Alta Equipment Group announces Fourth Quarter and Full Year 2022 financial results and provides adjusted EBITDA guidance for 2023
28990 Wixom Rd.
Wixom, MI 48393
Phone: 248 449-6700
Fax: 248 449-6701
http://www.altaequipment.com
Fourth Quarter Financial Highlights: (comparisons are year over year)
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Total revenues increased 20.3% year over year to $428.6 million
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Construction and Material Handling revenue of $269.0 million and $154.3 million, respectively
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Product Support revenue increased 25.4% year over year with Parts Sales increasing by $13.1 million and Service Revenue increasing by $9.9 million
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Net loss of $(1.5) million available to common stockholders compared to $(1.3) million in 2021
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Basic and diluted net loss per share of $(0.05) compared to $(0.04) in 2021
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Adjusted basic and diluted net income per share* of $0.04 for both 2022 and 2021
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Adjusted EBITDA* grew 15.7% to $42.7 million compared to $36.9 million in 2021
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In December 2022, the Company entered into an agreement to purchase the assets of M&G Materials Handling Co. (“M&G”), a privately held Yale dealer with a presence in Rhode Island. M&G generated approximately $5.8 million in revenue in the trailing twelve months through August 2022. The purchase price is approximately $2.3 million. The deal was closed on March 1, 2023.
2022 Full Year Financial Highlights: (comparisons are year over year)
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Total revenues increased $359.0 million year over year to $1,571.8 million
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Construction and Material Handling revenue of $995.8 million and $570.7 million, respectively
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Product Support revenue increased $97.4 million year over year to $441.4 million
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Net income of $6.3 million available to common stockholders compared to a loss of $(23.4) million in 2021
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Basic and diluted net income per share of $0.20 compared to a loss of $(0.74) in 2021
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Adjusted basic and diluted net income per share* of $0.40 and $0.39, respectively, compared to a loss of $(0.15) in 2021
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Adjusted EBITDA* grew 31.8% to $158.1 million, exceeding guidance, compared to $120.0 million in 2021
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Initiated quarterly Common Stock dividend of $0.057 per share and a $12.5 million share repurchase program
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Completed acquisitions of Ecoverse Industries, LTD (“Ecoverse”) and Yale Industrial Trucks Inc.
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Introduces the full year 2023 Adjusted EBITDA guidance of $177 million to $185 million, representing a 14.5% increase at the midpoint year over year
Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, has announced financial results for the fourth quarter and full year that ended December 31, 2022.
CEO Comment:
Ryan Greenawalt
Ryan Greenawalt, Chief Executive Officer of Alta, said “We believe our performance for the fourth quarter and the full year 2022 demonstrates the strength and resiliency of our business. Despite certain macroeconomic headwinds, all segments of our business are performing well, and we are achieving growth both organically and through our accretive acquisitions. Total revenues for the year increased by 29.6%, or $359.0 million. Organic revenue growth for the year was $193.9 million, or 16.1% when compared to last year. Importantly, this figure was driven by a 13.6% organic increase in our combined parts and service product support departments and a 10.3% organic gain in rental revenues when compared to 2021. Including revenues of $174.9 million from our 2021 and 2022 acquisitions, we achieved record total revenues of $1,571.8 million for 2022.”
In conclusion, Mr. Greenawalt commented, “Given our diverse end-user market exposure and active M&A pipeline, we believe we are well positioned to achieve further growth in 2023. Demand in our Material Handling and Construction Equipment segments continues to be solid and will further benefit from infrastructure and other governmental legislation. As an example, our Florida operations are performing very well amidst the continued growth in non-residential construction projects and significant state spending on highways. We also continue to build our high-margin product support capabilities, which generate predictable, high-margin parts and service revenues. At year-end, we had 1,150 highly skilled service technicians. Additionally, our warehouse systems integration business continues to perform well, and we expect this trend to continue for the foreseeable future as customers embrace robotics and automation. We are also very encouraged by our opportunities with Ecoverse as the market for environmental processing equipment is in its early stages of development in North America. Ecoverse will benefit from stricter federal and state environmental regulations which we expect will put an impetus on increased recycling and reuse of materials throughout both the US and Canada.”
The full Year 2023 Financial Guidance:
- The Company introduced an Adjusted EBITDA guidance between $177 million and $185 million, net of new equipment floorplan interest, for the full year 2023, representing a 14.5% increase at the midpoint year over year.
