Alta Equipment Group Inc.: Form 10-Q for the period ended Sep 30, 2024
Filed with the SEC on Nov 12, 2024 and accepted by EDGAR at Nov 12, 2024, 21:16 ET.
Management's discussion and analysis
As filed, 72,400 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
The following discussion and analysis should be read in conjunction with our interim unaudited condensed consolidated financial statements and related notes included in Item 1 of Part I of this Quarterly Report, and the audited consolidated financial statements and related notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. This discussion contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 reflecting Alta’s current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. Factors that could cause or contribute to such differences include, but are not limited to, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this Quarterly Report on Form 10-Q, particularly in “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements,” all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. Alta assumes no obligation to update any of these forward-looking statements.
Business Description
We own and operate one of the largest integrated equipment dealership platforms in North America. Through our branch network, we sell, rent, and provide parts and service support for several categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, other construction equipment and allied products. We engage in five principal business activities in these equipment categories:
(i) new and used equipment sales;
(ii) parts sales;
(iii) repair and maintenance services;
(iv) equipment rentals and
(v) rental equipment sales.
We have operated as an equipment dealership for 40 years and have developed a branch network that includes over 85 total locations in Michigan, Illinois, Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada and Florida and the Canadian provinces of Ontario and Quebec. We offer our customers end-to-end solutions for their equipment needs by providing sales, parts, service and rental offerings. Additionally, we provide warehouse design and build services related to automated equipment installation and warehouse management system integration solutions within our Material Handling segment.
Within our territories, we are primarily the exclusive distributor of new equipment and replacement parts on behalf of our OEM partners. We and our regional subsidiaries enjoy long-standing relationships with leading material handling and construction equipment OEMs including Hyster-Yale, Volvo, JCB, CNH, Develon, McCloskey, and Kubota, among many others, as well as master dealer rights throughout North America for environmental processing equipment with Doppstadt and Backers, among others. We are consistently recognized by OEMs as a top dealership partner and have been identified as an internationally recognized Hyster-Yale dealer and multi-year recipient of the Volvo Dealer of the Year award. More recently, given the Company’s successful history with electrified forklifts, battery charging, and power generation as well as our material handling customer base, where customers typically employ large fleets of commercial over-the-road vehicles in their day-to-day operations, we are pursuing a strategy focused on the distribution and powering of commercial electric vehicles in the over-the-road vehicle segment. While our electromobility (“e-mobility”) business, and the industry in general, is in its early stages of development, we believe that our first-mover advantage and expertise in this emerging market represents an exciting future growth opportunity.
We are committed to providing our customers with a best-in-class equipment dealership experience. Our customers are principally focused on equipment reliability and uptime, and our teams of skilled technicians and commitment to service are key to establishing and maintaining long-term customer relationships, representing a critical competitive advantage for the Company. Parts and service are also our most predictable and profitable businesses, with the dealership model structured to drive aftermarket parts and service revenues. Through our new and used equipment sales and our sale of lightly used rental fleet, we populate our exclusive territories with serviceable equipment. As the field population ages, we capitalize on aftermarket parts and service sales through the equipment maintenance cycle.
Growth Strategy
Our growth strategy is multifaceted and primarily predicated on making strategic acquisitions that expand our geographic reach, broaden our capabilities and service offerings, and diversify our customer and supplier bases. We believe these acquisitions, both immediately and over the long term, will be accretive to our financial performance. Recent examples of strategic acquisitions were the Ault and Burris acquisitions that closed in late 2023.
In addition to strategic acquisitions, we intend to leverage our platform, deep roster of existing customers, and decades of equipment dealership experience to grow organically by establishing new relationships with equipment OEMs that are synergistic to our existing business. Recent examples of this facet of our growth strategy are evidenced by our new relationship with Case Power and Equipment in Western Pennsylvania, which launched in late 2023, and the ongoing development of our e-mobility offerings and partnerships in the class 3 through 8 commercial electric vehicle markets.
Business Segments
For a detailed description of our business segments, refer to Note 16, Segments.
Financial Statement Overview
Our revenues are primarily derived from the sale or rental of equipment and product support (e.g., parts and service) activities, and consist of:
New equipment sales. We sell new heavy construction, material handling and environmental processing equipment and are a leading regional distributor for nationally recognized equipment manufacturers. Our new equipment sales operation is a primary source of new customers for our rental, parts and service business. The majority of our new equipment sales are predicated on exclusive distribution agreements we have with best-in-class OEMs. The sale of new equipment to customers, while profitable from a gross margin perspective, acts as a means of generating equipment field population and activity for our higher-margin aftermarket revenue streams, specifically service and parts. We also sell tangential products and services related to our material handling equipment offerings which include, but are not limited to, automated equipment installation and warehouse management systems integration.
Used equipment sales. We sell used equipment which is typically equipment that has been taken in on trade from a customer that is purchasing new equipment, equipment coming off a third-party lease arrangement where we purchase the equipment from the finance company, or used equipment that is sourced for our customers in the open market by our used equipment specialists. Used equipment sales in our territories, like new equipment sales, generate parts and service business for the Company.
Parts sales. We sell replacement parts to customers and supply parts to our own rental fleet. Our in-house parts inventory is extensive such that we are able to provide timely service support to our customers. The majority of our parts inventory is made up of OEM replacement parts for those OEMs with which we have exclusive agreements to sell new equipment.
Service revenues. We provide maintenance and repair services for customer-owned equipment and maintain our own rental fleet. In addition to repair and maintenance on an as needed or scheduled basis, we provide ongoing preventative maintenance services and warranty repairs for our customers. We have committed substantial resources to training our technical service employees and have a full-scale service infrastructure that we believe differentiates us from our competitors. Approximately 44% of our employees are skilled service technicians.
Rental revenues. We rent heavy construction, compact, aerial, material handling, and a variety of other types of equipment to our customers on a daily, weekly, and monthly basis. Our rental fleet, which is well-maintained, has an original acquisition cost (which we define as the cost originally paid to manufacturers plus any capitalized costs) of $592.2 million as of September 30, 2024. The original acquisition cost of our rental fleet excludes $6.8 million of assets associated with our guaranteed purchase obligations, which are assets that are not in our day-to-day operational control. In addition to being a core business, our rental business also creates cross-selling opportunities for us in our sales and product support activities.
Rental equipment sales. We also sell rental equipment from our rental fleet. Rental equipment sales may occur at various stages in an equipment’s lifecycle, depending on customer demand and original purchase intentions of the equipment. Rental equipment purchased directly into the rental fleet tends to be rented for the majority of its useful life before being sold (defined earlier as rent-to-rent equipment), and rental equipment purchased as new inventory then later transferred into the rental fleet tends to be rented until a retail opportunity presents itself (defined earlier as rent-to-sell equipment). In our Material Handling segment, our rental equipment sales are primarily of rent-to-rent equipment and in our Construction Equipment segment, our rental equipment sales are primarily of rent-to-sell equipment. Selling lightly used construction equipment from our rental fleet allows us to meet customer demand for specific model years of equipment at various price points versus only offering brand new equipment to the market. Customers often have options to purchase equipment after or before rental agreements have matured. Rental equipment sales, like new and used equipment sales, generate customer-owned equipment field population within our territories that ultimately yield high-margin parts and service revenues for us.
Principal Costs and Expenses
Our cost of revenues are primarily related to the costs associated with the sale or rental of equipment and product support activities, which include direct labor costs for our skilled technicians. Our operating expenses consist principally of selling, general and administrative expenses, which primarily include personnel costs associated with our sales and administrative staff and expenses associated with the deployment of our service vehicle fleet and occupancy expenses. In addition, we have interest expense related to our floor plan payables, finance leases, line of credit, and senior secured second lien notes. These principal costs and expenses are described further below:
New equipment sales. Cost of new equipment sold consists of the total acquisition costs of the new equipment we purchase from third parties.
Used equipment sales. Cost of used equipment sold consists of the net book value, or cost, of used equipment we purchase from third parties or the trade-in value of used equipment that we obtain from customers in new equipment sales transactions.
Parts sales. Cost of parts sales represents the average cost of parts used in the maintenance and repair of customer-owned equipment we service or parts sold directly to customers for their owned equipment (e.g., over-the-counter parts sales).
Services revenues. Cost of service revenues primarily represents the labor costs attributable to services provided for the maintenance and repair of customer-owned equipment. Training, paid time off, and other non-billable costs of maintaining our expert technicians are recorded in this line item in addition to the costs of direct customer-billable labor.
Rental revenues. Rental expense represents the costs associated with rental equipment, including, among other things, the cost of repairing and maintaining our rental equipment and other miscellaneous costs of owning rental equipment. Other rental expenses consist primarily of equipment support activities that we provide our customers in connection with renting equipment, such as freight services and damage waiver policies.
