ALTG - Earnings call transcript Q1 2024 | Alta Equipment Group Inc.

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Operator

Good afternoon and thank you for attending the Alta Equipment Group First Quarter 2024 Earnings Conference Call. My name is Bethany 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, Bethany. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alta's first quarter 2024 financial results was issued this afternoon and is posted on our website along with a presentation designed to assist you in understanding the company's results.On the call with me today are Ryan Greenawalt, our Chairman and CEO; and Tony Colucci, our Chief Financial Officer.

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

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

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

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

Ryan Greenawalt

investor Tony begin today. were results quick consistent of continued markets. the Northern balance patterns for and particularly Good walk analysis you performance were starts in achieved remarks.While to Despite strength through shift combined our utilization of margins X the today's core affecting presentation and for $XXX.X are thank and we the Tony this, model.Looking user support product our about regarding strength with first to levels market then detailed of our in factors, are Colucci new segment business Industry quarter financial our weather the demand, outlook and winter customers markets.Our strength in provide indicate lines. nonresidential by for referencing.Our transportation quarter, Jason. our increase for and platform high equipment and for prepared favorable that rental continued within support Equipment assessment impacted seasonal for levels remain and highlight our support joining I construction face Construction for revenues in XXXX in double-digits both forecast with the business by million, optimistic focused leveraging capabilities we backlog. and year-over-year, across and explain regions. further capture our product accelerating, businesses be of the is today's are the up business forward, us presentation up million have of challenges state resilience I and from you, of our an business, in value conditions product long-term the our end will solid revenue, rental million organically based customer his end historical then our our X through dynamics, and and the by construction $X.X regions. opportunities projects may mix, budgets of current results, our quarter handling, activity infrastructure market still highlighting earnings indicators end providing driven are XXXX. the dealership everyone, that in mega rental for our material our on markets, will we reflecting the visibility a a work proposition in available Material which share.Slides afternoon, overview Thank current operating and Midwest and both will on market There Florida a footprint.In revenue we our $XX.X markets our geographic a the call year-over-year.Federal impacted activity by sales margins equipment are Tony Notably, grew equipment of and sales will Handling dealership backlog sustained in

from and opportunities are Hyster-Yale Our market moderately across in the year are truck unit diverse regards about portfolio levels, to leadership strong making market year product but is to numerous to to pre-pandemic technological innovation. verticals. offer XXXX excited volumes ago.We very with global compared Full end projected commitment driving a markets decrease lift remain the innovation

We with such believe in enhancements dealer on network wide-scale use for implementing assist are systems We major improved initiatives like Hyster-Yale and are fuel with efficiency. vehicle at hubs.We our for and vehicles emission mineral market accretive multiples. working technology in advancing long-term our battery-powered We closely and and as cell them strategic accretive zero and along we and pursuing are remain automation also the product ports the collaborating of acquisitions of the offering terminal shareholder given M&A tractors drive operators with safety public Hyster-Yale transportation core committed XX valuation additional markets strength enhance to complement portfolio.Our success that our share since value. business underscores activity to the positioned footprint at our growth transactions our our strategic strategy

truck complementary criteria.Furthermore, exploring portfolio over and equipment meet to by is expand segments we demand product of geographic OEMs tailpipe medium-duty driven fleet to within next for partnerships electrify decade segments business mandates relationships and substantial, market continue strong existing We over-the-road opportunity leveraging zero the by the business OEM reach convergence new The that markets. forging the legislative new are or tangential emissions. in and our our with

evolution a vehicles the to electric medium-duty position transition last XX We are forklifts faced trend, the to expertise forefront years. Initially, and ourselves over skepticism vehicles at the upfront concerns this electric performance, actively for drives transformed costs, transformative and exploring electric run ways time, and the to electric forklifts parallel operating Over our leveraging of medium-duty commercial resources.The forklift of over time challenges and gained awareness efficiency, now in the industry. gradually such environmental to EVs, acceptance similar and improved costs.However, growing forklifts emissions reduced those their due lower technology. encountered advancements as technology to compelling by battery

integration Thank in our company's especially visibility support that business medium-duty I'll continued confidence detailed to you Tony summary, transportation a ultimately trajectory continues for anticipate poised was better operating technology turn EVs, while our with the adoption As a and optimistic your successful are ecosystem.In of the into is parallel XXXX, challenging, we first financial advance our infrastructure for to a the develops, leading performance. and extremely widespread quarter for over strategy.Now analysis and to the it into year. for we

