ALTG - Earnings call transcript Q4 2023 | Alta Equipment Group Inc.

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Operator

Good afternoon, and thank you for attending the Alta Equipment Group Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Matt, and I'll be your operator for today's call. I would now like to turn the call over to Jason Dammeyer, Director of SEC Reporting and Technical Accounting with Alta Equipment Group.

Jason Dammeyer

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

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

results. For and full quarter of our today's fourth call, management XXXX will financial first provide a review year

questions. Please We with your the prepared call before remarks open to will we proceed begin some X. Slide for

are started, assumptions, both we uncertainties that company and nonhistorical unknown risks, financial the those financial subject including general and Before conditions. statements forward-looking to statements this and growth, described conference forward-looking to economic I'd of future get like statements, our and remind other as known market and in call results, to press about certain related Alta's release. business strategy achievements opportunities everyone our business may contain and statements These outlook, including

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

filed these no in believe Ryan. statements Descriptions release I turn we can other present reflect are financial expectations we we A to to the our forward-looking call in measures. could cause will our this with on reasonable, is that non-GAAP reports GAAP press to was non-GAAP investor.altaequipment.com. today's over and the SEC, differ at risks and including both Although any reconciliation GAAP from this revise press are of that to to now statement changes found today.During undertake materially included after may these release be occur and that website issued of obligation call. call, these measures results our actual discussed

Ryan Greenawalt

quarter followed I and results in and a conclude, Tony regarding update our a record afternoon, and then results overview full Good our performance. we fourth provide Jason. report everyone, our achieved business begin XXXX. with user detailed year joining current thank quick an to conditions I financial of growth markets, today. for will operating XXXX on our you, you assessment Thank us pleased end in by I will a regarding am analysis provide strategy. After the

$X.X to year. have of revenues by during to would million capitalized I $XXX.X fourth record continued the for quarter execution without the billion sincerely for ago performance to for XX.X% XX.X% increased on grew in the our Our you. momentum end-user year. dedication for year. the increased strength the solid fourth increased segment and a not our to in as quarter Material over quarter $XXX.X quarter million The been and Revenues fourth $X.X and Alta XX% XX.X% Handling revenue to the we Total to the and in for million $XXX.X XX.X% million for the XX% Construction billion $XXX complete team. the markets. possible business thank year our the clearly quarterly the broad-based quarter

$X resilience in New we our milestone, defensiveness sales celebrate offerings, year. equipment position. also just segments and model, to market XXXX is the should This from unique in XX.X% product our of highlight annual and we the our breadth this Alta XX.X% high-margin And over billion used versatility grew and parts million in $XXX.X service scale across of as year-over-year. XXXX, of record. generated million which an business in is market increase the revenue our and over $XXX.X the business the an addressable of this of

of fleet with power, driving attractive work revenue-producing little features factory a dealers, field penetration parts Alta's the investor X,XXX factory model, the OEM year, customer for and protected focus scarcity population, downtime exclusive business diagnostic to APRs, operations. responsibilities of highly we keep replacement the presentation providing certified support dealership of an annuitize as including our primary by of areas increasingly some our includes product overview utilized service end trained rights repair support the streams labor. had and and assure with over and of as authorized Today's that on of customers capabilities possible field Slide equipment performed their an technicians. support with XX, long-term population warranty base, to parts, and skilled expert must of proprietary Our remains central pricing diversified training to support aftermarket given equipment revenue be focus replacement or is sustaining driving to product best-in-class to At exclusive on exclusivity software

offloading and in talk service that us Another as want current to operational business. allows our service most our expertise important our reiterate but house. rental professional differentiator I capabilities, rather option the is valuable excellence parts on through professional dealer a about ability rental sales team business' and and top returns get capabilities. performing to aftermarket I'll our utilize the return integrated business This a to used not widespread to to customers an equipment within simply of providing our core downgrade to full-scope our from our sales dealer rental customers equipment our than keep to APRs, to now solutions competency retailing lies

for importantly, continued normalized, supply in end for Material Handling is segments there already into is as Construction multiple on chains the expansive year. business Visibility continuing for the from equipment this growth our and positive have encouraging Most year. outlook our books orders for have strong and our we markets. & segment customers XXXX is Our positive sentiment is user opportunities the are

grow for have Federal billion also ground this break forecast January. awards is and Northeast and operate. we a infrastructure the spending these many XXXX. also in from are yet expected As major for year-over-year to result, our as million contract in accelerate increased $XXX support significantly view data both Industry-related are construction in to Nonresidential services Total year where to construction last projects will Florida increase demand strong product supports our of year. U.S. as contracts to starts $XXX well.

