Alta Equipment Co. reported $405 million in third quarter 2022 revenue compared to $295 million in the third quarter of 2021, a 37.3-percent increase. The biggest increase was in new and used equipment sales, where Alta grew from $136.8 million in Q321 to $210.1 million in the recently concluded quarter, a 53.6-percent jump. Rental revenue was $50.2 million compared to $41.7 million in last year’s third quarter, a 20.4-percent hike. Parts sales increased from $44.8 million to $61.8 million, a 37.9-percent gain, while service revenue jumped from $41.9 million to $54.3 million, a 29.6-percent increase.
“Our financial and operational results continue to reflect our unique position in the market and successful growth initiatives,” said Alta CEO Ryan Greenawalt. “Total revenues increased 37.3 percent. As of the end of the third quarter, we have generated $1.1 billion in total revenue, roughly equal to our total revenue for full-year 2021. Our trajectory for adjusted EBITDA also continues to grow, up 39.2 percent versus the year-ago quarter and has nearly surpassed 2021 levels on a year-to-date basis. We also continued to achieve GAAP net income this quarter versus a loss a year ago. Our M&A strategy is proving very successful and is significantly contributing to our accelerated growth. Overall, the third quarter continued to reflect the consistency in our business and the stability in our end-user markets.”
Greenawalt was optimistic about business conditions.
“While certain segments of the economy are slowing, our flexible business model, broad-based market exposure and the breadth of our product portfolio helps protect our business from swings in macro trends as proven by our consistently strong growth thus far this year,” Greenawalt said. “Customer sentiment is an indicator we constantly monitor, and it remains positive for the balance of this year and into 2023. On a longer-term basis, we also remain encouraged as several federal initiatives are likely to positively impact the extension of the cycle including the $550 billion infrastructure bill, and the Chips and Inflation Reduction Acts, which support an intensified effort on manufacturing and renewable projects in the United States.
“As demonstrated by our financial results and recent transactions, our growth strategy remains very much intact, and the pipeline remains robust. On a trailing 12-month basis, our acquisitions since the IPO have added $440.0 million in revenue and a significant amount of EBITDA to the enterprise. Our acquisition of Yale Industrial Trucks Inc., a privately held Yale lift truck dealer with five locations in southeastern Canada, is progressing very well and we have added several new OEMs to expand our product portfolio to further support our customers’ needs. We recently closed our acquisition of Ecoverse Industries, which provides us with the master dealer rights to distribute best-in-class environmental equipment and parts to dealers and customers throughout North America. This immediately positions Alta as an industry leader in the rapidly growing market of eco-friendly waste solutions and material recycling, which we believe represents a significant opportunity for our business.”
Nine-month results strong
For the first nine months of 2022, total revenue for Alta was $1,143.2 million compared to $856.5 million in the first nine months of last year, a 33.5-percent increase. New and used equipment sales were $579 million this year compared to $392.6 million in the first nine months of 2021, a 47.5-percent hike. Rental revenue in the first nine months was $131.5 million compared to $113 million a year ago, a 16.4-percent increase. Parts sales totaled $173.5 million for the first nine months of the year, compared to $130.3 million in the year-ago period, a 33.2-percent gain. Service revenue grew from $123 million in the first nine months of 2021 to $173.5 million this year, a 25.4-percent jump.
On Nov. 1, Alta closed its acquisition of Ecoverse Industries, a full-line distributor of industry-leading environmental processing equipment based in Avon, Ohio, with 15 sub-dealers.
Alta Equipment, based in Livonia, Mich., is No. 20 on the RER 100.
