Q1 2020 Earnings Presentation May 14, 2020 I. Introduction II. - - PowerPoint PPT Presentation

Q1 2020 Earnings Presentation May 14, 2020

Q1 2020 Earnings Presentation | 2

• II. CEO Overview
• III. CFO Overview
• IV. Appendices

I. Introduction

Q1 2020 Earnings Presentation | 3

Legal Disclaimers

Forward-Looking Information This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. Alta’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected

• results. Most of these factors are outside Alta’s control and are difficult to predict. Factors that may cause such differences

include, but are not limited to: changes in applicable laws or regulations; the possibility that Alta may be adversely affected by

• ther economic, business, and/or competitive factors; demand for Alta products and services; Alta’s business strategy; Alta’s

financial strategy, operating cash flows, liquidity and capital required for Alta’s business; Alta’s future revenue, income and

• perating performance; the termination of relationships with major customers; laws and regulations, including environmental

regulations, that may increase Alta’s costs, limit the demand for its products and services or restrict its operations; risks associated with the expansion of our business or our ability to integrate acquisitions; disruptions in the political, regulatory, economic and social conditions domestically or internationally; major public health issues, such as an outbreak of a pandemic or epidemic (such as the novel coronavirus COVID-19), which could cause disruptions in our operations, supply chain, or workforce; a failure of Alta’s information technology infrastructure or any significant breach of security; potential uninsured claims and litigation against us; Alta’s dependence on the continuing services of certain of Alta’s key managers and employees; plans,

• bjectives, expectations and intentions that are not historical; and other risks and uncertainties identified in this presentation or

indicated from time to time in the section entitled “Risk Factors” in Alta’s annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission (the “SEC”). Alta cautions that the foregoing list of factors is not exclusive and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. Alta does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, including Adjusted EBITDA, Economic EBIT, and free cash flow. Alta believes that these non-GAAP measures are useful to investors for two principal reasons. First, Alta believes these measures may assist investors in comparing performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance. Second, these measures are used by Alta’s management to assess its performance and may (subject to the limitations described below) enable investors to compare the performance of Alta to its competition. Alta believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate Adjusted EBITDA and free cash flow and other non-GAAP financial measures differently, and therefore Alta’s non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies.

Q1 2020 Earnings Presentation | 4

Participants

Introduction Ryan Greenawalt, CEO Tony Colucci, CFO

Q1 2020 Earnings Presentation | 5

• II. CEO Overview
• III. CFO Overview
• IV. Appendices

I. Introduction

Q1 2020 Earnings Presentation | 6

Q1 Highlights

CEO Overview

Reported solid net revenue and adjusted EBITDA results ▪ Net revenue increased to $180 million over $102 million in last year’s first quarter and Adjusted EBITDA of $18.8 million in Q1 2020 reflecting slight pullback on an organic basis. Expanded geographic footprint and further diversified customer base via acquisitions ▪ The company acquired Flagler and Liftech in February 2020, expanding its geographic footprint and end-market diversity while scaling the company’s partnerships with key OEM’s. Successful capital raise through BRPM business combination ▪ On February 14, 2020 Alta’s predecessor, Alta Equipment Holdings, Inc., and B. Riley Principal Merger Corp., a special purpose acquisition company closed on a business combination with a pro forma enterprise value of approximately $540 million. Well positioned for longer term success as economy recovers and markets open ▪ Unique business model, consisting of populating our territories with new, used and rental equipment and harvesting the field population to grow higher margin parts and services revenue positions us well to continue to produce steady cash flows over the long term.

Q1 2020 Earnings Presentation | 7

Swift Response to COVID-19 Pandemic

CEO Overview

Employee protocols put in place to assure safety and health ▪ Adjusted operations to permit virtually all the company’s sales and back office employees to work remotely and established new health and safety related protocols. Relentless focus on customer service – all 43 branches remain open ▪ Alta has been deemed an “essential” business in all the company’s geographies and all 43

• f our branches are currently open and operating.