Additionally, end In general last northern XXXX state year. challenge. than backlogs more in themes efficiency record on any Handling and continues of an are and trend as ongoing of exposure the our levels settles we contractors the And the at of full were pre-COVID. busy of labor we the and manufacturing diverse where in than focused market territory. Material arguably are The enjoy onshoring what lack segment, most industry, budgets market energy year XX% subcontractors fiscal much manpower DOT with remaining in with extremely higher are

are the make along allied our with warehouse We Hyster-Yale market lines. progress continuing expanding to our product on share and in market

market our to technology opportunity this in and more Additional profitable customer and dealer increased to advanced sales solutions, both sell complex OEM. relationships segment leading for

and continues prove the our proven as growth financial operating strategy to X growth successful last years. by very diversified Our over

We have and to business user acquisitions entering ability end our demonstrated significantly organically new expand markets. our through

we of share, and entering XX.X% achieved our expanding market growth organic During by new our increasing XXXX, territories. product portfolio

our continue existing product partnerships to new by developing portfolio in relationships leveraging existing OEM expand segments We business with our and footprint manufacturers. our geographic and will

in we premier in October, growing acquisition M&G dealership Company, This that areas high-performing in allowed the November, market and compact the case, X and representative space, contractors, acquisitions in segment of the and Ault established relationship $XXX are Canada our investment Pennsylvania will we acquired lift XX coverage us mining gives in attachments. OEM construction public of a completed In aggregate supplier privately in Canadian in acquired equipment Pittsburgh subcompact and Our last Equipment, and to with Western & plans market a Power Ontario million penetration construction, result a expanding with compact in a in in in our XXXX market million also providing the the expand with which and discussed has turf Metro are This Construction and November, in enter equipment further Also going Handling, Chicago equipment EBITDA. acquisitions Equipment nonresidential England. initially we Central revenue our infrastructure Alta Serving growth a equipment surrounding further Material Central held The quarters, year lineup sell we our as markets Burris acquisition full and serving the since CASE and and to residential compact in for market. with our general construction success, further coverage Quebec. Pennsylvania in major opportunities truck $XX equipment to and locations In segment. market service of new XXXX. into in region. highly heavy locations end locations Equipment X distributor both contributors adjusted construction In fragmented we previous strategy. New built and first Illinois. Industries,

and scale offerings acquisitions expand continuing to leverage which accretive and are We customers, our energy-related remain also for trucking our opportunities, opportunities alternative committed we the would to in to further e-mobility scope strategy commercial the emerging segment. product pursue of the

tractors, heavy-duty In EMS. X also evaluating including initiatives segments, X A with addition Class X light-duty Class and we are current to X our both additional and Class through

and and approach focused parts continued for Our and profitability allocation. our outstanding was balanced XXXX are field infrastructure include solutions. population capital our business, sales, turnkey on strategy an current closing, and service In growth, we with and aligns year charging

the of to empowerment, for accountability partners delivering foster opportunity, and Lastly, delivering trust again makes we employees purpose, to we strive our our to want around their and difference. customers, a to every shareholders. shared dedication I culture and our thank day rally trust value to a our business and that

performance the now what detail. also we culture, at equipment corporate is I'll the to it over turn financial foundation discuss premier are of to more our ultimately dealership our which Tony purpose shared Our platform is makes in today.

Anthony Colucci

Thanks, I thank We're full of fourth results. our Alta financial you I congratulate to your want in and dedication for in my work Ryan. business hard interest and teammates Group our and And and XXXX. before year for first to Good to everyone, quarter the XXXX our Equipment Alta proud customers their start, performance. XXXX evening, and

us First, the and quarter operating remarks from Maine on our our I'll in ranges out. developing areas: numbers comments specific strong from focus to Illinois flow day business mirror include you which all the in Thank approach on regions Our and QX. My results and strong will all culture, our and to which continuously briefly to X,XXX our Team Quebec grounded what One of to Alta's was guiding now is X results, day employees, present Florida in fourth will principles of and cash which Ontario. today northern of

on focusing comment on our and several full results, the year themes for key and present XXXX I'll metrics we'll Second, year. be

assumptions guide. XXXX underpin that takes EBITDA for and puts annual guidance provide I'll Lastly, the adjusted and discuss and the

As QX, given calendar. some into we part of insights in that discussion, are I'll provide where the

I'll With that available to Relations encourage my is and on our of website the noted which referencing be should it quarter Slides Investor the call the slides throughout in presentation in our points, earnings talking today. from today's fourth be portion altg.com. that everyone I'd first our my for call to is deck, get said, on our at I XX presented prepared Before presentation on review performance. remarks to XX XX-K,

