Alta Equipment Group Inc. · NYSE:ALTG
Alta Equipment — Q1 2022 Earnings Presentation
29 slides from Alta Equipment's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation May 10, 2022
Slide 2: Agenda
I. Introduction II. CEO Overview III. CFO Overview IV. About the Company V. Appendices Q1 2022 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: Executive Officers
Introduction Executive Officers Ryan Greenawalt, CEO Tony Colucci, CFO NICK HAGEN Q1 2022 Earnings Presentation | 4
Slide 5: CEO Overview
I. Introduction II. CEO Overview III. CFO Overview IV. About the Company V. Appendices Q1 2022 Earnings Presentation | 5
Slide 6: Q1 2022 Highlights
CEO Overview Q1 2022 Highlights Strong Start to the Year as Products and Services are in High Demand Net revenue increased 23.4% to $331.7 million over the prior year with organic growth of 12.2% Construction and Material Handling revenue of $206.1 million and $125.6 million, respectively, up fr
Slide 7: 2022 and Beyond
CEO Overview 2022 and Beyond Foundation in Place for Sustained Growth in 2022+ Constrained supply chain expected to continue to drive parts and service productivity and rental utilization M&A pipeline remains active for accretive deals that will drive and support growth strategy and long-term va
Slide 8: Strategic Acquisitions Post IPO (2020-2021)
CEO Overview Strategic Acquisitions Post IPO (2020-2021) Dealership Target Revenue: Revenue: Revenue: Revenue: Revenue: Revenue: Revenue: Financial $35MM $65MM $19MM $41MM $33MM $28MM $50MM Highlights EBITDA: EBITDA: EBITDA: EBITDA: EBITDA: EBITDA: EBITDA: $3.1MM $6.5MM $3.2MM $4.7MM $5.0MM $3.1MM $
Slide 9: Emerging Markets: Alta Commercial EV Segment
CEO Overview Emerging Markets: Alta Commercial EV Segment Partnership with Nikola Corporation (NASDAQ: NKLA), a global leader in zero- emissions transportation and energy infrastructure solutions, to supply and service Class 8 battery-electric and hydrogen-fuel-cell-electric vehicles in the Northeas
Slide 10: CFO Overview
I. Introduction II. CEO Overview III. CFO Overview IV. About the Company V. Appendices Q1 2022 Earnings Presentation | 10
Slide 11: Q1 2022 Financial Summary
CFO Overview Q1 2022 Financial Summary Q1 2022 Financial Summary Quarterly Comparisons Adjusted EBITDA of $30.0MM versus $23.0MM in Q1 2021, a 30.4% increase Adjusted Proforma EBITDA of $30.0MM versus $26.9MM in Q1 2021 Revenue growth of $62.9MM, or 23.4%, from $268.8MM to $331.7MM Increased
Slide 12: Q1 2022 Financial Performance
CFO Overview Q1 2022 Financial Performance 2022 Quarter over Quarter Revenue / Gross Profit ($MM) Quarter over Quarter $331.7 $91.4 Total Revenue $268.8 Revenue grew 23.4% to $331.7MM $67.3 Organic Revenue grew $32.8MM, or 12.2% Gross Profit grew 35.8% to $91.4MM, increasing gross margins by 2
Slide 13: Q1 2022 Adjusted EBITDA / Cash Flow
CFO Overview Q1 2022 Adjusted EBITDA / Cash Flow Adj. EBITDA1 / Adj. PF EBITDA1 Quarterly Year-over-Year Adjusted EBITDA / Cash Flow Q1 2022 Q1 2022 $30.0 Q1 2021 $30.0 Q1 2021 $26.9 Adjusted EBITDA improved by $7.0MM from $23.0 $23.0MM to $30.0MM, or 30.4%, primarily related to impact of acquisit
Slide 14: Proforma ALTG Financial Profile
CFO Overview Proforma ALTG Financial Profile 2020 2021 YTD Q1 2021 YTD Q1 2022 TTM ($MM) 2020 2021 PF+Acq1 PF + Acq1 PF+Acq1 PF+Acq1 3/31/2022 Alta Revenue $873.6 $1,212.8 $873.6 $1,212.8 $268.8 $331.7 $1,275.7 Acquisitions Revenue - - 306.3 134.0 37.2 - 96.8 Total Revenue $873.6 $1,212.8 $1,179.9 $
Slide 15: ALTG's Steady Performance in Supply Chain Constrained Market
CFO Overview ALTG’s Steady Performance in Supply Chain Constrained Market Supply Chain Impact on Department Commentary Constrained EBITDA • Supply chain constraints cause new equipment shortages and New extended lead times, impacting Alta’s ability to deliver new Equipment equipment to customers and
Slide 16: ALTG's Steady Performance in Inflationary Environment