Efficiently managed inventory & reduced expenses ▪ Implemented initiatives to reduce costs across the organization including the elimination of all non-essential spending, reduced executive and senior level compensation and workforce reductions and furloughs. Preserved liquidity and strong balance sheet ▪ Maintained ample liquidity and financial flexibility to navigate and efficiently manage business operations, entering 2Q 2020 with approx. $150MM of liquidity to fund operations.

Q1 2020 Earnings Presentation | 8

Company Overview

Broad End Market Coverage ▪ Residential Building Construction ▪ Specialty Trade Contractors ▪ Highway, Street, and Bridge Construction Construction ▪ Transportation and Warehousing ▪ Professional, Scientific, and Engineering Services ▪ Administration Support and Waste Management Services Services ▪ Automotive Repair and Maintenance ▪ Biotech / Pharma ▪ Government Support ▪ Food and Beverage ▪ Campus / Educational Other ▪ Motor Vehicle Manufacturing ▪ Plastics Product Manufacturing ▪ Forging and Stamping ▪ Iron and Steel Mills Manufacturing Manufacturing ▪ Machinery, Equipment, and Suppliers Merchant Wholesalers ▪ Durable Goods Merchant Wholesalers ▪ Building Material and Supplies Dealers Wholesale and Retail Trade Comprehensive Service Offering Across Heavy Equipment and Industrial Products New and Used Equipment Rentals Parts and Service Equipment Consulting Maintenance and Repair Select Equipment Offering: Industrial

Select Equipment Offering: Construction

Best-in-Class Brand Portfolio Creates Cross-Selling Opportunities

CEO Overview

Q1 2020 Earnings Presentation | 9

Key Stakeholder Relationships

Skilled Work Force ▪ Alta is consistently acknowledged by OEMs as a top dealership partner

• 2019 Leader in Market Share – Large Markets
• Top 4 Hyster-Yale dealer nationally
• #1 Ranked JCB Dealer in Network

▪ Alta is viewed as a preferred consolidator by both Volvo and Hyster-Yale Collaborative OEM Relationships

CEO Overview

▪ Skilled technicians are essential to providing aftermarket parts and service that customers require ▪ Hired an in-house Recruiting Manager to develop the recruiting strategy and relationships to quickly hire techs. ▪ To ensure access to skilled technicians across its footprint, Alta has established the Technical School Initiative

• Branch partnerships with a local technical school
• Tuition reimbursement programs for recent tech grads
• Fully paid tuition programs at certain partner schools
• Internship opportunities for current students
• Starter tool set bonus

▪ Of our 1,700+ current Alta employees, approx. half are skilled technicians

DEALER OF THE YEAR TOP DEALER AWARD

LEADER IN MARKET SHARE – LARGE MARKETS

Q1 2020 Earnings Presentation | 10

Expanding Footprint in Key Geographic Markets

Geographic Footprint ▪ 43 locations throughout Michigan, Indiana, Illinois, Massachusetts, Maine, New Hampshire, Connecticut New York, Vermont, and Florida ▪ Dealership platform with parts and service capabilities drives recurring revenue from field population within Alta’s territories ▪ Significant investment made in scalable infrastructure ▪ Proven acquisition and integration track record ▪ Alta believes that it has a robust pipeline of accretive acquisitions Strategic Expansion

Current Locations/Territories

▪ Consolidate independent dealers ▪ Target those with highly-skilled technicians ▪ Generate operating leverage by acquiring geographically contiguous businesses that can be improved by Alta’s systems and processes ▪ Acquire new OEM relationships to offer additional brands and expand equipment product suite ▪ Expand selectively into complementary services to claim greater share of customer wallet M&A Objectives

CEO Overview

Q1 2020 Earnings Presentation | 11

Aftermarket Overview

CEO Overview

Product Support Solutions

SERVICE PARTS

• 43 full-service

locations across 10 states

• Approx. half of Alta’s

1,700+ employees are factory trained and certified Technicians

• 600 field service

vehicles

• 24/7/365 availability
• Guaranteed response

times

• Real time metrics

driven by Microsoft Business Intelligence

• Parts inventory of
• approx. $32 million
• Electronically

managed for on- hand demand and turns efficiency

• Genuine OEM captive

and aftermarket parts availability for full spectrum coverage

• Customer portal

We have capabilities to support all makes and models of construction and industrial equipment.

