Earnings call transcript Q1 2023

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Operator

Good afternoon, and thank you for attending today's Alta Equipment Group First Quarter 2023 Earnings Conference Call. My name is Jason, and I’ll be your moderator for today's call.

I will now turn the call over to Jason Dammeyer, Director of SEC Reporting and Technical Accounting with Alta Equipment Group.

Jason Dammeyer

Thank you, Jason. Good afternoon, everyone, and thank you for joining us today. assist Alta's and XXXX website, is the designed detailing issued results along release the presentation afternoon understanding this posted to press first financial quarter was with company's A results. in you on our

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

For first results. quarter management first a provide will call, financial today's review the of

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

that business this I'd forward-looking of started, we financial non-historical everyone described our other contain about to Before statements outlook, and call like certain in conference remind press statements, future get may financial strategy achievements statements including release. company as results, the our and

unknown growth, including related risks, uncertainties These opportunities are market forward-looking and statements and to those and subject business Alta’s general known to economic and conditions. assumptions, both

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

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

present can non-GAAP investors.altaequipment.com. we GAAP non-GAAP A be and may at our call, both included press on website is measures to During in release of found this GAAP financial measures. today's reconciliation and

over to now Ryan. call I will turn the

Ryan Greenawalt

for you and Jason. today. Thank everyone, you, Good us thank afternoon, joining

on the with following begin those along presentation, slide I X. For slide will

end-user and in quarter discuss our business will unique our operating our the model highlights, First, first demand markets. I

detail update Lastly, regarding execution will our provide financial I an growth first quarter results. strategy. Tony the our upon will solid

parting can after so comments. the So I have our as quarter get few possible, as want a which we I to highlight quickly accomplishments, first session into just Q&A

strong as master Our business Construction quarter. $XX this million in segment other million our as contributed growth, organic contributions to year, is distribution a revenue material and which from $XX.X $XXX.X acquisitions. $XXX.X increased revenues solid start with and well respectively off to $XXX.X and newest the increasing included million handling million million, our the

adjusted, XX% As grew a $XX.X year result versus EBITDA million a to ago.

versatile of market Our the our our breadth and scale model and business our market unique the is addressable and in product are offerings, resilient defensiveness of the we of position.

end Our support largest base. long-term the and customer and on focus skilled increasingly first greater substantially quarter, revenue-producing population we nearly had field diversified At sustaining of equipment the driving rental businesses. even is which to than the an aftermarket penetration equipment is technicians, pure-play X,XXX

and economic support scarcity to Even major and in conditions product and Uptime In the the resilient, short, is their to construction resources during service handle periods of our downturns most most mantra. immediate of remains compete. of the is customers due and business spirit This where markets we our buy and rent cycles, challenges. Alta equipped thrives from where matters. the service businesses challenging personnel

term for growth this update positioned warehouse quick segment, a Handling Material logistical opportunity. and business the the persists well for Alta long trends Now on is and In segments. automation towards

and dealership estimate Handling affiliated peak integrated cover the market coverage America model. cover business Material the anchored our footprint, significant between Products the XX% the with the beyond, infrastructure to our evident which benefits and forklift rights Engineered exclusive continue increased Canada we synergies traditional where geographically, with unrestricted that can benefit are from and North We comes sales of over truck we rights North logics American of newly by the and We the market business, products. model, includes that sales see through lift the distribution and now but and Eastern dealership exclusive

The construction and is benefiting legislation. equipment infrastructure other governmental segment from

in spending project, articulated Furthermore, Everglades Our projects product earthmoving well, portfolio by growth in dump of Florida well with a nonresidential trucks, significant and large and multi-billion which significant infrastructure. aligns equipment construction dollar helped the other on restoration part state our are operations states performing has announced excavators equipment.

continuing from are in been service in demand and pent-up for and market our We services met to region our customers. headcount parts by grow that and have enthusiasm the appetite to with benefit sales Florida technician the

from portfolio growth investment with Volvo business, and branch Construction the in Along benefiting product in Equipment infrastructure. we our core are expanded

