References herein to “the Company”, “Alta”, “we”, “our” or “us” mean Alta Equipment Group Inc., and its wholly owned subsidiaries, unless the context requires otherwise.
−Removed: We own and operate one of the largest integrated equipment dealership platforms in the Unites States (“U.S”).
−Removed: Through our branch network, we sell, rent, and provide parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment and other material handling and construction equipment.
+Added: We own and operate one of the largest integrated equipment dealership platforms in the United States (“U.S.”).
+Added: Through our branch network, we sell, rent, and provide parts and service support for several categories of specialized equipment, including lift trucks, heavy and compact earthmoving equipment and other material handling and construction equipment.
We engage in five principal business activities in these equipment categories:
3 unchanged sentences
equipment rentals.
−Removed: We have operated as an equipment dealership for over 35 years and have developed a branch network that includes 54 total locations in Michigan, Illinois, Indiana, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, New York, Virginia and Florida.
+Added: We have operated as an equipment dealership for over 37 years and have developed a branch network that includes 64 total locations in Michigan, Illinois, Indiana, Ohio, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, New York, Virginia and Florida.
We offer our customers a one-stop-shop for most of their equipment needs by providing sales, parts, service, and rental functions under one roof.
−Removed: More recently, with the acquisition of PeakLogix, Inc.
−Removed: (“PeakLogix”) in June 2020, we have entered the automated equipment installation and system integration sector, which we believe has natural synergies with our material handling business and positions us to take advantage of the macroeconomic trend in e-commerce and logistics.
+Added: More recently, with the acquisitions of PeakLogix, Inc.
+Added: (“PeakLogix”) in June 2020 and ScottTech, LLC (“ScottTech”) in March 2021, we have entered the automated equipment installation and system integration sector, which we believe has natural synergies with our material handling business and positions us to take advantage of the macroeconomic trend in e-commerce and logistics.
Within our territories, we are the exclusive distributor of new equipment and replacement parts on behalf of our Original Equipment Manufacturer (“OEM”) partners.
1 unchanged sentence
We are consistently recognized by OEMs as a top dealership partner and have been identified as a nationally recognized Hyster-Yale dealer and multi-year recipient of the Volvo Dealer of the Year award.
+Added: In August 2021 the Company entered into a dealer agreement with Nikola Corporation to become the authorized dealer to sell and service Nikola medium and long-haul class 8 electric vehicle trucks in the New York, New Jersey, eastern Pennsylvania, and New England markets.
We are committed to providing our customers with a best-in-class equipment dealership experience.
1 unchanged sentence
Parts and service are also our most predictable and profitable businesses, with the dealership model structured to drive aftermarket parts and service revenue.
−Removed: Through our new and used equipment sales and our sale of rental fleet, we populate our exclusive territories with serviceable equipment.
+Added: Through our new and used equipment sales and our sale of lightly used rental fleet, we populate our exclusive territories with serviceable equipment.
As the field population ages, we capitalize on aftermarket parts and service sales through the equipment maintenance cycle.
1 unchanged sentence
We expect that acquisition activity to continue, as OEM partners support us as a consolidator by granting us new exclusive territories or by consenting to our acquisition of existing dealers.
−Removed: On May 1, 2019, we successfully acquired Northland Industrial Truck Co., Inc.
−Removed: (“NITCO”) to become the exclusive dealer of Hyster-Yale and JCB equipment in the New England states.
Concurrently with the closing of the business combination on February 14, 2020, we consummated the acquisition of each of Liftech Equipment Companies, Inc.
(“Liftech”) and FlaglerCE Holdings, LLC (“Flagler”).
−Removed: Liftech is the Hyster-Yale and JCB dealer in Upstate New York and Vermont, and Flagler is the Volvo dealer in Florida and portions of Georgia.
−Removed: Since the closing of the business combination, we have consummated acquisitions of certain assets of PeakLogix, Inc.
−Removed: a national material handling systems integrator, Hilo Equipment and Services (“Hilo”) the exclusive Hyster-Yale dealer in New York City, Martin Implement Sales, Inc.
−Removed: (“Martin”) a premium equipment distributor in the Chicago metropolitan area, Howell Tractor and Equipment, LLC (“Howell”) a heavy equipment dealer serving Northern Illinois and Northwest Indiana and Vantage Equipment, LLC (“Vantage”) the Volvo dealer operating in the geographic area of Upstate New York.
+Added: Liftech was the Hyster-Yale and JCB dealer in Upstate New York and Vermont, and Flagler was the Volvo dealer in Florida and portions of Georgia.