Rental depreciation. Depreciation of rental equipment represents the depreciation costs attributable to rental equipment. Estimated useful lives vary based upon type of equipment. See Note 2, Summary of Significant Accounting Policies, of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023 for information on our rental equipment depreciation methods.
Rental equipment sales. Cost of previously rented equipment sold consists of the net book value (e.g., net of accumulated depreciation) of rental equipment sold from our rental fleet.
Operating expenses. These costs are comprised of three main components: personnel, operational, and occupancy costs. Personnel costs are comprised of hourly and salaried wages for administrative employees, including incentive compensation and employee benefits, such as medical benefits. Operational costs include marketing activities, costs associated with deploying and leasing our service vehicle fleet, insurance, IT, office and shop supplies, general corporate costs, depreciation on non-sales and rental related assets, and intangible amortization. Occupancy costs are comprised of all expenses related to our facility infrastructure, including rent, utilities, property taxes, and building insurance.
Other expense, net. This section of the Condensed Consolidated Statements of Operations is mostly comprised of interest expense and other miscellaneous items that result in income or expense. Interest expense is driven by our Floor Plan Facilities, ABL Facility, Notes, and finance lease arrangements.
Results of Operations
The three and nine months ended September 30, 2024 and 2023
Consolidated Results
| Revenues: | Three Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | ||
|---|---|---|---|---|---|---|---|---|
| New and used equipment sales | $219.8 | $253.6 | $(33.8) | (13.3)% | $699.9 | $727.8 | $(27.9) | (3.8)% |
| Parts sales | 75.6 | 69.5 | 6.1 | 8.8% | 226.5 | 209.2 | 17.3 | 8.3% |
| Service revenues | 64.6 | 60.6 | 4.0 | 6.6% | 194.8 | 180.5 | 14.3 | 7.9% |
| Rental revenues | 53.7 | 54.0 | (0.3) | (0.6)% | 155.9 | 147.1 | 8.8 | 6.0% |
| Rental equipment sales | 35.1 | 28.5 | 6.6 | 23.2% | 101.4 | 90.7 | 10.7 | 11.8% |
| Total revenues | 448.8 | 466.2 | (17.4) | (3.7)% | 1,378.5 | 1,355.3 | 23.2 | 1.7% |
| Cost of revenues: | ||||||||
| New and used equipment sales | 184.4 | 212.0 | (27.6) | (13.0)% | 588.7 | 601.3 | (12.6) | (2.1)% |
| Parts sales | 50.0 | 45.3 | 4.7 | 10.4% | 149.2 | 138.2 | 11.0 | 8.0% |
| Service revenues | 26.3 | 26.5 | (0.2) | (0.8)% | 80.2 | 77.0 | 3.2 | 4.2% |
| Rental revenues | 5.6 | 5.7 | (0.1) | (1.8)% | 18.5 | 18.0 | 0.5 | 2.8% |
| Rental depreciation | 30.6 | 29.6 | 1.0 | 3.4% | 88.5 | 80.1 | 8.4 | 10.5% |
| Rental equipment sales | 27.3 | 21.0 | 6.3 | 30.0% | 76.2 | 66.5 | 9.7 | 14.6% |
| Total cost of revenues | 324.2 | 340.1 | (15.9) | (4.7)% | 1,001.3 | 981.1 | 20.2 | 2.1% |
| Gross profit | 124.6 | 126.1 | (1.5) | (1.2)% | 377.2 | 374.2 | 3.0 | 0.8% |
| General and administrative expenses | 110.6 | 106.8 | 3.8 | 3.6% | 339.7 | 316.0 | 23.7 | 7.5% |
| Non-rental depreciation and amortization | 7.2 | 5.4 | 1.8 | 33.3% | 21.3 | 16.0 | 5.3 | 33.1% |
| Total operating expenses | 117.8 | 112.2 | 5.6 | 5.0% | 361.0 | 332.0 | 29.0 | 8.7% |
| Income from operations | 6.8 | 13.9 | (7.1) | (51.1)% | 16.2 | 42.2 | (26.0) | (61.6)% |
| Other (expense) income: | ||||||||
| Interest expense, floor plan payable – new equipment | (3.2) | (2.4) | (0.8) | 33.3% | (8.7) | (5.8) | (2.9) | 50.0% |
| Interest expense – other | (19.4) | (12.8) | (6.6) | 51.6% | (49.2) | (35.1) | (14.1) | 40.2% |
| Other income | (0.3) | 1.4 | (1.7) | (121.4)% | 1.6 | 2.6 | (1.0) | (38.5)% |
| Loss on extinguishment of debt | — | — | — | — | (6.7) | — | (6.7) | NM |
| Total other expense, net | (22.9) | (13.8) | (9.1) | 65.9% | (63.0) | (38.3) | (24.7) | 64.5% |
| (Loss) income before taxes | (16.1) | 0.1 | (16.2) | NM | (46.8) | 3.9 | (50.7) | NM |
| Income tax provision (benefit) | 11.6 | (7.3) | 18.9 | NM | 4.7 | (6.9) | 11.6 | NM |
| Net (loss) income | (27.7) | 7.4 | (35.1) | NM | (51.5) | 10.8 | (62.3) | NM |
| Preferred stock dividends | (0.7) | (0.7) | — | — | (2.2) | (2.2) | — | — |
| Net (loss) income available to common stockholders | $(28.4) | $6.7 | $(35.1) | NM | $(53.7) | $8.6 | $(62.3) | NM |
| NM - calculated change not meaningful |
| Revenues: | Percent of Revenues Three Months Ended September 30, 2024 | 2023 | Percent of Revenues Nine Months Ended September 30, 2024 | 2023 |
|---|---|---|---|---|
| New and used equipment sales | 49.0% | 54.4% | 50.8% | 53.7% |
| Parts sales | 16.8% | 14.9% | 16.4% | 15.4% |
| Service revenues | 14.4% | 13.0% | 14.1% | 13.3% |
| Rental revenues | 12.0% | 11.6% | 11.3% | 10.9% |
| Rental equipment sales | 7.8% | 6.1% | 7.4% | 6.7% |
| Total revenues | 100.0% | 100.0% | 100.0% | 100.0% |
| Cost of revenues: | ||||
| New and used equipment sales | 41.2% | 45.5% | 42.7% | 44.4% |
| Parts sales | 11.1% | 9.7% | 10.8% | 10.2% |
| Service revenues | 5.9% | 5.7% | 5.8% | 5.7% |
| Rental revenues | 1.2% | 1.2% | 1.3% | 1.3% |
| Rental depreciation | 6.8% | 6.3% | 6.4% | 5.9% |
| Rental equipment sales | 6.0% | 4.6% | 5.6% | 4.9% |
| Total cost of revenues | 72.2% | 73.0% | 72.6% | 72.4% |
| Gross profit | 27.8% | 27.0% | 27.4% | 27.6% |
28
Non-GAAP Financial Measure: Organic Revenues
| Organic Revenues Three months ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Organic Revenues Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Total revenues | $448.8 | $466.2 | $(17.4) | (3.7)% | $1,378.5 | $1,355.3 | $23.2 | 1.7% |
| Acquisitions revenues | 21.7 | — | 58.2 | — | ||||
| Organic revenues: | ||||||||
| New and used equipment sales | 208.1 | 253.6 | (45.5) | (17.9)% | 667.0 | 727.8 | (60.8) | (8.4)% |
| Parts sales | 71.3 | 69.5 | 1.8 | 2.6% | 214.4 | 209.2 | 5.2 | 2.5% |
| Service revenues | 64.0 | 60.6 | 3.4 | 5.6% | 191.8 | 180.5 | 11.3 | 6.3% |
| Rental revenues | 50.1 | 54.0 | (3.9) | (7.2)% | 147.7 | 147.1 | 0.6 | 0.4% |
| Rental equipment sales | 33.6 | 28.5 | 5.1 | 17.9% | 99.4 | 90.7 | 8.7 | 9.6% |
| Total organic revenues | $427.1 | $466.2 | $(39.1) | (8.4)% | $1,320.3 | $1,355.3 | $(35.0) | (2.6)% |
The above table contains a non-GAAP financial measure. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the condensed consolidated statements of operations, balance sheets or statements of cash flows of the company. The non-GAAP financial measure used by the Company is organic revenues and growth rates associated with organic revenues. We define organic revenue growth as revenue growth excluding the impact of acquisitions that do not appear fully in both periods in the current and prior years. We believe organic revenue growth is a meaningful metric to investors as it provides a more consistent comparison of our revenues to prior periods as well as to industry peers.