Our anchored core on services. our And well E-Mobility segment across and markets. we range products exclusive positioned rights to in seize is on business key have the business, of to similar opportunities a distribution broad

away utilizing Here, fixed of the for to from cost existing acceptance exposure building viability. while product integrators branch a an we team limiting to assist In our market improving transportation. support parallel, launch fuels the are portfolio in-house on and transition we're our of and in fossil and products executing infrastructure navigating ancillary and customers

exclusive recycling acquired distribute of along November Doppstadt, several reporting of which newly manufacturers on recycling master are Tony distribution which we and rights segment for of in comprised other commentary. premier quarter will a of during segment, business, Ecoverse is the our we detail greater equipment. with US the Canada in currently describe This solutions The created specialty XXXX. to in line his Ecoverse has

factors States and types recycle practices. solid management in in has recycling sorting other process designed can driven Recycling equipment increased been systems, for different including compactors, of conveyors include efficient to materials. growth governmental need market the by waste and various waste waste management the awareness used experiencing balers, United and environmental shredders, more The regulations machinery equipment

and facilities to organizations still is are recycling is recycling management waste other recycling in the its and industry municipalities multi-billion types management future markets. business organic industry. in infancy in industry dollar in opportunity master the The a used to companies, opportunities this the grow year specialty end and and to about model involved We're decade. end in the to waste potential equipment excited These the per the by apply segment other of growth distribution expected

of perspective, strategic a hold company as true From years from major debut tenants our all ago. a public three the

significant consolidate long-term growth grow adjacent and barriers have markets and with unique platform in entry to We prospects. to a

We veterans. a team and conditions. proven have have and process M&A a adjusted seasoned All execution industry to integration EBITDA of disciplined approach this momentum and repeatable fertile the prospecting a by given increase guidance. And to led confidence we has us

on Lastly, I'd Alta's culture. touch quickly like to corporate

rally to I delivering As culture strive a shared a and want day empowerment thank of purpose, a company, every we trust a and that opportunity difference. we makes again accountability to around foster purpose-filled believe trust to business of delivering our will our our and valued that to the foundation commitment organization key be areas. customers, a employees partners our these our for shareholders. to We

various each to to have focused of electro and with Our including environmental that continued commercial sustainability technicians and mobility the dedicated and strategy and solutions, we created our develop customer adoption and safety culture the commitment day. employees viability a inclusive of drive

In team I'll closing, the call turn thank over I'd to a Tony, like the for to start CFO. hard to our your all XXXX. Alta delivering work now solid and

Tony Colucci

as and Ryan. results. your quarter everyone, we for XXXX Thanks forward Group Alta. to great here summer Good our that evening, a trust Equipment looking and thank financial and families are all are at your you Alta interest I you first in

have from on our a year teammates, as XXXX and thank Alta. set to to Maine your want first my remarkable span for and to I Thank began, great here quarter for I commitment now which the you each Florida another Alta you continued to Illinois to and Before footing focus at Canada customers from other.

today primary focus areas. on My three will remarks

level are which results, be presenting a high business first we our equipment products our I'll pleased increased our quarter First, benefited and demand of for from with availability and services. as

present new business for the segment, I'll time, the our results distribution Additionally, master encompasses first unit. which our Ecoverse of

business. want view population for model on record equipment base field and long-term sales our in I to the of our revisit what business QX was briefly Second, impacts the a present

the As we part operating investors leverage that our bodes how update population discussion, of leverage. well operating on future realize and to larger I'll for field continue financial

that guidance. Lastly, XXXX and the our our for decision on the to remainder prospects I'll year of our briefly EBITDA adjusted touch raise how impacted

points, should presentation XX-Q, on today. available Relations Investor encourage website is our to be altg.com. that our at get referencing the our call my talking I'd to which slides our be I Before call noted on from today's it earnings throughout and presentation review I'll everyone

get XXXX our business, I about every of seasonal which performance, makes quarter weather the first QX specifically outperformed on key constraints of comparison comparison the more comparison, QX into Thus, quick to Before a QX segment our elements on the is reminder metric. for And northern in in XXXX. investors a subject the we construction just to sequential on to the QX, are year-over-year geographies, appropriate difficult. QX

XX through performance. remarks first portion first the With in slides that presentation, of said, the line and prepared XX with my quarter investor’s for in

start which revenue the of the For is almost the $XXX which a great a mentioned, million, QX last the recorded -- quarter, just versus great year $XX seasonality million, to year. up and I it's company million considering $XXX of is

