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,
2022.
CTOS Fourth-Quarter and Full-Year Highlights
- Total quarterly revenue of $486.7 million and annual revenue of
$1,573.1 million, driven primarily by growth and continued strong
demand from our end markets
- Quarterly gross profit improvement of $50.4 million, or 64.7%,
to $128.3 million compared to $77.9 million for fourth quarter
2021
- Full-year gross profit of $383.7 million
- Adjusted gross profit increased 36.6% to $169.1 million
compared to $123.8 million for fourth quarter 2021
- Quarterly net income of $30.9 million, driven by gross profit
growth of $50.4 million, compared to a net loss of $3.7 million in
fourth quarter 2021
- Quarterly Adjusted EBITDA of $124.5 million compared to $95.6
million in the fourth quarter 2021
- Full-year net income of $38.9 million
- Full-year Adjusted EBITDA of $393.0 million, an increase of
$69.9 million, or 21.6%, compared to 2021 full-year pro forma
Adjusted EBITDA of $323.1 million
- Reduced net leverage from 3.8x at the end of the third quarter
of 2022 to 3.5x at the end of the year
- Announced appointment of Ryan McMonagle as Chief Executive
Officer, effective March 20, 2023. Fred Ross is retiring as Chief
Executive Officer and has agreed to remain with the Company as
Founder and will continue to serve as a member of the Board
“Our fourth quarter results concluded an incredibly strong year
despite supply chain constraints and inflationary pressures that we
experienced throughout 2022. Our entire team was instrumental in
delivering these results and achieving record levels of vehicle
production, completing more vehicles in 2022 than in any other year
in our history,” said Fred Ross, Chief Executive Officer of CTOS.
“We continue to see very strong demand from customers across all
our primary end-markets and in all three of our business segments.
The demand environment combined with our expectation of continued
improvement in the supply chain, as well as a sustained level of
vehicle production are reflected in our positive outlook for 2023.
We continue to believe that our significant scale and one-stop-shop
business model provide us with a competitive advantage that allows
us to deliver unparalleled service to our customers,” Ross
added.
Summary Actual Financial Results
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Rental revenue
$
127,829
$
114,131
$
464,039
$
370,067
$
115,010
Equipment sales
325,746
212,509
982,341
695,334
210,903
Parts sales and services
33,149
29,799
126,706
101,753
31,867
Total revenue
486,724
356,439
1,573,086
1,167,154
357,780
Gross profit
$
128,325
$
77,852
$
383,748
$
210,013
$
88,172
Net income (loss)
$
30,937
$
(3,713
)
$
38,905
$
(181,501
)
$
(2,382
)
Adjusted EBITDA1
$
124,484
$
95,589
$
392,978
$
277,784
$
91,634
1 - Adjusted EBITDA is a non-GAAP
financial measure. Further information and reconciliations for our
non-GAAP measures to the most directly comparable financial measure
under United States generally accepted accounting principles in the
U.S. (“GAAP”) is included at the end of this press release.
Summary Pro Forma Financial Results1 The summary combined
financial data below for the three and twelve months ended December
31, 2021 is presented on a pro forma basis to give effect to the
following as if they occurred on January 1, 2020: (i) the
acquisition of Custom Truck LP (the “Acquisition”) and related
impacts of purchase accounting, (ii) borrowings under the new debt
structure and (iii) repayment of previously existing debt of Nesco
Holdings and Custom Truck LP.
Three Months Ended December
31,
Twelve Months Ended December
31,
(in $000s)
2022
Actual
2021
Pro Forma (1)
2022
Actual
2021
Pro Forma (1)
Rental revenue
$
127,829
$
114,131
$
464,039
$
422,040
Equipment sales
325,746
212,509
982,341
941,289
Parts sales and services
33,149
29,799
126,706
120,296
Total revenue
486,724
356,439
1,573,086
1,483,625
Gross profit
$
128,325
$
79,236
$
383,748
$
278,418
Net income (loss)
$
30,937
$
(2,675
)
$
38,905
$
(90,521
)
Adjusted EBITDA2
$
124,484
$
95,589
$
392,978
$
323,118
1 - The above pro forma information is
presented for the twelve months ended December 31, 2021, in
accordance with Article 11 of Regulation S-X. The information
presented gives effect to the following as if they occurred on
January 1, 2020: (i) the Acquisition, (ii) borrowings under the
senior secured notes and the asset-based credit facility used to
repay certain debt in connection with the Acquisition, (iii)
extinguishment of Custom Truck LP's prior credit facility and term
loan borrowings assumed in the Acquisition and immediately repaid
on April 1, 2021, and (iv) extinguishment of Nesco Holdings’ prior
credit facility and its senior secured notes repaid in connection
with the Acquisition. The pro forma information is not necessarily
indicative of the Company’s results of operations had the
Acquisition been completed on January 1, 2020, nor is it
necessarily indicative of the Company’s future results. The pro
forma information does not reflect any cost savings from operating
efficiencies, synergies, or revenue opportunities that could result
from the Acquisition.
2 - Adjusted EBITDA is a non-GAAP
financial measure. Further information and reconciliations for our
non-GAAP measures to the most directly comparable financial measure
under GAAP is included at the end of this press release.
Summary Actual Financial Results by Segment Our results
are reported for our three segments: Equipment Rental Solutions
(“ERS”), Truck and Equipment Sales (“TES”) and Aftermarket Parts
and Services (“APS”). ERS encompasses our core rental business,
inclusive of sales of rental equipment to our customers. TES
encompasses our specialized truck and equipment production and
sales activities. APS encompasses sales and rentals of parts, tools
and other supplies to our customers, as well as our aftermarket
repair service operations. Segment performance is presented below
for the three months ended December 31, 2022 and 2021 and September
30, 2022, and for the twelve months ended December 31, 2022 and
2021. Segment performance for the twelve months ended December 31,
2021, includes Custom Truck LP from April 1, 2021 to December 31,
2021.
