Alta Equipment posted net revenue of $292.7 million in the second quarter compared to $192.1 million in the second quarter of 2020, a 52.4-percent increase. Rental revenue was $38.2 million in the quarter compared to $26 million a year ago, a 46.9-percent increase. New and used equipment sales jumped 38.8 percent from $95.1 million in Q220 to $132 million this year.
Parts sales were $44.1 million compared to $28.1 million a year ago, a 56.9-percent hike. Service revenue jumped from $28.4 million to $42.4 million a 49.3-percent increase.
“Our second quarter performance reflects a positive operating environment across the material handling and construction markets we serve,” said Ryan Greenawalt, Alta CEO. “The constrained supply chain affecting our manufacturing partners has driven demand for higher margin product support offerings and greater rental utilization. Tightened supply has further elevated equipment pricing across the industry and provides unique opportunities to strategically sell rental fleet, satisfy customer demand for equipment, and achieve field population targets traditionally designated for new equipment installs. We believe our performance in the second quarter further validates our ability to adapt quickly and efficiently to a variety of market conditions, which has led to healthy year over year and sequential adjusted EBITDA growth.
“The strength of our first half results, coupled with a record backlog in our Construction and Material Handling businesses, position us well to meet our full year growth objectives and deliver value to shareholders.”
During the quarter, Alta completed the full integration of prior acquisitions – Flagler Construction Equipment, Liftech Equipment, and Hilo Equipment & Services -- onto the company’s ERP system, now having fully integrated six of its eight acquisitions since 2019. The integration will provide for efficiencies relative to operating a single source of information and gives management improved, real-time visibility into these business units.
On April 1, Alta refinanced its capital structure via completion of a $315 million second lien debt offering and amended its credit agreements with Alta’s senior lending group. Among other benefits, the refinance immediately improved the company’s liquidity position, reduced its incremental cost of capital, and eliminated certain restrictive covenants to support the execution of its growth strategy.
For the first six months of the year, net revenue was $561.5 million compared to $372.6 million for the first six months of 2020, a 50.7-percent increase. Rental revenue climbed from $51.2 million in the first six months of 2020 to $71.3 million for the first half of this year, a 39.3-percent leap.
Alta Equipment, headquartered in Livonia, Mich., is No. 25 on the RER 100.