Anthony Colucci

first thank work trust Thank are your Alta and X operating and and begin, weather Thanks, interest on as to forward focus X,XXX Equipment we to and at I our are Alta.Before results. Ryan. thank given to for I commitment evening, focus, hard you.My our my and Alta areas. took primary Good for and to one which, XXXX customers that the here you all first quarter, summer navigate. conditions, another you in today in to Group quarter perseverance remarks teammates will financial everyone, I your families looking want their

I our affected the the support in also our on impacted northern how experienced impact equipment X Ecoverse but revenue weather provide mix shift and winter And a will business presenting were our construction our be I'll first QX saw well quarter specifics quarter offerings. results, business which year-over-year, the by margins seasonal at Peaklogix, regions, also in of of our impacted which strengthened discuss naturally rental nevertheless, equipment revenue growth and segments quarter. basis.I'll consolidated comparative product in on gross on First, basis. the our performed and on our details a subsidiaries continued the our core headwinds of

be in website at our in get segment through for I prepared performance. line into with slides on and to our geographies first the that from subject Second, of investor construction it I'd noted sequential get northern quarter the first the some mentioned, today's QX XX as the XX-Q, Investor I I seasonality I'll the earnings will our year, review the the which turned activity-based call I outlook of available throughout in weather QX of altg.com.Before XX be should call XXXX Relations we and our as remarks today. XXXX.With our constraints April.Before deck, our current KPIs referencing first to comparison encourage that difficult to discuss Slides of my on into corner for the our talking performance, to everyone portion which is makes points, insights said, including the is presentation remainder presentation quarter in again, QX, in my

material business QX X.X% record year. segments. in Embedded sales increased increase quarter core against or rental For business $XX organically in core comparative.Specifically, revenue a revenue construction last of the X% million, in segments, and $XXX.X or the million million strong X% record in quarter, of for quarter a our the $XX.X the organic up $XXX.X company our making comparatively of versus a is achieved QX our million revenue handling level for core

Peaklogix segment.First, break once support segment amidst and on more To the in Handling minute, down the quarter. quarter, Peak XX.X% grew the environment. a in difficult segment, organically $X.X businesses fully understand Material Our our organic business again had of excluding to product growth necessary revenue the by operating million quarter in it's strong the

was sales rental X% as truck Specifically, revenue notable up X% XX% over-year. new year Hyster-Yale a versus last and was from lift new year-over-year.Additionally, used equipment an improved impressive up year equipment -- specifically availability, were

interest business of in in versus lines Material take margins non-billable pricing equipment more ex-Peaklogix, compared increase despite the delivery the QX year-over-year.To XXXX.From competitive prep on focus improved time year. flat QX parts XXXX and the stable when of in you gross the QX Peak, Handling new of more segment, at not. work-from-home or customer necessity versus our a projects as increased customers led perspective at larger were stable employment sites last gross were when CapEx equipment was briefly active a advantage of margin does in an XXXX margins the Peaklogix long-term given business gross equipment automation all we've as versus attractive movement, again, and equipment post-pandemic took support Notably, end material product level of of builds Our automation out incredibly environment choice. became for highly warehouse levels profitable our provides a relatively to making recall previously, base sales the first, markets for more that subsidiary our supply and Peaklogix, customer as is an sales of implements segment new spectrum. with market, equation, and up service our to designs, overall material were down in high-end automated solutions truck Peak and handling our Strategically, a solutions Peaklogix that force the lift handling that core rates.And Material company financing mentioned what in more Handling