XX.X% for strong $XXX quarter. over QX comparatively is sales quarter a Embedded for organic in the making of million a increase revenue XXXX, the

Specifically, QX business XX% for for new far and equivalent level quarter equipment favorably the and used equipment to sales that less sales historically. compares to increased our and a sales quarter fact, the of a quarters in record seasonal away $XXX million,

face having this and environment in equipment matching strong a of And supply the sales are more demand and deliveries is supply for was a reflection abating, the normalized issues equipment equipment equipment simple With refreshing we chain our quarter's seeing teams. in sales a and our of demand. customers result additional of backdrop supply terms

in impressive we both figure Moving service in our parts XX.X% realize segments, Construction Handling lines, continue and Material on the organic our segment an product that to with business impressive the XX.X% segment, support growth departments increasing to in year-over-year. and in

To it with in revenues well basis a result for favorable increasing environment realize relates consolidated as our revenue year-over-year heavy rate continued on as primarily lines, we the rental both business, of to organic to close a the equipment. rental segments X.X% out growth

which from adjusted From a EBITDA. $XX.X the we XX% adjusted pro free achieved level trailing cash $XX.X basis, $XXX an flow million the into On forma converted is EBITDA, which on realized economic first conversion in million EBITDA for or for rate million million EBITDA up quarter, a a unlevered XX XXXX. adjusted quarter EBIT, of $XXX.X of we of perspective,

million $X.X last the up was Additionally, on from million basis, a for GAAP year. versus operations income quarter, $XX.X

XX $XX free Lastly, equity common depicted economic forma basis, levered shareholders. driving of for million adjusted is growth cash earnings of the to this investor generating just CapEx. pro our value is in on deck, view, equity business our prior indicative Slide with as metric on associated an and annualized to above In

sheet, Distribution, our new in on presented for the performance to XX-Q move I filed earlier Master wanted to today. I separately balance segment, financial was Before the investors to present which our

first the to asset-light is unit QX in acquired and segment, in Distribution was which it's our start. business a off Ecoverse, earlier, mentioned great I As Master

more quarter, For sales, in its Investors in operations. $XX.X inaugural the which an income that, GAAP $X.X equipment sales, in impressive yielded parts segment from million keep million mind weighted in with should million half Ecoverse's posted first $X.X the primarily calendar sales, equipment which the an additional quarter the sub to to heavily first are of weighted to its year. on dealers selling are emphasis

mentioned Ecoverse, Group. proved of our that quarter many family Thank segment investors at As capital we the us acquired in Distribution return for years model first their look as in continued the in and forward previously, to profile you when Master of investment strength new to efficiency Ecoverse Equipment strongly Alta business to part to we've on we come. Ecoverse, and and believe right we

our the credit. move sheet in the EBITDA quarter line X.X I the approximately a of And our midpoint with guidance. as in unsuppressed periods, times line on $XXX adjusted of XXXX at quarter in And at quick with revolving balance million end. ended of total on came leverage we Before check-in availability on previous roughly

I'd of remarks, what impacts area equipment a view on business revisit our of to sales. quickly on like moving and second the the record long-term was model Now to our my in prepared QX

predicated heavily our other times businesses, dealership have with long-term our how success serviceable business our As many base model mentioned Ryan in and parallel on I financial is. and field population large is and

business the population, high XX the field model terms, serviceable company on is presentation. simple the graphically more larger to product depicted This our able realize is investor Slide support In of margin future. in revenues the the

our long-term support slide, can on XX% see revenues average this As of have sales. product approximately you a averaged field population on

job that deliver incremental of up our that to model increasing to the our historically. tremendous business supported a with as earnings kick selling first population backdrop, by field the of ability last of in more the than field product first did obvious Now million equipment approximately in to over by parts should $XX $XX and that do long we of expand is cycle the have our OEM's sales when obstacle tune our yield team And serviceable $XX that of math, if revenue to million run. service the gain population you annualized sales. incremental 'XX of incremental And the quarter quarter equipment compared the year million

In support the and summary, about prospects, of to sales excited and product repeat means this coming quarters XXXX the future we success hope QX years come. to our rinse for are level in and we for equipment

