Fourth Quarter 2020 Financial Highlights
- Net revenues increased 65.5% year over year to $280.4 million
- Construction and Material Handling revenue of $151.5 million and $128.9 million, respectively
- Gross profit increased 54.1% year over year to $64.4 million
- Net loss of $(3.2) million
- Adjusted EBITDA* grew 27.5% to $24.6 million compared to $19.3 million last year
- Completed two acquisitions solidifying presence in New York State and Midwest construction markets
2020 Full Year Financial Highlights
- Net revenues increased 56.7% year over year to $873.6 million
- Construction and Material Handling revenue of $440.0 million and $433.6 million, respectively
- Gross profit increased 41.0% year over year to $214.5 million
- Net loss of $(24.0) million; $22.6 million of costs incurred in connection with reverse recapitalization and acquisitions, debt extinguishment and share based incentives
- Adjusted EBITDA* increased 20.8% to $83.0 million compared to $68.7 million last year
- Completed seven acquisitions to expand the geographic footprint and increase presence in existing markets
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 fourth quarter and full-year ended December 31, 2020. Note that Alta’s “Material Handling” segment was previously reported as the “Industrial” segment.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of Alta, said “Our strong fourth-quarter operating performance and financial results capped off an incredibly successful year for Alta. In the fourth quarter, we saw continued improvement in our Material Handling and Construction businesses as our recovery from the pandemic continues to take hold. Labor utilization improved over the third quarter and the demand for rental equipment rebounded. In looking at the full year, we were able to persevere in a difficult and unprecedented time through the dexterity of our business model and operational discipline. We were also able to complete seven accretive acquisitions that increased our existing market presence, expanded our product lines and OEM relationships, and complemented our organic growth.”
Mr. Greenawalt continued, “We’re encouraged by the positive trends in customer demand. We’ve re-branded our Material Handling business and added new services that will enable us to uniquely serve the fast-growing warehousing and logistics end markets. We believe the investments we made in technology, products, and people, combined with structural tailwinds in infrastructure and e-commerce, position us well to deliver increased financial results in 2021.”
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Three months ended December 31, |
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Increase (Decrease) 2020 versus 2019 |
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Years ended December 31, |
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Increase (Decrease) 2020 versus 2019 |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenues: |
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New and used equipment sales |
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$ |
135.1 |
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$ |
77.5 |
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$ |
57.6 |
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74.3 |
% |
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$ |
410.3 |
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$ |
244.6 |
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$ |
165.7 |
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67.7 |
% |
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Parts sales |
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37.3 |
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22.7 |
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14.6 |
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64.3 |
% |
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129.6 |
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82.7 |
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46.9 |
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56.7 |
% |
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Service revenue |
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34.4 |
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25.5 |
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8.9 |
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34.9 |
% |
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128.5 |
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92.7 |
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35.8 |
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38.6 |
% |
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Rental revenue |
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35.4 |
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28.3 |
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7.1 |
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25.1 |
% |
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118.8 |
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95.2 |
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23.6 |
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24.8 |
% |
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Rental equipment sales |
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38.2 |
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15.4 |
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22.8 |
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148.1 |
% |
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86.4 |
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42.2 |
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44.2 |
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104.7 |
% |
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Net revenue |
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$ |
280.4 |
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$ |
169.4 |
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$ |
111.0 |
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65.5 |
% |
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$ |
873.6 |
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$ |
557.4 |
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$ |
316.2 |
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56.7 |
% |
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Cost of revenues: |
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New and used equipment sales |
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116.1 |
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68.8 |
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47.3 |
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68.7 |
% |
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356.4 |
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215.4 |
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141.0 |
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65.5 |
% |
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Parts sales |
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25.8 |
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14.7 |
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11.1 |
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75.5 |
% |
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89.1 |
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54.1 |
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35.0 |
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64.7 |
% |
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Service revenue |
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13.6 |
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10.3 |
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3.3 |
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32.0 |
% |
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49.5 |
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34.6 |