For QX quarter against comps. $XXX versus for XXXX, million the reflects quarter year $XXX increasingly is increase million, strong making of quarter, XX% the the $XX represents more QX which approximately over revenue up comparatively revenue for organic the history. recorded of in $XXX the and company of million record company's quarter another last first a a million difficult notable

were very usually quarter again for are strong million. in which sales, this and year, $XXX million the increased QX equipment to $XX Specifically,

pause a sales for the were of the highlight unprecedented level moment quarter. equipment because here for Just to a

sell population XXXX. Recall more that important? year, to incremental dollar is every over million we expect For that could $XXX we the we into product compared time. to approximately that that equipment field of Why able presented that are of to high-margin supported population information placed support equipment field $X.XX in we annual revenue investors approximately QX, for when into

will be than more So to we previous it did in follows that equipment support year, product confidence sell the there that million great for additional $XXX have years where we revenues come. in we a year

the service spite In quarterly $XX.X lines. Moving quarter, versus XX% our product hurdles year. up getting last on parts over the product difficult, and support organically for comp were or more revenues business million million approximately to support, of $XXX

rental. to Turning

on $XX quarter, move well were to rental million million we as we realized basis. Rental an in the a From typically Our solid XXXX a held the EBITDA quarter, perspective, up up $X falloff forma level QX for the pro we of $X.X which million adjusted for business EBITDA $XX.X and year. million quarter. sequentially is fourth from each revenues QX see for a given the quarter adjusted from

quarter on high sales. sales expectations, beat from from quarter approximately we strong the inventory were end but versus as from the fleet defined to EBITDA quarter, So on quarter $XX our of primarily year flows extremely end flow and flow in and again, all quarter XX, with a we to was cash operating flow large coming rental capability. P&L benefited indicative cash only the performance, a the of company's cash leveling strong steady-state the levels the our level operations, perspective, off and strong told, the due cash extremely the as an million Slide perspective, of equipment From in free as for not the QX. of for is view, The from the

capital accretive us deploy the and the allowed also quarter. and quarter for excellent for Burris $XX quarter some liquidity of into Truly an impacting the without million flow for balance the deleveraging sheet. Importantly, allowed was in cash acquisitions Ault to

to on forma Now a year. recorded pro for full now -- The toward pacing revenue in we basis. $X.XX in over are of turning company turning the revenue results our XXXX as billion $X billion fiscal

of achieved EBITDA at in in iteration the coming $XXX.X XXXX, our the the high our of year. adjusted line, On the end guidance company for million latest

on decision our yield converted economic million $XXX.X approximately free million a finished EBIT, XX% over capital, in management's steady-state return the our flow. the that adjusted or million XXXX, invested just approximately compensation. version $XXX economic EBIT we On deployment measures and key invested into capital of Importantly, average at of capital EBITDA metric of year of unlevered directly impacts cash $XXX

the adjusted metric Moving value XX the CapEx. earnings on in In an to free depicted common levered equity approximately the quick associated basis, to is with flow in on on and of cash From year-end as suppressed. our with deck, now on forma of deliver equity for from perspective, as is economic and cash down a in depicted as million flows. XX. power A of And X ex adjusted as $XX check million mentioned last quarter quarter the revolving Slide with as availability previously, the to we were acquisitions. view, shareholders generating came total XXXX credit pro Slide on quarter cash leverage pro $XXX sheet facility business on annual on able this roughly at our our X.X in investor X.Xx We $XX this approximately momentarily. of leverage of EBITDA, indicative driving forma growth More equity. metric balance million ended line despite

wanted where Lastly, ex sheet, $XXX effectively million as versus M&A. QX inventory on million the these note levels ended and we rental of rental inventory at fleet quarter-over-quarter balance are fleet and our of XXXX. flat $XXX the I to figures we flattening QX ended Both in of

inventory end redeployment as level at in of led replenishment As XXXX, mentioned capital the 'XX, lines. unprecedented industry equipment of participants of first normalize half on working saw of began which in and like pressure calls, previous to to Alta, loci put many other chains an supply the

call, I significantly of the pace mentioned As half we our on expected seen moderate we in this the just that. of have second QX replenishment and year, the to

per X XXXX. years cash per the Before of on we I million our XXXX, where ago the share growth compares we I presented I February Slide on for let participants for last today's but recaps ex of would were flow share the versus approximately IPO which did of time CapEx the $X.XX recap to leave today year-end. annual quarter, where in stands focus just that that company an presentation or at to metric This to XX itself, at speak as of the to IPO. $XX of now want $X.XX investors this is generating equity company note free basis will

So be price this to our in the in stock yet minimal grown see evolution not this we've metric years with summary, we progress. to X of along continue way, reflective Xx

to decisioning our allocation M&A is balance value capital equity. as to cognizant may XXXX, versus We we via are we disconnection we our as what presented this be this stock fair buybacks us head to believe potential disconnect for what inform the of into And pipeline.

remarks, earnings last which EBITDA prepared today's included of area would my like for Finally, adjusted guidance, was the to XXXX release. I the in discuss

itself, report In terms year to of the $XXX.X million few the EBITDA guidance expect million adjusted of full the we guide. range to $XXX.X on XXXX. A for observations

overall sentiment. positive remarks, feel demand the in First data as mentioned and we our his supports customer Ryan backdrop our about the we in foremost, base, to believe and industry continue

amount be revenues to XXXX service. performance expect in an historic that again with in we drive in organic our will growth we and support product line by expect parts in Second,