Equipment Rental Solutions
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Rental revenue
$
123,429
$
109,622
$
449,108
$
354,557
$
112,009
Equipment sales
78,472
35,294
212,146
105,435
37,121
Total revenue
201,901
144,916
661,254
459,992
149,130
Cost of rental revenue
26,735
26,961
106,598
94,644
27,221
Cost of equipment sales
57,504
29,605
158,167
90,420
27,015
Depreciation of rental equipment
39,836
43,752
167,962
151,954
41,776
Total cost of revenue
124,075
100,318
432,727
337,018
96,012
Gross profit
$
77,826
$
44,598
$
228,527
$
122,974
$
53,118
Truck and Equipment Sales
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Equipment sales
$
247,274
$
177,215
$
770,195
$
589,899
$
173,782
Cost of equipment sales
202,887
153,844
647,685
528,024
146,573
Gross profit
$
44,387
$
23,371
$
122,510
$
61,875
$
27,209
Aftermarket Parts and Services
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Rental revenue
$
4,400
$
4,509
$
14,931
$
15,510
$
3,001
Parts and services revenue
33,149
29,799
126,706
101,753
31,867
Total revenue
37,549
34,308
141,637
117,263
34,868
Cost of revenue
30,470
22,243
105,185
86,943
26,187
Depreciation of rental equipment
967
2,182
3,741
5,156
836
Total cost of revenue
31,437
24,425
108,926
92,099
27,023
Gross profit
$
6,112
$
9,883
$
32,711
$
25,164
$
7,845
Summary Combined Operating Metrics
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022 Actual
(in $000s)
2022
Actual
2021
Pro Forma
2022
Actual
2021
Pro Forma
Ending OEC(a) (as of period end)
$
1,455,820
$
1,363,451
$
1,455,820
$
1,363,451
$
1,428,800
Average OEC on rent(b)
$
1,267,600
$
1,151,959
$
1,187,950
$
1,097,200
$
1,182,500
Fleet utilization(c)
86.3 %
83.7 %
83.9 %
81.2 %
83.8 %
OEC on rent yield(d)
39.5 %
39.4 %
39.1 %
38.0 %
38.5 %
Sales order backlog(e) (as of period
end)
$
754,142
$
411,636
$
754,142
$
411,636
$
709,180
(a)
Ending OEC — original equipment cost
(“OEC”) is the original equipment cost of units at a given point in
time.
(b)
Average OEC on rent — Average OEC on rent
is calculated as the weighted-average OEC on rent during the stated
period.
(c)
Fleet utilization — total number of days
the rental equipment was rented during a specified period of time
divided by the total number of days available during the same
period and weighted based on OEC.
(d)
OEC on rent yield (“ORY”) — a measure of
return realized by our rental fleet during a 12-month period. ORY
is calculated as rental revenue (excluding freight recovery and
ancillary fees) during the stated period divided by the Average OEC
on rent for the same period. For period less than 12 months, the
ORY is adjusted to an annualized basis.
(e)
Sales order backlog — purchase orders
received for customized and stock equipment. Sales order backlog
should not be considered an accurate measure of future net
sales.
Management Commentary Total revenue in 2022 was
characterized by strong year-over-year customer demand for
equipment sales, rental equipment and for parts sales and service,
with full-year revenue increasing 34.8%, including the full year
impact of our business combination, to $1,573.1 million as compared
to full-year revenue in 2021 of $1,167.2 million. Total revenue in
2022 increased 6.0% compared to 2021 pro forma revenue of $1,483.6
million. In the fourth quarter of 2022, total revenue was $486.7
million, an increase of 36.6% from the fourth quarter of 2021.
Equipment sales increased 53.3% in the fourth quarter of 2022 to
$325.7 million, compared to $212.5 million in the fourth quarter of
2021, as an improvement in supply chain challenges allowed for
greater order fulfillments. Full-year 2022 equipment sales revenue
improved 41.3%, including the full year impact of our business
combination, to $982.3 million, compared to full-year 2021 in the
equipment sales revenue of $695.3 million. Full-year equipment
sales revenue improved 4.4% compared to 2021 pro forma equipment
sales revenue of $941.3 million. Fourth quarter 2022 rental revenue
increased 12.0% to $127.8 million, compared to $114.1 million in
the fourth quarter of 2021, reflecting our continued expansion of
our rental fleet, higher utilization and pricing gains. Full-year
2022 rental revenue improved 25.4%, including the full year impact
of our business combination, to $464.0 million, compared to
full-year 2021 in the rental revenue of $370.1 million. Full-year
rental revenue improved 10.0% compared to 2021 pro forma revenue of
$422.0 million. Parts sales and service revenue increased 11.1% in
the fourth quarter of 2022 to $33.1 million, compared to $29.8
million in the fourth quarter of 2021. Full-year 2022 parts sales
and service revenue improved 24.5%, including the full year impact
of our business combination, to $126.7 million, compared to
full-year 2021 parts sales and service revenue of $101.8 million.
Full-year 2022 parts sales and service revenue improved 5.3%
compared to 2021 pro forma revenue of $120.3 million.
In our ERS segment, rental revenue in the fourth quarter of 2022
was $123.4 million compared to $109.6 million in the fourth quarter
of 2021, a 12.6% increase. Fleet utilization continued to increase,
coming in at 86.3% compared to 83.7% in the fourth quarter of 2021.
Gross profit in the segment in the fourth quarter of 2022 and 2021
was $77.8 million and $44.6 million, respectively, representing
strong growth over the prior year period from both rentals and
sales. Gross profit in the segment, excluding $39.8 million and
$43.8 million of rental equipment depreciation in the fourth
quarter of 2022 and 2021, respectively, was $117.7 million in the
fourth quarter of 2022, compared to $88.4 million in the fourth
quarter of 2021, representing strong growth over the prior year
period from both rentals and sales. Gross profit from rentals,
which excludes depreciation of rental equipment, improved to $96.7
million in the fourth quarter of 2022 compared to $82.7 million in
the fourth quarter of 2021.
Revenue in our TES segment increased 39.6%, to $247.3 million in
the fourth quarter of 2022, from $177.2 million in the fourth
quarter of 2021, as an improvement in supply chain challenges
allowed for greater order fulfillments. Gross profit improved by
89.7% to $44.4 million in the fourth quarter of 2022 compared to
$23.4 million in the fourth quarter of 2021. In the fourth quarter,
TES continued to see strength in product demand as sales order
backlog grew by 6.3% to $754.1 million compared to the end of the
third quarter of 2022, and is up 83.2% from the fourth quarter of
2021. On a sequential basis, supply chain headwinds lessened, with
new equipment sales revenue increasing 42.3% in the fourth quarter
of 2022 compared to the third quarter of 2022.