Q1 2020 Earnings Presentation | 12

• II. CEO Overview

III.CFO Overview

• IV. Appendices

I. Introduction

Q1 2020 Earnings Presentation | 13

CFO Overview

Q1 2020 Financial Summary

Q1 2020 Summary ▪ Organic revenue growth in both sales and product support departments across all geographic APR’s ▪ Total Revenues increased by 76.4%, or $78.2 million, from $102.3 million to $180.5 million; $15.6 million of

• rganic growth or 15.3%

▪ Gross Profit increased 71.3%, or $19.6 million; $2.2 million of organic growth or 8.0% ▪ LTM 3/31/2020 Adjusted EBITDA of $93.2 million1 Segment Performance ▪ Industrial segment: ▪ Year-over-year 11.6% organic growth in total revenue, mainly driven by sales and rental departments ▪ 38% and 61% of Revenue and Gross Profit generated from product support departments, respectively ▪ Michigan operations experienced the most adverse impact of COVID-19 ▪ Construction segment (continued growth and maturation): ▪ Year-over-year 18.6% organic growth in total revenue ▪ Year-over-year 28.7% organic growth in product support revenue ▪ 27% and 56% of Revenue and Gross Profit generated from product support departments, respectively ▪ Weakened rental fleet utilization in later Q1 amid stay-in-place orders 2020 M&A ▪ Flagler and Liftech Acquisitions ▪ Increased the LTM revenue of the enterprise ~36%; Shifts LTM revenue mix to 52 CE/48 IE from 44 CE/56 IE ▪ ~$92 million purchase price ▪ 2019 Revenue and Adjusted EBITDA of $219.4 million and $20.4 million, respectively

Financial Summary

1 As adjusted for pro forma acquisition activity (NITCO acquired May 2019; Flagler and Liftech acquired February 2020), and removing for

certain one-time and non-cash charges related to the acquisitions and initial public offering occurring February 2020

Q1 2020 Earnings Presentation | 14

CFO Overview

Q1 2020 Financial Performance

▪ Revenues increased 76.4%, or $78.2 million

▪ Organic growth of 15.3% or $15.6 million ▪ Growth across all departments ▪ Three acquisitions completed since 1/1/19: Northland Industrial Truck Co. (5/1/19); Liftech Equipment Company (2/14/20); and Flagler Construction Equipment (2/14/20)

▪ New and Used Equipment Sales increased 83.5% to $82.2 million; up from $44.8 million a year ago; +$7.0 million organically

▪ Organic increases in Illinois region (IE & CE)

▪ Parts sales increased 73.9%, or $12.2 million, to $28.7 million; +7.0% organically ▪ Service sales increased 75.6%, or $13.0 million, to $30.2 million; +15.5% organically ▪ Rent-to-rent revenue increased 48.2%, or $8.2 million to $25.2 million; +5.7% organically ▪ Gross Profit increased 71.3%, or $19.6 million with a 0.8% decline in gross margin on sales mix increasing greater in CE than IE segment

Quarterly Year over Year Summary Revenue / Gross Profit ($MM)