Pursuant to the requirements of Regulation G, we have provided a reconciliation of organic revenues to the most directly comparable GAAP financial measure in the table above and in subsequent tables, where applicable, in management's discussion and analysis of our individual business segments. This measure is supplemental to, and should be used in conjunction with, the most comparable GAAP measure. Management uses this non-GAAP financial measure to monitor and evaluate financial results and trends.
Revenues: Consolidated revenues decreased by $17.4 million, or 3.7%, to $448.8 million for the three months ended September 30, 2024 as compared to the same period last year. Organic revenues for the three months ended September 30, 2024 decreased 8.4% compared to the same period last year. Uncertainty related to the outcome of the upcoming U.S. presidential election and a continued high interest rate environment have softened current demand for new and used equipment in our markets, however we believe the core long-term fundamentals in the markets we serve remain solid. With overall demand for new equipment depressed in nearly all of our markets, organic new and used equipment sales decreased by $45.5 million, or 17.9%, to $208.1 million for the three months ended September 30, 2024, partially offset by increased organic rental equipment sales of $5.1 million. While new equipment sales suffered on lower overall market volumes, demand for aftermarket products and services remained strong as organic parts sales increased by $1.8 million, or 2.6%, to $71.3 million for the three months ended September 30, 2024 as compared to the same period last year, and organic service revenues increased $3.4 million, or 5.6%, making for a total aftermarket revenues increase of $5.2 million organically, or 4.0%. Rental revenues for the quarter reached $50.1 million organically, or a decrease of 7.2% primarily due to reduced fleet on rent during the quarter.
In the nine months ended September 30, 2024, organic new and used equipment revenues decreased 8.4% against a strong comparative nine months ended September 30, 2023 when supply of new equipment was in the phase of meeting high levels of pent-up demand that existed post-pandemic. This dynamic was most prominent in our Master Distribution segment, which sells equipment to sub-dealers, as segment revenues for the nine months ended September 30, 2024 were down $18.5 million from the prior year same period. While new and used equipment revenues stagnated on weaker demand versus the same period last year, our product support departments (parts and service) grew 4.2% organically for the nine months ended September 30, 2024. Our rental business remained steady for the nine months ended September 30, 2024 as rental revenues grew 0.4% organically from increased fleet on rent when compared to the same period last year. Rental equipment sales organically increased 9.6% for the nine months ended September 30, 2024 as compared to the same period last year, as we look to sell rental equipment to help bolster field population for our aftermarket departments, especially as growth in rental rates and fleet utilization moderate.
Gross profit (GP):
| Consolidated | Three Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | Nine Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% |
|---|---|---|---|---|---|---|
| New and used equipment sales | 16.1% | 16.4% | (0.3)% | 15.9% | 17.4% | (1.5)% |
| Parts sales | 33.9% | 34.8% | (0.9)% | 34.1% | 33.9% | 0.2% |
| Service revenues | 59.3% | 56.3% | 3.0% | 58.8% | 57.3% | 1.5% |
| Rental revenues | 32.6% | 34.6% | (2.0)% | 31.4% | 33.3% | (1.9)% |
| Rental equipment sales | 22.2% | 26.3% | (4.1)% | 24.9% | 26.7% | (1.8)% |
| Consolidated gross profit | 27.8% | 27.0% | 0.8% | 27.4% | 27.6% | (0.2)% |
The consolidated gross profit margin for the three months ended September 30, 2024 was 27.8%, an 80 basis point increase from the same period in 2023. The overall increase in the quarter can be attributed to a relatively greater sales mix of our higher margin aftermarket business lines. New and used equipment sales margins decreased 30 basis points to 16.1%, as margin compression was observed in both our Material Handling and Construction Equipment segments. With inventory availability normalizing, new and used equipment sales margins have also normalized modestly from higher pricing levels experienced in the prior year. The impact of pricing normalization also affected the sales of our rental equipment, which led to a 410 basis point gross margin decrease when comparing the year-over-year periods. Parts gross margins decreased by 90 basis points from the same period in 2023 but remained within our range of expectation. Service gross margins improved in the third quarter when compared to the same period last year, increasing 300 basis points, primarily due to an improved rate realization on service labor. We realized a 200 basis point decrease in rental revenues gross margin for the three months ended September 30, 2024, largely a result of replenishing our rental fleet and the related increase in depreciation expense.
The consolidated gross profit margin for the nine months ended September 30, 2024 was 27.4%, a 20 basis point decrease from 27.6% for the same period in 2023. New and used equipment sales margins decreased 150 basis points to 15.9%, a reflection of a comparably softened pricing environment. On sales of our rental equipment, gross margin was similarly compressed on a softened pricing environment, posting a 180 basis point decrease when comparing the year-over-year periods. Parts gross margins remained consistent year to date when compared to the same time last year, improving 20 basis points, and service gross margins improved by 150 basis points. The improvement in year-to-date service gross margins was largely attributable to improved customer margins for shop and preventative maintenance work, as well as improved margins in our warranty and fleet accounts with our OEMs. We realized a 190 basis point decrease in rental revenues gross margin for the nine months ended September 30, 2024, largely a result of an increase in depreciation expense associated with a replenished fleet.
Operating expenses: Consolidated operating expenses increased by $5.6 million to $117.8 million for the three months ended September 30, 2024 compared to the same period last year. The increase is primarily driven by the full period impact from our 2023 acquisitions. Rising employee benefit costs, such as medical and pension, largely account for the remainder of the increase. Aside from those increases, the Company has been able to reduce various operating costs to combat top line revenue reductions for the three months ended September 30, 2024.
Consolidated operating expenses increased by $29.0 million to $361.0 million for the nine months ended September 30, 2024 compared to the same period last year. The increase is primarily driven by the full period impact from our 2023 acquisitions. Rising costs of employment, attributed to a higher average headcount and higher average wages and benefits, largely account for the remainder of the increase. A higher branch count in the 2024 time period relative to 2023 also contributed to increased operating expenses as well, with associated one-time costs, such as grand openings and initial stocking costs, and ongoing facility costs, such as rent and utilities. Further, during the nine-month period ended September 30, 2024 there were non-cash adjustments to contingent consideration made for earn-outs on previous acquisitions, which influenced the year-to-date costs by an incremental $0.7 million.
Other expense, net: Consolidated other expense, net for the three months ended September 30, 2024 was $22.9 million compared to $13.8 million for the same period in 2023. The increase is primarily due to an increased amount of interest expense, namely a result of the refinance of our Senior Secured Second Lien Notes during the second quarter of 2024.
Consolidated other expense, net for the nine months ended September 30, 2024 was $63.0 million compared to $38.3 million for the same period in 2023. The increase is primarily due to the loss on extinguishment of debt of $6.7 million, and an increased amount of interest expense due to increased effective interest rates, higher inventory and rental fleet levels, and more debt from financed acquisitions as compared to same period last year.
Income tax provision (benefit): The Company recorded income tax expense of $11.6 million and a benefit of $7.3 million for the three months ended September 30, 2024 and 2023, respectively and income tax expense of $4.7 million and benefit of $6.9 million for the nine months ended September 30, 2024 and 2023, respectively. The income tax expense for the three and nine months ended September 30, 2024 was primarily a result of a valuation allowance recorded against a portion of the deferred tax asset relating to the U.S. disallowed interest expense carryforwards created by the provisions of the TCJA and the benefit in 2023 was due to the release of the valuation allowance on certain U.S. federal and state deferred tax assets during the third quarter.
