altg-ex991

Livonia, MI. – November 12, 2020 – Alta Equipment Group Inc. (“Alta” or the “company”) (NYSE: ALTG), a leading provider of premium industrial and construction equipment and related services, today announced financial results for the third quarter and nine months ended September 30, 2020.

Ryan Greenawalt, Chief Executive Officer of Alta, said “Alta’s solid third quarter results reflect increased customer demand from the prior quarter in both our material handling and construction businesses. As business conditions improved, we returned to close to our pre-pandemic levels of operation and labor utilization, and judiciously expanded our skilled labor force during the quarter in key areas across the Alta network. The addition of our two recent acquisitions in the Midwest, Martin Implement Sales and Howell Tractor & Equipment, will provide further penetration into a strategic growth market and further expand our product lines and OEM relationships.”

Mr. Greenawalt continued, “We anticipate a strong finish to the year and are excited to enter next year with momentum as we further differentiate and integrate our dealership and rental model, and capitalize on the investments we made in 2020. We believe this momentum paired with diligent execution will enable us to emerge as a stronger company as business conditions continue to improve.”

	Three months ended September 30,						Increase (Decrease) 2020 versus 2019						Nine months ended September 30,						Increase (Decrease) 2020 versus 2019
	2020			2019									2020			2019
Revenues:
New and used equipment sales	$	97.9		$	61.1		$	36.8			60.2	%	$	275.2		$	167.1		$	108.1			64.7	%
Parts sales		35.5			22.9			12.6			55.0	%		92.3			60.0			32.3			53.8	%
Service revenue		35.5			27.3			8.2			30.0	%		94.1			67.2			26.9			40.0	%
Rental revenue		32.2			27.8			4.4			15.8	%		83.4			66.9			16.5			24.7	%
Rental equipment sales		19.5			10.7			8.8			82.2	%		48.2			26.8			21.4			79.9	%
Net revenue	$	220.6		$	149.8		$	70.8			47.3	%	$	593.2		$	388.0		$	205.2			52.9	%

Cost of revenues:
New and used equipment sales		84.4			53.4			31.0			58.1	%		240.3			146.6			93.7			63.9	%
Parts sales		24.3			14.9			9.4			63.1	%		63.3			39.4			23.9			60.7	%
Service revenue		13.5			10.0			3.5			35.0	%		35.9			24.3			11.6			47.7	%
Rental revenue		5.4			4.3			1.1			25.6	%		14.8			11.4			3.4			29.8	%
Rental depreciation and amortization		19.2			13.7			5.5			40.1	%		47.1			32.9			14.2			43.2	%
Rental equipment sales		17.1			9.3			7.8			83.9	%		41.7			23.1			18.6			80.5	%
Cost of revenue	$	163.9		$	105.6		$	58.3			55.2	%	$	443.1		$	277.7		$	165.4			59.6	%
Gross profit	$	56.7		$	44.2		$	12.5			28.3	%	$	150.1		$	110.3		$	39.8			36.1	%
Total general and administrative expenses		60.2			38.0		$	22.2			58.4	%		157.7			97.4		$	60.3			61.9	%
(Loss) income from operations	$	(3.5	)	$	6.2		$	(9.7	)		(156.5	)%	$	(7.6	)	$	12.9		$	(20.5	)		(158.9	)%
Total other income (expense)	$	1.9		$	(33.6	)	$	35.5			(105.7	)%	$	(16.6	)	$	(42.5	)	$	25.9			(60.9	)%
Loss before taxes	$	(1.6	)	$	(27.4	)		25.8			(94.2	)%	$	(24.2	)	$	(29.6	)		5.4			(18.2	)%
Income tax benefit		(1.9	)		—			(1.9	)	NA				(3.4	)		—			(3.4	)	NA
Net income (loss)	$	0.3		$	(27.4	)	$	27.7			(101.1	)%	$	(20.8	)	$	(29.6	)	$	8.8			(29.7	)%

Alta will discuss its third quarter 2020 results via live webcast and teleconference today at 5:00 p.m. Eastern Time. A live webcast of the call can be found on the investor relations portion of the company's website at https://Investors.altaequipment.com. For a live audio teleconference, please dial (844) 543-5487 (domestic), or (825) 312-2330 (international), with conference ID # 8905858 to access the conference call at least five minutes prior to the 5:00 p.m. Eastern Time start time. Once connected with the operator, request access to the Alta Equipment Group Third Quarter 2020 Earnings Call.

