Alta Equipment Group (ALTG) risk factors, FY2024 10-K

Risks Related to the Company’s Business and Industry

1. 01The Company’s inability to forecast trends accurately may adversely impact the Company’s business and financial condition
2. 02Variations in the Company’s revenues and operating results have in the past and could in the future result in a decline in the Company’s profitability and make it more difficult for the Company to grow our business
3. 03timing of acquisitions and new location openings and related costs
4. 04The Company is subject to competition, which may have an adverse effect on the Company’s business by reducing the Company’s ability to increase or maintain revenues or profitability
5. 05The Company is subject to the ability of our OEMs to deliver cost competitive equipment and parts timely
6. 06The Company purchases a significant amount of our equipment from a limited number of manufacturers. Termination of one or more of the Company’s relationships with any of those manufacturers could have an adverse effect on the Company’s business
7. 07The Company is dependent upon the success and continued viability of our OEM suppliers for which we are distributors
8. 08The cost of new equipment the Company sells or purchases for use in our rental fleet may increase and the Company may not be able to pass these increases along to customers or otherwise offset these cost increases in our operation
9. 09The Company’s rental fleet and used equipment is subject to market value risk
10. 10The Company incurs maintenance and repair costs associated with our rental fleet equipment that could have an adverse effect on our business in the event these costs are greater than anticipated
11. 11Fluctuations in fuel costs or reduced supplies of fuel could harm the Company’s business
12. 12The Company is dependent on key personnel. A loss of key personnel could have an adverse effect on the Company’s business which could result in a decline in the Company’s revenues and profitability
13. 13If the Company fails to maintain an effective system of internal controls, the Company may not be able to accurately report financial results or prevent fraud and losses of investor confidence and an adverse impact on our stock price could result
14. 14Labor disputes could disrupt the Company’s ability to serve our customers and/or lead to higher labor costs
15. 15Increases in healthcare, pension and other costs under the Company’s benefit plans could adversely affect our financial condition and results of operations

Risks Related to the Company’s Growth, Acquisitions and Integration

1. 16The Company may not be able to identify or complete transactions with attractive acquisition candidates. Future acquisitions may result in significant transaction expenses, and the Company may experience integration and consolidation risks
2. 17potential unknown liabilities
3. 18The Company may not be able to facilitate our growth strategy by identifying and opening start-up locations, which could limit the Company’s revenues and profitability
4. 19The Company may not be able to successfully or profitably launch our commercial electric vehicle and hydrogen related businesses
5. 20If we determine our goodwill or other intangible assets have become impaired, we may incur impairment charges which would negatively impact our operating results
6. 21The Company’s substantial indebtedness could adversely affect the Company’s financial condition
7. 22limiting the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes
8. 23The Company may not be able to generate sufficient cash flow to service all of the Company’s indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
9. 24The agreements governing credit facilities may restrict the Company’s business and our ability to engage in certain corporate and financial transactions
10. 25transfer and sell assets
11. 26Unfavorable conditions or disruptions in the capital and credit markets may adversely impact business conditions and the availability of credit

Risk Related to Our Series A Preferred Stock and Depositary Shares

1. 27The Series A Preferred Stock and the depositary shares rank junior to all our indebtedness and other liabilities and are effectively junior to all indebtedness and other liabilities of our subsidiaries
2. 28We may not be able to pay dividends on the Series A Preferred Stock if we have insufficient cash or available ‘surplus’ as defined under Delaware law to make such dividend payments
3. 29Our depositary shares representing interests in the Series A Preferred Stock have extremely limited voting rights
4. 30Legal and Regulatory Risks Related to the Company’s Operations
5. 31The Company could be adversely affected by environmental and safety requirements which could force us to use significant capital resources, increase operational costs and/or may subject us to unanticipated liabilities