Q2 2024 Alta Equipment Group Inc Earnings Call

August 7, 2024

Okay.

Joel: Good afternoon, and thank you for attending the Alta Equipment Group second quarter 2024 earnings conference call. My name is Joel, and I will be your moderator for today's call. I will now turn the call over to Jason Dammeyer, Director of SEC Reporting and Technical Accounting, at Alta Equipment Group. Jason, you may proceed.

Operator: Good afternoon, and thank you for attending the Alta Equipment Group 2nd quarter 2024 earnings conference call.

Joel: Good afternoon, and thank you for attending the Alta Equipment Group second quarter 2024 earnings conference call. My name is Joel, and I'll be your moderator for today's call. I'll now turn the call over to Jason Dammeyer, Director of SEC Reporting and Technical Accounting, Alta Equipment Group. Jason, you may proceed.

Joel: Good afternoon, and thank you for attending the Alta Equipment Group 2nd quarter 2024 earnings conference call. My name is Joel and I will be your moderator for today's call.

Speaker Change: Good afternoon, and thank you for attending the Alta Equipment Group Second Quarter 2024 Earnings Conference Call.

Operator: My name is Joel, and I will be your moderator for today's call.

Jason Dammeyer: I will now turn the call over to Jason Dammeyer, Director of SEC Reporting and Technical Accounting with Alta Equipment Group.

Jason Dammeyer: I will now turn the call over to Jason Dammeyer, director of SEC reporting and technical accounting with Alta Equipment Group. Jason, you may proceed. Thank you, Joel.

Joel: My name is Joel, and I will be your moderator for today's call.

I will now turn the call over to Jason Dammeyer, Director of SEC Reporting and Technical Accounting with Alta Equipment Group. Jason, you may proceed.

Jason Dammeyer: Jason, you may proceed.

Jason Dammeyer: Thank you, Joel.

Jason Dammeyer: Thank you, Joel. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alta's second quarter 2024 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 Greenawalt, our Chairman and CEO, and Tony Colucci, our Chief Financial Officer. For today's call, management will first provide a review of our second quarter 2024 financial results. We will begin with some prepared remarks before we open the call to your questions. Please proceed to slide two.

Jason Dammeyer: Good afternoon, everyone, and thank you for joining us today. I press release detailing Alta's second quarter 2024 financial results with issues this afternoon and is posted on our website, along with the presentation designed to assist you in understanding the company's results.

Jason Dammeyer: Good afternoon, everyone, and thank you for joining us today. I press release detailing Alta's second quarter 2024 financial results with issues this afternoon and is posted on our website, along with the presentation design to assist you in understanding the company's results.

Jason Dammeyer: Thank you, Joel. Good afternoon, everyone, and thank you for joining us today.

Jason Dammeyer: A press release detailing Alta's second quarter 2024 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.

Jason Dammeyer: On the call with me today, are Ryan Greenawalt, our chairman and CEO, and Tony Colucci, our chief financial officer. For today's call, management will first provide a review of our second quarter 2024 financial results. We will begin with some prepared remarks before we open the call for your questions. Please proceed to slide two.

Jason Dammeyer: On the call with me today, a Ryan Greenawalt, our chairman and CEO and Tony Colucci, our chief financial officer. For today's call, management will first provide a review of our second quarter 2024 financial results. We will begin with some prepared remarks before we open the call for your questions. Please proceed to slide two. 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.

Speaker Change: On the call with me today are Ryan Greenawalt, our Chairman and CEO , and Tony Colucci, our Chief Financial Officer. For today's call, management will first provide a review of our second quarter 2024 financial results. We will begin with some prepared remarks before we open the call for your questions.

Jason Dammeyer: 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 risk, uncertainties, and assumptions, including those related to Alta's growth, market opportunities, and general economic and business conditions. We have basically forward-looking statements largely on a current expectation and projections about future events and financial trends that we believe may affect our business financial condition and results of operations.

Jason Dammeyer: 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 Alta's 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.

Jason Dammeyer: These forward looking statements are subject to both known and unknown risk uncertainties and assumptions, including those related to Alta's growth, market opportunities, and general economic and business conditions. We have basically forward looking statements largely on a current expectation 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.

Jason Dammeyer: Please proceed to slide two.

Speaker Change: Before we get started, I'd like to remind everyone that this conference call may contain certain forward-looking statements.

Jason Dammeyer: 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.

Jason Dammeyer: including statements about future financial results our business strategy and financial outlook achievements of the company and other nonhistorical statements as described in our press release

Jason Dammeyer: The 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 GAP and non-GAP financial measures.

Jason Dammeyer: These forward-looking statements are subject to both known and unknown risks, uncertainties, and assumptions, including those related to Alta's growth, market opportunities, and general economic and business conditions.

Jason Dammeyer: 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.

Jason Dammeyer: Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that occur after this call. The 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.

Jason Dammeyer: Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that occur after this call.

Jason Dammeyer: 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.

Jason Dammeyer: During this call, we may present both GAP and non-GAP 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.

Jason Dammeyer: A reconciliation of GAP to non-GAP measures is included in today's press release and can be found on our website at investors.altaequipment.com.

Jason Dammeyer: 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.

Ryan Greenawalt: I will now turn the call over to Ryan.

Jason Dammeyer: I will now turn the call over to Ryan. Thank you, Jason.

Ryan Greenawalt: Thank you, Jason.

Ryan Greenawalt: Thank you, Jason. Good afternoon, everyone, and thank you for joining us today. I will begin with a quick overview of our second quarter results, then provide a current assessment of business conditions and our end user markets. Tony Colucci will then present a more detailed analysis of our financial and operating performance for the quarter and our outlook for the balance of 2024. Overall, our business rebounded well this quarter from the seasonally challenged first quarter and in the face of a moderating market environment for new equipment sales. For the quarter, total revenues increased $46.5 million sequentially to $488.1 million in Q2 from $441.6 million in Q1. For the second quarter, the business achieved adjusted EBITDA of $50.3 million, which is up $16.2 million versus Q1.

Ryan Greenawalt: Good afternoon, everyone. Thank you for joining us today. I will begin with a quick overview of our second quarter results, then provide a current assessment of the business conditions and our end user markets. Tony Callucci will then present a more detailed analysis of our financial and operating performance for the quarter and our outlook for the balance of 2024. Overall, our business rebounded well this quarter from the seasonally challenged first quarter and in the face of a moderating market environment for new equipment sales. For the quarter, total revenues increased 46.5 million sequentially to 488.1 million in Q2 from 441.6 million in Q1.

Ryan: Thank you, Jason. Good afternoon, everyone. And thank you for joining us today.

Ryan: I will begin with a quick overview of our second quarter results, then provide a current assessment of the business conditions and our end user markets. Tony Colucci will then present a more detailed analysis of our financial and operating performance for the quarter and our outlook for the balance of 2024.

Ryan Greenawalt: Tony Callucci will then present a more detailed analysis of our financial and operating performance for the quarter and our outlook for the balance of 2024. Overall, our business rebounded well this quarter from the seasonally challenged first quarter and in the face of moderating market environment for new equipment sales. For the quarter total revenues increased 46.5 million sequentially to 488.1 million in Q2 from 441.6 million in Q1. For the second quarter, the business achieved adjusted EBIDA 50.3 million which is up 16.2 million versus Q1.

Ryan Greenawalt: Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on increased field population with revenues increasing to a record of 144.2 million and increase of 13.2 million from a year ago. Additionally, our material handling segment also continued on its steady path of profitable growth as we progressively execute on a solid sales backlog and gain market share and strategic regions and product categories throughout our footprint.

Tony Colucci: Overall, our business rebounded well this quarter from the seasonally challenged first quarter and in the face of moderating market environment for new equipment sales.

Tony Colucci: For the quarter, total revenues increased $46.5 million sequentially to $488.1 million in Q2, from $441.6 million in Q1.

Ryan Greenawalt: For the second quarter, the business achieved adjusted EBIDA of 50.3 million, which is up 16.2 million versus Q1. Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on increased field population, with revenues increasing to a record of 144.2 million and an increase of 13.2 million from a year ago. Additionally, our material handling segment also continued on its steady path of profitable growth as we progressively execute on a solid sales backlog and gain market share in strategic regions and product categories throughout our footprint. We also saw a rebound in our master distribution segment as revenue in the quarter was 16.7 million versus 12.8 million in the first quarter.

Tony Colucci: For the second quarter, the business achieved adjusted EBITDA of $50.3 million, which is up $16.2 million versus Q1.

Ryan Greenawalt: Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on increased field population, with revenues increasing to a record of $144.2 million, an increase of $13.2 million from a year ago. Additionally, our material handling segment also continued on its steady path of profitable growth as we progressively execute on a solid sales backlog and gain market share in strategic regions and product categories throughout our footprint. We also saw a rebound in our master distribution segment, as revenue in the quarter was $16.7 million versus $12.8 million in the first quarter.

Ryan: Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on increased field population, with revenues increasing to a record of $144.2 million, an increase of $13.2 million from a year ago.

Tony Colucci: Additionally, our material handling segment also continued on its steady path of profitable growth as we progressively execute on a solid sales backlog and gain market share in strategic regions and product categories throughout our footprint.

Ryan Greenawalt: We also saw a rebound in our master distribution segment as revenue in the quarter was 16.7 million versus 12.8 million in the first quarter. While we benefited from a return to normal seasonality in a strong quarter from our material handling segment and our product support business lines, market unit volumes and our construction equipment segment remained under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-sized contractors.

Tony Colucci: We also saw a rebound in our master distribution segment, as revenue in the quarter was $16.7 million versus $12.8 million in the first quarter.

Ryan Greenawalt: While we benefited from a return to normal seasonality and a strong quarter from our material handling segment and our product support business lines, market unit volumes in our construction equipment segment remained under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-sized contracts. Let me now discuss our business in greater detail by operating segment. Revenues for our construction equipment segment increased to $294.9 million from $281.5 million a year ago, but this was offset by lower new equipment sales and compressed equipment gross margin.

Ryan Greenawalt: While we benefited from a return to normal seasonality in a strong quarter from our material handling segment and our product support business lines, market unit volumes and our construction equipment segment remained under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-sized contractors.

Ryan Greenawalt: While we benefited from a return to normal seasonality and a strong quarter from our material handling segment and our product support business lines, market unit volumes in our construction equipment segment remained under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-sized contracts. Let me now discuss our business in greater detail by operating segment. Revenues for our construction equipment segments increased to $294.9 million from $281.5 million a year ago, but this was offset by lower new equipment sales and compressed equipment gross margin.

Ryan: While we benefited from a return to normal seasonality and a strong quarter from our material handling segment and our product support business lines, market unit volumes in our construction equipment segment remained under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-sized contractors.

Ryan Greenawalt: Let me now discuss our business in greater detail by operating segments. Revenues for our construction equipment segments increased to 294.9 million from 281.5 million a year ago, but were offset by lower new equipment sales and compressed equipment gross margins. There is an oversupply of equipment in the market, both in dealer inventory across the entire channel and in excess supply from the OEMs, given the significant market volume declines relative to previous years. The increased supply of machinery is resulting in price degradation, especially with heavier or moving machines in the most competitive markets like Florida. Across our geographic footprint, the market is down nearly 9% year over year on a unit volume basis, with the Great Lakes region experiencing even steeper declines.

Ryan: Let me now discuss our business in greater detail by operating segments.

Ryan: Revenues for our construction equipment segment increased to $294.9 million from $281.5 million a year ago, but were offset by lower new equipment sales and compressed equipment gross margins.

Ryan Greenawalt: There is an oversupply of equipment in the market, both in dealer inventory across the entire channel and in excess supply from the OEMs, given the significant market volume declines relative to previous years. The increased supply of machinery is resulting in price degradation, especially with heavier earth moving machines in the most competitive markets like Florida. Across our geographic footprint, the market is down nearly 9% year-over-year on a unit-volume basis, with the Great Lakes region experiencing even steeper declines.

Ryan Greenawalt: There is an oversupply of equipment in the market, both in dealer inventory across the entire channel and in excess supply from the OEMs, given the significant market volume declines relative to previous years. The increased supply of machinery is resulting in price degradation, especially with heavier earth moving machines in the most competitive markets like Florida. Across our geographic footprint, the market is down nearly 9% year over year on a unit volume basis, with the Great Lakes region experiencing even steeper declines.

Speaker Change: There is an oversupply of equipment in the market, both in dealer inventory across the entire channel and in excess supply from the OEMs, given the significant market volume declines relative to previous years.

Ryan Greenawalt: The increased supply of machinery is resulting in price degradation, especially with heavier or moving machines in the most competitive markets like Florida. Across our geographic footprint, the market is down nearly 9% year over year on a unit volume basis with the Great Lakes region experiencing even steeper declines. We are seeing some benefit of our geographic diversity as certain markets like New York, state, and Florida will benefit from their greater mix of large-scale projects that have allowed larger contractors to stay more insulated from economic volatility and keep those markets relatively buoyant, propping up steady demand for the higher end of all this product offering.

Ryan: The increased supply of machinery is resulting in price degradation, especially with heavier earth-moving machines in the most competitive markets like Florida.

Ryan: Across our geographic footprint, the market is down nearly 9% year-over-year on a unit-volume basis, with the Great Lakes region experiencing even steeper declines.

Ryan Greenawalt: We are seeing some benefit of our geographic diversity as certain markets like New York, State, and Florida will benefit from their greater mix of large-scale projects that have allowed larger contractors to stay more insulated from economic volatility and keep those markets relatively buoyant, propping up steady demand for the higher end of all this product offering. The higher capacity equipment categories are where we see the most acute pricing pressure and also the steepest volume declines. Despite the industry returning to a more normalized environment after years of significant growth, we continue to remain positive about our position in the marketplace.

Ryan Greenawalt: We are seeing some benefit from our geographic diversity as certain markets, like New York State and Florida, will benefit from their greater mix of large-scale projects that have allowed larger contractors to stay more insulated from economic volatility and keep those markets relatively buoyant, propping up steady demand for the higher end of Alta's product offering. The higher capacity equipment categories are where we see the most acute pricing pressure and also the steepest volume decline.

Ryan: We are seeing some benefit of our geographic diversity as certain markets, like New York State and Florida, will benefit from their greater mix of large scale projects that have allowed larger contractors to stay more insulated from economic volatility and keep those markets relatively buoyant, propping up steady demand for the higher end of Alta's product offering.

Ryan Greenawalt: The higher capacity equipment categories are where we see the most acute pricing pressure and also the steepest volume declines. Despite the industry returning to a more normalized environment after years of significant growth, we continue to remain positive about our position in the marketplace. We are focused on optimizing our fleet and continuing to build in, neutralized revenue streams coming through the repair of our continuously expanding field population. Revenue for our material handling segment increased to 175.6 million from 169.1 million a year ago and was primarily driven by an increase in service revenue.

Ryan: The higher capacity equipment categories are where we see the most acute pricing pressure and also the steepest volume declines.

Ryan Greenawalt: Despite the industry returning to a more normalized environment after years of significant growth, we continue to remain positive about our position in the marketplace. We are focused on optimizing our fleet and continuing to build the annuitized revenue streams coming through the repair of our continuously expanding field population. Revenue for our material handling segment increased to $175.6 million from $169.1 million a year ago, and this was primarily driven by an increase in service revenue.

Ryan: Despite the industry returning to a more normalized environment after years of significant growth, we continue to remain positive about our position in the marketplace. We are focused on optimizing our fleet and continuing to build the annuitized revenue streams coming through the repair of our continuously expanding field population.

Ryan Greenawalt: We are focused on optimizing our fleet and continuing to build in, neutralized revenue streams coming through the repair of our continuously expanding field population. Revenue for our material handling segment increased to 175.6 million from 169.1 million a year ago and was primarily driven by an increase in service revenue. The North American lift truck market saw a significant decline in Q2-2024, with factory bookings down sharply from peak levels. What we are observing is the continued normalization of the North American foreclift industry from the extreme market dislocation brought on by the pandemic. Despite the reduction in bookings, we continue to benefit from the market positioning of our product portfolio from a lead time and product differentiation perspective and have been capturing market share despite the declines and industry bookings.

Ryan: revenue for our material handling segment increased to one hundred and seventy-five point six million from one hundred and sixty nine point one million a year ago and was primarily driven by an increase in service revenue

Ryan Greenawalt: The North American lift truck market saw a significant decline in Q2 2024, with factory bookings down sharply from peak levels. What we are observing is the continued normalization of the North American forklift industry from the extreme market dislocation brought on by the pandemic. Despite the reduction in bookings, we continue to benefit from the market positioning of our product portfolio from a lead time and product differentiation perspective and have been capturing market share despite the declines in industry bookings. We expect shipments to remain strong through 2024 and into 2025.

Ryan Greenawalt: The North American lift truck market saw a significant decline in Q2-2024 with factory bookings down sharply from peak levels. What we are observing is the continued normalization of the North American foreclift industry from the extreme market dislocation brought on by the pandemic. Despite the reduction in bookings, we continue to benefit from the market positioning of our product portfolio from a lead time and product differentiation perspective and have been capturing market share despite the declines and industry bookings.

Ryan: The North American lift truck market saw a significant decline in Q2 2024 with factory bookings down sharply from peak levels.

Ryan Greenawalt: What we are observing is the continued normalization of the North American forklift industry from the extreme market dislocation brought on by the pandemic. Despite the reduction in bookings, we continue to benefit from the market positioning of our product portfolio from a lead time and product differentiation perspective and have been capturing market share despite the declines in industry bookings. We expect shipments to remain strong through 2024 and into 2025, and we continue to focus on making market share gains, especially in the electrified product classes where we maintain a lead time advantage relative to the competition.

Ryan: What we are observing is the continued normalization of the North American forklift industry from the extreme market dislocation brought on by the pandemic.

Ryan: Despite the reduction in bookings, we continue to benefit from the market positioning of our product portfolio from a lead time and product differentiation perspective and have been capturing market share despite the declines in industry bookings.

Ryan Greenawalt: We expect shipments to remain strong through 2024, extending into 2025, and we continue to focus on making market share gains, especially in the electrified product classes where we maintain a lead time advantage relative to the competition.

Ryan Greenawalt: And we continue to focus on making market share gains, especially in the electrified product classes where we maintain a lead time advantage relative to the competition. As part of our growth strategy, we are actively exploring new business segments in tangential or complementary equipment markets that align well with our expertise and resources embedded in the dealership model. While we have previously discussed this significant opportunity to provide and support an electrified medium duty over the road truck fleet, this initiative is gaining momentum as we enter the back half of this year.

Ryan Greenawalt: We expect shipments to remain strong through 2024 extending into 2025 and we continue to focus on making market share gains, especially in the electrified product classes where we maintain a lead time advantage relative to the competition.

Ryan: We expect shipments to remain strong through 2024, extending into 2025, and we continue to focus on making market share gains, especially in the electrified product classes, where we maintain a lead time advantage relative to the competition.

Ryan Greenawalt: As part of our growth strategy, we are actively exploring new business segments in tangential or complimentary equipment markets that align well with our expertise and resources embedded model. While we have previously discussed this significant opportunity to provide and support an electrified medium-duty over-the-road truck fleet, this initiative is gaining momentum as we enter the back half of this year. To that end, I'm pleased to report that Alta E-mobility has entered into an agreement to represent Harbinger as an authorized dealer in support of the launch of their new electric medium-duty truck lineup. The territory assignment includes dense urban markets, including Southern California, an overlap significantly with our existing footprint in the population-dense Great Lakes, Northeast, and Florida regions, where we intend to leverage our existing branch infrastructure.

Ryan Greenawalt: As part of our growth strategy, we are actively exploring new business segments in tangential or complementary equipment markets that align well with our expertise and resources embedded in the dealership model. While we have previously discussed this significant opportunity to provide and support an electrified medium duty over the road truck fleet, this initiative is gaining momentum as we enter the back half of this year. To that end, I'm pleased to report that Alta E-Mobility has entered into an agreement to represent Harbinger as an authorized dealer and to support the launch of their new electric medium duty truck line. The Territory Assignment includes dense urban markets, including Southern California, and overlaps significantly with our existing footprint in the population-dense Great Lakes, Northeast, and Florida regions, where we intend to leverage our existing branch infrastructure.

Ryan Greenawalt: As part of our growth strategy, we are actively exploring new business segments in tangential or complimentary equipment markets that align well with our expertise and resources embedded Model. While we have previously discussed this significant opportunity to provide and support an electrified medium duty over the road truck fleet, this initiative is gaining momentum as we enter the back half of this year. To that end, I'm pleased to report that Alta E-mobility has entered into an agreement to represent Harbinger as an authorized dealer in support of the launch of their new electric medium duty truck lineup.

