Q1 2025 Alta Equipment Group Inc Earnings Call
Thank you for your time, and I'll see you in the next video.
Good afternoon, and thank you for attending the Alta Equipment Group 1st quarter 2025 earnings conference call. My name's Lydia 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 with Alta Equipment Group.
Jason Dammeyer: Thank you, Lydia. Good afternoon, everyone, and thank you for joining us today. Oppressed release, detailing Alta's first quarter, 2025 financial results, was issued this afternoon and is posted on our website, along with the presentation designed to assist you in understanding the company's results.
Speaker Change: On the call with me today, 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 first quarter 2025 financial results. We will begin with some prepared remarks before we open the call for your questions.
Please proceed to slide two.
Speaker Change: These forward-looking statements are subject to both known and unknown risk uncertainties and assumptions, including those related to altered growth, market opportunities, and general economic and business conditions.
Speaker Change: We are basically for 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.
Speaker Change: Although we believe these expectations are reasonable, we undertake no obligation to provide any statement to reflect changes that occur after this call.
Speaker Change: Descriptions of these and other risks that could cause actual results to differ materially from the forward-looking statements are discussed in a report filed with the SEC, including our press release that was issued today.
Speaker Change: During this call, we may present both GAP and non-GAAP financial measures, a reconciliation of GAP to non-GAAP measures that 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: Thank you, Jason. Good afternoon, everyone and thank you for joining us today to review our results for the first quarter of 2025. I will begin with an overview of key trends we're seeing in our business and close with our outlook for the year. After that, I'll hand it over to Tony to walk through the financials in more detail.
Ryan Greenawalt: As many business leaders of Echo this earning season, the first quarter brought its share of challenges driven by uncertainty around US trade policy, tariffs, and broader economic sentiment.
Ryan Greenawalt: Despite those headwinds, our first quarter results reflect the underlying strength and resilience of our business model We remain focused on discipline, execution and saw continued stability across several key segments Let me start with construction equipment
Ryan Greenawalt: Operating trends in our construction equipment segments were stable and reflected of typical seasonal dynamics in our Northeast and Midwest regions.
Ryan Greenawalt: As weather improved in late March, we saw fleece appointments in those regions pick up naturally as construction activity increased.
Ryan Greenawalt: Looking further south, the Florida construction market remains strong, bullied by ongoing investment from both the Florida Department of Transportation and the federal government.
Ryan Greenawalt: Our overall market and construction equipment expanded modestly year over year. The stability we're seeing in construction equipment is attributable to infrastructure-related projects. These projects, unlike general non-residential construction, continue to drive steady demand for heavy equipment.
Ryan Greenawalt: While some geographies have seen some softening and local, private, non-residential construction, we are also encouraged by some early signs that the regulatory headwind on permitting of new large-scale projects is easy.
Ryan Greenawalt: Turning to our material handling segment while new equipment sales were down compared to the elevated delivery volumes we saw in key one of last year, we were encouraged by two important
Ryan Greenawalt: First, we experienced stronger margins on both new and used equipment sales, which helped offset the lower delivery volumes. And second, we saw solid booking throughout the quarter, which positioned us well for a healthy pipeline in the back half of 2025.
Ryan Greenawalt: Our product support business held strong and remains a critical pillar of strength. Now to the macro environment.
Ryan Greenawalt: Regarding tariffs, while the situation remains fluid based on current information from our OEM partners, we believe that the associated cost increases and surcharges are manageable.
Ryan Greenawalt: We're confident that will allow us to remain competitive across our markets and we have been encouraged by the partnership displayed by our OEMs as we collectively navigate these challenges.
Ryan Greenawalt: Together the resilience of our end market to the stability and product support and our clear operational execution support our decision to reiterate guidance on an organic basis.
Ryan Greenawalt: As we continue executing on our purpose driven strategy, we sharpened our focus on aligning the right products with the right customers in every market we serve.