XXXX, size it aren't we have participants, than much no rental sell rent importantly, of we XXXX. to to inflationary our plan in more Most business, business industry model, comes when our given to increases more should and adding did the expect million is challenge growth to repeat skilled $XXX While difficult our rental annually, and support to year expectation year support on to at to at technicians out, line the field increase expecting and population the Relative is fleet history. in of product generated rental we size material ebbs in which incremental views fashion like XXXX, rates, flows figures quarter-to-quarter for product said, continually it That XXXX.When is least fleet rest in of in much hold our any investors and to 'XX. something throughout to in our utilization in rental with like rise rental, the and in expect is we organic risen the and the the rental XXXX year, levels. supports comes

XXXX. Lastly, sales on in the potential for equipment

the Make of this saw no as equipment industry our for in comps they've year's of will dealership equipment on we challenging record $X.X mistake, billion sales industry First, we, as as year. ever XXXX this overall, with been. sold be along equipment sales levels

wanted be flattish this we down we this expectations, equipment the regions OEMs that market given that equipment opportunities year, levels the us on sales some calendar. at least calling As and even we'd or to ahead insights of given are may certain our analysts on sales XXXX if QX, industry commentary alike to and give position hopeful in close where hold, I in in think year. share XXXX To to the are not into exceed for take like the to

First, our experience, for With year. quarter hasn't backdrop, QX performed our quarter. this year. a expect as remainder things difficult what to QX a given of given most over performance the has necessarily of of seasonality the And been long performance that the couple to to for note investors as

XXXX, it they in Currently, quarter. what don't back Ecoverse to which Ecoverse record XXXX had as and levels, are dealers ownership quarter performance. matching that for Ecoverse, first to equipment this dealers of inventories a will the relates as given were master expect supply selling in repeat debut Recall of we point in First, and they sub-dealers chains QX in Ecoverse to record XXXX, led record early to is had sub normalizing, at the year Ecoverse the XXXX. expectation did restocking, close that distributor come sub full and which in quarter, QX its That XXXX's the that Alta's were a is under a to normal said, XXXX.

of sales place. are Equipment have are replenish tax businesses assess equipment for parts, was January. line, the we available rental led impacted execution XXXX year-end that this the before forward mentioned experiencing all record our all year. field hangover for the I in pull the a QX other activity rules December here hangover including especially the the at that be In the and our as had the of today on Group. generally summarize, a again That committed in are to track. we commitment are as exceeded summary, customers sales and sales XXXX. very be equipment of to to and took we and we long-term our an closing, and referenced to depreciation solid year. season for busy more advantage snapback their the prospects, to are confident framework all in To previously, and In clear, each isolated over which aforementioned year equipment business new confident January was a to said, budgets QX generated that having my saw February guide the To that in after are service another in Alta population to factors, March and left and fleets want and past unprecedented construction of as annual expectations of internal we team Second, execution sales And demand as we're XXXX our growth given increased on in teammates thank in solidly all throughout Alta to your larger we

You principles and reflective your in back embodied operator guiding in turn time, and that. to support and confidence to you driving the and are appreciate we your shareholder Thank for Q&A. in will our look it To of XXXX, XXXX. forward I value for our results XXXX, our over investors, we

Operator

[Operator Instructions].

line question is from Summerville Davidson. first of Matt D.A. with The the

Matt Summerville

of price, the you how couple did it leverage, market's can you're can of do maybe what to year's just thinking feel are referenced, was acquisitions for capital neutral a like but leverage this couple reduce I not market be leverage knowing I you the want have a stock about accretive in of a follow-up. the M&A ago? then QX? A appetite if you course, using And you in standpoint, or is questions. in years then from And the maybe leverage cash your context guys Tony, you you that for as only seeing what still deployment priorities talk not multiple through clear, of 'XX specifically to

Anthony Colucci

Matt. Sure,

which QX get allocation and with acquisition. deals to partner Alta. Ault up want be there, be some forces was I piece do that say would great multiples, and deal, able think that that on to first the entrepreneur Burris were to it here really On the did XX% was We with equity we in capital into sub we'd join able that to to the like

out was I is be to that, say leverage will say the would accretive think that revenue, bought see still front there to of that very believe we appropriate in there's million EBITDA we that It range. it look continues for would is that don't Xx, wouldn't of deals we've think in we to The to similar how also I something so executed past. to shareholders. pipeline X in of itself Xx active. $XX continue. at to still accretive be million And $XXX be But the that sure deals us. us And What the be we'll and

networks Now OEMs more Ryan CASE, with tempered and growth, each that as partnering on. inside as do we with, and with of on some you talked that's other get. a has about relationships of mentioned, to our McCloskey, dealer before, Ault called with of But we're bigger the company major some hope which of why the we've these is partnered

