Alta Equipment Group Inc (ALTG) 2023 Q2 法說會逐字稿

Good afternoon, and thank you for attending the Alta Equipment Group second-quarter 2023 earnings conference call. My name is Matt, and I'll 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.

下午好，感謝您參加阿爾塔設備集團 2023 年第二季度財報電話會議。我叫馬特，我將擔任今天電話會議的主持人。我現在將把電話轉給 Alta Equipment Group SEC 報告和技術會計總監 Jason Dammeyer。

Thank you, Matt. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alta's second-quarter 2023 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.

謝謝你，馬特。大家下午好，感謝您今天加入我們。今天下午發布了詳細介紹 Alta 2023 年第二季度財務業績的新聞稿，並發佈在我們的網站上，同時還發布了旨在幫助您了解公司業績的演示文稿。

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 2023 financial result. We will begin with some prepared remarks before we open the call for your questions.

今天與我通話的是我們的董事長兼首席執行官瑞安·格林納瓦特 (Ryan Greenawalt)；以及我們的首席財務官托尼·科魯奇。在今天的電話會議中，管理層將首先回顧我們 2023 年第二季度的財務業績。在開始詢問您的問題之前，我們將首先發表一些準備好的評論。

Please proceed to slide 2.

請繼續看幻燈片 2。

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 nonhistorical 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.

在我們開始之前，我想提醒大家，本次電話會議可能包含某些前瞻性陳述，包括有關未來財務業績、我們的業務戰略、財務前景、公司成就的陳述以及所述的其他非歷史陳述在我們的新聞稿中。這些前瞻性陳述受到已知和未知的風險、不確定性和假設的影響，包括與 Alta 的增長、市場機會以及總體經濟和商業狀況相關的風險、不確定性和假設。

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

我們的這些前瞻性陳述主要基於我們當前對未來事件和財務趨勢的預期和預測，我們認為這些事件和財務趨勢可能會影響我們的業務、財務狀況和經營業績。儘管我們認為這些期望是合理的，但我們沒有義務修改任何聲明以反映本次電話會議後發生的變化。

Descriptions of these and other risks that could cause actual results to differ materially from the 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.

我們向美國證券交易委員會提交的報告（包括今天發布的新聞稿）中討論了可能導致實際結果與前瞻性陳述存在重大差異的這些風險和其他風險的描述。在這次電話會議中，我們可能會介紹公認會計準則和非公認會計準則的財務指標。今天的新聞稿中包含了 GAAP 與非 GAAP 衡量標準的調節表，您可以在我們的網站 Investors.altaequipment.com 上找到該調節表。我現在將把電話轉給瑞安。

Thank you, Jason. Good afternoon, everyone, and thank you for joining us today. First, I will discuss our second-quarter financial highlights and current business conditions and will then provide an update on our growth strategy and current M&A pipeline. But before I begin, I want to recognize our employees, because without their hard work and dedication, our continued strong performance would not be possible.

謝謝你，傑森。大家下午好，感謝您今天加入我們。首先，我將討論我們第二季度的財務亮點和當前的業務狀況，然後提供有關我們的增長戰略和當前併購渠道的最新信息。但在開始之前，我想對我們的員工表示認可，因為沒有他們的辛勤工作和奉獻精神，我們就不可能持續保持強勁的業績。

I'll begin with a quick review of our second-quarter financial highlights. Total revenue increased 15.2% to $468.4 million, a record for our business. The increase was attributable to construction revenue of $281.5 million and material handling revenue of $169.1 million. We also benefited from our newest segment master distribution, which contributed $21.4 million in revenue. Our E-Mobility business is gaining traction, generating $3.1 million in revenue for the quarter, which represents our first significant sales of Nikola's TRE BEV tractors, and we expect additional orders throughout the balance of this year. Lastly, we achieved organic revenue growth of 11.2% year to date as well as the significant contributions from our acquisitions. As a result, adjusted EBITDA grew 20.5% to $49.9 million compared to a year ago.

我將首先快速回顧一下我們第二季度的財務亮點。總收入增長 15.2%，達到 4.684 億美元，創下了我們的業務記錄。這一增長歸因於建築收入 2.815 億美元和材料處理收入 1.691 億美元。我們還受益於最新的細分主發行版，該發行版貢獻了 2140 萬美元的收入。我們的電動汽車業務正在獲得牽引力，本季度收入為 310 萬美元，這是我們首次大幅銷售 Nikola 的 TRE BEV 拖拉機，我們預計今年餘下的時間裡還會有更多訂單。最後，我們今年迄今實現了 11.2% 的有機收入增長，並且收購也做出了重大貢獻。因此，調整後 EBITDA 較上年同期增長 20.5%，達到 4,990 萬美元。

Before I discuss business conditions and forward trends, let me provide a few brief comments on our business model and segment trends. As a reminder, our model is versatile and resilient, and we are unique in the breadth of our product offerings, the scale of our addressable market, and the defensiveness of our market position. Our focus is on driving and sustaining long-term equipment field population and driving aftermarket support penetration to an increasingly diversified customer base. At the end of the second quarter, we had approximately 1,300 factory-trained and certified revenue-producing technicians.

在討論業務狀況和未來趨勢之前，讓我對我們的業務模式和細分趨勢進行一些簡短的評論。提醒一下，我們的模式是多功能且有彈性的，我們在產品供應的廣度、目標市場的規模以及市場地位的防禦性方面是獨一無二的。我們的重點是推動和維持長期的設備現場人口，並推動售後支持滲透到日益多元化的客戶群。截至第二季度末，我們擁有約 1,300 名經過工廠培訓和認證的創收技術人員。

Trends in our material handling segment remained positive throughout all our major end user markets, including manufacturing, biotech, government, food and beverage, automotive manufacturing, and others. Our exclusive Hyster-Yale territory, which now includes Eastern Canada, covers the densest population region in North America and provides access to a diverse group of industries and end markets for our products. We continue to benefit from the sales synergies with the PeakLogix business and have the capabilities in-house to solve our customers' most complex material handling needs.

在我們所有主要最終用戶市場中，包括製造業、生物技術、政府、食品和飲料、汽車製造等，我們的物料搬運領域的趨勢仍然積極。我們獨有的海斯特-耶魯地區現在包括加拿大東部，覆蓋了北美人口最密集的地區，為我們的產品提供了進入多元化行業和終端市場的機會。我們繼續受益於與 PeakLogix 業務的銷售協同效應，並擁有內部能力來解決客戶最複雜的物料搬運需求。

One important aspect of our strategy in the material handling segment is to bring our full suite of products and services from the most mature markets into our new regions. This includes integrating in-house capabilities such as industrial tire distribution, industrial battery distribution and maintenance, engineered products, and safety and operator training to name a few. We also assemble a portfolio of allied and specialty equipment lines that are appropriate for the specific end markets within each region.

我們在物料搬運領域戰略的一個重要方面是將我們的全套產品和服務從最成熟的市場引入我們的新地區。這包括整合內部能力，例如工業輪胎分銷、工業電池分銷和維護、工程產品以及安全和操作員培訓等。我們還組裝了適合每個地區特定終端市場的聯合和特種設備系列產品組合。

Our construction equipment segment continues to benefit from both high non-residential demand as well as infrastructure and other federal and state governmental legislation. In all our operating regions -- in the northeast, specifically, we are seeing positive impacts due to onshoring projects like chip and EV-related battery and other facilities.

我們的建築設備部門繼續受益於高非住宅需求以及基礎設施和其他聯邦和州政府立法。在我們所有的運營地區——特別是東北地區，我們看到了芯片和電動汽車相關電池及其他設施等境內項目帶來的積極影響。

Our Florida operations remain particularly strong with phosphate mining as a significant business, and there we are heavily embedded with the largest producer in the state. Projects related to DOT spending and wetlands restoration are also strong markets for us and will continue for years to come. As a result, demand for our heavy Volvo earthmoving equipment, both new and used, specifically, articulated hauler trucks and excavators, is particularly high. Both of these equipment categories have seen double-digit growth in unit volume in the Florida market year over year.

我們在佛羅里達州的業務仍然特別強勁，磷酸鹽開採是一項重要業務，我們與該州最大的生產商緊密合作。與交通部支出和濕地恢復相關的項目對我們來說也是強勁的市場，並將在未來幾年持續下去。因此，對我們的重型沃爾沃土方設備（無論是新的還是二手的），特別是鉸接式卡車和挖掘機的需求特別高。這兩個設備類別在佛羅里達市場的單位銷量同比均出現兩位數增長。

We remain excited about growth opportunities for the Ecoverse business, which reports within our newly created master distribution segment. The recycling equipment market will continue to experience significant growth driven by several factors, including increased focus on sustainable waste management practices, regulatory mandates, and resource scarcity. Advancements in recycling technology have significantly enhanced the efficiency and effectiveness of reclamation efforts. State-of-the-art sorting and separation technologies facilitate the reclamation of a broader array of materials intensifying the need for specialized recycling equipment. While still in its infancy, forecasts indicate this could be a multibillion-dollar industry in the future.