$102.3 $180.5

Q1 19 Q120 Revenue

$27.5 $47.1

Q1 19 Q1 20 Gross Profit

71.3% 26.9% 26.1% 76.4% ($MM) 2018 2019 3 Mos. Ended March 31, 2019 3 Mos. Ended March 31, 2020 Revenues: New and used equipment sales $181.7 $244.6 $44.8 $82.2 Parts sales 61.3 82.7 16.5 28.7 Service sales 61.6 92.7 17.2 30.2 Rental revenue 74.1 95.2 17.0 25.2 Rental equipment sales 34.3 42.2 6.8 14.2 Total Revenue $413.0 $557.4 $102.3 $180.5 % Growth 19.5% 35.0% 76.4% Gross Profit: New and used equipment gross profit $23.6 $29.2 $5.1 $9.8 Parts gross profit 20.7 28.6 5.6 9.1 Service gross profit 37.4 58.1 11.0 18.8 Rental gross profit 24.6 30.4 5.0 7.4 Rental equipment gross profit 3.8 5.8 0.8 2.0 Total Gross Profit $110.1 $152.1 $27.5 $47.1 % Growth 25.1% 38.1% 71.3% % Margin 26.7% 27.3% 26.9% 26.1%

Q1 2020 Earnings Presentation | 15

CFO Overview

Q1 2020 Adjusted EBITDA / Cash Flow

Adjusted EBITDA / Cash Flow ▪ Organic Q1 2020 Adjusted EBITDA down slightly due to lower rental utilization in Q1 and COVID-19 impacts on March results ▪ Pro Forma Adjusted EBITDA3 was down 6.9%, or $1.4MM versus Q1 a year ago. ▪ Reduction primarily related to Michigan- based operations ▪ LTM 2020 PF Adjusted EBITDA of $93.2MM when including all acquisitions on an LTM basis ▪ LTM Economic EBIT2 of $51.1MM, 54.8% of LTM Adjusted EBITDA when including all acquisitions

• n an LTM basis

Year over Year

1 See Appendix A and Appendix B for Non-GAAP measurement 2 Economic EBIT is a non-GAAP measure management defines as Adj. EBITDA less gains from rental equipment sales less net maintenance capital expenditure. 3 Acquisitions in May 2019 and February 2020; Adjusted PF Q1 2019 EBITDA accounts for 3 months of PF EBITDA of NITCO, Flagler, and Liftech to derive full Q1

period; 2020 Q1 PF Adj. EBITDA includes 45 days of Flagler/Liftech PF EBITDA; See Cash Flow Profile for LTM PF including all acquisitions on an LTM basis

• Adj. PF EBITDA1 / PF Economic EBIT ($MM)2

$42.5 $54.5 $68.6 $93.2 $20.4 $22.4 $42.0 $51.1 2017 2018 2019 PF LTM 3/31/20 Adjusted EBITDA Economic EBIT

35.9%

48.0% 41.1% 61.2% 54.8%

Conversion %

$20.2 $18.8

• Adj. PF Q1 2019
• ADJ. PF Q1 2020

(6.9)%

Q1 2020 Earnings Presentation | 16

Proforma ALTG Financial Profile

CFO Overview

[1] Non-GAAP measures Note:

1 PF+Acq incorporates the pro forma full period results of acquisitions as if they were completed at the beginning of the period presented; PF+Acq columns includes incremental NITCO operations by prorating audited

10/31/18-4/30/19 results, and Flagler and Liftech operations represent a proration of 2019 audited results where available

2 PF+Acq based upon management projection of restructured debt interest; assumes ABL and Term Loan debt with 4.25% and 10.00% interest, respectively, and FP payables at a 3% effective rate

($MM) 2017 2018 2019 2019 PF+Acq1 Q1 2019 PF+Acq1 Q1 2020 PF+Acq1 LTM 3/31/2020 PF+Acq1 Alta Revenue $345.5 $413.0 $557.4 $557.4 $102.3 $180.5 $635.6 Acquisitions Revenue

• 264.8

88.9 27.4 203.3 Total Revenue $345.5 $413.0 $557.4 $822.2 $191.2 $207.9 $838.9 % Growth 20% 35% 48% 9% 2% Alta Gross Profit $88.0 $110.1 $152.1 $152.1 $27.5 $47.1 $171.7 Acquisition Gross Profit

