Alta Equipment Group’s Net Revenues Rise 41.4% in Q2/20
AUG 17, 2020 - 7:13 am
Alta Equipment Group, a provider of industrial and construction equipment and related services, reported that net revenues in Q2/20 increased to $192.1 million in Q2/20, which marked a 41.4% year-over-year increase compared with the $135.9 million recorded in Q2/19. Gross profit increased as well, rising to $46.3 million compared with $38.6 million, marking a 19.9% increase. Alta also reported adjusted EBITDA of $19.9 million in Q2/20 compared with $16.7 million during the same period in 2019.
Alta recorded industrial and construction revenues of $95.1 million and $97.0 million, respectively, during the quarter and a net loss of $4.1 million versus net income of $0.4 million last year.
“Our solid second quarter results, despite the COVID-19 related challenges, demonstrate the dexterity of our cost structure and the capital efficiency of our parts and services businesses,” Ryan Greenawalt, CEO of Alta, said. “We saw signs of stability and higher demand for both our material handling and construction equipment and services as the quarter progressed. We entered the second half of the year at close to full capacity and are operating at pre-COVID-19 levels.
“Additionally, we recently announced three accretive acquisitions that are perfectly aligned with our strategy to complement our organic growth with acquisitions that increase our existing market presence, expand our geographic footprint, provide a greater presence in the fast growing e-commerce, warehousing and logistics markets, and broaden our OEM relationships.”
Virtually all of Alta’s sales and back office operations employees began working remotely in mid-March in order to reduce the spread of COVID-19. Broadly, as the company was deemed “essential” by state and local governments, its facilities were able to remain open, albeit at reduced capacity during the beginning of the second quarter. As of June 30, 2020, all of the company’s branches were fully operational although some of its administrative employees continued to work remotely.
To mitigate the impact of reduced revenues, Alta implemented various cost savings measures in Q2/20. According to Alta, these cost savings measures were temporary in nature and were minimized as increased demand for products and services returned toward the end of the quarter.
Alta also made three acquisitions during the quarter, including PeakLogix, HILO Equipment & Services and Martin Implement Sales. PeakLogix is a material handling systems integrator. HILO is a distributor of material handling equipment. Martin Implement Sales is an equipment distributor.
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