Financial Performance - Full year 2023 revenue reached $1865 million, a 19% increase compared to 2022[10] - Adjusted Gross Profit for 2023 was $625 million, up 13% from 2022[10] - Adjusted EBITDA for 2023 totaled $427 million, a 9% increase year-over-year[6, 10] - Q4 2023 revenue was $522 million, marking a record quarterly revenue[11] Business Segments - Equipment Rental Solutions (ERS) revenue increased by 10% compared to 2022[10] - Truck & Equipment Sales (TES) revenue increased significantly by 29% compared to 2022[10] - Aftermarket Parts & Service (APS) revenue saw a 5% increase compared to 2022[10] - TES new sales backlog stands at $689 million, representing just over 8 months of production[22] Market Dynamics and Outlook - The company anticipates revenue between $2 billion and $218 billion for 2024, representing growth of 7% to 17%[70] - Adjusted EBITDA is projected to be between $440 million and $470 million in 2024, indicating growth of 3% to 10%[70] - The company's fleet OEC (Original Equipment Cost) is $146 billion[8]

KANSAS CITY, Mo.--(BUSINESS WIRE)--Custom Truck One Source, Inc. (NYSE: CTOS), a leading provider of specialty equipment to the electric utility, telecom, rail, and other infrastructure-related end markets, today reported financial results for the fourth quarter and full year ended December 31, 2023. CTOS Fourth-Quarter and Full-Year Highlights Total quarterly revenue of $521.8 million and annual revenue of $1,865.1 million, as a result of continued strong demand across our end markets Quarterly gross ...

Financial Performance - For the year ended December 31, 2023, total revenue for the Equipment Rental Solutions (ERS) segment increased to $990,425,000 from $770,195,000 in 2022, representing a growth of 28.5%[201]. - Gross profit for the ERS segment rose to $172,786,000 in 2023, up from $122,510,000 in 2022, reflecting a significant increase driven by higher rental revenues and equipment sales[200]. - Total revenue for the Aftermarket Parts and Services (APS) segment also increased in 2023, driven by growth in demand for parts, tools, and accessories sales, as well as increased rentals in the Parts, Tools, and Accessories division[203]. - Adjusted EBITDA for the year ended December 31, 2023, was $426,930,000, an increase of 8.6% from $392,978,000 in 2022[212]. - Net income for the year ended December 31, 2023, was $50,712,000, representing a 30.3% increase from $38,905,000 in 2022[212]. - Total revenue for 2023 reached $1,865,100,000, a 18.5% increase from $1,573,086,000 in 2022[296]. - Rental revenue increased to $478,910,000 in 2023, up from $464,039,000 in 2022, reflecting a growth of 1.9%[296]. - Equipment sales surged to $1,253,453,000, a 27.6% increase compared to $982,341,000 in 2022[296]. - Gross profit for 2023 was $454,260,000, representing a 18.4% increase from $383,748,000 in 2022[296]. - Operating income improved to $170,948,000 in 2023, compared to $103,308,000 in 2022, marking a 65.3% increase[296]. - Net income for 2023 was $50,712,000, up from $38,905,000 in 2022, indicating a growth of 30.1%[296]. Cash Flow and Liquidity - Net cash used in operating activities was $30.9 million for the year ended December 31, 2023, compared to $45.968 million provided in 2022[218]. - Net cash used in investing activities was $176.6 million for the year ended December 31, 2023, a decrease from $218.9 million in 2022[248]. - Net cash provided by financing activities increased to $202.9 million in 2023 from $153.9 million in 2022, primarily due to an increase in borrowings under revolving credit facilities[249]. - As of December 31, 2023, the company had cash and cash equivalents of $10.3 million, down from $14.4 million in 2022[237]. - The company reported a Net Leverage Ratio of 3.53 as of December 31, 2023, slightly up from 3.51 in 2022[214]. - The company has floor plan payables of $662.3 million as of December 31, 2023, which are collateralized by inventory[216]. - Future contractual cash requirements include minimum operating lease obligations of $8.8 million and debt principal and interest payments totaling $109.8 million[215]. - The company’s net debt increased to $1.507 billion as of December 31, 2023, from $1.380 billion in 2022[214]. - The total cash requirements for notes payable and loans are $8.0 million short-term and $1.509 billion long-term as of December 31, 2023[245]. Market and Growth Opportunities - The company estimates the addressable market to be approximately $65 billion, with segments including $20.4 billion in new sales, $23.2 billion in aftermarket parts and services, and $21.4 billion in rental and used sales[205]. - The company plans to capitalize on favorable trends across a large addressable market, particularly in fragmented industries, to increase market share[205]. - The company aims to increase penetration of aftermarket parts and services through expanded product offerings and enhanced service capabilities[206]. - The company operates in three reporting segments: Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services[344]. Assets and Liabilities - As of December 31, 2023, the company's total assets amounted to $3,367.8 million, an increase from $2,938.2 million in 2022, reflecting a growth of approximately 14.6%[273]. - The company's goodwill was reported at $704.0 million, with $498.8 million assigned to the Equipment Rental Solutions (ERS) reporting unit and $37.9 million to the Aftermarket Parts and Services (APS) reporting unit[269]. - The company's current assets totaled $1,265.9 million, significantly up from $868.2 million in the previous year, indicating a growth of approximately 45.7%[273]. - The total long-term liabilities increased to $1,553.2 million from $1,414.9 million, reflecting a rise of about 9.8%[273]. - The company's accounts receivable, net, rose to $215.1 million from $193.1 million, marking an increase of approximately 11.4%[273]. - The rental equipment, net, was valued at $916.7 million, slightly up from $883.7 million, indicating a growth of about 3.7%[273]. Interest and Debt Management - The company reported a 24.2% increase in interest expense, rising to $94,694,000 in 2023 from $76,265,000 in 2022[212]. - Interest paid increased to $122.868 million in 2023 from $81.177 million in 2022, representing a 51% increase[300]. - The company has $1,214.7 million in aggregate principal amount of variable rate debt as of December 31, 2023, with interest rate changes impacting future net income and cash flows[383]. - Each one-eighth percentage point increase or decrease in applicable interest rates would change the company's interest expense by approximately $1.5 million on an annual basis[383]. Operational Insights - The company’s operating model and variable cost structure enable it to sustain high margins and strong cash flow generation throughout various economic cycles[198]. - The company is engaged in providing a range of services and products through rentals and sales of specialty equipment, aftermarket parts, and related services[371]. - The rental fleet comprised more than 10,300 units as of December 31, 2023, supporting diverse customer needs across multiple end-markets[304]. - The rental fleet comprised more than 10,300 units with an average unit age of approximately 3.5 years[332]. Regulatory and Compliance - The company is subject to complex laws and regulations, including environmental and safety regulations that can adversely affect costs[330]. - The company established a Code of Conduct to ensure employees understand the commitment to operate honestly and ethically[365]. Social Responsibility - In 2023, the company provided 20 paid internship opportunities to students from various vocational high school and university programs[364].

