Alta Equipment Revenues Jump 21.7 Percent in Fourth Quarter
Alta Equipment posted $521.5 million in fourth quarter 2023 total revenue compared to $428.6 million in the fourth quarter of 2022, a 21.7-percent increase. Rental revenues were $55.3 million compared to $48.6 million a year ago, a 13.8-percent increase. Parts sales jumped 12.7 percent, service revenues increased 16 percent and sales of rental equipment bumped up 35.9 percent. Equipment sales increased 25.1 percent.
For the full year of 2023, total revenues were $1,876.8 million compared to $1,571.8 million in 2022, a 19.4-percent year-over-year hike. Rental revenues totaled $202.4 million compared to $180.1 million, a 12.4-percent climb.
“The momentum in our business continued throughout the balance of 2023 and as a result, we delivered solid financial and operating results for the fourth quarter and 2023 fiscal year,” said Ryan Greenawalt, Alta CEO. “Total revenues grew 21.7 percent to $521.5 million for the fourth quarter and increased 19.4 percent to $1.9 billion for the year. Our business continues to benefit from the broad-based strength in our major end-user markets. For the year, revenues from our Construction Equipment segment grew 12.9 percent to $1.1 billion while Material Handling revenues increased 19.4 percent to $681.5 million. As a result, our high-margin parts and service business revenue increased 17.7 percent to $519.6 million. One of our key priorities remains providing our customers with best-in-class support to keep their fleets and job sites running with as little down time as possible. Thus, we continued to expand our field service population, ending the year with more than 1,300 skilled technicians, which represents nearly half of our 3,000 employees. Overall, we achieved record results in 2023.
“Our diversified growth strategy continues to prove very successful. During the year, we achieved organic revenues growth of 12.3 percent by increasing our market share, expanding our product portfolio, investing in rental fleet and entering new territories. The 16 acquisitions we have completed since going public in 2020 are also major contributors to our success, providing $537 million in revenues and $65 million in adjusted EBITDA. We are continuing to pursue accretive acquisitions opportunities which would further expand the scale and scope of product offerings for our customers. Of course, our success would not be possible without the solid execution by our dedicated team at Alta.”
Greenawalt expressed optimism about the company’s prospects for 2024.
“Our outlook for 2024 is positive as industry indicators support our expectations for continued growth this year. Non-residential construction starts are forecast to increase compared to 2023. The material handling industry is forecasting another year of strong lift truck deliveries that is likely to resemble, if not exceed, the record year of lift truck deliveries in 2023. Additionally, state DOT 2024 fiscal year budgets are more than 10 percent higher than last year. And importantly, the sentiment from our customers is consistent with strength we experienced in 2023. Finally, we are very focused on continued growth and operating leverage in 2024 with the end goal of improving shareholder value.”
