Alta Equipment Group saw first-quarter sales increase 23.4 percent of 2021 numbers, to $331.7 million. The company said the record sales numbers resulted from “strong demand for equipment and product support growth.” For the quarter, the company reported a net loss of $1.2 million, down from a loss of $5.7 million in Q1 2021.
Revenue from product support grew to $101.6 million for the quarter. Parts sales were $53.4 million, and service revenue was $48.2 million. Compared to Q1 2021, revenue was up 26 percent.
“We are very pleased with our solid start to 2022 and the current momentum in our business,” said Ryan Greenawalt, CEO, in a prepared statement. “We remain extremely focused on operational excellence and as a result, delivered both solid organic and acquisition-related revenue growth. Consistent with our fourth quarter results, our Construction and Material Handling segments continued to benefit from the strong tailwinds in our end-user markets, producing significant year-over-year revenue growth on a combined basis, despite ongoing supply chain issues. Our flexible business model, increased product support revenues driven by higher new and used equipment sales, and expansion into higher margin specialty segments will continue to have a positive impact on future profitability.”
Greenawalt said, in regard to current market condition:
“Customer sentiment, project activity and visibility, remains extremely positive across all our operating markets. Demand for new and used equipment and rental equipment has eclipsed pre-pandemic peak levels. As an example, our organic physical rental fleet utilization was up more than 5 percentage points from a year ago and rates on rental equipment continued to strengthen in the first quarter. We are operating in a fundamentally robust expansion cycle and all the industry indicators are extremely encouraging for the balance of the year. While the timing is uncertain, the recently passed Bipartisan Infrastructure bill should also be an incremental benefit to our business.”
Alta 2022 outlook
“Our 2022 growth strategy remains very much intact, and we have a solid pipeline of M&A opportunities we are evaluating that are consistent with our previous deals,” said Greenawalt. “Our ongoing goal is to expand our presence in existing key markets, add broader high-margin capabilities to new regions and expand into new markets which offer substantial growth opportunities. We have a strong balance sheet to support our expansion initiatives.”
Alta and Nikola
“Lastly, our entrance into the commercial electric vehicle industry and partnership with Nikola is progressing very well,” he said. “While this initiative won’t be a material contributor to our results in 2022, it puts us in an excellent position to be an EV truck market leader in the densest truck markets in the country.”
Source: Alta