我們對 Ecoverse 業務的增長機會仍然感到興奮，該業務屬於我們新創建的主分銷部門。在多種因素的推動下，回收設備市場將繼續經歷顯著增長，包括對可持續廢物管理實踐、監管要求和資源稀缺的日益關注。回收技術的進步顯著提高了回收工作的效率和效果。最先進的分類和分離技術促進了更廣泛材料的回收，從而增加了對專業回收設備的需求。儘管仍處於起步階段，但預測表明該行業未來可能會成為價值數十億美元的行業。

Lastly, our e-mobility business is beginning to gain some traction, as noted by the Nikola orders and revenue contribution during the second quarter. The Illinois-based customer purchased a fleet of battery-electric semi-trucks and the network of chargers to support the fleet. The customer is a food producer and invested in the fleet to distribute to their customers using zero tailpipe emissions vehicles. We are already hearing enthusiastic demand for the hydrogen fuel cell-powered Nikola semi, which will be available late this year.

最後，正如第二季度尼古拉訂單和收入貢獻所表明的那樣，我們的電動汽車業務開始獲得一些吸引力。這家位於伊利諾伊州的客戶購買了一支電池電動半掛卡車車隊和充電器網絡來支持該車隊。客戶是一家食品生產商，投資了車隊，使用零尾氣排放車輛向客戶配送。我們已經聽到了對氫燃料電池動力 Nikola semi 的熱烈需求，該車將於今年晚些時候上市。

Importantly, our exclusive Nikola territory mirrors our footprint within the US, allowing us to market the product to Alta's existing customers throughout the country. We are excited about the prospect of putting our nearly 40 years of experience, helping customers convert their fleets away from fossil fuels and internal combustion engines to work in the vast market for heavy-duty and long-haul commercial vehicles.

重要的是，我們獨家的 Nikola 領土反映了我們在美國的足跡，使我們能夠向 Alta 全國各地的現有客戶推銷產品。我們很高興能夠利用我們近 40 年的經驗，幫助客戶將他們的車隊從化石燃料和內燃機轉向重型和長途商用車的廣闊市場。

Now let me provide a few brief comments on current and forward-looking business conditions. One of the most important indicators is feedback from customers and their sentiment is strong for the balance of this year and into next year. We're also pleased that supply chain constraints have eased, allowing inventory levels to return to more normalized levels resulting in higher new end-use equipment sales, which will yield high margin parts and service business over time.

現在讓我對當前和未來的商業狀況進行一些簡短的評論。最重要的指標之一是客戶的反饋，他們對今年和明年的看法很強烈。我們還很高興供應鏈限制有所緩解，使庫存水平恢復到更正常的水平，從而導致新的最終用途設備銷量更高，隨著時間的推移，這將產生高利潤的零部件和服務業務。

Federal initiatives will also extend the cycle with approximately $1 trillion estimated over the next decade. Many state DOT budgets where we operate are forecasting significant increases in fiscal year 2024. For example, Florida recently released its fiscal 2024 Moving Forward (sic - Moving Florida Forward) projects to address more than 20 congestion-related infrastructure projects across the state, with total spending of over $7 billion over the next four years.

聯邦舉措還將延長這一周期，預計未來十年將投入約 1 萬億美元。我們運營的許多州交通部預算都預測2024 財年將大幅增長。例如，佛羅里達州最近發布了其2024 財年前進（原文如此- 推動佛羅里達前進）項目，以解決全州20 多個與擁堵相關的基礎設施項目，其中未來四年的總支出將超過 70 億美元。

In terms of our growth strategy, the pipeline remains strong for accretive acquisitions. We have added $446 million in total revenue and $53.3 million in adjusted EBITDA, since we went public in 2020. We have expanded our dealership network as well as entering into new end-user markets, and we'll continue to follow this strategic path. We have a unique platform to grow and consolidate in adjacent markets with significant barriers to entry in long-term growth prospects. We have a disciplined approach to M&A and fertile prospecting conditions, and we have a proven and repeatable execution and integration process led by a seasoned team of industry veterans. And as we have demonstrated, we are executing these transactions at attractive multiples.

就我們的增長戰略而言，增值收購的渠道仍然強勁。自 2020 年上市以來，我們的總收入增加了 4.46 億美元，調整後 EBITDA 增加了 5330 萬美元。我們擴大了經銷商網絡，並進入了新的最終用戶市場，我們將繼續遵循這一戰略路徑。我們擁有一個獨特的平台，可以在鄰近市場中發展和鞏固，但長期增長前景存在重大進入壁壘。我們擁有嚴格的併購方法和肥沃的勘探條件，並且擁有由經驗豐富的行業資深團隊領導的經過驗證且可重複的執行和整合流程。正如我們所展示的，我們正在以有吸引力的倍數執行這些交易。

Lastly, I'd like to again touch on Alta's corporate culture. As a company, we strive every day to foster a culture of empowerment, accountability, and opportunity. And we rally around the shared purpose, delivering trust that makes a difference. I want to again thank our employees for delivering trust to our customers, our business partners, and to our valued shareholders. Our shared purpose is the foundation of our commitment to these key areas. Our commitment to environmental sustainability, including a focused strategy to drive customer adoption and commercial viability of various electromobility solutions; the safety of our employees, and technicians; and the dedicated and inclusive culture that we continue to develop with each day.

最後，我想再次談談阿爾塔的企業文化。作為一家公司，我們每天都在努力培育一種賦權、問責和機會的文化。我們圍繞共同的目標團結起來，傳遞能夠帶來改變的信任。我要再次感謝我們的員工為我們的客戶、業務合作夥伴和尊貴的股東帶來的信任。我們的共同目標是我們對這些關鍵領域的承諾的基礎。我們對環境可持續性的承諾，包括推動客戶採用各種電動汽車解決方案和商業可行性的重點戰略；我們員工和技術人員的安全；以及我們每天不斷發展的敬業和包容的文化。

In closing, I'd like to thank the Alta team for all your hard work in delivering another solid quarter. I'll now turn the call over to Tony, our CFO.

最後，我要感謝 Alta 團隊為實現又一個穩定的季度所做的辛勤工作。我現在將把電話轉給我們的首席財務官托尼。

Thanks, Ryan. Good evening, everyone, and thank you for your interest in Alta Equipment Group and our second-quarter 2023 financial results.

謝謝，瑞安。大家晚上好，感謝您對 Alta Equipment Group 和我們 2023 年第二季度財務業績的關注。

Before I begin, I want to acknowledge two first-half acquisitions and welcome to the Alta family, our new team members from M&G Material Handling and Battery Shop of New England. The senior leadership team is committed to building upon the legacy of each of those respective companies, and we look forward to earning your trust.

在開始之前，我要感謝上半年的兩項收購，並歡迎加入 Alta 大家庭，他們是來自新英格蘭 M&G Material Handling 和 Battery Shop 的新團隊成員。高級領導團隊致力於繼承各自公司的傳統，我們期待贏得您的信任。

My remarks today will focus on four key areas. First, I'll be presenting our second-quarter results which we are pleased with, as our business benefited from increased equipment availability and continued organic growth in our product support business. Second, we have previously referenced with investors, our rent-to-sell approach to the market in our construction segment. And I thought it would be helpful to flesh that model out for investors in a more detailed way. To that end, I'll be presenting a unit level case study of the rent-to-sell model, as we use this approach to help drive equipment field population and future product support revenues.

我今天的發言將集中於四個關鍵領域。首先，我將介紹我們對第二季度的業績感到滿意，因為我們的業務受益於設備可用性的增加和產品支持業務的持續有機增長。其次，我們之前曾向投資者提到過我們在建築領域的市場租賃方式。我認為以更詳細的方式為投資者充實這個模型將會有所幫助。為此，我將介紹先租後售模式的單位級案例研究，因為我們使用這種方法來幫助推動設備現場數量和未來產品支持收入。

Third, I'll provide an update on the balance sheet as of June 30. As part of that discussion, I'll be referencing the positive enhancements we made to our credit facilities in Q2. Lastly, I'll touch briefly on the secondary common stock offering that closed in late July and provide our perspective on that deal.

第三，我將提供截至 6 月 30 日的資產負債表的最新情況。作為討論的一部分，我將提及我們在第二季度對信貸安排所做的積極改進。最後，我將簡要介紹一下 7 月底結束的普通股二次發行，並提供我們對該交易的看法。

Before I get to my talking points, it should be noted that I'll be referencing slides from our investor presentation throughout the call today and 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 slide 10 to 13 in the earnings deck, second-quarter performance.