A live replay of the call will also be available on the investor relations portion of the company's website at https://Investors.altaequipment.com. An audio replay will be available between 8:00 p.m. Eastern Time, November 12, 2020, and 12:59 p.m. Eastern Time, November 26, 2020, by calling (800) 585-8367, or (416) 621-4642, with conference ID # 8905858.

Additionally, supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website at https://Investors.altaequipment.com.

Alta owns and operates one of the largest integrated equipment dealership platforms in the U.S. Through its branch network, the Company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment and other industrial and construction equipment. Alta has operated as an equipment dealership for 35 years and has developed a branch network that includes 51 total locations across Michigan, Illinois, Indiana, New England, New York, Virginia and Florida. Alta offers its customers a one-stop-shop for most of their equipment needs by providing sales, parts, service, and rental functions under one roof. More information can be found at www.altaequipment.com.

This presentation includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about: our future financial performance; our plans for expansion and acquisitions; and changes in our strategy, future operations, financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on information available as of the date of this presentation, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the parties’ views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. You should not place undue reliance on these forward-looking statements. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against us relating to the business combination and related transactions; (2) the ability to maintain our listing of shares of common stock on the New York Stock Exchange; (3) the risk that integrating our acquisitions disrupts our current plans and operations; (4) the ability to recognize the anticipated benefits of our business combination and acquisitions, which may be affected by, among other things, competition, our ability to grow and manage growth profitably, our ability to maintain relationships with customers and suppliers and retain our management and key employees; (5) changes in applicable laws or regulations; (6) the possibility that we may be adversely affected by other economic, business, and/or competitive factors; (7) disruptions in the political, regulatory, economic and social conditions domestically or internationally; (8) major public health issues, such as an outbreak of a pandemic or epidemic (such as the novel coronavirus COVID-19), which could cause disruptions in our operations, supply chain, or workforce; and (9) and other risks and uncertainties identified in this presentation or indicated from time to time in the section entitled “Risk Factors” in our annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission (the “SEC”). The company cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), Alta discloses non-GAAP financial

measures, including Adjusted EBITDA, in this press release because Alta believes they are useful performance measures because they allow for an effective evaluation of Alta’s operating performance when compared to its peers, without regard to financing methods or capital structure. Alta believes such measures are useful for investors and others in understanding and evaluating Alta’s operating results in the same manner as its management. However, such measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for, or in isolation from, net income (loss), revenue, operating profit, or any other operating performance measures calculated in accordance with GAAP.

Alta defines Adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization, adjustments for certain one-time or non-recurring items and other adjustments. Alta excludes these items from net income (loss) in arriving at Adjusted EBITDA because these amounts are either non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Alta’s presentation of Adjusted EBITDA should not be construed as an indication that results will be unaffected by the items excluded from Adjusted EBITDA. Alta’s computation of Adjusted EBITDA may not be identical to other similarly titled measures of other companies. For a reconciliation of non-GAAP measures to their most comparable measures under GAAP, please see the table entitled “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