Ryan Greenawalt: This quarter our operational priorities reflect a deliberate effort to optimize resources, strength and margin performance, and deepen customer engagement across both geography and segment.
Ryan Greenawalt: By refining our portfolio and tailing our go-to-market approach to the unique dynamics of each region, we are creating the structural clarity and accountability needed to drive sustained profitable growth.
Ryan Greenawalt: As part of this focus, we've made this strategic decision to divest substantially all of our aerial equipment rental business in the Chicago land market a business we built organically over the past seven years [inaudible]
Ryan Greenawalt: While we're proud of what we created, this particular segment no longer aligned with our long-term objective.
Ryan Greenawalt: Competitive pressures, limited product support yield, and the highly commoditized nature of aerial equipment made it clear that our capital could be more effectively deployed in areas with stronger strategic fit and higher return potential.
Ryan Greenawalt: Finally, I want to update you on a key capital allocation decision.
Ryan Greenawalt: Our Board of Directors has authorized the indefinite suspension of our quarterly dividend. This decision was made with a clear eye toward value creation. Given the current disparity between our stock price and our view of Alta's intrinsic work, we believe shareholders will benefit more from capital return via buybacks.
Ryan Greenawalt: As part of this shift, the board has increased our share report program by $10 million, bringing the total to $30 million.
Ryan Greenawalt: Concurrently, the board has allocated $10 million to a Rule 10B51 plan, enabling repurchases during restricted periods through a third-party fiduciary thereby enhancing the company's ability to execute on the repurchase program.
Ryan Greenawalt: The strategy reinforces our belief that Alta shares represents a compelling investment and we are committed to executing on this buyback initiative.
Ryan Greenawalt: In summary, quarter one demonstrated the durability of our business, the effectiveness of our strategic initiatives, and our continued focus on long-term value creation. We remain confident in our positioning for the remainder of 2025, and we appreciate your continued support as we execute our growth and capital allocation strategies.
Ryan Greenawalt: With that, I'll turn the call over to Tony who will walk through our financials and more details.
Tony Colucci: Thanks, Ryan. Good evening, everyone, and thank you for your interest in Alta Equipment Group and our first quarter of 2025 financial results.
Speaker Change: Before getting into the quarter, I want to begin by recognizing our employees, customers, and partners for their support and resiliency thus far in 2025, as we navigate the impacts both puts and takes of a dynamic macro environment.
Speaker Change: I'd also like to welcome our 28 new teammates in Quebec City, Canada, whom joined us through the La Chariots, Acquisition and Q1. We are excited to be expanding our footprint for the Yale brand and our material handling segment across Northeast Quebec. Myself and the rest of the team look forward to earning your trust.
Speaker Change: My remarks today will focus on three key areas. First, I'll present our first quarter financial results which were naturally affected by the seasonal impacts of winter weather on the construction business in our northern regions. But overall, we're in line with expectations.
Speaker Change: As part of that discussion, I'll touch on cashless with a quarter and check in on the balance sheet with a few comments on the impact of the diversity of our aerial business in Illinois in the plan to use of proceeds from that transaction.
Speaker Change: Second, I'll discuss the reaffirmation of our fiscal year 2025 Adjustment EBITDA guidance.
Speaker Change: As part of that discussion, I will discuss a few notes and underpinning assumptions in the guide including our view on tariffs and their influence on our prospects for the
Speaker Change: Lastly, I'll comment on our rebalance capital allocation strategy, what it means for shareholders and why we think this is the appropriate move at this time.
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 10Q, which is available on our investor relations website at ltg.com.
Speaker Change: With that said, for the first portion of my prepared remarks and in line with slide 9 through 19 in the earnings deck first quarter performance
Speaker Change: For the quarter of the company recorded revenue of $423 million, a reduction of 4.2% versus the last year.
