Alta Equipment Group Inc.

Good afternoon, and thank you for attending the Alta Equipment Group's second quarter 2022 earnings conference call. My name is Kellyanne. I'll be your moderator for today's call. I would now like to turn the conference over to Jason Dammeier, Director of SEC Reporting and Technical Accounting with Alta Equipment Group. Please go ahead, sir.

Thank you, Kellyanne. Good afternoon, everyone, and thank you for joining us today. A press release detailing ALTA's second quarter 2022 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 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 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. I will discuss our record second quarter financial highlights, the continuing momentum in our business, and favorable market conditions. And lastly, I will provide an update regarding the solid execution upon our growth strategy, including our recent transaction with YIT in Canada, the M&A environment going forward, and our recent changes to our capital allocation policy. Tony Colucci will then provide a more in-depth review of our second quarter results. Beginning with the top line, we reported record total net revenues of $406.5 million, an increase of 38.9%, or $113.8 million, compared with $292.7 million in the second quarter of last year. The increase was driven by both organic and acquisition-related growth. and the ongoing strong demand in our end user markets, which I will address shortly. All our business segments delivered better results from the year-ago quarter. We are especially pleased that we reported positive net income for the quarter, and we are increasing our adjusted EBITDA expectations for the year, as Tony will discuss in his comments. Despite the headline news, concerns over a possible recession, and the economy in general, all our end user markets remain solid. Our visibility through the end of the year is positive and while we monitor all the key industry indicators which remain favorable, we believe the best measure is customer sentiment. Our team stays in close touch with our customers and their feedback implies demand is healthy and broad-based throughout all our operating regions and business segments. Demand for both new and used equipment continues to be at high levels and sales backlogs remain at record levels. Our organic physical rental fleet utilization and rates on rental equipment continue to improve and tightness of supply continues to buoy inventory values across all asset classes. Further, the industry tailwinds remain, with the passing of the bipartisan infrastructure bill specifically driving further demand for construction machinery in 2023 and beyond. In our material handling segment, labor tightness and inflation are driving the adoption of more advanced and automated solutions, while also driving the market for industrial trucks to record levels. Let me now make a few remarks regarding the success of our multi-pronged growth strategy, which is clearly a large driver of our positive financial performance. M&A continues to be a key leg of our strategy. After quarter end, we entered into a definitive agreement to acquire Yale Industrial Trucks, Inc., a privately held Yale lift truck dealer with five locations in southeastern Canada. This transaction was consistent with our strategy to increase the scale of our business and will establish a presence for Alta in an international market for the first time. Prior to our acquisition of YIT, ALTA's market territory was annualizing for deliveries of over 50,000 industrial trucks. With the expansion into Ontario and Quebec, ALTA's expanded territory accounts for annualized deliveries of over 70,000 units, an increase to our market coverage area of 40%. Our newly expanded territory has consistently represented approximately 20% of the North American market for industrial trucks, excluding Mexico. The Canadian market will also generate significant organic expansion opportunities as we look to build out our portfolio of complementary products and services, including integrated warehousing and logistics systems, dock and door services, and emerging technologies. Sales synergies and capturing customer wallet share through the breadth and diversity of our product portfolio is another major leg of our growth strategy. new and increasingly specialized and niche products at end market diversification and enhanced opportunities for cross-selling equipment and product support services. We have a recent example of a new customer relationship in New York where an entire suite of material handling products was deployed to deliver an end-to-end material handling solution, including several categories of stand-up and counterbalance lift trucks, telematic solutions for fleet management, state-of-the-art lithium ion batteries with charging infrastructure, and a full implementation of warehouse management and storage solutions. Lastly, our opportunity in the electric vehicle segment continues to gain momentum with ongoing product demonstrations, and we have identified several tangential service areas for growth, including consulting and integration of charging and refueling infrastructure. While the opportunity in this segment is nascent, we believe we are uniquely capable of helping our customers reduce the carbon footprint of their transportation and material handling activities. And further, we believe that from a regional and end market perspective, we are positioned to serve the early adopters of truck electrification. As we have demonstrated, we remain focused on executing on our growth strategy, including accretive M&A and improving operational excellence throughout our entire organization. To summarize, we are encouraged about our strong financial performance and believe our results demonstrate the success of our strategic growth initiatives. Tony will now provide more detail on our enhanced capital structure, but the key takeaway is our balance sheet is solid and will support further M&A activity as well as our new capital allocation policy, which includes paying a regular quarterly dividend and a share repurchase program. I would like to thank all ALTA team members for their contributions to a strong second quarter, and I would also like to extend a warm welcome to our new Canadian team members. I'll now turn the call over to Tony.