Ryan: As part of our growth strategy, we are actively exploring new business segments in tangential or complementary equipment markets that align well with our expertise and resources embedded in the dealership model.

Ryan: While we have previously discussed this significant opportunity to provide and support an electrified medium-duty over-the-road truck fleet, this initiative is gaining momentum as we enter the back half of this year.

Ryan Greenawalt: To that end, I'm pleased to report that Alta E-Mobility has entered into an agreement to represent Harbinger as an authorized dealer and support the launch of their new electric medium duty truck line. The territory assignment includes dense urban markets, including Southern California, and overlaps significantly with our existing footprint in the population-dense Great Lakes, Northeast, and Florida regions, where we intend to leverage our existing branch infrastructure.

Ryan: To that end, I'm pleased to report that Alta E-Mobility has entered into an agreement to represent Harbinger as an authorized dealer in support of the launch of their new electric medium-duty truck lineup.

Ryan Greenawalt: The territory assignment includes dense urban markets, including Southern California, an overlap significantly with our existing footprint in the population dense Great Lakes, Northeast, and Florida regions, where we intend to leverage our existing branch infrastructure. Our initial focus will be on the medium duty electrified class 4 through 6 commercial vehicle segments. The market opportunity bears strong resemblance to the evolution of our electric forklift market over the last 50 years. Like lift trucks, medium duty fleets are geographically contained, easing the rollout of charging infrastructure.

Ryan: The Territory Assignment includes dense urban markets, including Southern California, and overlaps significantly with our existing footprint in the population-dense Great Lakes, Northeast, and Florida regions, where we intend to leverage our existing branch infrastructure.

Ryan Greenawalt: Our initial focus will be on the medium-duty electrified Class 4 through 6 commercial vehicle segments. The market opportunity bears strong resemblance to the evolution of our electric forklift market over the last 50 years. Like lift trucks, medium duty fleets are geographically contained, easing the rollout of charging infrastructure. As technology continues to advance and the necessary infrastructure develops, we anticipate widespread adoption and integration into the transportation ecosystem. In May, we find an agreement with mail management services, a top 15 carrier providing dedicated service transportation services for the United States Postal Service to source 20 Harbinger Class 6 electric box trucks to update their fleet.

Ryan Greenawalt: Our initial focus will be on the medium duty electrified class 4 through 6 commercial vehicle segment. The market opportunity bears a strong resemblance to the evolution of our electric forklift market over the last 50 years. Like lift trucks, medium duty fleets are geographically contained, easing the rollout of charging infrastructure.

Ryan: our initial focus will be in the medium duty electrified class four through six commercial vehicle segment

Ryan: The market opportunity bears strong resemblance to the evolution of our electric forklift market over the last 50 years.

Ryan: Like lift trucks, medium duty fleets are geographically contained, easing the rollout of charging infrastructure. As technology continues to advance and the necessary infrastructure develops, we anticipate widespread adoption and integration into the transportation ecosystem.

Ryan Greenawalt: As technology continues to advance and the necessary infrastructure develops, we anticipate widespread adoption and integration into the transportation ecosystem. In May, we signed an agreement with mail management services, a top 15 carrier providing dedicated service transportation services for the United States Postal Service, to source 20 Harbinger class 6 electric box trucks to update their fleet. Updating their fleet with the new electric powertrain technology will enable mail management services to directly assist the U.S.

Ryan Greenawalt: As technology continues to advance and the necessary infrastructure develops, we anticipate widespread adoption and integration into the transportation ecosystem. In May, we signed an agreement with Mail Management Services, a top 15 carrier providing dedicated service transportation services for the United States Postal Service, to source 20 Harbinger class 6 electric box trucks to update their fleet. Updating their fleet with the new electric powertrain technology will enable mail management services to directly assist the U.S.

Ryan Greenawalt: As technology continues to advance and the necessary infrastructure develops, we anticipate widespread adoption and integration into the transportation ecosystem. In May, we find an agreement with mail management services, a top 15 carrier providing dedicated service transportation services for the United States Postal Service to source 20 Harbinger Class 6 electric box trucks to update their fleet. Updating their fleet with the new electric power train technology will enable mail management services to directly assist the U.S.

Ryan: In May, we signed an agreement with Mail Management Services, a top 15 carrier providing dedicated service transportation services for the United States Postal Service, to source 20 Harbinger Class 6 electric box trucks to update their fleet.

Ryan Greenawalt: Updating their fleet with the new electric power train technology will enable mail management services to directly assist the U.S. Postal Service with achieving its carbon footprint goals. Alta is handling all aspects of the vehicle transaction, specifying and installing the charging platform, as well as providing a web-based fleet management system. Mail management services partner with Alta because of our proven approach to assess, define, execute, and maintain electrified fleets. While the inclusion of Harbinger with the inclusion of Harbinger to the portfolio and the traction gained with new customers in the quarter, we now have approximately 25 million in sales backlog in the mobility business, and we expect the majority of that backlog to convert to revenue in the second half of 2024.

Ryan: Updating their fleet with the new electric powertrain technology will enable mail management services to directly assist the U.S. Postal Service with achieving its carbon footprint goals.

Ryan Greenawalt: Postal Service with achieving its carbon footprint goals. Alta is handling all aspects of the vehicle transaction specifying and installing the charging platform as well as providing a web-based fleet management system. Mail management services partner with Alta because of our proven approach to assess, define, execute and maintain electrified fleets. While the inclusion of Harbinger with the inclusion of Harbinger to the portfolio and the traction gained with new customers in the quarter, we now have approximately 25 million in sales backlog in the mobility business, and we expect the majority of that backlog to convert to revenue in the second half of 2024.

Ryan Greenawalt: The Postal Service with achieving its carbon footprint goal. Alta is handling all aspects of the vehicle transaction, specifying and installing the charging platform, as well as providing a web-based fleet management system. Mail management services partners with Alta because of our proven approach to assess, define, execute, and maintain electrified vehicles. While, with the inclusion of Harbinger to the portfolio and the traction gained with new customers in the quarter, we now have approximately $25 million in sales backlog in the e-mobility business, and we expect the majority of that backlog to convert to revenue in the second half of 2024.

Ryan Greenawalt: The Postal Service with achieving its carbon footprint goal. Alta is handling all aspects of the vehicle transactions, specifying and installing the charging platform, as well as providing a web-based fleet management system. Mail management services partners with Alta because of our proven approach to assess, define, execute, and maintain electrified fleets. Meanwhile, with the inclusion of Harbinger to the portfolio and the traction gained with new customers in the quarter, we now have approximately $25 million in sales backlog in the e-mobility business, and we expect the majority of that backlog to convert to revenue in the second half of 2024.

Speaker Change: Alta is handling all aspects of the vehicle transaction, specifying and installing the charging platform, as well as providing a web-based fleet management system. Mail management services partner with Alta because of our proven approach to assess, define, execute, and maintain electrified fleets.

Speaker Change: While with the inclusion of Harbinger to the portfolio, and the traction gained with new customers in the quarter, we now have approximately $25 million in sales backlog in the e-mobility business, and we expect the majority of that backlog to convert to revenue in the second half of 2024.

Ryan Greenawalt: In summary, despite what we believe to be temporary demand headwinds, our long-term outlook remains positive as we believe the next few years will represent an extended cycle for non-residential construction. Project pipelines are significant, and federal infrastructure spending continues to accelerate. Further, many of these projects are multi-year endeavors and fall into our geographic footprint. State DOT spending also remains elevated. Overall, we believe growth opportunities will persist as our dealership model has distinct advantages through a variety of market conditions. To close, we remain focused on selling our industry-leading dealership capabilities to expand our market share and grow our product support business.

Ryan Greenawalt: In summary, despite what we believe to be temporary demand headwinds, our long-term outlook remains positive as we believe the next few years will represent an extended cycle for non-residential construction. Project pipelines are significant and federal infrastructure spending continues to accelerate. Further, many of these projects are multi-year endeavors and fall into our geographic footprint. State DOT spending also remains elevated. Overall, we believe growth opportunities will persist as our dealership model has distinct advantages through a variety of market conditions.

Ryan: In summary, despite what we believe to be temporary demand headwinds, our long-term outlook remains positive as we believe the next few years will represent an extended cycle for non-residential construction.

Ryan: Project pipelines are significant and federal infrastructure spending continues to accelerate. Further, many of these projects are multi year endeavors and fall into our geographic footprint.

Ryan Greenawalt: Overall, we believe growth opportunities will persist as our dealership model has distinct advantages in a variety of market conditions. To close, we remain focused on selling our industry-leading dealership capabilities to expand our market share and grow our product support business. Cost optimization is a high priority and includes assessing SG&A spending, rationalizing the size of our rental fleet, and other initiatives to streamline our business. I sincerely want to thank all our dedicated employees for their commitment to the success of our business.

Ryan: State DOT spending also remains elevated. Overall, we believe growth opportunities will persist as our dealership model has distinct advantages through a variety of market conditions.

Ryan Greenawalt: To close, we remain focused on selling our industry-leading dealership capabilities to expand our market share and grow our product support business. Cost optimization is a high priority and includes assessing SGNA spending, rationalizing the size of our rental fleet and other initiatives to streamline our business.

Speaker Change: To close, we remain focused on selling our industry-leading dealership capabilities to expand our market share and grow our product support business. Cost optimization is a high priority and includes assessing SG&A spending, rationalizing the size of our rental fleet, and other initiatives to streamline our business.

Ryan Greenawalt: Cost optimization is a high priority and includes assessing SG&A spending, rationalizing the size of our rental fleet, and other initiatives to streamline our business. I sincerely want to thank all our dedicated employees for their commitment to the success of our business. I also want to thank our customers, OEMs, and shareholders for your continued support and confidence in our company's strategy.

Ryan Greenawalt: I also want to thank our customers, OEMs, and shareholders for your continued support and confidence in our company's strategy. Now I'll turn it over to Tony for a detailed analysis of our financial and operating performance.

Ryan Greenawalt: I sincerely want to thank all our dedicated employees for their commitment to the success of our business. I also want to thank our customers, OEMs and shareholders, for your continued support and confidence in our company's strategy.

Speaker Change: I sincerely want to thank all our dedicated employees for their commitment to the success of our business. I also want to thank our customers, OEMs, and shareholders for your continued support and confidence in our company's strategy. Now I'll turn it over to Tony for a detailed analysis of our financial and operating performance.

Tony Colucci: Now, I'll turn it over to Tony for a detailed analysis of our financial and operating performance.

Ryan Greenawalt: Now, I'll turn it over to Tony for a detailed analysis of our financial and operating performance. Thanks, Ryan.

Tony Colucci: Thanks, Ryan.

Tony Colucci: Thanks, Ryan. Good evening, everyone.

Tony Colucci: Good evening, everyone. Thank you for your interest in Ulti-Equipment Group and our second quarter of 2024 financial results. Before I begin, I want to thank my ulti colleagues for their commitment and hard work during the quarter as we transition the business from the difficult operating conditions of the winter season towards the busy summer months. You lead with our guiding principles daily, providing our customers with best-in-class products and service capabilities, which ultimately keep their businesses in motion. Thank you.

Tony Colucci: Good evening, everyone. Thank you for your interest in ulti-equipment group and our second quarter of 2024 financial results. Before I begin, I want to thank my ulti colleagues for their commitment and hard work during the quarter as we transition the business from the difficult operating conditions of the winter season towards the busy summer months. You lead with our guiding principles daily, providing our customers with best-in-class products and service capabilities, which ultimately keep their businesses in motion.

Tony Colucci: Thanks, Ryan. Good evening, everyone. Thank you for your interest in Alta Equipment Group and our second quarter 2024 financial results. Before I begin, I want to thank my Alta colleagues for their commitment and hard work during the quarter as we transition the business from the difficult operating conditions of the winter season to our busy summer months.

Tony Colucci: Thank you for your interest in Alta Equipment Group and our second quarter 2024 financial results. Before I begin, I want to thank my Alta colleagues for their commitment and hard work during the quarter as we transitioned the business from the difficult operating conditions of the winter season to our busy summer months. You lead with our guiding principles daily, providing our customers with best-in-class products and service capabilities, which ultimately keep their businesses in motion. Thank you.

Tony Colucci: Thank you for your interest in Alta Equipment Group and our second quarter 2024 financial results. Before I begin, I want to thank my Alta colleagues for their commitment and hard work during the quarter, as we transition the business from the difficult operating conditions of the winter season to our busy summer months. You lead with our guiding principles daily, providing our customers with best-in-class products and service capabilities, which ultimately keep their businesses in motion. Thank you.

Speaker Change: You lead with our guiding principles daily, providing our customers with best in class products and service capabilities, which ultimately keep their businesses in motion. Thank you.

Tony Colucci: My remarks today will focus on four key areas. First, I'll be presenting our second quarter results as our performance ramped as expected from the seasonally impacted Q1 and continues to transition in a moderating macro environment. Second, I'll briefly recap the refinancing that occurred in Q2 and update investors on our current balance sheet position. Third, I'd like to present two new slides that we've added to our investor deck on our customer and market exposure. And lastly, I'll discuss the updated adjusted EBITDA guidance range for 2024, which was noted in the press release today. Before I get to my talking points, it should be noted that I will be referencing slides from our investor presentation throughout the call today.

Tony Colucci: My remarks today will focus on four key areas. First, I'll be presenting our second quarter results, as our performance ramped as expected from the seasonally impacted Q1 and continues to transition in a moderating macro environment. Second, I'll briefly recap the refinancing that occurred in Q2 and update investors on our current balance sheet position. Third, I'd like to present two new slides that we've added to our investor deck regarding our customer and market exposure.

Tony Colucci: Thank you. My remarks today will focus on four key areas. First, I'll be presenting our second quarter results as our performance ramped as expected from the seasonally impacted Q1 and continues to transition in a moderating macro environment. Second, I'll briefly recap the refinancing that occurred in Q2 and update investors on our current balance sheet position. Third, I'd like to present two new slides that we've added to our investor deck on our customer and market exposure.

Speaker Change: My remarks today will focus on four key areas. First, I'll be presenting our second quarter results as our performance ramped as expected from the seasonally impacted Q1 and continues to transition in a moderating macro environment.

Speaker Change: Second, I'll briefly recap the refinancing that occurred in Q2 and update investors on our current balance sheet position.

Speaker Change: Third, I'd like to present two new slides that we've added to our investor deck on our customer and market exposure.

Tony Colucci: And lastly, I'll discuss the updated adjusted EBIDTA guidance range for 2024, which was noted in the press release today. Before I get to my talking points, it should be noted that I will be referencing slides from our investor presentation throughout the call today.

Tony Colucci: And lastly, I'll discuss the updated adjusted EBITDA guidance range for 2024, which was noted in the press release today. Before I get to my talking points, it should be noted that I will be referencing slides from our investor presentation throughout the call today. I'd encourage everyone on today's call to review our presentation and our 10Q, which is available on our investor relations website at ALTG.com. With that said, for the first portion of my prepared remarks and as presented in slides 11 to 13 in the earnings deck, second quarter performance.

Speaker Change: And lastly, I'll discuss the updated Adjusted EBIDTA Guidance Range for 2024, which was noted in the press release today.

Tony Colucci: I'd encourage everyone on today's call to review our presentation and our 10-Q, which is available on our investor relations website at ALTG.com. With that said, for the first portion of my prepared remarks, and as presented in slides 11 to 13 in the earnings deck, second quarter performance. For the quarter, the company recorded revenue of $488.1 million, which is up $19.7 million versus Q2 of last year and up $46.5 million sequentially against Q1.

Speaker Change: Before I get to my talking points, it should be noted that I will be referencing slides from our investor presentation throughout the call today. I'd encourage everyone on today's call to review our presentation and our 10-Q, which is available on our investor relations website at ALTG.com.

Tony Colucci: I'd encourage everyone on today's call to review our presentation and our 10-Q, which is available on our investor relations website at ALTG.com.

Tony Colucci: With that said, for the first portion of my prepared remarks and as presented in slides 11 to 13 in the earnings deck, second quarter performance. For the quarter, the company recorded revenue of $488.1 million, which is up $19.7 million versus Q2 of last year and up $46.5 million sequentially against Q1. Embedded in the $488.1 million revenue for the quarter is a record amount of product support revenue, as parts of service combined for $144.2 million in the quarter. Despite challenges on the new equipment sales line, we continue to realize organic growth in parts of service in our parts of service departments, with that figure increasing at 6.2% year-over-year.

Speaker Change: With that said, for the first portion of my prepared remarks, and as presented in slides 11 to 13 in the earnings deck, second quarter performance.

Tony Colucci: For the quarter, the company recorded revenue of $488.1 million, which is up $19.7 million versus Q2 of last year and up $46.5 million sequentially against Q1. Embedded in the $488.1 million revenue for the quarter is a record amount of product support revenue as parts of service combined for $144.2 million in the quarter. Despite challenges on the new equipment sales line, we continue to realize organic growth in parts of service in our parts of service departments with that figure increasing at 6.2% year-over-year.

Speaker Change: For the quarter, the company recorded revenue of $488.1 million, which is up $19.7 million versus Q2 of last year, and up $46.5 million sequentially against Q1.

Tony Colucci: Embedded in the $488.1 million revenue for the quarter is a record amount of product support revenue as parts and service revenue combined for $144.2 million in the quarter. Despite challenges on the new equipment sales line, we continue to realize organic growth in our parts and service departments, with that figure increasing at 6.2% year over year. To close out the revenue lines as it relates to our rental business, we saw the naturally expected seasonal increase versus Q1, as rental revenues hit $53.7 million for the quarter, up $5.2 million from last quarter.

Tony Colucci: Embedded in the $488.1 million of revenue for the quarter is a record amount of product support revenue as parts and service revenue combined for $144.2 million in the quarter. Despite challenges on the new equipment sales line, we continue to realize organic growth in our parts and service departments, with that figure increasing at 6.2% year over year. To close out the revenue lines as it relates to our rental business, we saw the naturally expected seasonal increase versus Q1, as rental revenues hit $53.7 million for the quarter, up $5.2 million from last quarter.

Speaker Change: Embedded in the $488.1 million of revenue for the quarter is a record amount of product support revenue, as parts of service combined for $144.2 million in the quarter.

Speaker Change: Despite challenges on the new equipment sales line, we continue to realize organic growth in our parts and service departments, with that figure increasing at 6.2% year-over-year.

Tony Colucci: To close out the revenue lines as it relates to our rental business, we saw the naturally expected seasonal increase versus Q1 as rental revenues hit $53.7 million for the quarter, up $5.2 million from last quarter. Breaking down the segments briefly, once again, we saw a strong performance from our material handling segment as equipment sales margins have held up relative to last sales, and margins have held up relative to last year. And we continue to push the pace on part service and rental lines year-over-year, as those three line items were up a combined $4.3 million on an organic basis for the quarter.

Tony Colucci: To close out the revenue lines as it relates to our rental business, we saw the naturally expected seasonal increase versus Q1 as rental revenues hit $53.7 million to the quarter, up $5.2 million from last quarter. Breaking down the segments briefly, once again, we saw a strong performance from our material handling segment as equipment sales margins have held up relative to last sales and margins have held up relative to last year. And we continue to push the pace on part service and rental lines year-over-year as those three line items were up a combined $4.3 million on an organic basis for the quarter.

Speaker Change: to close out the revenue lines as it relates to our rental business we saw the naturalally and expected seasonal increase versus q one as rental revenues hit fifty-three point seven million dollars for the quarter up five point two million dollars from last quarter

Tony Colucci: Breaking down the segments briefly, once again, we saw a strong performance from our material handling segment as equipment sales margins held up relative to last year, and margins held up relative to last. And we continue to push the pace on parts service and rental lines year over year as those three line items were up a combined $4.3 million on an organic basis for the quarter. Notably, segment level income before tax improved in the second quarter, beating last year's quarter by $1.8 million on construction.

Tony Colucci: Breaking down the segments briefly, once again, we saw a strong performance from our material handling segment as equipment sales margins held up relative to last year, and margins held up relative to last. And we continue to push the pace on parts service and rental lines year over year, as those three line items were up a combined $4.3 million on an organic basis for the quarter. Notably, segment level income before tax improved in the second quarter, beating last year's quarter by $1.8 million on construction.

Speaker Change: Breaking down the segments briefly, once again we saw a strong performance from our material handling segment as equipment sales margins have held up relative to last, sales and margins have held up relative to last year.