在開始我的談話要點之前，應該指出的是，我將在今天的電話會議中引用我們投資者演示文稿中的幻燈片，並鼓勵今天電話會議上的每個人查看我們的演示文稿和10-Q （可在我們的投資者關係中找到）網站 altg.com。話雖如此，對於我準備好的演講的第一部分，以及收益報告幻燈片 10 至 13 中介紹的第二季度業績。

For the quarter, the company recorded $468 million of revenue, which is up $61 million versus Q2 of last year and $47 million from last quarter. Embedded in the $468 million of revenue for the quarter is a $29 million organic increase over Q2 2022, making for a comparatively strong quarter. Specifically, equipment sales increased $35 million for the quarter to $288 million, which, as discussed last quarter, will ultimately bode well for future incremental product support revenue. To that end, year to date, we've now placed approximately $90 million more equipment into field population when compared to the first half of 2022.

該公司本季度收入為 4.68 億美元，比去年第二季度增加 6100 萬美元，比上一季度增加 4700 萬美元。該季度 4.68 億美元的收入中包含比 2022 年第二季度有機增長 2900 萬美元的內容，這是一個相對強勁的季度。具體而言，本季度設備銷售額增加了 3500 萬美元，達到 2.88 億美元，正如上季度所討論的，這最終將是未來增量產品支持收入的好兆頭。為此，今年迄今為止，與 2022 年上半年相比，我們已在現場人員中投入了約 9000 萬美元的設備。

Moving on to our product support business lines. In spite of the quarterly comp hurdles getting more difficult, we continue to realize organic growth in our parts and service department, with that figure increasing at 12% in material handling segment and 10% in the construction segment year over year. To close out the revenue lines, as it relates to our rental business, we saw the natural and expected seasonal increase versus Q1 is rental revenues at $50 million for the quarter, up $6.5 million from last quarter. Additionally, rental revenues increased 6% organically on a consolidated basis, primarily the result of a favorable rate environment for our equipment.

繼續我們的產品支持業務線。儘管季度薪酬障礙變得更加困難，但我們的零部件和服務部門繼續實現有機增長，物料搬運部門的數字同比增長 12%，建築部門的數字同比增長 10%。為了結束與我們的租賃業務相關的收入線，我們看到與第一季度相比自然和預期的季節性增長是本季度的租賃收入為 5000 萬美元，比上季度增加了 650 萬美元。此外，租金收入在合併基礎上有機增長了 6%，這主要是由於我們的設備享有有利的價格環境。

From an EBITDA perspective, we realized $49.9 million in adjusted EBITDA for the quarter, which is up $8.5 million from the adjusted level of the second quarter 2022. On a trailing 12 basis, we achieved $177 million of adjusted EBITDA, which converted into $129 million of economic EBIT, our version of unlevered free cash flow before growth CapEx. Lastly, on EBITDA, and as mentioned in today's press release, given Q2's performance, we are reiterating guidance of $180 million to $188 million of adjusted EBITDA for fiscal year 2023.

從EBITDA 角度來看，我們本季度調整後EBITDA 實現了4990 萬美元，比2022 年第二季度調整後水平增加了850 萬美元。在過去12 年的基礎上，我們實現了1.77 億美元調整後EBITDA ，折算後為1.29 億美元經濟息稅前利潤，我們的增長資本支出之前的無槓桿自由現金流的版本。最後，關於 EBITDA，正如今天的新聞稿中提到的，鑑於第二季度的表現，我們重申 2023 財年調整後 EBITDA 為 1.8 億至 1.88 億美元的指導。

Two final metrics on the quarter. As depicted on slide 13 of the investor deck and a pro forma basis, the business is generating just above $75 million in annualized levered free cash flow to common equity; and as presented on slide 15, as noted in the Q1 earnings call, we continue to realize financial operating leverage on a cash basis in the quarter. Each incremental dollar of cash gross profits generated in 2023 year to date yielded $0.30 of adjusted operating income versus the $0.21 realized in the first half of 2022.

本季度的兩個最終指標。正如投資者幻燈片 13 和預計基礎上所示，該業務為普通股產生的年化槓桿自由現金流略高於 7500 萬美元；正如幻燈片 15 所示，正如第一季度財報電話會議中所指出的，我們在本季度繼續以現金為基礎實現財務運營槓桿。 2023 年迄今為止，每增加 1 美元的現金毛利潤，可產生 0.30 美元的調整後營業收入，而 2022 年上半年實現的調整後營業收入為 0.21 美元。

Now for the second portion of my prepared remarks, as I mentioned at the open, I wanted to present a unit-level economics view of what we refer to as our rent-to-sell approach to the equipment market in our construction segment. Before I present the model, I'd remind investors that Alta's focus is on building best-in-class equipment dealerships by driving market share for our represented products and increasing customer-owned equipment field population.

現在，正如我在公開場合提到的，我準備好的發言的第二部分，我想提出一個單位層面的經濟學觀點，即我們所說的建築領域設備市場的租售方法。在介紹該模型之前，我想提醒投資者，Alta 的重點是通過提高我們代表產品的市場份額和增加客戶擁有的設備現場數量來建立一流的設備經銷商。

As highlighted in our materials last quarter, when we are able to put more equipment in the field, we know with a strong degree of certainty, given the exclusive elements of the dealership model, that the incremental field population will beget higher-margin customer support revenues in the future. Additionally, and importantly, there is demand, and in some cases, a strong preference amongst our customers for lightly used equipment.

正如上季度我們的材料中所強調的那樣，當我們能夠在現場投入更多設備時，我們非常確定地知道，考慮到經銷商模式的獨特元素，增量的現場人口將帶來更高利潤的客戶支持未來的收入。此外，重要的是，我們的客戶對輕度使用的設備有需求，並且在某些情況下有強烈的偏好。

In fact, by various industry metrics, in certain heavy equipment product categories, approximately, 70% of customer purchases are sourced from dealer-owned rental fleets. Given this industry dynamic in our field population-based business model, the rent-to-sell approach in the market allows for us to create different price points for the lightly used equipment in our rental fleet, which ultimately can fulfill customer demand.

事實上，根據各種行業指標，在某些重型設備產品類別中，大約 70% 的客戶採購來自經銷商擁有的租賃車隊。鑑於我們以人口為基礎的商業模式中的行業動態，市場上的先租後賣方式使我們能夠為租賃車隊中很少使用的設備創造不同的價格點，最終可以滿足客戶的需求。

From an economics perspective, I would point investors to slide 14, and to summarize the example depicted here, you can see that we purchased this unit new for $400,000 on January 1, 2021, rented the piece for $14,000 a month for 11 of the 18 months that was in our fleet. We then sold the unit on September 30, 2022, for $340,000. As you can see in the bottom right of the slide, in terms of the washout economics on the unit, in total, over the 18-month period, the unit earned a 17% return on invested capital. And this is prior to any aftermarket part and service opportunity on the unit post sale, which we know to be accretive.

從經濟學的角度來看，我會向投資者指出幻燈片14，並總結此處描述的示例，您可以看到我們於2021 年1 月1 日以400,000 美元的價格購買了這個新單元，並以每月14,000 美元的價格租用了該單元，共18 個單元中的11 個單元。我們機隊中的幾個月。然後我們於 2022 年 9 月 30 日以 34 萬美元的價格出售了該單位。正如您在幻燈片右下角所看到的，就該單位的沖刷經濟學而言，在 18 個月期間，該單位的投資資本回報率為 17%。這是在單位售後的任何售後零件和服務機會之前，我們知道這會增值。

Now, this is simply one example of many variations of how the rent-to-sell model can play out as iterations can differ by product type, holding period, OEM, geography, et cetera. But overall, this flexible sales model led to an incremental $60 million of equipment sold year to date in the construction segment. The dynamics of the rent-to-sell model is also why we focus on economic EBIT, which removes the gain on sale and depreciation elements of the calculation.

現在，這只是先租後售模式如何發揮多種變化的一個例子，因為迭代可能因產品類型、持有期限、OEM、地理位置等而異。但總體而言，這種靈活的銷售模式今年迄今使建築領域的設備銷量增加了 6000 萬美元。從租到售模型的動態性也是我們關注經濟息稅前利潤的原因，它消除了計算中的銷售收益和折舊因素。

In summary, this example plays itself out day to day and quarter to quarter in our business, and again, allows us to great lightly used equipment at various ages and price points to meet customer demand and ultimately, carve out our fair share of equipment field population versus the competition.

