First Quarter Financial Highlights: (comparisons are year over year)
- Net revenues increased 23.4% year over year to $331.7 million
- Construction and Material Handling revenue of $206.1 million and $125.6 million, respectively
- Product Support revenue increased $21.5 million YoY to $101.6 million
- Record first-quarter financial results primarily due to strong demand for equipment and product support growth
- Net loss of $(2.0) million available to common shareholders compared to a loss of $(5.7) million in 2021
- Adjusted basic and diluted net loss per share* of $(0.02) compared to $(0.14) in 2021
- Adjusted EBITDA* grew 30.4% to $30.0 million, compared to $23.0 million in 2021
Alta Equipment Group Inc. (“Alta” or the “Company”), a provider of premium material handling and construction equipment and related services, today announced financial results for the first quarter ended March 31, 2022.
Ryan Greenawalt, Chief Executive Officer of Alta, said, “We are very pleased with our solid start to 2022 and the current momentum in our business. Total revenues increased 23.4%, or $62.9 million, to$331.7 million in the first quarter from a year ago. We remain extremely focused on operational excellence and as a result, delivered both solid organic and acquisition-related revenue growth. Consistent with our fourth-quarter results, our Construction and Material Handling segments continued to benefit from the strong tailwinds in our end-user markets, producing significant year-over-year revenue growth on a combined basis, despite ongoing supply chain issues. Our flexible business model and increased product support revenues were driven by higher new and used equipment sales, and expansion into higher-margin specialty segments will continue to have a positive impact on future profitability.”
Discussing the current market environment, Mr. Greenawalt noted, “Customer sentiment, project activity, and visibility, remain extremely positive across all our operating markets. Demand for new and used equipment and rental equipment has eclipsed pre-pandemic peak levels. As an example, our organic physical rental fleet utilization was up more than 5 percentage points from a year ago and rates on rental equipment continued to strengthen in the first quarter. We are operating in a fundamentally robust expansion cycle and all the industry indicators are extremely encouraging for the balance of the year. While the timing is uncertain, the recently passed Bipartisan Infrastructure bill should also be an incremental benefit to our business.”
Mr. Greenawalt, concluded, “Our 2022 growth strategy remains very much intact, and we have a solid pipeline of M&A opportunities we are evaluating that are consistent with our previous deals. Our ongoing goal is to expand our presence in existing key markets, add broader high-margin capabilities to new regions and expand into new markets which offer substantial growth opportunities. We have a strong balance sheet to support our expansion initiatives. Lastly, our entrance into the commercial electric vehicle industry and partnership with Nikola is progressing very well. While this initiative won’t be a material contributor to our results in 2022, it puts us in an excellent position to be an EV truck market leader in the densest truck markets in the country.”
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Three Months Ended |
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March 31, |
Increase (Decrease) |
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2022 |
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2021 |
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2022 versus 2021 |
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Revenues: |
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New and used equipment sales |
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$ |
151.6 |
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$ |
123.8 |
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$ |
27.8 |
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22.5 |
% |
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Parts sales |
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53.4 |
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41.4 |
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12.0 |
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29.0 |
% |
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Service revenue |
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48.2 |
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38.7 |
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9.5 |
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24.5 |
% |
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Rental revenue |
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37.7 |
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33.1 |
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4.6 |
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13.9 |
% |
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Rental equipment sales |
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40.8 |
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31.8 |
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9.0 |
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28.3 |
% |
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Net revenues |
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$ |
331.7 |
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$ |
268.8 |
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$ |
62.9 |
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23.4 |
% |
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Cost of revenues: |
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New and used equipment sales |
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$ |
123.9 |
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$ |
106.5 |
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$ |
17.4 |
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16.3 |
% |
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Parts sales |
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36.7 |
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28.7 |
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8.0 |
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27.9 |
% |
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Service revenue |
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20.1 |
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14.5 |
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5.6 |
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38.6 |
% |
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Rental revenue |
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5.4 |
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5.5 |
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(0.1 |
) |
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(1.8 |
)% |
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Rental depreciation |
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20.3 |
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19.4 |
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0.9 |
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4.6 |
% |
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Rental equipment sales |
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33.9 |
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26.9 |
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7.0 |
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26.0 |
% |
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Cost of revenues |
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$ |
240.3 |
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$ |
201.5 |
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$ |
38.8 |
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19.3 |
% |
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Gross profit |
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$ |
91.4 |
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$ |
67.3 |
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$ |
24.1 |
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35.8 |
% |
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General and administrative expenses |
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$ |
82.9 |
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$ |
64.8 |
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$ |
18.1 |
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27.9 |
% |
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Depreciation and amortization expense |
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3.9 |
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2.0 |
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1.9 |
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95.0 |
% |
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Total general and administrative expenses |
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$ |
86.8 |
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$ |
66.8 |
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$ |
20.0 |
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29.9 |
% |
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Income from operations |
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$ |
4.6 |
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$ |
0.5 |
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$ |
4.1 |
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820.0 |
% |
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Other (expense) income: |
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Interest expense, floor plan payable – new equipment |
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$ |
(0.3 |
) |
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$ |
(0.5 |
) |
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$ |
0.2 |
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(40.0 |
)% |
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Interest expense – other |
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(5.8 |
) |
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(5.3 |
) |
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(0.5 |
) |
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9.4 |
% |
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Other income |
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0.3 |
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0.1 |
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0.2 |
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200.0 |
% |
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Total other expense |
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$ |
(5.8 |
) |
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$ |
(5.7 |
) |
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$ |
(0.1 |
) |
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1.8 |
% |
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Loss before taxes |
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$ |
(1.2 |
) |
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$ |
(5.2 |
) |
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$ |
4.0 |
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(76.9 |
)% |
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Income tax provision |
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— |
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0.5 |
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(0.5 |
) |
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(100.0 |
)% |
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Net loss |
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$ |
(1.2 |
) |
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$ |
(5.7 |
) |
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$ |
4.5 |
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(78.9 |
)% |
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Preferred stock dividends |
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(0.8 |
) |
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— |
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(0.8 |
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100% |
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Net loss available to common shareholders |
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$ |
(2.0 |
) |
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$ |
(5.7 |
) |
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$ |
3.7 |
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(64.9 |
)% |
Recent Business Highlights:
- The Company was awarded the Nikola Arizona sales and service territory.
The full Year 2022 Financial Guidance:
- The Company maintained its guidance range and expects to report Adjusted EBITDA between $137 million and $142 million, net of new equipment floorplan interest, for the full year of 2022.
Conference Call Information:
Alta management will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss and answer questions about the Company’s first-quarter financial results. Additionally, supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website at https://Investors.altaequipment.com.