Speaker Change: And we continue to push the pace on parts service and rental lines year over year, as those three line items were up a combined $4.3 million on an organic basis for the quarter. Notably, segment level income before tax improved in the second quarter, beating last year's quarter by $1.8 million.

Tony Colucci: Notably, segment level income before tax improved in the second quarter, beating last year's quarter by $1.8 million. On the construction, despite continued organic growth in parts service and rental revenue and increased gross margins and product support, we continue to lag our prior numbers on new and used equipment sales. As those sales were down $14.7 million versus last year on an organic basis and gross margins on new and used equipment sales, while flat versus Q1, were down 270 basis points year-over-year. We specifically noted moderating or delayed demand from our small-to-mid-side contractor customer base and the impact of an oversupply competitive equipment market, which once again impacted new and used equipment performance in the quarter.

Tony Colucci: Despite continued organic growth in parts, service, and rental revenue and increased gross margins in product support, we continue to lag our prior-year numbers on new and used equipment sales, as those sales were down $14.7 million versus last year on an organic component, and gross margins on new and used equipment sales, while flat versus Q1, were down 270 basis points year-over-year. We specifically noted moderating or delayed demand from our small to midsize contractor customer base and the impact of an oversupplied competitive equipment market, which once again impacted new and used equipment performance in the quarter.

Speaker Change: On to construction. Despite continued organic growth in parts, service, and rental revenue, and increased gross margins in product support, we continue to lag our prior year numbers on new and used equipment sales, as those sales were down $14.7 million versus last year on an organic basis.

Tony Colucci: Despite continued organic growth in parts, service, and rental revenue and increased gross margins in product support, we continue to lag our prior year numbers on new and used equipment sales, as those sales were down $14.7 million versus last year on an organic basis, and gross margins on new and used equipment sales, while flat versus Q1, were down 270 basis points year over year. We specifically noted moderating or delayed demand from our small to midsize contractor customer base and the impact of an oversupplied competitive equipment market, which once again impacted new and used equipment performance in the quarter.

Speaker Change: and Gross Margins on New and Used Equipment Sales while Flat versus Q1 were down 270 basis points year over year.

Tony Colucci: We specifically noted moderating or delayed demand from our small-to-mid-side contractor customer base and the impact of an oversupply competitive equipment market, which once again impacted new and used equipment performance in the quarter. Additionally, as it relates to the construction rental fleet, despite the increase in rental revenue versus last year, we were expecting better physical utilization in the quarter and we'll be focused on optimizing the fleet in the coming quarters as we position the balance sheet and the fleet for success heading into 2025.

Speaker Change: We specifically noted moderating or delayed demand from our small to midsize contractor customer base and the impact of an oversupplied competitive equipment market, which once again impacted new and used equipment performance in the quarter.

Tony Colucci: Additionally, as it relates to the construction rental fleet, despite the increase in rental revenue versus last year, we were expecting better physical utilization in the quarter, and we'll be focused on optimizing the fleet in the coming quarters as we position the balance sheet and the fleet for success heading into 2025. In the master distribution segment, as expected, while Q2 I'll perform to disappointing Q1 by $3.9 million in revenue and $800,000 in gross margin, the segment continues to lag last year's pace as the interest rate environment and a stocked-up dealer channel continues to impact throughput to end users in the environmental processing.

Tony Colucci: Additionally, as it relates to the construction rental fleet, despite the increase in rental revenue versus last year, we were expecting better physical utilization in the quarter and will be focused on optimizing the fleet in the coming quarters as we position the balance sheet and the fleet for success heading into 2025. In the Master Distribution segment, as expected, while Q2 outperformed a disappointing Q1 by $3.9 million in revenue and $800,000 in gross margin, the segment continues to lag last year's pace as the interest rate environment and a stocked-up dealer channel continue to impact throughput to end-users in the environmental processing market.

Tony Colucci: Additionally, as it relates to the construction rental fleet, despite the increase in rental revenue versus last year, we were expecting better physical utilization in the quarter and will be focused on optimizing the fleet in the coming quarters as we position the balance sheet and the fleet for success heading into 2025. In the master distribution segment, as expected, while Q2 outperformed a disappointing Q1 by $3.9 million in revenue and $800,000 in gross margin, the segment continues to lag last year's pace as the interest rate environment and a stocked-up dealer channel continue to impact throughput to end users in the environmental processing market.

Speaker Change: Additionally, as it relates to the construction rental fleet.

Speaker Change: Despite the increase in rental revenue versus last year, we were expecting better physical utilization in the quarter and will be focused on optimizing the fleet in the coming quarters as we position the balance sheet and the fleet for success heading into 2025.

Tony Colucci: In the master distribution segment, as expected, while Q2, I'll perform to disappointing Q1 by $3.9 million in revenue and $800,000 in gross margin, the segment continues to lag last year's pace as the interest rate environment and a stocked-up dealer channel continues to impact throughput to end users in the environmental processing, markets. All told, on a consolidated basis, we realized $50.3 million in adjusted EBITDA for the quarter, which is up $400,000 from the adjusted level of the second quarter of 2023.

Speaker Change: In the Master Distribution segment, as expected, while Q2 I'll perform the disappointing Q1

Speaker Change: three point nine million dollars

Speaker Change: and revenue in $800,000 in gross margin, the segment continues to lag last year's pace as the interest rate environment and a stocked up dealer channel continues to impact throughput to end users in the environmental processing markets.

Tony Colucci: markets. All told, on a consolidated basis, we realized $50.3 million in adjusted EBITDA for the quarter, which is up $400,000 from the adjusted level of the second quarter of 2023. On a trailing 12 basis, adjusted pro forma EBITDA is now $188.8 million, which converted into $105.2 million of economic EBITDA. As the gap between sales proceeds from rental fleet sales and the original cost of equipment blinded, and is impacting cash and cash returns in our rental sale product categories. In summary, for the second quarter, we're proud of the way the business bounced back from a difficult Q1, and while we continue to see growth and stability in our product support business funds, our new and used equipment sales have been impacted.

Tony Colucci: All told, on a consolidated basis, we realized $50.3 million in adjusted EBITDA for the quarter, which is up $400,000 from the adjusted level in the second quarter of 2023. On a trailing 12-month basis, adjusted pro forma EBITDA is now $188.8 million, which converted into $105.2 million of economic EBIT, as the gap between sales proceeds from rental fleet sales and the original cost of equipment widens and is impacting cash-on-cash returns in our rent-to-sell product category.

Speaker Change: All told, on a consolidated basis, we realized $50.3 million in adjusted EBITDA for the quarter, which is up $400,000 from the adjusted level of the second quarter of 2023.

Tony Colucci: On a trailing 12 basis, adjusted pro forma EBITDA is now $188.8 million, which converted into $105.2 million of economic EBITDA. As the gap between sales proceeds from rental fleet sales and the original cost of equipment blinded, and is impacting cash and cash returns in our rental sale product categories. In summary, for the second quarter, we're proud of the way the business bounce back from a difficult Q1, and while we continue to see growth and stability in our product support business funds, our new and used equipment sales have been impacted.

Speaker Change: On a trailing 12 basis, adjusted pro forma EBITDA is now $188.8 million.

Speaker Change: which converted into $105.2 million of economic EBIT as the gap between sales proceeds from rental fleet sales and the original cost of equipment widened and is impacting cash-on-cash returns in our rent-to-sell product categories.

Tony Colucci: In summary, for the second quarter, we are proud of the way the business bounced back from a difficult Q1, and while we continue to see growth and stability in our product support business lines, our new and used equipment sales have been impacted temporarily when compared to last year. We think this is because small to mid-sized customers in the spot equipment market are taking a wait-and-see approach to making additional capital investments in their businesses. Additionally, the lack of new equipment supply on the market has led to, in our opinion, a lack of discipline in certain product categories and regions on construction equipment pricing, which has impacted our gross margins and volumes in the quarter.

Speaker Change: In summary, for the second quarter, we are proud of the way the business bounced back from a difficult Q1, and while we continue to see growth and stability in our product support business lines,

Tony Colucci: We think temporarily, when compared to last year, small to mid-sized customers in the spot equipment market are taking a wait-and-see approach to making additional capital investments in their businesses. Additionally, the gut of new equipment supply on the market has led to, in our opinion, a lack of discipline in certain product categories and regions on construction equipment pricing, which has impacted our growth margins and volumes in the quarter. Important to note, and this gets to the diversity of our revenue streams, that while some customers take a wait-and-see approach to the next purchase, this dynamic will help to buoy our product support department as ours continue to accrue on the aging customer equipment.

Tony Colucci: We think temporarily, when compared to last year, small to mid-sized customers in the spot equipment market are taking a wait and see approach to making additional capital investments in their businesses. Additionally, the gut of new equipment supply on the market has led to, in our opinion, a lack of discipline in certain product categories and regions on construction equipment pricing, which has impacted our growth margins and volumes in the quarter. Important to note, and this gets to the diversity of our revenue streams, that while some customers take a wait and see approach to the next purchase, this dynamic will help to buoy our product support department as ours continue to accrue on the aging customer equipment. Lastly, it should be noted that we're able to manage new and used inventory appropriately for the quarter, as that line item on the balance sheet was reduced by $7.1 million versus Q1.

Speaker Change: Our new and used equipment sales have been impacted, we think temporarily, when compared to last year, as small to mid-sized customers in the spot equipment market are taking a wait-and-see approach to making additional capital investments in their businesses.

Speaker Change: Additionally, the gut of new equipment supply on the market has led to, in our opinion, a lack of discipline in certain product categories and regions on construction equipment pricing, which has impacted our gross margins and volumes in the quarter.

Tony Colucci: It is important to note, and this gets to the diversity of our revenue streams, that while some customers take a wait-and-see approach to their next purchase, this dynamic will help to buoy our product support department as hours continue to accrue on aging customer equipment.

Tony Colucci: Important to note, and this gets to the diversity of our revenue streams, that while some customers take a wait-and-see approach to the next purchase, this dynamic will help to buoy our product support department as hours continue to accrue on aging customer equipment.

Speaker Change: Important to note, and this gets to the diversity of our revenue streams, that while some customers take a wait-and-see approach to the next purchase, this dynamic will help to buoy our product support department as ours continue to accrue on the aging customer equipment.

Tony Colucci: Lastly, it should be noted that we were able to manage new and used inventories appropriately for the quarter, as that line item on the balance sheet was reduced by $7.1 million versus Q1, indicative of our focus to stick to our equipment inventory turnover KPIs in the face of a changing demand backdrop and oversupplied OEMs. Now, for the 2nd portion of my prepared remarks, I wanted to briefly comment on the refinance of our 1st and 2nd lien credit facilities that occurred midway through the 2nd quarter.

Tony Colucci: Lastly, it should be noted that we're able to manage new and used inventory appropriately for the quarter, as that line item on the balance sheet was reduced by $7.1 million versus Q1.

Speaker Change: Lastly, it should be noted that we were able to manage new and used inventories appropriately for the quarter, as that line item on the balance sheet was reduced by $7.1 million versus Q1.

Tony Colucci: Indicative of our focus to stick to our equipment inventory turnover KPIs in the face of a transitioning demand backdrop and oversupply the OEMs. Now, for the second portion of my prepared remarks, I want to briefly comment on the refinance of our first and second-line credit facilities that occurred mid-second quarter. First, we were able to amend and extend our first-line ABL facility from $485 million to $520 million and, importantly, extend the facility's maturity from 2025 to 2029. Additionally, we are able to increase the size of the size of our fuller plan financing facility by $20 million and make other necessary enhancements to our first-line credit agreement, even the growth in our business over the past few years.

Speaker Change: indicative of our focus to stick to our equipment inventory turnover KPIs in the face of a transitioning demand backdrop and oversupplied OEMs.

Speaker Change: Now, for the second portion of my prepared remarks, I wanted to briefly comment on the refinance of our first and second lien credit facilities that occurred mid-second quarter.

Tony Colucci: First, we were able to amend and extend our 1st lien ABL facility from 485M to 520M dollars, and importantly, extend the facility's maturity from 2025 to 2029. Additionally, we were able to increase the size of our floor plan financing facility by 20M dollars and make other necessary enhancements to our 1st lien credit agreement given the growth of our business over the past few years. Second, we sold $500 million in 9% second lien senior secured notes maturing in 2029, the proceeds of which were used to pay off the $315 million in notes that were effectively set to mature at 1231.25 and to enhance liquidity on the balance sheet.

Speaker Change: First, we were able to amend and extend our first lane ABL facility from $485 million to $520 million.

Speaker Change: and importantly, extend the facility.

Speaker Change: the facility's maturity from 2025 to 2029. Additionally, we are able to increase the size of the size of our floor plan financing facility by 20 million dollars and make other necessary enhancements to our first lien credit agreement given the growth in our business over the past few years.

Tony Colucci: Additionally, we are able to increase the size of the size of our fuller plan financing facility by $20 million and make other necessary enhancements to our first-line credit agreement, even the growth in our business over the past few years. Second, we sold $500 million and 9% second-line senior secure notes, maturing in 2029, proceeds of which were used to pay off the $315 million notes that were effectively set to mature at $1231.25 and to enhance liquidity on the balance sheet.

Tony Colucci: Second, we sold $500 million in 9% second-line senior secured notes, maturing in 2029, proceeds of which were used to pay off the $315 million notes that were effectively set to mature at $1,231.25 and to enhance liquidity on the balance sheet. Importantly, investors should note that the new notes, similar to the old, have no current restrictive financial covenants on the business, allowing for max operating flexibility. Effectively, this refinance of the first and second-line positions on our balance sheet pushed out in $870 million maturity, well, from $1231.25 to mid-20029 and generated approximately $150 million of liquidity for the business.

Speaker Change: Second, we sold $500 million in 9% second lien senior secured notes maturing in 2029, proceeds of which were used to pay off the $315 million in notes that were effectively set to mature at 1231.25 and to enhance liquidity on the balance sheet.

Tony Colucci: Importantly, investors should note that the new notes, similar to the old, have no current restrictive financial covenants on the business, allowing for max operating flexibility. Effectively, this refinance of the first and second-line positions on our balance sheet pushed out in $870 million maturity, well, from $1231.25 to mid-20029 and generated approximately $150 million of liquidity for the business. As it relates to credit metrics for the quarter, given the fees and OID associated with the refinance and the updated reduced diva dot guidance, our leverage ratio was 4.4 times 2024 forward diva dot as of June 30, a level that we expect is temporary and manageable as we focus to pair down on underutilized inventory and reduce rent to self-lead categories in the second half.

Tony Colucci: Importantly, investors should note that the new notes, similar to the old ones, have no current restrictive financial covenants on the business, allowing for maximum operating flexibility. Additionally, this refinance of the first and second lead positions on our balance sheet pushed out an $870 million maturity wall from 12-31-25 to mid-2029 and generated approximately $150 million of liquidity for the business. As it relates to credit metrics for the quarter, given the fees and OID associated with the refinance and the updated reduced EBITDA guidance, our leverage ratio was 4.4 times 2024 forward EBITDA as of June 30, a level that we expect is temporary and manageable as we focus on pare down on underutilized inventory and reduce rent to self-lead categories in the second half.

Tony Colucci: Importantly, investors should note that the new notes, similar to the old ones, have no current restrictive financial covenants on the business, allowing for maximum operating flexibility. Additionally, this refinance of the first and second-league positions on our balance sheet pushed out an $870 million maturity wall from 12-31-25 to mid-2029 and generated approximately $150 million of liquidity for the business. As it relates to credit metrics for the quarter, given the fees and OID associated with the refinance and the updated reduced EBITDA guidance, our leverage ratio was 4.4 times 2024 forward EBITDA as of June 30, a level that we expect is temporary and manageable as we focus on pare down on underutilized inventory and reduce rent-to-sell fleet categories in the second half.

Speaker Change: Importantly, investors should note that the new notes, similar to the old, have no current restricted financial covenants on the business, allowing for max operating flexibility.

Tony Colucci: From a liquidity perspective, given the refinance, the business now has approximately $300 million in liquidity on the AVL revolver as of June 30, providing for plenty of flexibility to continue and execute in any macro environment that lies at, for the third portion of my prepared remarks.

Speaker Change: Effectively, this refinance of the first and second league positions on our balance sheet pushed out an $870 million maturity wall from 12-31-25 to mid-2029 and generated approximately $150 million of liquidity for the business.

Tony Colucci: As it relates to credit metrics for the quarter, given the fees and OID associated with the refinance and the updated reduced diva dot guidance, our leverage ratio was 4.4 times 2024 forward diva dot as of June 30, a level that we expect is temporary and manageable as we focus to pair down on underutilized inventory and reduce rent to self-lead categories in the second half. From a liquidity perspective, given the refinance, the business now has approximately $300 million in liquidity on the AVL revolver as of June 30, providing for plenty of flexibility to continue and execute in any macro environment that lies ahead.

Speaker Change: As it relates to credit metrics for the quarter, given the fees and OID associated with the refinance and the updated reduced FIBA dock items.

Speaker Change: Our leverage ratio was 4.4 times 2024 forward EBITDA as of June 30. A level that we expect is temporary and manageable as we focus to pare down on underutilized inventory and reduce rent-to-sell fleet categories in the second half.

Tony Colucci: From a liquidity perspective, given the refinance, the business now has approximately $300 million in liquidity on the ABL revolver as of June 30, providing for plenty of flexibility to continue and execute in any macro environment that lies ahead. For the third portion of my prepared remarks, I'd like to point investors to slides 26 and 27 of our investor deck, which present an analytical estimate of the breakdown of Alta's revenues by end market segment. A couple of notes on the slides.

Speaker Change: From a liquidity perspective, given the refinance, the business now has approximately $300 million in liquidity on the ABL revolver as of June 30, providing for plenty of flexibility to continue and execute in any macro environment that lies ahead.

Tony Colucci: for the third portion of my prepared remarks. I'd like to point investors to slides 26 and 27 of our investor deck, which present an anticolytical estimate of the breakdown of Alta's revenues by end-market segment. A couple of notes on the slides. First, our end-market diversification is something we have always been proud of and have spoken to in the past, and I'm now pleased to be able to provide investors with more specifics on that diversity. As you will see in the slides, the overall theme is that despite the names of our segments, material handling and construction, which monitors relate to the type of product sold in those verticals, our vast customer base and product offerings take us to an enviable position on the diversification of our end-market.

Tony Colucci: For the third portion of my prepared remarks, I'd like to point investors to slides 26 and 27 of our investor deck, which present an analytical estimate of the breakdown of Alta's revenues by end market segment. A couple of notes on the slides.

Tony Colucci: I'd like to point investors to slides 26 and 27 of our investor deck, which present an anticolytical estimate of the breakdown of Alta's revenues by end-market segment. A couple of notes on the slides. First, our end-market diversification is something we have always been proud of and have spoken to in the past, and I'm now pleased to be able to provide investors with more specifics on that diversity. As you will see in the slides, the overall theme is that despite the names of our segments, material handling and construction, which monitors relate to the type of product sold in those verticals, our vast customer base and product offerings take us to an enviable position on the diversification of our end-market.

Speaker Change: for the third portion of my prepared remarks i'd like to point investors to slide twenty-six and twenty seven of our investor deck which present an anical of analytical estimate of the breakdown of ul as revenues by end-market segment

Tony Colucci: First, our end market diversification is something we have always been proud of and have spoken about in the past, and I'm now pleased to be able to provide investors with more specifics on that diversification. As you will see in the slides, the overall theme is that despite the names of our segments, Material Handling and Construction, which moniker relate to the type of products sold in those verticals, our vast customer base and product offerings take us to an enviable position in the diversification of our NMARC.

Tony Colucci: First, our end market diversification is something we have always been proud of and have spoken about in the past, and I'm now pleased to be able to provide investors with more specifics on that diversity. As you will see in the slides, the overall theme is that despite the names of our segments, material handling and construction, which moniker relate to the type of products sold in those verticals, our vast customer base and product offerings take us to an enviable position in the diversification of our end market.

Speaker Change: A couple of notes on the slides. First, our end market diversification is something we have always been proud of and have spoken to in the past, and I'm now pleased to be able to provide investors with more specifics on that diversity.

Speaker Change: As you will see in the slides, the overall theme is that despite the names of our segments, material handling and construction, which monikers relate to the type of products sold in those verticals, our vast customer base and product offerings take us to an enviable position on the diversification of our end markets.