APS segment revenue experienced an increase of $3.2 million, or
9.3%, in the fourth quarter of 2022, to $37.5 million, as compared
to $34.3 million in the fourth quarter of 2021. Growth in demand
for parts, tools and accessories (“PTA”) sales was offset by
reduced tools and accessories rentals in the PTA division. Gross
profit margin in the segment was negatively impacted by higher
inventory costs due to shifts in product mix.
Net income was $30.9 million in the fourth quarter of 2022
compared to a net loss of $3.7 million for the fourth quarter of
2021. The improvement in net income is the result of gross profit
expansion, offset by higher selling costs and interest expense on
variable-rate debt and variable-rate floorplan liabilities.
Adjusted EBITDA for the fourth quarter of 2022 was $124.5
million, compared to $95.6 million for the fourth quarter of 2021.
The increase in Adjusted EBITDA was largely driven by growth in
rental demand and in new equipment sales, both of which contributed
to margin expansion.
As of December 31, 2022, CTOS had cash and cash equivalents of
$14.4 million, current and long-term debt of $1,361.7 million (net
of deferred financing fees of $27.7 million), and current and
long-term finance lease obligations of $5.0 million. Our net debt
(non-GAAP measure as defined below) was $1,380.0 million as of
December 31, 2022. Our net leverage ratio (non-GAAP measure), which
is net debt divided by Adjusted EBITDA, was 3.5x as of December 31,
2022. Availability under the senior secured credit facility was
$309.4 million as of December 31, 2022. For the twelve months ended
December 31, 2022, we added net OEC of $92.4 million to our rental
fleet. During the three months ended December 31, 2022, CTOS
purchased approximately $8.0 million of its common stock under the
previously announced stock repurchase program.
2023 Outlook We are providing our full-year revenue and
Adjusted EBITDA guidance for 2023 at this time. We believe ERS will
continue to benefit from strong demand from our rental customers as
well as for purchases of rental fleet units, particularly older
equipment, in 2023. We also expect to further grow our rental fleet
(based on net OEC) by mid- to high-single digits. Regarding TES,
supply chain improvements, improved inventory levels exiting 2022,
and record backlog levels should improve our ability to produce and
deliver more units in 2023. “Our FY23 outlook reflects the ongoing
strength of our end markets and the continued focus by our teams to
profitably grow our business. The outlook also reflects the
moderated risks associated with some continued supply chain
challenges, which we expect could persist through the fiscal year,”
said Ryan McMonagle, President and Chief Operating Officer of
CTOS.
2023 Consolidated Outlook
Revenue
$1,610 million
—
$1,730 million
Adjusted EBITDA1
$415 million
—
$435 million
2023 Revenue Outlook by Segment
ERS
$665 million
—
$705 million
TES
$800 million
—
$870 million
APS
$145 million
—
$155 million
1 - CTOS is not able to forecast net income on a forward-looking
basis without unreasonable efforts due to the high variability and
difficulty in predicting certain items that affect GAAP net income
including, but not limited to, customer buyout requests on rentals
with rental purchase options, income tax expense and changes in
fair value of derivative financial instruments. Adjusted EBITDA
should not be used to predict net income as the difference between
the two measures is variable.
CONFERENCE CALL INFORMATION The Company has scheduled a
conference call at 5:00 P.M. Eastern Time on March 14, 2023, to
discuss its fourth quarter 2022 financial results. A webcast will
be publicly available at: investors.customtruck.com. To listen by
phone, please dial 1-877-425-9470 or 1-201-389-0878. A replay of
the call will be available until midnight, Tuesday, March 21, 2023,
by dialing 1-844-512-2921 or 1‑412‑317-6671 and entering passcode
13736182.
ABOUT CTOS CTOS is one of the largest providers of
specialty equipment, parts, tools, accessories and services to the
electric utility transmission and distribution, telecommunications
and rail markets in North America, with a differentiated
“one-stop-shop” business model. CTOS offers its specialized
equipment to a diverse customer base for the maintenance, repair,
upgrade and installation of critical infrastructure assets,
including electric lines, telecommunications networks and rail
systems. The Company's coast-to-coast rental fleet of more than
10,000 units includes aerial devices, boom trucks, cranes, digger
derricks, pressure drills, stringing gear, hi-rail equipment,
repair parts, tools and accessories. For more information, please
visit investors.customtruck.com.
FORWARD-LOOKING STATEMENTS This press release includes
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995, as amended, and within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended,
and Section 27A of the Securities Act of 1933, as amended. When
used in this press release, the words “estimates,” “projected,”
“expects,” “anticipates,” “forecasts,” “plans,” “intends,”
“believes,” “seeks,” “may,” “will,” “should,” “future,” “propose”
and variations of these words or similar expressions (or the
negative versions of such words or expressions) are intended to
identify forward-looking statements. These forward-looking
statements are not guarantees of future performance, conditions or
results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important factors, many of
which are outside the Company's management’s control, that could
cause actual results or outcomes to differ materially from those
discussed in this press release. This press release is based on
certain assumptions that the Company's management has made in light
of its experience in the industry, as well as the Company’s
perceptions of historical trends, current conditions, expected
future developments and other factors the Company believes are
appropriate in these circumstances. As you read and consider this
press release, you should understand that these statements are not
guarantees of performance or results. Many factors could affect the
Company’s actual performance and results and could cause actual
results to differ materially from those expressed in this press
release. Important factors, among others, that may affect actual
results or outcomes include: increases in labor costs, our
inability to obtain raw materials, component parts and/or finished
goods in a timely and cost-effective manner, and our inability to
manage our rental equipment in an effective manner; our sales order
backlog may not be indicative of the level of our future revenues;
increases in unionization rate in our workforce; our inability to
recruit and retain the experienced personnel, including skilled
technicians, we need to compete in our industries; our inability to
attract and retain highly skilled personnel and our inability to
retain our senior management; material disruptions to our operation
and manufacturing locations as a result of public health concerns,
equipment failures, natural disasters, work stoppages, power
outages or other reasons; potential impairment charges; any further
increase in the cost of new equipment that we purchase for use in
our rental fleet or for sale as inventory; aging or obsolescence of
our existing equipment, and the fluctuations of market value
thereof; disruptions in our supply chain; our business may be
impacted by government spending; we may experience losses in excess
of our recorded reserves for receivables; unfavorable conditions in
the capital and credit markets and our inability to obtain
additional capital as required; increases in price of fuel or
freight; regulatory technological advancement, or other changes in
our core end-markets may affect our customer’s spending; difficulty
in integrating acquired businesses and fully realizing the
anticipated benefits and cost savings of the acquired businesses,
as well as additional transaction and transition costs that we will
continue to incur following acquisitions; material weakness in our
internal control over financial reporting which, if not remediated,
could result in material misstatements in our financial statements;
the interest of our majority stockholder, which may not be
consistent with the other stockholders; our significant
indebtedness, which may adversely affect our financial position,
limit our available cash and our access to additional capital,
prevent us from growing our business and increase our risk of
default; our inability to generate cash, which could lead to a
default; significant operating and financial restrictions imposed
by our debt agreements; changes in interest rates, which could
increase our debt service obligations on the variable rate
indebtedness and decrease our net income and cash flows; the
phase-out of the London Interbank Offered Rate (“LIBOR”) and
uncertainty as to its replacement; disruptions in our information
technology systems or a compromise of our system security, limiting
our ability to effectively monitor and control our operations,
adjust to changing market conditions, and implement strategic
initiatives; we are subject to complex laws and regulations,
including environmental and safety regulations that can adversely
affect cost, manner or feasibility of doing business; we are
subject to a series of risks related to climate change; and
increased attention to, and evolving expectations for,
sustainability and environmental, social and governance
initiatives. For a more complete description of these and other
possible risks and uncertainties, please refer to the Company's
Annual Report on Form 10-K for the year ended December 31, 2022,
and its subsequent reports filed with the Securities and Exchange
Commission. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in
their entirety by the foregoing cautionary statements.
