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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2022

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

ALTA EQUIPMENT GROUP INC.

(Exact name of registrant as specified in its charter)

 

Delaware

001-38864

83-2583782

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

13211 Merriman Road, Livonia, Michigan 48150

(Address of principal executive offices)

 

(248) 449-6700

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Large accelerated filer

 

Accelerated filer

 

 Non-accelerated filer

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, $0.0001 par value per share

 

ALTG

 

The New York Stock Exchange

Depositary Shares representing a 1/1000th fractional interest in a share of 10% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share

 

ALTG PRA

 

The New York Stock Exchange

 

As of August 5, 2022, there were 31,981,843 shares of Common Stock, $0.0001 par value, and 1,200 shares of Preferred Stock, $0.0001 par value, which Preferred Stock is evidenced by 1,200,000 depositary shares, outstanding.

 

 

 


 

INDEX

 

 

 

Page

PART I – FINANCIAL INFORMATION

Item 1.

Condensed Consolidated Interim Financial Statements (Unaudited)

3

 

Condensed Consolidated Balance Sheets (Unaudited)

3

 

Condensed Consolidated Statements of Income (Loss) (Unaudited)

4

 

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

5

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

6

 

Notes to Unaudited Condensed Consolidated Financial Statements

7

 

Note 1.

Organization and Nature of Operations

7

 

Note 2.

Summary of Significant Accounting Policies

7

 

Note 3.

Revenue Recognition

8

 

Note 4.

Related Party Transactions

10

 

Note 5.

Inventories

11

 

Note 6.

Property and Equipment

11

 

Note 7.

Goodwill

12

 

Note 8.

Other Intangible Assets

12

 

Note 9.

Lines of Credit and Floor Plans

12

 

Note 10.

Long-Term Debt

13

 

Note 11.

Leases

14

 

Note 12.

Contingencies

16

 

Note 13.

Income Taxes

16

 

Note 14.

Equity

17

 

Note 15.

Share-Based Compensation

18

 

Note 16.

Fair Value Instruments

19

 

Note 17.

Business Combinations

20

 

Note 18.

Segments

20

 

Note 19.

Earnings Per Share

22

 

Note 20.

Subsequent Events

22

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

PART II

Item 1.

Legal Proceedings

39

Item 1A.

Risk Factors

39

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

39

Item 3.

Defaults Upon Senior Securities

39

Item 4.

Mine Safety Disclosures

39

Item 5.

Other Information

39

Item 6.

Exhibits

39

Signature

 

42

 

 

1


 

Forward-Looking Statements

This Form 10-Q contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of federal securities laws, and are based on our current expectations and assumptions. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. The words “anticipates,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predicts,” “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. These statements are not intended to guarantee future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:

the impact of the COVID-19 outbreak or future epidemics on our business, including the potential for facility closures or work stoppages, supply chain disruptions, inflationary pressures resulting from supply chain disruptions or a tightening labor market, negative impacts on customer payment policies and adverse banking and governmental regulations, resulting in a potential reduction to the fair value of our assets;
federal, state, and local budget uncertainty, especially as it relates to infrastructure projects;
the performance and financial viability of key suppliers, contractors, customers, and financing sources;
economic, industry, business and political conditions including their effects on governmental policy and government actions that disrupt our supply chain or sales channels;
our success in identifying acquisition targets and integrating acquisitions;
our ability to successfully, or profitably, launch the commercial electric vehicle business;
our success in expanding into and doing business in additional markets;
our ability to raise capital at favorable terms;
the competitive environment for our products and services;
our ability to continue to innovate and develop new business lines;
our ability to attract and retain key personnel, including, but not limited to, skilled technicians;
our ability to maintain our listing on the New York Stock Exchange;
the impact of cyber or other security threats or other disruptions to our businesses;
our ability to realize the anticipated benefits of acquisitions or divestitures, rental fleet investments or internal reorganizations;
federal, state, and local budget uncertainty, especially as it relates to infrastructure projects; and
other risks and uncertainties identified 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”).