Tony Colucci: As an example, on slide 26 in the material handling segment, investors will note that one, the largest end-market for the segment is the defensive food and beverage category, which accounts for an estimated 15% of the segment's revenue. Two, beyond food and beverage, the next 70% of our material handling revenue comes from 16 distinct sick code categories that each have multiple subcategories and range from automotive manufacturing to medical supplies distribution to municipalities and education to chemical and paper manufacturing to wholesale and retail distribution and logistics, to name a few. On the construction segment on slide 27, a couple of notes here.

Tony Colucci: As an example, on slide 26, in the material handling segment, investors will note that 1, the largest end market for the segment is the defensive food and beverage category, which accounts for an estimated 15% of the segment's revenue. 2. Beyond food and beverage, the next 70% of our material handling revenue comes from 16 distinct SIC code categories that each have multiple subcategories and range from automotive manufacturing to medical supplies distribution to municipalities and education to chemical and paper manufacturing to wholesale and retail distribution and logistics, to name a few.

Speaker Change: As an example, on slide 26 in the material handling segment, investors will note that one, the largest end market for the segment is the defensive food and beverage category, which accounts for an estimated 15% of the segment's revenue.

Speaker Change: Beyond food and beverage, the next 70% of our material handling revenue comes from 16 distinct SIC code categories.

Speaker Change: that each have multiple subcategories and range from automotive manufacturing, to medical supplies distribution, to municipalities and education, to chemical and paper manufacturing, to wholesale and retail distribution and logistics, to name a few.

Tony Colucci: On the construction segment on slide 27, I have a couple of notes here. 1. Road builders and contracts tied to infrastructure spending represent a healthy cross-section of our customer base and should help provide stability for years to come, given all the things at play in that arena. Our industrial roots in the Midwest are evident and reflected in categories such as manufacturing, scrap, and demolition. Note that a combined 18% of the construction segment revenue is coming from what are effectively municipalities and utilities. And 4.

Tony Colucci: On the construction segment on slide 27, there are a couple of notes here. One, road builders and contracts tied to infrastructure spending represent a healthy cross-section of our customer base and should help provide stability for years to come, given all the things at play in that arena. Two, our industrial roots in the Midwest are evident and reflected in categories such as manufacturing, scrap, and demolition. Note that a combined 18% of the construction segment revenue is coming from what are effectively municipalities and utilities. And 4.

Tony Colucci: On the construction segment on slide 27, a couple of notes here. One, world builders and contracts tied to infrastructure spending represents a healthy cross-section of our customer base, and should help provide stability for years to come giving all the things that play in that arena. Two, our industrial routes in the Midwest are evident and reflected in the categories such as manufacturing, scrap, and demolition. Three, note that a combined 18% of the construction segment revenue is coming from what are effectively municipalities and utilities.

Speaker Change: On the construction segment on slide 27, a couple of notes here.

Tony Colucci: One, world builders and contracts tied to infrastructure spending represents a healthy cross-section of our customer base, and should help provide stability for years to come, giving all the things that play in that arena. Two, our industrial routes in the Midwest are evident and reflected in the categories such as manufacturing, scrap, and demolition. Three, note that a combined 18% of the construction segment revenue is coming from what are effectively municipalities and utilities. And four, 14% of our businesses related to agricultural and for agriculture in forestry and aggregate mining, with the bulk of that exposure coming from our latest acquisition of all in Canada.

Speaker Change: One, road builders and contracts tied to infrastructure spending represents a healthy cross section of our customer base and should help provide stability for years to come, giving all the things at play in that arena.

Speaker Change: 2. Our industrial roots in the Midwest are evident and reflected in the categories such as manufacturing, scrap, and demolition.

Speaker Change: 3. Note that a combined 18% of the construction segment revenue is coming from what are effectively municipalities and utilities.

Tony Colucci: A combined 14% of our business is related to agriculture and forestry and aggregate mining, with the bulk of that exposure coming from our latest acquisition of ALP in Canada. In summary, we believe our end market diversification is an advantage for us, both from a risk mitigation and commercial perspective, as our teams are constantly gaining insights, sharing ideas, and ultimately cross-selling our products and solutions offerings across a wide spectrum of end markets.

Tony Colucci: And four, 14% of our businesses related to agricultural and for agriculture in forestry and aggregate mining with the bulk of that exposure coming from our latest acquisition of all in Canada. In summary, we believe our end-market diversification is the advantage for us, both from a risk mitigation and commercial perspective as our teams are constantly gaining insights, sharing ideas, and ultimately cross-selling our products and solution solutions offerings across the wide spectrum of end markets.

Speaker Change: and four fourteen combin fourteen percent of our businessesis related to agricultural and for agriculture in forestry and aggregate mining with the bulk of that exposure coming from our latest acquisition of all in canada

Tony Colucci: In summary, we believe our end-market diversification is the advantage for us, both from a risk mitigation and commercial perspective, as our teams are constantly gaining insights, sharing ideas, and ultimately cross-selling our products and solution solutions offerings across the wide spectrum of end markets.

Speaker Change: In summary, we believe our end-market diversification is an advantage for us, both from a risk mitigation and commercial perspective, as our teams are constantly gaining insights, sharing ideas, and ultimately cross-selling our products and solutions offerings across a wide spectrum of end markets.

Tony Colucci: Now, for the last portion of my prepared remarks, I want to present our insights on our updated EBITDA guidance for 2024. In terms of the number, we now expect to report $190 to $200 million of adjusted EBITDA for the year 2024. A few observations. First, headwinds. As many industry participants have noted, deliveries of new construction equipment to customers in North America is now meaningfully in the first half of 2024, which runs counter to expectations of a flat to modest growth year and equipment sales when we entered 2024. As mentioned, we've seen this impact most acutely with our small and midsize contractor customers, and as the references to higher interest rates and uncertainties surrounding the election have gotten more pronounced as the year has gone on.

Speaker Change: Now, for the last portion of my prepared remarks, I want to present our insights on our updated EBITDA guidance for 2024.

Speaker Change: In terms of the number, we now expect to report $190 to $200 million of adjusted EBITDA for the full year 2024. A few observations. First, headwinds.

Tony Colucci: As many industry participants have noted, deliveries of new construction equipment to customers in North America are down meaningfully in the first half of 2024, which runs counter to expectations of a flat to modest growth year in equipment sales when we enter 2021. As mentioned, we've seen this impact most acutely with our small and mid-sized contractor customers as the references to higher interest rates and uncertainty surrounding the election have gotten more pronounced as the year has gone on.

Speaker Change: As many industry participants have noted, deliveries of new construction equipment to customers in North America is down meaningfully in the first half of 2024, which runs counter to expectations of a flat to modest growth year in equipment sales when we enter 2024.

Tony Colucci: As mentioned, we've seen this impact most acutely with our small and midsize contractor customers, and as the references to higher interest rates and uncertainties surrounding the election have gotten more pronounced as the year has gone on. The dip in the market has impacted the new news equipment line in the construction segment and at ecoverse, more than our internal risk adjusted models expected, and we suspect pressure will continue to be evident in the second half of 2024.

Speaker Change: As mentioned, we've seen this impact most acutely with our small and mid-sized contractor customers as the references to higher interest rates and uncertainty surrounding the election have gotten more pronounced as the year has gone on.

Tony Colucci: The dip in the market has impacted the new news equipment line in the construction segment and at Ecoverse, more than our internal risk adjusted models expected, and we suspect pressure will continue to be evident in the second half of 2024. Additionally, the oversupply of equipment in the construction markets has led to compressed gross margins in new equipment. As mentioned previously, we have observed what we termed to be undisciplined, competitive pricing in certain product categories and regions. It follows that, to compete and hold the valuable share that we've earned over the years, we've had to accept skinnier-than-historic margins on equipment deals.

Tony Colucci: The dip in the market has impacted the new and used equipment lines in the construction segment and at Eco-Verse more than our internal risk-adjusted models expected, and we suspect pressure will continue to be evident in the second half of 2024. Additionally, the oversupply of equipment in the construction markets has led to compressed gross margins on new equipment. As mentioned previously, we have observed what we term to be undisciplined competitive pricing in certain product categories and regions.

Tony Colucci: The dip in the market has impacted the new and used equipment lines in the construction segment and at EcoVerse more than our internal risk-adjusted models expected, and we suspect pressure will continue to be evident in the second half of 2024. Additionally, the oversupply of equipment in the construction markets has led to compressed gross margins on new equipment. As mentioned previously, we have observed what we term to be undisciplined competitive pricing in certain product categories and regions.

Speaker Change: The dip in the market has impacted the new and used equipment line in the construction segment and at EcoVerse more than our internal risk adjusted models expected and we suspect pressure will continue to be evident in the second half of 24.

Tony Colucci: Additionally, the oversupply of equipment in the construction markets has led to compressed gross margins in new equipment. As mentioned previously, we have observed what we termed to be undisciplined, competitive pricing in certain product categories and regions. It follows that to compete and hold the valuable share that we've earned over the years, we've had to accept skinnier than historic margins on equipment deals. Again, this margin compression has all paced our risk adjusted internal models, and we suspect the pressure to continue so long as the overhang and supply in the industry persists.

Speaker Change: Additionally, the oversupply of equipment in the construction markets has led to compressed gross margins in new equipment. As mentioned previously, we have observed what we term to be undisciplined competitive pricing in certain product categories and regions.

Tony Colucci: It follows that to compete and hold the valuable share that we've earned over the years, we've had to accept skinnier than historic margins on equipment. Again, this margin compression has outpaced our risk-adjusted internal models, and we suspect the pressure will continue so long as the overhang and supply in the industry persists. Lastly, the two above factors have led to less than anticipated utilization of our rental fleet and despite the seasonal ramp, and the seasonal ramp in Q2, while notable, wasn't as steep as we expected and out of line with the size of the fleet we're carrying.

Tony Colucci: It follows that to compete and hold the valuable share that we've earned over the years, we've had to accept skinnier-than-historic margins on equipment. Again, this margin compression has outpaced our risk-adjusted internal models, and we suspect the pressure will continue so long as the overhang and supply in the industry persists. Lastly, the two above factors have led to less than anticipated utilization of our rental fleet and despite the seasonal ramp, and the seasonal ramp in Q2, while notable, wasn't as steep as we expected and out of line with the size of the fleet we're carrying.

Speaker Change: It follows that to compete and hold the valuable share that we've earned over the years, we've had to accept skinnier-than-historic margins on equipment deals.

Tony Colucci: Again, this margin compression has all paced our risk-adjusted internal models, and we suspect the pressure to continue so long as the overhang and supply in the industry persists. Lastly, the two above factors have led to less than anticipated utilization of our rental fleet. And despite the seasonal ramp and the seasonal rampage you chewed to, while notable, wasn't as steep as we expected and out of the line with the size fleet we were carrying. That said, given our rent to sell business models, specifically in the construction segment, we expect to quickly right size the fleet in the coming quarters and to get back in line with our utilization targets into demand for rental fleet in our markets.

Speaker Change: Again, this margin compression has outpaced our risk-adjusted internal models, and we suspect the pressure to continue so long as the overhang in supply in the industry persists.

Tony Colucci: Lastly, the two above factors have led to less than anticipated utilization of our rental fleet. And despite the seasonal ramp and the seasonal rampage you chewed to while notable, wasn't as steep as we expected and out of the line with the size fleet we were carrying. That said, given our rent to sell business models, specifically in the construction segment, we expect to quickly right size the fleet in the coming quarters and to get back in line with our utilization targets into demand for rental fleet in our markets.

Speaker Change: Lastly, the two above factors have led to less than anticipated utilization of our rental fleet, and despite the seasonal ramp,

Speaker Change: And the seasonal ramp in Q2, while notable, wasn't as steep as we expected and out of line with the size fleet we were carrying. That said, given our rent-to-sell business model, specifically in the construction segment,

Tony Colucci: That said, given our rent-to-sell business model, specifically in the construction segment, we expect to quickly right-size the fleet in the coming quarters and to get back in line with our utilization targets and the demand for rental fleets in our market. Now we have some tailwinds as we head to the second half.

Speaker Change: We expect to quickly right-size the fleet in the coming quarters and to get back in line with our utilization targets and the demand for rental fleet in our markets.

Tony Colucci: Now, some tailwinds as we head to the second half. First, our material handling segment has had a good first half of 2024, and we expect to have a strong second half and continue to sell as we continue to sell out of a solid backlog and take market share in key geographies and product classes. Additionally, we expect the peak logic business to ramp as interest rates come in. In fact, recent activity at peak supports the species. Second, as Ryan mentioned, we're expecting notable revenue from the mobility segment in the second half of 24 as the work associated with credentialing ourselves and developing relationships with commercially B and charging OEMs in the over-the-road space starts to bear fruit.

Tony Colucci: First, our material handling segment had a good first half of 2024, and we expect to have a strong second half and continue to sell as we continue to sell out of a solid backlog and gain market share in key geographies and product classes. Additionally, we expect the Peak Logic business to ramp as interest rates come in. In fact, recent activity at Peak supports this thesis.

Tony Colucci: Now some tailwinds as we head to the second half. First, our material handling segment has had a good first half of 2024, and we expect to have a strong second half and continue to sell as we continue to sell out of a solid backlog and take market share in key geographies and product classes. Additionally, we expect the peak logic business to ramp as interest rates come in. In fact, recent activity at peak supports the species.

Tony Colucci: Second, as Ryan mentioned, we're expecting notable revenue from the mobility segment in the second half of 24 as the work associated with credentialing ourselves and developing relationship with commercially B and charging OEMs in the over the road space starts to bear fruit. Lastly, given some of the challenges we faced on the revenue and gross margin lines in the first half of 24, we've taken proactive measures to manage down our overhead costs and are actively looking for ways to automate and drive costs out of the business, which will help the business in the second half of the year and over the long term.

Speaker Change: Now some tailwinds as we head to the second half. First, our material handling segment has had a good first half of 2024 and we expect to have a strong second half and continue to sell as we continue to sell out of a solid backlog and take market share and key geographies and product

Speaker Change: Additionally, we expect the Peak Logic business to ramp as interest rates come in. In fact, recent activity at Peak supports this thesis.

Tony Colucci: Second, as Ryan mentioned, we're expecting notable revenue from the mobility segment in the second half of 2024, as the work associated with credentialing ourselves and developing relationships with commercial EV and charging OEMs in the over-the-road space starts to bear fruit. Lastly, given some of the challenges we faced on the revenue and gross margin lines, in the first half of 24, we've taken proactive measures to manage down our overhead costs and are actively looking for ways to automate and drive costs out of the business, which will help the business in the second half of the year and over the long term.

Speaker Change: Second, as Ryan mentioned, we're expecting notable revenue from the e-mobility segment in the second half of 2024, as the work associated with credentialing ourselves and developing relationship with commercial EV and charging OEMs in the over-the-road space starts to bear fruit.

Tony Colucci: Lastly, given some of the challenges we faced on the revenue and gross margin lines in the first half of 24, we've taken proactive measures to manage down our overhead costs and are actively looking for ways to automate and drive costs out of the business, which will help the business in the second half of the year and over the long term.

Speaker Change: lastly given some of the challenges we faced on the revenue gross margin lines

Speaker Change: in the first half of twenty-four we've taken proactive measures to manage down our overhead costs and are actively looking for waste automating dve costs of the business which will help the business in the second half of the year and over the long term

Tony Colucci: In closing, I would say that we remain bullish about our long-term prospects at Ulta and that we believe some of the current dynamics in the market today could prove to be transitory. In the meantime, Ryan and Ryan are 3,000 teammates. Look forward to the challenge in front of us in the second half of 24, which will be one focus on winning new customers and market share gains to help offset a potentially weaker macro environment, creating new revenue streams and emerging business lines like E-mobility, and cost and fleet optimization to position the business for through the success as we look forward to a strong 2025.

Tony Colucci: In closing, I would say that we remain bullish about our long-term prospects at Alta and that we believe some of the current dynamics in the market today could prove to be transitory. In the meantime, Ryan and I and our 3,000 teammates look forward to the challenge in front of us in the second half of 2024, which will be one focused on winning new customers and market share gains to help offset a potentially weaker macro environment, creating new revenue streams and emerging business lines like e-mobility, and cost and fleet optimization to position the business for further success as we look forward to a strong 2024. Thanks for your time and attention, and I'll turn it back over to the operator for Q&A.

Tony Colucci: In closing, I would say that we remain bullish about our long-term prospects at Alta and that we believe some of the current dynamics in the market today could prove to be transitory. In the meantime, Ryan and I and our 3,000 teammates look forward to the challenge in front of us in the second half of 24, which will be one focused on winning new customers and market share gains to help offset a potentially weaker macro environment, creating new revenue streams and emerging business lines like e-mobility, and cost and fleet optimization to position the business for further success as we look forward to a strong 2021. Thanks for your time and attention, and I'll turn it back over to the operator for Q&A.

Tony Colucci: In closing, I would say that we remain bullish about our long term prospects at Ulta and that we believe some of the current dynamics in the market today could prove to be transitore. In the meantime, Ryan and Ryan are 3,000 teammates. Look forward to the challenge in front of us in the second half of 24, which will be one focus on winning new customers and market share gains to help offset a potentially weaker macro environment, creating new revenue streams and emerging business lines like E-mobility, and cost and fleet optimization to position the business for through the success as we look forward to a strong 2025.

Speaker Change: In closing, I would say that we remain bullish about our long-term prospects at Alta and that we believe some of the current dynamics in the market today could prove to be transitory.

Speaker Change: In the meantime, Ryan and I and our 3,000 teammates look forward to the challenge in front of us in the second half of 24, which will be one focused on winning new customers and market share gains to help offset a potentially weaker macro environment.

Speaker Change: Creating new revenue streams and emerging business lines like e-mobility and cost and fleet optimization to position the business for further success as we look forward to a strong 2025.

Operator: Thanks for your time and attention, and I'll turn it back over to the operator for Q&A. Absolutely.

Tony Colucci: Thanks for your time and attention and I'll turn it back over to the operator for Q&A. Absolutely.

Speaker Change: Thanks for your time and attention, and I'll turn it back over to the operator for Q&A.

Operator: We will now begin the Q&A session. If you'd like to ask a question at this time, please dial star 1 on your keypad. For any reason you would like to remove that question, please dial. We'll pause here briefly as questions are called in. The first question is from the line of Matt Summerville with D.A. Davidson. Your line is now open. Hi there, you've got Canyon Hayes on for Matt Summer

Operator: We will now begin the Q&A. If you'd like to ask a question at this time, please dial star 1 on your phone. For any reason you would like to remove that question, please dial. We'll pause here briefly as questions are answered. The first question is from the line of Matt Summerville with D.A. Davidson. Your line is now open. Hi there, you've got Canyon Haze on for Matt Summerville today.

Operator: We will now begin the Q&A session. If you'd like to ask a question at this time, please dial star one on your telephone keypad. If, for any reason, you would like to remove that question, please dial star Q. We'll pause you briefly as questions are generated in the Q.

Operator: We will now begin the Q&A session. If you'd like to ask a question at this time, please dial star one on your telephone keypad. If for any reason you would like to remove that question, please dial star Q. We'll pause your briefly as questions are generated in the Q.

Speaker Change: absolutely we will now begin the q and a session if you'd like to ask a question at this time please th' star one on your telephone key paths if for any reason you would like to remove that question please i' start to

Speaker Change: We'll pause here briefly as questions are generated in the queue.

Matt Somerville: The first question is from the line of Matt Somerville with DA Davidson.

Matt Somerville: The first question is from the line of Matt Somerville with DA Davidson. Your line is now open. Hi there. You've got Kenny and Hazel from Matt Somerville today. Hey, I was wondering if we could maybe get a little bit more detail. Oh, hi, good things. I don't know if we could get a little bit more detail on the reduction on the EBITDA guidance. Maybe a bridge down to the new midpoint. If you rank order some of the drivers, so we're included in the commentary.

Canyon Hayes: Your line is now open. Hi there. You've got Kenny and Hazel from Matt Somerville today.

Speaker Change: The first question is from the line of Matt Summerville with D.A. Davidson. Your line is now open.

Canyon Haze: Hi there, you've got Canyon Haze on for Matt Summerville today.

Canyon Hayes: Hey, I was wondering if we could maybe get a little bit more detail. Oh, hi, good things. I don't know if we could get a little bit more detail on the reduction on the EBITDA guidance. Maybe a bridge down to the new midpoint. If you rank order some of the drivers, so we're included in the commentary. Yeah, I mean, you can almost directly correlate the reduction to the commentary; the vast majority of the reduction, I should say, to the commentary on new and used equipment in the construction segment primarily. This is primarily a spot market that we participate in against large, you know, other OEMs like Caterpillar, John Deere, Kamatsu, etc.