• 61.0

24.3 5.4 42.2 Total Gross Profit $88.0 $110.1 $152.1 $213.1 $51.8 $52.5 $213.9 % margin 25% 27% 27% 26% 27% 25% 25% Alta Operating Expenses 76.4 94.3 140.4 140.4 25.9 52.1 166.6 Acquisitions Operating Expenses

• 58.4

23.2 5.1 40.3 Operating Expenses $76.4 $94.3 $140.4 $198.8 $49.1 $57.2 $206.9 Alta Adjusted EBITDA 42.5 54.5 68.6 68.6 10.9 16.5 74.2 Acquisitions Adjusted EBITDA

• 26.0

9.3 2.3 19.0 Total Adjusted EBITDA [1] $42.5 $54.5 $68.6 $94.6 $20.2 $18.8 $93.2 % Margin 12% 13% 12% 12% 11% 9% 11% Alta Gross Profit on Rental Equipment Sales (3.4) (3.8) (5.8) (5.8) (0.8) (2.0) (7.0) Acquisitions Gross Profit on Rental Equipment Sales

• (3.8)

(1.3) (0.4) (2.9) Rental Net Maintenance CapEx (15.5) (25.7) (18.2) (18.2) (5.1) (5.9) (19.0) Non-Rental PP&E Maintenance CapEx (3.2) (2.6) (2.6) (2.6) (0.5) (1.1) (3.2) Acquisitions Rental Net Maintenance CapEx (10.5) (3.3) (1.2) (8.4) Acquisitions Non-Rental PP&E Maintenance CapEx (2.7) (1.2) (0.2) (1.7) Economic EBIT [1] $20.4 $22.4 $42.0 $51.0 $8.0 $8.0 $51.0 Tax (Expense) / Benefit

• 1.1

1.1 Interest Expense2 (6.2) (15.1) (20.5) (23.7) (5.9) (5.9) (23.7) FCF, before WC Charges and Growth Capex [1] $14.2 $7.3 $21.5 $27.3 $2.1 $3.2 $28.4

Q1 2020 Earnings Presentation | 17

Capital Structure / Credit Profile

CFO Overview

▪ At March 31, 2020, $36.4MM of cash on hand ▪ $133.4MM outstanding balance under $300MM ABL facility as of March 31, 2020, ▪ As of March 31, 2020 $114.0MM of ABL availability, net of letters of credit, on $247.5MM of collateral base ▪ Comfortable covenant position ▪ Excess availability under the ABL for purposes of the springing fixed charge covenant was $114.0MM ▪ Minimum excess availability is $30MM or 10% of the $300MM ABL facility

Credit Facility Leverage Metrics5 Balance Sheet Strength / Liquidity4

1 Excluding Floor plan payable – new equipment 2 ABL draw as of March 31, 2020; Excludes deferred financing costs of $1.6MM 3 Excludes original issue discount and deferred financing costs totaling $7.7MM, reflecting outstanding balance as of March 31, 2020 4 ABL facility size of $300MM. Borrowing base of $247MM and NBV of $398MM excluding floorplan assets, WIP, PP&E and long-term receivables. 5 As of March 31, 2020; leverage ratios presented exclude Floor plan payable on new equipment.

LTM PF Q1 2020 Total Leverage Ratio

Total Net Debt / Adj. EBITDA

3.1x Senior Leverage Ratio

Net Sr. Debt / Adj. EBITDA

1.4x

• 100,000.00

200,000.00 300,000.00 400,000.00 500,000.00

Book Value Borrowing Base ABL Draw, net of cash

~$150MM of Liquidity

Accounts Receivable Parts Inventory Fleet Inventory (New/Used/Rental)

$398MM $247MM $97MM 2.5x coverage *Excludes Equipment on Floorplan, WIP, PP&E, and long-term receivables

*

Capital Structure ($MM)

3/31/20 Cash $36.4 Debt:1 Lines of Credit (ABL)2 $133.4 Floor Plan – Used and Rental 31.5 Capital Lease Liabilities 2.0 2nd Lien Note3 155.0 Total Debt $321.9 Net Debt: Total Debt minus Cash $285.5 Shareholders’ Equity (Book) $128.8

