Custom Truck One Source(CTOS) - 2024 Q4 - Annual Results

Revenue Performance - Total quarterly revenue reached $520.7 million, an increase of $73.5 million or 16.4% compared to the third quarter of 2024[5] - Full-year revenue was $1.802 billion, a decrease of 3.4% compared to 2023[5] - Total revenue for the twelve months ended December 31, 2024, was $1,802,280, a decrease of 3.4% compared to $1,865,100 for the same period in 2023[31] - Total revenue for Q4 2024 was $520.7 million, slightly down from $521.8 million in Q4 2023[45] Net Income and Loss - Quarterly net income was $27.6 million, compared to a net loss of $17.4 million for the third quarter of 2024[5] - Full-year net loss was $28.7 million compared to a net income of $50.7 million in 2023[5] - Net income for the twelve months ended December 31, 2024, was a loss of $28,655 compared to a net income of $50,712 in 2023[31] - Net income for Q4 2024 was $27.6 million, up from $16.1 million in Q4 2023, primarily due to a gain on a sale leaseback transaction[18] Adjusted EBITDA - Adjusted EBITDA for the fourth quarter was $102.0 million, an increase of $21.8 million or 27.2% compared to the third quarter of 2024[5] - Adjusted EBITDA for Q4 2024 was $102.0 million, a sequential increase of $21.8 million (27.2%), but a decrease of $16.3 million (13.8%) compared to Q4 2023[19] - Adjusted EBITDA decreased to $339,657,000 in 2024 from $426,930,000 in 2023, a decline of approximately 20.4%[49] Revenue by Segment - TES segment revenue exceeded $300 million for the quarter and $1 billion for the year, up more than 16% sequentially[3] - TES segment revenue increased by $47.8 million (18.4%) sequentially to $307.7 million, with a 2.9% increase compared to Q4 2023[15] - APS segment revenue rose by $4.1 million (11.3%) sequentially to $40.6 million, and increased by $2.4 million (6.2%) compared to Q4 2023[16] - The 2025 revenue outlook by segment includes ERS at $660 million to $690 million, TES at $1,160 million to $1,210 million, and APS at $150 million to $160 million[22] Debt and Leverage - As of December 31, 2024, total debt outstanding was $1,547.7 million, with a net leverage ratio of 4.5 times[20] - The net leverage ratio increased to 4.55 as of December 31, 2024, compared to 3.53 in 2023, indicating a significant rise in leverage[49] - Net Debt as of December 31, 2024, was calculated as total debt minus cash and cash equivalents, providing a clearer picture of the company's financial position[39] - Long-term debt, net, rose to $1,519,882,000 in 2024, up from $1,487,136,000 in 2023, indicating an increase of approximately 2.2%[48] Cash Flow and Assets - The company reported a net cash flow from operating activities of $121,985 for the twelve months ended December 31, 2024, compared to a negative cash flow of $30,883 in 2023[33] - Total assets increased to $3,501,967 as of December 31, 2024, compared to $3,367,797 as of December 31, 2023, representing a growth of 4.0%[32] - Cash and cash equivalents decreased to $3,805 as of December 31, 2024, from $10,309 as of December 31, 2023[33] Inventory and Backlog - Inventory declined by more than $150 million in the fourth quarter, positioning the company well for 2025[3] - The company experienced a 46.4% reduction in backlog to $368.8 million compared to Q4 2023, attributed to improved supply chain conditions[15] Other Financial Metrics - Adjusted Gross Profit for Q4 2024 was $167.6 million, down from $171.1 million in Q4 2023[45] - Adjusted Gross Profit from rentals for Q4 2024 was $92.6 million, compared to $88.4 million in Q4 2023, showing an increase of 2.5%[47] - The company recognized a gain of $23.5 million from a sale leaseback transaction involving 8 properties with a net book value of $29.0 million[42]