Equipment dealer Alta Equipment Group posted rental revenue of $43.6 million in the second quarter compared to $38.2 million in the second quarter of 2021, a 14.1-percent increase. New and used equipment sales totaled $217.3 million in the quarter compared to $132 million in the second quarter of 2021, a 64.6-percent hike. Total revenue for Q222 was $406.5 million compared to $292.7 million in the year-ago quarter, a 38.9-percent year-over-year jump.
For the first six months of 2022, Alta Equipment reported $81.3 million in rental revenue, compared to $71.3 million in the first six months of 2021, a 14-percent hike. New and used equipment sales totaled $368.9 million compared to $255.8 million in the first six months of 2021, a 44.2-percent jump. Total revenue for the first half of the year was $738.2 million compared to $561.5 million in last year’s first half, a 31.5-percent increase.
“As a result of the ongoing strong demand in our end-user markets, solid execution, flexible business model and the positive contributions from our growth initiatives, we delivered record results for the second quarter,” said Ryan Greenawalt, Alta Equipment Co. CEO. “Total revenues increased 38.9 percent, or $113.8 million, to $406.5 million and adjusted EBITDA also increased significantly from a year ago. We also achieved $5.4 million of GAAP net income for the quarter. We are seeing significant strength in our Construction segment and our Material Handling business is also performing well. As a result of our performance in the second quarter and our visibility going forward, we have raised our adjusted EBITDA guidance for the year.”
A robust market outlook
In addressing Alta’s market outlook, Greenawalt said, “Despite the headline economic news, concerns about a recession, our business indicators remain robust for our end-user markets. Project activity across all our regions remain solid and our industry’s business cycle remains in growth mode. Our large level of new equipment sales for the quarter is indicative of pent-up demand for equipment that continues to manifest itself in historic levels of equipment sales backlogs. Our parts and service revenue lines are benefiting from an aging field population as we provide customers with best-in-class skilled technicians to keep their business operations up and running. We believe the finalization of the infrastructure bill will be an incremental benefit to our business in 2023 and beyond.
“We have effectively executed our growth strategy over the past two years and our second quarter results reflect that success. On a trailing 12-month basis, our acquisitions since the IPO have added $376 million in revenue and $42.4 million in adjusted EBITDA to the enterprise. After quarter end we entered into a definitive agreement to acquire Yale Industrial Trucks, a privately held Yale lift truck dealer with five locations in southeastern Canada. The YIT deal is very consistent with our strategy to increase the scale of our business and will establish a presence for Alta in an international market for the first time. Our balance sheet is very solid and will support further acquisition activity as well as our new capital allocation policy, which includes paying a regular quarterly dividend and a share repurchase program.”
YIT generated approximately $46.6 million in revenue and adjusted EBITDA of $9.4 million in the trailing 12 months through May 2022. The implied enterprise value of the acquisition is estimated to be approximately $33.5 million, subject to post-closing purchase price adjustments.
Based in Livonia, Mich., Alta Equipment Group is No. 20 on the RER 100.