Q1 2020 Earnings Presentation | 18

CFO Overview

Debt Maturity Runoff

Flexible Debt Structure

▪ Ample liquidity and long-dated maturities provide financial flexibility ▪ Facilities committed for 5 to 5.5 years ▪ Interest Rates: ABL L+175-225bps; Term L+800bps ▪ Light amortization (1.25% quarterly) of Term Note

Commentary

$0k $1,938k $1,938k $1,938k $7,750k $7,750k $7,750k $7,750k $116,938k $1,938k $114,313k $0k $50,000k $100,000k $150,000k $200,000k $250,000k $300,000k Feb-20 May-20 Aug-20 Nov-20 2021 2022 2023 2024 Feb-25 May-25 Aug-25

Debt Maturity

Drawn Undrawn ABL Term Note

Q1 2020 Earnings Presentation | 19

CFO Overview

Geographic and Segment Diversification

Sales Mix by Geography

Existing Alta Shareholders

IE Michigan 20% IE Illinois 6% IE Northeast 22% CE Florida 22% CE Illinois 7% CE Michigan 23%

Q1 2020 Earnings Presentation | 20

CFO Overview

COVID-19 Update: Year-to-date Service Hours

Technician Labor Hours as % of Base Daily Median

Existing Alta Shareholders

Source: Unaudited management data; information excludes Liftech technician labor measures

40% 50% 60% 70% 80% 90% 100% 110% 120%

Labor Productivity 81.3% Labor Productivity 84.7% Labor Productivity 83.5% Labor Productivity 85.2%

3/24: MI, IN & MA initiates Shelter In Place ordinance 3/18: Big Three Automakers Initiate Temporary Factory Closures across US 3/21: IL initiates Shelter in Place ordinance 4/1: FL initiates Shelter in Place ordinance

Prior to COVID-19, and the pandemic's impact on the Company's end markets beginning in Mid-March, the Company was tracking as expected in its labor utilization and billable hours. Beginning with the closure of automotive in mid-March, the Company experienced a decline in its technician labor hours before stabilizing in mid-April at approximately 70-75% of its pre-COVID levels. Due to the quick reaction of management, labor utilization of 85% was maintained throughout April.

Pre-COVID Post-COVID

Q1 2020 Earnings Presentation | 21

CFO Overview

COVID-19 Update: Illustrative Monthly Impact (Based on PF LTM EBITDA)

Mitigation based on Dealership Structure and Management’s Ability to React

Existing Alta Shareholders Revenue Category Illustrative Average Month1 COVID Shock Factor Un-Mitigated COVID Revenue Best Case Mitigation 100% Var. Costs

Equipment Sales $37.9 10% $34.1 $34.1 Parts 10.9 25% 8.2 8.2 Service 10.8 25% 8.1 8.1 Rental Revenue 10.3 15% 8.8 8.8 Total Revenue 69.9 59.2 59.2 Cash Costs Tangible Costs 41.7 36.4 36.4 Labor / Operational Costs 18.8 18.8 14.6 Occupancy Costs 1.6 1.6 1.6 Total Costs 62.1 56.8 52.6

• Adj. EBITDA[1]

EBITDA % 7.8 11.2% 2.4 4.1% 6.6 11.2%

Key takeaways: Management expects its temporary cost mitigation efforts to absorb approximately 50% of the monthly EBITDA loss in this downside scenario; Alta’s dealership model provides for ability to maneuver economic downturns via its highly variable cost structure; > 66% of cash costs; Impacts to date have been more acute in product support vs. sales and rental (i.e. continue to drive field population, specifically in CE segment)

100% Natural Variable Costs

• Apprx. 50% Labor.