Speaker Change: The quarter was underpinned by solid performance year over year in our product support department, which was also set primarily by $15.7 million in reduced new equipment sales in our material handling segment and lower rental revenues from our construction segment.
Speaker Change: with the latter issue being strategic in nature and related to our fleet optimization plan that began in the second half of 2024.
Speaker Change: I would also note that ecoverse, the portfolio company in our master distribution segment.
Speaker Change: Outperformed last year's regular revenue figure by 35.9% in the quarter, a function of solid end market demand for environmental processing equipment, and sub-dealer appetite to stock inventory this year as opposed to the over-supplied equipment market that was Q-1 of 24.
Speaker Change: Lastly, on revenue, as noted, we have reduced new equipment sales in our material handling segment year over year while we were slightly disappointed in this result, especially given the difficult comp. We know one that some of this variance was timing related in terms of being able to prep and deliver units to our customers.
Speaker Change: 2. We have yet to see any major cancellations in our lift truck sales pipeline and 3 is Ryan mentioned. We are encouraged by Q1 lift truck bookings overall.
Speaker Change: which we believe will have a positive influence on the back half of 25 and will potentially allow us to pick up some of the Equipment Sales Variants realizing Q1 over the remainder of the year.
Speaker Change: Gross margins and operating expenses outperformed in the quarter. From a gross margin perspective, two things of note. One, stabilization and new and used equipment gross margins on a sequential basis.
Speaker Change: and two, we realize the 230 basis point year-over-year increase in service growth margin, a function of the ongoing initiative to drive technician efficiency with the bulk of the positive variance coming specifically from our construction segment where the variance was 290 basis points.
Speaker Change: The increase in service gross margin percentage helped to offset the overall revenue missing the quarter by adding $2.7 million in gross margin which converts at a high rate to the bottom line for the enterprise year of a year.
Speaker Change: On the SDNA line, we realized the positive impact and continuation of our 2024 expense optimization initiatives in the quarter, as this line was down a notable $7.9 million year over year, with a sizable portion of this variance being related to fixed expense reductions.
Speaker Change: that we expect will hold over the remainder of the year.
Speaker Change: Investors may recall that I highlighted these two items, product support efficiencies and SG&A reductions on our last call, as two of the top underpinning factors of our fiscal year 2025 EBITDA guidance, and performance through the first quarter confirms those two
Speaker Change: Overall, nearly offset the year-over-year reductions and overall gross profit related to reduced equipment sales and rental revenue as we recorded $33.6 million of adjusted EBITDA for the quarter down just to half a million dollars versus Q1 of $24
Speaker Change: Important to note that the company is able to realize nearly the same level as the EBITDA year-over-year on a reduced balance sheet as the gross book value of our rental fleet is down $25 million year-over-year as we aim to drive rental utilization and ultimately returns on invested capital higher in 2025.
Speaker Change: In terms of cash flows for the quarter, I would point investors to slide 13, slide 13 and 14 which we presented for the first time on our last call as a reminder slide 13 presents the definitional foundation of rent to rent flea versus rent to sell equipment
Speaker Change: As noted on the slide, Renta Renta is treated and invested in the Am maintenance gap X like a traditional fix asset.
Speaker Change: Notably, rent to rent fleet is meant to be held for the long term and the return on investment in the rent to rent fleet will come via the rental stream on that fleet over many years.
Speaker Change: as opposed to rent to rent. Rent to sell equipment should be viewed more like an analyst would view general inventory as it is meant to be a temporary or short-term investment equipment to take advantage of market demand for lightly used primarily heavy construction equipment.
Speaker Change: on to slide 14, which presents the cash flows both before and after RTS or rent to sell decision. As noted for the quarter, free cash flow before rent to sell decision, a metric that we believe functions as a proxy for operating cash flows prior to other capital decision with approximately $23 million in the quarter.
Speaker Change: Investors should note that if one were to layer our full year guidance on top of these numbers and assume a similar conversion rate on EBITDA, we would be pacing towards approximately $120 million and free cash flow before rent to sell decisioning in 2025.
