ALTG - Earnings call transcript Q4 2020 | Alta Equipment Group Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Alta Equipment Group Fourth Quarter 2020 Earnings Call. At this time all participants are in listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. And now, it is my pleasure to hand over the conference to your host, Sinem McDonald, Director of External Reporting.

Sinem McDonald

Christian. you, Thank everyone. Good afternoon, Alta's conference fourth year to and quarter earnings call. XXXX Welcome full

call are Financial On Chairman us with the today and Colucci, and Ryan Tony our Chief Officer. CEO; our Greenawalt,

will first the conduct and financial a For today's session. year call provide review fourth full we of then And a results. Q&A quarter the will management

We your question. for will the open call with begin some we prepared remarks before

defined known certain the release. regarding general in management's uncertainties and and in everyone Before achievements Private and to statements non-historical we assumptions that remind forward-looking our get statements including company, business those These as may call current of to Reform sales as started, Litigation and are press statements opportunities, our this related growth, contain the market described conditions. both, reflecting Securities unknown financial Act future I'd conference of forward-looking all XXXX, economic outlook, strategy, operations, risks, like of other results to business and subject expectations

have that on about operations. financial and these of and current affect events, future expectations and trends projections results We statements believe business, our financial forward-looking our condition, may we largely based

we the to filed Although, and after these reports that was statements expectations obligation our these to materially reasonable, today. any results that our differ could statements issued risks including are in with no from other forward-looking we call. press revise Descriptions reflect believe to occur that these discussed changes undertake this SEC, of release cause actual

can now to the non-GAAP today's that, financial GAAP GAAP investors.altaequipment.com. our present we A measures. reconciliation press be measures Ryan. turn may I'll website on included to with call, at is this over non-GAAP found And in call both release, and During of and

Ryan Greenawalt

Equipment quarter Group's Thank you you, earnings joining and Thank XXXX fourth call. welcome, Alta for everyone. Sinem

in the prior to achieved turning several our demand quarter and the the to we capped which the hours, and the year. quarter. over sales the fourth month before the end which year. despite full XXX technicians, important XXXX call a is We the of for services our demand of operating organically Labor ended of acquisitions strong for impact COVID touch improve of and the Tony a on activity increase of The each significant to continued workforce heartbeat from results quarter response approximately in total operations fourth levels to I'll product as productivity, In and off representing briefly customer headcount. year our financial before roughly of half financial benchmark an fourth both, the increased very pandemic. Our consecutively and performance increased solid transformative increased labor through and technicians quarter and XXX successful over accomplishments the support review year-over-year, for skilled environment to with our added

$XX.X forma touching on $X over revenue company in $XX.X it to in entire came Alta adjusted of you during fourth $XXX.X of delivered on our occasion of dedication billion EBITDA at for EBITDA revenue service We million times milestone and And delivering the a exceptional financial is uptime. pro quarter a in thank highlights; true with reached Our million team once make difficult our million. pro adjusted on again forma on basis Alta to year. the our who these the to incredible rose great sincere employees all equipment commitment A and today. demonstrating

execute and And XX were designated the essential fully our remains position all through sheet states. shutdowns. and our operational challenges We liquidity navigated needed many in pandemic flexible branches business and business we overcame the strategy. to growth balance support looking Our at acquisition our organic full and that strong unprecedented providing across XX year, at COVID the to due faced an of remain as we the

Our efficiently The the to management allows margin and measures the and business the the to cost pick activity implement swiftly less was sustain the April up business dexterity began cost revenue to structure end year. decline anticipated reduction against model and trough of variable manage declines. mitigate than business our positive of and through adjusted EBITDA from

that great In we assets which three now our distributor authorized of scale this Vantage material a strengthened acquisitions in of geographies this is two began We As in region our activity New serves which strategy, when product in dealership to to who weather we Equipment business a and also to State, we including our move growing half completed profile. measures combination construction during region branches offers resources the reach. as of and York northern our big consistent the us and increased OEM end-markets Also period our we market. the as is footprint, revenues. Lifttech large support of and business New our additional expanded furloughed the and New our The enabled York skilled of storm. mitigation through This business customer relationships the the of that a the and quarter, technicians returned year, Alta the model, diversifies in pre-COVID cost recovery market. business remained levels. second were significant XX% Vantage both, complement the back full to with some State. our acquired compared revenue as fourth In acquisition accretive the Volvo diversity our and geographic us pandemic end-market new reduced required our bring our our powerful partners, operates the with products allows opportunities. of most handling grew established to strong to serves XXXX, expansion of diversified and York further year reflection our prior calling XXXX base

a crane region. leading enjoys manufacturers construction and strong as range addition mentioned we in in acquisitions Howell Northwest our with wide late relationship Tractor the is on construction quarter Howell Northern Howell Sennebogen, with markets Alta's new closed we and such call, the which the and third a a serves As to Illinois October. product of earnings Equipment line Indiana equipment.