stock relative So to what we're buyback still dip into here it's the wouldn't at. could place. that fair the depressed in that not We the to But relative think we program trading accretive or extent the hesitate think where to to extent we that's value. pipeline the is is and be to

inventory. an increase take, million, this of in we more After or could fleet to $XX-some-odd In referring delivered million deals terms organically $XXX which and was of of funding give see you of That been certainly what in debt, I've quarter. that in on is year. the the great we expect don't taking rental M&A replenishment,

some do to we not maybe necessarily cash So excess to continue the flows the with, in we can over quarter-to-quarter, expect deliver year, especially that maybe entirety QX. again, of have

to before we tune would leverage. with of mindful wherever of debt. $XX debt. EBITDA think at be a calendar in leverage to funded the be to We larger deal fund that sizable, would or still size mindful of scope be be we it we all deals that terms so we where beyond are of something we and want the able And million of with would million $XX M&A Anything in

long I apologize but hopefully, So helpful. answer, for it's Matt. that,

Matt Summerville

more mentioned that. a Maybe, can Ryan, business material indeed you bit minute handling was little segment. you -- that get and diverse appreciate No, a more just take comprehensive. around I if granularity being

key seeing a Just warehousing into, in a terms being around more highlight go-forward concerted and the effort sounds what maybe maybe walk particular, end the in markets what like you're market. of is put

Ryan Greenawalt

first which the is the diversity piece start the about the markets. question end of I'll with

unit, market. for the costs to better And those to get customer volume, of utilization. more to part to out fast-growing Matt, So with end then, of be market we chain and our could their do point the lot product to, Upper reoccurring alongside to materials They've price as the way of the market. we and and that manufacturing that that price supply go is be. of advanced the our has something It's it's manufacturing, help everything all planned the bit maintenance. effort portfolio, of but through of lower. through lot obviously, labor end Midwest per warehousing opportunity closer in as a aspect revenue take distribution And it us from business high-touch manufacturing lower was been are logistics. a into right And product maintenance high is an market point tends believe a on our focus your trucks through contract still there diverse them our putting doing It's And Hyster-Yale. a exposure a for question. second a development end that footprint, and It's to into it raw

Matt Summerville

medical, for end cetera, food, material in it Ryan. I beverage, be et the more just the looking on whether Thanks, places handling. automotive, across some was market some color Yes. of you play seeing trends you're

Ryan Greenawalt

say healthy. we year, the call of that what were would I Last coming but it's a demand, record would off been coming of pre-COVID terms of is peakiness in it COVID. the I levels, Just the bookings the year. referenced is off have in off leveling that record in at demand previous

ended record the for up being is reflected us, in that which So deliveries revenue.

share we driving we're which the see market. of that the we of which in really market, forward, plateauing on warehouse a is phenomenon, is the why and penetration focused think end Going faster-growing market

Operator

Ramsey line Next from question Thompson the Research Steven with is Group. of

Steven Ramsey

the continue to Maybe line end on of markets. thought

more companies of while Some at rental a talked but are large projects pace ramping growing modest the about have up. local mega projects

this You being talked the funding how you curious strong. mega DOT your impacting state But more about work, projects normal-sized large the local of some highway about projects results versus think the that year.

Anthony Colucci

pullback, take we're But for not a but demand. on market bit the product us what's that it's not little -- core what kind local to that. I seeing general I'll for of highway it's tried, true of delineate stimulated really cycle We've the think Steven, is big is historically visible a lengthening federally is difficult your with jobs. by sales a versus type a contractor of there

think seeing -- now. is one true utilization the construction to we're things is labor the I that's key that of right

when stimulate can't You something got everyone's already a job.

no an has in whenever operator to put sell can't excavator the an seat. one You

the so general And construction. we're softening seeing any nonresident that

I just local out think about to installed that's demand I been really haven't And right think it now. the to to innings playing in pivot jobs that the the been think. of by is that more that that there keep I trough. for and you're as to a cycle some the big that this, game. We've this adding We all phenomenon been in type the with larger seeing would is way innings demand, of kind projects that like talk pent-up have always we

Steven Ramsey

those unit helpful. quarter? lines. the in fourth complementary on outlook And is what I'm service And curious performed in the then That's that how Curious Okay. XXXX? for the

Anthony Colucci

to find Steve, just make line, your ancillary me. for question have you service so answer say I just we to it, when want appropriately that I sure

Steven Ramsey

where ScottTech, products, the XXXX? more to those companies complementary Burris are -- expected those Sorry, PeakLogix, perform how in of

