Alta Equipment Group Grows Revenues 29.6 Percent in 2022
Alta Equipment Group posted total revenue in the fourth quarter of 2022 of $428.6 million, the company announced, compared to $356.3 million in the fourth quarter of 2021, a 20.3-percent increase. Rental revenue in the fourth quarter of 2022 was $48.6 million compared to $42.5 million a year ago, a 14.4-percent jump.
“We believe our performance for the fourth quarter and the full year 2022 demonstrates the strength and resiliency of our business,” said Ryan Greenawalt, Alta CEO. “Despite certain macroeconomic headwinds, all segments of our business are performing well, and we are achieving growth both organically and through our accretive acquisitions. Total revenues for the year increased 29.6 percent or $359 million. Organic revenue growth for the year was $193.9 million, or 16.1 percent, when compared to last year. Importantly, this figure was driven by a 13.6-percent organic increase in our combined parts and service product support departments and a 10.3-percent organic gain in rental revenues when compared to 2021. Including revenues of $174.9 million from our 2021 and 2022 acquisitions, we achieved record total revenues of $1,571.8 million for 2022.
“Given our diverse end-user market exposure and active M&A pipeline, we believe we are well-positioned to achieve further growth in 2023. Demand in our Material Handling and Construction Equipment segments continue to be solid and will further benefit from infrastructure and other governmental legislation. As an example, our Florida operations are performing very well amidst the continued growth in non-residential construction projects and significant state spending on highways. We also continue to build our high-margin product support capabilities, which generates predictable, high-margin parts and service revenues. At year end, we had 1,150 highly skilled service technicians. Additionally, our warehouse systems-integration business continues to perform well, and we expect this trend to continue for the foreseeable future as customers embrace robotics and automation. We are also very encouraged with our opportunities with Ecoverse as the market for environmental processing equipment is in its early stages of development in North America. Ecoverse will benefit from stricter federal and state environmental regulations, which we expect will put an impetus on increased recycling and reuse of materials throughout both the U.S. and Canada.”
For the full year, Alta Equipment reported $1,571.8 million in total revenue compared to $1,212.8 million in 2021, a 29.6 percent increase. Rental revenue for the year was $180.1 million, compared to $155.5 million in 2021, a 15.8-percent hike.
Alta Equipment is headquartered in Livonia, Mich., and is No. 20 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.