These are only some of the factors that may affect the forward-looking statements contained in this Form 10-Q. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see our filings with the SEC including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, and in this Quarterly Report on Form 10-Q. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.

2


 

PART I

Item 1. Financial Statements

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except share and per share amounts)

 

June 30,
2022

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash

 

$

0.5

 

 

$

2.3

 

Accounts receivable, net of allowances of $11.8 and $10.7 as of June 30, 2022 and December 31, 2021, respectively

 

 

211.2

 

 

 

182.7

 

Inventories, net

 

 

296.6

 

 

 

239.2

 

Prepaid expenses and other current assets

 

 

30.4

 

 

 

24.4

 

Total current assets

 

$

538.7

 

 

$

448.6

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

346.7

 

 

 

344.5

 

Operating lease right-of-use assets, net

 

 

98.2

 

 

 

102.6

 

OTHER ASSETS

 

 

 

 

 

 

Goodwill

 

$

44.1

 

 

$

41.9

 

Other intangible assets, net

 

 

40.4

 

 

 

43.4

 

Other assets

 

 

3.0

 

 

 

1.6

 

Total other assets

 

$

87.5

 

 

$

86.9

 

TOTAL ASSETS

 

$

1,071.1

 

 

$

982.6

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Lines of credit, net

 

$

123.6

 

 

$

98.4

 

Floor plan payable – new equipment

 

 

151.7

 

 

 

114.2

 

Floor plan payable – used and rental equipment

 

 

46.9

 

 

 

40.6

 

Current portion of long-term debt

 

 

3.1

 

 

 

2.6

 

Accounts payable

 

 

77.4

 

 

 

73.5

 

Customer deposits

 

 

21.3

 

 

 

16.7

 

Accrued expenses

 

 

41.3

 

 

 

39.3

 

Current operating lease liabilities

 

 

16.3

 

 

 

16.2

 

Other current liabilities

 

 

25.0

 

 

 

19.1

 

Total current liabilities

 

$

506.6

 

 

$

420.6

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

310.4

 

 

 

310.0

 

Finance lease obligations, net of current portion

 

 

11.9

 

 

 

9.0

 

Deferred revenue, net of current portion

 

 

3.6

 

 

 

4.2

 

Guaranteed purchase obligations, net of current portion

 

 

4.2

 

 

 

5.2

 

Long-term operating lease liabilities, net of current portion

 

 

84.9

 

 

 

88.4

 

Deferred tax liability

 

 

6.9

 

 

 

6.9

 

Other liabilities

 

 

3.4

 

 

 

3.6

 

TOTAL LIABILITIES

 

$

931.9

 

 

$

847.9

 

CONTINGENCIES - NOTE 12

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 1,000,000 shares authorized, 1,200,000 Depositary Shares representing a 1/1000th fractional interest in a share of 10% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share, issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

$

 

 

$

 

Common stock, $0.0001 par value, 200,000,000 shares authorized; 31,981,843 and 32,363,376 issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

218.5

 

 

 

217.4

 

Treasury stock at cost, 862,182 and 390,000 shares of common stock held at June 30, 2022 and December 31, 2021, respectively

 

 

(5.9

)

 

 

(5.9

)

Accumulated deficit

 

 

(73.4

)

 

 

(76.8

)

TOTAL STOCKHOLDERS’ EQUITY

 

$

139.2

 

 

$

134.7

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,071.1

 

 

$

982.6

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(in millions, except share and per share amounts)

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

New and used equipment sales

$

217.3

 

 

$

132.0

 

 

$

368.9

 

 

$

255.8

 

Parts sales

 

58.3

 

 

 

44.1

 

 

 

111.7

 

 

 

85.5

 

Service revenue

 

51.7

 

 

 

42.4

 

 

 

99.9

 

 

 

81.1

 

Rental revenue

 

43.6

 

 

 

38.2

 

 

 

81.3

 

 

 

71.3

 

