Second Quarter Financial Highlights: (comparisons are year over year)
- Total revenues increased 15.2% year over year to $468.4 million
- Construction and Material Handling revenues of $281.5 million and $169.1 million, respectively
- Newly introduced reporting segment, Master Distribution, with revenues of $21.4 million
- Product Support revenues increased 19.1% year over year with Parts Sales increasing to $71.3 million and Service Revenues increasing to $59.7 million
- New and Used Equipment sales grew 17.2% to $254.6 million
- Net income of $1.7 million available to common stockholders compared to $5.4 million in 2022
- Basic and diluted net income per share of $0.05 for 2023 compared to $0.17 in 2022
- Adjusted basic and diluted net income per share* of $0.19 for 2023 compared to $0.26 for 2022
- Adjusted EBITDA* grew 20.5% to $49.9 million, compared to $41.4 million in 2022
- Reaffirmed 2023 Adjusted EBITDA guidance of between $180 to $188 million
LIVONIA, Mich., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Alta Equipment Group Inc. (: ALTG) (“Alta” or the “Company”), a leading provider of premium material handling, construction and environmental processing equipment and related services, today announced financial results for the second quarter ended June 30, 2023.
CEO Comment:
Ryan Greenawalt, Chief Executive Officer of Alta, said, “We delivered record second quarter results and remain positive on our outlook for the balance of this year and into 2024, as demand remains strong in our major end user markets. Our versatile and resilient business model is unique in the industry, as we offer the most expansive product offering and serve a diversified customer base across a vast range of industries. Our focus on driving and sustaining long-term equipment field population continues as we increased our number of factory trained and revenue producing technicians to approximately 1,300 at quarter end.”
Mr. Greenawalt continued, “Equipment supply chain issues continued to improve in the quarter and, as a result, we have invested in fleet and our inventory levels are returning to more normalized, pre-Covid levels, as we ensure equipment availability for our customers to meet their needs. Our ability to take delivery of new equipment from OEMs in the first half of 2023 was the primary driver of the $105.3 million increase in new and used equipment sales when compared to the same period for last year. In terms of our business segments, Construction and Material Handling both delivered solid year-over-year revenues growth and we expect those trends to continue. Our focus on electrification of commercial vehicles, while in its infancy, is beginning to take traction as we generated $3.1 million in revenues during the quarter with our first sale of Nikola’s TRE BEV tractors and complimentary charging units. Customer adoption is ongoing and increasing and we expect additional orders throughout the balance of this year.”
In conclusion, Mr. Greenawalt commented, “The macro trends in our end user markets remain positive and the newly announced federal spending initiatives will further extend the cycle. An estimated $1 trillion in spending is forecast in the IIJA, CHIPS and IRA legislation, and this funding could span more than seven years. In addition, U.S. governmental total transportation contract awards are at all-time highs. State DOT budgets are also at record levels in the Northeast and Southeast where we operate and we expect our end markets and customers to benefit from this spending. Lastly, our acquisition pipeline remains very active with numerous accretive opportunities that complement our existing business and support further geographic expansion.”
Full Year 2023 Financial Guidance:
- The Company maintained its guidance range and expects to report Adjusted EBITDA between $180 million and $188 million.
| CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) | |||||||||||||||||||||||||||||||
| (amounts in millions unless otherwise noted) | |||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Increase (Decrease) | Six Months Ended June 30, | Increase (Decrease) | ||||||||||||||||||||||||||||
| 2023 | 2022 | 2023 versus 2022 | 2023 | 2022 | 2023 versus 2022 | ||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||
| New and used equipment sales | $ | 254.6 | $ | 217.3 | $ | 37.3 | 17.2 | % | $ | 474.2 | $ | 368.9 | $ | 105.3 | 28.5 | % | |||||||||||||||
| Parts sales | 71.3 | 58.3 | 13.0 | 22.3 | % | 139.7 | 111.7 | 28.0 | 25.1 | % | |||||||||||||||||||||
| Service revenues | 59.7 | 51.7 | 8.0 | 15.5 | % | 119.9 | 99.9 | 20.0 | 20.0 | % | |||||||||||||||||||||
| Rental revenues | 49.6 | 43.6 | 6.0 | 13.8 | % | 93.1 | 81.3 | 11.8 | 14.5 | % | |||||||||||||||||||||
| Rental equipment sales | 33.2 | 35.6 | (2.4 | ) | (6.7 | )% | 62.2 | 76.4 | (14.2 | ) | (18.6 | )% | |||||||||||||||||||
| Total revenues | 468.4 | 406.5 | 61.9 | 15.2 | % | 889.1 | 738.2 | 150.9 | 20.4 | % | |||||||||||||||||||||
| Cost of revenues: | |||||||||||||||||||||||||||||||
| New and used equipment sales | 210.3 | 182.2 | 28.1 | 15.4 | % | 389.3 | 306.1 | 83.2 | 27.2 | % | |||||||||||||||||||||
| Parts sales | 47.5 | 40.0 | 7.5 | 18.8 | % | 92.9 | 76.7 | 16.2 | 21.1 | % | |||||||||||||||||||||
| Service revenues | 25.4 | 21.9 | 3.5 | 16.0 | % | 50.5 | 42.0 | 8.5 | 20.2 | % | |||||||||||||||||||||
| Rental revenues | 6.2 | 5.4 | 0.8 | 14.8 | % | 12.3 | 10.8 | 1.5 | 13.9 | % | |||||||||||||||||||||
| Rental depreciation | 27.6 | 23.3 | 4.3 | 18.5 | % | 50.5 | 43.6 | 6.9 | 15.8 | % | |||||||||||||||||||||
| Rental equipment sales | 24.6 | 27.9 | (3.3 | ) | (11.8 | )% | 45.5 | 61.8 | (16.3 | ) | (26.4 | )% | |||||||||||||||||||
| Total cost of revenues | 341.6 | 300.7 | 40.9 | 13.6 | % | 641.0 | 541.0 | 100.0 | 18.5 | % | |||||||||||||||||||||
| Gross profit | 126.8 | 105.8 | 21.0 | 19.8 | % | 248.1 | 197.2 | 50.9 | 25.8 | % | |||||||||||||||||||||
| General and administrative expenses | 105.2 | 88.8 | 16.4 | 18.5 | % | 209.2 | 171.7 | 37.5 | 21.8 | % | |||||||||||||||||||||
| Non-rental depreciation and amortization | 5.4 | 4.0 | 1.4 | 35.0 | % | 10.6 | 7.9 | 2.7 | 34.2 | % | |||||||||||||||||||||
| Total operating expenses | 110.6 | 92.8 | 17.8 | 19.2 | % | 219.8 | 179.6 | 40.2 | 22.4 | % | |||||||||||||||||||||
| Income from operations | 16.2 | 13.0 | 3.2 | 24.6 | % | 28.3 | 17.6 | 10.7 | 60.8 | % | |||||||||||||||||||||
| Other (expense) income: | |||||||||||||||||||||||||||||||
| Interest expense, floor plan payable – new equipment | (1.9 | ) | (0.5 | ) | (1.4 | ) | 280.0 | % | (3.4 | ) | (0.8 | ) | (2.6 | ) | 325.0 | % | |||||||||||||||
| Interest expense – other | (11.8 | ) | (6.3 | ) | (5.5 | ) | 87.3 | % | (22.3 | ) | (12.1 | ) | (10.2 | ) | 84.3 | % | |||||||||||||||
| Other income | 0.2 | 0.4 | (0.2 | ) | (50.0 | )% | 1.2 | 0.7 | 0.5 | 71.4 | % | ||||||||||||||||||||
| Total other expense, net | (13.5 | ) | (6.4 | ) | (7.1 | ) | 110.9 | % | (24.5 | ) | (12.2 | ) | (12.3 | ) | 100.8 | % | |||||||||||||||
| Income before taxes | 2.7 | 6.6 | (3.9 | ) | (59.1 | )% | 3.8 | 5.4 | (1.6 | ) | (29.6 | )% | |||||||||||||||||||
| Income tax provision | 0.3 | 0.5 | (0.2 | ) | (40.0 | )% | 0.4 | 0.5 | (0.1 | ) | (20.0 | )% | |||||||||||||||||||
| Net income | 2.4 | 6.1 | (3.7 | ) | (60.7 | )% | 3.4 | 4.9 | (1.5 | ) | (30.6 | )% | |||||||||||||||||||
| Preferred stock dividends | (0.7 | ) | (0.7 | ) | — | — | (1.5 | ) | (1.5 | ) | — | — | |||||||||||||||||||
| Net income available to common stockholders | $ | 1.7 | $ | 5.4 | $ | (3.7 | ) | (68.5 | )% | $ | |||||||||||||||||||||