(in millions, except share and per share amounts)	September 30, 2020			December 31, 2019
ASSETS
CURRENT ASSETS
Cash	$	0.1		$	—
Accounts receivable, net of allowances of $6.2 and $4.4 as of September 30, 2020 and December 31, 2019, respectively		122.8			101.2
Inventories, net		221.1			137.2
Prepaid expenses and other current assets		13.2			5.7
Total current assets		357.2			244.1
PROPERTY AND EQUIPMENT, NET		293.7			196.5
OTHER ASSETS
Goodwill		22.8			8.6
Intangible assets, net		24.2			3.0
Other assets		1.9			2.0
Total other assets		48.9			13.6
TOTAL ASSETS	$	699.8		$	454.2
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Lines of credit, net	$	139.0		$	72.5
Floor plan payable – new equipment		118.6			87.7
Floor plan payable – used and rental equipment		36.3			112.5
Current portion of long-term debt		7.8			7.1
Accounts payable		62.8			31.1
Customer deposits		6.8			7.2
Accrued expenses		26.8			16.0
Other current liabilities		13.3			9.3
Total current liabilities		411.4			343.4
LONG-TERM LIABILITIES
Long-term debt, net of current portion		136.4			86.5
Capital lease obligations, net of current portion		0.8			1.4
Buyback residual obligations, net of current portion		0.8			0.7
Guaranteed purchase obligation, net of current portion		7.4			9.0
Lease liability, net of current portion		2.7			3.7
Deferred tax liability		15.6			—
Other liabilities		10.0			3.1
Warrant liability		—			29.6
TOTAL LIABILITIES	$	585.1		$	477.4
CONTINGENCIES - NOTE 11
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, $0.0001 par value, 1,000,000 authorized and no shares outstanding at September 30, 2020	$	—		$	—
Common stock, $0.0001 par value, 29,511,359 and 7,300,000 shares issued and outstanding at September 30, 2020 and December 31, 2019		—			—
Additional paid-in capital		183.6			—
Treasury stock		(5.9	)		—
Retained deficit		(63.0	)		(23.2	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		114.7			(23.2	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	699.8		$	454.2

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except share and per share amounts)	2020			2019			2020			2019
Revenues:
New and used equipment sales	$	97.9		$	61.1		$	275.2		$	167.1
Parts sales		35.5			22.9			92.3			60.0
Service revenue		35.5			27.3			94.1			67.2
Rental revenue		32.2			27.8			83.4			66.9
Rental equipment sales		19.5			10.7			48.2			26.8
Net revenue	$	220.6		$	149.8		$	593.2		$	388.0
Cost of revenues:
New and used equipment sales		84.4			53.4			240.3			146.6
Parts sales		24.3			14.9			63.3			39.4
Service revenue		13.5			10.0			35.9			24.3
Rental revenue		5.4			4.3			14.8			11.4
Rental depreciation		19.2			13.7			47.1			32.9
Rental equipment sales		17.1			9.3			41.7			23.1
Cost of revenue	$	163.9		$	105.6		$	443.1		$	277.7
Gross profit	$	56.7		$	44.2		$	150.1		$	110.3
General and administrative expenses		58.4			37.5			153.2			95.6
Depreciation and amortization expense		1.8			0.5			4.5			1.8
Total general and administrative expenses		60.2			38.0			157.7			97.4
(Loss) income from operations	$	(3.5	)	$	6.2		$	(7.6	)	$	12.9
Other income (expense)
Interest expense, floor plan payable – new equipment		(0.5	)		(0.9	)		(1.8	)		(2.4	)
Interest expense – other		(5.6	)		(4.7	)		(15.9	)		(12.7	)
Other income		8.0			0.3			8.7			0.9
Change in fair market of warrants		—			(28.3	)		—			(28.3	)
Loss on extinguishment of debt		—			—			(7.6	)		—
Total other income (expense)	$	1.9		$	(33.6	)	$	(16.6	)	$	(42.5	)
Loss before taxes	$	(1.6	)	$	(27.4	)	$	(24.2	)	$	(29.6	)
Income tax benefit		(1.9	)		—			(3.4	)		—
Net income (loss)	$	0.3		$	(27.4	)	$	(20.8	)	$	(29.6	)
Basic and diluted income (loss) per share	$	0.01		$	(3.74	)	$	(0.81	)	$	(4.05	)
Basic and diluted weighted average common shares outstanding		29,221,460			7,300,000			25,689,145			7,300,000

