Alta Equipment Group Inc. · NYSE:ALTG
Alta Equipment — Q1 2021 Earnings Presentation
24 slides from Alta Equipment's earnings presentation, May 13, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation May 13, 2021
Slide 2: Agenda
I. Introduction II. CEO Overview III. CFO Overview IV. Appendices Q1 2021 Earnings Presentation | 2
Slide 3: Legal Disclaimers
Legal Disclaimers Forward-Looking Information This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Alta’s actual results may differ from their expectations, estimates and projections and co
Slide 4: Participants
Introduction Participants Ryan Greenawalt, CEO Tony Colucci, CFO NICK HAGEN Q1 2021 Earnings Presentation | 4
Slide 5: CEO Overview
I. Introduction II. CEO Overview III. CFO Overview IV. Appendices Q1 2021 Earnings Presentation | 5
Slide 6: Q1 2021 Highlights
CEO Overview Q1 2021 Highlights Solid financial results and strengthened capital structure ▪ Net revenues increased 48.9% to $268.8 million over the prior year quarter with 5.2% year-over-year organic growth ▪ Adjusted EBITDA grew 38.0% to $22.9 million compared to $16.6 million last year ▪ Recent o
Slide 7: Q1 2021 Highlights
CEO Overview Q1 2021 Highlights Well positioned to deliver increased results and deliver shareholder value in 2021 and beyond ▪ Strong consecutive new equipment sales drive future higher margin, recurring product support revenue ▪ Large opportunity in key geographic regions to add skilled technical
Slide 8: Business Opportunities
CEO Overview Business Opportunities Material handling / warehousing Construction ✓ E-Commerce growth ✓ Increase in industrial production ⚫ Higher volumes driven by shift in consumer buying behavior ⚫ Driven by rise of e-Commerce and associated need for logistics systems and other ⚫ Increased complex
Slide 9: Company Overview
CEO Overview Company Overview Best-in-Class Brand Portfolio Creates Cross-Selling Opportunities Comprehensive Service Offering Across Heavy Equipment and Material Handling Products Select Equipment Offering: Material Handling Select Equipment Offering: Construction New and Used Equipment & Design Ma
Slide 10: Key Stakeholder Relationships
CEO Overview Key Stakeholder Relationships Collaborative OEM relationships Enhanced customer relationships ⚫ Consistently acknowledged ⚫ Provides equipment solutions as a top dealership partner to leading industrial and by OEMs construction businesses ⚫ Leading market share by ✓ Exclusive OEM ✓ “One
Slide 11: Expanding Footprint in Key Geographic Markets
CEO Overview Expanding Footprint in Key Geographic Markets Strategic Expansion ▪ 55 locations throughout Michigan, Indiana, Illinois, Massachusetts, Maine, New Hampshire, Connecticut, New York, Vermont, Florida, and Virginia ▪ Dealership platform with parts and service capabilities drives recurring
Slide 12: Product Support Overview
CEO Overview Product Support Overview Product Support Solutions We have capabilities to support all makes and models of Construction and Material Handling equipment. SERVICE PARTS ▪ 55 full-service ▪ Parts inventory of locations across 11 approx. $43 million states ▪ Electronically ▪ Approx. half of
Slide 13: CFO Overview
I. Introduction II. CEO Overview III.CFO Overview IV. Appendices Q1 2021 Earnings Presentation | 13
Slide 14: Q1 2021 Financial Summary
