Alta Equipment Group Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. Total revenues for the three months decreased to $448.8 million, down 3.7% from $466.2 million in the same period of 2023. However, for the nine months, revenues increased to $1,378.5 million, a rise of 1.7% from $1,355.3 million in 2023.

The decline in quarterly revenues was primarily driven by a significant drop in new and used equipment sales, which fell to $219.8 million from $253.6 million, a decrease of 13.3%. Conversely, parts sales increased to $75.6 million from $69.5 million, and service revenues rose to $64.6 million from $60.6 million. Rental revenues slightly decreased to $53.7 million from $54.0 million.

Gross profit for the third quarter was $124.6 million, a slight decline from $126.1 million in 2023, while gross profit margins improved to 27.8%, up 80 basis points year-over-year. However, income from operations dropped significantly to $6.8 million, down 51.1% from $13.9 million in the prior year. The company reported a net loss of $(27.7) million for the quarter, a stark contrast to the net income of $7.4 million in 2023.

For the nine-month period, net loss was $(51.5) million, compared to a net income of $10.8 million in the same period last year. The net loss available to common stockholders for the nine months was $(53.7) million, down from net income of $8.6 million in 2023.

The company’s balance sheet showed total assets of $1,549.1 million as of September 30, 2024, a decrease from $1,570.9 million at the end of 2023. Long-term debt increased significantly to $478.7 million from $312.3 million, while total stockholders’ equity fell to $95.7 million from $149.7 million.

Strategically, Alta Equipment Group has focused on acquisitions to enhance its market position, completing acquisitions of Ault and Burris in late 2023. The company is also investing in a hydrogen production plant, expected to be operational in the first half of 2025, as part of its strategy to expand into the commercial electric vehicle market.

The company’s cash position decreased to $14.6 million from $31.0 million at the end of 2023, reflecting the challenges faced in the current market environment. Despite these challenges, Alta continues to emphasize its commitment to service and reliability, which are seen as key competitive advantages in the equipment dealership sector.