總之，這個例子在我們的業務中日復一日、季復一季地發揮著作用，並且再次使我們能夠在不同年齡和價位的輕度使用設備上滿足客戶需求，並最終在設備領域佔據公平的份額人口與競爭。

Now for the third portion of my prepared remarks, I'd like to highlight some of the important elements of the upsizing of the credit facilities, which closed at the end of Q2, and do a quick checking on the balance sheet as of 6/30. First, the upsizing. On June 28, the company amended its credit agreements that had four primary aspects to it. First, we exercised $55 million worth on an expansion option on our ABL facility, taking that facility to $485 million from the previous $430 million. Second, the amendment provided for an additional $65 million expansion option on the ABL facility to $550 million, should we see the need to pursue additional capacity in the future.

現在，在我準備好的講話的第三部分中，我想強調擴大信貸額度的一些重要因素，該信貸額度於第二季度末結束，並對截至 6 月的資產負債表進行了快速檢查。 30 .第一，規模擴大。 6 月 28 日，該公司修改了信貸協議，其中有四個主要方面。首先，我們行使了價值 5500 萬美元的 ABL 設施擴展選擇權，使該設施從之前的 4.3 億美元增至 4.85 億美元。其次，如果我們認為未來需要尋求額外的產能，修正案還提供了額外 6500 萬美元的 ABL 設施擴建選項，使其達到 5.5 億美元。

Third, we are able to increase the floor plan facility by $10 million, which funds new equipment from OEMs that don't have captive finance partners. This portion of the amendment include an incremental $20 million expansion option to fund future growth. Fourth, the amendment provided for an increased amount of volume captive floor plan financing allowed for on the balance sheet, which has become increasingly more important as supply chains have normalized, as it's imperative that we have enough floor plan financing in place, which funds readily available equipment for our customers.

第三，我們能夠將平面圖融資增加 1000 萬美元，為沒有專屬財務合作夥伴的 OEM 提供新設備資金。該修正案的這一部分包括增量 2000 萬美元的擴張選項，為未來的增長提供資金。第四，修正案規定增加資產負債表上允許的自有平面圖融資數量，隨著供應鏈的正常化，這一點變得越來越重要，因為我們必須有足夠的平面圖融資，並且可以隨時提供資金為我們的客戶提供可用的設備。

From our perspective, this amendment represents a positive outcome for the company and for the shareholders, as it allows the company to access previous suppressed availability on the line of credit as our borrowing base collateral has grown in concert with the business as a whole. We view this expansion as a vote of confidence from our lending partners on our business plan, our team, and our end markets.

從我們的角度來看，這一修正案對公司和股東來說都是一個積極的結果，因為它允許公司獲得先前受抑制的信貸額度，因為我們的借款基礎抵押品與整個業務同步增長。我們將此次擴張視為貸款合作夥伴對我們的業務計劃、我們的團隊和我們的終端市場的信任票。

Onto the balance sheet. Given the upsizing, we ended the quarter with approximately $200 million in availability on our revolving line of credit with only $15 million suppressed. Total leverage came in at roughly 3.8 times 2023 adjusted EBITDA, as used inventory and rental fleet levels have increased given seasonality and then normalization of the supply [chain] that I mentioned -- to supply of equipment that I previously mentioned.

進入資產負債表。鑑於規模擴大，本季度結束時，我們的循環信貸額度可用金額約為 2 億美元，僅減少了 1,500 萬美元。總槓桿約為 2023 年調整後 EBITDA 的 3.8 倍，因為考慮到季節性因素以及我提到的供應鏈（我之前提到的設備供應）的正常化，二手庫存和租賃車隊水平有所增加。

Finally, for the last portion of my prepared remarks, I'd like to give a few thoughts on the secondary offering that was closed in July for one of our large shareholders. First, to reset for investors, B. Riley, who provided the platform and supported our vision of becoming a public company, has been a large shareholder as a function of our IPO in early 2020. Last month, we were happy to support a secondary common stock offering of approximately third B. Riley's holdings in Alta. We view this transaction is beneficial for shareholders as the offering was dispersed to a diverse set of primarily new investors, and ultimately, increased ALTG's float and liquidity in the stock.

最後，在我準備好的發言的最後一部分，我想談談我們一位大股東於 7 月份完成的二次發行的一些想法。首先，為了讓投資者重新認識，B. Riley 為我們提供了平台並支持我們成為上市公司的願景，在我們2020 年初的IPO 中，B. Riley 一直是我們的大股東。上個月，我們很高興支持一家二級股東B. Riley 在 Alta 持有的大約第三份普通股發行。我們認為此次交易對股東有利，因為此次發行分散給了不同的主要新投資者，並最終增加了 ALTG 股票的流通量和流動性。

In closing, I'd like to thank my Alta colleagues for a great first half of 2023, our customers and OEMs for their belief in our team, and our shareholders for the support and confidence. Thank you for your time and attention, and I will turn it back over to the operator for Q&A.

最後，我要感謝我的 Alta 同事在 2023 年上半年的出色表現，感謝我們的客戶和 OEM 對我們團隊的信任，感謝我們的股東的支持和信心。感謝您的時間和關注，我會將其轉回給接線員進行問答。

(Operator Instructions)

（操作員說明）

Matt Summerville, D.A. Davidson.

馬特·薩默維爾，D.A.戴維森。

Thanks. A couple of questions. First, with respect to -- can you maybe talk about what you're seeing with rental utilization rates now versus maybe a year ago or a quarter ago? And similarly, what rental rate pricing looks like now versus maybe a year ago? And then, just as a follow up here and add on to that, rental rates sound like they're strong. What sort of utilization rate would you have to hit on the downside from where you're at now before rental rates start heading in the other direction? And then I have a follow up.

謝謝。有幾個問題。首先，您能否談談現在與一年前或一個季度前相比，您所看到的租金利用率？同樣，現在的租金定價與一年前相比是怎樣的？然後，正如這裡的後續行動和補充，租金率聽起來很強勁。在租金率開始朝另一個方向發展之前，您必須達到什麼樣的利用率才能從現在的水平下降？然後我有一個後續行動。

Sure, Matt. Hey, this is Tony. I'll take that. You know what, we have grown our fleet, not dissimilar from other kind of rental houses and our competition. As supply chains have let loose with the dearth of equipment that we've had to deal with as an industry the last couple of years, it appears that everybody is starting to normalize and right size. And so what that does just mathematically is if you're not able to get that fleet -- the additional fleet out, your physical utilization -- somewhat call it, dollar utilization, we call it physical utilization, which just mathematically go down.

當然，馬特。嘿，這是托尼。我會接受的。您知道嗎，我們已經擴大了我們的車隊，與其他類型的租賃房屋和我們的競爭對手沒有什麼不同。由於供應鏈在過去幾年中我們作為一個行業不得不應對設備的缺乏，因此似乎每個人都開始正常化和調整規模。因此，從數學上講，如果你無法獲得該機隊——額外的機隊，你的物理利用率——可以稱之為美元利用率，我們稱之為物理利用率，它在數學上就會下降。

It doesn't mean that you have less fleet on rent, but your physical utilization as a percentage of your total fleet would go down. And I don't think we're alone, but we have seen that percentage go down. We have seen the amount of equipment on rent flatten out a little bit. Now some of that is because we've grown the fleet and sometimes it takes a little while for that fleet to become available to customers and get it out on rent. And then certainly, you're not going to see the full impact of that piece of equipment for several months to a year. And so that's what's happening physical utilization-wise. Again, we feel pretty strongly about the back half of the year and just customer sentiment as a whole.

這並不意味著您的租賃車隊減少，而是您的物理利用率佔總車隊的百分比會下降。我認為我們並不孤單，但我們已經看到這個百分比在下降。我們發現租賃設備的數量略有下降。現在，部分原因是我們已經擴大了機隊規模，有時需要一段時間才能使該機隊可供客戶使用並出租。當然，您在幾個月到一年內都不會看到該設備的全部影響。這就是物理利用方面正在發生的事情。同樣，我們對今年下半年以及整個客戶情緒的感受非常強烈。

The other thing that I would say is we have new equipment and used equipment that, as Ryan mentioned, moving out of here in record levels. And so there you have to think of the market as a whole, I talked about our rent-to-sell model, and we're moving a lot of new equipment onto customer balance sheets as well.

我要說的另一件事是，正如瑞安提到的，我們擁有新設備和舊設備，以創紀錄的水平搬出這裡。因此，你必須將市場視為一個整體，我談到了我們的租售模式，我們也將許多新設備轉移到客戶的資產負債表上。

So from rent perspective, I think our materials, we mentioned -- and I mentioned on the call, we've seen a 6% increase when we look back to last year. I don't think that's outside of what you've seen in the broader rental markets from others. And we would expect that to -- if you look at that 6%, it's definitely down from the growth levels we've seen over the last couple of years, '21, '22, double-digit year-on-year increases. And so seeing that sort of moderating, and I would expect that that level to either hold or continue to moderate toward the back half of the year.

