Alta Equipment Group Introduces Quarterly Common Stock Dividend and Share Repurchase Program
12 Juli 2022 - 1:00PM
Business Wire
Alta Equipment Group Inc. (NYSE: ALTG) (“Alta” or “the Company”)
today announced that its Board of Directors (“Board”) has initiated
a regular quarterly common stock dividend of $0.057 per share, or
approximately $0.23 per share on an annualized basis. The first
dividend will be payable on August 31st, 2022 to shareholders of
record as of August 15th, 2022. The Board also approved a $12.5
million share repurchase program.
“Over the last few months, we have been acutely focused on our
capital allocation policy given the current market conditions and
have consulted with numerous stakeholders. Since going public, we
have executed on our strategy and demonstrated the ability to
generate strong free cash flow in diverse economic and operating
conditions. Based on these discussions, our belief in the
flexibility of our business model, and the historical performance
of our business and outlook, the Board approved these
capital-related actions. While we believe strongly that the best
use of the majority of our cash flows continues to be our accretive
M&A pipeline, we also believe that the investments that we have
made since going public have taken the business to a level where it
is appropriate to provide a cash return to our valued shareholders.
In addition to the dividend, the share repurchase program will
provide us with a mechanism in place to purchase shares when the
market value is trading at a discount to the Company’s intrinsic
value and where that market value is attractive relative to other
uses of our cash flow,” said Ryan Greenawalt, Chief Executive
Officer of Alta. “We believe this is a very balanced and strategic
approach to capital allocation, which allows us to maintain
leverage at a reasonable level while continuing to pursue our
growth strategy including accretive acquisitions and high-return
organic opportunities. Our accretive M&A pipeline remains
robust as evidenced by our entering into an agreement to acquire
Yale Industrial Trucks, Inc. in Canada last week.”
The continuation of future cash dividends will be determined by
the Board, at its sole discretion, after review of the Company’s
financial performance and other factors, and is dependent on
earnings, operations, capital requirements, general financial
condition of the Company and general business conditions.
Repurchases of shares will be made in accordance with applicable
securities laws and may be made from time to time through solicited
or unsolicited transactions in the open market or by negotiated
transactions. The amount and timing of repurchases will be based on
a variety of factors, including stock acquisition price, regulatory
limitations and other market and economic factors. No limit was
placed on the duration of the repurchase program. The stock
repurchase program does not require the Company to repurchase any
specific number of shares, and the Company may terminate the
repurchase program at any time.
About Alta Equipment Group Inc.
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
material handling and construction equipment. Alta has operated as
an equipment dealership for 38 years and has developed a branch
network that includes over 60 total locations across Michigan,
Illinois, Indiana, New England, New York, Virginia, Florida, and
Ohio. 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.altg.com.
Forward Looking Statements
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220712005134/en/
Investors: Kevin Inda SCR Partners, LLC IR@altg.com (225)
772-0254
Media: Glenn Moore Alta Equipment glenn.moore@altg.com
(248) 305-2134
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