Custom Truck One Source, Inc. (NYSE:CTOS) Q3 2022 Results Conference Call November 8, 2022 5:00 PM ET Company Participants Brian Perman - VP, IR Fred Ross - CEO Ryan McMonagle - President and COO Chris Eperjesy - CFO Conference Call Participants Nicole DeBlase - Deutsche Bank Justin Hauke - Baird Stefanos Crist - CJS Securities Noelle Dilts - Stifel Scott Schneeberger - Oppenheimer Operator Greetings. And welcome to the Custom Truck One Source Inc. Third Quarter 2022 Earnings Conference Call. [Operator Inst ...

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, 2022 ☐ 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 ...

1 CONFIDENTIAL DRAFT Custom Truck One Source 2nd Quarter 2022 Investor Presentation August 9, 2022 2 2 Forward-Looking Statements This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States ("GAAP"), including, without limitation, EBITDA, Adjusted EBITDA, and Pro Forma Adjusted EBITDA (collectively, the "non-GAAP financial measures"). These non-GAAP financial measures are not measures of financ ...

Custom Truck One Source, Inc. (NYSE:CTOS) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET Company Participants Brian Perman - Vice President-Investor Relations Fred Ross - Chief Executive Officer Ryan McMonagle - President and Chief Operating Officer Todd Barrett - Interim Chief Financial Officer Conference Call Participants Scott Schneeberger - Oppenheimer Nicole DeBlase - Deutsche Bank Stefanos Crist - CJS Securities Noelle Dilts - Stifel Justin Hauke - Robert W. Baird Operator Ladies and gentl ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Custom Truck One Source, Inc.'s unaudited condensed consolidated financial statements and related notes [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.81 billion** by June 30, 2022, with liabilities rising to **$1.94 billion** and equity slightly increasing Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$2,814,415** | **$2,683,766** | | Total Current Assets | $782,823 | $656,704 | | Inventory | $536,087 | $410,542 | | Goodwill | $705,973 | $695,865 | | **Total Liabilities** | **$1,944,290** | **$1,825,256** | | Total Current Liabilities | $531,259 | $440,583 | | Long-term debt, net | $1,349,964 | $1,308,265 | | **Total Stockholders' Equity** | **$870,125** | **$858,510** | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The company achieved **$13.6 million** net income in Q2 2022, a significant improvement from a **$129.4 million** net loss in Q2 2021 Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$362,106** | **$375,111** | **$728,582** | **$453,410** | | Gross Profit | $82,758 | $46,690 | $167,251 | $66,909 | | Operating Income (Loss) | $18,745 | $(43,432) | $28,553 | $(46,486) | | **Net Income (Loss)** | **$13,623** | **$(129,356)** | **$10,350** | **$(157,263)** | | Diluted EPS | $0.05 | $(0.53) | $0.04 | $(1.07) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$21.4 million** for the six months ended June 30, 2022, primarily due to increased inventories Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash flow from operating activities | $(21,364) | $57,225 | | Net cash flow from investing activities | $(92,689) | $(1,360,227) | | Net cash flow from financing activities | $106,654 | $1,326,800 | | **Net Change in Cash** | **$(7,378)** | **$23,798** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's three segments, acquisition impacts, revenue disaggregation, debt structure, and an IRS audit - The company operates in three reportable segments: **Equipment Rental Solutions (ERS)**, **Truck and Equipment Sales (TES)**, and **Aftermarket Parts and Services (APS)**[23](index=23&type=chunk)[100](index=100&type=chunk) - On April 1, 2021, the company acquired **Custom Truck One Source, L.P.** for **$1.53 billion**, and on January 14, 2022, acquired **HiRail** for **$51.0 million**[34](index=34&type=chunk)[38](index=38&type=chunk)[50](index=50&type=chunk) Segment Gross Profit (in thousands) | Segment | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | ERS | $44,656 | $23,391 | $97,583 | $39,444 | | TES | $27,129 | $20,310 | $50,914 | $20,887 | | APS | $10,973 | $2,989 | $18,754 | $6,578 | | **Total** | **$82,758** | **$46,690** | **$167,251** | **$66,909** | - The Board of Directors authorized a stock repurchase program of up to **$30 million**, commencing in Q3 2022[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022 revenue decline due to supply chain issues, improved gross profit, and a return to net profitability, highlighting strong demand - The decrease in total revenue for Q2 2022 compared to Q2 2021 was primarily due to a decline in equipment sales as a result of supply chain challenges, despite strong customer demand[152](index=152&type=chunk) - Gross profit for Q2 2022 increased by **77.2%** year-over-year to **$82.8 million**, driven by higher rental revenues and improved margins in the TES and APS segments[150](index=150&type=chunk)[170](index=170&type=chunk)[174](index=174&type=chunk) Key Performance Measures | Metric | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Ending OEC (in thousands) | $1,399,500 | $1,338,700 | 4.5% | | Fleet utilization | 82.8% | 80.9% | 2.3% | | OEC on rent yield | 39.2% | 37.9% | 3.4% | | Sales order backlog (in thousands) | $663,619 | $222,661 | 198.0% | Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Net income (loss) | $13,623 | $(129,356) | | Adjustments | $71,760 | $199,597 | | **Adjusted EBITDA** | **$85,383** | **$70,241** | [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate exposure on variable-rate debt and unhedged foreign currency fluctuations - The company's principal market risk is interest rate exposure on its **$435.0 million** of variable-rate debt under the ABL Facility as of June 30, 2022[225](index=225&type=chunk) - A one-eighth percentage point (**12.5 bps**) change in applicable interest rates would change annual interest expense by approximately **$0.5 million**[225](index=225&type=chunk) - The company has unhedged foreign currency exposure from its Canadian operations, which generated **$19.4 million** in revenue during the first half of 2022[228](index=228&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective as of June 30, 2022, due to material weaknesses in IT general controls, with remediation underway - The CEO and Interim CFO concluded that disclosure controls and procedures were not effective as of June 30, 2022[230](index=230&type=chunk) - Material weaknesses were identified in IT general controls (**ITGCs**) related to user access, segregation of duties, and program change-management for key financial systems following the Custom Truck LP acquisition[231](index=231&type=chunk)[232](index=232&type=chunk) - A remediation plan is in process, highlighted by the implementation of a new ERP system in Q2 2022 to address segregation of duties and improve user access controls[233](index=233&type=chunk) [PART II - OTHER INFORMATION](index=51&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal claims and lawsuits, none expected to materially impact its financial condition or operations - No pending litigations, disputes, or claims against the Company are expected to have a material adverse effect on its financial condition, cash flows, or operations[237](index=237&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2021 Annual Report, except for a new risk concerning macroeconomic uncertainty - No material changes to risk factors from the 2021 Annual Report, except for a newly highlighted risk related to **macroeconomic uncertainty**[238](index=238&type=chunk) - The new risk factor warns that negative economic conditions, credit market tightening, and commodity volatility could reduce demand for products and services and limit access to capital[239](index=239&type=chunk)[240](index=240&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[242](index=242&type=chunk) [Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[242](index=242&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[242](index=242&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) No other material information is reported for the period - None[242](index=242&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including employment agreements, compensatory plans, and required certifications - Exhibits filed include employment agreements, compensatory plans, and required CEO/CFO certifications[244](index=244&type=chunk)