Material Handling Results
| Revenues: | Three Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | ||
|---|---|---|---|---|---|---|---|---|
| New and used equipment sales | $87.2 | $89.8 | $(2.6) | (2.9)% | $271.5 | $267.5 | $4.0 | 1.5% |
| Parts sales | 24.9 | 24.4 | 0.5 | 2.0% | 76.7 | 75.8 | 0.9 | 1.2% |
| Service revenues | 34.7 | 33.2 | 1.5 | 4.5% | 104.2 | 99.1 | 5.1 | 5.1% |
| Rental revenues | 19.3 | 19.6 | (0.3) | (1.5)% | 58.3 | 56.2 | 2.1 | 3.7% |
| Rental equipment sales | 2.8 | 1.6 | 1.2 | 75.0% | 8.1 | 3.9 | 4.2 | 107.7% |
| Total revenues | 168.9 | 168.6 | 0.3 | 0.2% | 518.8 | 502.5 | 16.3 | 3.2% |
| Cost of revenues: | ||||||||
| New and used equipment sales | 70.4 | 70.9 | (0.5) | (0.7)% | 220.0 | 212.8 | 7.2 | 3.4% |
| Parts sales | 15.8 | 15.0 | 0.8 | 5.3% | 48.0 | 46.7 | 1.3 | 2.8% |
| Service revenues | 14.4 | 14.5 | (0.1) | (0.7)% | 42.8 | 42.8 | — | — |
| Rental revenues | 1.6 | 2.3 | (0.7) | (30.4)% | 6.3 | 6.6 | (0.3) | (4.5)% |
| Rental depreciation | 8.1 | 6.7 | 1.4 | 20.9% | 23.6 | 19.5 | 4.1 | 21.0% |
| Rental equipment sales | 1.9 | 0.7 | 1.2 | 171.4% | 5.2 | 2.2 | 3.0 | 136.4% |
| Total cost of revenues | 112.2 | 110.1 | 2.1 | 1.9% | 345.9 | 330.6 | 15.3 | 4.6% |
| Gross profit | 56.7 | 58.5 | (1.8) | (3.1)% | 172.9 | 171.9 | 1.0 | 0.6% |
| General and administrative expenses | 47.2 | 54.9 | (7.7) | (14.0)% | 142.7 | 140.3 | 2.4 | 1.7% |
| Non-rental depreciation and amortization | 2.4 | 1.9 | 0.5 | 26.3% | 7.0 | 5.9 | 1.1 | 18.6% |
| Total operating expenses | 49.6 | 56.8 | (7.2) | (12.7)% | 149.7 | 146.2 | 3.5 | 2.4% |
| Income from operations | 7.1 | 1.7 | 5.4 | 317.6% | 23.2 | 25.7 | (2.5) | (9.7)% |
| Other (expense) income: | ||||||||
| Interest expense, floor plan payable – new equipment | (0.9) | (0.8) | (0.1) | 12.5% | (2.7) | (1.9) | (0.8) | 42.1% |
| Interest expense – other | (5.7) | (4.1) | (1.6) | 39.0% | (14.9) | (11.3) | (3.6) | 31.9% |
| Other income | 0.2 | 8.0 | (7.8) | (97.5)% | 0.4 | 0.3 | 0.1 | 33.3% |
| Total other (expense) income, net | (6.4) | 3.1 | (9.5) | (306.5)% | (17.2) | (12.9) | (4.3) | 33.3% |
| Income before taxes | $0.7 | $4.8 | $(4.1) | (85.4)% | $6.0 | $12.8 | $(6.8) | (53.1)% |
| Revenues: | Percent of Revenues Three Months Ended September 30, 2024 | 2023 | Percent of Revenues Nine Months Ended September 30, 2024 | 2023 |
|---|---|---|---|---|
| New and used equipment sales | 51.7% | 53.3% | 52.4% | 53.2% |
| Parts sales | 14.7% | 14.5% | 14.8% | 15.1% |
| Service revenues | 20.5% | 19.7% | 20.0% | 19.7% |
| Rental revenues | 11.4% | 11.6% | 11.2% | 11.2% |
| Rental equipment sales | 1.7% | 0.9% | 1.6% | 0.8% |
| Total revenues | 100.0% | 100.0% | 100.0% | 100.0% |
| Cost of revenues: | ||||
| New and used equipment sales | 41.7% | 42.1% | 42.5% | 42.3% |
| Parts sales | 9.4% | 8.9% | 9.3% | 9.3% |
| Service revenues | 8.5% | 8.6% | 8.2% | 8.6% |
| Rental revenues | 0.9% | 1.3% | 1.2% | 1.3% |
| Rental depreciation | 4.8% | 4.0% | 4.5% | 3.9% |
| Rental equipment sales | 1.1% | 0.4% | 1.0% | 0.4% |
| Total cost of revenues | 66.4% | 65.3% | 66.7% | 65.8% |
| Gross profit | 33.6% | 34.7% | 33.3% | 34.2% |
31
Non-GAAP Financial Measure: Organic Revenues
| Organic Revenues Three months ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Organic Revenues Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Total revenues | $168.9 | $168.6 | $0.3 | 0.2% | $518.8 | $502.5 | $16.3 | 3.2% |
| Acquisitions revenues | — | — | 1.8 | — | ||||
| Organic revenues: | ||||||||
| New and used equipment sales | 87.2 | 89.8 | (2.6) | (2.9)% | 271.0 | 267.5 | 3.5 | 1.3% |
| Parts sales | 24.9 | 24.4 | 0.5 | 2.0% | 76.1 | 75.8 | 0.3 | 0.4% |
| Service revenues | 34.7 | 33.2 | 1.5 | 4.5% | 103.5 | 99.1 | 4.4 | 4.4% |
| Rental revenues | 19.3 | 19.6 | (0.3) | (1.5)% | 58.3 | 56.2 | 2.1 | 3.7% |
| Rental equipment sales | 2.8 | 1.6 | 1.2 | 75.0% | 8.1 | 3.9 | 4.2 | 107.7% |
| Total organic revenues | $168.9 | $168.6 | $0.3 | 0.2% | $517.0 | $502.5 | $14.5 | 2.9% |
Revenues: Material Handling segment revenues increased by $0.3 million to $168.9 million for the three months ended September 30, 2024 as compared to the same period last year, all on an organic basis. New and used equipment sales are relatively flat year over year as we continue to work through a notable equipment sales backlog, while managing a depressed demand environment in the equipment spot market. Product support revenues, made up of the combined parts and service departments, improved by 3.5%, with service revenues increasing 4.5% in the third quarter over the same period in the prior year, reflecting our ability to pass along inflationary-based pricing increases to our customers to support their fleets in a period of flat demand. Rental revenues decreased from $19.6 million to $19.3 million, or 1.5%, for the three months ended September 30, 2024 as compared to the same period last year, despite the Material Handling segment holding a larger average fleet size when comparing the two periods. Rental equipment sales increased $1.2 million organically, or 75.0%, on low volume as we have strategically targeted and disposed of underperforming rental units or rental units that have reached the end of their useful life in our fleet.
Material Handling segment revenues increased by $16.3 million, or 3.2%, to $518.8 million for the nine months ended September 30, 2024 as compared to the same period last year. Organically, the segment revenues increased by $14.5 million, or 2.9%, year to date over the same period in the prior year. Organic new and used equipment sales increased 1.3% while working through a notable equipment sales backlog during the year. On an organic basis, product support revenues, made up of the combined parts and service departments increased by 2.7%, with improved productivity measures and rates when compared to the same period last year. Rental revenues increased 3.7% on an organic basis for the nine months ended September 30, 2024 as compared to the same period last year primarily related to a higher nominal level of fleet on rent and moderately increased rates. Rental equipment sales increased $4.2 million organically, or 107.7%, on low volume as we have strategically sold underperforming rental units or disposed of rental equipment that reached the end of its useful life in our fleet.
Gross profit (GP):
| Three Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | Nine Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | |
|---|---|---|---|---|---|---|
| New and used equipment sales | 19.3% | 21.0% | (1.7)% | 19.0% | 20.4% | (1.4)% |
| Parts sales | 36.5% | 38.5% | (2.0)% | 37.4% | 38.4% | (1.0)% |
| Service revenues | 58.5% | 56.3% | 2.2% | 58.9% | 56.8% | 2.1% |
| Rental revenues | 49.7% | 54.1% | (4.4)% | 48.7% | 53.6% | (4.9)% |
| Rental equipment sales | 32.1% | 56.3% | (24.2)% | 35.8% | 43.6% | (7.8)% |
| Segment gross profit | 33.6% | 34.7% | (1.1)% | 33.3% | 34.2% | (0.9)% |
Material Handling gross profit margin for the three months ended September 30, 2024 decreased 110 basis points to 33.6% compared to the same period in 2023. New and used equipment gross margins decreased as a result of heightened competitive pressures from greater availability of equipment in the marketplace relative to the prior year. Parts gross margins decreased 200 basis points on higher restocking fees. The 220 basis point service margin increase for the three months ended September 30, 2024 compared to the prior year same period can be attributed to margin improvements in customer-billed service work, whereas OEM-billed warranty and fleet service margins decreased in the quarter. Rental revenues gross margins have declined 440 basis points primarily due to replenishing and increasing the size of our rental fleet and the associated increase in depreciation expense. Rental equipment sales margins decreased on low volume of sales and pricing pressures from greater availability of equipment in the marketplace relative to the prior year.
Material Handling gross profit for the nine months ended September 30, 2024 decreased 90 basis points to 33.3% compared to the same period in 2023. New and used equipment gross margins compressed slightly due to sales mix variances, with reduced sales coming from Peaklogix, our higher margin warehousing solutions platform, and increased pressure on used equipment pricing. Parts gross margins have remained relatively consistent year over year and in line with expectations. The 210 basis point service margin increase for the nine months ended September 30, 2024 compared to the prior year same period can be attributed to margin improvements in major service categories, customer and OEM warranty and fleet work, on better pricing and technician productivity measures. Rental revenues gross margins have declined 490 basis points primarily due to replenishing and increasing the size of our rental fleet and the associated increase in depreciation expense. Rental equipment sales margins decreased on low volume of sales and pricing pressures from greater availability of equipment in the marketplace relative to the prior year.
