Alta Equipment Group Inc.

Good day and thank you for standing by and welcome to the Alta Equipment Group third 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 your speaker today, Jason Demeyer, Director. Please go ahead.

Thank you, Celine. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alta's third 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 third 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 risks, uncertainties and assumptions, including those related to altered 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 operation. 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, Jason, and welcome everyone to our third quarter 2021 earnings call. On the call today, I will provide highlights on the quarter, give an overview of the persisting industry dynamics, and discuss the progress we've made on our strategic growth opportunities. Tony will then go into more detail on the financials. We had a great quarter. Net revenues increased 33.7% year-over-year to $295 million, with adjusted EBITDA growth of 43.4% to $31.4 million. And high-margin product support revenue, including parts and service sales, grew 22.1% in the third quarter. Drivers in the quarter included the current favorable market dynamics, outperformances in our New England, upstate, New York, and Florida regions, the fourth consecutive quarter of above average equipment sales, which will help to drive future product support opportunities, increased rental revenue driven by supply chain constraints, continued strength in our construction segment, strong growth in product support, and the initial benefits of the recent ERP integration, which transitioned our acquired businesses onto a centralized platform, driving synergies, creating cross-selling opportunities, and streamlining operations. On the labor front, productivity remained at benchmark levels, driven by robust service demand. To meet this demand, we have continued to hire technicians. Looking ahead, we continue to recruit aggressively. We've hired additional recruiting support staff and are currently recruiting across all geographies. Third quarter market conditions led to strong demand for new and used equipment, increased rental fleet utilization, and a growing need for replacement parts and services. Altra remains well positioned to take advantage of the current price appreciation and high rental and labor rates to drive growth across all markets. The breadth and diversity of our equipment portfolio, our extensive inventory and rental fleet, and our best-in-class service and parts business give us a meaningful competitive advantage. These capabilities will allow us to meet customer demand, and provide a workaround for supply constraints while driving current demand, new customer growth, and long-term value in the business. We also made progress on our long-term strategic opportunities. PeakLogix continued to add to its record backlog while attracting new customers. We plan to leverage this business strategically across our enterprise as we seek opportunities to expand our relationships and cross-sell equipment to these customers. We are excited about this business's trajectory and see a great deal of opportunity, especially since supply chain constraints have emphasized the need for updated and streamlined warehousing and logistics solutions. Our e-mobility initiative continued to progress, led by our agreement with Nikola Motors to exclusively sell and service Nikola Class 8 trucks in the New York, New Jersey, Eastern Pennsylvania, and New England markets. We expect the Nikola trucks will begin rolling out in the first half of 2022, and we have been planning on all fronts to assure we are prepared to meet the growing demand within the EV space, delivering our exceptional service to Nikola customers. Stay tuned. In October, we successfully held our Innovate 21 event at Gillette Stadium, which brought together 500 customers, guests, manufacturing partners, and team members. The event showcased the most recent innovations in our material handling business, including the latest in integration and automation from Peak Logics. The highlight of this successful event was the Nikola Trey Bev vehicle, the first product offering of our commercial electric vehicle business that will complement our construction and material handling segments. Additionally, we recently announced two acquisition targets that align our accretive and strategic M&A criteria and growth strategy. In early September, we acquired Baron Industries, a dock-and-door company that services the New England market. The addition of this strategic acquisition increases our warehousing and logistics capabilities and complements our PeakLogix business, expanding our full-service materials handling offering in a growing market. We also acquired Gibson Machinery, a premier equipment distributor based near Cleveland that marks our first location in Ohio as we continue to expand our construction equipment geography and the breadth of our early on relationships. Both of these acquisitions support key growth areas of our growth strategy, including expanding our geographic reach with an increasingly wider group of manufacturers, providing quality service from our skilled technical workforce, expanding capabilities, and driving innovation within our strategic initiatives. Our plight point remains active as we continue to search for a creative deal that will help drive and support our growth strategy and long-term value. Our continued progress in the third quarter is carrying momentum into the end of 2021. Looking ahead, we believe ALTA is well positioned for continued success. We have grown each segment of our business, added skilled technicians, further diversified into a new vertical and drove continued momentum in the warehousing and logistics business. Additionally, we have integrated the acquisitions we have made since becoming public. And we did all of this while remaining in an enviable financial position with a solid balance sheet. As we move into 2022 and beyond, we have an eye toward the long-term vision of the company. We believe we are well positioned relative to the future and the past. So what do we mean by that? We can take care of the path through our construction segment, which rebuilds roads and bridges as our country gears up for one of the biggest infrastructure updates in its history. And as we look to the future, our EV and sustainability initiatives have positioned us for continued future growth in a large addressable market. The most exciting part is that we are already seeing such strong demand that any infrastructure legislation will only bolster demand in our core markets. So to wrap up, we are confident in our outlook and are looking forward to finishing the year with solid momentum with an eye towards the future as we remain focused on driving long-term shareholder value in 2022 and beyond. Lastly, I would like to thank the Alta team members once again for all of their hard work in making this a world-class company. I will now turn the call over to Tony to discuss our third quarter financial results. Tony?