因此，從租金的角度來看，我認為我們的材料，我們提到過——我在電話會議上提到過，當我們回顧去年時，我們看到了 6% 的增長。我認為這不超出您在更廣泛的租賃市場上從其他人那裡看到的情況。我們預計，如果你看看這 6%，它肯定低於我們過去幾年看到的增長水平，即 21 年、22 年兩位數的同比增長。因此，看到這種放緩，我預計這一水平將在今年下半年保持不變或繼續放緩。

Got it. And then is a follow-up, I was wondering if you could -- I want to spend a minute, just given your comments, Ryan, on Yale Industrial and then Ecoverse. Realizing you've owned those businesses for less than a year, but what kind of pro forma organic growth are you seeing off of those businesses, which -- you obviously have a nice market share opportunity, you've highlighted before, up in Eastern Canada. You have a secular play with respect to Ecoverse in general. And then maybe layer in some additional commentary on maybe the revenue run rate of the PeakLogix business, and how the backlog specifically looks in warehousing and logistics projects for you guys. Thank you.

知道了。接下來是後續行動，我想知道您是否可以——瑞安，我想花一點時間，談談您對耶魯工業和 Ecoverse 的評論。意識到您擁有這些企業還不到一年，但是您從這些企業中看到了什麼樣的形式有機增長，您顯然擁有很好的市場份額機會，您之前已經強調過，在東部地區加拿大。總的來說，你對生態宇宙有一個世俗的遊戲。然後可能會對 PeakLogix 業務的收入運行率以及你們的倉儲和物流項目中的積壓工作具體情況進行一些額外的評論。謝謝。

I'm going to take the back end of that, Alex, and then maybe I'll turn it over to Ryan to form up the opportunity for us at YIT and Ecoverse. I would say that Ecoverse, we're still in the beginning stages. They had a great first quarter. We mentioned the seasonality there last quarter, but there's no reason to not expect organic growth from either of those companies. But Ryan has the kind of the YIT thing, more top of mind in terms of share or opportunity.

Alex，我將負責這件事的後端，然後也許我會將其交給 Ryan，為我們在 YIT 和 Ecoverse 創造機會。我想說，Ecoverse，我們仍處於起步階段。他們第一季度表現出色。我們上個季度提到了季節性因素，但沒有理由不期待這兩家公司的有機增長。但 Ryan 具有 YIT 風格，更注重份額或機會。

What I would say on the PeakLogix side is there was a theory of activity coming out of COVID for automation, and logistics, and e-commerce, warehousing, so on and so forth. We have seen that moderate a bit as COVID has gotten further and further in the rear view. Our backlog is coming down in that business. And I think the other thing to think about relative to the PeakLogix business is these are large CapEx projects for customers. And what we have heard is that the sales cycle taking a little bit longer, given interest rates from customers in that business maybe taking a pause on CapEx spending for a large retrofit of a warehouse. So anyway, we are seeing a little bit of moderation in the end markets there. Do you want to talk to YIT?

我想說的是，在 PeakLogix 方面，有一種來自新冠疫情的活動理論，適用於自動化、物流、電子商務、倉儲等等。隨著新冠肺炎疫情的發展越來越遠，我們看到這種情況有所緩和。我們在該業務中的積壓工作正在減少。我認為與 PeakLogix 業務相關的另一件需要考慮的事情是，這些都是客戶的大型資本支出項目。我們聽到的是，考慮到該業務客戶的利率可能會暫停對倉庫進行大規模改造的資本支出，銷售週期需要更長的時間。因此無論如何，我們看到終端市場略有放緩。您想與 YIT 交談嗎？

Sure. So you'd asked about both YIT and Ecoverse organic growth. I'll start with YIT, and just to frame up how we're thinking about the growth in that market. As we've said in the past, we're underwriting an acquisition. We get a lot more excited about deals that there's that market already there, field population, and that we can go penetrate the aftermarket opportunity. Sometimes the most significant growth opportunities that will come from the deals that take longer to materialize, but it's when there's an opportunity to grow share within a region. And the opportunity in Eastern Canada is an organic double of revenues over the next several years.

當然。所以您詢問了 YIT 和 Ecoverse 的有機增長。我將從 YIT 開始，只是為了框架我們如何思考該市場的增長。正如我們過去所說，我們正在承銷一項收購。我們對已經存在的市場、現場人員以及我們可以滲透售後市場機會的交易感到更加興奮。有時，最重要的增長機會來自需要較長時間才能實現的交易，但只有當有機會在一個地區內增加份額時。加拿大東部的機會是未來幾年收入的有機翻倍。

The way to think about it is that we need to double the market share in that region to do the job that Hyster-Yale expects of us. What that brand should command of the market, we should be able to double market share, and we should be able to bring in the rest of the portfolio. I identified some of the other areas that we bring along with -- in an opportunity like YIT, where we will bring in our tire business, our battery business, all of the allied products. And it's just a function of how long it will take us to get there. But today, I would estimate that in the next three years, we should be able to double that business in revenues, so that's kind of the goal. And there could be an M&A component to it as well, but there's certainly an opportunity just to do that through organic growth.

思考的方式是，我們需要將該地區的市場份額增加一倍才能完成海斯特-耶魯對我們的期望。該品牌應該佔領市場，我們應該能夠將市場份額翻倍，並且我們應該能夠引入其餘的產品組合。我確定了我們帶來的一些其他領域——在像 YIT 這樣的機會中，我們將引入我們的輪胎業務、我們的電池業務以及所有相關產品。這只是我們到達那裡需要多長時間的函數。但今天，我估計在未來三年內，我們應該能夠使該業務的收入翻一番，所以這就是我們的目標。其中也可能包含併購成分，但肯定有機會通過有機增長來做到這一點。

And then on the Ecoverse side, the organic growth there is going to come from two areas. One is just the natural growth of the recycling market, which is very nascent. And we expect to have significant growth over the next decade. And we have a great product that's the core product, the Doppstadt brand will benefit from the growth of that market, that there will be more applications for their machines in recycling in particular.

然後在 Ecoverse 方面，有機增長將來自兩個領域。一是回收市場的自然增長，目前還處於萌芽階段。我們預計未來十年將出現顯著增長。我們有一個偉大的產品，即核心產品，Doppstadt 品牌將受益於該市場的增長，他們的機器將有更多的應用，特別是在回收領域。

The other area for growth is to find new partners, new OEM partners to distribute within the Ecoverse business model. And we're excited about that as well. That's going to take a little bit longer to put together. But there's a real need for master distribution in categories of equipment that are very technologically advanced and niche-y, specialized markets that are small, addressable markets but very specialized. And there -- we're already in conversation with several specialty line manufacturers about expanding the Ecoverse business to take on additional vendors.

另一個增長領域是尋找新的合作夥伴、新的 OEM 合作夥伴，以在 Ecoverse 商業模式中進行分銷。我們也對此感到興奮。組裝起來需要更長的時間。但是，確實需要在技術非常先進和利基市場的設備類別中進行主分銷，這些市場規模雖小，但非常專業。我們已經與幾家專業生產線製造商就擴大 Ecoverse 業務以接納更多供應商進行了對話。

So the other thing within the master distribution, the reason that we defined a new segment is we think that there are other end markets or other segments of the market that will invite a master distribution type relationship as well that may not fit within Ecoverse, but that will fit within the Alta platform and allow us to utilize our strength in parts distribution and in product distribution. Just to put a number on that one, it's too early there. We're really excited about the -- how we've come out of the gates with the business. It's a nice start to the year, but too early to kind of down to an organic growth rate.

因此，主分配中的另一件事，我們定義新細分市場的原因是，我們認為還有其他終端市場或市場的其他細分市場也會邀請主分配類型關係，這可能不適合 Ecoverse，但是這將適合Alta 平台，使我們能夠利用我們在零件分銷和產品分銷方面的優勢。只是要給出一個數字，現在還為時過早。我們對我們如何走出業務大門感到非常興奮。這是今年的一個良好開端，但現在就降低有機增長率還為時過早。

Got it. Thanks, guys.

知道了。多謝你們。

Alex Rygiel, B. Riley.

亞歷克斯·里吉爾，B.萊利。

Thank you. Good evening, gentlemen. A few quick questions here. First, the M&A pipeline haven't been that active year to date. So I guess my question to you is, are sellers asking unreasonable prices or is it really just timing here as it relates to your success with M&A this year?