and acquisitions full we in XXXX, we which front. partner the reputation execute provide sellers year, manufacturers benefit growth the continue of seven most approximately scale, on to become dealer industry in contributed $XX to structural million customer share completed the EBITDA liquidity Alta of total M&A buyers choice our our remains balance the at equipment has fragmented The Looking facilitate growth on between demand market our to active loyalty. and and the and and intact strategy. we in our year adjusted supply in as

mid-year release, rebranded our Segments particular recognized and material cross-sell the the of and productivity solutions. for integrate and today's been with and other and vernacular describes news solution handling entire our rebranding to integrator As them Material recovery increased material Handling it's complete positioning messaging Material have significance Material across provides a in market, values Industrial customer we which which growing, with range industry integration the us Handling. capabilities. in will the this acquired to and we've pick a handling our offers the the we significantly competitive The efficiency more material continued steam promote noted of PeakLogix, enhanced of equipment Peak Handling fast sector offerings. able our base, better systems is We've in and warehouse our advantage the sophisticated national e-commerce has with their has as management services a delivers warehousing up to customers. continuous. in area only and logistics automation systems

products this lean of warehousing and believe is progresses. is public business. and be strong year is to but a and strategic we first small a us upside partner large that new encouraged our hold for The warehouse to our OEMs in with we entering these important and more us people our resilient any There position path execution service year expand higher Alta's demonstrate of our material takes stimulus complex recovery never area have which systems This our it retailers continue for into material and this potential and capital truly clearly and a technology and recently from the as year strong outstanding segments. We transformative opportunity national apparent area, acquisition E-commerce software a throughout our trends in in see net demand capabilities and unprecedented products equipment technology early the positive construction also and by dealership geographic the which who our in and the made ScottTech, XXXX. we're both, a and -- to financial clear performance with in And and tailwinds expansion position recent market difficult improve markets. more full growth our their control we've been especially to to through We're systems. are we leading operational measure; federal great strong seeing, expanded our are relationships for that driving by to well has strong investments full results our and both the It provides discipline from our acquired believe a highlight greater, model recovery warehouse and our a forward automation integration customers infrastructure. material The as and by by dealership stages. secular U.S. was internationally. in the projects systems pent-up looking volumes aging services the unconstrained time. is handling territories company increases businesses construction the in handling handling demand

forward. and to -- turn partners their the thank results deliver over support, exciting our support for are excited our their moving now Tony to our confidence ability and confident our value financial work, their increased for like in review. employees dedicated and increasingly in I'd manufacturing With to financial I'll his company. for it shareholders hard and shareholder that, for enhanced We

Tony Colucci

evening, your everyone. Ryan for and you XXXX financial Thank in and year good quarter full you, Group our Thank and Equipment results. fourth Alta interest

want challenging and proud our Ryan a public extremely exciting. as wasn't and equal plan we and ago, markets I that and COVID's congratulate part as pandemic but performance are certainly on challenge company. The first the our past Alta's Navigating Before business months I entered a delivered for, I start, public year all XX parts has importantly, and a of. Alta one all of rose colleagues, grateful global employees to of been Alta's anniversary shareholders to our year of and my most

and look to New York today we pleased are our The about family. integrating members one at upstate into with. our presenting Additionally, I will earning team to focus culture. business trust. our excited is want leadership I'll in and Alta senior four into the team performance, first, Vantage new welcome Equipment, talents We key to on your which forward be team areas: My quarter Alta's remarks fourth ScottTech your

business gap the fleet close outperformance COVID the on on year-over-year metrics. I'll revenue some metrics these and organic impacted figures, in on to way. positive fluctuations, continues balance a in focusing gain As and key departmental the be and cash ground leverage sheet our profile in and rental specific flows

two Second, in our performance performance and I'll discussing of XXXX full trends our sequential key be quarter-over-quarter year indicators.