Before cost I I nominal call to on move more and XXXX, of of wanted update on an realize continue the from in push on existing gross last leverage QX to operating my on profit our the infrastructure. we as guidance, follow-up to top provide our remarks continue we

presentation to the point. would to investor Slide highlight I investors our of XX point

we the leverage. when last the of QX compared incremental to on on $XX realized This As quarter. quarter, definition versus you $XX see led adjusted the a profit creating for can XX of year, an for income to basis an million which the XX% operating incremental basis is million adjusted on of operating in XX% stand-alone an slide is incremental which gross

some sales and that mistake earlier, organic of the have discussed leverage operating no field model to the the the driving operating in a year-over-year population as this equipment that quarter, in in was influence related product Understanding leverage. increase increase revenues notable support make the for

I adjusted of guidance increase discuss up earnings we've of Finally, the $X which perspective, for release. From included my the EBITDA to the was XXXX remarks, both like taken our today's part in nominal a in in the prepared last guide would range. sides million

million to XXXX. EBITDA for So adjusted the updated $XXX fiscal $XXX million guidance now of

A here. couple of points to make

First, will lines foreseeable are parts and to business set put, our lines, continue unknown to heavily more for support bullish our product revenue our those most guidance in are terms revenue visibility. And versus grow for service. we the known of we those has Simply variables revenue that have for the always weighted And bedrock where calculation. our lines the future. guidance been

future factors first quarter previously can and headed variety QX us mentioned new ebb gives equipment confidence And which sales equipment our of were on quarter product the a the on flowing as into based to Second, availability quarter. definitely sales. flow in foreseeable for

for as a again execute ability April closing, delayed on to we season utilization and north to as wise, rental the year. remain ever whole. we thank our rates due be to look confident in our that the to want while teammates our committed we strategy great business to my the Alta kickoff Lastly, We're as solid to And and shareholders. the will to forward strategy XXXX and that rental was slightly once for In we've difficult put a ALTG I a weather employees, when on been. touches final our XXXX our great for start partners a

attention. and to I Q&A. for back operator the time your over And it for Thanks will turn

Operator

from question with DA Matt Instructions] Our Davidson. Summerville first [Operator is

is open. line Your now

Will Jellison

This Tony. is Matt, this on and Will Ryan for Hi Jellison, afternoon.

Tony Colucci

afternoon. Will. Hey Good

Will Jellison

Hey.

bit the rentals, a to impact. curious about, how more service. the dollars for wondering sales, helps Florida more business? about be can I'm really construction additive a the little just how question, little how better of business So to understand parts between think And you it Department first learn I'm that bit to and the Transportation about,

Ryan Greenawalt

full is for Ryan. very road What any are all is big working our as building it like about capacity. this innings off portfolio product for is This contractors the generally type because of think -- Hi. the backlog. We the cycle, well we transportation positioned I'll to work They're of work. coming adding stimulus that. take at

bullish, So we We but to really added to the it's demand see of it measure. buoyancy hard as just as think it backdrop.

put sale trucks -- but first remarks they're confidence that discussed creates Florida. in busy like a amongst dump to which prepared time they're sales think to to work, sheet balance on articulated us leads and only for base in more it customer on going means assets things the be Will, infrastructure which aftermarket committed down as all likely excavators commit I for to my thereafter. our not more long and I their they're that

Will Jellison

Great. called about which I to level in the follow-up sustainability Materials curious relative And to Handling you Okay. I'm a is as basis strong really the aftermarket both and about, something for Handling a quarter then, during and out on last acceleration and both wanted Construction rates in and to you quarter Thank those that the business? of product Construction because And in across ask growth Materials that. impressive. support, growth me pretty a was year-over-year

Tony Colucci

Yeah.

Will, think, quantity. our price always mind on what's is and I

along so product been we've And pricing support. increases able to and pass

So business, as value customers. go our And a maybe rates intangible is we've as the charge lot got talked skilled more our technician base to to our about. labor up of we've

And equipment as they're to high-demand earlier. up customers' Ryan in mentioned and keep running

And one, pricing of power. in price, terms times, so quantity. That's number we have

really technician bottleneck we becomes and about recruiting that's quantity the the retention. so talk And where and headcount

done we've areas and keeping all technicians things on the in investing team that facilities human late been has focused a them. and great our team and in job doing to nice vans keeping right regard. model -- retain the And our operations And like we're our resource in

headcount things it. itself. like And So when you care you're the in when comes PE with able two does takes to ops teams have of the executing pricing you're PE our along do those power, of terms

us given is ability team and there as rewards really sales headcount More the do. opportunity the of mentioned. the I what to got out less predicated sustain equipment reaping technician levels the our has those to So We've predicated.