Canyon Haze: Hey, I was wondering if we could maybe get a little bit more detail, oh hi, good thanks, I was wondering if we could get a little bit more detail on the reduction on the EBITDA guidance, maybe a bridge down to the new midpoint, maybe rank order some of the drivers that were included in the commentary?

Canyon Hayes: Yeah, I mean, you could almost directly correlate that the reduction to the commentary, the vast majority of the reduction, I should say, to the commentary on new and used equipment in the construction segment. Primarily, this is primarily a spot market that we participate in against large, you know, other OEMs like Caterpillar, John Deere, Komatsu, etc. And the reduction in sales overall, just the demand going down in that small to mid-sized contractor base, and then the margins related to that equipment, are the primary driver.

Matt Somerville: Yeah, I mean, you can almost directly correlate the reduction to the commentary, the vast majority of the reduction, I should say, to the commentary on new and used equipment in the construction segment primarily. This is primarily a spot market that we participate in against large, you know, other OEMs like Caterpillar, John Deere, Kamatsu, etc. And the reduction in sales overall, just the demand going down in that small, the mid-sized contractor base.

Speaker Change: Yeah, I mean, you could almost directly correlate the reduction to the commentary, the vast majority of the reduction, I should say, to the commentary on new and used equipment in the construction segment.

Speaker Change: primarily. This is primarily a spot market that we participate in against large, you know, other OEMs like Caterpillar, John Deere, Komatsu, etc., and

Canyon Hayes: And the reduction in sales overall, just the demand going down in that small, the mid-sized contractor base. And then the margins related to that equipment are the primary driver. Beyond that, I think it would be, you know, two A and B would be eco versus performance. In the second quarter, we had a red and nice April; then we saw a pullback, kind of in the back half of the quarter, if you will. And also just our rental fleet utilization and expecting to do a little bit more there. So those, that's kind of how I would rank the items that caused the guidance to come down.

Canyon Haze: The reduction in sales overall, just demand going down in that small to mid-sized contractor base, and then the margins related to that equipment are the primary driver. Beyond that, I think the two A and B would be eco versus performance. In the second quarter, we had a nice April, then we saw a pullback kind of in the back half of the quarter, if you will, and also just our rental fleet utilization and expecting to do a little bit more there. So that's kind of how I would rank the items that caused the guidance that comes.

Canyon Haze: the reduction in sales overall, just demand going down in that small to midsize contractor base.

Matt Somerville: And then the margins related to that equipment is the primary driver. Beyond that, I think it would be, you know, two A and B would be eco versus performance. In the second quarter, we had a red and nice April, then we saw a pullback kind of in the back half of the quarter, if you will. And also just our rental fleet utilization and expecting to do a little bit more there.

Speaker Change: and then the margins related to...

Speaker Change: to that equipment is the primary driver. Beyond that, I think it would be

Canyon Hayes: Beyond that, I think it would be, you know, 2A and B would be eco versus performance. In the second quarter, we had a nice April, then we saw a pullback kind of in the back half of the quarter, if you will, and also just our rental fleet utilization and expecting to do a little bit more there. So, that's kind of how I would rank the items that caused the guidance that comes.

Speaker Change: 2A and B would be eco versus performance.

Canyon Haze: In the second quarter, we had a nice April , then we saw a pullback kind of in the back half of the quarter, if you will, and also just our rental fleet utilization and expecting to do a little bit more there.

Matt Somerville: So those, that's kind of how I would rank the items that caused the guidance to come down. Great, thanks. Thank you.

Canyon Haze: So, that's kind of how I would rank the items that caused the...

Canyon Hayes: Great, thanks.

Canyon Haze: the guidance to come down.

Steven Hansen: Thank you. The next question is from the line of Steve Hansen with Raymond James. Your line is now open. Oh, yeah, good. I think I said good. Just wanted to dig back into the same question on the guide. Is a certain part of categories that sounds like small and the inside contractors or sort of the customer, but is it shovels? Where are you seeing the most pressure? Is it broad based? And is it across your entire territory? Or is it more focused on certain states?

Operator: Thank you. The next question is from the line of Steve Hansen with Raymond James. Your line is now open.

Steve Hansen: Thank you. The next question is from the line of Steve Hansen with Raymond James. Your line is now open.

Steve Hansen: The next question is from the line of Steve Hansen with Raymond James. Your line is now open. Oh, yeah, good. I think I said good. Just wanted to dig back into the same question on the guide. Is a certain part of categories that sounds like small and the inside contractors or sort of the customer, but is it shovels? Where are you seeing the most pressure? Is it broad based? And is it across your entire territory? Or is it more focused on certain states?

Speaker Change: Thank you. The next question is from the line of Steve Hansen with Raymond James. Your line is now open.

Steve Hansen: Oh, yeah, I can definitely say different. I just wanted to dig back into the same question on the guide.

Steve Hansen: Oh, yeah, I think I just wanted to dig back into the same question on the guide. Is there a certain product category? It sounds like small to medium sized contractors or the customer, but are they shovels? Where are you seeing the most pressure? Is it broad-based? And is it across your entire territory? Or is it more focused on certain states?

Steve Hansen: I just wanted to dig back into the same question on the guide. Is there a certain product category that sounds like small to medium-sized contractors or sort of the customer, but is it shovels? Where are you seeing the most pressure? Is it broad-based?

Steve Hansen: Is there a certain product category? It sounds like some of the medium-sized contractors or sort of the customer, but is it shovels? Where are you seeing the most pressure? Is it broad-based? And is it across your entire territory? Or is it more focused on certain states?

Speaker Change: And is it across your entire territory, or is it more focused on certain states?

Tony Colucci: Steve, I'll take that one. You know, I think Brian mentioned in his remarks where the Midwest states have been impacted just from a broad demand perspective versus, let's say, Florida. As you know, Florida is a massive equipment market. So that being down has been probably the biggest impact for us. I would just say Florida and Michigan are primarily the most impacted here from the demand side. In terms of what categories are impacted, I would say that from a margin perspective, in a pricing perspective, it would be the big heavy stuff.

Tony Colucci: Steve, I'll take that one. You know, I think Brian mentioned in his remarks where the Midwest states have been impacted just from a broad demand perspective versus, let's say, Florida. As you know, Florida is a massive equipment market. So that being down has been probably the biggest impact for us. I would just say Florida and Michigan are primarily the most impacted here from the demand side. In terms of the, you know, what categories are impacted, I would say that from a margin perspective, from a pricing perspective, it would be the big heavy stuff.

Ryan Greenawalt: I'll take that one. You know, I think Brian mentioned in this remarks, where the Midwest states have been impacted just from a broad demand perspective versus, let's say, Florida. As you know, Florida is a massive equipment market. So that being down has been probably the biggest impact for us. I would just say Florida and Michigan primarily; the most impact is you're from the demand side. In terms of, in terms of what categories impacted, I would say that from a margin perspective and a pricing perspective, it would be the big heavy stuff. So articulated dump trucks, 40 times articulated dump trucks down in Florida, where we're seeing some of this pricing discipline erode on those larger product categories.

Ryan Greenawalt: I'll take that one. You know, I think Brian mentioned in this remarks, where the Midwest states have been impacted just from a broad demand perspective versus, let's say Florida. As you know, Florida is a massive equipment market. So that being down has been probably the biggest impact for us. I would just say Florida and Michigan primarily, the most impact is you're from the demand side. In terms of, in terms of what categories impacted, I would say that from a margin perspective and a pricing perspective, it would be the big heavy stuff.

Speaker Change: I'll take that one.

Speaker Change: You know, I think Brian mentioned in his remarks where the Midwest states have been impacted just from a broad demand perspective versus, let's say, Florida.

Canyon Haze: um

Speaker Change: As you know, Florida is a massive equipment market, so that being down has been probably the biggest impact for us, I would just say Florida.

Canyon Haze: Michigan primarily the most impacted here from the demand side. In terms of what categories impacted, I would say that from a margin perspective,

Tony Colucci: So articulated dump trucks, 40 ton articulated dump trucks down in Florida, where we're seeing some of this, this pricing discipline erode on those larger product categories. We have seen a slight pullback in sales year over year, and maybe more of the compact lines, but that's much more muted than what I would say is going on in the heavy category. With that, hopefully that helps.

Tony Colucci: So articulated dump trucks, 40 ton articulated dump trucks down in Florida, where we're seeing some of this, this pricing discipline erode on those larger product categories. We have seen a slight pullback in year over year and maybe more of the compact lines, but that's much more muted than what I would say is going on in the heavy category. With that, hopefully that helps.

Ryan Greenawalt: So articulated dump trucks, 40 times articulated dump trucks down in Florida, where we're seeing some of this pricing discipline erode on those larger product categories. We have seen a slight pullback in year-over-year and maybe more of the compact lines, but that's much more muted. Then what I would say is going on in the heavy categories, but hopefully that helps. Yeah, I know that's very helpful.

Canyon Haze: In a pricing perspective, it would be the big heavy stuff, so articulated dump trucks.

Canyon Haze: 40-ton articulated dump trucks down in Florida, where we're seeing, you know...

Canyon Haze: Some of this pricing discipline erode on those larger product categories.

Ryan Greenawalt: We have seen a slight pullback in year-over-year, and maybe more of the compact lines, but that's much more muted. Then what I would say is going on in the heavy categories, but hopefully that helps.

Canyon Haze: We have seen a slight pullback in year-over-year in maybe more of the compact lines, but that's much more muted than what I would say is going on in the heavy categories. Hopefully that helps.

Steve Hansen: Yeah, no, that's very helpful. And are you seeing the OEs respond then from sort of a financing and incentive program, I presume, is that part of it? And just a related point is how does the inventory stack look for you guys as it stands today? How much do you need to lean down, if at all?

Steven Hansen: Yeah, I know that's very helpful. I know you can always respond then from sort of a financing and send a program I presume is that part of it.

Steve Hansen: I know you can always respond then from sort of a financing and send a program I presume is that part of it. And just a related point is how does the how do the inventory stack look for you guys as a stance today? How much do you need to lean down? Is it all?

Speaker Change: Yeah, no, that's very helpful. And are you seeing the OEs respond then from sort of a financing and incentive program, I presume, is that part of it? And just a related point is how does the inventory stack look for you guys as it stands today? How much do you need to lean down, if at all?

Steven Hansen: And just a related point is how does the inventory stack look for you guys as a stance today? How much do you need to lean down? Is it all?

Tony Colucci: Yeah, I'll take that one, Steve, and maybe a lot of Ryan to talk about the OEs and their participation pricing-wise and all that's impactful. In terms of the fleet size, we're very close to our terms. As I mentioned, on new and used equipment, we were able to reduce in the quarter, and I think that's a really strong kind of statement for the team here as we really try to stick to our two terms on new inventory, used inventory, et cetera. So actually down on new and used, the rental fleet is where I would say we've got the most opportunity.

Tony Colucci: Yeah, I'll take that one, Steve, and maybe allow Ryan to talk about the OEs and their participation prices and how that's impactful. In terms of fleet size, you know, we're very close to our turns. As I mentioned, on new and used equipment, we were able to reduce in the quarter, and I think that's a really strong kind of statement for the team here as we really try to stick to our, you know, two turns on new inventory, used inventory, et cetera. So, we're actually down on new and used.

Tony Colucci: Yeah, I'll take, I'll take that one, Steve, you know, and maybe allow Ryan to talk about the OEs and their participation prices and how that's impactful. In terms of the fleet size, you know, we're very close to our turns. As I mentioned, on new and used equipment, we were able to reduce in the quarter. And I think that's, that's a really strong kind of statement for the team here as we really try to stick to our, you know, two turns on new inventory, used inventory, et cetera.

Tony Colucci: Yeah, I'll take that one, Steve, and maybe a lot of Ryan to talk about the OEs and their participation pricing wise and all that's impactful. In terms of the fleet size, we're very close to our terms. As I mentioned, on new and used equipment, we were able to reduce in the quarter and I think that's a really strong kind of statement for the team here as we really try to stick to our two terms on new inventory, used inventory, et cetera.

Speaker Change: Yeah, I'll take that one, Steve, and maybe allow Ryan to talk about the OEs and their participation pricing-wise and how that's impactful. In terms of the fleet size, we're very close to our turns, as I mentioned.

Speaker Change: On new and used equipment, we were able to reduce in the quarter, and I think that's

Speaker Change: That's a really strong kind of statement for the team here as we really try to stick to our

Ryan Greenawalt: The rental fleet is where I would say we've got the most opportunity. I think that's probably, you know, 30 to 50 million dollars where we'd like to maybe pair back on a 600 million dollar fleet here in the next several quarters, let's say. And there's probably a little bit more than that in the used department. We've got some aged fleet. And if you think about, you know, turning out the rental fleet, I think the number was something like 60 million dollars a year to date that we were able to kind of reduce.

Tony Colucci: So actually, down on new and used the rental fleet is where I would say we've got the most opportunity. I think that's probably, you know, 30 to 50 million dollars where we'd like to maybe pare back on a 600 million dollar fleet here in the next several quarters. Let's say, and there's probably a little bit more there, a little bit more than that in the use department. We've got some aged fleets and if you think about, you know, turning out of the rental fleet, I think the number was something like 60 million dollars a year to date that we were able to kind of reduce.

Tony Colucci: So actually down on new and used, the rental fleet is where I would say we've got the most opportunity. I think that's probably 30 to 50 million dollars where we'd like to maybe pair back on a $600 million fleet here in the next several quarters, let's say. And there's probably a little bit more than that in the used department we've got some aged fleet. And if you think about turning out of the rental fleet, I think the number was something like $60 million year to date that we were able to kind of reduce.

Speaker Change: you know, two turns on new inventory, used inventory, etc. So we're actually down on new and used. The rental fleet is where I would say we've got the most opportunity.

Tony Colucci: I think that's probably 30 to 50 million dollars where we'd like to maybe pair back on a $600 million fleet here in the next several quarters, let's say. And there's probably a little bit more than that in the used department. We've got some aged fleet. And if you think about turning out of the rental fleet, I think the number was something like $60 million year to date that we were able to kind of reduce. So the key is just matching supply and demand, being mindful of what we're ordering and taking from the OEs, and we'll snap right back into where we want to be with the fleet and on the balance sheet in the next several quarters.

Canyon Haze: I think that's probably, you know, $30 to $50 million, where we'd like to maybe pair back on a $600 million fleet here in the next several quarters, let's say. And there's probably a little bit more than that in the used department. We've got some...

Speaker Change: Some of each fleet and if you think about

Canyon Haze: you know, turning out of the rental fleet.

Speaker Change: I think the number was something like $60 million.

Ryan Greenawalt: So, the key is just matching supply and demand, being mindful of what we're ordering and taking from the OEs, and we'll snap right back into where we want to be with the fleet and on the balance sheet in the next several quarters, so long as, you know, demand stays buoyed or at least to the levels that it is. But, Ryan, do you want to talk about pricing? Sure.

Tony Colucci: So, the key is just matching supply and demand, being mindful of what we're ordering and taking from the OEs, and we'll snap right back into where we want to be with the fleet and on the balance sheet in the next several quarters, as long as, you know, demand stays buoyed, or at least to the levels that it is. But Ryan, do you want to talk about pricing? Sure.

Tony Colucci: So the key is just matching supply and demand, being mindful of what we're ordering and taking from the OEs and we'll snap right back into where we want to be with the fleet and on the balance sheet in the next several quarters.

Speaker Change: year-to-date that we were able to kind of reduce so the key is just

Canyon Haze: matching supply and demand, being mindful of what we're ordering and taking from the OEs. And we'll snap right back into where we wanna be with the fleet and on the balance sheet in the next several quarters. So long as, you know, demand.

Ryan Greenawalt: So long as demand stays buoyed or at least to the levels that it is, Ryan, do you want to talk about pricing? Sure. So the relationship between the dealer and the OEMs that relates to pricing has never been more important in times like this. We've got an overstocked dealer channel, and every deal is competitive. So it's an active dialogue with the various manufacturers we represent. And you know, one of the comments Tony made about some of the lack of discipline that we're seeing in the market. We see some opportunistic and undisciplined pricing happening where we might see some erratic swings in the near term on share as OEMs do some kind of crazy things to try to get their product into the marketplace.

Ryan Greenawalt: So long as demand stays buoyed or at least to the levels that it is, Ryan, do you want to talk about pricing? Sure. So the relationship between the dealer and the OEMs that relates to pricing has never been more important in times like this. We've got an overstocked dealer channel and every deal is competitive. So it's an active dialogue with the various manufacturers we represent. And you know, one of the comments Tony made about some of the lack of discipline that we're seeing in the market.

Canyon Haze: stays buoyed, or at least to the levels that it is. But Ryan, do you want to talk about pricing?

Ryan Greenawalt: Sure, so the relationship between the dealer and the OEMs as it relates to pricing has never been more important in times like this. You've got an overstocked dealer channel, and every deal is competitive. So, you know, it's an active dialogue with the various manufacturers we represent, and it plays into one of the comments Tony made about some of the lack of discipline that we're seeing in the market. We see some opportunistic and undisciplined pricing happening where we might see some erratic swings in the near term on share as OEMs do some kind of crazy things to try to get their product into the marketplace.

Ryan: Sure, so the relationship between the dealer and the OEMs as it relates to pricing has never been more, you know, important in times like this. You've got an over stocked dealer channel.

Ryan: And every deal is competitive. So, you know, it's an active dialogue with the various manufacturers we represent. And, you know, plays into one of the comments Tony made about some of the lack of discipline that we're seeing in the market. We see

Ryan Greenawalt: We see some opportunistic and undisciplined pricing happening where we might see some erratic swings in the near term on share as OEMs do some kind of crazy things to try to get their product into the marketplace. Let's help a colloquial guy. Thanks. Appreciate it.

Tony Colucci: Some opportunistic and undisciplined pricing happening where we might see some erratic swings in the near term on share as OEMs do some kind of crazy things to try to get their product into the marketplace.

Canyon Hayes: Let's help a colloquial guy.

Operator: That's a helpful call, guys. Thanks. I appreciate it.

Steve Hansen: That's a helpful call, guys. Thanks. I appreciate it.

Canyon Hayes: Thanks. Appreciate it.

Speaker Change: That's a helpful call, guys. Thanks. Appreciate it.

Steven Ramsey: Thank you. The next question is from the line up: Stephen Ramsey with Thompson Research Group. Your line is now open. Hi, good evening. I wanted to think about constructing the man moderating, yet in the construction equipment segment, aftermarket support revenue grew, looks like about 15%, well above the total code result. Maybe a couple things there first, how much of the, what was the organic change of construction equipment parts and services. And then secondly, if the market stays weak in the second half, the installed base ages a bit, you know, maybe some offset with lower utilization of what's out there.

Steven Ramsey: Thank you. The next question is from the line of Steven Ramsey with Thompson Research Group. Your line is now open.

Operator: Thank you. The next question is from the line of Steven Ramsey with Thompson Research Group. Your line is now open.

Speaker: Thank you.

Canyon Haze: Thank you. The next question is from the line of Steven Ramsey with Thompson Research Group. Your line is now open.

Steven Ramsey: The next question is from the line up, Stephen Ramsey with Thompson Research Group. Your line is now open. Hi, good evening. I wanted to think about constructing the man moderating yet in the construction equipment, segment, aftermarket support revenue grew, looks like about 15% well above the total code result. Maybe a couple things there first, how much of the, what was the organic change of construction equipment parts and services. And then secondly, if the market stays weak in the second half, the installed base ages a bit, you know, maybe some offset with lower utilization of what's out there.

Steven Ramsey: Hi, good evening. I wanted to think about construction demand moderating yet in the construction equipment segment after market support revenue grew. Looks like about 15%, well above the total co-result. Maybe a couple of things there.

Steven Ramsey: Hi, good evening. I wanted to think about construction demand moderating yet in the construction equipment.

Speaker Change: segment after market support revenue grew, looks like about 15%, well above the total co-result. Maybe a couple things there. First,

Steven Ramsey: First, what was the organic change in construction equipment parts and services? And then, secondly, if the market stays weak in the second half, the installed base ages a bit, maybe some offset with lower utilization of what's out there. But do you expect the parts and service business to be exceptionally strong with that kind of backdrop?

Steven Ramsey: What was the organic change of construction equipment, parts, and services?