trends a more typical the discuss how I'll performance to Specifically, trends XXXX and year those compared KPI business correlated year, climate. for to of XXXX, how a EBITDA those reflective

of to figures preferred want to the the want with transaction. compared of beginning financial at touch the month. the fund Equipment, to that provide this the about cost how raised acquisition acquisition ScottTech we I stock of also high of we capital closed our on the profile investment return Third, Vantage we level when on some I thought year-end to associated

review slides full balance our today's be altaequipment.com. I'll year presentation should and it discuss available I today. our today fourth which leverage particular, in our was on in noted our prior I'd presentation, entered that discuss greater as our liquidity sheet, and Real on XXXX. quarter Lastly, to there the we than XX-K some website to our in encourage are detail quickly, Relations call that our and presents and Investor will everyone what which at released is numbers position call

portion first fourth remarks; performance. the my With quarter prepared of

loss and profit First, let's talk the statement. about

quarter the revenue number of is $XXX represents what a $XXX I'll Alta. for basis an perspective, million $XX in in the high million the XXXX. EBITDA QX adjusted that figure sequential QX realized increase a in from third million company organic of we quarter, million, increase quarter, level a up into $XX.X over such the a For sales drove an for to but a on From X.X% EBITDA XXXX. $XX.X record moment million the recorded and which get versus

$X.X the comments. Importantly, pro which come adjusted variance million, that Howell EBITDA a our million XXXX. owned was I'll later back had little or million for EBITDA $XX.X and forma in $X.X QX, my than to less Vantage entire of assumes for quarter we QX

cash like flows about to organic the fourth talk quarter. I'd Next, in

that First, the sales I million mentioned a was ago, business. revenue a record in moment how the and $XXX for number

be our recorded rental Just of a the times I our when mentioned to on assets time. historically we and organic The decrease briefly; amount $XX in a equipment cash and this our indication over our in of the on this generate the sales $XXX $XX led equipment for on quarter factor previous further, quarter basis, an flow fourth quarter equipment ability it EBITDA delevering million Alta, unlevered it's to of XXX% in for quarter marketability a because We flow why increase how led XXXX. On powerful organic and sales million, an importantly, story Really were sales short our fleet, by approximately number. of record a QX million focused largest on been additional to But period free fleet be $XX conversion focus a and for liquidity year. believe believe rental and in typically rental that in the fleet cash optimizing $XX.X of the to margin of the an move another of particular, number and back equipment XXXX. $XXX new million rental QX organic EBITDA in the million quarter is that The sales other reason bodes to in for is high which QX; for to year razor is calls quarter. the the model. over sales departments. well the on. just product jump of QX two equipment delivering number customer let's the is keep a rental for we the our equipment in rental highlights P&L to number bit I with mind a quarter, before future And our which support business of I million $XX to of the blade largest for sales used field for coupled Few the on now the disposal net just an sold quarter, second; in million population

metric an over parts continued year-over-year in in P&L; encouraging organic in And Another indication of from increase a our continued construction strengthening XXXX saw $X.X million our rental rental departments and an our the growth basis, segment. QX we importantly, business. revenue service on organic

on Moving the and remarks. for throughout my the observed indicators in on the year. second level performance some we to numbers trends key area certain of high forma prepared year XXXX I'd like full quarter-over-quarter to focus key pro

forma and an back be A year depicts slightly First, now EBITDA million. year above is $XXX on mark. nearly key for our look year-end $X on Slide data a out which the basis, annual was referring basis forma XXXX, Ryan pro fiscal as as refer on a everyone earnings to pro And do of the XX trends mentioned, revenue is adjusted our and like few XXXX, presentation the of I'd billion the as I'll our to. of to we points point -- to

we as on saw and utilization. First, EBITDA key on trend metric to bottom correlate track; in and moved major in to two indicators discussed that flows as pre-COVID that QX Of into we've the began in productivity on were to labor QX, continued calls, prior in labor drivers calls, happy levels we QX. we XXXX our in report fleet cash recover we productivity has labor productivity to achieve I'm previous the discussed note and two of rental QX; able performance business

be headed XXXX. recovery with to into V-shaped sure, trends and a positive productivity, labor for So

of follow-up the towards and trend utilization Second, followed recovering have started in our in variants see levels we QX, QX. in the has in productivity which variance the similar XX, in that close QX, which followed will lagged gap year-on-year to as previously, We years -- began was I And note you business. continued as rental historic the most mentioned I physical slide the prior versus end QX, realized to labor our a utilization acute on XXXX.