Will Jellison

for Tony that. you Thank great. answering That's

Operator

Rygiel question with from B. Alex next Riley. is Our

open. now Your line is

Alex Rygiel

Very Good Thank gentlemen. quarter. evening nice you.

the projections? first another internal remaining first it your asking stack how the don't increased up I of is results because to this provide three for relative you And I'm your did improved because quarterly strong of quarter guidance or way on is First, guidance, quarters? quarter but the guess on expectations

Tony Colucci

Yes, good This question Tony. is Alex.

both. think expectations the you out on stream. I that answer. don't a if cop I bit little internally the it's of revenue will visible I mean And met kind on more of of think But we

be in even. And a had rent-to-rent We and job. minds in line. equipment QX doing fleeting bit kind part So, OEMs mentioned probably great little are up inventory through can a past, was sometimes a more the our service, build natural beat Where QX. is our the that on in I've of a as our of -- there into

And of then get kind again with customers. it to in a race it technicians and of our the deliver equipment becomes hands prep and

was bit the if the to So, what it and confidence to a and just brought led beat of little there QX that would been And talking markets more customers maybe line. on bullishness about a us of thinking then internally kind equipment have of guide. kind end on

Alex Rygiel

And XX, as services to parts slides. and lag relative then sales? used new rebound saying rental can it slide and new percentage a typical are rental level to back that What in On thanks as up and used for sort normalized the is services catches the you and a XX%? parts up of more of new

Tony Colucci

just what kind you as is were on Yes, using trying depict barometer Alex a of average. will if we to history

the were this just $XX to sales. And last beyond historically. service in I extent what sales if QX, of what go equipment they beyond we was So, to -- and trying convey to at you in was trying XX% million equipment couple look relative XXXX. what case, parts And have the years, to

down, sort $XX there and there But million parts kind incremental over be ages -- will you function won't harvest there incremental of will. point. immediately your that strong be for really service to of a to Someday there'll be out us if someday of million equipment And revenue of $XX had breaks step that time margins. a

innings there's as you although the to And It's if to layer get just do back more will. works early move you up. so say equipment to that $XX on was not we'd the room you think the point that in kind I the math way of million,

up. the then metric of And itself catches sort

of then and it less also comes a material a as mix issue revenue. where might construction have bit -- So support a little percentage you handling when than to be product

business, of maintenance part because fleets. question this. long? second In of some Handling alongside agreements Material how Alex The immediate studies we're your on it large can the for almost delivering done signing be We've contracts

not replacing those of to Sometimes really fleets the extent equipment, a there. much old are gain there's

fleet little our immediately. You internal But two might the typical to be old. charge revenue lag to though bit product to kind in extent Material the More a new able the can versus Handling support is a analysis. the the on side of more incremental hit it's three year based for

million two unveil rata kind will that of if with in case it you over year $XX this full, itself, or Before pro sort over three of come would period. that

Alex Rygiel

helpful. opportunities. And on go a then slide -- you Ryan you expand you Can into that related alternative seven, opportunity? highlighted Very energy deeper bit little

Ryan Greenawalt

opportunities So, with it the relates a drivetrains. of energy. electric alternative are to And as goes fueling that there couple it's along

vehicles, electric installation and infrastructure those battery the the systems. maintenance charging For and of of and types inspection to actually going be that's

cell of vehicles And ecosystem dispensing and this the of and delivery then this legacy handling the vehicles electromobility something experience is equipment That's sites around delivery year, for on it's the for tank actual the which compressed coming the customer business gas at the part delivery material from lot that's later on-site built being truck, have all side. gas. the a fuel we

Alex Rygiel

helpful. much. Thank you Very very

Operator

with Securities. Jackson Northland Ted from comes question next Our

now is line Your open.

