• Total revenues increased $19.7 million year over year to $488.1 million
• Construction Equipment and Material Handling revenues of $294.9 million and $175.6 million, respectively
• Product support revenues increased 10.1% year over year, with Parts sales increasing to $78.0 million and Service revenues increasing to $66.2 million
• New and used equipment sales decreased 1.2% year over year to $251.5 million
• Net loss available to common stockholders of $(12.6) million
• Basic and diluted net loss per share of $(0.38)
• Adjusted basic and diluted net income per share* of $0.01
• Adjusted EBITDA* of $50.3 million

Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, today announced financial results for the second quarter that ended June 30, 2024.

Ryan Greenawalt, Chief Executive Officer of Alta, said, “Our business rebounded well this quarter from the seasonally-challenged first quarter and in the face of a moderating market environment for new equipment sales. Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on an increased field population, with revenues increasing to a record of $144.2 million, an increase of $13.2 million from a year ago. Additionally, our Material Handling segment continued its steady path of profitable growth as we progressively executed a solid sales backlog and gained market share in strategic regions and product categories throughout our footprint. We also saw a rebound in our Master Distribution segment, as revenue in the quarter was $16.7 million versus $12.8 million in the first quarter. While we benefited from a return to normal seasonality and a strong quarter from our Material Handling segment and our product support business lines, market unit volumes in our Construction Equipment segment remain under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-size contractors. Additionally, our construction equipment sales margins continued to be impacted by the oversupply of competitive new equipment on the market in the quarter.”

Mr. Greenawalt continued, “In the second quarter, we gained further traction in our eMobility segment, which expands the Alta dealership model into the over-the-road commercial vehicle industry with a focus on commercial electric vehicles and fueling and charging infrastructure. To that end, we are excited about our new partnership with Harbinger Motors, a new manufacturer of best-in-class commercial electric vehicles in the medium-duty truck space. With the inclusion of Harbinger to our portfolio and the traction gained with new customers in the quarter, we now have approximately $25 million of sales backlog in the eMobility business that we expect the majority to convert to revenues in the second half of 2024.”

In conclusion, Mr. Greenawalt commented, “As we head into the second half of 2024 and into 2025, cost and fleet optimization and other initiatives to streamline our business will be high priorities as we calibrate to the transitioning environment. Despite what we believe to be potentially transitory headwinds for new equipment sales, our long-term outlook for our Construction Equipment segment remains positive. Infrastructure-related project pipelines are significant. We expect state DOT budgets to remain elevated in 2025 and spending on federal infrastructure programs is still in the early innings. In the Material Handling segment, we’re proud to be a world-class partner of Hyster-Yale Materials Handling and believe that their product portfolio and commitment to advanced technologies combined with our diversified end-markets will allow us to gain market share in key regions in the years to come, regardless of the volatility in the macro environment. I sincerely want to thank all of our 3,000 dedicated employees for their hard work and commitment to our business and to one another through the first half of the year.”

Full Year 2024 Financial Guidance and Other Financial Notes:

• The Company updates our guidance range and now expects to report Adjusted EBITDA between $190.0 million and $200.0 million for the 2024 fiscal year.
• On June 5, 2024, the Company sold $500.0 million of Senior Secured Second Lien Notes at the rate of 9.000% per annum, which are due on June 1, 2029 (“2029 Notes”). With the proceeds, the Company extinguished our $315.0 million of Senior Secured Second Lien Notes due April 2026. The Company recorded a loss on debt extinguishment of $6.7 million.
• Concurrently with the 2029 Notes, the Company amended our ABL First Lien Credit Agreement to extend the maturity date to 2029 and increase the facility size to $520.0 million.
• Concurrently with the 2029 Notes, the Company amended our ABL First Lien Credit Agreement to increase the floor plan facility to $90.0 million.
• During the second quarter, the Company repurchased 231,334 shares for $2.0 million. We have a remaining repurchase authorization of $10.5 million.