Alta Equipment Group Inc.

Good day and thank you for standing by and welcome to the ALTA Equipment Group second quarter 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to our speaker today. Andrew Randall, Director of Finance. Please go ahead.

Thank you, Celine. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alta's second quarter 2021 financial results was issued this afternoon and is posted on our website along with a presentation designed to assist you in understanding the company's results. On the call with me today are Ryan Greenewalt, our Chairman and CEO, and Tony Colucci, our Chief Financial Officer. For today's call, management will first provide a review of the second quarter financial results. We will begin with some prepared remarks before we open the call for your questions. Before we get started, I'd like to remind everyone that this conference call may contain certain forward-looking statements, including statements about future financial results, our business strategy and financial outlook, achievements of the company, and other non-historical statements as described in our press release. These forward-looking statements are subject to both known and unknown risk uncertainties, and assumptions, including those related to ALTA's growth, market opportunities, and general economic and business conditions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that occur after this call. Descriptions of these and other risks that could cause actual results to differ materially from these forward-looking statements are discussed in our reports filed with the SEC, including our press release that was issued today. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's press release and can be found on our website at investors.altaequipment.com. I will now turn the call over to Ryan.

Thank you, Andrew, and welcome everyone to our second quarter 2021 conference call. I'll provide highlights from the quarter and then turn the call over to Tony for a review of the financial results. The second quarter showed a continuation of positive industry trends and a business environment favorable for both our material handling and construction equipment verticals. Our results for the first half of the year, combined with record backlog in both our material handling and construction businesses, strengthen our confidence in the growth opportunities ahead and our full-year outlook. Customer demand increased each month throughout the second quarter while new equipment supply constraints persisted and lead times extended for deliveries of new equipment. These market conditions are helping to drive increases in our rental fleet utilization as well as demand for our replacement parts and services. The supply-demand imbalance is also driving price appreciation of new and used equipment and increased rental rates. Alta is utilizing the breadth of our equipment brand portfolio and extensive inventory and rental fleet to satisfy customer demand and win new customers. Equipment sales were higher than our internal plan for the third consecutive quarter, which supports our core growth strategy of populating our coverage area with equipment in order to provide parts and service over the intermediate and longer term. For those who followed the ALTA story, and as I've said in the past, our growth strategy is built around populating the geographic regions we serve with equipment from an increasingly wider group of manufacturers and then providing quality service from our skilled technical workforce. This strategy drove our product support business up 53% this quarter. Now turning to key financial highlights. Revenue was $292.7 million and adjusted EBITDA came in at $28 million for the quarter. Our construction segment, which is our growth engine, had an exceptional quarter and generated strong organic growth of 37.2%. Our material handling segment, which is our more mature business, grew organically 7.7% amid supply chain constraints. I also want to highlight that our product support grew organically more than 30% over last year's second quarter, another proof point that we are fully recovered from the impact of COVID. Geographically, we saw continued strength from Florida in our construction segment overall and are beginning to see some positive trends out of the New York region, which was acquired last December. Additionally, equipment sales from our used and rental fleets were at all-time highs, and as I mentioned, rental fleet utilization continues to climb. Our labor productivity remains strong, and we have been actively recruiting in every market we serve, adding nearly 160 technicians from this time a year ago. In the quarter, we also completed the full integration of several acquisitions we made during 2020, Flagler, Hylo, and Left Tech, onto our ERP platform. This brought another $300 million of revenue onto our platform in the quarter and fully integrates our systems to drive both top and bottom line synergies across our enterprise. Tony will go into a bit more detail on this in his remarks. Additionally, we continue to make significant progress on our corporate development initiatives that position us well for long-term growth. Earlier this week, we announced the formal launch of our e-mobility strategy with our agreement with Nikola Motors, a designer and manufacturer of heavy-duty commercial battery electric vehicles and fuel cell electric vehicles. This agreement will provide Alta with exclusive rights to sell and service Nikola Long Haul Class 8 trucks in the New York, New Jersey, Eastern Pennsylvania, and New England markets. As you know, the EV market is in its early stages and is experiencing significant growth. We view this initiative as a natural extension of the operational expertise we have built in the material handling segment and construction markets over the years. We also believe it aligns well with our long-term strategy as we aim to diversify our business into high-growth industries with exclusive territories anchored by premier partners. We plan to leverage our existing footprint and deep knowledge in electromobility to meet this growing demand and deliver world-class service to Nikola customers. Not only are we excited about this partnership from a business opportunity, But this also aligns with our ESG principles in helping to reduce emissions and drive environmental sustainability. We also continue to build on the great success we've been experiencing from our logistics and warehousing solutions group. Since acquiring PeakLogix roughly one year ago, we have seen a significant increase in the number of opportunities we've had to help our customer base reduce their facility costs, increase throughput, improve productivity, and gain efficiencies in their warehousing process. PeakLogix currently has a record backlog and has seen significant demand from customers for the implementation of innovative technologies like automation and robotics to help streamline operations. This unique capability has also helped us to broaden our scope with a full-service solution and increase sell-through opportunities, expanding our ability to win new business and drive growth in our customer base. We also recently entered a partnership with a small robotics company to enhance our capabilities in this space. We believe that partnership complements our warehouse automation and software solution capabilities and supports the growing demand for robotics and automation in the material handling space. PeakLogix remains one of our most exciting growth opportunities. On the M&A front, our pipeline remains strong and we continue to be in active discussions with other equipment dealers in both our construction and material handling businesses. The operational improvements we made in 2020 to mitigate the impact of the pandemic are driving scale and improved profitability. These strategic actions, combined with a significantly improved operating environment and strong macro tailwinds, position us well this year and beyond. We remain well capitalized and are primed to take advantage of targeted acquisition opportunities that drive long-term growth. We also have several longer-term strategic opportunities on the horizon, including continued expansion within the warehousing and logistics space and our entry into the commercial vehicle sector, both of which provide extremely high growth potential and strategic alignment with our customer demand. Lastly, we could not have done any of this without the hard work, dedication, and resiliency of the ALTA team members. Thank you. I will now turn the call over to Tony to discuss our second quarter financial results. Tony?