Alta Equipment Group new- and used- equipment sales revenue grew year over year as the company equipment dealer continues organic growth and acquisitions amid high demand.
Alta Equipment’s first-quarter new- and used- equipment sales clocked in at $219.6 million, up 44.9% YoY, according to the company’s Wednesday earnings release. Rental revenue for Q1 landed at $43.5 million, up 15.4% YoY. The company’s total Q1 revenue was $420.7 million, up 26.8% YoY, with the company’s organic revenue of $358.3 million, up 16.2% YoY, and acquisition revenue of $35.4 million.
“On a year-over-year comparison, we outperform just about every key metric,” Tony Colucci, Alta Equipment’s chief financial officer, said during Wednesday’s earnings call. “With equipment supply chain issues abating, we are seeing a more normalized environment in terms of equipment deliveries, and having the additional equipment supply in the face of a strong demand backdrop is refreshing for our customers and our sales teams.”
Livonia, Mich.-based Alta Equipment Group is engaged in the sale, service and rental of material handling, construction and environmental processing equipment, according to filings with the Securities and Exchange Commission. The company operates 71 locations across the United States and Canada, including two M&G Materials Handling locations acquired on March 1.
Master distribution segment joins material handling, construction
As part of the company’s Q1 earnings, Alta Equipment added master distribution to its breakout segments alongside material handling and construction. Master distribution contributed $26.7 million in revenues, which follows acquisition of Ecoverse Industries environmental processing equipment in Q4. New- and used- equipment sales represent $23.5 million of the company’s master distribution revenue for Q1, while rental revenue represents $200,000.
“We believe strongly in the capital efficiency and return on investment profile of the master distribution business model, and Ecoverse proved us right in their first quarter as part of Alta Equipment Group,” Colucci said. “Ecoverse, which was acquired in Q4, is the first business unit in our asset-light master distribution segment.”
Material handling revenue jumped 31.2% YoY to $164.8 million, up from $125.6 million a year ago. Material handling new- and used-equipment sales represented $87.5 million in revenue, up 30.8% YoY, while rental revenue was $18 million, up 40.6% YoY.
“In the material handling segment, long-term trends towards warehouse and logistical automation persist and Alta’s well positioned for this growth opportunity,” Ryan Greenawalt, chief executive officer at Alta Equipment, said during the earnings call. “We estimate that we cover over 20% of the North American lift truck market with our exclusive rights dealership business and covering North America and beyond through PeakLogix and the affiliated material handling products.”
Construction segment revenue clocked in at $233.1 million, up 13.1% YoY from $206.1 million, according to the company’s Q1 earnings release. New- and used- construction equipment sales revenue was $112.1 million, up 32.3% YoY, while rental revenue was $25.3 million, up 1.6% YoY.