Operating expenses: Material Handling operating expenses decreased by $7.2 million to $49.6 million for the three months ended September 30, 2024 as compared to the same period last year, primarily due to a year-to-date cumulative change in the allocation of intercompany expenses for shared service functions from Other income to General and administrative expenses during the third quarter of 2023.
Material Handling operating expenses increased by $3.5 million to $149.7 million for the nine months ended September 30, 2024 as compared to the same period last year, mainly due to the full period impact from the M&G acquisition in March 2023 and personnel-related cost increases in wages and benefits.
Other (expense) income, net: Material Handling other (expense) income, net increased by $9.5 million to $6.4 million for the three months ended September 30, 2024 as compared to the same period last year. The increase is mainly related to the aforementioned cumulative change in intercompany expense allocation for shared service functions and increased interest expense due to higher effective interest rates, inventory, and rental fleet levels.
Material Handling other expense, net increased by $4.3 million to $17.2 million for the nine months ended September 30, 2024 as compared to the same period last year. The increase is mainly related to increased interest expense due to higher effective interest rates, inventory, and rental fleet levels.
Construction Equipment Results
| Revenues: | Three Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | ||
|---|---|---|---|---|---|---|---|---|
| New and used equipment sales | $118.0 | $150.8 | $(32.8) | (21.8)% | $389.6 | $412.1 | $(22.5) | (5.5)% |
| Parts sales | 48.4 | 42.9 | 5.5 | 12.8% | 143.5 | 126.4 | 17.1 | 13.5% |
| Service revenues | 29.6 | 27.3 | 2.3 | 8.4% | 90.0 | 81.1 | 8.9 | 11.0% |
| Rental revenues | 34.0 | 34.1 | (0.1) | (0.3)% | 96.4 | 90.2 | 6.2 | 6.9% |
| Rental equipment sales | 32.3 | 26.9 | 5.4 | 20.1% | 93.3 | 86.8 | 6.5 | 7.5% |
| Total revenues | 262.3 | 282.0 | (19.7) | (7.0)% | 812.8 | 796.6 | 16.2 | 2.0% |
| Cost of revenues: | ||||||||
| New and used equipment sales | 103.9 | 131.5 | (27.6) | (21.0)% | 340.6 | 353.7 | (13.1) | (3.7)% |
| Parts sales | 33.5 | 29.5 | 4.0 | 13.6% | 98.7 | 88.5 | 10.2 | 11.5% |
| Service revenues | 11.6 | 12.0 | (0.4) | (3.3)% | 36.8 | 34.0 | 2.8 | 8.2% |
| Rental revenues | 3.9 | 3.4 | 0.5 | 14.7% | 12.2 | 11.4 | 0.8 | 7.0% |
| Rental depreciation | 22.1 | 22.5 | (0.4) | (1.8)% | 63.7 | 59.7 | 4.0 | 6.7% |
| Rental equipment sales | 25.4 | 20.3 | 5.1 | 25.1% | 71.0 | 64.3 | 6.7 | 10.4% |
| Total cost of revenues | 200.4 | 219.2 | (18.8) | (8.6)% | 623.0 | 611.6 | 11.4 | 1.9% |
| Gross profit | 61.9 | 62.8 | (0.9) | (1.4)% | 189.8 | 185.0 | 4.8 | 2.6% |
| General and administrative expenses | 56.2 | 57.3 | (1.1) | (1.9)% | 171.1 | 152.3 | 18.8 | 12.3% |
| Non-rental depreciation and amortization | 3.8 | 2.5 | 1.3 | 52.0% | 11.3 | 7.3 | 4.0 | 54.8% |
| Total operating expenses | 60.0 | 59.8 | 0.2 | 0.3% | 182.4 | 159.6 | 22.8 | 14.3% |
| Income from operations | 1.9 | 3.0 | (1.1) | (36.7)% | 7.4 | 25.4 | (18.0) | (70.9)% |
| Other (expense) income: | ||||||||
| Interest expense, floor plan payable – new equipment | (1.9) | (1.3) | (0.6) | 46.2% | (5.3) | (3.3) | (2.0) | 60.6% |
| Interest expense – other | (11.4) | (7.4) | (4.0) | 54.1% | (29.6) | (19.9) | (9.7) | 48.7% |
| Other income | 0.6 | 6.5 | (5.9) | (90.8)% | 1.5 | 1.5 | — | — |
| Total other expense, net | (12.7) | (2.2) | (10.5) | 477.3% | (33.4) | (21.7) | (11.7) | 53.9% |
| (Loss) income before taxes | $(10.8) | $0.8 | $(11.6) | (1450.0)% | $(26.0) | $3.7 | $(29.7) | (802.7)% |
| Revenues: | Percent of Revenues Three Months Ended September 30, 2024 | 2023 | Percent of Revenues Nine Months Ended September 30, 2024 | 2023 |
|---|---|---|---|---|
| New and used equipment sales | 44.9% | 53.5% | 47.8% | 51.7% |
| Parts sales | 18.5% | 15.2% | 17.7% | 15.9% |
| Service revenues | 11.3% | 9.7% | 11.1% | 10.2% |
| Rental revenues | 13.0% | 12.1% | 11.9% | 11.3% |
| Rental equipment sales | 12.3% | 9.5% | 11.5% | 10.9% |
| Total revenues | 100.0% | 100.0% | 100.0% | 100.0% |
| Cost of revenues: | ||||
| New and used equipment sales | 39.6% | 46.5% | 42.0% | 44.4% |
| Parts sales | 12.8% | 10.5% | 12.1% | 11.1% |
| Service revenues | 4.4% | 4.3% | 4.5% | 4.3% |
| Rental revenues | 1.5% | 1.2% | 1.5% | 1.4% |
| Rental depreciation and amortization | 8.4% | 8.0% | 7.8% | 7.5% |
| Rental equipment sales | 9.7% | 7.2% | 8.7% | 8.1% |
| Total cost of revenues | 76.4% | 77.7% | 76.6% | 76.8% |
| Gross profit | 23.6% | 22.3% | 23.4% | 23.2% |
34
Non-GAAP Financial Measure: Organic Revenues
| Organic Revenues Three months ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Organic Revenues Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Total revenues | $262.3 | $282.0 | $(19.7) | (7.0)% | $812.8 | $796.6 | $16.2 | 2.0% |
| Acquisitions revenues | 21.7 | — | 56.4 | — | ||||
| Organic revenues: | ||||||||
| New and used equipment sales | 106.3 | 150.8 | (44.5) | (29.5)% | 357.2 | 412.1 | (54.9) | (13.3)% |
| Parts sales | 44.1 | 42.9 | 1.2 | 2.8% | 132.0 | 126.4 | 5.6 | 4.4% |
| Service revenues | 29.0 | 27.3 | 1.7 | 6.2% | 87.7 | 81.1 | 6.6 | 8.1% |
| Rental revenues | 30.4 | 34.1 | (3.7) | (10.9)% | 88.2 | 90.2 | (2.0) | (2.2)% |
| Rental equipment sales | 30.8 | 26.9 | 3.9 | 14.5% | 91.3 | 86.8 | 4.5 | 5.2% |
| Total organic revenues | $240.6 | $282.0 | $(41.4) | (14.7)% | $756.4 | $796.6 | $(40.2) | (5.0)% |
Revenues: Construction Equipment segment revenues decreased by $19.7 million to $262.3 million for the three months ended September 30, 2024 as compared to the same period last year. Organic segment revenues decreased 14.7% for the three months ended September 30, 2024 over the same period in the prior year, amid a softer demand backdrop. New and used equipment sales decreased organically by $44.5 million, or 29.5%, while rental equipment sales increased for the three months ended September 30, 2024 by $3.9 million. Market demand for equipment from medium and small contractors has declined as interest rates have stayed elevated and new project funding has become more challenging. Further, heightened new equipment availability and dealer stock levels throughout the industry have resulted in an increased competitive environment compared to a year ago making holding market share in certain regions and product categories more difficult. Despite a challenging environment for equipment sales, product support revenues, consisting of parts and service revenues, increased 4.1% organically as we have been able to increase skilled technician headcount and improve rate realization on service labor. Rental revenues decreased 10.9%, on an organic basis for the three months ended September 30, 2024 as compared to the same period last year on reduced utilization.