+Added: After the closing of the business combination in 2020, we have consummated acquisitions of PeakLogix a national material handling systems integrator, Hilo Equipment and Services (“Hilo”) the exclusive Hyster-Yale dealer in New York City, Martin Implement Sales, Inc.
+Added: (“Martin”) a premium equipment distributor in the Chicago metropolitan area, Howell Tractor and Equipment, LLC (“Howell Tractor”) a heavy equipment dealer serving Northern Illinois and Northwest Indiana and Vantage Equipment, LLC (“Vantage”) the Volvo dealer operating in the geographic area of Upstate New York.
+Added: In 2021, we completed acquisitions of ScottTech, expanding on our warehouse design, automated equipment installation and system integration, Baron Industries (“Baron”) a dock & door business in the northeast which builds out our full-service warehousing and logistics offerings within the material handling segment, Gibson Machinery, LLC (“Gibson”) a premium equipment distributor expanding our construction equipment footprint to Ohio and OEM relationships, Midwest Mine Services, LLC (“Midwest Mine”) an installer of full aggregate processing plants for quarries, mines and recycling
+Added: operations primarily in Michigan and Ohio markets, Ginop Sales, Inc .
+Added: (“ Ginop ”) which expands our Kubota construction and agricultural offerings in N orthern Michigan , and Ambrose Equipment , LLC (“Ambrose”) a premium asphalt equipment dealer in the northeast.
Products and Services
2 unchanged sentences
Our new equipment sales generate customers for our parts sales and service operations, which grow with an expanding equipment field population in our territories .
−Removed: Additionally, with our recent acquisition of PeakLogix, we provide warehouse design and build, automated equipment installation and system integration solutions.
+Added: Additionally, with our recent acquisitions of PeakLogix and ScottTech, we provide warehouse design and build, automated equipment installation and system integration solutions.
Used Equipment Sales.
1 unchanged sentence
Used equipment sales, like new equipment sales, generate parts and services business for us.
−Removed: We are the exclusive distributor of OEM parts in our territories.
+Added: We are the exclusive distributor of OEM parts in substantially all of our territories.
Our in-house parts inventory is extensive, enabling us to provide timely service support to our customers.
7 unchanged sentences
We view our rental fleet as an important component of our one-stop-shop model, and customers rely on our rental equipment when flexing up their fleet capacity for a project or when customer-owned equipment is being serviced.
−Removed: Our rental business also supports our rent-to-sell strategy, in which we sell equipment from our rental fleet to customers who prefer to purchase slightly used equipment.
+Added: Our rental business also supports our rent-to-sell strategy, in which we sell equipment from our rental fleet to customers who prefer to purchase lightly used equipment.
As with new and used equipment sales, the rent-to-sell solution generates parts and service revenue as equipment is sold into our territories.
Industry Background
−Removed: The industry for material handling and construction equipment is driven by a broad range of economic factors and trends, including the ongoing transition of consumer preferences toward online retail and the associated warehousing and logistics requirements, residential, non-residential and infrastructure related construction trends, and general construction and industrial machinery demand.
+Added: The industry for material handling and construction equipment is driven by a broad range of economic factors and trends, including the ongoing transition of consumer preferences toward online retail and the associated warehousing and logistics requirements, residential, non-residential and infrastructure related construction trends, manufacturing and distribution, and general construction and material handling machinery demand.
In addition, regional factors have an impact, particularly where equipment dealerships have territorial exclusivity with OEM partners.
1 unchanged sentence
We believe this gives us a competitive advantage over our single channel competitors and traditional equipment rental houses, which may have difficulty expanding due to the infrastructure, training, and relationships necessary to support a growing population of equipment in a designated territory and that typically have limited parts and service offerings.
−Removed: OEMs have pushed for consolidation in their dealership networks, and we believe that we will remain one of the few natural consolidators in our industry.
+Added: OEMs have pushed for consolidation in their dealership networks, and we believe that we are one of the few natural consolidators in our industry.
We are one of a very limited number of public equipment dealerships, and we believe that our public profile will be a significant advantage when sourcing and competing for acquisition targets.
6 unchanged sentences
Our integrated equipment sales, service, and rental platform provide a one-stop-shop for a highly diverse group of customers, enabling us to profitably grow our revenue throughout the years.
−Removed: With our 54 dealership locations, we believe that we are the leading provider of material handling and construction equipment and aftermarket parts and service support in our territories.
+Added: With our over 60 dealership locations, we believe that our scale will help us be the leading provider of material handling and construction equipment and aftermarket parts and service support in each of our territories.