謝謝。晚上好，先生們。這裡有幾個簡單的問題。首先，今年迄今為止的併購渠道並不活躍。所以我想我向您提出的問題是，賣家是否提出了不合理的價格，或者這真的只是時機，因為這與您今年併購的成功有關？

Alex, this is Ryan, I'll take that one. Thanks for the question. There's really no difference in the backdrop for the M&A opportunity. The reasons for the consolidation opportunity are intact. There aren't enough consolidators. OEMs have too many dealers that are undercapitalized, undermanaged, and this is a very active pipeline. I wouldn't read into the transaction -- the lack of a transaction recently that there's a drying up opportunity or anything like that. So I would say, no change in what we're willing to pay or how we think about valuations or the expectations in the market. And really, no change in terms of how fertile the backdrop is. I would say, it's -- more than ever the phone rings in, where we've always spent a lot of our efforts prospecting for the right opportunities and the right strategy. Now we spend a lot of time looking at new opportunities that otherwise we wouldn't have seen. So really excited just about the continued strategy there.

亞歷克斯，這是瑞安，我選那個。謝謝你的提問。併購機會的背景確實沒有什麼區別。整合機會的理由完好無損。沒有足夠的整合者。原始設備製造商擁有太多資金不足、管理不善的經銷商，而這是一條非常活躍的渠道。我不會解讀這筆交易——最近沒有一筆交易表明機會正在枯竭或類似的事情。所以我想說，我們願意支付的費用或我們對估值或市場預期的看法沒有改變。事實上，背景的豐富程度沒有任何變化。我想說，電話鈴聲比以往任何時候都多，我們總是花費大量精力尋找正確的機會和正確的策略。現在我們花了很多時間尋找新的機會，否則我們不會看到這些機會。對於那裡的持續戰略感到非常興奮。

And then recently, Hyster-Yale talked about a very, very strong backlog that should extend their activity well into 2024. But they did reference a little bit of a softness in order activity. So I was wondering if you could discuss your order activity and your order backlog?

最近，海斯特-耶魯談到了非常非常強勁的積壓，應該將他們的活動延長到 2024 年。但他們確實提到了訂單活動有點疲軟。所以我想知道您是否可以討論一下您的訂單活動和訂單積壓？

I would say, Alex, one is just to follow up on the previous question. We expect to be active this year yet M&A wise. I would note that we did to run relatively small transactions. And sometimes, the small ones beget the big ones just given relationships, so on and so forth. But the answer to your question on the -- I'm sorry, Alex, can you repeat the question? Sorry about that.

我想說，亞歷克斯，一個只是跟進上一個問題。我們預計今年將積極開展併購活動。我要指出的是，我們確實運行了相對較小的交易。有時，小事物會因某種關係而產生大事物，等等。但你的問題的答案是——對不起，亞歷克斯，你能重複一下這個問題嗎？對於那個很抱歉。

Yes, order backlog and order activity.

是的，訂單積壓和訂單活動。

Oh, yeah, sorry. I would say that our -- we would mimic what Hyster-Yale is saying. I think we saw a very strong backlog that takes us well into 2024 at this point. There are certain product categories that continue to be problematic to get when it comes to lead times.

哦，是的，抱歉。我想說的是，我們會模仿海斯特-耶魯所說的。我認為我們看到了非常強勁的積壓，這使我們在這一點上能夠順利進入 2024 年。某些產品類別在交貨時間方面仍然存在問題。

I think what Hyster-Yale was referencing is bookings. And I think, as Ryan has said publicly here, the last couple of quarters is -- similar to what I just mentioned on PeakLogix. You had this, through COVID, this massive run-up in bookings as people were trying to pull forward demand and thought that the whole world was going to be running on e-commerce. And so you had, I don't know, 50% gains in bookings as an industry versus historic norms. And I think all you're seeing is that moderating, again, back down from these massive peak levels.

我認為海斯特-耶魯所指的是預訂。我認為，正如 Ryan 在此公開表示的那樣，過去幾個季度的情況與我剛剛在 PeakLogix 上提到的情況類似。由於新冠疫情，預訂量大幅增加，因為人們試圖拉動需求，並認為整個世界都將依靠電子商務運行。因此，我不知道，與歷史標準相比，整個行業的預訂量增長了 50%。我認為你所看到的只是再次從這些巨大的峰值水平回落。

Very helpful. Thank you very much.

很有幫助。非常感謝。

Ted Jackson, Northland.

特德·傑克遜，北國。

Thank you very much. Congratulations on a very solid quarter.

非常感謝。祝賀本季度業績非常穩健。

Thanks, Ted.

謝謝，特德。

I'm going to focus on a couple of things. A couple of things, just focusing on kind of balance sheet, and CapEx, and free cash flow. I mean, your building inventory makes sense. It's not like you haven't flagged it or not. But given where we are in terms of inventory and where in the current quarter, can I ask you what do you think the peak for inventory would be when you are, let's call it, formally normalized? Like kind of what's the dollar amount on the balance sheet? And how long will it take you to get?

我將重點關注幾件事。有幾件事，只關注資產負債表、資本支出和自由現金流。我的意思是，你的建築庫存是有道理的。這並不是說您沒有標記它。但考慮到我們的庫存情況以及本季度的情況，我能否問您，當您（我們稱之為正式正常化）時，您認為庫存峰值會是多少？就像資產負債表上的美元金額是多少？你需要多長時間才能得到？

Yeah. I would say we're pretty close here, Ted. One is we're in the middle of the season when you think about the end of Q2 from just a construction perspective, right in the north. As we -- I've mentioned this previously, but as a public company, we started, we were right into COVID, and then the supply chain issues. We really haven't been able to show the public market a normal ebb and flow of inventory until now. And so we would expect to stay at or near these levels and potentially come down from here as we head towards the back half of the year. Rather than think about a nominal number, because as continue to grow, we'd like to -- we want to take more share for OEMs, so on and so forth.

是的。我想說我們已經很接近了，特德。一是我們正處於賽季中期，當你僅從北部地區的建設角度考慮第二季度末時。正如我之前提到的，但作為一家上市公司，我們一開始就遇到了新冠疫情，然後是供應鏈問題。到目前為止，我們確實無法向公開市場展示庫存的正常潮起潮落。因此，我們預計將保持在或接近這些水平，並可能在今年下半年下降。我們不想考慮名義上的數字，因為隨著持續增長，我們希望為原始設備製造商（OEM）等獲得更多份額。

To put some numbers to it, Ted, on annualized turnover basis, new and used equipment, if you roll back the clock 12, 18 months ago, we were at three turns of new and used equipment, and we've come down to a more normalized two. And so -- and then you could do the same thing, the same math with parts inventory, where we are in the high-twos, we've kind of normalized now down to two. And so we wouldn't want to get too far below these levels. These are kind of our benchmark levels that we would like to stay at. So if the nominal dollars goes up, it's because we're growing. But we want to stay in this two-turn area for -- and not go below it.

特德，根據年化營業額、新設備和二手設備，用一些數字來表示，如果你把時間倒回12 個月或18 個月前，我們的新設備和二手設備處於三輪變化狀態，我們已經將其歸結為更標準化的兩個。所以 - 然後你可以做同樣的事情，對零件庫存進行同樣的數學計算，我們處於高兩位數，我們現在已經標準化到兩位數。因此，我們不想低於這些水平太遠。這些是我們希望保持的基準水平。因此，如果名義美元上漲，那是因為我們在增長。但我們希望留在這個兩轉區域——而不是跌破它。

Okay. Similar question with regards to rental equipment. I mean, you've been adding to the fleet, your -- what do you add -- on a net basis, call it, $370 million of rental equipment this quarter. Where does that go? And I mean, one of the things that's come out of a lot of calls I've listened to and people I've talked to that are into the rental business is that the finding that is the cost of capital goes higher with higher interest rates that -- they're finding that actually driving, I guess you would say, incremental demand or basically, people -- they don't have the CapEx budget to buy. So they rent until they actually have the cap budget to buy it. So with that kind of a backdrop, I guess the question is, are you seeing that kind of phenomenon, and then where do you see your taking your rental fleet as we go forward?

好的。關於租賃設備的類似問題。我的意思是，本季度您一直在增加機隊，您增加了什麼，淨額為 3.7 億美元的租賃設備。那會去哪裡？我的意思是，我聽過的許多電話以及與我交談過的從事租賃業務的人得出的結論之一是，資本成本隨著利率的升高而升高我想你會說，他們發現實際上推動了增量需求，或者基本上是人們——他們沒有資本支出預算來購買。因此，他們會一直租房，直到他們真正有足夠的預算來購買為止。因此，在這種背景下，我想問題是，您是否看到了這種現象，然後您認為在我們前進的過程中您將把租賃車隊帶到哪裡？

Yeah, Ted. I'll take that in a couple of different pieces. But when we think about, I mentioned, the $50 million rent-to-rent revenue for the quarter, we're sitting, I think, somewhere around $95 million for the year. And then we have about $566 million of original equipment value. And so, when you annualize the $93 million, $95 million, you get somewhere around, call it, $190 million-ish of rent-to-rent revenue on an OEC of $566 million, which puts us north of 30% financial utilization, which is right in line with what we've always messaged where we'd like to play into. And so yes, we have grown the fleet. It's -- we're up -- roughly up about 10% on that OEC figure for the year. So $516 million to $566 million.