Rental equipment sales

 

35.6

 

 

 

36.0

 

 

 

76.4

 

 

 

67.8

 

Total revenues

$

406.5

 

 

$

292.7

 

 

$

738.2

 

 

$

561.5

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

New and used equipment sales

 

182.2

 

 

 

112.5

 

 

 

306.1

 

 

 

219.0

 

Parts sales

 

40.0

 

 

 

30.6

 

 

 

76.7

 

 

 

59.3

 

Service revenue

 

21.9

 

 

 

16.4

 

 

 

42.0

 

 

 

30.9

 

Rental revenue

 

5.4

 

 

 

5.2

 

 

 

10.8

 

 

 

10.7

 

Rental depreciation

 

23.3

 

 

 

21.3

 

 

 

43.6

 

 

 

40.7

 

Rental equipment sales

 

27.9

 

 

 

29.8

 

 

 

61.8

 

 

 

56.7

 

Cost of revenues

$

300.7

 

 

$

215.8

 

 

$

541.0

 

 

$

417.3

 

Gross profit

$

105.8

 

 

$

76.9

 

 

$

197.2

 

 

$

144.2

 

General and administrative expenses

 

88.8

 

 

 

71.1

 

 

 

171.7

 

 

 

135.9

 

Depreciation and amortization expense

 

4.0

 

 

 

2.6

 

 

 

7.9

 

 

 

4.6

 

Total general and administrative expenses

 

92.8

 

 

 

73.7

 

 

 

179.6

 

 

 

140.5

 

Income from operations

$

13.0

 

 

$

3.2

 

 

$

17.6

 

 

$

3.7

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

Interest expense, floor plan payable – new equipment

 

(0.5

)

 

 

(0.5

)

 

 

(0.8

)

 

 

(1.0

)

Interest expense – other

 

(6.3

)

 

 

(5.5

)

 

 

(12.1

)

 

 

(10.8

)

Other income

 

0.4

 

 

 

 

 

 

0.7

 

 

 

0.1

 

Loss on extinguishment of debt

 

 

 

 

(11.9

)

 

 

 

 

 

(11.9

)

Total other expense

$

(6.4

)

 

$

(17.9

)

 

$

(12.2

)

 

$

(23.6

)

Income (loss) before taxes

$

6.6

 

 

$

(14.7

)

 

$

5.4

 

 

$

(19.9

)

Income tax provision

 

0.5

 

 

 

 

 

 

0.5

 

 

 

0.5

 

Net income (loss)

$

6.1

 

 

$

(14.7

)

 

$

4.9

 

 

$

(20.4

)

Preferred stock dividends

 

(0.7

)

 

 

(1.1

)

 

 

(1.5

)

 

 

(1.1

)

Net income (loss) available to common shareholders

$

5.4

 

 

$

(15.8

)

 

$

3.4

 

 

$

(21.5

)

Basic income (loss) per share

$

0.17

 

 

$

(0.49

)

 

$

0.11

 

 

$

(0.69

)

Diluted income (loss) per share

$

0.17

 

 

$

(0.49

)

 

$

0.11

 

 

$

(0.69

)

Basic weighted average common shares outstanding

 

31,933,032

 

 

 

32,403,151

 

 

 

32,147,015

 

 

 

31,204,239

 

Diluted weighted average common shares outstanding

 

32,151,512

 

 

 

32,553,526

 

 

 

32,367,810

 

 

 

31,344,518

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4


 

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

 

 

Three and Six Months Ended June 30, 2022

 

 

 

Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

(amounts in millions, except share amounts)

 

Number
of Shares

 

 

Amount

 

 

Number of
Shares

 

 

Amount

 

 

Additional
Paid-in
Capital

 

 

Accumulated
Deficit

 

 

Treasury Stock

 

 

Total
Stockholders'
Equity

 

Balance at December 31, 2021

 

 

1,200,000

 

 

$

 

 

 

32,363,376

 

 

$

 

 

$

217.4

 