Superior Parts and Services Operations Supporting Customer Relationships.
1 unchanged sentence
Our parts and service capabilities support customers in maximizing equipment uptime, which we believe is a key consideration when an equipment customer is making a selection among competing product offerings.
−Removed: The aftermarket parts and service businesses provide us with a predictable, high-margin revenue source that is relatively insulated from the typical business cycle.
+Added: T he aftermarket parts and service businesses provide us with a predictable, high-margin revenue source that is relatively insulated from the typical business cycle.
Ability to Attract and Retain Skilled Technical Employees.
6 unchanged sentences
dealer for over 30 nationally recognized material handling and heavy construction OEMs, including Hyster-Yale, Volvo, and JCB.
−Removed: Our primary dealer agreements grant us exclusivity for new equipment and replacement part sales in our territories.
+Added: Our primary dealer agreements grant us exclusivity for new equipment, replacement part sales, and diagnostic service software in our territories.
The OEM relationships also promote our acquisition strategy, as the OEMs prefer to partner with fewer, financially stronger dealerships and view us as a prominent consolidator.
7 unchanged sentences
Industry relationships provide a meaningful portion of our acquisition pipeline, as dealership owners frequently approach our management team to discuss a sale to us.
−Removed: Additionally, our senior leadership team is experienced in managing our business throughout the business cycle, which is critical in navigating the COVID-19 pandemic.
+Added: Additionally, our senior leadership team is experienced in managing our business throughout the business cycle, which has been critical in navigating the COVID-19 pandemic.
Business Strategy
2 unchanged sentences
We actively populate our territories with new and used equipment, which generates predictable, high-margin parts and service revenue.
−Removed: For example, we followed the strategy developed in Michigan when we expanded into the Chicago construction equipment market in 2018, growing the field population of equipment through our new, used, and rent-to-sell sales channels upon market entry.
+Added: For example, we followed the strategy developed in Michigan when we expanded into the Chicago and Florida construction equipment market in 2018 and 2020, respectively, growing the field population of equipment through our new, used, and rent-to-sell sales channels upon market entry.
As a result, we expect future benefits from increasing aftermarket parts and service revenue driven by the equipment maintenance cycle.
2 unchanged sentences
Critically, our partnerships with technical schools and community colleges provide consistent access to new technicians.
−Removed: For example, we provide floor space and equipment at our Detroit location to the Detroit Training Center (“DTC”), a vocational school for skilled trades.
+Added: For example, we provide floor space at our Detroit location to the Detroit Training Center, a vocational school for skilled trades.
In addition, we regularly hire mechanics away from independent rental or service businesses in our markets, where a lack of access to OEM parts and diagnostic tools make servicing increasingly sophisticated equipment difficult.
−Removed: Additionally, we have been successful hiring skilled technicians from other industries, such as automotive industry.
+Added: Additionally, we have been successful in hiring skilled technicians from other industries, such as the automotive industry.
We intend to replicate this strategy as we acquire additional dealership territories.
8 unchanged sentences
In selecting additional territories for acquisition, we prioritize geographically contiguous markets that can be improved by our systems and processes and/or markets with a high density of equipment users.
+Added: Pursue Synergistic Verticals .
+Added: With our existing expertise in sales and service of electro-mobility, we pursue strategic opportunities to leverage our knowledge to meet the growing demand for electric vehicles and deliver world-class service to electric vehicle customers within our existing territories.
Through our predecessor companies, we have been in the equipment sales, service, and rental business for approximately 37 years.
2 unchanged sentences
We were originally owned and operated by Steven Greenawalt, current Chief Executive Officer Ryan Greenawalt’s father.
−Removed: Ryan Greenawalt returned to the Company in a senior management capacity in 2008, following professional experience in financial
+Added: Ryan Greenawalt returned to the Company in a senior management capacity in 2008, following professional experience in financial services.
Under Ryan Greenawalt’s leadership, we broadened our material handling offering, expanded into construction equipment distribution, and launched an acquisition strategy that has resulted in over 25 successful transactions.
2 unchanged sentences
(formerly known as B.
−Removed: Riley Principal Merger Corp.), consummated a reverse recapitalization pursuant to which the Company acquired of Alta Equipment Holdings, Inc.
+Added: Riley Principal Merger Corp.), consummated a reverse recapitalization pursuant to which the Company acquired all of Alta Equipment Holdings, Inc.
(“Alta Holdings”), pursuant to the agreement and plan of merger between the Company, BR Canyon Merger Sub Corp.
9 unchanged sentences
NITCO has provided the platform for continued expansion, particularly in material handling in the Northeast.
