- Expands product portfolio with new OEMs, including an exclusive distributorship with McCloskey
- Diversifies end markets with entrance into
Ontario and Quebec’s aggregate and mining industries - Ault generated approximately
$50.3 million in revenue,$4.5 million in net income, and$7.5 million in adjusted EBITDA for the trailing twelve months throughJune 30, 2023 and is expected to be immediately accretive to the Company’s free cash flow conversion, profitability, and earnings per share ratios
“The acquisition of Ault represents Alta’s first investment in
Strategic and Financial Highlights
- The acquisition expands Alta’s Construction Equipment segment into Canada’s two largest markets.
- As part of the acquisition, Alta assumes Ault’s exclusive dealer agreement with McCloskey, a best-in-class product in the crushing and screening category.
- Given Ault’s leading market position and strong brand relationships, the Company expects the acquisition to be accretive to the Company’s EBITDA to cash flow conversion and earnings per share ratios.
Additional Transaction Details
- Total purchase price of
$36.0 million , consisting of$23.2 million cash at close, a$2.2 million seller note, and$10.6 million worth of Alta’s common stock, which will be issued at$13 per share, equating to 818,473 shares vesting annually over a five-year period. The purchase price is subject to post-closing working capital adjustments. - Ault’s brand name, employees, and management team will remain in place post-close.
- Including Ault, since the Company’s initial public offering in 2020, Alta has completed 16 acquisitions which have contributed
$537 million in revenue, and$66 million in Adjusted EBITDA. - More information on Ault, its products and applications can be found at https://ault.ca/en/.
About
Alta owns and operates one of the largest integrated equipment dealership platforms in the
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Alta’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside Alta’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: supply chain disruptions, inflationary pressures resulting from supply chain disruptions or a tightening labor market; negative impacts on customer payment policies and adverse banking and governmental regulations, resulting in a potential reduction to the fair value of our assets; the performance and financial viability of key suppliers, contractors, customers, and financing sources; economic, industry, business and political conditions including their effects on governmental policy and government actions that disrupt our supply chain or sales channels; our success in identifying acquisition targets and integrating acquisitions; our success in expanding into and doing business in additional markets; our ability to raise capital at favorable terms; the competitive environment for our products and services; our ability to continue to innovate and develop new business lines; our ability to attract and retain key personnel, including, but not limited to, skilled technicians; our ability to maintain our listing on
*Use of Non-GAAP Financial Measures
We disclose non-GAAP financial measures Adjusted EBITDA and EBITDA in this press release because we believe they are useful performance measures that assist in an effective evaluation of the acquisition and its expected impact on our operating performance when compared to our peers, without regard to financing methods or capital structure. We believe such measures are useful for investors and others in understanding and evaluating the acquisition and its expected impact on our operating results in the same manner as our management. However, such measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for, or in isolation from, net income (loss), revenue, operating profit, or any other operating performance measures calculated in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) before interest expense (not including floorplan interest paid on new equipment), income taxes, depreciation and amortization, adjustments for certain one-time or non-recurring items and other adjustments. We exclude these items from net income (loss) in arriving at Adjusted EBITDA because these amounts are either non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. EBITDA is defined as net income (loss) before interest expense (not including floorplan interest paid on new equipment), income taxes, depreciation and amortization. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance. For example, items such as a company’s cost of capital and tax structure as well as certain one-time or non-recurring items, are not reflected in Adjusted EBITDA. Our presentation of Adjusted EBITDA and EBITDA should not be construed as an indication that results will be unaffected by the items excluded from these metrics. Our computation of Adjusted EBITDA, and other non-GAAP measures, may not be identical to other similarly titled measures of other companies. Ault’s financial information has not been audited by Alta or its auditors and is subject to change. For a reconciliation of non-GAAP measures to their most comparable measures under GAAP, please see the table entitled “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
Contacts
Investors:
IR@altg.com
(225) 772-0254
Media:
glenn.moore@altg.com
(248) 305-2134
Reconciliation of Non-GAAP Financial Measures
Twelve Months Ended | ||||
(amounts in millions) | ||||
Net income | $ | 4.5 | ||
Depreciation and amortization | 2.4 | |||
Interest expense | 0.1 | |||
Income tax provision | 0.3 | |||
EBITDA (1) | $ | 7.3 | ||
Other adjustments (2) | 0.2 | |||
Adjusted EBITDA (1) | $ | 7.5 |
(1) Represents Non-GAAP measure
(2) Other adjustments primarily related to expected incremental cost reductions post-close
Source:
2023 GlobeNewswire, Inc., source