CUSTOM TRUCK ONE SOURCE,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited)
The consolidated statements of operations
for the three and twelve months ended December 31, 2021 includes
the results of Custom Truck LP from April 1, 2021 to December 31,
2021.
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s except per share data)
2022
2021
2022
2021
Revenue
Rental revenue
$
127,829
$
114,131
$
464,039
$
370,067
$
115,010
Equipment sales
325,746
212,509
982,341
695,334
210,903
Parts sales and services
33,149
29,799
126,706
101,753
31,867
Total revenue
486,724
356,439
1,573,086
1,167,154
357,780
Cost of Revenue
Cost of rental revenue
27,481
28,012
110,272
99,885
28,207
Depreciation of rental equipment
40,803
45,934
171,703
157,110
42,612
Cost of equipment sales
260,391
183,449
805,852
618,444
173,588
Cost of parts sales and services
29,724
21,192
101,511
81,702
25,201
Total cost of revenue
358,399
278,587
1,189,338
957,141
269,608
Gross Profit
128,325
77,852
383,748
210,013
88,172
Operating Expenses
Selling, general and administrative
expenses
58,599
43,844
210,868
155,783
49,835
Amortization
6,940
13,334
33,940
40,754
6,794
Non-rental depreciation
2,112
1,768
9,414
3,613
1,938
Transaction expenses and other
9,026
9,065
26,218
51,830
6,498
Total operating expenses
76,677
68,011
280,440
251,980
65,065
Operating Income (Loss)
51,648
9,841
103,308
(41,967
)
23,107
Other Expense
Loss on extinguishment of debt
—
—
—
61,695
—
Interest expense, net
26,582
19,169
88,906
72,843
22,887
Financing and other expense (income)
(6,425
)
428
(32,330
)
571
(1,747
)
Total other expense
20,157
19,597
56,576
135,109
21,140
Income (Loss) Before Income
Taxes
31,491
(9,756
)
46,732
(177,076
)
1,967
Income Tax Expense (Benefit)
554
(6,043
)
7,827
4,425
4,349
Net Income (Loss)
$
30,937
$
(3,713
)
$
38,905
$
(181,501
)
$
(2,382
)
Net Income (Loss) Per Share:
Basic
$
0.13
$
(0.02
)
$
0.16
$
(0.75
)
$
(0.01
)
Diluted
$
0.13
$
(0.02
)
$
0.16
$
(0.75
)
$
(0.01
)
CUSTOM TRUCK ONE SOURCE, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in $000s)
December 31, 2022
December 31, 2021
Assets
Current Assets
Cash and cash equivalents
$
14,360
$
35,902
Accounts receivable, net
193,106
168,394
Financing receivables, net
38,271
28,649
Inventory
596,724
410,542
Prepaid expenses and other
25,784
13,217
Total current assets
868,245
656,704
Property and equipment, net
121,956
108,612
Rental equipment, net
883,674
834,325
Goodwill
703,827
695,865
Intangible assets, net
304,132
327,840
Operating lease assets
29,434
36,014
Other assets
26,944
24,406
Total Assets
$
2,938,212
$
2,683,766
Liabilities and Stockholders'
Equity
Current Liabilities
Accounts payable
$
87,255
$
91,123
Accrued expenses
68,784
60,337
Deferred revenue and customer deposits
34,671
35,791
Floor plan payables - trade
136,634
72,714
Floor plan payables - non-trade
293,536
165,239
Operating lease liabilities - current
5,262
4,987
Current maturities of long-term debt
6,940
6,354
Current portion of finance lease
obligations
1,796
4,038
Total current liabilities
634,878
440,583
Long-term debt, net
1,354,766
1,308,265
Finance leases
3,206
5,109
Operating lease liabilities -
noncurrent
24,818
31,514
Deferred income taxes
29,086
15,621
Derivative, warrants and other
liabilities
3,015
24,164
Total long-term liabilities
1,414,891
1,384,673
Commitments and contingencies
Stockholders' Equity
Common stock
25
25
Treasury stock, at cost
(15,537
)
(3,020
)
Additional paid-in capital
1,521,487
1,508,995
Accumulated other comprehensive loss
(8,947
)
—
Accumulated deficit
(608,585
)
(647,490
)
Total stockholders' equity
888,443
858,510
Total Liabilities and Stockholders'
Equity
$
2,938,212
$
2,683,766
CUSTOM TRUCK ONE SOURCE, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(unaudited)
The consolidated statement of cash flows
for the twelve months ended December 31, 2021 include the cash
flows of Custom Truck LP from April 1, 2021 to December 31,
2021.
