Custom Truck One Source(US:CTOS)2024-05-02 20:32Revenue Performance - Total revenue for Q1 2024 was $411.3 million, a decrease of 9.0% from $452.2 million in Q1 2023, primarily due to lower rental asset sales and demand from the utility market[7]. - Total revenue for Q1 2024 was $411,307,000, a decline of 9.1% from $452,163,000 in Q1 2023[46]. - Total revenue for Q1 2024 was $136,028,000, down 34% from $205,920,000 in Q1 2023[47]. Rental Revenue - Rental revenue decreased by 10.2% to $106.2 million in Q1 2024 compared to $118.3 million in Q1 2023, driven by lower utilization and a decline in average OEC on rent[15]. - Rental revenue for Q1 2024 was $103,288,000, a decrease of 9.4% from $113,784,000 in Q1 2023[47]. - Rental revenue decreased to $106.2 million in Q1 2024 from $118.3 million in Q1 2023, representing a decline of 10.5%[32]. Net Income and Loss - Net loss for Q1 2024 was $14.3 million, compared to net income of $13.8 million in Q1 2023, reflecting a $28.1 million decrease primarily due to lower revenue and higher interest expenses[19]. - Net income for Q1 2024 was a loss of $14,335,000 compared to a profit of $13,800,000 in Q1 2023[34]. EBITDA and Profitability - Adjusted EBITDA for Q1 2024 was $77.4 million, a decrease of 26.4% from $105.2 million in Q1 2023, largely driven by a decline in used equipment sales and higher costs associated with variable-rate liabilities[20]. - Adjusted EBITDA for Q1 2024 was $77,376,000, down from $105,200,000 in Q1 2023, reflecting a decrease of approximately 26.5%[42]. - Gross profit for Q1 2024 was $90.7 million, down 17.3% from $109.7 million in Q1 2023[32]. - The company reported a gross profit of $90,709,000 for Q1 2024, down from $109,661,000 in Q1 2023, representing a decline of 17.3%[46]. Segment Performance - The Equipment Rental Solutions (ERS) segment reported a 9.2% decrease in rental revenue to $103.3 million in Q1 2024, with fleet utilization declining to 73.3% from 83.6% in Q1 2023[16]. - The Truck and Equipment Sales (TES) segment saw revenue increase by 14.7% to $239.9 million in Q1 2024, with gross profit improving by 26.5% to $43.2 million[17]. - The Aftermarket Parts and Services (APS) segment revenue decreased by $1.7 million to $35.4 million in Q1 2024, with gross profit margin declining to 22.9% from 25.0% in Q1 2023[18]. Cash Flow and Debt - Cash flow from operating activities for Q1 2024 was negative at $(14,375,000), compared to positive cash flow of $3,906,000 in Q1 2023[34]. - The company incurred interest expenses of $25,015,000 in Q1 2024, an increase from $22,363,000 in Q1 2023[42]. - Net Debt as of March 31, 2024, was $1,511,397,000[49]. - Long-term debt remained stable at approximately $1.49 billion as of March 31, 2024, compared to $1.49 billion at the end of 2023[33]. Guidance and Future Outlook - The company updated its full-year 2024 revenue guidance to between $1,950 million and $2,130 million, and Adjusted EBITDA guidance to between $400 million and $440 million[23]. - The company anticipates a net leverage ratio to decrease to less than 3.5 times by the end of the fiscal year, despite near-term pressures in the utility market affecting the ERS segment[22]. Acquisitions and Business Expansion - The company announced the acquisition of A&D Maintenance and Repair and SOS Fleet Services to expand its footprint and better service its rental fleet and customers[4]. - The company acquired a business for $1,410,000 during Q1 2024[34]. Asset and Liability Overview - Total assets increased to $3.45 billion as of March 31, 2024, up from $3.37 billion at the end of 2023[33]. - Current liabilities rose to $993.1 million as of March 31, 2024, compared to $897.4 million at the end of 2023[33].