Construction Equipment segment revenues increased by $16.2 million to $812.8 million for the nine months ended September 30, 2024 as compared to the same period last year, primarily related to the full-period impact from the Burris and Ault acquisitions made in the fourth quarter of 2023. Organic segment revenues decreased 5.0% for the nine months ended September 30, 2024 over the same period in the prior year. New and used equipment sales decreased organically by $54.9 million, or 13.3%, while rental equipment sales increased for the nine months ended September 30, 2024 by $4.5 million. As has been the experience the last several quarters, the industry continues to struggle with high interest rates and uncertainty surrounding the U.S. presidential election causing hesitancy amongst new equipment buyers, resulting in lower sales volumes from fewer market opportunities. Product support revenues increased 5.9% organically due to higher technician headcount and improved rates on service labor. Rental revenues decreased 2.2% on an organic basis for the nine months ended September 30, 2024 compared to the same period last year as rental demand is moderating.
Gross profit (GP):
| Three Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | Nine Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | |
|---|---|---|---|---|---|---|
| New and used equipment sales | 11.9% | 12.8% | (0.9)% | 12.6% | 14.2% | (1.6)% |
| Parts sales | 30.8% | 31.2% | (0.4)% | 31.2% | 30.0% | 1.2% |
| Service revenues | 60.8% | 56.0% | 4.8% | 59.1% | 58.1% | 1.0% |
| Rental revenues | 23.5% | 24.0% | (0.5)% | 21.3% | 21.2% | 0.1% |
| Rental equipment sales | 21.4% | 24.5% | (3.1)% | 23.9% | 25.9% | (2.0)% |
| Segment gross profit | 23.6% | 22.3% | 1.3% | 23.4% | 23.2% | 0.2% |
Construction Equipment gross profit increased by 130 basis points to 23.6% in the three months ended September 30, 2024 from 22.3% in the same period in 2023. New and used equipment sales margins decreased 90 basis points to 11.9%, primarily related to greater equipment supply on the market coupled with declining used equipment pricing when compared to the same period last year. Parts sales margins for the three months ended September 30, 2024 decreased modestly when compared to the same time last year, but remain in line with expectations. Service gross margins increased by 480 basis points year over year with improved productivity and rate realization on service labor. Rental revenues gross margin for the three months ended September 30, 2024 decreased by 50 basis points from a year ago, but remained within our expected range. Finally, gross margins on rental equipment sales experienced a reduction when compared to the same time last year amid industry-wide pricing pressures on used equipment.
Construction Equipment gross profit increased by 20 basis points to 23.4% in the nine months ended September 30, 2024 from 23.2% in the same period in 2023. New and used equipment sales margins decreased 160 basis points to 12.6%, primarily related to greater equipment supply in the market resulting in tighter sales margins this year when compared to the same period last year, and pricing pressures on used equipment. Parts sales margins for the nine months ended September 30, 2024 increased 120 basis points when compared to the same time last year. The 2023 acquisition of Ault has improved the parts sales margins during the nine months ended September 30, 2024 as parts for specialized aggregate and mining equipment command a premium compared to traditional construction equipment parts. Service gross margins increased by 100 basis points year over year mainly from improved rate realization. Rental revenues gross margin for the nine months ended September 30, 2024 were relatively flat from a year ago, consistent with expectations. Gross margins on rental equipment sales for the nine months ended September 30, 2024 were reduced from a year ago amid the aforementioned pricing pressures on used equipment.
Operating expenses: Construction Equipment operating expenses increased by $0.2 million to $60.0 million for the three months ended September 30, 2024 as compared to the same period in 2023. The overall increase is mainly due to the full-period impact from the Burris and Ault acquisitions made in the fourth quarter of 2023, but is also influenced by relatively higher personnel and facility-related expenses. Organic operating expenses remained flat between the comparative three month periods. Additionally, and similar to the Material Handling segment, a year-to-date cumulative change in the allocation of intercompany expenses for shared service functions from Other income to General and administrative expenses was made during the third quarter of 2023, partially offsetting the aforementioned increases from acquisitions.
Construction Equipment operating expenses increased by $22.8 million to $182.4 million for the nine months ended September 30, 2024 as compared to the same period in 2023. The increase is mainly due to the full-period impact from the Burris and Ault acquisitions made in the fourth quarter of 2023 but is also influenced primarily by higher wage levels, rising benefit costs, and increased marketing, and facility-related expenses. Notably, with the change to the Condensed Consolidated Statements of Operations classification of the allocation of intercompany expenses for shared service functions made in the third quarter of 2023, the comparative year-to-date values align consistently between one another.
Other expense, net: Construction Equipment other expense, net increased by $10.5 million to $12.7 million for the three months ended September 30, 2024 as compared to the same period in 2023. The variance was mainly due to increased floor plan interest expense related to a combination of higher effective interest rates on higher levels of new inventory that were no longer within the subsidized period of our OEMs, higher effective interest rates on operating debt borrowings, increased debt from financed acquisitions within the segment, and the aforementioned cumulative change in shared service function intercompany segment allocations.
Construction Equipment other expense, net increased by $11.7 million to $33.4 million for the nine months ended September 30, 2024 as compared to the same period in 2023. The variance was driven by the same aforementioned factors driving increased interest costs for the three months ended September 30, 2024.
Master Distribution Results
| Revenues: | Three Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) 2024 versus 2023 | ||
|---|---|---|---|---|---|---|---|---|
| New and used equipment sales | $15.3 | $15.2 | $0.1 | 0.7% | $38.8 | $57.3 | $(18.5) | (32.3)% |
| Parts sales | 2.2 | 2.5 | (0.3) | (12.0)% | 7.1 | 7.9 | (0.8) | (10.1)% |
| Service revenues | 0.3 | 0.1 | 0.2 | 200.0% | 0.6 | 0.3 | 0.3 | 100.0% |
| Rental revenues | 0.4 | 0.3 | 0.1 | 33.3% | 1.2 | 0.7 | 0.5 | 71.4% |
| Total revenues | 18.2 | 18.1 | 0.1 | 0.6% | 47.7 | 66.2 | (18.5) | (27.9)% |
| Cost of revenues: | ||||||||
| New and used equipment sales | 11.3 | 12.0 | (0.7) | (5.8)% | 28.9 | 42.7 | (13.8) | (32.3)% |
| Parts sales | 0.7 | 1.1 | (0.4) | (36.4)% | 3.4 | 3.8 | (0.4) | (10.5)% |
| Service revenues | 0.3 | — | 0.3 | NA | 0.6 | 0.2 | 0.4 | 200.0% |
| Rental revenues | 0.1 | — | 0.1 | NA | — | — | — | NA |
| Rental depreciation | 0.2 | 0.2 | — | — | 0.8 | 0.5 | 0.3 | 60.0% |
| Total cost of revenues | 12.6 | 13.3 | (0.7) | (5.3)% | 33.7 | 47.2 | (13.5) | (28.6)% |
| Gross profit | 5.6 | 4.8 | 0.8 | 16.7% | 14.0 | 19.0 | (5.0) | (26.3)% |
| General and administrative expenses | 3.0 | 3.3 | (0.3) | (9.1)% | 10.7 | 9.1 | 1.6 | 17.6% |
| Non-rental depreciation and amortization | 0.9 | 0.9 | — | — | 2.7 | 2.7 | — | — |
| Total operating expenses | 3.9 | 4.2 | (0.3) | (7.1)% | 13.4 | 11.8 | 1.6 | 13.6% |
| Income from operations | 1.7 | 0.6 | 1.1 | 183.3% | 0.6 | 7.2 | (6.6) | (91.7)% |
| Other (expense) income: | ||||||||
| Interest expense, floor plan payable – new equipment | (0.3) | (0.2) | (0.1) | 50.0% | (0.9) | (0.5) | (0.4) | 80.0% |
| Interest expense – other | (0.9) | (0.7) | (0.2) | 28.6% | (2.2) | (2.0) | (0.2) | 10.0% |
| Other (expense) income | (0.4) | 0.6 | (1.0) | (166.7)% | (0.5) | 0.4 | (0.9) | (225.0)% |
| Total other expense, net | (1.6) | (0.3) | (1.3) | 433.3% | (3.6) | (2.1) | (1.5) | 71.4% |
| Income (loss) before taxes | $0.1 | $0.3 | $(0.2) | (66.7)% | $(3.0) | $5.1 | $(8.1) | (158.8)% |
| Revenues: | Percent of Revenues Three Months Ended September 30, 2024 | 2023 | Percent of Revenues Nine Months Ended September 30, 2024 | 2023 |
|---|---|---|---|---|
| New and used equipment sales | 84.1% | 84.0% | 81.3% | 86.6% |
| Parts sales | 12.1% | 13.8% | 14.9% | 11.9% |
| Service revenues | 1.6% | 0.5% | 1.3% | 0.4% |
| Rental revenues | 2.2% | 1.7% | 2.5% | 1.1% |
| Total revenues | 100.0% | 100.0% | 100.0% | 100.0% |
| Cost of revenues: | ||||
| New and used equipment sales | 62.2% | 66.3% | 60.5% | 64.5% |
| Parts sales | 3.8% | 6.1% | 7.1% | 5.7% |
| Service revenues | 1.6% | — | 1.3% | 0.3% |
| Rental revenues | 0.5% | — | — | — |
| Rental depreciation and amortization | 1.1% | 1.1% | 1.7% | 0.8% |
| Total cost of revenues | 69.2% | 73.5% | 70.6% | 71.3% |
| Gross profit | 30.8% | 26.5% | 29.4% | 28.7% |
37
Revenues: Master Distribution segment revenues for the three months ended September 30, 2024 were $18.2 million, an increase of $0.1 million from the prior year same period. The Master Distribution segment has two primary sales channels for which it sells equipment: (1) through its dealer channel whereby contractual relationships are established with sub-dealers that hold stock inventory and ultimately sell to end users and (2) through direct sale relationships whereby end customers source specific types of equipment directly. Despite direct sales increasing, we had similar sales totals during the three months ended September 30, 2024 when compared to the third quarter of 2023 as the dealer channel continued to display constrained demand dynamics, demonstrating a reluctance to restock product as many dealers manage through inventory overstock. Parts sales were slightly down as end-market dynamics negatively influenced aftermarket sales as well.