Twelve Months Ended December
31,
(in $000s)
2022
2021
Operating Activities
Net income (loss)
$
38,905
$
(181,501
)
Adjustments to reconcile net income (loss)
to net cash flow from operating activities:
Depreciation and amortization
223,483
209,073
Amortization of debt issuance costs
4,860
4,740
Loss on extinguishment of debt
—
61,695
Provision for losses on accounts
receivable
12,650
11,103
Share-based compensation
12,297
17,313
Gain on sales and disposals of rental
equipment
(55,213
)
(11,636
)
Change in fair value of derivative and
warrants
(20,290
)
6,192
Deferred tax expense (benefit)
7,387
3,863
Changes in assets and liabilities:
Accounts and financing receivables
(36,821
)
(37,716
)
Inventories
(194,691
)
46,574
Prepaids, operating leases and other
(11,936
)
(6,123
)
Accounts payable
(5,589
)
8,060
Accrued expenses and other liabilities
8,108
5,580
Floor plan payables - trade, net
63,920
(18,276
)
Customer deposits and deferred revenue
(1,102
)
19,985
Net cash flow from operating
activities
45,968
138,926
Investing Activities
Acquisition of businesses, net of cash
acquired
(49,832
)
(1,337,686
)
Purchases of rental equipment
(340,791
)
(188,389
)
Proceeds from sales and disposals of
rental equipment
205,852
99,833
Purchase of non-rental property and cloud
computing arrangements
(34,165
)
(3,238
)
Net cash flow from investing
activities
(218,936
)
(1,429,480
)
Financing Activities
Proceeds from debt
—
952,743
Proceeds from issuance of common stock
—
883,000
Payment of common stock issuance costs
—
(6,386
)
Payment of premiums on debt
extinguishment
—
(53,469
)
Share-based payments
(1,838
)
(652
)
Borrowings under revolving credit
facilities
153,036
491,084
Repayments under revolving credit
facilities
(110,249
)
(347,111
)
Repayments of notes payable
(1,012
)
(507,509
)
Finance lease payments
(3,955
)
(5,223
)
Repurchase of common stock
(10,279
)
—
Acquisition of inventory through floor
plan payables - non-trade
619,896
304,902
Repayment of floor plan payables -
non-trade
(491,599
)
(353,641
)
Payment of debt issuance costs
(104
)
(34,694
)
Net cash flow from financing
activities
153,896
1,323,044
Effect of exchange rate changes on cash
and cash equivalents
(2,470
)
—
Net Change in Cash and Cash
Equivalents
(21,542
)
32,490
Cash and Cash Equivalents at Beginning
of Period
35,902
3,412
Cash and Cash Equivalents at End of
Period
$
14,360
$
35,902
Twelve Months Ended December
31,
(in $000s)
2022
2021
Supplemental Cash Flow
Information
Interest paid
$
81,177
$
92,625
Income taxes paid
567
541
Non-Cash Investing and Financing
Activities
Non-cash consideration - acquisition of
business
—
187,935
Rental equipment and property and
equipment purchases in accounts payable
68
—
Rental equipment sales in accounts
receivable
11,283
1,555
CUSTOM TRUCK ONE SOURCE, INC.
PRO FORMA FINANCIAL INFORMATION The unaudited pro forma
combined financial information presented on the subsequent pages
give effect to the Company's acquisition of Custom Truck LP, as if
the Acquisition had occurred on January 1, 2020, and is presented
to facilitate comparisons with our results following the
Acquisition. This information has been prepared in accordance with
Article 11 of Regulation S-X. Such unaudited pro forma combined
financial information also uses the fair value of assets and
liabilities, including the fair value of tax assets and
liabilities, on April 1, 2021, the closing date of the Acquisition,
and makes the following assumptions: (1) removes
acquisition-related costs and charges that were recognized in the
Company's consolidated financial statements in the three and twelve
months ended December 31, 2021, and applies these costs and charges
as if the transactions had occurred on January 1, 2020; (2) removes
the loss on the extinguishment of debt that was recognized in the
Company’s consolidated financial statements in the three and twelve
months ended December 31, 2021 and applies the charge to the three
and twelve months ended December 31, 2020, as if the debt
extinguishment giving rise to the loss had occurred on January 1,
2020; (3) adjusts for the impacts of purchase accounting in the
three and twelve months ended December 31, 2021; (4) adjusts
interest expense, including amortization of debt issuance costs, to
reflect borrowings on the ABL Facility and issuance of the 2029
Secured Notes, as if the funds had been borrowed and the 2029
Secured Notes had been issued on January 1, 2020 and used to repay
pre-acquisition debt; and, (5) adjusts for the income tax effect
using a tax rate of 25%.
NON-GAAP FINANCIAL AND PERFORMANCE MEASURES In our press
release and schedules, and on the related conference call, we
report certain financial measures that are not required by, or
presented in accordance with, United States generally accepted
accounting principles (“GAAP”). We utilize these financial measures
to manage our business on a day-to-day basis and some of these
measures are commonly used in our industry to evaluate performance.
We believe these non-GAAP measures provide investors expanded
insight to assess performance, in addition to the standard
GAAP-based financial measures. The press release schedules
reconcile the most directly comparable GAAP measure to each
non-GAAP measure that we refer to. Although management evaluates
and presents these non-GAAP measures for the reasons described
herein, please be aware that these non-GAAP measures have
limitations and should not be considered in isolation or as a
substitute for revenue, operating income/loss, net income/loss,
earnings/loss per share or any other comparable operating measure
prescribed by GAAP. In addition, we may calculate and/or present
these non-GAAP financial measures differently than measures with
the same or similar names that other companies report, and as a
result, the non-GAAP measures we report may not be comparable to
those reported by others.
Custom Truck LP became a wholly owned subsidiary of the Company
on April 1, 2021. The Company's consolidated financial statements
prepared under GAAP include Custom Truck LP from April 1, 2021.
Accordingly, the financial information presented under GAAP for the
twelve months ended December 31, 2022 is not comparable to the
financial information of the twelve months ended December 31, 2021.
As a result, we have included information on a “pro forma combined
basis” as further described below, which we believe provides for
more meaningful year-over-year comparability.
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial
performance measure that we use to monitor our results of
operations, to measure performance against debt covenants and
performance relative to competitors. We believe Adjusted EBITDA is
a useful performance measure because it allows for an effective
evaluation of operating performance, without regard to financing
methods or capital structures. We exclude the items identified in
the reconciliations of net income (loss) to Adjusted EBITDA because
these amounts are either non-recurring or can vary substantially
within the industry depending upon accounting methods and book
values of assets, including the method by which the assets were
acquired, and capital structures. Adjusted EBITDA should not be
considered as an alternative to, or more meaningful than, net
income (loss) determined in accordance with GAAP. Certain items
excluded from Adjusted EBITDA are significant components in
understanding and assessing a company’s financial performance, such
as a company’s cost of capital and tax structure, as well as the
historical costs of depreciable assets, none of which are reflected
in Adjusted EBITDA. Our presentation of Adjusted EBITDA should not
be construed as an indication that results will be unaffected by
the items excluded from Adjusted EBITDA. Our computation of
Adjusted EBITDA may not be identical to other similarly titled
measures of other companies.