−Removed: During 2020, our acquisitions of Liftech and Flagler enhanced our presence in Upstate New York, Vermont, Florida and portions of Georgia.
+Added: During 2020, our acquisitions of Liftech and Flagler enhanced our presence in Upstate New York, Vermont, and Florida.
With the acquisition of PeakLogix, we entered the warehouse design, automated equipment installation and system integration sector, which is consistent with the growth strategy in our material handling segment and expands our geographic footprint.
3 unchanged sentences
Our acquisition of Vantage further expanded our geographic footprint with Volvo in Upstate New York.
−Removed: We serve customers in our territories in Michigan, Illinois, Indiana, Massachusetts, Maine, Connecticut, New Hampshire, New York, Florida, Georgia, Vermont, Rhode Island, and Virginia.
+Added: During 2021, our acquisition of ScottTech expanded our warehouse design, automated equipment installation and system integration capabilities in our material handling segment.
+Added: Our acquisition of Baron expands our commercial overhead loading dock doors and equipment in New England and is another step in the Company’s strategy to build out a full-service warehousing and logistics offering within the material handling segment.
+Added: The acquisition of Gibson added a premium equipment distributor in our construction segment and expanded our footprint and presence into Ohio.
+Added: The Midwest Mine acquisition expands our engineering and design services in the aggregate processing industry and strengthens our presence in the Michigan and Ohio markets in the construction equipment segment.
+Added: The Ginop acquisition expands our relationship and product offerings with Kubota and strengthens our construction and agricultural equipment offerings in Northern Michigan.
+Added: The acquisition of Ambrose enhances our road construction equipment product and services portfolio in the New England region.
+Added: We serve customers in our territories in Michigan, Illinois, Indiana, Ohio, Massachusetts, Maine, Connecticut, New Hampshire, New York, Florida, Georgia, Vermont, Rhode Island, and Virginia.
Our primary customer end markets include diversified manufacturing, food and beverage, wholesale/retail, construction, automotive, municipal/government, and medical.
Our customers vary from small, single machine owners to large construction contractors and leading multi-national commercial companies.
−Removed: In 2020, no single customer accounted for more than 1% of our total revenues.
+Added: no single customer accounted for more than 2% of our total revenues.
Our top ten customers combined accounted for approximately 7% of our total revenues in 2021 .
9 unchanged sentences
We have commission-based compensation programs for our sales forces.
−Removed: We provide extensive training, including frequent factory and in-house training by OEM representatives regarding the operational features to further develop our sales team’s knowledge and experience.
+Added: We provide extensive training, including frequent factory and in-house training by OEM representatives regarding the operational features of our equipment to further develop our sales team’s knowledge and experience.
This training is essential, as our sales personnel regularly call on customers’ job sites and facilities, often assisting customers in assessing their immediate and ongoing equipment needs.
1 unchanged sentence
e-Emphasys was designed for heavy equipment dealerships and was expanded to include our broad product portfolio, including material handling.
−Removed: We believe that this comprehensive customer and sales tool enhances our
−Removed: territory management by increasing the productivity of our sales teams and by tracking equipment service history to advance our customer support goals.
−Removed: While our specialized, well-trained sales force strengthens our customer relationships and fosters customer loyalty, we also promote our business through marketing and advertising, including industry publications, direct mail campaigns, television and radio and our website at www.altaequipment.com.
+Added: We believe that this comprehensive customer and sales tool enhances our territory management by increasing the productivity of our sales teams and by tracking equipment service history to advance our customer support goals.
+Added: While our specialized, well-trained sales force strengthens our customer relationships and fosters customer loyalty, we also promote our business through marketing and advertising, including industry publications, digital marketing, direct mail campaigns, television and radio and our website at www.altaequipment.com.
The information contained on such websites is not a part of this Annual Report on Form 10-K and is not deemed incorporated by reference into this Annual report on Form 10-K or any other public filing made with the SEC.
1 unchanged sentence
We purchased approximately 35% of our new equipment, rental fleet, and replacement parts from two major OEMs (Hyster-Yale and Volvo) during the year ended December 31, 2021.
−Removed: Notably, we are the exclusive OEM replacement part distributor within our territories, allowing us to provide superior service support to our customers from an aftermarket perspective.
+Added: Notably, we are the exclusive OEM replacement part distributor in substantially all of our territories, allowing us to provide superior service support to our customers from an aftermarket perspective.
Information Technology Systems
8 unchanged sentences
Our customer relationship management system provides sales and customer information, available rental fleet and inventory information, a quote system and other organizational tools to assist our sales forces.