Speaker Change: Last point on slide 14, similar to last quarter, the slide is fully reconcilable to our gas-based statement of cash flows, and that reconciliation is available on Appendix B of the earnings presentation.
Speaker Change: to check in on the balance sheet as of 331 and as depicted on slide 15, we ended a quarter with approximately $290 million of cash and availability on our revolving line of credit facility.
Speaker Change: A quick note on the divasture of our aerial fleet, rental business in Illinois, and its expected impact on the balance sheet.
Speaker Change: First, this was a leverage of creative deal for Alta as the business was producing approximately $4 million of pro-forming e-modal on an annual basis.
Second, in terms of cash proceeds [inaudible]
Speaker Change: We received $18 million in cash at close from the seller, but also retained $2 million of working capital, mainly customer receivables [inaudible]
which will convert to cash in the short run.
Speaker Change: Effectively yielding approximately $20 million in cash proceeds on the transaction. The intentions that we will allocate this $20 million in proceeds to our outstanding debt and pick up approximately $10 million in liquidity given the calculated impact to the
Speaker Change: In total, post-Iveessager, we will near $300 million in liquidity, which is a comfortable amount to navigate any business climate that may be ahead of us.
Speaker Change: Moving on to the second portion of my prepared remarks, 2025 adjusted EBITDA guidance, which was reaffirmed on an organic basis in today's earnings release.
Speaker Change: In terms of the guidance range itself, we now expect to report $171.5 million to $186.5 million of adjusted EBITDA for the full year 2025.
Speaker Change: The shifting of the guidance is exclusively related to the divestager of our aerial business in Illinois, as previously mentioned, and the seasonally adjusted EBITDA associated with that business.
Speaker Change: A few notes and assumptions on the re-affirmation of the guide. First, our solid-cute first-quarter performance was in line with the expectations from an EBITDA perspective, and the early read-on in April performance doesn't suggest much deviation from our overall plan for
Speaker Change: Second, disability and infrastructure based markets, we believe, will act as an insulator against potential macro volatility for our construction site.
Speaker Change: Third, we expect to continue to Cretan, quarter over quarter, and our product support, course, more product support, gross margin performance, specifically in our service department, driven by a continued focus on technician efficiency.
Speaker Change: Additionally, as discussed, we also expect a continuation of the out performance that we saw on Q1 on the SGNA line on a comparative basis as we had throughout the year.
Speaker Change: Lastly, while material handling equipment revenues were off year over year, we were encouraged by the pace of bookings we saw in Q1 and outside of any unforeseen demand degradation due to something out of our control. It's our expectation that this pace and bookings will bold well for material handling sales in the back half of 25.
Now, in terms of downside risks.
First
Speaker Change: and something that we mentioned on our Q4 call. We continue to believe that the oversupply
Speaker Change: of Construction Equipment in the industry impacted Q1 2025 margins on equipment sales year over year, and we expect, so long as demand for equipment holds up, that the supply overhang will continue to recede throughout the summer, and we expect to see some reversion in equipment margins in the back half of 25.
Speaker Change: As mentioned previously, we observed sequential stabilization in this regard in Q1.
Speaker Change: Second, and this will come as no surprise, our guidance is predicated on a no significant demand reduction stemming from a recession in the United States, or the reinstatement of the 90-day post-terrorism.
Speaker Change: In the current state, we believe that the surcharges we have observed from our major OEMs, which has effectively range from 0 to 10 percent are manageable for us to remain competitive in the marketplace. This is a great place for us to stay competitive in the marketplace.
Speaker Change: However, any further significant increases we believe will push the situation beyond manageable and reduce customer demand.
Speaker Change: Additionally, the primary area of concern that we are monitoring closely while it's at the tariffs is the impact on the manufacturing sector primarily as it relates to our material handling segment and our operations in the Midwest and Canada.