> 95% Fixed Cost

[1] Non-GAAP Measure NOTE:

1 Based on PF LTM EBITDA of $93.2MM; actual Q1 2020 results differ due to seasonality of business

Q1 2020 Earnings Presentation | 22

Industry and Company Specific Factors in a Downturn

CFO Overview

Equipment Dealers and Financial Profile Through Economic Cycles

In a Downturn In a Recovery During 2008 – 2009 Recession 2010+

• Reduction in Revenue

and EBITDA

• New equipment

revenue suffers most

• Product support

revenue remains relatively “sticky”

• Rental: Industry de-

fleets

• Cash flow from de-

fleeting and product support is applied to debt reduction, reducing leverage in the short-term

• Revenue and EBITDA

pick up

• New Equipment

revenue recovers quickly

• Product support

revenue stabilizes as a % of total revenue

• Rental: Fleet is

replenished/re-aged

• Cash flow is invested

in re-fleeting and growth

• Revenue reduction of

~35%

• New Equipment sales

down ~50%

• Product support

revenue ~20% in MI, ~5% in New England

• GP% Margins held
• EBITDA % dropped

10.5% to 9.0%

• Rental fleet NBV

reduced ~25% as fleet ages without replenishment

• Alta takes advantage
• f M&A opportunities

coming out of recession to strategically diversify in both breadth, via geographic expansion, and depth, via expanding its product portfolio

• 2009 revenue

~$42MM, 2010 revenue ~$111MM

• New Equipment sales

recovered ~1.5-2X 2009 revenue

• Product support

revenue stabilizes to 2008 levels +

Industry

Industry

Q1 2020 Earnings Presentation | 23

• II. CEO Overview
• III. CFO Overview
• IV. Appendices

I. Introduction

Q1 2020 Earnings Presentation | 24

Adjusted EBITDA Reconciliation

Appendix A

[1] Non-GAAP Measure NOTES:

1 Prorated EBITDA of acquisitions made in same fiscal year period; for instance, Northland acquisition was completed

in May 2019, so 2019 YTD periods include the Pro Forma EBITDA as if Northland was acquired at the beginning of the fiscal year

2 Represents mark to market valuation for warrant consistent with GS redemption - non-cash adjustment 3 Expenses related to transactions (NITCO, Flagler, Liftech) and public company preparations 4 Costs associated with new branch openings in IL 5 Debt administration expenses associated with debt re-finance activities in May 2019 and February 2020 6 One-time loss associated to auction of CE used equipment in October 2019 7 Non-cash and non-recurring GAAP based adjustments 8 Represents expenses of debt extinguishments related to re-finance activities in February 2020 9 Reflects equity-based compensation expenses related to re-finance activities in February 2020 10 Other non-recurring expenses primarily related to severance payments 11 Represents interest expense associated with showroom-ready new floorplan equipment interest included in total interest expense above

($MM) 2017 2018 2019 3 Mos. Ended March 31, 2019 3 Mos. Ended March 31, 2020 LTM 3/31/20 GAAP Net Income $5.9 $1.5 ($35.4) ($2.6) ($17.0) ($49.8) Depreciation and Amortization 31.5 37.1 50.1 9.1 13.9 54.9 Interest Expense 6.2 15.1 20.5 4.5 5.9 21.9 Income Tax Expense/(Benefit)

• (1.1)

(1.1) EBITDA [1] $43.6 $53.7 $35.2 $11.0 $1.7 $25.9 Adjustments: Pro Forma EBITDA - Acquisitions 1

• 5.6

4.2 2.3 3.7 Change in Fair Value of Warrants2

• 0.4

27.9

• 27.9

Transaction Fees3

• 0.1

4.3 0.1 0.8 5.0 Non-recurring Branch Start Up Costs4

• 0.3
• Loan Administration Fees5
• 0.3

0.4 0.1 0.1 0.4 Non-Recurring Loss on Auction Sale6

• 1.1
• 1.1

Non-Cash GAAP based Adjustments7

• 1.2

1.7 0.3 0.2 1.6 Loss on Debt Extinguishment8

• 7.6

7.6 Equity-linked Incentives9

• 6.6

6.6 Other Non-Recurring expenses10

• 0.2
• 0.2

0.4 New Floorplan Interest Expense11 (1.1) (1.5) (2.2) (0.6) (0.7) (2.3) Adjusted EBITDA [1] $42.5 $54.5 $74.2 $15.1 $18.8 $77.9

Q1 2020 Earnings Presentation | 25

Free Cash Flow Reconciliation

Appendix B

[1] Non-GAAP Measure NOTE: Adjusted EBITDA includes full-period results of acquisitions, using proration of audited results where available.