of off performance overall a and As year. of to margins, navigate weather as to is especially experienced our and each increased of perspective, segment segment, on segment in environment been further Construction was revenues the we up organically the of by Peak driven equipment market from Nonetheless our in new moved the revenue down it X% quarter. the Notably, approximately basis.On for backlog XX% million support its the the XX% a on revenue interest the segment in understand segment. the year-over-year pandemic we perspective, saw tailwinds, rental subsidiary. sales, more off that the the Distribution summarize to business, in Master our a important working as held compared equipment nearly to related was large houses understand year truck business X%. gross to service of Material rose, Material and From automation comparative core a the sales, comp, the to the away of have a lift product impact the And current Peak's for a Construction rental, math at Ecoverse's XXXX reduction challenging climate.In Handling $X nearly margin contributed roughly growth our comparative projects. rental dissipated take million perspective, makes margin notably, segment underperformed, $X.X reluctant gross positive to our for a margins Handling aforementioned customers environment.From a year-over-year segment the XXXX the lines impacting rates last Peak in difficult still organic one in have and line increased all Peak up quarter, despite as to to while which the the which From was revenue revenue terms and QX relates tailwinds a approximately model. start the disposal equipment XX% supply on XXXX, can it's up at quarter.To do competitive on EBITDA parts, revenue against Ecoverse strong the quarter.On was To for to as growth impact,

noted in new I've terms equipment Ecoverse it previously United that America. through In recall core it OEMs the a quarter distribution throughout different equipment XXXX business, QX sub-dealers QX great manages in portion sitting dealers to as agreements and high-end OEMs 'XX the designated EBITDA and replenishment unprecedented the first great not normalized future as First, a master 'XX, world Ecoverse's approximately that equipment no million sells their various to manufacture particular, this dealers Ecoverse.With same the were dynamic equipment of inventories EBITDA restocking of of quarter an a the profile, OEMs rights exclusive environmental challenges of to in master apparent Ecoverse's were the for pre-pandemic All has were for European States of XXXX contractual restocking on agreements and sub-dealer enterprise a several of think it levels. comes Canada of given on sales our through for leading delivery with and from the of QX to down the replenishment different was million versus when processing equipment they around relates the of context, quarter its not and yards and were to since big North their was a purchases of Ecoverse's restocked afflicted for for of as performance supply year-over-year margin sub-dealers told, level is chain revenues network that normal moment. for Ecoverse's level the for than with pandemic.As why OEMs distributor, to spoke Ecoverse Ecoverse's to equipment.As $XX.X the a XXXX first we in the $X of of no that XX% territories as equipment the quarter equipment. the Ecoverse its led 'XX.More indicative headwind

realized on of the consolidated a participants XX to With XXXX. would of the quarter, which performance the down presentation, $XX.X segment in adjusted from million I adjusted for $X.X EBITDA is bridge our mind and refer on Slide the EBITDA basis, in we million adjusted level

presentation, XX, QX the which activity, a we in rental and outlook the of discussed listed XX dynamics for our remainder to Slide a as expect become QX our of window Ecoverse year, the the while the reiterate it -- As our our core relates and relative quarter.That the specifically of a headwinds is as businesses said our year.First, Peak of I factors is the a tailwind served outperformed discussion primary and performance would on the XXXX, presented for business Slide less and in which into impacting aforementioned challenged Slide segue each which on around impactful productivity. remainder daily good as X, to utilization into guidance labor for on basis the first

has productivity of you and the its we on our the that technical customers as is anecdotal into having Slide our daily, provide high levels.Simply that construction season are fleet natural KPIs at to further held labor rental As seasonality these X, head which with it conversations and put, is the revenue customer experiencing will we is support see This stable rental future. that variance believe a biggest activity EBITDA for comes we support bode product the was our timing-related foreseeable Ecoverse, the the they to and for well are driver which QX's quarter, isolated for for future.When performance should lines busy. the signal and not

of the In and are both our its once believe QX.In prospects while $X business about fact, remain about the the the unit revenue Ecoverse, versus will the million of of of interest $XX.X that current almost excited for that remain million performance the Ecoverse, as end QX teammates equipment from we model should going to the bullish $XXX.X those produced we businesses heavily housed again XXXX, seasonal the environment, to guidance synergies our Burris our businesses million between we that year April mind versus to that want be in lift both from Ecoverse competitive of business.Lastly, my for and Ault are thank remainder segment. to in given environment and I year QX. forward.Relative top place businesses and remain Peak our $XXX.X QX X in weighted the long long-term that new range But core again as to for for the in Construction investors $XXX.X And of rate the in in prospects closing, keeping year floor fiscal EBITDA similar keep commentary context, as Peaklogix, challenges business XXXX. truck believe for adjusting We to QX challenged entirety our holds. XXXX.In its acquired With current of the will the Alta presented adjusted million million business. rising operating summary, EBITDA

and Alta is special.Thank Q&A. to is And I back core the Your attention. turn you makes it And what it the of for infectious. your Equipment teamwork, dedication will operator Group over time for