Speaker Change: Moving on to the last portion of Mike prepared remarks, a few comments on the rebalance capital allocation strategy announced earlier this evening.
Speaker Change: To start and as depicted on slide 18 we have always used the word balance when it came to our capital allocation strategy and we have pressed each of the areas depicted on slide 18 at various points in our five years as a public company [inaudible]
Speaker Change: First, it was pressing on a creative M&A. Then it was to reward shareholders with a dividend given our increased size, specifically in product support revenues, and our defensive cashflow profile.
Speaker Change: At times it has been pressing on organic growth, whether it be rental fleet, new business fines or new geographies.
Speaker Change: More recently, in the second half of 2024, it was depressed on debt paydown as we kept quickly optimised rental fleet in the face of reduced demand.
Speaker Change: And along the way, we have opportunistically, albeit at a modest amount, being able to buy back shares when our reporting windows, attractive share price, and the lack of opportunity to allocate it capital elsewhere all converged.
Speaker Change: While a strategy to date has encompassed all of the capital allocation buckets, they have been strategic and timely in terms of opportunity, and this latest rebalancing is just that, timely and strategic for our shareholders.
Speaker Change: To be clear, the dividend suspension is a recognition of the value of the opportunity via the share buyback and a redeployment of dollars earmark for shareholders versus a signal of anything else related to our business, our performance, or our prospects. In fact, it's the opposite.
Speaker Change: The authorization of $10 million, the $10 million increase in the buyback program and the allocation of $10 million into a $10B51 plan.
Speaker Change: is the company investing in itself on behalf of shareholders as we take advantage of the disconnect between our share price and Alta's intrinsic value, which is predicated on our future, our resilient Princess model, our diverse regions and customer base, our supply partnerships and most importantly, our best in class team.
Speaker Change: In closing, I want to thank my all-to teammates for a solid start to the fiscal year amidst the fluid backdrop. I wish you all the best as we head into the summer months and look forward to updating investors on our Q2 performance in August .
Speaker Change: Thank you for your time, and I will turn it back over to the operator for Q and A.
Speaker Change: Thank you. Please press star for the by the number one if you'd like to ask the question and ensure your device is not needed locally when it's your turn to speak. If you change your mind, you have questions already been answered. You can withdraw from the queue by pressing star for the by the number two.
Speaker Change: Our first question comes from Steven Ramsey with Thompson Research Group. Please go ahead, your line is open.
Speaker Change: Good evening, everyone. I thought that the vestiture was an interesting deal. The logic of it makes complete sense. Do you feel like there are more assets within the company where you could do this kind of thing to manage the portfolio and manage the capital structure?
Ryan Greenawalt: I see this is Ryan. I could take that one. You know, I think that, you know, we're looking at it as more of a product line, you know, scenario from here. It would be more surgical, you know, what we see from here. I guess is the best way to answer that.
Speaker Change: Steve, I would just add that, you know, through some of the M&A, we have picked up, as Ryan mentioned, some product lines that were just ancillary, maybe, to the strategic underpinnings of various, various deals, and I like Ryan's term there. They're surgical.
and just trying to talk to us.
Speaker Change: Okay, and then you discuss this, but wonder if you could elaborate more on the parts and service, gross margin improvement, particularly with the lower revenue.
Speaker Change: Impressive to see that. Can you talk about a little bit more what's happening in the near term and the runway on operating optimization that can help in FY 25 and potentially beyond.
Speaker Change: Sure, Steve. You know, if you, as I mentioned in my prepared remarks, if you kind of...
Speaker Change: Peel back the onion and look at which segment sort of all performed or drove us it was our construction segment and you know relative to our material handling segment our construction segment we're going to do it again.
Speaker Change: There's been a lot of M&A in that segment and we're relatively youthful on a relative basis in terms of, you know, operating in areas like Florida, upstate New York and even Chicago land in some regard and so, you know it just been more focus. Thank you.
on non-billable time, training technicians.
