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Mar 31, 2020
Alta Q1 2020 Earnings Report
Alta Equipment Group Inc. reported financial results for Q1 2020, demonstrating revenue growth and strategic response to COVID-19.
Key Takeaways
Alta Equipment Group Inc. reported a 76% year-over-year increase in net revenues to $180.5 million for the first quarter of 2020. Despite a net loss of $17 million, the company's Adjusted EBITDA reached $18.8 million, reflecting the strength of its business model and the contributions of recent acquisitions.
Net revenues increased by 76% year-over-year, reaching $180.5 million.
Gross profit increased to $47.1 million from $27.5 million.
Adjusted EBITDA for Q1 2020 was $18.8 million.
The company took immediate actions to reduce costs and manage operations in response to COVID-19.
Alta
Alta
Forward Guidance
Alta believes it has ample liquidity and a strong capital structure to effectively navigate current business conditions and emerge stronger as the economy recovers.
Positive Outlook
- Experienced leaders took swift action to service customers.
- Reduced costs and efficiently manage operations.
- Ample liquidity and a strong capital structure.
- Confident in the resilience of the business model.
- Immediate actions implemented will allow the company to emerge stronger as the economy begins to open and recover.
Challenges Ahead
- Temporary elimination of certain non-essential spending.
- Temporarily reduced executive and senior level compensation.
- Combination of workforce reductions and furloughs.
- Net loss of $17 million primarily due to debt extinguishment and transaction costs related to business combination.
- Adjusting its business and operations in response to the COVID-19 pandemic.