We define Adjusted EBITDA as net income or loss before interest
expense, income taxes, depreciation and amortization, share-based
compensation, and other items that we do not view as indicative of
ongoing performance. Our Adjusted EBITDA includes an adjustment to
exclude the effects of purchase accounting adjustments when
calculating the cost of inventory and used equipment sold. When
inventory or equipment is purchased in connection with a business
combination, the assets are revalued to their current fair values
for accounting purposes. The consideration transferred (i.e., the
purchase price) in a business combination is allocated to the fair
values of the assets as of the acquisition date, with amortization
or depreciation recorded thereafter following applicable accounting
policies; however, this may not be indicative of the actual cost to
acquire inventory or new equipment that is added to product
inventory or the rental fleets apart from a business acquisition.
Additionally, the pricing of rental contracts and equipment sales
prices for equipment is based on OEC, and we measure a rate of
return from rentals and sales using OEC. We also include an
adjustment to remove the impact of accounting for certain of our
rental contracts with customers containing a rental purchase option
that are accounted for under GAAP as a sales-type lease. We include
this adjustment because we believe continuing to reflect the
transactions as an operating lease better reflects the economics of
the transactions given our large portfolio of rental contracts.
These, and other, adjustments to GAAP net income or loss that are
applied to derive Adjusted EBITDA are specified by our senior
secured credit agreements.
Although management evaluates and presents the Adjusted EBITDA
non-GAAP measure for the reasons described herein, please be aware
that this non-GAAP measure has limitations and should not be
considered in isolation or as a substitute for revenue, operating
income/loss, net income/loss, earnings/loss per share or any other
comparable operating measure prescribed by GAAP. In addition, we
may calculate and/or present this non-GAAP financial measure
differently than measures with the same or similar names that other
companies report, and, as a result, the non-GAAP measure we report
may not be comparable to those reported by others.
We present Pro Forma Adjusted EBITDA as if the Acquisition had
occurred on January 1, 2020. Refer to the reconciliation of pro
forma combined net income (loss) to Pro Forma Adjusted EBITDA for
the three and twelve months ended December 31, 2021 in this press
release.
Gross Profit and Rental Profit Excluding Rental Equipment
Depreciation. We present total gross profit excluding rental
equipment depreciation as a non-GAAP financial performance measure.
We also present rental gross profit that excludes rental equipment
depreciation as a non-GAAP financial measure. These measures differ
from the GAAP definitions of gross profit, as we do not include the
impact of depreciation expense, which represents non-cash expense.
We use these measures to evaluate operating margins and the
effectiveness of the cost of our rental fleet.
Net Debt. We present the non-GAAP financial measure “net
debt,” which is total debt (the most comparable GAAP measure,
calculated as current and long-term debt, excluding deferred
financing fees, plus current and long-term finance lease
obligations) minus cash and cash equivalents. We believe this
non-GAAP measure is useful to investors to evaluate our financial
position.
Net Leverage Ratio. Net leverage ratio is a non-GAAP
financial performance measure used by management and we believe it
provides useful information to investors because it is an important
liquidity measure that reflects our ability to service debt. We
define net leverage ratio as net debt divided by Adjusted
EBITDA.
CUSTOM TRUCK ONE SOURCE, INC.
SCHEDULE 1 — ADJUSTED EBITDA
RECONCILIATION
(unaudited)
The Adjusted EBITDA Reconciliation for the
twelve months ended December 31, 2021 includes the results of
Custom Truck LP from April 1, 2021 to December 31, 2021.
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022 Actual
2021 Actual
2022 Actual
2021 Actual
Net income (loss)
$
30,937
$
(3,713
)
$
38,905
$
(181,501
)
$
(2,382
)
Interest expense
21,432
17,778
76,265
67,610
19,338
Income tax expense (benefit)
554
(6,043
)
7,827
4,425
4,349
Depreciation and amortization
52,362
63,106
223,483
209,073
54,001
EBITDA
105,285
71,128
346,480
99,607
75,306
Adjustments:
Non-cash purchase accounting impact
(1)
8,268
6,468
23,069
33,954
3,408
Transaction and integration costs (2)
9,026
8,900
26,218
51,993
6,501
Loss on extinguishment of debt (3)
—
—
—
61,695
—
Sales-type lease adjustment (4)
1,411
3,757
5,204
7,030
1,232
Share-based payments (5)
2,771
4,597
12,297
17,313
4,378
Change in fair value of derivative and
warrants (6)
(2,277
)
739
(20,290
)
6,192
809
Adjusted EBITDA
$
124,484
$
95,589
$
392,978
$
277,784
$
91,634
Adjusted EBITDA is defined as net income (loss) plus
interest expense, provision for income taxes, depreciation and
amortization, and further adjusted for non-cash purchase accounting
impact, transaction and process improvement costs, including
business integration expenses, share-based payments, the change in
fair value of derivative instruments, sales-type lease adjustment,
and other special charges that are not expected to recur. This
non-GAAP measure is subject to certain limitations.
(1)
Represents the non-cash impact of purchase
accounting, net of accumulated depreciation, on the cost of
equipment and inventory sold. The equipment and inventory acquired
received a purchase accounting step-up in basis, which is a
non-cash adjustment to the equipment cost pursuant to our credit
agreement.
(2)
Represents transaction and process
improvement costs related to acquisitions of businesses, including
post-acquisition integration costs, which are recognized within
operating expenses in our Consolidated Statements of Comprehensive
Net Income (Loss). These expenses are comprised of professional
consultancy, legal, tax and accounting fees. Also included are
expenses associated with the integration of acquired businesses.
These expenses are presented as adjustments to net income (loss)
pursuant to our ABL Credit Agreement.
(3)
Loss on extinguishment of debt represents
a special charge, which is not expected to recur. Such charges are
adjustments pursuant to our credit agreement.
(4)
Represents the adjustment for the impact
of sales-type lease accounting for certain leases containing rental
purchase options (or “RPOs”), as the application of sales-type
lease accounting is not deemed to be representative of the ongoing
cash flows of the underlying rental contracts. This adjustment is
made pursuant to our credit agreement.