是的，特德。我將把它分成幾個不同的部分。但我提到，當我們考慮到本季度 5000 萬美元的租金收入時，我認為全年的收入約為 9500 萬美元。我們的原始設備價值約為 5.66 億美元。因此，當你將 9300 萬美元、9500 萬美元年化時，你會得到大約 1.9 億美元左右的租金收入，OEC 為 5.66 億美元，這使我們的財務利用率超過 30%，這這與我們一直傳達的我們想要玩的內容是一致的。是的，我們已經擴大了機隊。它比今年的 OEC 數字大約增長了 10% 左右。也就是 5.16 億美元到 5.66 億美元。

I would mention that what I touched on the call is our rent-to-sell model. So as opposed to the public rental houses like URI and H&E, where they have very bespoke CapEx plans of growing their fleet, and then holding all of that equipment on the balance sheet for some elongated period of time. That's not our model for two-thirds to three-quarters of the fleet, which means we can de-fleet very quickly through the rent-to-sell model.

我要提到的是，我在電話會議中談到的是我們的先租後賣模式。因此，與 URI 和 H&E 等公共租賃公司不同，它們有非常定制的資本支出計劃來擴大其機隊，然後將所有這些設備保留在資產負債表上一段較長的時間。對於三分之二到四分之三的機隊來說，這不是我們的模式，這意味著我們可以通過先租後賣的模式非常快速地淘汰機隊。

And so in terms of the last point, interest rates having a bearing on the buy versus rent equipment, I would say that we're agnostic to the answer that question, because we're turning so much new equipment. And so people are still committing to assets despite the run-up in interest rates and not pouring into rental and leaving new equipment behind. I think there's so much pent-up demand for new equipment contractors. Talk about all the end markets, macro drivers, they've been waiting for this new equipment, in certain cases, over a year, maybe more. And so I'm not sure. We would be a little bit agnostic to answer that question on interest rates impacting rent versus buy.

因此，就最後一點而言，利率對購買與租賃設備有影響，我想說我們對這個問題的答案不可知，因為我們正在更換如此多的新設備。因此，儘管利率上升，人們仍然致力於投資資產，而不是投入租金並留下新設備。我認為對新設備承包商的需求被壓抑得太多了。談到所有的終端市場、宏觀驅動因素，他們一直在等待這種新設備，在某些情況下，等待了一年多，甚至更久。所以我不確定。我們對於回答利率影響租金與購買的問題有點不可知。

Yeah, I just asked these questions because with the -- I mean, it's a good problem to have. But as you're normalizing out the inventory and you are growing the rental fleet to meet demand, it's basically taking your free cash flow numbers down substantially. And at some point, you have to normalize out that inventory and that rental equipment, the demand for whatever you want to say becomes a little [more] stable. The cash generation of the business really starts to show itself. And I'm just trying to understand when I can expect that -- we can expect to see what happens. (technical difficulty) like '24 could be a pretty good year for you in terms of cash generation.

是的，我只是問這些問題，因為——我的意思是，這是一個很好的問題。但是，當您使庫存正常化並增加租賃車隊以滿足需求時，這基本上會使您的自由現金流量大幅下降。在某些時候，你必須使庫存和租賃設備正常化，對你想說的任何東西的需求都會變得更加穩定。企業的現金產生能力真正開始顯現出來。我只是想了解什麼時候我可以期待——我們可以期待看到會發生什麼。 （技術難度）像 24 年對於你的現金生成來說可能是相當不錯的一年。

My last --

我最後一次 -

Outside of M&A, I would say, outside -- first of all, I agree with you, Ted. Outside of M&A, potentially where we would eat up some capacity there. I would agree with you that things will normalize. We've had to invest in the balance sheet in working capital, equipment, because we were just bereft of things like parts, right, relative to history. And so that, I agree with you is -- we would expect to normalize over the next 12 to 18 months.

在併購之外，我想說的是，在併購之外——首先，我同意你的觀點，特德。除了併購之外，我們可能會消耗掉那裡的一些產能。我同意你的觀點，事情將會正常化。我們不得不在資產負債表上投資營運資金、設備，因為我們只是失去了像零件這樣的東西，對吧，相對於歷史而言。因此，我同意你的觀點，我們預計在未來 12 到 18 個月內實現正常化。

Got it. I think you'll get rewarded for it. And acquisitions aren't necessarily bad. You seem to do pretty good job with them. My last question is just around the Nikola, or Nikola, however you pronounce it, I don't really know. I assume that that revenue finds its way in your material handling segment. I just want to confirm that. And then just maybe to the level that you are capable of -- I mean, it's impressive to put up the revenue numbers you did, kind of pipeline of business, outlook for rest of the year and '24. I mean, there's clearly some issues with regards to the going concern of the company, maybe a little discussion around that too, as it relates to your ability to grow that business on a go-forward basis? That's my last question. Thanks.

知道了。我想你會因此得到回報。收購併不一定是壞事。看來你和他們相處得很好。我的最後一個問題是關於尼古拉，或尼古拉，無論你怎麼發音，我真的不知道。我認為該收入會進入您的物料搬運部門。我只是想確認一下。然後也許會達到你的能力水平——我的意思是，公佈你所做的收入數字、業務渠道、今年剩餘時間和 24 年的前景令人印象深刻。我的意思是，顯然存在一些與公司持續經營有關的問題，也許還需要對此進行一些討論，因為這關係到您未來發展業務的能力？這是我的最後一個問題。謝謝。

Thanks, Ted. I'll take the front -- this is Tony, I'll take the front end and the back end of that question. I'll leave it to Ryan to talk about just demand, as we see it throughout the rest of the year and going forward.

謝謝，特德。我會回答前面的問題——這是托尼，我會回答這個問題的前端和後端。我將讓瑞安來討論正義需求，正如我們在今年剩餘時間和未來所看到的那樣。

So the revenue itself is in our corporate segment, and it's an offset against some inter-company elimination. So until the EV segment, the EV business, I should say, really starts to get material. We'll be reporting out the revenue numbers like we mentioned in -- we will be reporting it in the Qs and as we did here through the press release. But the segment itself will be housed inside the corporate segment for now.

因此，收入本身屬於我們的公司部門，它抵消了一些公司間的抵銷。因此，我應該說，在電動汽車領域之前，電動汽車業務才真正開始獲得實質性成果。我們將像我們在 Q 中提到的那樣報告收入數字，就像我們在這里通過新聞稿所做的那樣。但該部門本身目前將位於企業部門內。

The back end of your question, we are cheerleaders for Nikola. We think we obviously are working with them, and we were encouraged that the latest news in terms of some of the steps that they're taking further, with regard to their cash flows or the cash burn in their balance sheet. But we would leave it for you to talk to them about just some of the other things that you mentioned relative to going concern. But we were pleased with some of the more recent activity out of them. But go ahead, Ryan.

你問題的後端，我們是尼古拉的啦啦隊。我們認為我們顯然正在與他們合作，我們對他們正在採取的一些進一步措施（涉及現金流或資產負債表中的現金消耗）的最新消息感到鼓舞。但我們會讓您與他們討論您提到的與持續經營相關的其他一些事情。但我們對他們最近的一些活動感到滿意。但繼續吧，瑞安。

Yeah. What I would say, just in terms of our expectation is that this is the beginning of being able to show incremental growth every quarter. One of the themes, over the last couple of years, has been the bottleneck of making retail deliveries of these vehicles, just due to the lack of charging infrastructure and some of the bottleneck that happens in working with the utilities to get that infrastructure installed. As we sit here today, we have many later-stage sales opportunities, and we expect to be able to report additional deliveries every quarter going forward.

是的。我想說的是，就我們的期望而言，這是能夠顯示每個季度增量增長的開始。過去幾年的主題之一是這些車輛零售交付的瓶頸，這只是由於缺乏充電基礎設施以及與公用事業公司合作安裝基礎設施時出現的一些瓶頸。當我們今天坐在這裡時，我們有許多後期銷售機會，我們期望能夠報告未來每個季度的額外交付量。

One thing that we're really excited about is Nikola's strategy of being powertrain -- not powertrain agnostic, because these are all electric powertrains, but fuel agnostic in terms of whether they're battery electric vehicles or fuel cell-powered electric vehicles. The way that we think about the distinction is that hydrogen fuel cell-powered will be for the longer-haul and heavier-duty applications. You could think of the fuel cell as a range extender. And the training and just being up to speed to support this product, there's a lot of synergies that will happen with the way that they're going to market in this manner.