Anthony Colucci

industry, a little we bit larger projects larger and I we've Yes. now That hot. back combined a that and of for ScottTech more said the are PeakLogix, interest that it, same. in think bought -- customers. and and in that are million, doubled $XX And because is now of they're was When these Peak combined it are the million a mean that 'XX, And PeakLogix, our 'XX. white more sensitive probably roughly one call I revenues 'XX rate CapEx in which But projects combined doubled XXXX. the pullback. saw whole we it was business, business, than $XX bit

that. rationale And an design it of into for to PeakLogix not JV that I that us was able customers so of we And in a the interest from the say will if have. was getting is intellectual think would part some is our to rates, was of to part that What and relative do us build we take to strategy that there business. just where impact capabilities, and the was there business we've do been otherwise varsity deal PeakLogix

business And its without isn't so synergies judging Peak on our own the some fair. of handling legacy probably material generated with including

generated out, just backlog. very bullish we're got So trigger. to and rate It's et to immaterial peak, that's in customers going. will but put that to larger probably definitely taking the I the with related, customers cetera. our mine, pull it a line, capabilities similar space say we've being well, synergies been in how get our still despite we've that's aggregate customers round into interest Midwest little for projects. very the 'XX that's some down it's longer They're year a quarries, We but revenue bit or I overall a think able performing that's and to to ancillary recognize

fine. running still all yes, So

Steven Ramsey

That's one me. then excellent. for last And

again handling this discipline continue of next as units. and year, percentage versus Your Is trend continues to profit a equipment basis on cost G&A construction GP? total down of and to this in both G&A a gross material expected

Anthony Colucci

in got them for and million, amortization, depreciation to QX QX out Yes, QX thanks ex here. here, and of M&A front I've then Steven, million just I'm $XXX ex going That increase about G&A equipment numbers again to some have M&A. million, $XXX me, read line in and the and $XXX QX item. saw sales those related on we in to that bonuses because going in commissions ex primarily increase we that the sales is exclusively that almost impacted be question.

the about of indicative Certainly, be of way expect more of just overall with much I a forward. percentage I'm added some in And business because profit depreciation, EBITDA acquisitions. So depreciation profit to little go as bit that so the we've G&A because G&A the I just I wouldn't think sorry, is the gross QX the gross a or gross would then rental revenue line. or -- profit ex

at We'd So of little to bit. I X.XX. anomaly a that is an even down little the bit expect think there out come a and QX

Operator

Next Raymond Hansen of James. Steve question is from with the line

Steven Hansen

additional line go to wanted equipment I too but to the the what difficult, sure suggest, you not, equipment color Maybe side? as if on Yes. wasn't back think, a I suggested but effectively you bit wanted to for there. guidance. comps the you aspirational just your sales on I assuming hold it guide was think the are or new of I The is year. on

Anthony Colucci

only just equipment, calls the to when quarter, new sentiment, and the thing, have is as an our which sometimes ebbs flow, can one. reason doing the down we be can in we these other say, and interest saw Steven, part to as guide, lines reason these we polls really macro the ebb X we've quarter-over-quarter. cetera. parts sit ago said revenue part do and we and number started confidence, service years guide annual impacted et trends, should things by we of don't relative the are confidence of more the item, line budget, And in Yes. fourth And we project or and equipment great rates, because et difficult other cetera, versus I since we

XXXX, remarks, ready these to mentioned let looking Now the spring hits as on talking fly customers, Ryan is signs we're his strong a us. all toward projects, as DOT our working point here budget the strong, in to it

and that and reason where specifically. down be I'll GPs I rather The parts said, like off highlight being to thing But would our this they ever, what have of of of are the and we that good. can pretty being to areas to wouldn't the bit take to we revenue I share. guess, all rental little And we a that's, service. saying, hold feel impactful down. do to we expect worst we or how line Peak business that so caveat And feel question some And relative EBITDA answer given maybe your especially

past York places some and where XX Toronto on expect to share. side So the we And material months we've into on. and pockets take the entered like that we've the other goes the list got space, there in handling in New are upstate construction just

be that market. So down taking to us might it be could share flat would help maybe offset what

Steven Hansen

to That's even and capital are deleveraging a helpful. right I point? window deleveraging How about is not maybe completely as sense as the for disconnected, the relative to the how M&A buyback now? are that And pipeline? allocation that make decision for opposed How viewing year framework you the that buyback to and you think, some just I to thinking really more growth view year, it suggest, does you or growth? that as your do focus between mean for stock you on follow-up the

Anthony Colucci

a We've would trading slide Steve. be like that something at Alta that suggests Yes, the got deck we're at trading in X.X%.

number I is EBITDA. in think forward the the debt

So where pipeline, the that higher transacted not X. is we've something that the still feel we in bit multiple, X than despite maybe past at M&A being a to it appropriate, in it's

pipeline. spread before X be the where the about versus what get trading synergies even discussions think, of we relative to or might can any And or we So business at X, today. there's it a that's into M&A do if still with there you we're turn

in near are about it time. little calendar. QX we like a of bit the rougher. What Some look term? And is where the over does We've being at talked the pipeline

monitor a we thinking about so that decisioning. basis kind of on are just and always the real-time situation And

The mindful element want also that to you and was be other mentioned leverage, of that. we