−Removed: We maintain an extensive customer database which allows us to monitor the status and maintenance history of our customers’ owned equipment and enables us to more effectively provide parts and services to meet their needs.
+Added: We maintain an extensive customer database which allows us to monitor the status and maintenance history of our customers’ owned equipment and enables us to more effectively
+Added: provide parts and services to meet their needs.
Our critical systems run on servers and other equipment that is current technology and is readily available from reputable suppliers and serviceable through existing maintenance agreements.
3 unchanged sentences
The OEMs pay us for repairs we perform on equipment under warranty in our territories.
−Removed: The demand for our construction rental equipment tends to be less in the winter months, and equipment rental performance will generally correlate to the levels of current construction activities, so the severity of weather conditions can have an impact, especially in our Northern territories.
+Added: The demand for our construction equipment tends to be lower in the winter months, and equipment rental performance will generally correlate to the levels of current construction activities, so the severity of weather conditions can have an impact on our business, especially in our Northern territories.
Parts and services activities are less affected by changes in demand caused by seasonality, especially in our material handling segment, and are highly predictable based on historical maintenance and service trends as equipment ages.
4 unchanged sentences
Competition among equipment dealers, whether they offer material handling or construction equipment or both, is primarily based on customer service, including repair and maintenance service provided by the dealer, reputation of the OEM and dealer, quality and design of the products, and price.
−Removed: In our experience, reliability and up-time are the key considerations for customers in selecting material handling and construction equipment, and we believe that our focus on parts and service support has helped us win and
−Removed: maintain customer business.
−Removed: In contrast, price is not typically a customer’s key point of differentiation in selecting among competing equipment, as OEM partners often provide pricing flexibility in order to drive market share.
−Removed: Within our territories, we are the exclusive distributor of new equipment and replacement parts on behalf of our OEM partners.
+Added: In our experience, reliability and up-time are the key considerations for customers in selecting a material handling and construction equipment dealer, and we believe that our focus on parts and service support has helped us win and maintain customer business.
+Added: In contrast, price is not typically a customer’s key point of differentiation in selecting among competing equipment, as OEM partners often provide pricing flexibility and discounting in order to drive market share.
+Added: Within substantially all of our territories, we are the exclusive distributor of new equipment and replacement parts on behalf of our OEM partners.
+Added: This exclusivity affords us effectively no competition from others when selling these brands in our territories.
We and our regional subsidiaries enjoy long-standing relationships with the leading material handling and construction equipment OEMs, including Hyster-Yale, Volvo, and JCB, among more than 30 others.
10 unchanged sentences
As of December 31, 2021, we had approximately 2,250 employees.
−Removed: Of these employees, 950 are hourly and salaried corporate and administrative personnel, and 900 are skilled technicians paid on an hourly basis.
+Added: Of these employees, approximately 1,000 are skilled technicians paid on an hourly basis and the remainder are hourly and salaried corporate, sales, operating, and administrative personnel.
A collective bargaining agreement relating to 24 of our locations covers approximately 475 of our employees.
11 unchanged sentences
In late March 2020, in compliance with the directives of government authorities in the state and local geographic areas in which we have operations, we adjusted our operations to permit virtually all of our sales and back-office employees to work remotely.
−Removed: In the late second quarter of 2020, we began phasing in a return to more normalized working conditions as state or local governments began lifting restrictions.
+Added: Late in the second quarter of 2020, we began phasing in a return to more normalized working conditions as state and local governments began lifting restrictions.
Despite the lifting of certain restrictions, Alta continues to adhere to government issued guidelines and promote a clean and safe environment in all of its branch locations.
−Removed: Certain non-revenue producing business functions have continued to work via remote work arrangements which have been designed to allow for the continued operation of our business while allowing employees to work virtually.
+Added: As circumstances warrant, certain non-revenue producing business functions have continued to work via remote or hybrid work arrangements which have been designed to allow for the continued operation of our business while allowing employees to work virtually.
Talent Development and Employee Training
5 unchanged sentences
We are committed to providing competitive compensation and benefits programs for our employees, as we believe competitive compensation arrangements are core to an engaged and productive employee base.
−Removed: We believe our compensation programs align individual compensation with indiv idual and team contributions to both our culture and our performance results.
+Added: We believe our compensation programs align both individual and team contributions to promoting our culture and driving our performance.
Legal Proceedings
12 unchanged sentences
The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
+Added: The Company lost its Emerging Growth Company status as of December 31, 2021 as we achieved $1.2 billion in revenues for the fiscal year ended December 31, 2021.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.