Alta Equipment Group announces strong First Quarter 2023 financial results and increases adjusted EBITDA guidance for 2023

Posted on May 10, 2023 in Nuts & Bolts

First Quarter Financial Highlights: (comparisons are year over year)

• Total revenues increased 26.8% year over year to $420.7 million
• Construction and Material Handling revenue of $233.1 million and $164.8 million, respectively
• Introduced a separate reporting segment, Master Distribution, with revenue of $26.7 million
• New and Used Equipment sales grew 44.9% to $219.6 million
• Product Support revenue increased 26.6% year over year with Parts Sales increasing to $68.4 million and Service Revenue increasing to $60.2 million
• Net income of $0.2 million available to common stockholders compared to a loss of $(2.0) million in 2022
• Basic and diluted net income per share of $0.01 for 2023 compared to $(0.06) loss in 2022
• Adjusted basic and diluted net income per share* of $0.04 for 2023 compared to a loss of $(0.02) in 2022
• Adjusted EBITDA* grew 36.0% to $40.8 million, compared to $30.0 million in 2022
• Increase full year 2023 Adjusted EBITDA guidance to $180 million to $188 million from the previously announced $177 million to $185 million

Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, today announced financial results for the first quarter ended March 31, 2023.

CEO Comment:

Ryan Greenawalt

Ryan Greenawalt, Chief Executive Officer of Alta, said “Our business is off to a solid start this year, with revenues increasing $89.0 million, or 26.8%, to $420.7 million, which included strong organic growth as well as contributions from our recent acquisitions. All our lines of business performed well and the trends for this year are encouraging. New and used equipment sales increased 44.9%, or $68.0 million, to $219.6 million. Continued strong labor utilization drove product support revenue growth of 26.6%, or $27.0 million, to $128.6 million versus a year ago. Our product support revenue will continue to be a growing recurring revenue stream for our business.”

Mr. Greenawalt continued, “Supply chain headwinds continued to abate during the first quarter as our product inventory increased to a more normalized level, and we were able to deliver more machines to customers as evidenced by the increase in new equipment sales. We are encouraged by the increase in product availability from our manufacturing partners. Backlogs remain high, and we are not experiencing order cancellations from our customers. As it relates to our Construction segment, market fundamentals remain favorable. As we have pointed out previously, we have benefitted from our presence in Florida and demand there remains strong as state DOT funding is forecast to increase nearly 20.0% in fiscal year 2024. As projected, a significant amount of federal and state funding across our footprint will be allocated for major infrastructure projects, aligning well with our product portfolio. Our Material Handling segment, in particular our warehouse systems integration business, also continues to see strong demand as customers seek to automate processes and leverage robotics in their operations.”

In conclusion, Mr. Greenawalt commented, “We are truly excited about our opportunities this year. In 2008, our total revenues were just $61.0 million. When we went public in 2020, total revenues were $874.0 million. Total revenues are now $1.7 billion on a trailing twelve-month basis. We have now completed 14 acquisitions since going public with a total revenue value of $446 million and $53.3 million in adjusted EBITDA. The macro trends in our end user markets support continued growth with the continued investment in infrastructure projects, demand for automated material handling solutions, the increase in nearshoring, and the trend towards electrification of commercial equipment.”

Increased Full Year 2023 Financial Guidance:

• The Company increased full-year 2023 Adjusted EBITDA guidance to $180 million to $188 million from the previously announced $177 million to $185 million.

CONSOLIDATED RESULTS OF OPERATIONS (amounts in millions unless otherwise noted)

Recent Business Highlights:

• The Company’s Board of Directors approved its regular quarterly cash dividend for each of the Company’s issued and outstanding shares of common stock. The common stock dividend was $0.057 per share, or approximately $0.23 per share on an annualized basis. The common stock dividend was paid on February 28, 2023, to shareholders of record as of February 15, 2023.