	Nine Months Ended September 30,
(amounts in millions)	2020			2019
OPERATING ACTIVITIES
Net loss	$	(20.8	)	$	(29.6	)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization		51.6			34.9
Amortization of debt discount and debt issuance costs		1.2			0.8
Inventory obsolescence		1.3			0.6
Gain on sale of rental equipment		(6.5	)		(3.7	)
Provision for bad debt		2.8			1.3
Loss on debt extinguishment		7.6			—
(Repayment) accrual of paid-in-kind interest		(11.2	)		4.7
Change in fair value of warrants		—			28.3
Share-based payment		6.3			—
Changes in deferred taxes		(3.4	)		—
Changes in:
Accounts receivable		6.2			(14.2	)
Inventories		(102.8	)		(53.2	)
Proceeds from sale of rental equipment		48.2			26.8
Prepaid expenses and other assets		(5.5	)		(1.3	)
Proceeds from floor plans with manufacturers		240.5			183.1
Payments under floor plans with manufacturers		(273.1	)		(188.4	)
Accounts payable, accrued expenses, customer deposits, and other current liabilities		16.0			5.1
Leases and other liabilities		(3.1	)		0.8
Net cash used in operating activities	$	(44.7	)	$	(4.0	)
INVESTING ACTIVITIES
Proceeds from the sale of assets		1.0			—
Expenditures for rental equipment		(34.5	)		(18.0	)
Expenditures for property and equipment		(4.0	)		(2.1	)
Expenditures for acquisitions, net of cash acquired		(128.8	)		(65.6	)
Net activity on notes and land contract receivable		—			0.1
Net cash used in investing activities	$	(166.3	)	$	(85.6	)
FINANCING ACTIVITIES
Expenditures for debt issuance costs		(2.7	)		(0.1	)
Extinguishment of floor plans and line of credit		(132.9	)		—
Extinguishment of long-term debt		(82.0	)		—
Redemption of former shareholder notes payable		(6.7	)		—
Extinguishment of warrant liability		(29.6	)		—
Proceeds from lines of credit		334.5			137.4
Payments under lines of credit		(187.1	)		(88.0	)
Proceeds from floor plans with unaffiliated source		63.5			81.4
Payments under floor plans with unaffiliated source		(61.3	)		(50.7	)
Proceeds from issuance of long-term debt, net		149.4			20.0
Payments on long-term debt		(4.8	)		(9.1	)
Payments on capital lease obligations		(0.6	)		(0.7	)
Equity proceeds from reverse recapitalization, net		175.7			—
Proceeds from disgorgement of short swing profits		1.6			—
Repurchases of common stock		(5.9	)		—
Net cash provided by financing activities	$	211.1		$	90.2
NET CHANGE IN CASH		0.1			0.6
Cash, Beginning of year		—			1.5
Cash, End of period	$	0.1		$	2.1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	26.0		$	9.7

	Nine months ended September 30,						Three months ended September 30,
(amounts in millions)	2020			2019			2020			2019
Net (loss) income	$	(20.8	)	$	(29.6	)	$	0.3		$	(27.4	)
Depreciation and amortization		51.6			34.9			21.0			14.4
Interest expense		17.7			15.1			6.1			5.6
Income tax benefit		(3.4	)		—			(1.9	)		—
EBITDA (1)	$	45.1		$	20.4		$	25.5		$	(7.4	)
Change in fair value of warrants (2)		—			28.3			—			28.3
One-Time Transaction Costs (3)		3.9			0.4			1.2			0.2
Loan Administration Fees (4)		0.3			0.3			0.1			—
Non-Cash Adjustments (5)		0.7			1.5			0.3			1.1
Loss on Debt Extinguishment (6)		7.6			—			—			—
Equity-linked Incentives (7)		9.8			—			3.2			—
Other expenses (8)		0.4			0.1			—			—
Insurance proceeds (9)		(8.0	)		—			(8.0	)		—
Showroom-Ready Floorplan Interest Expense (10)		(1.4	)		(1.6	)		(0.4	)		(0.5	)
Adjusted EBITDA (1)	$	58.4		$	49.4		$	21.9		$	21.7
Pro Forma EBITDA—Acquisitions (11)		6.9			27.1			0.5			7.3
Adjusted Pro Forma EBITDA (1)	$	65.3		$	76.5		$	22.4		$	29.0

(11) Pro forma EBITDA of NITCO, Flagler, Liftech, PeakLogix, Hilo and Martin for periods in 2019 and forward, assuming each was acquired as of January 1, 2019