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    Alta Equipment Boosts Net Revenue 48.9 Percent in First Quarter

    May 15, 2021
    Rental revenue was $33.1 compared to $25.2 million a year ago, a 31.3-percent hike.

    Alta Equipment posted net revenue of $268.8 million in the first quarter of 2021 compared to $180.5 million in the first quarter of 2020, a 48.9-percent increase. Rental revenue was $33.1 compared to $25.2 million a year ago, a 31.3-percent hike. New and used equipment sales increased from $82.2 million to $123.8 million; parts sales jumped from $28.7 million to $41.4 million and service revenue leapt from $30.2 million to $38.7 million.

    On March 1, Alta Equipment acquired the assets of ScottTech, a material handling, warehouse control software and turnkey warehouse system integration provider. The addition provides synergies with PeakLogix and expands Alta’s capabilities with customers in the warehouse, logistics and e-commerce markets. The company also refinanced its capital structure via the completion of an offering of $315 million worth of 5.625-percent senior secured second lien notes on April 1, creating $280 million of credit line availability and reducing the company’s cost of debt. The move helps provide the financial structure to support the execution of its growth strategy.

    “We experienced continued improvement in our key business drivers as customer demand accelerated in the first quarter,” said Ryan Greenawalt, Alta CEO. “Rental fleet utilization and equipment sales volume increased to drive adjusted EBITDA of $22.9 million for the quarter. 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.”

    Alta’s numerous acquisitions helped drive the company’s increase as did improved customer demand.

    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-percent increase compared to $83.0 million in Adjusted EBITDA in 2020.

    Alta Equipment, based in Livonia, Mich., is No. 25 on the new RER 100.