unlike rental closing end in yet early the have a and encouraging the the Now, gap of are and signs of year, of as utilization. the on importantly, the continued productivity, labor close said Having we QX suggest fully that, gap. to

of in throughout So, these EBITDA in of summary, how KPIs. observed in approximately Again, for note trend as EBITDA two year, the noticed we similar slide at looked to KPIs they correlate QX XXXX, the that two the In EBITDA $XX.X our gap and will the we the incurred trended trends mimics performance XX% performance summary, was historic versus you in QX. our throughout year-on-year key we against million variance the them terms in referring XX and year; and norms.

the we XX, in typically QX $X.X note with look-back being XX% forma commentary, the of In EBITDA Difficulty] XXXX our as the of our macro each, of on with gap in KPIs, Difficulty]. million section QX and will XX% you of particular, XXXX. the in XXXX versus Importantly, disguised and the annual a slide EBITDA, construction [Technical item forma both [Technical Difficulty] and EBITDA. year-on-year here and QX that business, narrow more note pro given XX% million the expectedly the [Technical quarter pro seasonality EBITDA the and basis continue this almost of $X.X to backdrop for our a chart delivered turbulence my our in QX on gap a EBITDA seasonality in typical Last gap

contemplated in activity the third on area Difficulty]. recent preferred remarks; to stock I'd prepared my of like the we M&A offering For [Technical our touch briefly

our aftermarket we March of that the warehouse middle EBITDA acquisition -- the expect increases full in management $X acquisition PeakLogix see completed cost accretion Solution further we ScottTech integration, with the over standpoint, product sourced we $XX of territorial the overtime, our expands a the a our serving preferred to stock in known multiple Volvo tremendous approximately with handling in of adds material be our about Michigan more the for software the and to size of on as the we as offering natural of $X.X the X, approximately At completed The operation to we million the to technicians of of additional furthering synergies see New to ScottTech acquisition solution million the For and Specializing size million, completed was $XX million cost close the believe we With the of technicians, expands the the we our XXXX. of commitment market our an in York. established we to territory from opportunity a accretive a $XX completed XX staff PeakLogix acquisition in a deal an deal. as ScottTech; fund capital upstate to Onto of reach transaction, believe complement and of which of greater emerging enterprise thereby technology approximately EBITDA space. double acquisition. in annual offerings price XXX a combination a where to capital comparison to systems revenue. with fund territory, provides Vantage total and used we At acquisition well value than revenue our million, be concert business and purchase in the enterprise. Integrated at further Lifttech, year, to

and give For here leverage of end Two balance prepared sheet liquidity. update factors want on credit the QX. to the key profile the to quick remarks, my last part I at and of discuss: our a

acquisition Recall quarter And the leverage growth IPO feel to with leverage covenants. leverage in year to with about that Touching of inside in in the we both the use early liquidity. in liquidity. That equipment advantage mentioned revolving and really in the market cash ratios an IPO senior big good Since sales. I by six stock to leverage the offering million performance our preferred we about at our with end, closed dropping factor strategic of EBITDA all fleets, roughly well X.Xx in rental EBITDA the X.Xx we the leverage. call, on in de-leveraging position being and here. our debt. mid-February, reducing rental our X.Xx, realized total $XXX solid business fund service to our Florida, business an in alongside led which virtue emerging five, cash from quarter cost in the now QX First, we've specifically like at funding of CapEx acquired in organic and

the in our leadership all and our my opportunity To it we stewards for and a Q&A. a our over XXXX investments. for the structure of our had business how As year faith strong million. which to be liquidity team of at M&A. navigated of support our look great to result, an of end our of testament levels, report, IPO the held is a that these I'm challenges and we We approximately strategic to back throughout appreciate base, holding have In XXXX. I or I Thank at successful your company. to $XXX to commitment our profile you we turn important to happy collateral forward the future I'll the given investors, time. the impressive proven capital other first XXXX. activity And model, business a for reflection as and that also liquidity thoughtfully flow as public cash we and This want fund for and operator level the same and it appreciate your business QX, your positioned each to all Alta thank teammates of believe at capital, fund be a to closing, the to use we your how the presented vision to

Operator

first Riley. Instructions] Alex from B. is Rygiel question [Operator from The

Your line is open.