我們真正興奮的一件事是尼古拉的動力系統戰略——不是動力系統不可知論，因為這些都是電動動力系統，而是燃料不可知論，無論它們是電池電動汽車還是燃料電池驅動的電動汽車。我們考慮這種區別的方式是，氫燃料電池驅動的將用於長途和重型應用。您可以將燃料電池視為增程器。通過培訓以及加快支持該產品的速度，他們以這種方式進行營銷將會產生很多協同效應。

So we're really excited about the product. We just had a demonstration day in Detroit, where we had several big customers out to demo the truck. We actually had the hydrogen fuel cell truck on site. And we're super hopeful that we see deliveries this year of the hydrogen truck. That's where the market for our footprint in the country with the heavy exposure in north and with some of the major thoroughfares in terms of transportation routes. We think there's going to be a lot of excitement, and we're already hearing about the longer-range hydrogen truck. So as Tony said, specifics about Nikola's health, I think, you should go to them. But in terms of what we see, we couldn't be more excited about the opportunity, and we maintain that this is our most significant organic growth opportunity in the business today.

所以我們對這個產品感到非常興奮。我們剛剛在底特律舉行了演示日，有幾位大客戶前來演示卡車。我們現場實際上有氫燃料電池卡車。我們非常希望今年能看到氫氣卡車的交付。這就是我們在該國的足跡所在的市場，該國在北部地區擁有大量曝光，並且在交通路線方面擁有一些主要幹道。我們認為將會有很多令人興奮的事情，而且我們已經聽說了遠程氫氣卡車。正如托尼所說，關於尼古拉健康狀況的具體情況，我認為，你應該去找他們。但就我們所看到的情況而言，我們對這個機會感到非常興奮，我們認為這是我們當今業務中最重要的有機增長機會。

Great. Well, thanks. I'm just going to throw in a shameless plug to say, I look forward to seeing you all on September 19, in Minneapolis at the Northland Securities Investors Conference. And if anybody wants to see these guys in person, please come.

偉大的。非常感謝。我只想無恥地插一句，我期待著 9 月 19 日在明尼阿波利斯舉行的北國證券投資者大會上見到你們。如果有人想親自見到這些人，請來。

Appreciate it, Ted. We'll see you there.

很欣賞它，特德。我們在那裡見。

Steve Hansen, Raymond James.

史蒂夫·漢森，雷蒙德·詹姆斯。

Yeah, guys, thanks for your time. Just wanted to go back to the M&A environment a little bit here. You described a number of different opportunities. It sounds like the pipeline is still relatively rich. But is there focus areas that you're really looking at? How are you really trying to prioritize these different opportunities in terms of best capital allocation from the opportunity set? Just given that the platform is so diverse, how are you really targeting or prioritizing certain deals? Any commentary on that would be helpful.

是的，伙計們，謝謝您的寶貴時間。只是想稍微回到一下併購環境。您描述了許多不同的機會。聽起來管道還是比較豐富的。但有您真正關注的重點領域嗎？您如何真正嘗試根據機會集中的最佳資本配置來優先考慮這些不同的機會？鑑於該平台如此多樣化，您如何真正定位或優先考慮某些交易？對此的任何評論都會有所幫助。

Sure. So thank you for highlighting the word capital allocation, because the way that we think about it, our best deal is the one that -- we onboard technicians, and there's a robust aftermarket reoccurring revenue stream with the business. So the way that we rank opportunities, opportunities within our existing footprint are very attractive, because they're often synergies, both on the cost and sales side with the existing business. We call those infill opportunities, and there are several that we're looking at today.

當然。因此，感謝您強調資本配置這個詞，因為從我們的角度來看，我們最好的交易是——我們聘請技術人員，並且業務擁有強勁的售後市場經常性收入流。因此，我們對機會進行排名的方式，我們現有業務範圍內的機會非常有吸引力，因為它們通常在成本和銷售方面與現有業務產生協同效應。我們將這些機會稱為“填充機會”，我們今天正在關注其中的幾個機會。

The other just broader theme is we cover and we've mentioned this before, just a very dense population and economic region of North America, and we benefit from that. But what we also are cognizant of is the trend towards things moving south. And so we love our Florida construction business. That could maybe be a theme as that we look for more opportunities down south as we grow our footprint. And then our Canadian investment, which was more recent, there is another huge opportunity with Ontario and Quebec, the major population centers of Eastern Canada. We've got infrastructure in Montreal, in Toronto. We're excited to potentially do infill acquisitions in other segments of our strategy in the Canadian market as well.

另一個更廣泛的主題是我們之前提到過的，北美人口和經濟區域非常密集，我們從中受益。但我們也認識到事物向南發展的趨勢。因此，我們熱愛佛羅里達州的建築業務。這可能是一個主題，因為隨著我們擴大足跡，我們會在南方尋找更多機會。然後我們在加拿大的投資是最近的，加拿大東部主要人口中心安大略省和魁北克省還有另一個巨大的機會。我們在蒙特利爾和多倫多都有基礎設施。我們很高興能夠在加拿大市場的其他戰略領域進行填充收購。

I think, maybe just to pile on there, Steve, we always rank existing relationships with OEMs that we have to take incremental territory for them. And we're fans of exclusive rights -- sorry, we want to be a dealership first and foremost. So exclusive rights with OEMs that we know and we can grow with, I would say, go to the top of the list, and then new OEMs that we think we can establish our relationship with, also go to the top of the list.

我想，也許只是為了補充一下，史蒂夫，我們總是對與原始設備製造商的現有關係進行排名，我們必須為他們佔領增量領域。我們是專有權的粉絲——抱歉，我們首先想成為經銷商。因此，我想說的是，我們所了解的並且可以與我們一起成長的原始設備製造商的獨家權利位於列表的頂部，然後我們認為可以與之建立關係的新原始設備製造商也位於列表的頂部。

That's helpful, guys. I appreciate that. And then just then as a follow-up -- sorry, excuse me. Just on the supply chain availability, you referenced it getting better. I was just trying to understand a bit more in terms of where you still have some constraints, and how you see those playing out from an inventory normalization standpoint? You've also referenced inventory high and coming back down. So is there certain areas of the business where the OEM availability has really gotten that much better, or you're still seeing challenges small versus medium, large equipment, et cetera?

這很有幫助，伙計們。我很感激。然後作為後續行動——抱歉，對不起。就供應鏈可用性而言，您提到它正在變得更好。我只是想更多地了解您仍然存在一些限制，以及您如何從庫存正常化的角度看待這些限制？您還提到庫存處於高位並隨後回落。那麼，在某些業務領域，OEM 的可用性是否真的變得更好了，或者您仍然看到小型設備與中型、大型設備等方面的挑戰？

Yeah. I would say, Steve, in our construction segment, where Volvo is a major OEM, and we have a host of others, just large multinational names that we're seeing more progress there. We've seen more normalization there than we have, maybe, in some of the more niche-y areas of the material handling forklift segment. So we're still seeing some longer lead times for certain classes of equipment. And I think Hyster-Yale has been fairly public with some of the issues that they've had.

是的。我想說，史蒂夫，在我們的建築領域，沃爾沃是主要的原始設備製造商，我們還有許多其他公司，只是大型跨國公司，我們在那裡看到了更多進展。與物料搬運叉車領域的一些更小眾的領域相比，我們可能看到了更多的標準化。因此，我們仍然看到某些類別的設備的交貨時間較長。我認為海斯特-耶魯大學已經相當公開地公開了他們遇到的一些問題。

Things are normalizing for them. As Alex had pointed out, they've had a very strong last quarter. But what I would say is there's still certain product categories in the material handling space that are probably causing the most acute issues. But when we look at this overall, Steve, we're light-years ahead of where we were last year or 18 months ago at this time. These are more kind of, I'd classify as, nuisance things versus anything material from a supply chain perspective at this point.

對他們來說事情正在正常化。正如亞歷克斯所指出的，他們上個季度的表現非常強勁。但我想說的是，物料搬運領域中仍然有某些產品類別可能導致最嚴重的問題。但當我們從整體上看時，史蒂夫，我們比去年或 18 個月前的這個時候領先了好幾光年。目前，從供應鏈的角度來看，這些更像是令人討厭的事情，而不是任何實質性的事情。

Okay. Very helpful. Thanks.

好的。很有幫助。謝謝。

Thank you for your question. There are no additional questions waiting at this time. That will conclude the conference call. Thank you for your participation. You may now disconnect your lines.

謝謝你的問題。目前沒有其他問題等待。電話會議到此結束。感謝您的參與。您現在可以斷開線路。