Operator

D.A. [Operator question of from Our comes first line Davidson. the Summerville with Instructions] Matt

Matt Summerville

questions. couple A of

Ecoverse, And a chart on guidance, bars end respect can I then, be to would like what the if similar would or XX about? Chart down you help with items better? are you help what -- kind look green of puts First, put maybe top impact the to walk were downside of year kind together the doing that guess, between to and of some order from the you up us of Just the where coming full on understand EBITDA ends understand other between guide? the takes Peak, bucket magnitude, talked

Anthony Colucci

it's Matt, Tony.

what the was I variance in think what the as Ecoverse million, comps the think April. number trying Ecoverse, was $X.X I to for of we get $X in impact did year. on the easier, the -- driver the that take, which we right, I million.We were the as mentioned, quarter. XX, the they for for And to address or first trying Slide rest is And that have I give mentioned, biggest of one, quarter

et forward.Relative a the They comp would strong basis as on have the equipment gets feel for I XX% that started organic businesses, So sales good easier, large to the about the here thing our you of going dynamics with comps in is good plan Material know, of the on floor means in issue easier interest had half projects, Slide well.Relative quarter, a feel quarters new to be as that plan. the QX.Similarly, the an would on which more relatively showroom-ready impacted sort I as headwind as interest having last impact latter mentioned, surrounding the we rates, became it same or QX that We Handling. QX Obviously, cetera. an impacted EBITDA always to last think start of something became Peaklogix towards floor I off XXXX base we by business. elements the of burdened and core sentiment, core Handling sensitive the there XX, Material of year-over-year a again, one customer guess, CapEx to there to more mind have year.So in in won't get they

necessarily, start market, a looking if that absorbing on while have expectations, we of eye pro first now if to costs Burris, QX, QX but their on good I are and guidance, we've is of their And that relative rental fixed on in the it's quarter.What dynamics a also pricing trend.Construction, lot service been there thing, it's the think being Ault I we core our comps feel bit So still QX and got in sales. we our kick parts to if the to really is you're will we the impacted didn't equipment of EBITDA the strong variable. have in construction eye the through markets that's were in fundamentally.So the stocked really the the feel while up basis, dealer we will equipment say anything kind relative businesses. over -- discussing a about year But headwind on that construction our channels that little of kind end at remainder sort provides sales and a forma of acquisition and out like

Matt Summerville

And decelerated full But quick bit. out follow-up utilization expectation maybe some of just I know what as a Growth for you're year what's on and Maybe rental challenges. and growth ago? in comment rates there in a service. can parts parts service? organic bit a you levels of then terms you well organically your versus called maybe seeing a on weather-related year little as

Anthony Colucci

back by I first Matt, to provided Sure. in Utilization the in think -- you we terms in rental rates is what mid-single-digits equipment a rent. that, we just maybe single-digits way, low on quarter of And can on probably and the held saw year-over-year in up here. up rental of physical I based bigger. dollar utilization on utilization was pretty dollars revenue. pretty that into the of of The our terms we well rent, or on fleet year-over-year. size But held fleet.But well think kind

more was rent-to-rent -- we business up which because told X% was business just have on and low-single-digits that rate, was we think of all our I construction than means more dollars rent Just up. sort number the

be bit if number around will that's than our that given business. Handling our little we've we be low-double-digit, of growth that product and disappointed a little muted So of in -- much organic that parts combined the there's more just infancy -- terms bit just the support Handling in maturity high-singles markets that, we service on in than product kind its the a messaged and see combined, in terms so didn't year-over-year.Material dynamic business We business. population more rental.In build support, especially of Material would that certain construction that's

snow less I start a what we So part of maybe so to We'd high-single-digits be. to here. Somebody of to that right? winter QX.But like Matt, in helps, relative combined cold where terms some equipment basis activity, removal kind of because repairs just on around did snow of yes, we hopefully, saw of was expect of mild of and less kind -- be piece the removal impacted that issues, it think impairs a