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14.9 |
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43.1 |
% |
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Rental revenue |
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5.4 |
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6.1 |
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(0.7 |
) |
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-11.5 |
% |
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20.2 |
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17.5 |
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2.7 |
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15.4 |
% |
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Rental depreciation and amortization |
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21.3 |
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14.4 |
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6.9 |
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47.9 |
% |
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68.4 |
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47.3 |
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21.1 |
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44.6 |
% |
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Rental equipment sales |
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33.8 |
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13.3 |
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20.5 |
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154.1 |
% |
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75.5 |
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36.4 |
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39.1 |
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107.4 |
% |
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Cost of revenue |
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$ |
216.0 |
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$ |
127.6 |
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$ |
88.4 |
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69.3 |
% |
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$ |
659.1 |
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$ |
405.3 |
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$ |
253.8 |
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62.6 |
% |
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Gross profit |
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$ |
64.4 |
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$ |
41.8 |
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$ |
22.6 |
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54.1 |
% |
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$ |
214.5 |
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$ |
152.1 |
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$ |
62.4 |
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41.0 |
% |
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Total general and administrative expenses |
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64.9 |
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43.0 |
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21.9 |
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50.9 |
% |
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222.6 |
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140.4 |
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82.2 |
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58.5 |
% |
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(Loss) income from operations |
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$ |
(0.5 |
) |
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$ |
(1.2 |
) |
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$ |
0.7 |
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(58.3 |
)% |
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$ |
(8.1 |
) |
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$ |
11.7 |
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$ |
(19.8 |
) |
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(169.2 |
)% |
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Total other income (expense) |
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$ |
(5.9 |
) |
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$ |
(4.6 |
) |
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$ |
(1.3 |
) |
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28.3 |
% |
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$ |
(22.5 |
) |
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$ |
(47.1 |
) |
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$ |
24.6 |
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(52.2 |
)% |
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Loss before taxes |
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$ |
(6.4 |
) |
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$ |
(5.8 |
) |
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$ |
(0.6 |
) |
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10.3 |
% |
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$ |
(30.6 |
) |
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$ |
(35.4 |
) |
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$ |
4.8 |
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(13.6 |
)% |
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Income tax benefit |
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(3.2 |
) |
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— |
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(3.2 |
) |
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NA |
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(6.6 |
) |
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— |
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(6.6 |
) |
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NA |
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Net loss |
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$ |
(3.2 |
) |
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$ |
(5.8 |
) |
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$ |
2.6 |
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(44.8 |
)% |
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$ |
(24.0 |
) |
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$ |
(35.4 |
) |
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$ |
11.4 |
|
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(32.2 |
)% |
Fourth Quarter and Recent Business Highlights:
- The Company completed the acquisition of the construction dealership assets of Vantage Equipment, LLC on December 31, 2020. Vantage Equipment is a construction equipment dealer operating in Batavia, Syracuse, and Albany, New York. The addition of Vantage strengthens Alta’s presence in New York state and complements Liftech which serves the Upstate New York material handling market.
- On October 30, 2020, Alta completed the acquisition of Howell Tractor and Equipment, LLC, a heavy construction equipment dealer serving Northern Illinois and Northwest Indiana.
- For the full year, product support revenue, represented by parts and service revenues, grew 47.1% over the prior year providing Alta with a steady flow of high margin recurring revenue.
- The Company continued to add skilled service technicians during the second half of the year and ended 2020 with approximately 900 technicians, around a 40% increase over the prior year.
Acquisition Activity in 2020:
- Alta completed a total of seven acquisitions across the Material Handling and Construction businesses in 2020 that were consistent with the Company’s growth strategy of further penetrating existing markets, expanding its geographic footprint, and increasing its product lines and OEM relationships.
Additionally, supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website at https://Investors.altaequipment.com.
