9 | ||||
| Transaction and consulting costs(2) | 0.3 | 0.6 | 2.3 | 1.6 | |||||||||||
| Non-cash adjustments(3) | — | (1.5 | ) | — | (1.5 | ) | |||||||||
| Loss on debt extinguishment(4) | — | — | 6.7 | — | |||||||||||
| Share-based incentives(5) | 0.9 | 1.0 | 4.8 | 4.3 | |||||||||||
| Other expenses(6) | 1.5 | 1.0 | 4.3 | 3.3 | |||||||||||
| Intangible amortization(10) | 2.4 | 2.5 | 10.1 | 8.9 | |||||||||||
| Income tax (benefit) provision(11) | (8.9 | ) | 0.5 | (4.2 | ) | (6.4 | ) | ||||||||
| Adjusted pre-tax net (loss) income available to common stockholders(1) | $ | (15.2 | ) | $ | 1.4 | $ | (41.1 | ) | $ | 16.1 | |||||
| Basic net (loss) income per share | $ | (0.34 | ) | $ | (0.08 | ) | $ | (1.96 | ) | $ | 0.18 | ||||
| Diluted net (loss) income per share | $ | (0.34 | ) | $ | (0.08 | ) | $ | (1.96 | ) | $ | 0.18 | ||||
| Adjusted basic pre-tax net (loss) income per share(1) | $ | (0.46 | ) | $ | 0.04 | $ | (1.24 | ) | $ | 0.50 | |||||
| Adjusted diluted pre-tax net (loss) income per share(1) | $ | (0.46 | ) | $ | 0.04 | $ | (1.24 | ) | $ | 0.49 | |||||
| Basic weighted average common shares outstanding | 33,162,209 | 32,498,618 | 33,179,598 | 32,447,754 | |||||||||||
| Diluted weighted average common shares outstanding | 33,162,209 | 33,285,422 | 33,179,598 | 32,877,507 | |||||||||||
(1) Non-GAAP measure
(2) Non-recurring expenses related to corporate development and acquisition activities, including capital raise and debt refinancing activities, and associated legal and consulting costs
(3) Bargain purchase gain on acquisition of Burris Equipment
(4) One-time expense associated with the extinguishment of debt
(5) Non-cash equity-based compensation expenses
(6) Other non-recurring expenses inclusive of severance payments, greenfield startup, cost redundancies, extraordinary demurrage fees, non-cash adjustments to earnout contingencies
(7) Expenses related to preferred stock dividend payments
(8) Loss associated with auction of Material Handling used and rental equipment in Q4 2024
(9) Interest expense associated with showroom-ready new equipment interest included in total interest expense above
(10) Incremental expense associated with the amortization of other intangible assets relating to acquisition accounting
(11) (Benefit) expense related to the income tax provision, including valuation allowance
FAQ
What caused Alta Equipment Group's (ALTG) earnings decline in 2024?
How much did Alta Equipment's (ALTG) revenue decrease in Q4 2024?
What is Alta Equipment's (ALTG) Adjusted EBITDA guidance for 2025?
How did Alta Equipment's (ALTG) product support segment perform in 2024?
What was Alta Equipment's (ALTG) cash flow management achievement in 2024?