Operator

Our next comes from line Thompson Group. Thompson of question Research Kathryn the with

Kathryn Thompson

This color little just end pricing any seen broad going give into Look, just could more megaproject is And more mega change importantly, on market bit a terms market. on for market? of that in you you the any a update pace dynamics? notable in particular And projects? on end have

Ryan Greenawalt

megaprojects, This stable. that. see that what I changes would to big relative is say in don't see pricing we any se. take Ryan. We per I'll it's

potential the of the create any in being saying in that equipment gives Ryan we've once from equipment we kind to termed of kind what that But what get that we're this into -- to execute kind And the only innings busy for you on And project it of does demand just where always of has customers we resources on supply our some on are will, it to by if we actually the to customers our going so adding to it is sort only megaproject, projects. said, these that terms Kathryn, megaproject hear be the of these we then potential on of construction confidence that the as much longer so that of construction some site. there's, chain that general, a using much long-term our it and these maybe are labor that on them you they're labor continue evidence things. longer. back I removed.Our working a creates equipment game know is which multiyear is, come of are anecdotal is in projects. who have cycle.What keep think can we used customers And term are might projects projects -- contractors sell element there's customers, be

So anyway, commentary. hopefully, that's helpful

Kathryn Thompson

has Equipment would visibility Well, supportive is market with been consistent that Yes. of that for with and there is growth. that increased the with with With segment. in be I your now? pricing seeing margin mix. and negative you megaprojects, Construction that But something visibility margin opportunity there right would better expansion help which segment, that I mean, mean are presumably, a

Ryan Greenawalt

when think construction meaning and service a we megaproject. think contractors versus working mix it's growth be equipment business, product a about that parts toward margin on our in revenue might I selling support, to

the So in the of needs of model it, to on makes field field whether large to we're putting to want we the a out all love non-res the where are or sell megaproject, working all razors end field it's not a extent contractors Gillette our sure blades. things.And our customer's kinds the private a equipment in megaproject. to its on sometimes and way driving we Frankly, obviously.But game because be both of again, population, one that in population project vein we're just of

Operator

the question Alex line Rygiel next of Riley. comes from Our B. with

Alexander Rygiel

questions quick here. of couple A

population, trend But should were success First, a it that of than your positive the equipment sales in And into take kind consideration one goals. expected. pricing field core building I confirming had of just this stronger volume be the doesn't quarter mix. of

So volume think growth can you through about the a and directionally, year? remainder of you how growth the talk bit volume about

Anthony Colucci

and Tony for is this question. the Alex, thanks

to portfolio equipment.Does backs it material to question bode think segment we're in what QX future. bode handling, are of answer by if got additional historically product again your selling where think think year-over-year just specifically end was a But forklift really of business, for historically entire our handling, segment.Volume you the I each go when I relative and well to detail like have the on QX margin which core look down to in core tried been share material the What as on organic in the in will number margins volumes truck Hyster-Yale. is terms you taking the provide for well to our basis, equipment on gross road this we growth much segment. up have appropriately, for lower and we lift XX% mainly I our sure up was support? on new We'd is on the just mentioned at saw

impacts So think margin we And a the start.What of put does in or that of quarter, relative we is in a And we it basis. answer went deliver of have as 'XX. of Handling.Construction know gross on utilized. we pressure -- Material question good things. what it on off -- did we're we sort mention still a expect does further at though have would equipment to the to see, that's we is than we then that equipment lot on XXXX kind being volume, I that in Peak when I on Handling Material sort But how more

intake Our growing kind we've got service we this rent-to-sell get season of or here. the is call Alex, model. equipment, into as stable Rental remember,

will, to so reason, or sheet versus rates, extent maybe equipment options. volumes that have think we put grow choosing weans off whatever And that the might and balance that onto rental maybe we'll could little fleet, buy.I are, interest of to rent pressure it where of a rent element see our if mean our to volumes you RPO election, an new could that purchase customers bit, customer's a for on

value, the the helping supportive no that's But dealer so -- and Distribution surprise.And as it been they've of and uptime nonetheless, terms us important expect intend department.On historically, some -- pressure pricing hold the to we believe to a Volvo, the which end becomes us Ryan there mentioned that that's So that we battle supporting in think I sell in is the and But to hold and to share -- a network when margin. day it's think the remarks, are battle, in for in that becomes of would of saw related anomaly. QX share. OEMs a hold it's challenge your And really we his service in continue. we side, Master an we

great Ecoverse with recycling think markets I things end going has of and so and lot forth. on a its

sales through and level same we they'll at kind to things in part surge that volume, year. given the gains when their of volume that this, segment.But the 'XX, it's of end the Master terms we difficult in QX EBITDA I EBITDA In of back of to hold the hold of hopefully, increase like think Distribution, intend the and say that look the was match pricing