X lower. the of interest we felt decision have interest about rates may And years because much so this that ago tenet especially where differently are, of framework rates were

answer, different still think scenario. there, do trying rates X that Interest But in that to into come But would there's deliver. we aren't could back. dynamics if wouldn't all your to of buy fashion. things an to accretive but we we evade suggest So want I'm then higher those being not that the M&A we'd hesitate

Operator

Next line with Riley. question is Cho Min the B. of from

Min Chung Cho

questions. on strong to end couple year. Congrats a strong of A a

like to it XQ trends expect In flat, the Tony, sounds terms to I could rates, it can if what rental you basis? And talk were of pretty XXXX, on confirm you impact, just year-over-year think you please. for that, a any inflationary that you but said be excluding that the

Anthony Colucci

reverse. Yes, I just question I to your can take think in

effectively, much is bit when And service prowess. a out rental of dump we our business are renting a ways. technicians maybe just renting think that. more would of our in customers function want We could there. I of our to confirm XXX little I so large trucks, expect though, lot a point inflationary we're articulated too,

And rate, of and to capital so you that of other while capital there's need also rental return an that for. compensated we has asset need that have to develop rented on be we component to labor cost a be this

of the that we I industry or the may a relative we in maybe so see feel of that houses. rental And to because might pure-play say relative get URI rates to rental you some to to some like talking sometimes things the be other able premium traded publicly

a talk guess, we but guide. to, think I there we're when the can we better, expecting maybe I the is about do bit little So don't point

we I mid-single total where digits, in first said say being rates years, tick they The with part probably digits landed question saw of increase put that other in the and years there. around how played the last that is something on rates. XX%, this I north give rental day of would your X in 'XX, out last over would us year a the I or of take, category X maybe mid-single there.

Min Chung Cho

lower your would opportunities seeing be electric term. for little electrical I mentioned the longer But was positive margin. your on terms to I material side of less business, I know or Ryan of into service a how in wondering, that Is imagine impact shift And more focus you're margins? or just that and increased your handling does bit an that warehousing, which lifts. the parts Okay. does tend

Anthony Colucci

the U.S. that XX%, in of referenced one actually all XX-K I that in sold our our data electrified. Association are some take in XX-K the out or some it, call International as let's We data other Truck day have X/X, forklifts suggests in can put that the well.

deal probably propane actually or can or You or gas diesel that flip diesel. versus

that. You head years ago, in could that flip on its XX like something

trend of the to come the has but It's the little electrification leveled a so bit, continues. off And forklift market. already

What business for basically be would XX% our minimal. So time. we just service. electric think any been truck yields and to that's in quite But is gas relative know accounting of impact the of cost truck an our what would because we on a exercises parts case internally XX% some to business that

in of any So to ends any handling the material like support product of could offset we'd -- think we electrification further that on further impact electrification, the in support any product more lithium that business in some by our offset these things and little alternative and et would prowess energy cutting-edge, or a batteries, bit cetera. charging more are lithium of than be probes and

Ryan Greenawalt

is Okay. Min, Ryan. this

margins sure wanted the actually to vehicle Another is the on the product, just forklift. thing make new we in selling versus are warehouse I higher correct that rider

margin more less the So support misunderstanding front a I but electric, might on product under certainly been have yield end.

Min Chung Cho

then big looks saw it update And the hydrogen market half, XXXX. not Nikola, there. talk trucks they it. Got some Okay. a just misery for the wondering fuel you just you're like doing second you in could probably in to But some with if sold I that impact an relationship. and their on guess, back be I should that of how trucks produced BEV and their that of

Ryan Greenawalt

Yes, I take This that. Ryan. is can

It's next we we're start the now, it to And this there's California, of they West for strike But the And positioned and with is really opportunity towards the Coast, a probably think remain strategic they're and excited where longer long-haul to footprint. be along outside think that early pipeline costs heavier not can very piece proposition it's in on where field. where dead. going executed of second the trucks we're it. side, first in we to focused momentum, on they our customers a our So a the hopeful their we the trucks. think bit the of for the And those electric application recall building it point the have we to of our this half. continues your our battery really well as to answer we're question, material duty, upon. for be read, of going zone impact hydrogen to footprint of first it's going not little there's haul in be QX. about still you adoption to be on for patiently fleet demand, start back reside Right been, almost very about narrow where year. we've execute infrastructure, to in of earnest transportation relative marketplace, us We solution. is -- part part is this which these that's vehicles, types north to a a to calendar is a but like on There's recall feels that of in waiting the but the year of get strategy, of and which electric, of sold going in What excited

Operator

is from Securities. of with the question Next Jackson Ted line Northland

Edward Jackson

And and on congratulations I'd year. to echo quarter the the like

parts. side? those That's number you tuck-in it question And X handling opportunities, and more material geographic the is geographies? then in, footprint? pushing filling within you you Or when more just pipeline. or over are construction opportunities on my are So M&A first just side looking seeing question, that in rolling you, I'm of front the on the to through opportunity would is your it one, into new curious, you're