Thank you.
Speaker Change: you know, managing all the way down to the work order level to just make sure that we're minimizing non-villable time and putting the right person on the right job from a technician perspective.
Speaker Change: and as I mentioned we expect this to continue but it's a it's really a salute kind of to our our managers and the construction business and a sort of focus in on on efficiency that we expect to continue.
Speaker Change: edits and adjustments makes sense to me. How do you think about just philosophically?
Capitol Return Aaron
Speaker Change: Get Reduction, maybe near-term, long-term if there's any divergence in kind of how you want to use the excess capital coming in to manage the capital structure.
Steve, I think, if we want to kind of...
You know, we're going to be opportunistic and
Right now, that means...
Speaker Change: and just as a matter of course, you know, excess cash flows beyond those, those things are going to be...
Speaker Change: Servicing the revolver. So, you know, we're just going to continue to execute and continue to remain nimble.
Inter and there's all sorts of
There's multiple-
Speaker Change: Parameters, right? And the share price is one of the parameters and an important one. And to the extent that the share price.
Speaker Change: is punished to the point where it makes sense to do what we're doing. We want to show investors and shareholders that that will be supportive. And so this is our living up to the word balance in our mind.
Speaker Change: and we're excited about this share repurchase program because we think we can drive a lot of value here.
That's helpful. Thank you guys.
Speaker Change: And next question comes from Ted Jackson with Northern Security, please go ahead
Thanks very much. Good evening.
Thank you.
Speaker Change: I got a couple of questions. One of them is just on
Speaker Change: You know, I think that that market might be a little challenged and so I'm kind of curious where you're
Speaker Change: You know, seeing the lack of a better term strength in there and where you might be saying weakness that's my first question
Speaker Change: Stability, I think, is the word that I would use, and that's our biggest end market now in the material analyst food and beverage and all of the sort of ancillary, all the offshoots of just food and beverage.
Speaker Change: You know, I would say utilities are standing out in terms of strengths [inaudible]
Speaker Change: as well as just medical, so just throw that into the sort of human sustenance and that's...
Speaker Change: a little bit of Neuatized relative to some of the other categories. You know, at the moment, and well, at least in Q1, we didn't see any real pullback in...
Speaker Change: kind of bookings in manufacturing. Now, Q1 recall was before liberation day, so, you know, there's a lot of conversations having
Speaker Change: We're having a round manufacturing in the regions that I mentioned in the Midwest and Canada specifically with the automotive sector but
Speaker Change: That's where I think there's more of the kind of the unknown in the material handling businesses and manufacturing for us and the strengths I would say is you know anything around food and beverage, utilities and the medical, the medical industry.
Speaker Change: And you didn't see, I mean, maybe you're too far back, but it wasn't like you got into April and there was like a...
Speaker Change: The pause was slowed down. I mean, I've heard that on a number of calls that things were fine in April . It was just kind of...
Speaker Change: Ted, without getting into the numbers that we see for April in terms of just, you know, demand outlook.
I would classify it as stable, actually, for us.
Speaker Change: Okay, and then shifting over just on two fronts with regards to tariffs, one on the distribution, you know, the environmental business, you doing poor equipment from...
within that particular domain.
Yeah, that's actually the most direct.
Speaker Change: Impact in terms of, you know, just we are the importer for master distribution primarily from Europe . The good news about kind of having direct line of sight is we are in contact with the OEM, OEMs, I should say, over in Europe and actively kind of.
Let's say share in the impact
Speaker Change: but to the extent some of the 90-day pause tariffs go back into place.
Speaker Change: You know, that's where I would caveat the the impact on master distribution. So for now manageable there, but you're right directly impactful and anything further, you know, could could.
Yeah, proof to be negative.
Speaker Change: And would that be the same with Volvo, I mean by recall from listening to their call?
You know, Ted, it's not as direct.
