According to the Q2 report of Alta Equipment, a US agent, net income in 2020 is US$191 million, an increase of US$55 million compared to 2019, an increase of 41% year-on-year. In the Q2 quarter, industrial and construction revenues were US$95 million and US$97 million, respectively.
It is understood that Alta was founded in 1984 and is headquartered in Livonia, Michigan, USA. It completed the acquisition of B. Riley Principal Merger Corp. and went public in February 2020. It owns and operates a comprehensive equipment distribution platform in the United States. Mainly engaged in Volvo Construction Equipment, Hyster-Yale (Hyster-Yale) Group, JCB product lines, and completed the acquisition of Florida Volvo dealer Flagler (Flagler) in February.
In the subsequent release, Alta highlighted three other acquisitions: PeakLogix, HILO Equipment&Services, Martin Implement Sales.
According to CEO Ryan Greenawalt analysis, more mergers and acquisitions may occur in the future. In fact, the epidemic may also be an opportunity for some sellers. "We will continue to explore together with important OEM partners to seek more opportunities, and we expect to have further mergers and acquisitions before the end of this year."
Alta reported that despite the severe challenges of the new crown epidemic, the demand for material handling, construction equipment and services continues to rise as the quarter changes. Greenawalt said: "When we enter the second half of 2020, we are already operating at full capacity, reaching the state before the new crown epidemic."
Alta’s CFO, Tony Colucci, said on an analyst conference call: “Alta’s personnel labor hours have been restored to the original 95%-100%.” This is very beneficial to the company’s high-margin sales. And it can reunite all skilled workers who are on vacation.
Colucci also introduced the company's "rental and agency sales" strategy, investing in leased machines and selling them within two to three years. In the long run, this will drive parts and service revenue. Especially in Florida, Colucci called it the company's ‘exciting market growth point’. "We are invincible in the Florida market and have increased the number of technicians by 20% locally." Greenwalt added.
The three acquisitions that Alta highlighted in the release:
1. PeakLogix is a national material handling system company specializing in warehouse automation and storage systems.
2. HILO Equipment & Services, a material handling equipment distributor, has three branches in New York City. HILO owns Hyster-Yale, Kelley and JLG.
3. Martin Implement Sales is a distributor of construction and agricultural equipment in New Holland, Kubota, Hyundai and Toro. It has three branches in Chicago.
Alta currently has 48 offices in Michigan, Illinois, Indiana, New England, New York, Florida and Virginia.