Ted Jackson

much. Thanks very

So of question of congratulations really kind My is on pricing. the first around quarter. kind equipment

back up to inflation. higher through. backlog a those all lot of kind of starting attention priced sales them and of their in them of heavy gone particular, have find equipment catch to deal our all the way manufacturers pretty pricing And through some with terms in material paid to Hyster-Yale increases is you If

pricing this forward new how if I'm was equipment was growth? curious terms in by pushed at to look it we forward units of your So by were of how sales, much of of pushed kind and much

Tony Colucci

is – passing would probably Ted, line nine of doing what just say. increase price would say that what we're XX out the we're OEMs times the in along is I

their Hyster-Yale been if think pricing. has about with I going So on what's pretty public

If our notice, of to going have GP in you significant. range. nothing trade But bit XX% XX% actually to to a through. expanded that little XX% margins We're kind XX%

in same And the in customer. being of that to able and increase to kind so we pass would costs have realized along the

One are things I in of releases, cancellations – remain the the any that backlog. having the working of backlogs we press still we not despite – of a lot seeing highlighted kind We in have high. as really mentioned, equipment really, sales

regions, up. And we the million, has York, certain gone in $XX certain – incremental upstate business We're our are we where pockets taking doing well. Vantage so our back other of pockets that in market as share in share of like New bought XXXX,

price point make. quantity, like can't point both. but I I to combination I I give the the know is to again previous the a guess times price you on not it's ratio just So of it's all

Ted Jackson

roll through XXXX with Is so to like plays XXXX. on should that of out half and going the get supply new – consistent as get Still bring we a to and time are it equipment sales first like growth backlogs consistent as the time itself through for some sticking it ticking the and basis to backlog down call fair as sales, for seems is XXXX? let's early their bring you it call normalized that quarter-by-quarter level, equipment easing back assume – on to it OEMs to worked chains your we this regards and new line again, see

Tony Colucci

Okay.

around – probably we think you sales that on the out I'd the natural is of you that look our last of we have given state XXXX rest somewhere couple more good know, versus And I that's a coming answer levels pretty from supply affairs. of issues. new of equipment Ted chain the at of that QX We've faster kind way if turns years much than the been a equipment. the just new inventory kind level were turning two levels of

the backdrop a specifically the backlog of of extent material sales remainder to kind sort we speak to kind So of we a locked-in to a on demand have here, – out we're well. likes side, holds And to the throughout of good as expect the handling selling the would Hyster-Yale that of equipment year.

about We XXXX. feel pretty good

on have to things though point just As strong kind going to relative to we're forklift to XXXX business in of I remained backlog at look in to the guess, see general, bookings to and if we're your starts they've normalize history. going you

so OEMs And already booking are XXXX. up XXXX,

remains I it so think should demand we that be able as to to we'd So the to to line. continue think able long But there, be that grow seen. still I – is be backdrop

Ted Jackson

The next topic was of just kind Ecoverse.

than You brought understand typical with of year would it such year how the up of term the and business be for lack a that second a seasonality half suggested that Can in business going forward? in it's might through flow of that a walk little The first you a revenues comment Alta that the regard seasonality. stronger -- half? since part to typically of the you bit us through help us a new portion better

Ryan Greenawalt

Yeah.

if was have XXXX. would quarter. in first the revenue I did of what suggest recap million right of had for $XX $XX-ish of almost just it just about So in million in $XX quarter a they that And strong the EBITDA, first they to million here, XXXX Ecoverse they've which really half

to dealers they're Alta. that selling in like Keep mind

QX, I and And We're construction a their in and so affairs selling of bit supply natural specifically that a little QX. in our business down more QX chain Ecoverse wise. inventorying mentioned inventory to then up dealers. as previously QX is got state in of we've selling into

of quarter throughout strong the performance rest a is QX we meaning, so expect And this wouldn't of really QX year. level the

is was expect to $XX Ted, do -- what of what EBITDA we be in better I Ecoverse million would XXXX. than say the to

something be spoke -- we XX% previously we'd pleased think XX%, be year I with. would about a

start. a I great off helps the that But think figure out the you what to of hopefully they're rest looks like. year