Alex Rygiel

strong Congratulations. Very and Thank quarter you, and nice year. Tony. Ryan

Tony Colucci

you, Thank Al.

Ryan Greenawalt

Thanks, Alex.

Alex Rygiel

quick questions. couple of A

beyond? of around adjusted the EBITDA XXXX and about you XX%. in talk are margins some today drivers to Can expansion Your margin

Tony Colucci

special the Sure, fourth large amount comments there, about back we quarter rental Alex. made my of look sales. I've equipment in the When note at

our going all back model. margins to feel razor for function going the like of it's in EBITDA that's refer a to but the it the really And that like, look of and concept depressed, our sales quarter, to and to blades was were the business it's so inherent equipment

razors of in good got thrown as fourth mix as there you out so don't margin whack As have know, the blades that the quarter. of and that

we drive the future. model obviously the grow, the As which support margin feel forward product population, is here, to is business continue build the [ph] to higher in business,

of rental, in the to a we it mix, think So news of parts some along, more would the mix service, EBITDA move margins the as we the that positive as direction. regular about kind we and continue of continue toward in north are won't appropriately rental be as trend and the very margin We driving there When quarter future. bit thereby shift was had little high appropriate think on further it that more well. same and in fourth EBITDA to kind back a

trend, will So, continues so to that drive the as margin rental also long EBITDA higher.

Alex Rygiel

little maybe or the maybe add you up? talk which thoughts customer here? are which quickest, And categories could whether on and bit catch slower could those slower rebounding about then some And ones not customer rebounding a post-COVID are categories

Ryan Greenawalt

This is Alex. Sure, Ryan.

component material areas then Michigan. the rebounding anything demolition industry our home turf to industry industry steel the are scrap our And related of market right hot related dealership steel, steady faster scrap remained our a the in home supply business, the throughout the warehousing constraints, automotive couple So is That's on footprint, in accelerating. is construction to at and that of with a our side. anything now. is Also handling has state

Alex Rygiel

pipeline, as a of third core And bit adding on then little M&A. about lastly lines, M&A sort as about business well leg? within talk Can your your you both thoughts a

Ryan Greenawalt

Sure. has two be about opportunities, OEM our there but of We partners. catalyst, opportunities, or a catalyst, watching some ownership expansion for, a one is lot which And territorial with a kind last we're that have be reason an to we of, always think first planning a succession were being of to leg there exit. those the several most issue examples infill looking year. for What the groups for of significant

we to and product markets and to we're build component M&A mature taking there entrants As very over that evolution certainly And we where in in where look footprint. less we're of in portfolio on we focused territories the the share, looking as fleet. third we'll terms of of road smaller as mentioned talking of could these we grow on the over new call, electrification the can the kind some the of dealerships segment, transportation, the be be last an or the watching existing our of

to and something the both side is with the we well-positioned Over segment on think side really long that in that And truck road, like the we'd our battery in the term. we're the fuel be as electric, business our business. evolves, experience cell from material handling

lot envision market something we're of we of active very coming to and new do that term that in sort sector. open those long companies conversations It's are time. A So to. that

Alex Rygiel

Very helpful. Thank you.

Operator

Your from Colliers Shlisky Michael next is Securities. from question

Your line is open.

Michael Shlisky

have XX-K, get quarter? Good And missed in we back the repeat can may Can afternoon, the growth the you back with to to we just while that Can guys. were [indiscernible] was various the you I ones release of organic it. things sure? in that other drivers of which your be your categories biggest have revenue in the up are the going for

Ryan Greenawalt

take the that. of I'll half Mike, first

I quarter. the growth think your the organic for was question

X.X% was Yes, an number of second your X.X%. the half was think as the enterprise. question, Mike? I What

Michael Shlisky

curious most? categories the I to which revenue growth organic of the was just drove as

Ryan Greenawalt

Rental was sales. I it sales mentioned. as equipment Mike, large in by yes, the equipment Oh,

customers to if get we you year have looking end, that year, customers, will. the capital toward get maybe budgets As they're for rid of

looked perspective. historically tax that customers have take to also of We bonus advantage from have a depreciation

organic parts Which layers of we you service usually is of is fourth more and in we back again was kind the construction have all here. a and when than probably overweight the mentioned growth, organic peel line this number so, growth. as it well. as the expected. rental driving what's quarter equipment sales did We of But year, that in sales And equipment kind and bodes the lot well

