LIVONIA—Alta Equipment Group Inc. (NYSE: ALTG), a provider of industrial and construction equipment and services, reported a loss of $35.4 million in 2019, compared to net income of $1.5 million in 2018. Revenue was $244.6 million, up from $181.7 million a year earlier. The reason for the loss, despite higher revenue: a 49 percent jump in general and administrative expenses, to $140.4 million, from $94.3 million in 2018.
The company also saw a $27.9 million loss in the value of warrants, vs. $400,000 a year earlier, and an increase in interest expense to $17.6 million, from $13.2 million a year earlier.
The financial results reflect the twelve months ended December 31, prior to the recent closing of the business combination on Feb. 14 business combination between Alta’s predecessor, Alta Equipment Holdings Inc., and B. Riley Principal Merger Corp., a special purpose acquisition company sponsored by an affiliate of B. Riley Financial Inc., a Los Angeles-based, publicly traded finance firm. The business combination provided net proceeds to Alta of $538 million, through a combination of equity and debt financings, which Alta intends to use to fund its operations.
“Our full year 2019 results underline the strength in our core business and the robust opportunities in our acquisition pipeline,” said Alta CEO Ryan Greenwalt. “During the year we added NITCO, a quality dealer in the New England material handling market as part of our acquisition strategy. The additions of Flagler CE Holdings LLC and Liftech Equipment Companies Inc. in early 2020 provide further scale and end market diversification to our dealer platform and a great opportunity to grow our aftermarket parts sales and service business through geographic expansion. The closing of the business combination marks a significant milestone in Alta’s proud history, strengthens our capital structure to weather the impacts of the COVID-19 pandemic and will ultimately support Alta’s continue growth as an industry leader.”
NITCO, acquired May 1, 2019, had revenue of $126 million for its fiscal year ended Oct. 31, 2018.
To listen to a replay of a conference call discussing these results, visit https://Investors.altaequipment.com, or call (800) 585-8367, or (416) 621-4642, with conference ID # 2375858. Presentation slides are also available at the company website.
Alta sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment and other industrial and construction equipment. Alta has operated as an equipment dealership for 35 years and has developed a branch network that includes 43 total locations across Michigan, Illinois, Indiana, New England, New York and Florida. Alta offers its customers a one-stop-shop for most of their equipment needs by providing sales, parts, service, and rental functions under one roof. More information can be found at www.altaequipment.com.