Custom Truck One Source, Inc. Reports Record Results for Full-Year 2023 • Total quarterly revenue of $521.8 million and annual revenue of $1,865.1 million, as a result of continued strong demand across our end markets • Quarterly gross profit of $126.8 million, a decrease of $1.5 million, or 1.2%, compared to $128.3 million for fourth quarter 2022 and annual gross profit of $454.3 million, an increase of $70.5 million, or 18.4%, compared to $383.7 million for 2022 • Adjusted gross profit increased 1.2% to $ ...

KANSAS CITY, Mo.--(BUSINESS WIRE)--Load King and Custom Truck One Source, Inc. (NYSE: CTOS) are proud to announce their participation in the upcoming NTEA Work Truck Week, taking place from March 5-8, 2024, at the Indiana Convention Center, Indianapolis, Indiana. This premier industry show serves as a platform for participating companies to exhibit their latest advancements in electric vehicle and hybrid technology. Attendees are invited to visit Booth 4101 to explore a range of pioneering equipment design ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $434 million, representing a 21% increase compared to Q3 2022 [31][122] - Adjusted gross profit was $150 million, up 14% year-over-year, resulting in an adjusted gross margin of over 34% [31][122] - Adjusted EBITDA reached $100 million, a 9% improvement compared to Q3 of last year [31][122] - Net income for the quarter was $9.2 million, marking the fourth consecutive quarter of positive net income [14] Business Line Data and Key Metrics Changes - The ERS segment reported rental revenue of $115 million, a 3% increase versus Q3 2022, with used equipment sales at $52 million, up almost 41% year-over-year [117] - TES segment revenues were $231 million, up 33% from Q3 2022, with gross profit increasing by more than 46% [16][34] - APS business posted revenue of $36 million, up 4% versus Q3 of last year, with an adjusted gross profit margin of 28% [41] Market Data and Key Metrics Changes - Average utilization for the rental fleet was just under 79%, with a sequential improvement to over 81% by the end of Q3 [9][38] - Backlog ended the quarter at $779 million, a 10% increase compared to the previous year [34][40] - Year-to-date, realized rental rates on core products were up 7% compared to the same period in 2022 [15] Company Strategy and Development Direction - The company continues to focus on optimizing production capacity and service footprint to meet customer expectations [11] - Strategic investments in the rental fleet are ongoing, with a reduction in fleet age to 3.5 years, believed to be the youngest in the industry [10][59] - The company is increasing its projected total revenue guidance range to $1.765 billion to $1.87 billion, affirming adjusted EBITDA guidance of $425 million to $445 million [19][36] Management's Comments on Operating Environment and Future Outlook - Management noted that while there has been volatility among utility customers impacting Q3 results, long-term growth opportunities remain compelling [8] - The company expects continued strong demand for new equipment sales and rental fleet performance, with favorable end market dynamics [12][32] - Supply chain improvements and robust customer demand are anticipated to support strong revenue and adjusted EBITDA growth moving forward [12][31] Other Important Information - The company has repurchased approximately $30.6 million of its stock, including $15.8 million in the quarter [41] - Borrowings under the ABL at the end of Q3 were flat at $492 million, with net leverage improving to 3.3x [18][42] - The company is experiencing mixed inflation impacts, with some raw material costs decreasing while others remain elevated [111] Q&A Session Summary Question: What is the visibility for the utility end market? - Management expects improvement in the utility end market by the end of the year, with compelling long-term demand despite current supply chain delays [23][24] Question: Can you elaborate on the fourth quarter outlook for rental revenue? - Management feels positive about overall rental performance, with expectations for utilization to remain consistent with Q3 levels [45][46] Question: What is the status of inventory levels? - Inventory has increased sequentially, with a mix of finished goods and work-in-progress, and is expected to normalize over time [67][68] Question: Why is the company selling used equipment despite high demand? - Selling used equipment is part of the strategy to manage fleet age and optimize capital deployment, with a focus on maintaining a healthy return on invested capital [70][80] Question: What are the implications of the new production facilities? - New production facilities are performing well, with high levels of output, and additional locations are planned for 2024 to expand service capabilities [92][93]