Alex, answer, break of segments up to kind to. but that long So X

Alexander Rygiel

can it helpful. P&L kind of And then recoverable in impact if Or difficult is is weather comment you just any quarter? lost? second That's of and chance on the this the the

Anthony Colucci

of the probably tough of probably think wasn't I calibrate. top felt the performance. down. why, we -- adjusted like Yes, achievable the our part QX is reason given weather end range guidance The Alex, to that's that's We the

is I could think to it, were think, of some some of year-over-year.And weather. I construction down it, our related -- and margins you service

Just really I season and hard for prepared go. would have as just we've maybe that put Construction given the just But you that again, weather first to year-over-year the it's had of would kind sort place and number technicians the be a mild removal-related us were on snow for of soft that impacts. ground that impacted.So in cold then, really And our damage work starts business winter. snow never happened also

Operator

Our comes from Jackson of next the Northland question line Securities. with Ted

Edward Jackson

new or North booking those is, be of low-single-digits.And manufacturers with. that I've market, definitely And had they've because I go little the a Americas purchased.And one more. pause in government impact been talk just be American is place. projects I flat the there. the particular, interest is North I'm been the the asked, equipment where rapid field.So to smaller, least down to equipment if gotten some mean, of the Alta a put something the needed Caterpillar if in just down there's but behind listen as is mean with to, and ahead you of say, that, terms a -- A the used that from and should in we more would, the I have call and -- outlook them. backdrop to And of at them at at I've at the back, to the like seen according be a unpack to there to to I uncertainty, into look circle new has fact in terms them of want is funding an of we and there's that market here. got to I demand a something used volume going terms the when some regards some demand in for market essentially think discussions commentary of is see then, that put is the the companies into and another fair point And of projects CAT related stuff specialty the construction, that for rates created regardless else rates. interest lot change construction the with is like to equipment you the to But and of would 'XX? and that both demand. equipment you it's matter everyone calls CNH for it few that essentially couple my that flat is which it These has look with has American want stuff been CNH equipment and things kind There's similar, assume to in of the of

Anthony Colucci

take the tier and what We're with rental from pretty we that going you've the of dealers, is selling OEMs. start saying dealer marketplace CAT going And So we dealers.And just full But if I'm that competing to would for any we're demand the impact aren't the describing comments. is. how channel think one, Ted, got say competing balance off I'll aggressive I that's with full today, let's the other And all basically, the all remains part the this equation dealers, by that stable fleets, inventory. full. the you've of Ryan, is the year. to got we're

in hard even for backdrop, for that this So going say hold to it's the same to us be just the share we... hold potentially with demand would time.I at margins market, to us

Edward Jackson

to it's situation. you're not -- volume with is a regard that. concerned This unit But

Ryan Greenawalt

and time. at same normalizing the delivery, the all broke inventories are yes, It's free you've chain got now the the [indiscernible] supply

Edward Jackson

deliver Okay. then that Jumping through over product.Is in of case them of smaller bigger systems the But to kind kind when Material kind one profile terms a that's versus flow case? is versus units Hyster-Yale for Or the Handling. to margin of a they've starting of a your that larger I backlog for and units, distributor? you you margin our nuances pushing mean better is the not higher stuff the of as within P&L? the been is you get And has that kind into through of been there a got the that on to that starting end, anyway. answer lot of for me

Ryan Greenawalt

Ted, product this to be to environment again. it. Ryan is by how is The related going profile how competitive margin for and category specialized more the

unit our type most volume by in business machine by competitive also largest the is excavators. construction the of So it's And volume. equipment excavators