| Three Months Ended on December 31, | Increase (Decrease) | ||||||||||||||
| 2022 | 2021 (1) | 2022 versus 2021 | |||||||||||||
| Revenues: | |||||||||||||||
| New and used equipment sales | $ | 238.2 | $ | 176.2 | $ | 62.0 | 35.2 | % | |||||||
| Parts sales | 61.3 | 48.2 | 13.1 | 27.2 | % | ||||||||||
| Service revenue | 52.4 | 42.5 | 9.9 | 23.3 | % | ||||||||||
| Rental revenue | 48.6 | 42.5 | 6.1 | 14.4 | % | ||||||||||
| Rental equipment sales | 28.1 | 46.9 | (18.8 | ) | (40.1 | )% | |||||||||
| Total revenues | $ | 428.6 | $ | 356.3 | $ | 72.3 | 20.3 | % | |||||||
| Cost of revenues: | |||||||||||||||
| New and used equipment sales | $ | 200.6 | $ | 144.7 | $ | 55.9 | 38.6 | % | |||||||
| Parts sales | 40.7 | 33.6 | 7.1 | 21.1 | % | ||||||||||
| Service revenue | 24.4 | 20.0 | 4.4 | 22.0 | % | ||||||||||
| Rental revenue | 5.7 | 5.3 | 0.4 | 7.5 | % | ||||||||||
| Rental depreciation | 26.0 | 22.4 | 3.6 | 16.1 | % | ||||||||||
| Rental equipment sales | 20.4 | 41.2 | (20.8 | ) | (50.5 | )% | |||||||||
| Cost of revenues | $ | 317.8 | $ | 267.2 | $ | 50.6 | 18.9 | % | |||||||
| Gross profit | $ | 110.8 | $ | 89.1 | $ | 21.7 | 24.4 | % | |||||||
| General and administrative expenses | $ | 96.4 | $ | 77.6 | $ | 18.8 | 24.2 | % | |||||||
| Depreciation and amortization expense | 4.9 | 3.2 | 1.7 | 53.1 | % | ||||||||||
| Total general and administrative expenses | $ | 101.3 | $ | 80.8 | $ | 20.5 | 25.4 | % | |||||||
| Income from operations | $ | 9.5 | $ | 8.3 | $ | 1.2 | 14.5 | % | |||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, floor plan payable – new equipment | $ | (1.1 | ) | $ | (0.3 | ) | $ | (0.8 | ) | 266.7 | % | ||||
| Interest expense – other | (9.3 | ) | (5.8 | ) | (3.5 | ) | 60.3 | % | |||||||
| Other income | 0.7 | 0.4 | 0.3 | 75.0 | % | ||||||||||
| Total other expense | $ | (9.7 | ) | $ | (5.7 | ) | $ | (4.0 | ) | 70.2 | % | ||||
| (Loss) income before taxes | $ | (0.2 | ) | $ | 2.6 | $ | (2.8 | ) | (107.7 | )% | |||||
| Income tax provision | 0.5 | 3.1 | (2.6 | ) | (83.9 | )% | |||||||||
| Net loss | $ | (0.7 | ) | $ | (0.5 | ) | $ | (0.2 | ) | 40.0 | % | ||||
| Preferred stock dividends | (0.8 | ) | (0.8 | ) | — | — | |||||||||
| Net loss available to common stockholders | $ | (1.5 | ) | $ | (1.3 | ) | $ | (0.2 | ) | 15.4 | % | ||||
(1) Comparative 2021 results have been recast to reflect the adoption of Accounting Standards Codification Topic 842, Leases.
| The year ended December 31, | Increase (Decrease) | ||||||||||||||
| 2022 | 2021 | 2022 versus 2021 | |||||||||||||
| Revenues: | |||||||||||||||
| New and used equipment sales | $ | 817.2 | $ | 568.8 | $ | 248.4 | 43.7 | % | |||||||
| Parts sales | 234.8 | 178.5 | 56.3 | 31.5 | % | ||||||||||
| Service revenue | 206.6 | 165.5 | 41.1 | 24.8 | % | ||||||||||
| Rental revenue | 180.1 | 155.5 | 24.6 | 15.8 | % | ||||||||||
| Rental equipment sales | 133.1 | 144.5 | (11.4 | ) | (7.9 | )% | |||||||||
| Total revenues | $ | 1,571.8 | $ | 1,212.8 | $ | 359.0 | 29.6 | % | |||||||
| Cost of revenues: | |||||||||||||||
| New and used equipment sales | $ | 683.2 | $ | 478.0 | $ | 205.2 | 42.9 | % | |||||||
| Parts sales | 157.4 | 123.4 | 34.0 | 27.6 | % | ||||||||||
| Service revenue | 90.7 | 68.2 | 22.5 | 33.0 | % | ||||||||||
| Rental revenue | 22.4 | 20.6 | 1.8 | 8.7 | % | ||||||||||
| Rental depreciation | 95.5 | 85.3 | 10.2 | 12.0 | % | ||||||||||
| Rental equipment sales | 103.0 | 122.9 | (19.9 | ) | (16.2 | )% | |||||||||
| Cost of revenues | $ | 1,152.2 | $ | 898.4 | $ | 253.8 | 28.3 | % | |||||||
| Gross profit | $ | 419.6 | $ | 314.4 | $ | 105.2 | 33.5 | % | |||||||
| General and administrative expenses | $ | 362.3 | $ | 285.9 | $ | 76.4 | 26.7 | % | |||||||
| Depreciation and amortization expense | 16.5 | 10.5 | 6.0 | 57.1 | % | ||||||||||
| Total general and administrative expenses | $ | 378.8 | $ | 296.4 | $ | 82.4 | 27.8 | % | |||||||
| Income from operations | $ | 40.8 | $ | 18.0 | $ | 22.8 | 126.7 | % | |||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, floor plan payable – new equipment | $ | (2.7 | ) | $ | (1.7 | ) | $ | (1.0 | ) | 58.8 | % | ||||
| Interest expense – other | (29.1 | ) | (22.3 | ) | (6.8 | ) | 30.5 | % | |||||||
| Other income | 1.6 | 0.7 | 0.9 | 128.6 | % | ||||||||||
| Loss on extinguishment of debt | — | (11.9 | ) | 11.9 | (100.0 | )% | |||||||||
| Total other expense | $ | (30.2 | ) | $ | (35.2 | ) | $ | 5.0 | (14.2 | )% | |||||
| Income (loss) before taxes | $ | 10.6 | $ | (17.2 | ) | $ | 27.8 | (161.6 | )% | ||||||
| Income tax provision | 1.3 | 3.6 | (2.3 | ) | (63.9 | )% | |||||||||
| Net income (loss) | $ | 9.3 | $ | (20.8 | ) | $ | 30.1 | (144.7 | )% | ||||||
| Preferred stock dividends | (3.0 | ) | (2.6 | ) | (0.4 | ) | 15.4 | % | |||||||
| Net income (loss) available to common stockholders | $ | 6.3 | $ | (23.4 | ) | $ | 29.7 | (126.9 | )% | ||||||