CFO Overview Q1 2021 Financial Summary Q1 2021 Financial Summary Year over Year Comparisons ▪ CV-19 Gap Closure Nears Completion ▪ Adjusted EBITDA of $22.9MM versus $16.6MM in Q1 2020, a 38.0% increase ▪ $23.0MM in Adjusted Proforma EBITDA versus $23.8MM in Q1 2020 ▪ Rental utilization and labor pro
Slide 15: Q1 2021 Financial Performance
CFO Overview Q1 2021 Financial Performance 2021 Quarter over Quarter Revenue / Gross Profit ($MM) Quarterly Year over Year $67.3 $268.8 42.9% ▪ Revenue grew 48.9% to $268.8MM 48.9% $180.5 $47.1 ▪ Eight acquisitions completed since 1/1/201 ▪ Parts/Service revenue grew $0.7MM, or 1.4% organically ▪ Re
Slide 16: Q1 2021 Adjusted EBITDA / Cash Flow
CFO Overview Q1 2021 Adjusted EBITDA / Cash Flow Adj. EBITDA1 / Adj. PF EBITDA1 Quarterly Year over Year Adjusted EBITDA / Cash Flow Q1 2021 Q1 2020 Q1 2021 $22.9 $23.8 (3.4%) $23.0 ▪ Adjusted EBITDA improved by $6.3MM from 38.0% $16.6MM to $22.9MM, or 38.0%, primarily related Q1 2020 $16.6 to impac
Slide 17: Proforma ALTG Financial Profile
CFO Overview Proforma ALTG Financial Profile 2020 TTM ($MM) 2018 2019 2020 PF+Acq1 2020 Q1 YTD 2021 Q1 YTD 3/31/2020 Alta Revenue $413.0 $557.4 $873.6 $873.6 $180.5 $268.8 $961.9 Acquisitions Revenue - - - 164.5 75.9 1.7 90.3 Total Revenue $413.0 $557.4 $873.6 $1,038.1 $256.4 $270.5 $1,052.2 % Growt
Slide 18: April 2021 $315MM Bond Issuance Improves Capital Structure
CFO Overview April 2021 $315MM Bond Issuance Improves Capital Structure Current Impact Liquidity Cost Reduction Covenant Light Risk Avoidance Availability of $280MM 10% reduction in cost of debt Elimination of Eliminates Interest Rate (+$140MM from Q4) from prior capital structure Financial covenant
Slide 19: Capital Structure / Credit Profile
CFO Overview Capital Structure / Credit Profile Credit Facility Proforma Capital Structure ($MM) 3/31/20 PF Post EV/Adj. EV/Adj. ▪ Liquidity has increased ~$140MM from Q4 to Q1 Bond PF EBITDA EBITDA Guidance 2021PF Cash $0.6 ▪ Bond issuance of $315MM in April 2021 Debt:1 ▪ ABL Facility size increase
Slide 20: FY 2021 Guidance
CFO Overview FY 2021 Guidance FY 2021 Guidance FY2021 Outlook ($ in MM) $110.0-115.0 Adjusted EBITDA (Net of New Equipment Floorplan Interest) 2021 Guidance Commentary Rationale • Solid Q1 2021 Performance • 2021 adjusted EBITDA guidance in-line with reversion to 2019 levels • 2019 Adjusted PF EBITD
Slide 21: Appendices
I. Introduction II. CEO Overview III. CFO Overview IV. Appendices Q1 2021 Earnings Presentation | 21
Slide 22: Adjusted EBITDA Reconciliation
Appendix A Adjusted EBITDA Reconciliation TTM ($MM) 2018 2019 2020 Q1 2020 Q1 2021 3/31/2020 GAAP Net Income $1.5 ($35.4) ($24.0) ($17.0) ($5.7) ($12.7) Depreciation and Amortization 37.1 50.1 75.0 13.9 21.4 82.5 Interest Expense 15.1 20.5 23.8 5.9 5.7 23.6 Income Tax Expense/(Benefit) - - (6.6) (1.
Slide 23: Free Cash Flow Reconciliation
Appendix B Free Cash Flow Reconciliation TTM ($MM) 2018 2019 2020 Q1 2020 Q1 2021 3/31/2020 GAAP Net Income $1.5 ($35.4) ($24.0) ($17.0) ($5.7) ($12.7) Depreciation and Amortization 37.1 50.1 75.0 13.9 21.4 82.5 Interest Expense 15.1 20.5 23.8 5.9 5.7 23.6 Income Tax Expense/(Benefit) - - (6.6) (1.1
Slide 24: Free Cash Flow Reconciliation – Capital Expenditure Detail
Appendix B (cont.) Free Cash Flow Reconciliation – Capital Expenditure Detail TTM ($MM) 2018 2019 2020 Q1 2020 Q1 2021 3/31/2021 Replacement of Sold Rental Equipment, at Original Cost 1,2 $57.3 $56.9 $105.4 $19.0 $37.2 $123.6 3 Capitalized Costs to Maintain Fleet (1.5% of Beg. OEC) 2.7 3.5 5.2 1.1 1