Speaker Change: And then secondly, if the market stays weak in the second half, the installed base ages a bit, you know, maybe some offset with lower utilization of what's out there, but do you expect the parking service

Tony Colucci: But do you expect the parking service business to be exceptionally strong with that kind of backdrop? Steve, I think we saw some of that. I mean, our product support business in the face of, you know, just to give you some numbers, the construction business, and this is in the MDNA of our 10-Q. The construction segment organically was down 14.7 million dollars, or 10%, in the new and used equipment line. Now, we're able to offset some of that by having an additional or an incremental $4 million sold out of the rental fleet. So let's just call it $10 million down year over year on an organic basis, which would be something in the high single digits in terms of equipment sales.

Steven Ramsey: But do you expect the parking service business to be exceptionally strong with that kind of backdrop? Steve, I think we saw some of that. I mean, our product support business in the face of, you know, just to give you some numbers, the construction business, and this is in the MDNA of our 10Q. The construction segment organically was down 14.7 million dollars or 10% in the new and used equipment line. Now, we're able to offset some of that by having an additional or an incremental $4 million sold out of the rental fleet.

Speaker Change: business to be exceptionally strong with that kind of backdrop.

Tony Colucci: Steve, I think we saw some of that. I mean, our product support business, just to give you some numbers, the construction business, and this is in the MD&A of our 10-Q, the construction segment organically was down 14.7 million dollars, or 10%, in the new and used equipment line. Now, we're able to offset some of that by having an additional or an incremental 4 million dollars sold out of the rental fleet.

Tony Colucci: Steve, I think we saw some of that. I mean, our product support business, just to give you some numbers, the construction business, and this is in the MD&A of our 10-Q, the construction segment organically was down 14.7 million dollars, or 10%, in the new and used equipment line. Now we're able to offset some of that by having an additional or an incremental 4 million dollars sold out of the rental fleet.

Speaker Change: Steve, I think we saw some of that. I mean, our product support business in the face of, you know,

Speaker Change: Just to give you some numbers, the construction business

Speaker Change: And this is in the MD&A of our 10-Q. The construction segment organically was down $14.7 million, or 10% in the new and used equipment line. Now, we were able to offset some of that by

Tony Colucci: So let's just call it 10 million dollars down year-over-year on an organic basis, which would be something in the high single digits in terms of equipment sales. But I think what we will ultimately see as the fleet ages, similar to what we saw when, you know, there was a big replenishment in 2023.

Tony Colucci: So, let's just call it 10 million dollars down year over year on an organic basis, which would be something in the high single digits in terms of equipment sales. But I think what we will ultimately see as the fleet ages, similar to what we saw when there was a big replenishment in 2023.

Speaker Change: having an additional or an incremental $4 million.

Steven Ramsey: So let's just call it $10 million down year over year on an organic basis, which would be something in the high single digits in terms of equipment sales. But I think what we will ultimately see as the fleet ages, similar to what we saw when, you know, there was a big replenishment in 2023 prior to that, we benefited from, you know, supply chain issues benefited from a product support perspective. Now that the replenishment happened in a big way last year.

Speaker Change: sold out of the rental fleet. So let's just call it $10 million down year over year on an organic basis, which would be something in the high single digits.

Tony Colucci: But I think what we will ultimately see as the fleet ages, similar to what we saw when, you know, there was a big replenishment in 2023. Prior to that, we benefited from, you know, supply chain issues benefited from a product support perspective. Now that the replenishment happened in a big way last year. There's a lot of new equipment out there that in the, you know, the early stages of that equipment being a field population, they haven't broke down yet. They're not, they're not kind of in their prime product support days. But you're right overall; that is utilization, which, by the way, we've got a slide in our presentation that suggests utilization of equipment, our customer equipment, by virtue of the service calls.

Speaker Change: in terms of equipment sales.

Speaker Change: The

Speaker Change: But I think what we will ultimately see as the fleet ages, similar to what we saw when, you know, there was a big replenishment in 2023. Prior to that, we benefited from, you know, supply chain issues, benefited from a product support perspective.

Tony Colucci: Prior to that, we benefited from, you know, supply chain issues, benefited from a product support perspective. Now that the replenishment happened in a big way last year, there's a lot of new equipment out there that, in the early stages of that equipment being a field population, haven't broken down yet. They're not kind of in their prime product support days, but you're right overall about utilization, which, by the way, we've got a slide in our presentation that suggests utilization of equipment, our customer equipment, by virtue of the service calls.

Tony Colucci: Prior to that, we benefited from, you know, supply chain issues, and benefited from a product support perspective. Now that the replenishment happened in a big way last year, there's a lot of new equipment out there that in the, you know, the early stages of that equipment being a field population, they haven't broken down yet. They're not kind of in their prime product support days, but you're right overall about utilization, which, by the way, we've got a slide in our presentation that suggests utilization of equipment, our customer equipment, by virtue of the service calls.

Steven Ramsey: There's a lot of new equipment out there that in the, you know, the early stages of that equipment being a field population, they're, they haven't broke down yet. They're not, they're not kind of in their prime product support days. But you're right overall that is utilization, which by the way, we've got a slide in our presentation that suggests utilization of equipment, our customer equipment by virtue of the service calls. There's even some industry data out there that suggests that utilization is pretty much flat to maybe, maybe down low single digits in terms of customer equipment.

Speaker Change: Now that the replenishment happened in a big way last year, there's a lot of new equipment out there.

Speaker Change: that in the early stages of that equipment being a field population. They haven't broke down yet, they're not kind of in their prime.

Speaker Change: Product support days, but you're right overall that is utilization which by the way

Canyon Haze: We've got a slide in our presentation that suggests.

Canyon Haze: Utilization of Equipment.

Tony Colucci: There's even some industry data out there that suggests that utilization is pretty much flat to maybe, maybe down low single digits in terms of customer equipment. That's all good for us, and we'll keep our, our parts and service operations busy. So, I may have missed a piece of your question. So happy to circle back there, Steve, but go ahead. No, that was helpful commentary. Maybe an add-on question to that topic with good utilization in the parts and service department for the construction equipment segment. How does, how does that work pricing wise? Is this a favorable pricing environment for the parts and service revenue line?

Tony Colucci: There's even some industry data out there that suggests that utilization is pretty much flat to maybe down low single digits in terms of customer equipment. That's all good for us, and we'll keep our parts and service operations busy. So I may have missed a piece of your question. I'll be happy to circle back there, Steve, but go ahead.

Tony Colucci: There's even some industry data out there that suggests that utilization is pretty much flat to maybe down low single digits in terms of customer equipment. That's all good for us, And we'll keep our parts and service operations busy. So I may have missed a piece of your question. I'll be happy to circle back there, Steve, but go ahead.

Canyon Haze: our customer equipment by virtue of the service calls.

Canyon Haze: There's even some industry data out there that suggests that utilization is pretty much flat to maybe down low single digits in terms of customer equipment.

Steven Ramsey: That's all good for us and we'll keep our, our parts and service operations busy. So, I may have missed a piece of your question. So happy to circle back there Steve, but go ahead. No, that was helpful commentary. Maybe an add on question to that topic with good utilization in the parts and service department for the construction equipment segment. How does, how does that work pricing wise? Is this a favorable pricing environment for the parts and service revenue line?

Canyon Haze: That's all good for us, and we'll keep our parts and service operations busy. So, I may have missed a piece of your question, so happy to circle back there, Steve, but go ahead.

Steven Ramsey: No, that was helpful commentary. Maybe an add-on question to that topic: With good utilization in the parts and service department for the construction equipment segment, how does that work pricing-wise? Is this a favorable pricing environment for the parts and service revenue line?

Steve Hansen: No, that was helpful commentary. Maybe an add-on question to that topic.

Steve Hansen: With good utilization in the parts and service department for the construction equipment segment, how does that work pricing-wise? Is this a favorable pricing environment for the parts and service revenue line?

Tony Colucci: Steve, what I would say there is, it always is, and that gets right back to the labor situation that is more structural than anything in the country in terms of, you know, just the lack of skilled skilled labor. So, you know, we've been able to push pricing along year over year. Some of the gain that you see relative to just activity or related to our ability to push along pricing increases to our, to our customers. So, I wouldn't necessarily tie it to utilization in terms of the price of the service. That's more directly correlated with kind of the dirt of skilled labor that's out there.

Tony Colucci: Steve, what I would say there is that it always is, and that gets right back to the labor situation that is more structural than anything in the country in terms of, you know, just the lack of skilled, skilled labor. So, you know, we've been able to push pricing along year over year. Some of the gains that you see relative to just activity are related to our ability to push along pricing increases to our customers. So I wouldn't necessarily tie it to utilization in terms of the price of the service. That's more directly correlated with kind of the dearth of skilled labor. That's a good idea.

Tony Colucci: Steve, what I would say there is that it always is, and that gets right back to the labor situation that is more structural than anything in the country in terms of, you know, just the lack of skilled labor. So, you know, we've been able to push prices along year over year. Some of the gains that you see relative to just activity are related to our ability to push along pricing increases to our customers. So I wouldn't necessarily tie it to utilization in terms of the price of the service. That's more directly correlated with the kind of dearth of skilled labor that's up.

Steven Ramsey: Steve, what I would say there is, it always is, and that gets right back to the labor situation that is more structural than anything in the country in terms of, you know, just the lack of skilled skilled labor. So, you know, we've been able to push, push pricing along year over year, some of the gain that you see relative to just activity or related to our ability to push along pricing increases to our, to our customers.

Steve Hansen: Steve, what I would say there is it always is, and that gets right back to the labor situation that is more structural than anything in the country in terms of

Steve Hansen: You know, just the lack of skilled skilled labor. So, you know, we've been able to push, push pricing along year over year. Some of the gains.

Speaker Change: that you see relative to just activity or related to our ability to push along pricing increases to our customers. So I wouldn't necessarily tie it to utilization in terms of the price of the service. That's more directly correlated with

Steven Ramsey: So, I wouldn't necessarily tie it to utilization in terms of the price of the service. That's more directly correlated with kind of the dirt of skilled labor that's out there. Okay, that's helpful. And then maybe to understand the construction customer sentiment a little bit better, less willingness, obviously, to purchase new and used equipment, are they letting fleet age in anticipation of better demand, or are they, can you tell if they are selling some of that fleet.

Speaker Change: kind of the dearth of skilled labor that's out there.

Steven Ramsey: Okay, that's helpful.

Steven Ramsey: Okay, that's helpful. And then maybe to understand the construction customers' sentiment a little bit better, less willingness, obviously, to purchase new and used equipment. Are they letting their fleet age in anticipation of better demand, or are they, can you tell if they are selling some of that fleet? And maybe, tying it to the rental segment, what is the customer willingness to purchase your lightly used rental suite in this kind of environment?

Steven Ramsey: Okay, that's helpful. And then maybe to understand the construction customers' sentiment a little bit better. Less willingness, obviously, to purchase new and used equipment. Are they letting the fleet age in anticipation of better demand, or can you tell if they are selling some of that fleet? Tying it to the rental segment, what is the customer willingness to purchase your lightly used rental fleet in this kind of environment?

Steven Ramsey: And then maybe to understand the construction customer sentiment a little bit better, less willingness, obviously, to purchase new and used equipment. Are they letting fleet age in anticipation of better demand, or are they, can you tell if they are selling some of that fleet? And maybe tying it to the rental segment. What is customer willingness to purchase your lightly used rental fleet in this kind of environment? I think, you know, it's still, it's still strong. We sold 36.3 million dollars out of our fleet, right? Which is up versus last year and probably I don't have an in front of me, but I think up versus Q1.

Speaker Change: Okay, that's helpful. And then maybe to understand the construction customer sentiment a little bit better.

Speaker Change: less willingness, obviously, to purchase new and used equipment. Are they letting fleet age in anticipation of better demand, or are they, can you tell if they are selling some of that fleet? And maybe

Steven Ramsey: And maybe tying it to the rental segment. What is customer willingness to purchase your lightly used rental fleet in this kind of environment? I think, you know, it's still, it's still strong. We sold 36.3 million dollars out of our fleet, right, which is up versus last year and probably I don't have an in front of me, but I think up versus Q1. And so, they're still buying the lightly use fleet. We're still getting good margins on the lightly use fleet.

Speaker Change: Tying it to the rental segment, what is customer willingness to purchase your lightly used rental fleet in this kind of environment?

Tony Colucci: I think, you know, it's still strong. We sold $36.3 million out of our fleet, right, which is up versus last year and probably, I don't have it in front of me, but I think it was up versus Q1. And so they're still buying the lightly used fleet, and we're still getting good margins on the lightly used fleet. Um, and that's just part of our business model from a field population perspective. I think what I would say sentimentally, Steve is

Tony Colucci: I think it's still strong. We sold $36.3 million out of our fleet, right, which is up versus last year and probably, I don't have it in front of me, but I think it's up versus Q1. And so they're still buying the lightly used fleet, and we're still getting good margins on the lightly used fleet. Um, and that's just part of our business model from a field population perspective. I think what I would say sentimentally, Steve is

Speaker Change: i think you know it's still it's still strong we sold thirty six point three million dollars out of our fleet

Speaker Change: Right, which is up.

Speaker Change: versus last year and probably, I don't have it in front of me, but I think up versus Q1. And so they're still buying the lightly used fleet. We're still getting good margins on the lightly used fleet.

Ryan Greenawalt: And so, they're still buying the lightly used fleet. We're still getting good margins on the lightly used fleet. And that's just part of our business model from a field population perspective. I think what I would say sentiment-wise, Steve, is the customers appear to be busy on projects. They have backlog. And we keep getting the same refrain. And as I mentioned, it's like that refrain has gotten more pronounced as we've gone through the back half of the second quarter specifically where customers are just saying, look, I'm going to grind it out here until I see lower interest rates. I'm going to keep my, you know, maybe my older piece of equipment.

Steven Ramsey: And that's just part of our business model from a field population perspective. I think what I would say sentiment wise, Steve is the customers appear to be busy on projects. They have backlog. And we keep getting the same refrain. And as I mentioned, it's like that refrain has gotten more pronounced as we've gone through the back half of the second quarter specifically where customers are just saying, look, I'm going to grind it out here until I see lower interest rates, I'm going to keep my, you know, maybe my older piece of equipment.

Steve Hansen: and that's just part of our business model from a field population perspective i think what i would say sentiment listeve is

Tony Colucci: The customers appear to be busy on projects. They have a backlog there, and we keep getting the same refrain. And as I mentioned, it's like that refrain has gotten more pronounced as we've gone through it. The back half of the 2nd quarter, specifically where customers are just saying, look, I'm going to, I'm going to grind it out here until I see lower interest rates. I'm going to keep my, you know, maybe my older piece of equipment.

Speaker Change: The customers appear to be busy.

Speaker Change: on projects they they have backlog there and we can keep getting the same refrain and as i mentioned it's like that refrrain has gotten more pronounced as we've gone through the

Speaker Change: the back half of the second quarter specifically where customers are just saying look I I'm going to I'm going to grind it out here until I see lower interest rates. I'm going to keep my you know maybe my older piece of equipment until after the election when I know more about.

Tony Colucci: Until after the election, when I know more about the future tax ramifications of buying capital equipment, I think it's those 2 primary factors that are driving customer sentiment. In the non-res, if you will, the smaller end of the non-res space.

Steven Ramsey: Until after the election, when I know more about, you know, tax future tax ramifications of buying capital equipment, I think it's those two primary factors that are driving customer sentiment in the non res, if you will, the smaller end of non res space.

Steven Ramsey: Until after the election, when I know more about, you know, tax future tax ramifications of buying capital equipment, I think it's those two primary factors that are driving customer sentiment in the in the non res, if you will, the smaller end of non res space. Great, that's all in alpha color. Appreciate it.

Speaker Change: You know, future tax ramifications of buying capital equipment. I think it's those two primary factors that are driving customer sentiment in the non-res, if you will, the smaller end of non-res space.

Steven Ramsey: Great, that's all in alpha color. Appreciate it.

Steven Ramsey: Great, that's all helpful color, I appreciate it.

Steven Ramsey: Great, that's all in alpha color. I appreciate it.

Speaker Change: Great, that's all. All in ultra color, appreciate it.

Alex Regal: Thank you. The next question is from the line of Alex Regal with B. Riley, your line of smell open. Thank you, gentlemen. A couple of quick questions here. We're still in a good amount of time. We're talking about the small and medium size contractors that are soft right now, but you know, kind of in the aggregate. I think that's probably a smaller percentage of your total company revenue.

Operator: Thank you. The next question is from the line of Alex Riegel with B Reilly. Your line is now open.

Alexander Rygiel: Thank you. The next question is from the line of Alex Regal with B. Riley, your line of smell open. Thank you gentlemen. A couple of quick questions here. We're still in a good amount of time. We're talking about the small and medium size contractors that are soft right now, but you know kind of in the aggregate. I think that's probably a smaller percentage of your total company revenue. Maybe we've talked a little bit about some of the stronger end markets that you're seeing and Tony, thank you for these great slides on 27 and 28.

Speaker Change: Thank you. The next question is from the line of Alex Riegel with B Reilly. Your line is now open.

Alex Riegel: Thank you, gentlemen. A couple quick questions here. We've spent a good amount of time here talking about the small and medium-sized contractors that are soft right now, but, you know, kind of in the aggregate, I think that's probably a smaller percentage of your total company revenue. Maybe we can talk a little bit about some of the stronger end markets that you're seeing. And Tony, thank you for these great slides on 27 and 28. But maybe you could run through a couple of those end markets and talk to some of the stronger ones.

Alex Riegel: Thank you, gentlemen. There are a couple of quick questions here. We've spent a good amount of time here talking about the small and medium-sized contractors that are soft right now, but, you know, kind of in the aggregate, I think that's probably a smaller percentage of your total company revenue. Maybe we can talk a little bit about some of the stronger end markets that you're seeing. And Tony, thank you for these great slides on 27 and 28. But maybe you could run through a couple of those end markets and talk to some of the stronger ones.

Alex Riegel: Thank you, gentlemen. A couple quick questions here. We spent a good amount of time here talking about the small and medium size.

Alex Riegel: contractors that are soft right now but you know kind of in the aggregate I think that's probably a smaller percentage of your total company.

Tony Colucci: Maybe we've talked a little bit about some of the stronger end markets that you're seeing, and Tony, thank you for these great slides on 27 and 28. But maybe you could run through a couple of those end markets and talk to you some stronger ones. Sure. Yeah, I think Alex just a maybe circle to the bike segment. You know, food and beverage distribution is, you know, just consistent. I would say consistently strong. And so, you know, that that seems to be, you know, just a stalwart, if you will. We're housing and logistics is moving just fine.

Alex Riegel: revenue. Maybe we can talk a little bit about some of the stronger end markets that you're seeing. And Tony, thank you for these great slides on 27 and 28. But maybe you can run through a couple of those end markets and talk to some of the stronger ones.

Alexander Rygiel: But maybe you could run through a couple of those end markets and talk to you some stronger ones. Sure. Yeah, I think Alex just a maybe circle to the bike segment. You know, food and beverage distribution is, you know, just consistent. I would say consistently strong. And so, you know, that that seems to be, you know, just a stalwart, if you will. We're housing and logistics is moving just fine. There's a fair amount of medical supplies.

Tony Colucci: Sure. Yeah, I think, Alex, just to maybe circle to the buy segment, food and beverage distribution is, you know, just consistent. I would say consistently strong. And so, you know, that that seems to be, you know, just a stalwart, if you will; warehousing and logistics are moving just fine. There are a fair amount of medical supplies again that we really haven't seen any sort of pullback or heard of, you know, facilities shutting down.

Tony Colucci: Sure. Yeah, I think, Alex, just to maybe circle to the buy segment, food and beverage distribution is, you know, just consistent. I would say consistently strong. And so, you know, that that seems to be, you know, just a stalwart, if you will; warehousing and logistics are moving just fine. There's a fair amount of medical supplies again that we really haven't seen any sort of pullback or heard of, you know, any facility shutting down.

Tony Colucci: Sure, yeah, I think Alex, just to maybe circle to the bi-segment.

Speaker Change: you know.

Speaker Change: Food and beverage distribution is...

Speaker Change: just a consistent i would say consistently strong and so that that seems to be just a a stall work if you will warehousing and logistics

Tony Colucci: There's a fair amount of medical supplies. Again, that we really haven't seen any sort of pull back or heard of, you know, facility shutting down. I would say Automotive. Again, it is a little bit maybe tepid, but also, you know, we're maybe there's not enough as many cars coming off the line. But recall that for us, like as long as facilities are still open, we sort of embed into the facility spend of our customers on the material handling side. And so, we really haven't seen anything of no in the material handling side that I would say has pulled back, and I would say it's all pretty stable and steady.

Speaker Change: is moving just fine. There's a fair amount of medical supplies.

