Alta Equipment achieved net sales of $ 268.8 million in the first quarter of 2021, compared to $ 180.5 million in the first quarter of 2020, an increase of 48.9%. Rental income was $ 33.1 million from $ 25.2 million a year ago, an increase of 31.3%. Sales of new and used equipment increased from $ 82.2 million to $ 123.8 million; parts sales jumped from $ 28.7 million to $ 41.4 million and service revenues jumped from $ 30.2 million to $ 38.7 million.
On March 1, Alta Equipment acquired the assets of ScottTech, a provider of turnkey hardware management, warehouse control and warehouse systems integration software. This addition creates synergies with PeakLogix and expands Alta’s capabilities with customers in the warehouse, logistics and e-commerce markets. The company also refinanced its capital structure through the completion of a $ 315 million offering of 5.625% senior secured second notes on April 1, creating a $ 280 million line of credit and reducing the cost of the company’s debt. The move helps provide the financial structure necessary to support the execution of its growth strategy.
“We have seen continuous improvement in our key business drivers as customer demand accelerated in the first quarter,” said Ryan Greenawalt, CEO of Alta. “Vehicle rental fleet utilization and equipment sales volume increased to generate Adjusted EBITDA of $ 22.9 million for the quarter. Our recent capital increase of $ 315 million significantly improves our capital structure and strengthens our ability to pursue our growth strategy in an accretive manner for shareholders. Our financial forecast reflects confidence in our markets and our ability to execute our business plan. We look forward to continuing the momentum of the quarter through the end of 2021 and beyond. “
Alta’s numerous acquisitions have contributed to the growth of the company, as have improved customer demand.
Alta expects to report Adjusted EBITDA of between $ 110 and $ 115 million, net of interest related to new equipment, for the full year 2021. At mid-term, this represents an increase of 35.5 % of $ 83.0 million of Adjusted EBITDA in 2020.
Alta Equipment, based in Livonia, Michigan, is No. 25 on the new RER 100.