First Quarter Financial Highlights:
- Net revenues increased 48.9% year over year to $268.8 million
- Construction and Material Handling revenue of $162.0 million and $106.8 million, respectively
- Gross profit increased to $67.3 million year over year from $47.1 million
- Net loss of ($5.7) million compared to ($17.0) million prior year
- Adjusted EBITDA* grew 38.0% to $22.9 million compared to $16.6 million
Alta Equipment Group Inc. (“Alta” or the “Company”) (NYSE: ALTG), a provider of premium material handling and construction equipment and related services, today announced financial results for the first quarter ended March 31, 2021.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of Alta, said “We experienced continued improvement in our key business drivers as customer demand accelerated in the first quarter. Rental fleet utilization and equipment sales volume increased to drive adjusted EBITDA of $22.9 million for the quarter.”
Mr. Greenawalt added, “Our recent capital raise of $315 million significantly enhances our capital structure and bolsters our ability to pursue our growth strategy in a manner accretive to shareholders. Our financial guidance reflects confidence in our markets and ability to execute on our business plan. We look forward to carrying the momentum of the quarter through the remainder of 2021 and beyond.”
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Three Months Ended March 31, |
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Increase (Decrease) |
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2021 |
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2020 |
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2021 versus 2020 |
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Revenues: |
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New and used equipment sales |
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$ |
123.8 |
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|
$ |
82.2 |
|
|
$ |
41.6 |
|
|
|
50.6 |
% |
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Parts sales |
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|
41.4 |
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|
|
28.7 |
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|
12.7 |
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|
44.3 |
% |
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Service revenue |
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38.7 |
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30.2 |
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|
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8.5 |
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|
|
28.1 |
% |
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Rental revenue |
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33.1 |
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|
|
25.2 |
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|
|
7.9 |
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|
|
31.3 |
% |
|
Rental equipment sales |
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31.8 |
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|
14.2 |
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|
17.6 |
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|
|
123.9 |
% |
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Net revenue |
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$ |
268.8 |
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|
$ |
180.5 |
|
|
$ |
88.3 |
|
|
|
48.9 |
% |
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Cost of revenues: |
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New and used equipment sales |
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106.5 |
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72.4 |
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34.1 |
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|
47.1 |
% |
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Parts sales |
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28.7 |
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19.6 |
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|
9.1 |
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|
|
46.4 |
% |
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Service revenue |
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|
14.5 |
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|
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11.4 |
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3.1 |
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|
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27.2 |
% |
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Rental revenue |
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5.5 |
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4.9 |
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0.6 |
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12.2 |
% |
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Rental depreciation and amortization |
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19.4 |
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12.9 |
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6.5 |
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50.4 |
% |
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Rental equipment sales |
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26.9 |
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12.2 |
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|
|
14.7 |
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|
|
120.5 |
% |
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Cost of revenue |
|
$ |
201.5 |
|
|
$ |
133.4 |
|
|
$ |
68.1 |
|
|
|
51.0 |
% |
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Gross profit |
|
$ |
67.3 |
|
|
$ |
47.1 |
|
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$ |
20.2 |
|
|
|
42.9 |
% |
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Total general and administrative expenses |
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|
66.9 |
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|
|
52.1 |
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$ |
14.8 |
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|
|
28.4 |
% |
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Income (loss) from operations |
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$ |
0.4 |
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|
$ |
(5.0 |
) |
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$ |
5.4 |
|
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(108.0 |
)% |
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Total other income (expense) |
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$ |
(5.6 |
) |
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$ |
(13.1 |
) |
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$ |
7.5 |
|
|
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(57.3 |
)% |
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Loss before taxes |
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$ |
(5.2 |
) |
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$ |
(18.1 |
) |
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|
12.9 |
|
|
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(71.3 |
)% |
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Income tax provision (benefit) |
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|
0.5 |
|
|
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(1.1 |
) |
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|
1.6 |
|
|
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(145.5 |
)% |
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Net loss |
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$ |
(5.7 |
) |
|
$ |
(17.0 |
) |
|
$ |
11.3 |
|
|
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(66.5 |
)% |
Recent Business Highlights:
- On March 1, 2021, Alta acquired the assets of ScottTech, a material handling, warehouse control software, and turnkey warehouse system integration provider. The addition of ScottTech provides synergies with PeakLogix and significantly expands Alta’s capabilities with customers in the warehouse, logistics, and e-commerce markets.
- The company refinanced its capital structure via the completion of an offering of $315 million worth of 5.625% Senior Secured Second Lien Notes on April 1, 2021. The capital raise fully repaid its 9.80% variable rate second lien term loan, created $280 million of credit line availability, and reduced the company’s cost of debt, providing the financial structure to support the execution of its growth strategy.
- Product support revenue, which includes parts and service sales, grew 36.0% year over year in the first quarter of 2021 providing an ongoing higher-margin, recurring revenue stream.
Full Year Financial Guidance:
Alta expects to report Adjusted EBITDA in the range of $110 million to $115 million, net of new equipment floorplan interest, for the full year 2021. At the midpoint, this represents a 35.5% increase over $83.0 million in Adjusted EBITDA in 2020.
Conference Call Information:
Alta will discuss its first quarter 2021 results via live webcast and teleconference today at 5:00 p.m. Eastern Time. A live webcast of the call can be found on the investor relations portion of the company’s website at https://Investors.altaequipment.com. For a live audio teleconference, please dial (844) 543-5487 (domestic), or (825) 312-2330 (international), with conference ID # 8699257 to access the conference call at least five minutes prior to the 5:00 p.m. Eastern Time start time. Once connected with the operator, request access to the Alta Equipment Group First Quarter 2021 Earnings Call.
A live replay of the call will also be available on the investor relations portion of the company’s website at https://Investors.altaequipment.com. An audio replay will be available between 8:00 p.m. Eastern Time, May 13, 2021, and 12:59 p.m. Eastern Time, May 27, 2021 by calling (800) 585-8367, or (416) 621-4642, with conference ID # 8699257.
Additionally, supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website at https://Investors.altaequipment.com.