Master Distribution segment revenues for the nine months ended September 30, 2024 were $47.7 million, a decrease of $18.5 million from the prior year same period. As dealer channel sales depend on sub-dealer stocking levels, in 2023 the supply of new equipment was in the initial phase of meeting high levels of pent-up post-pandemic demand and our Master Distribution sub-dealers fulfilled stocking needs. This dealer stocking dynamic led to higher than typical sales volume for our Master Distribution segment for the nine months ended September 30, 2023, but particularly within the first six months of 2023. With the dealer channel full and a challenging equipment demand environment due in part to an elevated interest rate environment, volumes and revenues have suffered comparably in 2024. Conversely, and despite being a smaller portion of the total sales mix, the Master Distribution segment's direct sale business, primarily consisting of compost turning and bulk commercial food waste processing machinery, has improved as we sell to environmentally conscious customer end users throughout North America. Parts sales were slightly down based on mix, as we sold multiple large component parts in the nine months ended September 30, 2023 when compared to the same period this year.
Gross profit (GP):
| Three Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | Nine Months Ended September 30, 2024 GP% | 2023 GP% | Increase (Decrease) 2024 versus 2023 GP% | |
|---|---|---|---|---|---|---|
| New and used equipment sales | 26.1% | 21.1% | 5.0% | 25.5% | 25.5% | — |
| Parts sales | 68.2% | 56.0% | 12.2% | 52.1% | 51.9% | 0.2% |
| Service revenues | — | 100.0% | NM | — | 33.3% | NM |
| Rental revenues | 25.0% | 33.3% | (8.3)% | 33.3% | 28.6% | 4.7% |
| Segment gross profit | 30.8% | 26.5% | 4.3% | 29.4% | 28.7% | 0.7% |
| NM - calculated change not meaningful |
For the three months ended September 30, 2024, gross profit margin on new and used equipment sales were 26.1%, up 500 basis points from prior year, but overall in line with expectations considering product mix. Parts gross profit margin was 68.2% for the three months ended September 30, 2024, up 1,220 basis points compared to the same period last year, above expectations for a single quarter result due to a parts obsolescence reserve adjustment made during the quarter.
For the nine months ended September 30, 2024, gross profit margin on new and used equipment sales were 25.5%, flat from prior year and in line with expectations. Parts gross profit margin was 52.1% for the nine months ended September 30, 2024, up 20 basis points compared to the same period last year, in line with expectations.
Operating expenses: Master Distribution segment operating expenses were $3.9 million for the three months ended September 30, 2024, a decrease of $0.3 million to the prior year. The decrease from the prior year is primarily related to the recording of non-cash adjustments for contingent consideration associated with earn-outs during the three months ended September 30, 2023, which did nor reoccur in 2024. Operating expenses otherwise remained relatively flat during the quarter.
Master Distribution segment operating expenses were $13.4 million for the nine months ended September 30, 2024, an increase of $1.6 million primarily related to non-cash adjustments for contingent consideration earn-outs associated with the acquisition of Ecoverse in November 2022. Personnel costs, such as wages and benefits, and sales-related expenses represented the remainder of the increase in operating expenses of the Master Distribution segment year over year.
Other expense, net: Master Distribution other expense, net was $1.6 million for the three months ended September 30, 2024, an increase over prior year partially attributed to higher interest costs on larger inventory balances, but primarily related to exchange rate fluctuations.
Master Distribution other expense, net was $3.6 million for the nine months ended September 30, 2024, an increase over prior year attributed to higher interest costs on larger inventory balances and the impact of exchange rate fluctuations.
Liquidity and Capital Resources
The nine months ended September 30, 2024 and 2023 Cash Flows
Cash Flow from Operating Activities. Cash flows from operating activities include net income adjusted for non-cash items and the effects of changes in working capital. For the nine months ended September 30, 2024, operating activities resulted in net cash provided by operations of $22.1 million. Our reported net loss of $51.5 million, when adjusted for non-cash income and expense items, primarily depreciation and amortization, the gain on sale of rental equipment, inventory obsolescence and bad debt reserves, loss on debt extinguishment, deferred income taxes, and stock-based compensation, provided net cash inflows of $56.2 million. Changes in working capital included $152.2 million of inventory purchased (of which $105.6 million was transferred into our rental fleet for replenishment), and a $26.5 million decrease in accounts receivable. Cash flows from operating activities were favorably impacted by $92.5 million due to proceeds from the sale of rent-to-sell equipment, $8.4 million in net inflows related to manufacturer floor plans, and by a $4.3 million net change in prepaid expenses and other assets and leases, deferred revenue, and other liabilities and unfavorably impacted by a $13.6 million decrease in accounts payable, accrued expenses, customer deposits, and other current liabilities.
For the nine months ended September 30, 2023, operating activities resulted in net cash used in operations of $23.1 million. Our reported net income of $10.8 million, when adjusted for non-cash income and expense items, such as depreciation and amortization, inventory obsolescence and bad debt reserves, and stock-based compensation, provided net cash inflows of $91.5 million. Changes in working capital included $247.4 million of inventory purchased (of which $143.0 million has been transferred into our rental fleet for replenishment and growth purposes), and a $32.7 million increase in accounts receivable. Cash flows from operating activities were favorably impacted by $87.0 million due to proceeds from the sale of rent-to-sell equipment, $97.9 million in net inflows related to manufacturer floor plans and unfavorably impacted by a $6.9 million decrease in accounts payable, accrued expenses, customer deposits, and other current liabilities and by a $12.5 million net change in prepaid expenses and other assets and leases, deferred revenue, and other liabilities.
Cash Flow from Investing Activities. For the nine months ended September 30, 2024, our cash used in investing activities was $48.0 million. This was mainly due to $59.2 million purchases of rental equipment, non-rental property and equipment, and other investing activities partially offset by $8.9 million proceeds from the sale of rent-to-rent equipment and $2.3 million proceeds from the sale of non-rental property and equipment.
For the nine months ended September 30, 2023, our cash used in investing activities was $56.9 million. This was mainly due to $61.4 million purchases of rental equipment, non-rental property and equipment, and other investing activities as well as acquisition activity partially offset by $3.7 million proceeds from the sale of rent-to-rent equipment and $0.8 million proceeds from the sale of non-rental property and equipment.
Cash Flow from Financing Activities. For the nine months ended September 30, 2024, cash provided by financing activities was $9.7 million. This cash inflow was mainly due to the $353.5 million of net proceeds from our line of credit, long-term borrowings, and finance lease obligations, which funded the $319.4 extinguishment of our Senior Secured Second Lien Notes due April 2026 and the increase in net working capital previously noted. These cash inflows also were partially offset by payments of $8.1 million for preferred and common stock dividends, net payments of $9.3 million related to non-manufacturer floor plans, $2.0 million for common stock repurchases, and $3.1 million related to other financing activities.
For the nine months ended September 30, 2023, cash provided by financing activities was $78.2 million. The favorable impact was mainly due to $81.5 million of net proceeds under our line of credit, long-term debt, and finance lease obligations, which funded the increase in net working capital and rental fleet as previously noted and net proceeds of $9.8 million related to non-manufacturer floor plans. This was partially offset by payments of $7.9 million for preferred and common stock dividends and $5.2 million related to other financing activities.
Sources of Liquidity
Our principal sources of liquidity have been from cash provided by our service, parts and rental related operations and the sales of new, used, and rental fleet equipment, proceeds from the issuance of debt, and borrowings available under our line of credit and floor plans. The Company reported $14.6 million in cash as of September 30, 2024. For more information on our available borrowings under the revolving line of credit, senior secured second lien notes, and floor plans, please refer to Note 8, Floor Plans and Note 9, Long-term Debt. We consider the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested as we do not anticipate the need to repatriate funds to the U.S. to satisfy domestic liquidity needs.