1 CONFIDENTIAL DRAFT Custom Truck One Source 1st Quarter 2022 Investor Presentation May 10, 2022 2 2 Forward-Looking Statements This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States ("GAAP"), including, without limitation, EBITDA, Adjusted EBITDA, and Pro Forma Adjusted EBITDA (collectively, the "non-GAAP financial measures"). These non-GAAP financial measures are not measures of financia ...

Custom Truck One Source, Inc. (NYSE:CTOS) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Brian Perman - Vice President-Investor Relations Fred Ross - Chief Executive Officer Ryan McMonagle - President & Chief Operating Officer Brad Meader - Chief Financial Officer Todd Barrett - Chief Accounting Officer Conference Call Participants Justin Hauke - Baird Nicole DeBlase - Deutsche Bank Stefanos Crist - CJS Securities Scott Schneeberger - Oppenheimer Noelle Dilts - Stifel Operator ...

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 March 31, 2022 ☐ 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 SOUR ...

Table of Contents _______________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ 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 SOURCE, I ...

Custom Truck One Source 4th Quarter & Full-Year 2021 Investor Presentation March 10, 2022 1 CONFIDENTIAL DRAFT 2 2 Safe Harbor This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States ("GAAP"), including, without limitation, EBITDA, Adjusted EBITDA, and Pro Forma Adjusted EBITDA (collectively, the "non-GAAP financial measures"). These non-GAAP financial measures are not measures of financial ...