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Equipment sales
$
(14,518
)
$
(2,563
)
$
(41,525
)
$
(16,274
)
$
(7,099
)
Cost of equipment sales
14,509
4,945
37,582
16,532
5,938
Gross (profit) loss
(9
)
2,382
(3,943
)
258
(1,161
)
Interest income
(4,303
)
(5,276
)
(12,130
)
(5,898
)
(2,719
)
Rental invoiced
5,723
6,651
21,277
12,670
5,112
Sales-type lease adjustment
$
1,411
$
3,757
$
5,204
$
7,030
$
1,232
(5)
Represents non-cash share-based
compensation expense associated with the issuance of stock options
and restricted stock units.
(6)
Represents the charge to earnings for our
interest rate collar and the change in fair value of the liability
for warrants.
CUSTOM TRUCK ONE SOURCE, INC.
SCHEDULE 2 — SUPPLEMENTAL PRO FORMA
INFORMATION
(unaudited)
Pro Forma Combined Statements of
Operations — Three Months Ended December 31, 2021
(in $000s)
Custom Truck One Source,
Inc.
Pro Forma Adjustmentsa
Pro Forma Combined
Rental revenue
$
114,131
$
—
$
114,131
Equipment sales
212,509
—
212,509
Parts sales and services
29,799
—
29,799
Total revenue
356,439
—
356,439
Cost of revenue
232,653
(1,384
)
b
231,269
Depreciation of rental equipment
45,934
—
45,934
Total cost of revenue
278,587
(1,384
)
277,203
Gross profit
77,852
1,384
79,236
Selling, general and administrative
43,844
—
43,844
Amortization
13,334
—
13,334
Non-rental depreciation
1,768
—
1,768
Transaction expenses and other
9,065
—
9,065
Total operating expenses
68,011
—
68,011
Operating income (loss)
9,841
1,384
11,225
Interest expense, net
19,169
—
19,169
Finance and other expense (income)
428
—
428
Total other expense
19,597
—
19,597
Income (loss) before taxes
(9,756
)
1,384
(8,372
)
Taxes
(6,043
)
346
c
(5,697
)
Net income (loss)
$
(3,713
)
$
1,038
$
(2,675
)
a.
The pro forma adjustments give effect to the following as if
they occurred on January 1, 2020: (i) the Acquisition and (ii) the
extinguishment of Nesco Holdings’ 2019 Credit Facility and the
prepayment of the Senior Secured Notes due 2024 in connection with
the Acquisition. The adjustments also give effect to transaction
expenses directly attributable to the Acquisition.
b.
Represents the elimination from cost of revenue of the run-off
of the step-up in fair value of inventory acquired that was
recognized in the Company’s consolidated financial statements for
the three months ended December 31, 2021. The impact of the step-up
is reflected as an adjustment to the comparable prior period ended
December 31, 2020 as if the Acquisition had occurred on January 1,
2020.
c.
Reflects the adjustment to recognize the tax impacts of the pro
forma adjustments for which a tax expense is recognized using a
statutory tax rate of 25%.
Pro Forma Combined Statements of
Operations — Twelve Months Ended December 31, 2021
(in $000s)
Custom Truck One
Source, Inc.
Custom Truck LP (Three
Months Ended March 31, 2021)
Pro Forma Adjustmentsa
Pro Forma Combined
Rental revenue
$
370,067
$
51,973
$
—
$
422,040
Equipment sales
695,334
245,955
—
941,289
Parts sales and services
101,753
18,543
—
120,296
Total revenue
1,167,154
316,471
—
1,483,625
Cost of revenue
800,031
240,678
(19,186
)
b
1,021,523
Depreciation of rental equipment
157,110
22,757
3,817
c
183,684
Total cost of revenue
957,141
263,435
(15,369
)
1,205,207
Gross profit
210,013
53,036
15,369
278,418
Selling, general and administrative
155,783
34,428
—
190,211
Amortization
40,754
1,990
3,589
d
46,333
Non-rental depreciation
3,613
1,151
(213
)
d
4,551
Transaction expenses and other
51,830
5,254
(40,277
)
e
16,807
Total operating expenses
251,980
42,823
(36,901
)
257,902
Operating income (loss)
(41,967
)
10,213
52,270
20,516
Loss on extinguishment of debt
61,695
—
(61,695
)
f
—
Interest expense, net
72,843
9,992
(3,919
)
g
78,916
Finance and other expense (income)
571
(2,346
)
—
(1,775
)
Total other expense
135,109
7,646
(65,614
)
77,141
Income (loss) before taxes
(177,076
)
2,567
117,884
(56,625
)
Taxes
4,425
—
29,471
h
33,896
Net income (loss)
$
(181,501
)
$
2,567
$
88,413
$
(90,521
)
a.
The pro forma adjustments give effect to
the following as if they occurred on January 1, 2020: (i) the
Acquisition, (ii) the extinguishment of Nesco Holdings’ 2019 Credit
Facility and the prepayment of the Senior Secured Notes 2024 in
connection with the Acquisition and (iii) the extinguishment of the
outstanding borrowings of Custom Truck LP’s credit facility and
term loan that was repaid on the closing of the Acquisition.
b.
Represents adjustments to cost of revenue
for the reduction to depreciation expense for the difference
between historical depreciation and depreciation of the fair value
of the property and equipment acquired from the Acquisition.
c.
Represents the adjustment for depreciation
of rental fleet relating to the mark-up to fair value from purchase
accounting as a result of the Acquisition.
d.
Represents the differential in other
amortization and depreciation related to the fair value of the
identified intangible assets from purchase accounting as a result
of the Acquisition.
e.
Represents the elimination of transaction
expenses recognized in the Company’s consolidated financial
statements for the twelve months ended December 31, 2021. The
expenses were directly attributable to the Acquisition and are
reflected as adjustments to the comparable prior period ended
December 31, 2020 as if the Acquisition had occurred on January 1,
2020.
f.
Represents the elimination of the loss on
extinguishment of debt recognized in the Company’s consolidated
financial statements for the twelve months ended December 31, 2021
as though the repayment of the 2019 Credit Facility and the 2024
Secured Notes had occurred on January 1, 2020.
g.