Ryan Greenawalt

the delineate Yes, with our and of material first piece of handling part in to Hyster-Yale, APR that because other for I'll of lines of versus -- it's take and firmer that's material that's exclusivity we compete strategy. them, easy are terms outside pretty with growth the business. our With APR much for globally the the construction our can't handling dealer have network exclusive we forklifts, that of any

open north [ a to to down we and opportunity manageable the them. trying market We're they've world to U.S. there there's And dealer Hyster-Yale, is with cover dealer investment the in also started internationally, YIT very network the the size, with addressable And room the go growth and with their XX% been in Canada a there. Our of potential Today, Canada. get for growth which little Hyster-Yale. largest there's with for of to about we second ]. grow

in a dealership the up we we broader what turf through we and type side, our define It's Michigan. everything Chicago represent in the link Michigan construction sell small areas Northern things construction as the all On Kubota much in belt from of category agricultural that cranes and way it's to is that equipment. the

consolidation is are more, I playing consolidation many started of I later for we're dealers. field. just I'd way strategy There it. characterize a getting for types much fertile a guess, the us and material of it's so and more We're area handling, much today. It's And innings more the guess, in in equipment that open construction,

Edward Jackson

the case, And exposure getting mean, automated know are mean take? tie-in distribution robotics from I I some kind some much see handling could that MODEX see space of really mean products world, that pie technology. to next much couple question and me that the this a of by around is that this that then taken deployed. think you over your question was could the robots. being a But automation within got I have you was sticking for recruit? it that spending where automation and broader of robotics, it where I amazing would some and out It's you came guys you how I does was Shifting it stuff questions that. at I Okay. as technician we is material Does secret. One actually X clearly, of not days up things demoing a sit themes. week for of not how is, in in much and it kind It around innings, of move to making there. I to the more to I make do And that's service and ability much how your does is early is harder of of recruit. easier challenge but floor that? towards my trend. of terms you In the know about move towards find to it I you we're the kind some it's that deployment that it the

Ryan Greenawalt

business play the start aftermarket. support that out solutions. second handling in robotics electric and the which recruit of machinery. our heavy ability all with technical about that, Let's sorry, laptop is question. core skill mechanic more or equipment product salute the have We I there's is, to these to it replacement. today, automation It's less and our the diesel actually a in going opportunity diagnostics. material the ability, that same the was in or first which thing is it's tools it's aptitude longer train easier. will piece other and with the delineate breadth It's was as handling than works in question. question a to question? think multipart someone positive, position really that more going different The be of set. to is functional as than an to engine a think fully takes thing That's we highlighted type heavy harder and we train on guess with heavy see segment, portfolio. It's of advanced a the of best some robotics And be that train we to X. we then all was Ted, to that which happening -- And material It's machines, What component way be harder second

Edward Jackson

of I've and product it, that have old life. the marketing you call some at offerings that Well, that like around Yes. you I your I where we're do have literature goes what -- seen into mean, guys in your, in

Ryan Greenawalt

of is couple being we're Hyster-Yale early commitment capitalize we The but lot that dealer and about that technologies. We're like there's But that. as surface. positioned, their robotics our scratching have we and be the we're excited are innovators, in allied Yes. and that. positioned we're portfolio And what lines, and well more us and and come, their networks excited and parts working we're we're partner, emerging flagship our of is peers to on really and just about early other some a Right. to see to our what of we we're automation. on feel days, part well and really excited innings, a And that you to market they're are can have

Edward Jackson

final good are story, a in had in spent some they I question demo stuff is, there. which nice No, booth X.X this hours their had a about just they and week and But hit are equipment. you and it My picky in of for expecting to going Tony. But regards really rental your net Tony, for you're what 'XX CapEx 'XX, of with extensile? be for to part what's really

Anthony Colucci

Ted, a good be at number $XX there. for a et needed, lot, improvements that number for if on bet This stuff, this new leasehold roof, would figure. a million cranes, that the parking things is a cetera. space, a $XX of is like million branch, good refurbishing

Edward Jackson

of then really curiosity. It's my question, And net is Okay. picky. out last which more

On statement, on bargain flow business? of purchase what gain the cash is

Anthony Colucci

what allocation. principles assets general brought paid saying, that into Gain into, us that's by Burris you different that more fair price on judgment the the is to for on it. bargain It but gain were comes there's transaction purchased obviously that won't that and that purchase and purchase than I Ted, factors was. of is get in accounting worth were assets that valuing effectively And

Edward Jackson

on congrats again, XXXX. and the look to forward Well, right. quarter I the All year.

Operator

Thank questions conference of On the waiting behalf no additional the question. for are you your call. That at thank time. company, There your will this participation. conclude for you

You disconnect may now your lines.

Alta Equipment (ALTG) 14 Mar 242023 Q4 Earnings call transcript