Michael Shlisky

to had assets, QX? the of was course wanted rental XXXX. the about ask QX and to for have outlook. kind during a during also making best margin spent it some allow XXXX? I [ph] it. of little sure perspective better the that fleet here And a they rental performers Did the -- from downturn, best time in in Got performance pairing fleet your I'll you you ahead have [ph]

Tony Colucci

Tony. is I'll one. Mike, Yes, this that take

depreciation So, utilization acquisition through of and thinking the when Florida, about rental, it. in we and necessarily making so off long kind committed that down kind we investments of because of organic margin, what of had think still adding $XX we QX, rental optimize already bit. there. to down and costs of little here. the I quarter much about about move cash it's reduction And here did the thing in the with kind there's right Not QX gross mentioned fourth always to we're as there. a we some term in flows Flagler acquisition million But We do. fleet was think in

fleet, of almost you'll that part over a the [ph] equipment field the flow. model rent-to-sell it As It into is see If population. as we we get heavy is with a $XXX our of our to fleet quarter feel turned million We XXXX. year, in ebb may good headed that see, and in in you'll which numbers, we year in fleet roughly a end left $XXX we business out the million level. got our the have fleet numbers about that

that here the bit, at flow and kind in market large, pair any keep see way. fleet is fleet have of the a by that fleet more. let but don't growing this may ebb little to rate, same the to at going we're level, in expand, of going the expectation expectation demand point kind in some any have we if of back But the to we to or decide we're if material So

Michael Shlisky

year, Great. one of that saw for in the perhaps and then we And for get might in one sense the exit adding in from from fourth maybe bit year, minimum perspective baseline there, what quarter? close EBITDA to that XXXX? QX the in $X me. last is last The deals good the have any million for a sort a do full rate to And as [ph] $XX million you you from the two

Tony Colucci

off How build would are some. I XXXX. to would that of. organic the off number pro think one It that to flipped kind certainly XXXX, off of the $XX.X question, growth COVID, made go levels. a quarter to have of But, give maybe Good not fourth seasonality along around to of of we here quarter. coming We're of point. kind good forma kind Relative we'll fourth a of move in metric I to that how we Yes. good the the you build gets here and we Mike. we as remains in million bit along by mention as kind of special I would seasonality a jumping number as so off prepared quarter we're numbers refer is for The sure of I'm EBITDA at as XXXX fourth the a we impacted expect little much? we be think be to seen we this and

Michael Shlisky

Just that on XX to Vantage, $XX.X rate include which December [ph]? does million, the clarify, was exit of

Tony Colucci

Yes.

Michael Shlisky

It does.

Okay.

Tony Colucci

Yes.

Michael Shlisky

guys. it. so perfect. Appreciate much, Thanks Yes,

Ryan Greenawalt

Mike. Thanks,

Tony Colucci

Sure.

Operator

Your next question James. from Raymond is from Brian Fast

line Your open. is

Bryan Fast

Thanks for afternoon. questions here. Good taking my

Just parts of right I Have here? equipment Or get delays are some channels to how or quick you now. sourcing lease you looking supply any a seeing guess trying had issues? [ph]? are gauge

Ryan Greenawalt

delays definitely in areas. We're seeing

starting being withstand in things times short-term remind to equipment We and today. is other We up we stretch categories, certain are steel felt. also we and rental variability can time rates product and our of in to use on constraints are like used materials always utilization, on lead try the that. the that and to definitely are side, that that rental pricing on things definitely see our for flip needs utilization firming and side of but customer the fleet appreciating both fill So

Bryan Fast

look out And break are Ryan. Thanks, edition, there. recruiting organic Just if technician and Okay. growth? you then out landscape gauge at the a growth to acquisition get of to the the we the able trying

Tony Colucci

we've of it with Brian. for how many joining. Tony, we have throughout foggy of think year. the number mind you metric we a Florida. furloughs at so talked When metric and will, COVID -- the organic is given and we XX are in The in hires that one aftermarket forth. over, lot and technicians. on pointing so we gets add, terms kind And took little the The Thanks the to a that of could is one that saw This they if I Flagler we top down we dealership about had opportunity don't

I staff on think there. we closed XX the technicians year with down

areas all growing right a where the So of there's lot opportunity. in

we whatever have that of experience have would than other the more or is number But kind XX% stands in maybe -- increase XX% Florida areas. there muted been the realized not It would same out. -- that. that Now

Bryan Fast

That it for Thanks. That's helpful. is me.