Ted Jackson

not saying it. cadence like the of for kind year of, understanding asking is, I'm that a

in Ecoverse fourth say quarters? say be move XXXX was forward quarter the I about strongest by the their I going that if think weaker by their is saying third and their going and to So are be to default to and XXXX to first quarter far would quarters

Ryan Greenawalt

think Yeah, way is be stronger then would QX QX the and I their may and quarters little three about maybe I bit a it and first quarter two think fourth weaker. would quarter, be

Ted Jackson

Okay. I'll out get And last hair. of and your then my topic

to you're for? of the you what regards for? in from a Any of planning pipeline of for kind change competitive Just of that seeing discussion for out in terms little terms Any you're what there? -- kind that in of changes with assets look what landscape M&A activities the assets the terms valuations

Tony Colucci

Ted. Nothing This ordinary, out of Tony. is the

We take incoming buyer our We're point at a networks in dealer in this geographies. our continue to and known calls.

companies we lot -- not private years comes really selective And what and with pursuing being there's haven't a of in haven't a valuations in with very deals to seen there's we're the right now. so M&A classic and on I've -- kind front of doing are mindful But us and equipment been been when multiples. a seen volatility OEMs. I've what pipeline it much change. of Alta opportunities of Alta eight we're still And being that

Ted Jackson

very right. All Thanks much.

Tony Colucci

Ted. Thanks,

Operator

Our Fast next James. question with Bryan is from Raymond

open. now is line Your

Bryan Fast

Good thanks. afternoon, Yeah, guys.

a in opportunities presenting Trucks Just sense on that there Industrial last share that additional acquisition a that is up on year year, region? the we're now the market and in acquisition gaining coming the summer of of that Yale you're give

Ryan Greenawalt

Bryan this is Ryan.

growth I OEM, a know but don't ever in for and training early on support that that we there and to from largely as share say the too lines could we the area sales it's what of us we're having function is specific report first parent. think report, just allied I

started as So excited got progress we've about there. we're the -- it's

Tony Colucci

we've we've made relationships we've Bryan, the OEMs of And those brought some sales. we that in to US brought represent the Canada. that some

As Ryan force mentioned sales things there and and excited our early innings, is really get the up working on then new but technology. new technicians to --

off start we're So, good to there. a

Bryan Fast

where on inventory as Could like it's the during Do enough. your quarter, have feel Fair you saw And you there? guys you a are about we build-in just difficult comfort inventory mix right still Okay. the you or areas, level just up. inventory, of source? to obviously ramp then there talk

Tony Colucci

level equipment. question. there just good of comfortable turns. parts given ended quarter how with Yes, new the comfortable quickly dollars We're our and kind with million $XXX of always in inventory, with We're general, it used the

used two we're around we're focused been And I to on these as on So, always new We've is levels. mentioned, which somewhere the and fine. turns equipment.

would are abating. new I too the in the of of the what more part still so So, wish versus dealer products, like -- terms of trades things. they're product We there. our you general is our we had a history in we more dragging certain product. times product we are to period. more much But of fleet and when We are that had equipment. macro a wish Fine. on, and where of networks, you're And lead chains of these comment of our certain of well still say in inventory There become pockets have deliveries the supply mix do -- relative of of -- part mix when kind kind dealer portfolio

you So, dealers -- we work other to competition. may with And geography, together take the on kind you sister somewhere something, work need they need of something. may it some to in your

years. the we years. haven't we couple last had the reignits a so, months that of whole kind But lot be something will that itself of here And -- coming of that to do and in

Bryan Fast

for color. the Thanks. it Appreciate That's me. Okay.

Operator

questions. no more are There

the over pass call So the I'll management back team remarks. for closing to

Ryan Greenawalt

closing, Thank company. our I'd to three as In a on years reflect you. public like back

rising and chain disruptions navigated customers on highest to environment. supply the servicing We team strategy Through our have commitment our rate and a growth flawlessly level. at executed historic Alta's pandemic, interest our this global a

build I the for and As our Thank we our to and business value And you. long-term leverage thank thank that you shareholders with future, operating Alta scale and support. tremendous for for a phenomenal the meaningful we to it for call. shareholders. want performance team, your opportunity all to look teammates my see truly the say to to you concludes continued

Alta Equipment (ALTG) 10 May 232023 Q1 Earnings call transcript