1 Accounts receivable, WIP, Parts, Accounts Payable, Accruals; removing impact of acquired working capital

($MM) 2017 2018 2019 3 Mos. Ended March 31, 2019 3 Mos. Ended March 31, 2020 LTM 3/31/20 GAAP Net Income $5.9 $1.5 ($35.4) ($2.6) ($17.0) ($49.8) Depreciation and Amortization 31.5 37.1 50.1 9.1 13.9 54.9 Interest Expense 6.2 15.1 20.5 4.5 5.9 21.9 Income Tax Expense/(Benefit)

• (1.1)

(1.1) EBITDA [1] $43.6 $53.7 $35.2 $11.0 $1.7 $25.9 Adjustments, net (1.1) 0.8 39.0 4.1 17.1 52.0 Adjusted EBITDA [1] $42.5 $54.5 $74.2 $15.1 $18.8 $77.9 Rental Equipment Gain on Sale (3.4) ($3.8) ($5.8) ($0.8) ($2.0) (7.0) Rental Net Maintenance Capex (15.5) (25.7) (18.2) (5.1) (5.9) (19.0) PP&E Net Capex (3.2) (2.6) (2.6) (0.5) (1.1) (3.2) Economic EBIT [1] $20.4 $22.4 $47.6 $8.7 $9.8 $48.7 Tax (Expense)/Benefit

• 1.1

1.1 FCF Before Growth Related Investments [1] $20.4 $22.4 $47.6 $8.7 $10.9 $49.8 Working Capital Investment1 (2.9) (24.2) (12.5) (9.8) (4.3) (7.0) Rental Discretionary Growth Capex (13.5) (31.1) (32.7) (6.6) (12.1) (38.2) Acquisition of business, net of cash (7.5) (4.7) (65.6)

• (91.7)

(157.3) FCF After Growth Related Investments [1] ($3.5) ($37.6) ($63.2) ($7.7) ($97.2) ($152.7)

Q1 2020 Earnings Presentation | 26

Free Cash Flow Reconciliation – Capital Expenditure Detail

Appendix B (cont.)

NOTE:

1 Including transfers from new/used inventories; excluding GPO activities. Replacement cost includes inflationary estimate based on average disposal age and a 2% annual inflation rate 2 Management estimate

($MM) 2017 2018 2019 3 Mos. Ended March 31, 2019 3 Mos. Ended March 31, 2020 LTM 3/31/20 Replacement of Sold Rental Equipment, at Original Cost1 $40.1 $57.3 $56.9 $11.1 $19.0 $64.8 Capitalized Costs to Maintain Fleet (1.5% of Beg. OEC)2 2.5 2.7 3.5 0.8 1.1 3.8 (Less) Rental Fleet Disposal Proceeds (27.1) (34.3) (42.2) (6.8) (14.2) (49.6) Rental Net Maintenance Capex $15.5 $25.7 $18.2 $5.1 $5.9 $19.0 PP&E Capex 3.3 2.9 2.7 0.5 1.2 3.4 (Less) Proceeds from Sale of PP&E (0.1) (0.3) (0.1)

• (0.1)

(0.2) Total Net Maintenance Capex $18.7 $28.3 $20.8 $5.6 $7.0 $22.2 Rental Discretionary Growth Capex1 13.5 31.1 32.7 6.6 12.1 38.2 Total Net Capex $32.2 $59.4 $53.5 $12.2 $19.1 $60.4