Alexander Rygiel: Again, that we really haven't seen any sort of pull back or heard of, you know, facility shutting down. I would say automotive. Again, it is a little bit maybe tepid, but also, you know, we're maybe there's not enough as many cars coming off the line, but recall that for us, like as long as facilities are still open, we sort of embed into the facility spend of our customers on the material handling side.

Speaker Change: again that we

Speaker Change: We really haven't seen.

Speaker Change: any sort of pullback or heard of facilities shutting down. I would say automotive, again, is a little bit maybe tepid, but also where maybe there's not enough, as many cars coming off the line.

Tony Colucci: I would say the automotive industry is again a little bit tepid, maybe a little bit tepid, but also, you know, where maybe there's not enough cars coming off the line. But recall that for us, like, as long as facilities are still open, we sort of embed into the facility spend of our customers on the material handling side. And so we really haven't seen anything of note in the material handling side that I would say has pulled back.

Tony Colucci: I would say the automotive industry is again a little bit tepid, maybe a little bit tepid, but also, you know, where maybe there's not enough cars coming off the line. But recall that for us, like, as long as facilities are still open, we sort of embed into the facility spend of our customers on the material handling side. And so we really haven't seen anything of no in the material handling side that I would say has pulled back.

Speaker Change: But...

Speaker Change: Recall that for us, like, as long as facilities are still open, we sort of embed into the facility spend of our customers on the material handling side.

Alexander Rygiel: And so, we really haven't seen anything of no in the material handling side that I would say has pulled back and I would say it's all pretty stable and steady. On the construction equipment side, I think aggregate and mining up in Canada that the all deal I would point to that is as strong. I still think, you know, some of the landscaping and the that market and compact equipment is strong. I think it's the weaknesses on some of the site development for, you know, mid-sized, maybe commercial projects.

Tony Colucci: And so, we really haven't seen anything of no...

Tony Colucci: In the material handling side that I would say has pulled back and I would say it's all pretty stable and steady.

Tony Colucci: And I would say it's all pretty stable and steady. On the construction equipment side, I think aggregate and mining up in Canada, the whole deal, I would point to that as being as strong. I still think, you know, about some of the landscaping and etc.

Tony Colucci: And I would say it's all pretty stable and steady. On the construction equipment side, I think aggregate and mining up in Canada, the old deal. I would point to that as being as strong. I still think, you know, about some of the landscaping and etc.

Ryan Greenawalt: On the construction equipment side, I think aggregate and mining up in Canada that the all deal I would point to that is as strong. I still think, you know, some of the landscaping and the that market and compact equipment is strong. I think it's the weaknesses on some of the site development for, you know, mid-sized, maybe commercial projects. The big road, the big road customers that we have without naming names are all very busy. Maybe has a tent to buy, but all very busy and strong. So all the infrastructure spend, the customers are busy and strong, but that doesn't mean that they're going to pull the trigger on equipment.

Speaker Change: um

Speaker Change: On the construction equipment side, I think aggregate and mining up in Canada, the whole deal, I would point to that as strong. I still think, you know, some of the landscaping and the that market and compact equipment is strong. I think it's.

Tony Colucci: The that that market and compact equipment is strong, I think it's the weakness of some of the site development for, you know, meat-sized maybe commercial projects, the big road, the big road. Customers that we have, without naming names, are all very busy, maybe hesitant to buy, but all very busy and strong. So all the infrastructure spend, the customers are busy and strong, but that doesn't mean that they're going to pull the trigger on equipment.

Speaker Change: The weaknesses on some of the site development for, you know,

Tony Colucci: mid-sized, maybe commercial projects.

Alexander Rygiel: The big road, the big road customers that we have without naming names are all very busy. Maybe has a tent to buy, but all very busy and strong. So all the infrastructure spend, the customers are busy and strong, but that doesn't mean that they're going to pull the trigger on equipment. That could be a variety of other factors, pricing of the equipment, interest rate, prognostications, election, etc. So, you know, it's really still difficult because then that mid-sized sort of site development contractor, everybody else is busy.

Tony Colucci: The big road, the big road.

Tony Colucci: Customers that we have, without naming names, are all very busy, maybe hesitant to buy, but all very busy and strong. So all the infrastructure spend, the customers are busy and strong, but that doesn't mean that they're going to pull the trigger on equipment.

Ryan Greenawalt: That could be a variety of other factors: pricing of the equipment, interest rate, prognostications, election, etc. So, you know, it's really still difficult because then that mid-sized sort of site development contractor, everybody else is busy. They're just, they're not buying equipment in the same level as they've done the store. That's helpful.

Tony Colucci: That could be a variety of other factors, pricing of the equipment, interest rate, prognostications, election, etc. So, you know, it's really still difficult, other than that mid-size sort of site development contractor. Everybody else is busy; they're just not buying equipment at the same level as they've done historically.

Tony Colucci: That could be a variety of other factors. Pricing of the equipment, interest rate.

Tony Colucci: prognostications, election, et cetera. So,

Tony Colucci: You know, it's really still difficult, other than that mid-sized sort of site development contractor.

Alexander Rygiel: They're just, they're not buying equipment in the same level as they've done the store. That's helpful. And then as you think about right sizing your rental fleet, how might you redeploy that capital? I think what we would do Alex is sort of right at the revolving debt and that's the first priority here. We like to think that our rental fleet is sort of directly correlated with the debt load. And it's in our minds a little bit temporary, right?

Tony Colucci: Everybody else is busy, they're just, they're not buying equipment.

Tony Colucci: in the same level as they've done historically.

Tony Colucci: That's helpful. And then, as you think about right-sizing your Red Luff Leagues, how might you redeploy that capital? I think what we would do, Alex, is...

Alex Riegel: That's helpful. And then, as you think about right-sizing your Red Bull fleet, how might you redeploy that capital? I think what we would do, Alex, is...

Alex Regal: And then, as you think about right sizing your rental fleet, how might you redeploy that capital? I think what we would do, Alex, is sort of right at the revolving debt, and that's the first priority here. We like to think that our rental fleet is sort of directly correlated with the debt load. And it's in our minds a little bit temporary, right? We're turning out of that rental fleet in a significant way in our construction business. And so one way to answer your question, but we would want to put that right against the debt. Thank you very much.

Speaker Change: help up and then as you think about right sizing and redthe fleet how might you redeploy that capital

Tony Colucci: I think what we would do, Alex, is throw it right at the revolving debt. And that's the first priority here. We like to think that our rental fleet is sort of directly correlated with the debt load. And it's, in our minds, a little bit temporary, right? We're turning out that rental fleet in a significant way in our construction business. And so, a long way to answer your question, but we would want to put that right against the desk.

Tony Colucci: I think what we would do, Alex, is throw it right at the revolving debt. And that's the first priority here.

Tony Colucci: I think what we would do, Alex, is throw it right at the revolving debt.

Alex Riegel: And that's the first priority here. We like to think that our rental fleet is sort of directly correlated with the

Tony Colucci: We like to think that our rental fleet is sort of directly correlated with the debt load. And it's, in our minds, a little bit temporary, right? We're turning out that rental fleet in a significant way in our construction business. And so one way to answer your question, but we would want to put that right against the desk.

Alex Riegel: The debt load and it's in our minds a little bit temporary, right? We're turning out of that rental fleet in a significant way in our construction business. And so one way to answer your question, but we would, we would want to put that right against the debt.

Alexander Rygiel: We're turning out of that rental fleet in a significant way in our construction business. And so one way to answer your question, but we would want to put that right against the debt. Thank you very much. Thank you.

Speaker Change: Thank you very much.

Alex Regal: Thank you.

Operator: Thank you. The next question is from the line of Ted Jackson with Northland Securities. Your line is now open.

Ted Jackson: The next question is from the line of Ted Jackson with Northland Securities. Your line is now open. Thank you very much. Good evening, guys. My first question is actually around material handling, you know, more like a more subdued outlook with regards to the truck market for the second half of the year, you know, talking about that things were slowing down faster than they expected. And then as they got into that discussion made up from commentary with regards to 2025, that for them to be able to, you know, kind of, you know, call it meat, they're sort of longer-term goals that they would need to see themselves take more market share than they currently would envision.

Speaker Change: Thank you. The next question is from the line of Ted Jackson with Northland Securities. Your line is now open.

Ted Jackson: Thank you very much. Good evening, guys.

Ted Jackson: My first question is actually around material handling. You know, Hyster Yale reported yesterday and had their call today. You know, they did actually offer some, you know, more like a more subdued outlook with regards to the truck market for the second half of the year, you know, talking about that, things were slowing down faster than they expected and then as they got into that discussion made some commentary with regards to 2025 that for them to be able to, you know, kind of, you know, let's call it meet their sort of longer term goals that they would need to see themselves take more market share than they currently would envision.

Ted Jackson: My first question is actually around material handling. Uh, Hyster Yale reported yesterday and had their call today that they did actually offer some, you know, a more subdued outlook with regard to the truck market for the second half of the year, talking about that things were slowing down faster than they expected. And then, as they got into that discussion, they made some commentary with regard to 2025, that for them to be able to, you know, kind of, let's call it, meet their sort of longer-term goals, they would need to see themselves take more market share than they currently would.

Speaker Change: said

Speaker Change: My first question is actually around material handling. Hyster Yale reported yesterday and had their call today, and they did actually offer some, you know,

Speaker Change: more like a more subdued outlook with regards to the truck market for the second half of the year, you know, talking about that.

Tony Colucci: things were slowing down faster than they expected. And then as they got into that discussion made up some commentary with regards to 2025, that for them to be able to, you know, kind of

Tony Colucci: I'd call it meet their sort of longer term goals that they would need to see themselves take more market share than they currently would envision.

Tony Colucci: So taking all that and applying it to, you know, the world that relates to you, when you think about the material handling business in, you know, highest retail, I mean, kind of like, you know, I know it's probably the most important part of that business, but maybe can you scale it within regards to the aggregate of your material handling business and then kind of talk a bit about, you know, what you're seeing with regards to the pipeline of activity as we, as you look into 2025. That's my first question. Yeah, and I would just, I can scale it.

Ted Jackson: So taking all that and applying it to, you know, the world that relates to you, when you think about the material handling business in, you know, Hyatt Street, Yale, I mean, kind of like, I know it's probably the most important part of that business, but maybe you can scale it within regard to the aggregate of your material handling business? And then kind of talk a bit about what you're seeing with regard to a pipeline of activity as we, as you look into 2025. That's my first question.

Ted Jackson: So taking all that and applying it to, you know, the world that relates to you. When you think about the material handling business in, you know, Hyatt Street, Yale, I mean, kind of like, you know, I know it's probably the most important part of that business, but maybe you could scale it within regards to the aggregate of your material handling business and then kind of talk a bit about, you know, what you're seeing with regard to a pipeline of activity as we, as you look into 2025? That's my first question.

Ted Jackson: So taking all that and applying it to, you know, the world that relates to you, when you think about the material handling business in, you know, highest retail, I mean, kind of like, you know, I mean, I know it's probably the most important part of that business, but maybe can you scale it within regards to the aggregate of your material handling business and then kind of talk a bit about, you know, what you're seeing with regards to the pipeline of activity as we, as you look into 2025. That's my first question.

Speaker Change: So, taking all that and applying it to, you know, the...

Speaker Change: The world that relates to you

Speaker Change: When you think about the material handling business in, you know, High Street, Yale, I mean, kind of like, you know, I mean, I know it's

Tony Colucci: Probably the most important part of that business, but maybe can you scale it within regards to the aggregate of your material handling business and then

Speaker Change: kind of talk a bit about, you know, what you're seeing with regards to a pipeline of activity as we, as you look into 2025. That's my first question.

Tony Colucci: And I would just say I can scale it. I know Ryan may have some comments on this one.

Tony Colucci: that I would just scale it. I know Ryan may have some comments on this one.

Ted Jackson: Yeah, and I would just, I can scale it. I know Ryan may have some comments on this one, but, you know, the highest or yield is a significant portion of the material handling business. At last check, it's, you know, 60, 70 cents on the dollar. If you, if you kind of go backwards and think about that XP project, it's a significant relationship. It's a relationship that we're, we're very proud of and, and so it's, anyway, I can, that's just scaling it, right?

Ryan Greenawalt: I know Ryan may have some comments on this one, but, you know, the highest or yield is a significant portion of the material handling business. At last check, it's, you know, 60, 70 cents on the dollar. If you, if you kind of go backwards and think about that XP project, it's a significant relationship. It's a relationship that we're very proud of, and so it's, anyway, I can, that's just scaling it, right? Do you want to talk about kind of the markets and making sure? Sure. So I guess the first thing is that the volatility that you're seeing in terms of industry bookings is not felt as acutely on the ground as a dealer. You know, we're, we're the field population that's out there being used is more static than that.

Tony Colucci: But, you know, the Heister Yale is a significant portion of the material handling business that, at last check, is, you know, 60, 70 cents on the dollar. If you kind of go backwards and think about that XP Logix, it's a significant relationship. It's a relationship that we're very proud of. So anyway, that's just scaling it, right? Do you want to talk about the market?

Ryan Greenawalt: But, you know, the Heister Yale is a significant portion of the material handling business that, at last check, is, you know, 60 or 70 cents on the dollar. If you kind of go backwards and think about that X peak logic, It's a significant relationship. It's a relationship that we're very proud of. So anyway, that's just scaling it, right? Do you want to talk about the kind of the market? Thank you.

Ryan: And I would just, I can scale it. I know Ryan may have some comments on this one, but, you know, the Heister Yale is a significant portion of the material handling business. At last check, it's, you know, 60, 70 cents on the dollar if you, if you kind of.

Ryan: Go backwards and think about that XP logics. It's a significant relationship. It's a relationship that we're we're very proud of and and and So it's anyway I can that's just scaling it right do you want to talk about kind of a market and making share

Ted Jackson: Do you want to talk about kind of the markets and making sure? Sure. So I guess the first thing is that the volatility that that you're seeing in terms of industry bookings is not felt as acutely on the ground as a dealer, you know, we're, we're the field population that's out there being used is more static than that. And, you know, that's what we tried to dimension a little bit on the comments is that we're seeing a normalization and we're seeing the market come back to a more reasonable level.

Ryan Greenawalt: Thank you, Cher.

Ryan Greenawalt: Sure, so I guess the first thing is that the volatility that you're seeing in terms of industry bookings is not felt as acutely on the ground as a dealer. You know, we're the field population that's out there being used, more static than that. And, you know, that's what we tried to dimension a little bit in the comments, that we're seeing a normalization, and we're seeing the market come back to a more reasonable level.

Ted Jackson: But for us, the fleets that are out there are the fleets that are coming up for renewal and that are a lot of them long-term legacy accounts that just are kind of, they're, they're stable and they renew. And fleets are on replenishment cycles from three to five years depending on usage. And on the ground as a dealer, you don't see the same volatility that you do as a manufacturer with the, you know, the big, you know, the, the flows in terms of the big orders coming, in.

Ryan: Sure, so I guess the first thing is that the the volatility that that you're seeing in terms of industry bookings is not felt as acutely on the ground as a dealer. You know, we're, the field population that's out there being used

Ryan Greenawalt: And, you know, that's what we tried to dimension a little bit on the comments: is that we're seeing a normalization, and we're seeing the market come back to a more reasonable level. But for us, the fleets that are out there are the fleets that are coming up for renewal, and that are a lot of them long-term legacy accounts that just are kind of, they're, they're stable and they renew. And fleets are on replenishment cycles from three to five years, depending on usage. And on the ground as a dealer, you don't see the same volatility that you do as a manufacturer with the, you know, the, the flows in terms of the big orders coming.

Speaker Change: is more static than that. And, you know, that's what we tried to dimension a little bit on the comments is that we're seeing a normalization and we're seeing the market come back to a more reasonable level. But for us,

Ryan Greenawalt: But for us, the fleets that are out there are the fleets that are coming up for renewal, and there are a lot of them long-term legacy accounts that just are kind of, they're stable, and they renew. And fleets are on replenishment cycles from three to five years, depending on usage and on the ground. As a dealer, you don't see the same volatility that you do as a manufacturer with the big, you know, flows in terms of the big orders coming in.

Ryan: the fleets that are out there are the fleets that are are coming up for renewal and that are a lot of them long term legacy accounts that just are kind of they're stable and they renew

Ryan Greenawalt: And on the ground, as a dealer, you don't see the same volatility that you do as a manufacturer with the big, you know, flows in terms of the big orders coming in. That's one way I guess I would dimension it, you know, it's our flagship OEM on the material handling side, and the other revenue that goes through the dealership model or allied lines, you know, it's we don't have any other brand of kind of heart of the line forklift truck.

Speaker Change: and fleets are on replenishment cycles from three to five years depending on usage and on the ground as a dealer you don't see the same volatility that you do as a manufacturer with you know the big you know the the flows in terms of the big orders coming in.

Ryan Greenawalt: in. So that's one way, I guess I would dimension it. You know, it's our flagship OEM on the material handling side; the other revenue that goes through the dealership model or allied lines. You know, we don't have any other brand of kind of hard-of-line forklift trucks. And we do think that we've had a couple quarters where we've mentioned that we think we're well positioned to take share in this choppy environment. We've got some product features that we're excited about. And then just the shift overall of the growth of the narrow aisle and the electric side of the forklift industry, high-stereels, well positioned for that.

Ryan Greenawalt: That's one way I guess I would dimension it, you know, it's our flagship OEM on the material handling side, and the other revenue that goes through the dealership model or allied lines, you know, it's we don't have any other brand of kind of heart of the line forklift truck. And we do think that we, you know, we've had a couple of quarters where we mentioned that we think we're well-positioned to take share in this choppy environment.

Ted Jackson: So that's one way, I guess I would dimension it. You know, it's our flagship OEM on the material handling side, the other revenue that goes through the dealership model or allied lines. You know, we don't have any other brand of kind of hard-of-line forklift trucks. And we do think that we've had a couple quarters where we've mentioned that we think we're well positioned to take share in this choppy environment. We've got some product features that we're excited about.

Ryan: So that's one way I guess I would dimension it. You know, it's our flagship OEM on the on the material handling side that the other revenue that goes through the dealership model or allied lines, you know, it's we don't have any other brand of kind of heart of the line forklift trucks.

Ryan Greenawalt: And we do think that we, you know, we've had a couple of quarters where we mentioned that we think we're well-positioned to take share in this choppy environment. We've got some product features that we're excited about. And then just the shift overall of the growth of the narrow aisle on the electric side of the forklift industry. Hysterial's well-positioned for that, and that'll remain a focus. And we don't, you know, we look at the business on the stability of that product support revenue and the headcount of our mechanics, and we think that we'll continue to see organic growth in that business across all regions.

Ryan: And we do think that we, you know, we've had a couple quarters where we've mentioned that we think we're well positioned to take share.

Ryan Greenawalt: We've got some product features that we're excited about. And then just the overall shift of the growth of the narrow aisle on the electric side of the forklift industry; Hysterial's well-positioned for that. And that'll remain a focus. And we don't, you know, we look at the business on the stability of that product support revenue and the headcount of our mechanics, and we think that we'll continue to see organic growth in that business across all regions.

Ryan: In this choppy environment, we've got some product features that we're excited about, and then just the shift overall of the growth of the narrow aisle and the electric side of the forklift industry, High Street yells well-positioned for that.

Ted Jackson: And then just the shift overall of the growth of the narrow aisle and the electric side of the forklift industry, high-stereels, well positioned for that. And that'll remain a focus. And we don't, you know, we look at the business on the stability of that product support revenue and the headcount of our mechanics. And we think that we'll continue to see organic growth in that business kind of across the all regions. Yeah, I would just maybe put a sub bullet to that that and maybe go a step further.

Ryan Greenawalt: And that'll remain a focus. And we don't, you know, we look at the business on the stability of that product support revenue and the headcount of our mechanics. And we think that we'll continue to see organic growth in that business, kind of across the all regions. Yeah, I would just maybe put a sub-bullet to that, and maybe go a step further. We have taken share this year in a down bookings market. And this is this is a good thing because, and it's directly correlated to some of the product innovations that high-stereels put out there over the last couple of years, specifically in the where, you know, applicable in the warehouse and logistics, sort of narrow aisle products, if you will, where these are very helpful when we're trying to, you know, take conquest accounts in Chicago and in Toronto.

Ryan: That'll remain a focus and we don't, you know, we.

Ryan: We look at the business on the stability of that product support revenue and the headcount of our mechanics, and we think that we'll continue to see organic growth in that business across all regions.