 

$

(76.8

)

 

$

(5.9

)

 

$

134.7

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.2

)

 

 

 

 

 

(1.2

)

Dividends on preferred stock, $0.625 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.8

)

 

 

 

 

 

(0.8

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

0.3

 

Balance at March 31, 2022

 

 

1,200,000

 

 

$

 

 

 

32,363,376

 

 

$

 

 

$

217.7

 

 

$

(78.8

)

 

$

(5.9

)

 

$

133.0

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.1

 

 

 

 

 

 

6.1

 

Dividends on preferred stock, $0.625 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.7

)

 

 

 

 

 

(0.7

)

Share-based compensation

 

 

 

 

 

 

 

 

90,649

 

 

 

 

 

 

0.8

 

 

 

 

 

 

 

 

 

0.8

 

Repurchase of common stock (1)

 

 

 

 

 

 

 

 

(472,182

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

 

 

1,200,000

 

 

$

 

 

 

31,981,843

 

 

$

 

 

$

218.5

 

 

$

(73.4

)

 

$

(5.9

)

 

$

139.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three and Six Months Ended June 30, 2021

 

 

 

Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

(amounts in millions, except share amounts)

 

Number
of Shares

 

 

Amount

 

 

Number of
Shares

 

 

Amount

 

 

Additional
Paid-in
Capital

 

 

Accumulated
Deficit

 

 

Treasury Stock

 

 

Total
Stockholders'
Equity

 

Balance at December 31, 2020

 

 

1,200,000

 

 

$

 

 

 

30,018,502

 

 

$

 

 

$

216.2

 

 

$

(53.4

)

 

$

(5.9

)

 

$

156.9

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5.7

)

 

 

 

 

 

(5.7

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

0.3

 

Balance at March 31, 2021

 

 

1,200,000

 

 

$

 

 

 

30,018,502

 

 

$

 

 

$

216.5

 

 

$

(59.1

)

 

$

(5.9

)

 

$

151.5

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14.7

)

 

 

 

 

 

(14.7

)

Dividends on preferred stock, $0.890 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.1

)

 

 

 

 

 

(1.1

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.2

 

Warrants exchanged into common stock

 

 

 

 

 

 

 

 

2,279,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of restricted stock units to employees

 

 

 

 

 

 

 

 

65,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2021

 

 

1,200,000

 

 

$

 

 

 

32,363,376

 

 

$

 

 

$

216.7

 

 

$

(74.9

)

 

$

(5.9

)

 

$

135.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Correction of previously disclosed shares repurchased in 2020, not previously reported as a reduction of common stock shares outstanding. Amount is immaterial to the condensed consolidated financial statements.

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


 

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Six Months Ended June 30,

 

(amounts in millions)

 

2022

 

 

2021

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income (loss)

 

$

4.9

 

 

$

(20.4

)

Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

51.5

 

 

 

45.3

 

Amortization of debt discount and debt issuance costs

 

 

0.7

 

 

 

0.8

 

Imputed interest

 

 

0.1

 

 

 

0.2

 

Gain on sale of property and equipment

 

 

(0.1

)

 

 

 

Gain on sale of rental equipment

 

 

(14.6

)

 

 

(11.1

)

Provision for inventory obsolescence

 

 

1.9

 

 

 

0.4

 

Provision for bad debt

 

 

2.4

 

 

 

2.3

 

Loss on debt extinguishment

 

 

 

 

 

11.9

 

Share-based compensation expense

 

 

1.1

 

 

 

0.5

 

Changes in deferred income taxes

 

 

 

 

 

0.5

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

(30.7

)

 

 

(18.6

)

Inventories

 

 

(131.7

)

 

 

(85.6

)

Proceeds from sale of rental equipment

 

 

76.4

 

 

 

67.8

 

Prepaid expenses and other assets

 

 

(7.3

)

 

 

(8.2

)

Manufacturers floor plans payable

 

 

31.7

 

 

 

6.0

 