26 Supplementary Segment Data — TES | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------|-------|---------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | (in $ millions) | Q1 22 | | | Q2 22 | | Q3 22 | | Q4 22 | | Q1 23 | | Q2 23 | Q3 23 | | | Equipment sales | $ | 168 $ | | 181 | $ | 174 | $ | 247 | $ | 209 | $ | 251 | $ | 231 | | Cost of equipment sales | | 144 | | 154 | | 147 | | 203 | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38186 _______________________________ CUSTOM TRUCK ONE ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $457 million, representing a 26% increase compared to Q2 2022 [15] - Adjusted gross profit was $154 million, up 22% year-over-year, resulting in an adjusted gross margin of 34% [15] - Adjusted EBITDA reached $103 million, a 21% improvement from Q2 2022 [15] - Net income for the quarter was $11.6 million, marking the third consecutive quarter of positive net income [33] Business Line Data and Key Metrics Changes - The rental segment (ERS) generated $118 million in revenue, a 9% increase year-over-year [16] - TES segment revenues were $251 million, up nearly 39% from Q2 2022, with gross profit increasing by over 69% [16] - APS business posted revenue of $37 million, a 4% increase compared to Q2 2022, with an adjusted gross profit margin of 29.5% [8] Market Data and Key Metrics Changes - The backlog for TES grew to $864 million, a 30% increase compared to Q2 2022 [8] - Utilization in the rental fleet finished at just under 82%, which is historically strong [5] - Average OEC on rent increased by more than $53 million compared to Q2 2022 [33] Company Strategy and Development Direction - The company is focused on investing in and optimizing production capacity and service footprint to meet customer expectations [14] - Expansion projects in Kansas City and Union Grove are expected to enhance production capacity [14] - The company aims to maintain net leverage below 3x by the end of fiscal 2023 while continuing to grow the rental fleet [17] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across strategically selected end markets, including utility, telecom, rail, and infrastructure, which are expected to grow well above GDP [13] - The company is increasing its total revenue guidance range to $1.725 billion to $1.83 billion and adjusted EBITDA range to $425 million to $445 million for 2023 [6] - Management expressed confidence in sustaining margins despite inflationary pressures [8] Other Important Information - SG&A expenses were $58 million for Q2, representing 12.7% of revenues, an improvement from 13.5% in Q2 2022 [7] - The company has repurchased approximately $15 million of its stock since initiating the stock repurchase program [34] Q&A Session Summary Question: Can you help us understand the ending OEC and expected growth? - Management confirmed that they expect to achieve mid to high single-digit growth for the year, despite some fluctuations in OEC [21][40] Question: What are the expectations for free cash flow in the second half? - Management indicated that inventory investment has been a drag on free cash flow, but they anticipate a release of free cash flow in the latter half of the year as sales activity moderates [23] Question: Can you elaborate on the guidance increase and factors considered? - Management noted that the outperformance in Q2 and strong demand were key factors in the updated guidance for the second half [24][50] Question: How is the company addressing the supply chain constraints? - Management acknowledged ongoing supply chain constraints but noted improvements in chassis availability, which should support production and sales goals [19][62] Question: What is the outlook for the telecom segment given recent issues? - Management stated that telecom represents less than 5% of revenue and has not significantly impacted operations, but they are monitoring the situation closely [67]

Table of Contents (Exact name of registrant as specified in its charter) _______________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to C ...