Ryan Greenawalt: I would just maybe put a sub-bullet to that and maybe go a step further. We have taken share this year in a down bookings market, and this is this a good thing because and it's directly correlated to some of the product innovations that Hyster Yale has put out there over the last couple couple years specifically in the where you know applicable in the warehouse and logistics sort of narrow aisle products if you will where these are very helpful when we're trying to you know take conquest accounts in Chicago and in Toronto we still have those two markets specifically to still represent two of our biggest organic growth opportunities and so we're actually excited about kind of the the how share has moved for our business and all those bookings that you know we have a greater share of will ship in you know next year probably given backlogs and so to me some of the volatility as Ryan said in the in the bookings number especially given the snaps back and forth after COVID.

Tony Colucci: I would just maybe put a sub-bullet to that and maybe go a step further. We have taken share this year in a down bookings market, and this is this a good thing because and it's directly correlated to some of the product innovations that Hyster Yale has put out there over the last couple couple years specifically in the where you know applicable in the warehouse and logistics sort of narrow aisle products if you will where these are very helpful when we're trying to you know take conquest accounts in Chicago and in Toronto we still have those two markets specifically to still represent two of our biggest organic growth opportunities and so we're actually excited about kind of the the how share has moved for our business and all those bookings that you know we have a greater share of will ship and you know next year probably given backlogs and so to me some of the volatility as Ryan said in the in the bookings number especially given the snaps back and forth after COVID.

Speaker Change: I would just maybe put a sub-bullet to that and maybe go a step further. We have taken share this year in the down bookings market.

Ted Jackson: We have taken share this year in a down bookings market. And this is this is a good thing because, and it's directly correlated to some of the product innovations that high-stereels put out there over the last couple of years, specifically in the where, you know, applicable in the warehouse and logistics, sort of narrow aisle products, if you will, where these are very helpful when we're trying to, you know, take conquest accounts in Chicago and in Toronto.

Ryan: And this is a good thing because, and it's directly correlated to some of the product innovations that Hyster Yale has put out there over the last couple of years, specifically in the wear.

Ryan: Applicable in the Warehouse and Logistics.

Ryan: sort of narrow aisle products, if you will, where these are very helpful when we're trying to, you know,

Ryan: Take Conquest Accounts in Chicago and...

Ryan Greenawalt: We still have those two markets specifically to still represent two of our biggest organic growth opportunities. And so we're actually excited about kind of how share has moved for our business. And all those bookings that, you know, we have a greater share of, we'll ship it, you know, next year probably, given backlogs. And so, to me, some of the volatility, as Ryan said, in the bookings number, especially given the snaps back and forth after COVID, that bookings number can be can be big. And as Ryan said, in the end, for us, it's a little bit more muted because of the field population and because we're kind of on the back end of all the production.

Ted Jackson: We still have those two markets specifically to still represent two of our biggest organic growth opportunities. And so we're actually excited about kind of the how share has moved for our business. And all those bookings that, you know, we have a greater share of, we'll ship it, you know, next year probably, given backlogs. And so, to me, some of the volatility as Ryan said in the bookings number, especially given the snaps back and forth after COVID, that bookings number can be can be big.

Ryan: and in Toronto.

Ryan: We still have those two markets specifically to still represent two of our biggest organic growth opportunities.

Ryan: And so we're actually excited about how share has moved for our business. And all those bookings that we have a greater share of, we'll ship next year probably, given backlogs.

Ryan: And so, to me, some of the volatility, as Ryan said, in the bookings number, especially given the snaps

Ryan Greenawalt: That bookings number can be can be big. And as Ryan said, in the end, for us, it's a little bit more muted because of the field population. And because we're kind of on the on the back end of all the

Tony Colucci: That booking number can be big, and as Ryan said, in the end, for us, it's a little bit more muted because of the field population and because we're kind of on the back end of all of the bookings.

Ryan: back and forth after COVID. That bookings number can be big. And as Ryan said, in the end for us, it's a little bit more muted because of the field population and because we're kind of on the back end of all of the production.

Ted Jackson: And as Ryan said, in the end, for us, it's a little bit more muted because of the field population and because we're kind of on the on the back end of all the production. Okay. My next question ties into, you know, a earlier question with three guards to either the guidance, and you'd made a comment with three guards to ECOVER, saying that, you know, it started the second quarter strong in April and then kind of faded out.

Ted Jackson: Okay.

Ted Jackson: My next question, um, ties into, um, you know, an earlier question with regard to the guidance and you've made a comment with regard to Ecovers saying that, you know, it started the second quarter strong in April and then kind of faded out. But you did actually show a nice pop and revenue there nonetheless, nonetheless, you know, I mean, 16 million across the whole segment. When you look at, you know, given the fact that the business faded as you went through the second quarter, and you think about the back half of the year, do you think you'll be able to grow that business year over year in the second half of the year, or will the..., softness that you saw as you exited the second quarter carries forward and leads you to believe that you might see that business decline on an annualized basis in the second And After that, I have one question.

Ted Jackson: My next question, um, ties into, um, you know, an earlier question with regard to the guidance and you'd made a comment with regard to Ecovers saying that, you know, it started the second quarter strong in April and then kind of faded out. Um, you did actually show a nice pop and revenue there, nonetheless, you know, I mean, 16 million across the whole segment. When you look at, you know, given the fact that the business faded as you went through the second quarter, and you think about the back half of the year, do you think you'll be able to grow that business year over year in the second half of the year, or will you see the softness that you saw as you exited? The second quarter carries forward and leads you to believe that you might see that business decline on an annualized basis in the second quarter, and I have more questions after that.

Ted Jackson: My next question ties into, you know, an earlier question with three guards to either the guidance, and you'd made a comment with three guards to ECOVER, saying that, you know, it started the second quarter strong in April and then kind of faded out. You did actually show a nice pop and revenue there nonetheless, you know, I mean, 16 million across the whole segment. When you look at, you know, given the fact that the business faded as you went through the second quarter and you think about the back half of the year, do you think you'll be able to grow that business year over year in the second half of 24 or, you know, has the softness that you saw, you know, as you exited the second quarter carried forward.

Ryan: Okay.

Speaker Change: My next question ties into, you know, an earlier question with regards to the guidance. And you've made a comment with regards to Ecovers saying that, you know, it started the second quarter strong in April and then kind of faded out. You did actually show a nice pop and.

Ted Jackson: You did actually show a nice pop and revenue there nonetheless, you know, I mean, 16 million across the whole segment. When you look at, you know, given the fact that the business faded as you went through the second quarter and you think about the back half of the year, do you think you'll be able to grow that business year over year in the second half of 24 or, you know, it has the softness that you saw, you know, as you exited the second quarter carried forward.

Ryan: revenue there nonetheless, you know, I mean, $16 million across the whole segment.

Speaker Change: When you look at, you know, given the fact that the business faded as you went through the second quarter and you think about the back half of the year, do you think you'll be able to grow that business year-over-year in the second half of

Speaker Change: 24 or you know has the

Speaker Change: softness that you saw you know as you exited

Ryan Greenawalt: I mean, due to believe that you, you know, you might see that business decline on an annualized basis in the second quarter. Yeah, more question after that. Ted, I think, you know, given the performance in Q2, I think it'll be very difficult for Ecovers to kind of repeat what they did in 23. Keep in mind ecovers is selling to both yellow iron and then aggregate and mining sort of dealers, some of which are, you know, handle competitive lines relative to Alta on the earth moving side of the house. And they're, they're, they're stocked up. And so end markets busy in terms of, you know, mulching material processors.

Ted Jackson: I mean, due to believe that you, you know, you might see that business decline on an annualized basis in the second quarter. Yeah, more question after that. Ted, I think, you know, given the performance in Q2, I think it'll be very difficult for for ecovers to kind of repeat what they did in 23. Keep in mind ecovers is selling to both yellow iron and then aggregate and mining sort of dealers, some of which are, you know, handle competitive lines relative to Alta on the earth moving side of the house.

Speaker Change: The second quarter carries forward and leads you to believe that you might see that business decline on an annualized basis in the second half.

Tony Colucci: Ted, I think, you know, given the performance in Q2, I think it'll be very difficult for Eco-Verse to kind of repeat what they did in Q23. Keep in mind Eco-Verse is selling to both yellow iron and then aggregate and mining sort of dealers. Some of which are, you know, handle competitive lines relative to Alta on the earth moving side of the house, and they're, they're, they're stocked up. And so, end markets are busy in terms of mulching material processors, somebody that's cultivating organic material.

Tony Colucci: Ted, I think, you know, given the performance in Q2, I think it'll be very difficult for Eco-Verse to kind of repeat what they did in 23. Keep in mind Eco-Verse is selling to both yellow iron and then aggregate and mining sort of dealers. Some of which are, you know, handle competitive lines relative to Alta on the earth moving side of the house, and they're, they're, they're stocked up. And so, and Markets is busy in terms of mulching material processors, somebody that's cultivating organic material.

Speaker Change: And I have one question after that.

Speaker Change: Ted, I think, you know, given the performance in Q2, I think it'll be very difficult for

Speaker Change: for Eco-Verse to kind of repeat what they did in 23.

Speaker Change: um

Speaker Change: Keep in mind eco versus selling to both yellow iron and then aggregate and mining sort of dealers.

Speaker Change: some of which are, you know, handle competitive lines relative to Alta on the earth moving side of the house. And they're stocked up. And so

Ted Jackson: And they're, they're, they're stocked up. And so end markets busy in terms of, you know, mulching material processors. Any somebody that's, you know, selling, cultivating organic material. These people are busy. They're just not committing, committing to asset. I would say though that the, there could be, and we saw this in 2016, a really strong November and December on Capitol Equipment, as the election sort of went past us. And so that, that absolutely, I could see maybe unlock some things for ecovers, but, you know, not, not something that, uh, we're, we're expecting that.

Speaker Change: End markets busy in terms of, you know,

Ryan Greenawalt: Any somebody that's, you know, selling, cultivating organic material. These people are busy. They're just not committing, committing to asset. I would say, though, that there could be, and we saw this in 2016, a really strong November and December on Capitol Equipment, as the election sort of went past us. And so that, that absolutely, I could see maybe unlock some things for ecovers, but, you know, not, not something that, uh, we're, we're expecting that. Okay.

Speaker Change: mulching material processors, somebody that's cultivating organic material. These people are busy. They're just not committing to assets. I would say, though, that

Tony Colucci: These people are busy. They're just not committing to assets. I would say, though, that there could be, and we saw this in 2016, a really strong November and December on capital equipment as the election sort of went past us. And so I could see maybe unlocking some things for breakovers, but not something that we're expecting to happen.

Speaker Change: There could be, and we saw this in 2016, a really strong November and December on capital equipment as the election sort of went past us.

Speaker Change: And so that absolutely I could see maybe unlock some things for Eco-Verse, but not something that we're expecting to happen.

Ted Jackson: Then my last question is, um, really on the finance side of Utonia. And that's, um, thinking about working capital, you know, um, and actually there's an, uh, an accounting question here as well. But, you know, given the fact that, you know, you're, you're talking about bringing down, you know, the rental suite and, you know, I assume with a lack of a, a lower in market demand outlook that we would see inventories go down as well. It's fair to, um, assume that we should see some, uh, solid free cash flow generation in the back half of this year.

Ted Jackson: And then my last question is really on the finance side of things, Tony, and that's thinking about working capital, you know, and actually there's an accounting question here as well. But, you know, given the fact that, you know, you're thinking about bringing down the rental suite and, you know, I assume with a, like, better term, a lower end market demand outlook that we would see inventories go down as well. Is it fair to...

Ted Jackson: And then my last question is really on the finance side of things, Tony, and that's thinking about working capital, you know, and there's actually an accounting question here as well. But, you know, given the fact that, you know, you're thinking about bringing down the rental suite and, you know, I assume with a, for lack of a better term, a lower end market demand outlook that we would see inventories go down as well.

Ted Jackson: Okay. Then my last question is, um, really on the finance side of Utonia. And that's, um, thinking about working capital, you know, um, and actually there's an, uh, an accounting question here as well. But, you know, given the fact that, you know, you're, you're talking about bringing down, you know, the rental suite and, you know, I assume with a lack of a, a lower in market demand outlook that we would see inventories go down as well.

Speaker Change: Okay.

Speaker Change: And then my last question is really on the finance side of the view, Tony, and that's thinking about working capital. And actually, there's an accounting question in here as well. But given the fact that you're talking about bringing down the rental suite and

Speaker Change: You know I assume with a

Speaker Change: lack of a better term, a lower end market demand outlook that we would see inventories go down as well. Is it fair to assume that we should see some

Ted Jackson: It's fair to, um, assume that we should see some, uh, solid free cash flow generation in the back half of this year. And then how would we think about that, you know, usually the first half of a year, so I'm more challenging for you on a free cash flow basis. But how would we think about that as you go through the first part of 25 and then my kind of accounting question is, I'm, when I look at your balance sheet, the, um, the inventory, you know, from the beginning of the year is down 16, 17 million, but on the cash flow statement, it's, um, it's like $100 million plus use of cash.

Ted Jackson: Assume that we should see some solid free cash flow generation in the back half of this year. And then how would we think about that? You know, usually the first half of the year is a little more challenging for you on a free cash flow basis. But how would we think about that as you go through the first part of this year?

Ted Jackson: Is it fair to assume that we should see some solid free cash flow generation in the back half of this year? And then how would we think about that? You know, usually the first half of the year is a little more challenging for you on a free cash flow basis. But how do we think about that as you go through the first part of this year?

Speaker Change: solid free cash flow generation in the back half of this year? And then how would we think about that? You know, usually the first half of the year is a little more challenging for you on a free cash flow basis. But how would we think about that as you

Tony Colucci: And then how would we think about that? You know, usually the first half of a year is more challenging for you on a free cash flow basis. But how would we think about that as you go through the first part of 25, and then my kind of accounting question is, I'm, when I look at your balance sheet, the, um, the inventory, you know, from the beginning of the year is down 16, 17 million, but on the cash flow statement, it's, um, it's like $100 million plus use of cash. And what am I missing with the disconnect between those two line items from the cash flow statement and the balance sheet?

Ted Jackson: And then my kind of accounting question is, when I look at your balance sheet, the inventory, you know, from the beginning of the year is down 16, 17 million. But on the cash flow statement, it's, it's like $100 million plus the use of cash. And what am I missing with the disconnect between those two line items from the cash flow statement and the balance sheet? That's kind of a side note. And that's it for me.

Tony Colucci: And then my kind of accounting question is, when I look at your balance sheet, the inventory, you know, from the beginning of the year is down $16, $17 million. But on the cash flow statement, it's like $100 million plus the use of cash. And what am I missing with the disconnect between those two line items from the cash flow statement and the balance sheet? That's kind of a side note question. And that's it for me. I'll take those in reverse, Ted, if you...

Speaker Change: goes through the first part of 25. And then my kind of accounting question is when I look at your balance sheet, the the inventory.

Speaker Change: you know, from the beginning of the year is down $16-17 million. But on the cash flow statement, it's like a $100 million plus use of cash. And what am I missing with the disconnect between those two line items from the cash flow statement and the balance sheet?

Ted Jackson: And what am I missing with the disconnect between those two line items from the cash flow statement and the balance sheet? That's kind of a side note. And that's it for me. I'll take those in reverse. Ted, if you, you've got to account for the non cash transfers at the bottom of the cash flow statement, we kind of tied back to the inventory lines. It's just the way that, uh, kind of gap accounting works.

Ted Jackson: That's kind of a side note. And that's it for me.

Tony Colucci: I'll take those in reverse, Ted. You've got to account for the non-cash transfers at the bottom of the cash flow statement to kind of tie back to the inventory lines. It's just the way that kind of GAAP accounting works. So you're right, inventories are down, but we account for the transfers that go into the rental fleet as a reduction to inventory, net, net, if you will, on the Foundry versus the cash flow statement.

Tony Colucci: I'll take those in reverse. Ted, if you, you've got to account for the non-cash transfers at the bottom of the cash flow statement; we kind of tied back to the inventory lines. It's just the way that, uh, kind of gap accounting works. Um, so you're right, uh, inventories are down, um, but we, we, we account for the, the transfers that go into the rental fleet as a reduction in inventory, um, net net, if you will, on the, on the, uh, balance sheet versus the cash flow statement. Your first question on, uh, working capital, yeah, the first half is always more difficult, um, in terms of working capital investment.

Tony Colucci: I'll take those in reverse, Ted. You've got to account for the non-cash transfers at the bottom of the cash flow statement to kind of tie back to the inventory lines. It's just the way that kind of GAAP accounting works. So, you're right, inventories are down, but we account for the transfers that go into the rental fleet as a reduction to inventory, net, net, if you will, on the Your first question on working capital.

Speaker Change: kind of a side note question. And that's it for me.

Speaker Change: I'll take those in reverse, Ted, if you've got to account for the non-cash transfers at the bottom of the cash flow statement.

Ted Jackson: to kind of tie back to the inventory.

Ted Jackson: lines. It's just the way that kind of gap accounting works. So you're right, inventories are down, but we account for the transfers that go into the rental fleet as a reduction in inventory.

Ted Jackson: Um, so you're right, uh, inventories are down, um, but we, we, we account for the, the transfers that go into the rental fleet as a reduction in inventory, um, net net, if you will, on the, on the, uh, balance sheet versus the cash flow statement. Your first question on, uh, working capital, yeah, the, the first half is always more difficult, um, in terms of working capital investment. If I look at last year, um, we, we are working capital investment for the first half of the year, um, was, uh, something like $43 million, um, in the first half of the year, networking capital, and we ended the year, something like $15 million, uh, $16 million in slide 14 of our investment.

Tony Colucci: Yeah, the first half is always more difficult in terms of working capital investment. If I look at last year, our working capital investment for the first half of the year was something like $43 million. In the first half of the year, net working capital, and we ended the year with something like $15 million, $16 million, on slide 14 of our investor presentation. So yeah, we invested $15 million, and we ended the year, through the first half of 2023, ended the year at $16 million of investment.

Tony Colucci: Your first question on working capital. Yeah, the first half is always more difficult in terms of working capital investment. If I look at last year, our working capital investment for the first half of the year was something like forty-three million dollars in the first half of the year on networking capital. And we ended the year somewhere around fifteen million dollars, sixteen million dollars, on slide fourteen of our investor presentation. So, yeah, we invested fifty million, and we ended through the first half of twenty-three into the year at sixteen million in investment. We're kind of on the same page, meaning we should be able to generate some gains.

Speaker Change: Net, net, if you will, on the, on the

Speaker Change: That was cheap versus the cash flow statement.

Speaker Change: Your first question on working capital. Yeah, the first half is always more difficult in terms of working capital investment. If I look at last year, we had $1.5 billion in capital investment.

Tony Colucci: If I look at last year, um, we, we are working capital investment for the first half of the year, um, was, uh, something like $43 million, um, in the first half of the year, networking capital, and we ended the year, something like $15 million, uh, $16 million in slide 14 of our investment. Officer presentation. So yeah, we invested 50 million, and we ended through the first half of 23, ended the year at 16 million of investment. We're kind of on the same takes meeting. We should be able to generate some gains here from a working capital perspective over the back half of the year.

Speaker Change: our working capital investment for the first half of the year.

Speaker Change: was something like $43 million.

Speaker Change: In the first half of the year, net working capital, and we ended the year something like fifteen million dollars, sixteen million dollars and slide fourteen of our investor presentation. So, yeah, we invested fifty million and we ended through the first half of twenty three into the year at sixteen million of investment.

Ted Jackson: Officer Presentation. So yeah, we invested 50 million and we ended through the first half of 23, ended the year at 16 million of investment. We're kind of on the same takes meeting. We should be able to generate some gains here from a working capital perspective over the back half of the year. And Ted had mentioned that that's his last question.

Tony Colucci: We're kind of on the same page, meaning we should be able to generate some gains here from a working capital perspective over the back half. And Ted had mentioned that that was his last question, so I turn it over to the operator to close the call.

Operator: Thank you. That concludes today's conference call. Thank you for your...

Speaker Change: We're kind of on the same page, meaning we should be able to generate some gains here from a working capital perspective over the back half of the year.

Operator: And Ted had mentioned that that's his last question.

Operator: So turn it over to the operator to close the call. Thank you. That concludes today's conference poll. Thank you for your participation. You may now disconnect your.

Operator: So turn it over to the operator to close the call. Thank you. That concludes today's conference poll. Thank you for your participation. You may now disconnect your

Speaker Change: And Ted had mentioned that that's his last question, so turn it over to the operator to close the call.

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