Reflects the differential in interest
expense, inclusive of amortization of capitalized debt issuance
costs, related to the Company’s debt structure after the
Acquisition as though the following had occurred on January 1,
2020: (i) borrowings under the ABL Facility; (ii) repayment of the
2019 Credit Facility; (iii) repayment of the 2024 Secured Notes;
(iv) repayment of Custom Truck LP’s borrowings under its revolving
credit and term loan facility; and (v) the issuance of the 2029
Secured Notes.
h.
Reflects the adjustment to recognize the
tax impacts of the pro forma adjustments for which a tax expense is
recognized using a statutory tax rate of 25%.
Reconciliation of Actual or Pro Forma Combined Net Income (Loss)
to Actual or Pro Forma Adjusted EBITDA The
following table provides a reconciliation of actual or pro forma
combined net income (loss) to actual or pro forma Adjusted EBITDA:
Three Months Ended December
31,
Twelve Months Ended December
31,
(in $000s)
2022 Actual
2021 Pro Forma
2022 Actual
2021 Pro Forma
Net income (loss)
$
30,937
$
(2,675
)
$
38,905
$
(90,521
)
Interest expense
21,432
17,778
76,265
71,204
Income tax expense (benefit)
554
(5,697
)
7,827
33,896
Depreciation and amortization
52,362
63,106
223,483
243,570
EBITDA
105,285
72,512
346,480
258,149
Adjustments:
Non-cash purchase accounting impact
(a)
8,268
5,084
23,069
15,755
Transaction and process improvement costs
(b)
9,026
8,900
26,218
16,967
Sales-type lease adjustment (c)
1,411
3,757
5,204
8,185
Share-based payments (d)
2,771
4,597
12,297
17,870
Change in fair value of derivative and
warrants (e)
(2,277
)
739
(20,290
)
6,192
Adjusted EBITDA
$
124,484
$
95,589
$
392,978
$
323,118
(a)
Represents the non-cash impact of purchase
accounting, net of accumulated depreciation, on the cost of
equipment and inventory sold. The equipment and inventory acquired
received a purchase accounting step-up in basis, which is a
non-cash adjustment to the equipment cost pursuant to our credit
agreement.
(b)
Represents transaction and process
improvement costs related to acquisitions of businesses, including
the post-acquisition integration costs, which are recognized within
operating expenses in our Consolidated Statements of Operations and
Comprehensive Income (Loss). These expenses are comprised of
professional consultancy, legal, tax and accounting fees. Also
included are expenses associated with the integration of acquired
businesses. These expenses are presented as adjustments to net
income (loss) pursuant to our ABL Credit Agreement
(c)
Represents the impact of sales-type lease
accounting for certain leases containing RPOs, as the application
of sales-type lease accounting is not deemed to be representative
of the ongoing cash flows of the underlying rental contracts. The
adjustment is made pursuant to our credit agreement.
(d)
Represents non-cash share-based
compensation expense associated with the issuance of stock options
and restricted stock units.
(e)
Represents the charge to earnings for our
interest rate collar and the change in fair value of the liability
for warrants.
Reconciliation of Gross Profit
Excluding Rental Equipment Depreciation
(unaudited)
The following table presents the
reconciliation of gross profit excluding equipment
depreciation:
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Revenue
Rental revenue
$
127,829
$
114,131
$
464,039
$
370,067
$
115,010
Equipment sales
325,746
212,509
982,341
695,334
210,903
Parts sales and services
33,149
29,799
126,706
101,753
31,867
Total revenue
486,724
356,439
1,573,086
1,167,154
357,780
Cost of Revenue
Cost of rental revenue
27,481
28,012
110,272
99,885
28,207
Depreciation of rental equipment
40,803
45,934
171,703
157,110
42,612
Cost of equipment sales
260,391
183,449
805,852
618,444
173,588
Cost of parts sales and services
29,724
21,192
101,511
81,702
25,201
Total cost of revenue
358,399
278,587
1,189,338
957,141
269,608
Gross Profit
128,325
77,852
383,748
210,013
88,172
Plus: depreciation of rental equipment
40,803
45,934
171,703
157,110
42,612
Gross profit excluding depreciation of
rental equipment
$
169,128
$
123,786
$
555,451
$
367,123
$
130,784
Reconciliation of ERS Segment Gross and
Rental Profit Excluding Depreciation
(unaudited)
The following table presents the
reconciliation of ERS segment gross profit excluding equipment
depreciation:
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Revenue
Rental revenue
$
123,429
$
109,622
$
449,108
$
354,557
$
112,009
Equipment sales
78,472
35,294
212,146
105,435
37,121
Total revenue
201,901
144,916
661,254
459,992
149,130
Cost of Revenue
Cost of rental revenue
26,735
26,961
106,598
94,644
27,221
Cost of equipment sales
57,504
29,605
158,167
90,420
27,015
Depreciation of rental equipment
39,836
43,752
167,962
151,954
41,776
Total cost of revenue
124,075
100,318
432,727
337,018
96,012
Gross profit
77,826
44,598
228,527
122,974
53,118
Plus: depreciation of rental equipment
39,836
43,752
167,962
151,954
41,776
Gross profit excluding depreciation of
rental equipment
$
117,662
$
88,350
$
396,489
$
274,928
$
94,894
The following table presents the
reconciliation of ERS rental profit excluding equipment
depreciation:
Three Months Ended December
31,
Twelve Months Ended December
31,
Three Months Ended
September 30, 2022
(in $000s)
2022
2021
2022
2021
Rental revenue
$
123,429
$
109,622
$
449,108
$
354,557
$
112,009
Cost of rental revenue
26,735
26,961
106,598
94,644
27,221
Rental profit excluding depreciation of
rental equipment
$
96,694
$
82,661
$
342,510
$
259,913
$
84,788
Reconciliation of Net Debt
(unaudited)
The following table presents the
reconciliation of net debt:
(in $000s)
December 31, 2022
Current maturities of long-term debt
$
6,940
Current portion of finance lease
obligations
1,796
Long-term debt, net
1,354,766
Finance leases
3,206
Deferred financing fees
27,686
Less: cash and cash equivalents
(14,360
)
Net debt
$
1,380,034
Reconciliation of Net Leverage
Ratio
(unaudited)
The following table presents the
reconciliation of the net leverage ratio:
(in $000s)
Twelve Months Ended
December 31, 2022
Net debt
$
1,380,034
Divided by: Adjusted EBITDA
$
392,978
Net leverage ratio
3.51
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230314005920/en/
INVESTOR CONTACT Brian Perman, Vice President, Investor
Relations (844) 403-6138 investors@customtruck.com
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