Speaker Change: with Volvo as it is with some of the OEMs for master distribution. I would also point out that Volvo does final assemble a fair amount of product in the US.
Speaker Change: And in terms of their supply chain and the impacts, we just don't have that level of granular sort of understanding what I will say is and we're not going to quote specific
Speaker Change: Vendors on this call in terms of surcharge. Just come from a competitive perspective. What I will say is Volvo is
Speaker Change: is on the lower end of the zero to 10% range in terms of the impact thus far on our
Art by Price.
Speaker Change: Okay, and then my last, which is just more of a curiosity, you know, you have, you know, this is nice business and...
Speaker Change: Do you know what I'm saying? That this current situation caused any kind of recalibration of how you might run portions of your business because of that, you know, dynamic.
and the two businesses.
Speaker Change: You know, some of the tax laws forced this upon you, but they run pretty much independent of one another.
Speaker Change: and I think some of this stuff, which is sort of...
Speaker Change: and the size that independence of them running independent. There's not a lot of, you know...
intercompany.
Speaker Change: Sales going on, et cetera. So I think some of the tariff stuff which is reinforced some of that independence or I'm sorry the, yeah, the operational independence of the business unit.
Speaker Change: Okay, well that's it for me. Thanks for taking my questions. Talk to you.
Thanks.
Speaker Change: and next question comes from Laura Mayo with the Riley Security. Please go ahead.
Hi, I think you're taking the question.
Sure.
Speaker Change: So my first question is can you provide any update on the Emobility Business and are you seeing any flow down there or tied to the new administration?
Speaker Change: I can take that if Ryan wants to jump in. So our immobility business is relatively nascent in material amount of revenue that's come through there and just given the kind of startup nature of some of the OEMs that we've worked with.
Speaker Change: You know, it just hasn't been a big part of our business.
Speaker Change: What I will say is our OEM Nikola is probably many of our aware file for Bankruptcy that is still ongoing.
Speaker Change: What we can say from the company's perspective, like we've told investors all along that we were going to be asset light in terms of...
Speaker Change: Our commitment to, you know, hard assets and infrastructure relative to this business.
Speaker Change: and that has served us well here and we don't have any material impacts.
Speaker Change: to report from Nicolas' situation, which is a good thing. On top of that in terms of the go-forward strategy, I would turn it over to Ryan.
Ryan Greenawalt: Sure, what I would just add is that we're well positioned to jump into the opportunity as it starts to mature. We've credentialized our team for charging.
Integrating Charging Infrastructure, and the Delivery of Compressed Hydrogen Dasts.
Ryan Greenawalt: So we were kind of all ready to go and this setback with Nikola, you know, definitely was a setback with our strategy, but we are evaluating other potential class eight vendors.
Ryan Greenawalt: and we continue to work with our other OEMs on the early stage commercialization of some of these other technologies for more of the last mile and lighter duty applications for electric vehicles.
Ryan Greenawalt: Okay, thanks. My second question is, do you see more favorable pricing for potential acquisitions?
Speaker Change: Yeah, Laura, I'll take that one. You know, we have, Ryan's been at this longer than I, but I've been with the company 10 years in, you know,
Speaker Change: Dynamics, whether it be the pandemic or even the Great Recession, you know, back in
Speaker Change: Friended, kind of in the same range. I think what happens in times of volatility in my 10 years with the company is you do tend to have management teams that or ownership groups that have succession planning issues that [inaudible]
I don't want to deal with another-
Speaker Change: Let's just say, you know, downturn for lack of a better term and there may be more opportunity. I don't so it's one way to say I don't think it impacts pricing, but it could impact opportunity for us to pick up a strategic asset.
Okay, thanks, that's helpful. I'll pass it on.
Thank you.
Speaker Change: Thank you. We have no further questions, so this concludes our Q&A session as well as the conference call. Thank you very much for joining us today. You may now disconnect your line.