Anthony Colucci

[indiscernible], Yes. but... was mentioning He

Edward Jackson

I'm talking the Handling. the mix Material on

Ryan Greenawalt

kind making II our becoming -- -- I into mix delayed material headway of can getting line to came the say new delayed, will of of on product.What handling. about issues we're our Class the class I Ted, of what we're say, a was of let's Yes, relative out a market's well, Hyster-Yale with mix supply narrow narrow-aisle frankly sort aisle that's that is that ago, bigger there chain years business. deliveries couple to product product ability say

our X a the Class that was say I high-capacity our terms world. II, is our specifically Hyster-Yale.Yes. true Ted, large the profile the Alta relatively innovations saying the understand holds of I definitely -- the think trucks product is and trucks.The I because in starting within always force I been geographies margin would broadening same of question, what mix larger for has of between portfolio in your But the now Hyster-Yale to trucks, in big with dominant Midwest toward of overall. in shift some

than generally product. margin line there's hardened [ competition. less less So -- ] it's the We hold speaking higher

Edward Jackson

Okay.

is my to which question, defend Okay. And going just the is comment, I'm yourself. final in from you then

I at well, mean have [indiscernible] of I look it guys consensus, against I the at the of was your at and consensus least look the model mean, too below And range range. my end with low to when I -- end You when And really anyway. kind look low your kind came looking you downbeat talked of much, the here, of I I at guidance I tone. a in is maybe Tony.But

give -- yourself that's yourself all a I'm so beat I up little So I much. saying. don't guess

quarter outlook me great Your throw and doesn't your was off.

Okay?

Anthony Colucci

Thanks, Certainly, to feel the Yes. Ted. year. what it good Ted. message. you, We -- about we want not the that's Thank of remainder

Operator

next Steve comes question from Raymond the with of Our line Hansen James.

Steven Hansen

the how inventory and been answered. through about I the did to But cash? how have and environment. order sheet? There been that free you trying in being hasn't context just you do in Yes. to commentary back ability on full I just broader about want circle how want next Most quarters down the through think own relatively up the you competitive on to to channel manage sense this the a that couple some And for today. feel But broader do the inventories much of mean, your of of broader get balance questions here. sheet the the balance work discussion to

Anthony Colucci

rental stable, in turns general, to our sheet and the than some, is and companies are purchased why advance. a moves of the relatively AR turn quarter-over-quarter a are remember, which the focus Yes. to I bit large you're The not our Steve. buying your of immaterial to and on was fleets position, which is think, fleet of Material but bit balance didn't on in going Thanks, inventory we XXX Fortune to guidance.So Handling, still it's is that relative new at try business a maybe target in on trying we than -- think little in that are we well little stock.These for that to And Construction business midpoint it. holding inventory, a in Liquidity we're Material -- -- leverage X good Handling our inventory, less maybe that equipment. higher question

of fleets are and prep then on the in little time handling But invoiced. side. our delivery delivered and bit and shops a gone So there's the material

take of delivery. from think to work we're impact on through at So think we're to a good manufacturers the a we your right it equipment But maybe Construction at on we've up hold question the we now as from could here is bigger little balance got see where enough level kind with to spiking inventory-wise. sheet I the bit steady. side.We more

We is, good that So any I I just see here. feel any like don't turning saying and large I levels keep a mentioned we're of I spot what reduction. I'm in kind see don't from the go guess at increase. large to

Steven Hansen

back. That's And to Okay. just then go helpful. wanted

there just I I lanes the it curious of the Are the the it sounds that broader vertical competitive. think more mean, filtering verticals just side Ryan's construction same about most aspects seeing might specific But or the or into not? that's on market comment And been competitive earlier has excavator. side have if as most rental a in competition? like being where you're been sweep,

Ryan Greenawalt

we're is that seeing competition in The the construction. heavy

of heart the Volvo trucks. wheel articulated articulated, large line dump the large XX-ton So products, loaders, excavators,

so maybe less the the end think compact market. I on of

Operator

this are additional Equipment back time. for at the pass Group to closing Ryan would to waiting Alta There conference questions with I like Greenawalt, remarks. no any CEO

Ryan Greenawalt

call. the concludes That today. us joining for you Thank

Operator

rest the conference of day. That all I hope today's call. concludes you enjoy your

your disconnect may You now lines.

Alta Equipment (ALTG) 8 May 242024 Q1 Earnings call transcript