Alta Equipment Group Inc.

Good afternoon. Thank you for attending today's ALTA Equipment Group fourth quarter 2021 earnings conference call. My name is Tania, and I will be your moderator for today's call. Our lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to our host, Jason Danmayer with ALTA Equipment Group. Please go ahead.

Thank you, Tamia. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alta's fourth quarter and full year 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 Greenwald, our Chairman and CEO, and Tony Colucci, our Chief Financial Officer. For today's call, management will first provide a review of the fourth quarter and full year 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 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 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, Jason. Good afternoon, everyone, and thank you for joining us today. Our strong fourth quarter capped off an outstanding year for Alta. We delivered record revenue, surpassing $1 billion in revenue, and delivered higher profitability in our first full year as a public company. We did this while navigating a challenging environment and continuing our investment strategy to scale our business for stronger growth in 2022 and beyond. On the call today, I will go through highlights from our financial results and update on the progress we made against our growth objectives before touching on M&A and our initiatives for the year ahead. I will then turn it over to Tony, who will provide a more detailed review of our financial results for the full year. The outperformance in the first nine months continued with record financial results that reflected the underlying strength of both the material handling and construction businesses, as well as the progress we made on our operations throughout the year in executing our strategic plan. Last year, we completed six acquisitions that added 152 million in revenue and 15.2 million in adjusted EBITDA. These acquisitions expanded our presence in key markets and brought our capabilities to new regions. We gained share in our new regions, particularly in our construction business in Florida, while also expanding into new geographic regions such as New York and Ohio that offer substantial growth opportunities. We added new OEM partners and expanded our relationships with existing ones, broadening our equipment portfolio and our end market diversification. We continued to grow our headcount of skilled technicians, ensuring our customers receive optimal product support and adding to our higher margin parts and service revenue streams. We expanded our presence in some of the fastest-growing end markets, like warehousing and logistics, with broadened and complementary service lines, such as warehouse automation, engineering and design services, and data management. We also strengthened our balance sheet following our successful debt restructuring in April. And lastly, and perhaps most excitingly, we entered the over-the-road vehicle market with the Nikola Agreement. We see this as a longer-term growth opportunity, that is in the very early stages and believe our proven abilities in product sales and support will drive commercial adoption of electric vehicles in our marketplace. All of this while driving organic revenue growth of nearly 10% for the year. It was a truly phenomenal year for Alta against the backdrop of a global pandemic and a historic supply chain disruption. We believe that our performance and the progress that we made in 2021 reflects the underlying strength of our business and positions us to drive meaningful scale going forward. And with that, we couldn't be more excited about the year ahead. We find ourselves in a strong operating environment and believe our key internal priorities and strategies are aligned with promising industry tailwinds. In our construction equipment segment, 2021 saw the strongest pricing gains in the company's history, an acceleration of both rental rates and rental fleet utilization reflective of continued robust customer equipment demand. We have continued to drive record sales backlog, and we are using the size and breadth of our rental fleet to support our customers in an environment of sustained tight supply. Increased fleet utilization has also driven significant demand for replacement parts and repair and maintenance services. In the material handling segment, supply chain disruptions and labor shortages are accelerating customer adoption of more sophisticated, cost-saving, and energy-efficient material handling solutions, including warehouse and logistical automation. Alta is well positioned for this growth opportunity, and we continue to look for attractive investment opportunities in this segment. The industrial truck market finished 2021 at a record level of over 300,000 unit deliveries, with over 70% of the market in electric trucks versus internal combustion engines. We are well positioned and will continue to benefit from this trend. Further, we believe our significant experience in supporting fleets of electrified industrial trucks Over the years, we'll give our customers the confidence to rely on Alta for new and emerging technologies, both in the material handling segment and in our new electric vehicle segment. The Nikola agreement puts us in an excellent position to be an EV truck market leader in the densest truck market in the country, the Northeast. To update on some of our recent progress, we have taken delivery of our first truck and have begun hosting product demonstrations. training technical support staff, and have begun working closely with Nikola on the distribution support strategy both in the Northeast, and more recently were granted Arizona, a high-growth market, and an important gateway to the West Coast for truck traffic, presenting a significant product support opportunity long-term. In looking at the current M&A landscape, we remain active and our pipeline remains robust. We have the firepower and brand awareness to continue to partner with quality companies and we're confident we will continue to hit our targets as we've done since becoming a public company a little more than two years ago. All this momentum has given us the confidence to set an adjusted EBITDA guidance range of 137 million to 142 million, which would be a 16% increase at the midpoint year over year. Lastly, I would like to quickly touch on something that I am personally very invested in, Alta's corporate citizenship. As a company, we strive every day to be the best corporate citizens that we can be, and are formalizing a plan that will outline this. Some of the key areas include our commitment to environmental sustainability, including a focused strategy to drive customer adoption and commercial viability of various electromobility solutions, our thoughtful diversity and inclusion policies, the safety of our employees and technicians, and the overall purposeful, dedicated, and inclusive culture that we have created and continue to develop with each day. These areas of the business are a top priority for ALTA, and we are excited that we will be able to share more about them in greater detail as we move forward through the year. In closing, we had a great 2021 that sets us up well for 2022 as we look to scale our business, deliver strong financial results, and drive long-term shareholder value. Thank you to the ALTA team once again for all your hard work in driving a momentous year for the company. I will now turn it over to Tony.