CFO Overview ALTG’s Steady Performance in Inflationary Environment Department Impact on EBITDA Commentary • Increases in input pricing able to be passed along to end New Equipment customers through manufacturer suggested retail price Sales (MSRP) • Increases in trade in values on equipment preempts
Slide 17: Segment Highlight: Material Handling Dealership Business Q1 2022
CFO Overview Segment Highlight: Material Handling Dealership Business Q1 2022 Established business with high market share and ample field population drives returns for shareholders Product Support Mix1 Q1 Income from Operations 42% $5.2MM Absorption1,2 Technician Headcount 110% 682 Return on Investe
Slide 18: Capital Structure / Credit Profile
CFO Overview Capital Structure / Credit Profile Credit Facility Proforma Capital Structure ($MM) 3/31/22 EV/Adj. EV/Adj. Liquidity of ~230MM at 3/31/2022 PF EBITDA EBITDA Guidance ~$20MM Suppressed Availability Cash $1.6 Uncapped availability of ~$250MM Debt:1 Lines of Credit (ABL)2 $116.1 0.8
Slide 19: Debt Structure and Maturity Runoff
CFO Overview Debt Structure and Maturity Runoff ABL High-Yield Bond (HYB) $350MM facility committed for another 3.5 years 4 years from maturity date Interest Rate SOFR+175-225bps Coupon rate fixed at 5.625% Ample liquidity for growth No amortization Conducive for acquiring asset-heavy
Slide 20: Q1 2022 - Reaffirming FY 2022 EBITDA Guidance
CFO Overview Q1 2022 - Reaffirming FY 2022 EBITDA Guidance FY 2022 Guidance FY2022 Outlook ($ in MM) $137.0-142.0 Adjusted EBITDA (Net of New Equipment Floorplan Interest) 2022 Guidance Commentary Highlights/Rationale • Building off 2021 and Q1 2022 performance in rental and product support business
Slide 21: About the Company
I. Introduction II. CEO Overview III. CFO Overview IV. About the Company V. Appendices Q1 2022 Earnings Presentation | 21
Slide 22: Company Overview
About the Company 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 & Warehousing Solutions Select Equipment Offering: Construction Elect
Slide 23: Key Stakeholder Relationships
About the Company 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
Slide 24: Expanding Footprint in Key Geographic Markets
About the Company Expanding Footprint in Key Geographic Markets Strategic Expansion 62 locations throughout Michigan, Indiana, Ohio, Illinois, Massachusetts, Maine, New Hampshire, Connecticut, New York, Vermont, Florida, and Virginia Dealership platform with parts and service capabilities drives
Slide 25: Product Support Overview
About the Company Product Support Overview Product Support Solutions We have capabilities to support all makes and models of Construction and Material Handling equipment. SERVICE PARTS Over 60 full-service Parts inventory of locations across 12 approx. $59 million states Electronically Appro
Slide 26: Appendices
I. Introduction II. CEO Overview III. CFO Overview IV. About the Company V. Appendices Q1 2022 Earnings Presentation | 26
Slide 27: Adjusted EBITDA Reconciliation
Appendix A Adjusted EBITDA Reconciliation TTM ($MM) 2018 2019 2020 2021 Q1 2021 Q1 2022 3/31/2022 Net Income/(Loss) Available to Common Shareholders $1.5 ($35.4) ($24.0) ($23.4) ($5.7) ($2.0) ($19.7) Depreciation and Amortization 37.1 50.1 75.0 95.8 21.4 24.2 98.6 Interest Expense 15.1 20.5 23.8 24.
Slide 28: Free Cash Flow Reconciliation
Appendix B Free Cash Flow Reconciliation TTM ($MM) 2019 2020 2021 Q1 2021 Q1 2022 3/31/2022 Net Income/(Loss) Available to Common Shareholders ($35.4) ($24.0) ($23.4) ($5.7) ($2.0) ($19.7) Depreciation and Amortization 50.1 75.0 95.8 21.4 24.2 98.6 Interest Expense 20.5 23.8 24.0 5.8 6.1 24.3 Income
Slide 29: Free Cash Flow Reconciliation – Capital Expenditure Detail
Appendix B (cont.) Free Cash Flow Reconciliation – Capital Expenditure Detail TTM ($MM) 2018 2019 2020 2021 Q1 2021 Q1 2022 3/31/2022 1,2 Replacement of Sold Rental Equipment, at Original Cost $57.3 $56.9 $105.4 $169.5 $37.2 $37.9 $170.2 3 Capitalized Costs to Maintain Fleet (1.5% of Beg. OEC) 2.7 3