Accounts payable, accrued expenses, customer deposits, and other current liabilities

 

 

16.7

 

 

 

19.2

 

Leases, deferred revenue, and other liabilities

 

 

0.4

 

 

 

(0.8

)

Net cash provided by operating activities

 

$

3.4

 

 

$

10.2

 

INVESTING ACTIVITIES

 

 

 

 

 

 

Expenditures for rental equipment

 

$

(30.3

)

 

$

(22.8

)

Expenditures for property and equipment

 

 

(4.2

)

 

 

(3.3

)

Proceeds from sale of property and equipment

 

 

0.3

 

 

 

1.1

 

Expenditures for guaranteed purchase obligations

 

 

(1.7

)

 

 

(1.2

)

Expenditures for acquisitions, net of cash acquired

 

 

(1.5

)

 

 

(2.6

)

Net cash used in investing activities

 

$

(37.4

)

 

$

(28.8

)

FINANCING ACTIVITIES

 

 

 

 

 

 

Expenditures for debt issuance costs

 

$

 

 

$

(1.6

)

Extinguishment of long-term debt

 

 

 

 

 

(153.1

)

Proceeds from lines of credit and long-term borrowings

 

 

166.7

 

 

 

488.3

 

Principal payments on lines of credit, long-term debt and finance lease obligations

 

 

(143.4

)

 

 

(306.9

)

Proceeds from floor plan payable with unaffiliated source

 

 

64.6

 

 

 

52.3

 

Payments on floor plan payable with unaffiliated source

 

 

(52.5

)

 

 

(57.7

)

Preferred dividends paid

 

 

(1.5

)

 

 

(1.1

)

Payment of promissory note

 

 

 

 

 

(1.0

)

Other financing activities

 

 

(1.7

)

 

 

 

Net cash provided by financing activities

 

$

32.2

 

 

$

19.2

 

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

(1.8

)

 

 

0.6

 

 

 

 

 

 

 

 

Cash, Beginning of year

 

 

2.3

 

 

 

1.2

 

Cash, End of period

 

$

0.5

 

 

$

1.8

 

Supplemental schedule of noncash investing and financing activities:

 

 

 

 

 

 

Noncash asset purchases:

 

 

 

 

 

 

Net transfer of assets from inventory to rental fleet within property and equipment

 

$

69.9

 

 

$

86.3

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

Cash paid for interest

 

$

11.9

 

 

$

8.3

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

6


 

NOTE 1 — ORGANIZATION AND NATURE OF OPERATIONS

Nature of Operations

Alta Equipment Group Inc. and its subsidiaries (“Alta” or the “Company”) is engaged in the sale, service, and rental of material handling and construction equipment in the states of Michigan, Illinois, Indiana, Ohio, New York (including New York City in our Material Handling segment), Virginia, Massachusetts (including Boston), Maine, New Hampshire, Connecticut, and Florida.

Unless the context otherwise requires, the use of the terms “the Company”, “we,” “us,” and “our” in these notes to the unaudited condensed consolidated financial statements refers to Alta Equipment Group Inc. and its consolidated subsidiaries.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements include the consolidated accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions and balances have been eliminated in the preparation of the condensed consolidated financial statements.

Reclassification and correction

Certain amounts in the prior year Condensed Consolidated Statement of Cash Flows have been reclassified to conform with the presentation in the current year. For the six months ended June 30, 2021, the Company corrected the cash flow presentation of expenditures of $1.2 million for guaranteed purchase obligations to present this activity as a cash outflow for investing activities, which was previously presented within operating activities. The presentation for the six months ended June 30, 2021 has been revised to align with current period presentation. The Company has concluded the change is not material.

The unaudited interim condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. Operating results for the six months ended June 30, 2022 is not necessarily indicative of the results that may be expected for the year ending December 31, 2022, and therefore, the results and trends in these unaudited interim condensed consolidated financial statements may not be the same for the entire year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s 2021 Annual Report on Form 10-K.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

We describe our significant