57% jump for Alta Equipment
US based crane, aerial lift and construction equipment distributor Alta Equipment saw revenues soar last year due to acquisitions.
The company has reported 12 months revenues of $837.6 million, up 56.7 percent. This was made up by new equipment sales increasing 68 percent to $410.3 million, parts sales jumping 76 percent to $82.7 million, service revenues improving 150 percent to $92.7 million, while rental revenues quadrupled to $95.2 million. Sales from the fleet dipped marginally to $42.2 million.
The business made a pre-tax loss of $30.6 million, just slightly lower than last year’s loss of $35.4 million. The company says this was due to “costs incurred in connection with reverse recapitalisation and acquisitions, debt extinguishment and share based incentives.”
Alta completed seven acquisitions during the year and added a number of new lines, including the Tadano, Demag and Mantis ranges in February - see: Alta to distribute Tadano
In the fourth quarter total sales were 65.5 percent higher at $280.4 million, with a 74.3 percent jump in new equipment sales to $135.1 million. Parts sales increased 64.3 percent, services were 34.4 percent higher, rental revenues were 25 percent higher and sales from the fleet more than doubled. The net result was a pre-tax loss of $6.4 million, $600,000 higher than for the same quarter in 2019.
Chief executive Ryan Greenawalt said: “Our strong fourth quarter operating performance and financial results capped off an incredibly successful year for Alta. In the fourth quarter, we saw continued improvement in our material handling and construction businesses as our recovery from the pandemic continues to take hold. Labour utilisation improved over the third quarter and the demand for rental equipment rebounded."
"In looking at the full year, we were able to persevere in a difficult and unprecedented time through the dexterity of our business model and operational discipline. We were also able to complete seven accretive acquisitions that increased our existing market presence, expanded our product lines and OEM relationships, and complemented our organic growth.”
“We are encouraged by the positive trends in customer demand. We have re-branded our material handling business and added new services that will enable us to uniquely serve the fast growing warehousing and logistics end markets. We believe the investments we made in technology, products, and people, combined with structural tailwinds in infrastructure and e-commerce, position us well to deliver increased financial results in 2021.”
Alta Equipment was founded in 1984 and operates from 39 full service locations with more than 400 mobile service vans covering the states of Michigan, Illinois, Indiana, New England, New York, Virginia and Florida. In addition to Link-Belt and Tadano it represents Genie aerial lifts and telehandlers, Merlo, Gehl and Sennebogen material handlers. Its most recently acquisitions include Vantage
No matter how you look at it this is a remarkable performance from Alta, albeit fueled entirely by acquisitions. Now it needs to consolidate them in order to reduce costs, while exploiting the greater market coverage from the seven acquisitions. The real test will be 2021.