Cash Requirements Related to Operations
Our principal uses of cash have been to fund operating activities and working capital, including but not limited to new and used equipment inventories, purchases of rental fleet equipment and personal property, payments due under line of credit and floor plans, acquisitions, debt service requirements, stock repurchases, and preferred stock and common stock dividends. In the future, we may pursue additional strategic acquisitions and seek to open new start-up locations. We anticipate that the uses described above encompass the principal demands on our cash and availability under our line of credit and floor plans in the future.
The amount of our future capital expenditures will depend on a number of factors including general economic conditions and growth prospects. Our gross rental fleet capital expenditures for the nine months ended September 30, 2024 was $151.2 million, including $105.6 million of transfers from new and used inventory to rental fleet. This gross rental fleet capital expenditure was offset by sales proceeds of rental equipment of $101.4 million for the nine months ended September 30, 2024 as our business model is to sell lightly used inventory to customers from our rental fleet to increase field population in our geographies. In response to changing economic conditions, we have the flexibility to modify our capital expenditures, especially as it relates to rental fleet.
To service our debt, we will require a significant amount of cash. Our ability to pay interest and principal on our indebtedness, will depend upon our future operating performance and the availability of borrowings under the line of credit and/or other debt and equity financing alternatives available to us, which will be affected by prevailing economic conditions and conditions in the global credit and capital markets, as well as financial, business and other factors, some of which are beyond our control. Based on our current level of operations and given the current state of the capital markets, we believe our cash flows from operations, available cash, and available borrowings under the line of credit will be adequate to meet our future liquidity needs for the foreseeable future. As of September 30, 2024, we had $360.8 million of available borrowings under the ABL Facility and Floor Plan Facilities.
Critical Accounting Policies and Estimates
In the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), we are required to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures. Our management reviews these estimates and assumptions on an ongoing basis. While we believe the estimates and judgments we use in preparing our consolidated financial statements are reasonable and appropriate, they are subject to future events and uncertainties regarding their outcome; therefore, actual results may materially differ from these estimates. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts first become known. See Note 2 to our condensed consolidated financial statements for a summary of our significant accounting policies.
Additionally, see Note 2 to the consolidated financial statements contained in the Company’s 2023 Annual Report on Form 10-K for a summary of our significant accounting policies.
Market risk
As filed, 4,175 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Our exposure to market risks primarily consist of interest rate risk associated with our variable and fixed rate debt, prices of certain commodities, and foreign currency exchange rate risks. From time to time, we employ financial instruments to manage the Company's exposure to changes in interest rates, diesel and unleaded fuel, and foreign currencies. See Note 14, Fair Value of Financial Instruments, for more information.
Interest rate risk: Our earnings may be affected by changes in interest rates on the ABL Facility and Floor Plan Facilities. The interest rates applicable to any loans under the ABL Facility are based, at the option of the borrowers, on (i) a floating rate based on the SOFR (for loans denominated in U.S. dollars) or Canadian Dollar Offered Rate (for loans denominated in Canadian dollars) plus an initial margin of 1.75% or (ii) CBFR (for loans denominated in U.S. dollars) or the Canadian Prime Rate (for loans denominated in Canadian dollars) less an initial margin of 0.75%, in each case, where margin is adjusted under the ABL Facility based on the quarterly average excess availability under the ABL Facility. The interest rates applicable to any loans under various Floor Plan Facilities ("Floor Plan Rates") are based on a wide range of benchmark rates (including SOFR, Prime, Bloomberg Short-Term Bank Yield Index, and the Canadian Bankers' Acceptance Rate) plus an applicable margin. As of September 30, 2024 the lowest Floor Plan Rate was SOFR plus an initial margin of 2.75%, and the highest was SOFR plus a margin of 5.1145% per annum.
At September 30, 2024 and December 31, 2023, we had $200.6 million and $317.5 million, respectively, outstanding borrowings under the ABL Facility. At September 30, 2024 and December 31, 2023, we had $396.4 million and $397.5 million, respectively, outstanding borrowings under the Floor Plan Facilities. As of September 30, 2024, based upon the amount of our variable rate debt outstanding, each one percentage point increase in the interest rates applicable to our variable rate debt, when including the hedge impact of our interest rate cap, would reduce our annual pre-tax earnings by $2.4 million. The amount of variable rate indebtedness outstanding may fluctuate significantly. See Note 8, Floor Plans, and Note 9, Long-Term Debt, in our condensed consolidated financial statements for additional information concerning the terms of our variable rate debt.
We have a fixed rate on the Notes of $500.0 million which are due in 2029. We do not have any exposure to changing interest rates as of September 30, 2024 on the fixed rate Notes. For additional information concerning the terms of our fixed rate debt, see Note 9, Long-Term Debt.
Commodity price risk: The market prices of diesel and unleaded fuels are unpredictable and can fluctuate significantly. Because of the volume of fuel we purchase each year, a significant increase in the price of fuel could adversely affect our business and reduce our operating margins. To manage a portion of this risk, we enter into fixed price swap contracts to purchase gasoline and diesel fuel related to forecasted fuel purchases. For the purchases of unleaded and diesel fuel that we expect to purchase at market prices in the next 12 months, each $0.10 per gallon increase in the price of diesel and unleaded fuel, holding other variables constant, would not have a material impact on our pre-tax income when including the fixed price swap contracts.
Foreign currency exchange rate risk: Due to our international operations, a portion of our revenues, cost of revenues, and operating expenses are subject to foreign currency exchange rate risk. Changes in the exchange rate of the U.S. dollar versus the Canadian dollar and European currencies affect the translated value and relative level of revenues and net income that we report from one period to the next. Based upon balances and exchange rates as of September 30, 2024, holding other variables constant, we believe that a hypothetical 10% increase or decrease in all applicable foreign exchange rates would not have a material impact on our results of operations or cash flows.
Controls and procedures
As filed, 841 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Management’s Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of September 30, 2024. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2024, our disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) of the Exchange Act) during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Risk factors
As filed, 457 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
We face a number of uncertainties and risks that are difficult to predict and many of which are outside of our control. For a detailed discussion of the risks that affect our business, please refer to Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. There have been no material changes from the risk factors included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2024-09-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2024-07-01 to 2024-09-30 | $448.8m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months2024-01-01 to 2024-09-30 | $1.38bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months2024-07-01 to 2024-09-30 | $324.2m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months2024-01-01 to 2024-09-30 | $1.00bn | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months2024-07-01 to 2024-09-30 | $124.6m | us-gaap:GrossProfit |
| Gross profit | 9 months2024-01-01 to 2024-09-30 | $377.2m | us-gaap:GrossProfit |
| Operating income | 3 months2024-07-01 to 2024-09-30 | $6.8m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months2024-01-01 to 2024-09-30 | $16.2m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months2024-07-01 to 2024-09-30 | $22.6m | us-gaap:InterestExpense |
| Interest expense | 9 months2024-01-01 to 2024-09-30 | $57.9m | us-gaap:InterestExpense |
| Income tax | 3 months2024-07-01 to 2024-09-30 | $11.6m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2024-01-01 to 2024-09-30 | $4.7m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2024-07-01 to 2024-09-30 | −$27.7m | us-gaap:NetIncomeLoss |
| Net income | 9 months2024-01-01 to 2024-09-30 | −$51.5m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2024-07-01 to 2024-09-30 | −$0.86 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months2024-01-01 to 2024-09-30 | −$1.62 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2024-07-01 to 2024-09-30 | −$0.86 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months2024-01-01 to 2024-09-30 | −$1.62 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2024-07-01 to 2024-09-30 | 33,207,768 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months2024-01-01 to 2024-09-30 | 33,185,437 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months2024-01-01 to 2024-09-30 | $22.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months2024-01-01 to 2024-09-30 | $11.4m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months2024-01-01 to 2024-09-30 | $2.2m | us-gaap:PaymentsOfDividends |
| Share repurchases | 9 months2024-01-01 to 2024-09-30 | $2.0m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | At period end2024-09-30 | $14.6m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | At period end2024-09-30 | $826.4m | us-gaap:AssetsCurrent |
| Total assets | At period end2024-09-30 | $1.55bn | us-gaap:Assets |
| Current liabilities | At period end2024-09-30 | $612.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2024-09-30 | $1.45bn | us-gaap:Liabilities |
| Long-term debt | At period end2024-09-30 | $478.7m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | At period end2024-09-30 | $10.1m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | At period end2024-09-30 | $95.7m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0000950170-24-125441. Last ingested by Listed: Oct 24, 2026, 15:15 ET. Listed shows no prices and gives no investment advice.