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Alta Equipment First Quarter Revenue Jumps 23.4 Percent

May 18, 2022
Rental revenue was $37.7 million compared to $33.1 million a year ago, a 13.9-percent increase.
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Alta Equipment posted $331.7 million in first quarter 2022 total revenue compared to $268.8 million in the first quarter of 2022, a 23.4-percent hike. Rental revenue was $37.7 million compared to $33.1 million a year ago, a 13.9-percent increase. New and used equipment sales totaled $151.6 million compared to $123.8 million in the year-ago period, a 22.5-percent jump.

“We remain extremely focused on operational excellence and as a result, delivered both solid organic and acquisition-related revenue growth,” said Ryan Greenawalt, Alta CEO. “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.”

Alta optimistic about the year ahead

Greenawalt is optimistic about the current operating environment.

“Customer sentiment, project activity and visibility, remains extremely positive across all our operating markets,” he said. “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.

“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. 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. Lastly, our entrance into the commercial electric vehicle industry and partnership with Nikola is progressing very well. 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.”

Alta Equipment, Livonia, Mich., is No. 31 on the new RER 100.