Ryan Greenawalt

Brian. Thanks,

Operator

Summerville next question Davidson. from Matt is Your D.A. from

Matt Summerville

Thanks. A couple questions.

when just utilization So you're talk First, side that you utilization this the With firming that be early you're fully that the that rental point? a little in you used seeing already of would bit? rental on the maybe expect about then, closed Or to things. at gap XXXX? mentioned maybe in seeing pricing

Tony Colucci

Tony. Good for question. joining. is thanks Matt, This

in start that continued to good gap, Will to I've say of by will. in As remains mentioned would remarks, in in QX, be we're we terms closing think there end close. we still of I my you the like I of off QX, QX? get seen. if see utilization prepared a gap to it the

year, if in the QX, of what think continue comment on I trends gaining to But the or get would in I we're every hopefully the day. make at gap here closed by of it middle point. here, is utilization see some will that we we QX see that

Matt Summerville

up trough better utilization that Maybe were they versus you maybe actual rate, are where the just And a pre-COVID? Just they give to to where they respect can where us currently? as little kind specifically? more during and with of a Then sense frame COVID? to

Tony Colucci

Yes.

is rental off out way was would fleet, the we might costs, figure. saw that something the more rent. of of saw shocks that $XX I had or think that, $XXX on I answer we acquisition situation, on $XX have of normal that variance that if Matt, hand and the that The we in a of XX% kind like take

extrapolate So will, then the you that you if business. kind and $XX $XX, into can our becomes of

But of kind thereafter. the And again, that's so what it what rough can to was on in pockets of forth saw. kind math the happens and so fleet. of You EBITDA we see

QX. our as handling QX and see construction fleet did material didn't of Our shock that big fleet a in

the fleet of figures you So I entire is the the of XX% you and mix that kind together. we mix saw fully gave kind most when acute that the

Matt Summerville

were later, quick provide see organic M&A then it. can can you time, handling? are do logistics, an serving they inflation the algebra just then Got multiple also the what comment number the imagine side some to revenue for material And the you the just handling I from would warehousing, us there. was ecommerce, can And two ones. perspective, more starting save to material but We assets that of

are do you have that sort Or there? serving you're maybe in of -- pipeline organically organic at that with base in is Thank anything market? transactions have asset to So front those now the looking happy not that something in the you. of you're the opportunity you that

Ryan Greenawalt

on part question. Tony question second while take does the math that the going part of I'm the the of to first

year future it for material have mining a and We for solutions on of We that something, the saw platform said, platform had we've already of the acquired for salespeople we But the very They opportunistic opportunities. have. sales last earlier now taken over interesting property they'll we as always looking you for are XXX be intellectual this looking, we This and that the non-mobile professionals could out think need. foreseeable more handling then would we're looking we stream busy dozen and the half opportunities. a off So we for think warehouse systems-oriented that have a group we businesses today. be assets. that but if equipment, that that kind we acquired that we year, is think the of the business

Tony Colucci

-- just because not an sure kind activity and demand to seen of ecommerce space deal multiples multiples that that expansion Matt, the or kind I'm in in in the the of space. play we've off of the

seen actually play necessarily second. to haven't -- that I'm one have out. hang And on We to going Matt,

Matt Summerville

No you. problem. Thank

Tony Colucci

What back. that quarter-over-quarter your material segment question? Matt, We the in was was come annual? to have handling question, your or

Matt Summerville

XX.X material handling? it gave year-over-year quarter you organic, curious was fourth The in and construction, it's it I was Yes. for what

Tony Colucci

looks handling, material down It figure like same is that X%.

Matt Summerville

Thank you.

Tony Colucci

have and harder. hit by and material anyway, We'd handling that with so forth, the mind a that But segment bit break and and that's the department keep so in on to shutdowns which COVID number. down little

Matt Summerville

guys you Thank Perfect. very much.

Operator

turn like remarks. additional would closing back or questions conference any further for no Mr. to to Ryan showing I'm the at time. this I Greenawalt

Ryan Greenawalt

XXXX. No Good for further everyone, look forward success continued We in remarks. Thank to joining. evening. you,

Operator

for today's your participation Ladies you this gentlemen, day. a concludes have great and Thank call. and conference

Alta Equipment (ALTG) 19 Mar 212020 Q4 Earnings call transcript