Custom Truck One Source, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to Custom Truck OneSource's second quarter 2021 earnings compass call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator, please press star 0. Please note this conference call is being recorded and management will be referring to slides currently available in the investor relations section of the company's website. I would now like to hand the conference call over to your host today, Brian Perman, Vice President of Investor Relations for Custom Trucks.

Thank you and good afternoon. Before we begin, we would like to remind you that management's commentary and responses to questions on today's call may include forward-looking statements which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the factors that could cause actual results to differ, please refer to the risk factors section of the company's filings at the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during the call and the press release issued today. The press release we issued this afternoon and the presentation for today's call are posted on the investor relations section of our website. Management will be referencing slides from the presentation during the call. We will be filing our 2021 second quarter 10Q with the SEC on Monday, August 16th. Today's discussion of our results of operations for Q2 2021 for Custom Truck OneSource Inc. or Custom Truck is presented on a historical basis as of or for the three months ended June 30th, 2021 required periods. While our reported results can only include Custom Truck OneSource LP for the period since the merger date, April 1st, we have presented and will be discussing today combined results as if NESCO and Custom Truck had operated together for all periods. We believe this is a better representation of how the combined company has performed over time. Joining me today are Fred Ross, CEO, Brian McConigle, President and COO, and Brad Meter, CFO. I will now turn the call over to Fred.

Thanks, Brian. I'd like to welcome everyone to the company's second quarter 2021 earnings call. It's been exactly 133 days since we closed the transaction between Custom Truck and Nesco. I couldn't be happier with the progress that we've made in integrating the two organizations. I'd like to extend my thanks and appreciation to all our employees, customers, and suppliers who have supported us during this process helped us achieve such strong results in our past quarter. I'd like to take a moment to touch on a few highlights and outline the key attributes that support our truly unique business model. Our strong second quarter results highlight the incredible performance by our team and demonstrate the continued strength of our strategically selected end markets. Compared to the second quarter last year, our combined revenue was up 27% and our adjusted EBITDA including certain charges was up 23%. Our truck and equipment sales business performing at record levels with revenue up 56% and backlog growing by 169% versus June of 2020 and at 89% versus June of 2019. Rental continues to perform very well with utilization holding at 81% for the quarter compared to 71% last year. In addition, we continue to see real opportunities to improve rental pricing, which Ryan will discuss in more detail. With existing high levels of utilization, we need to continue to grow our fleet to meet current strong rental demand. While our scale and supply relationships afford us excellent access to the chassis, attachments, and other items, we need to manufacture our trucks and grow our fleet. Our ability to fully take advantage of current level demands is being somewhat limited by our supply chain availability. We're working closely with our suppliers and are hopeful that any issues will be resolved in the coming quarters and allow us to grow our fleet to fully take advantage of continued strong demand. Our results are quite remarkable when you consider the ongoing custom truck Nesco integration efforts and the supply chain challenges and inflationary pressures most companies, including us, are facing these days. Please turn to page three. Our strong results reflect the unique business model we have developed over the years. We have intentionally focused our efforts on end markets that are resilient through the cycle and currently enjoy very strong tailings. Even before any potential benefits from the new infrastructure bill, a one-stop shop model provides us the speed to market needed to meet our customers' rental and sales demands, providing us with the maximum opportunity capture customer share of wallet and achieve very strong returns on capital. In addition, the model provides excellent flexibility, downside protection when market shifts. The combination of custom truck and Nesco has provided us with multiple avenues to capture both revenue and cost synergies, which we have already started to monetize. We have spent this last quarter, the first since the transaction closed, closely examining both businesses, which has uncovered new opportunities for growth, as well as highlighting parts of the business that we can further enhance. The combined businesses also provide additional scale, making CTAS the largest independent provider of vocational trucks in North America. That scale provides us the opportunity to have deep and meaningful relationships with our suppliers, which is incredibly important in today's environment. Our coast-to-coast network of 35 branches allows us to have a very flexible rental fleet and provide continuous and consistent service to our customers. And finally, we continue to maintain a very strong balance sheet and generate strong cash flow, providing us the resources to invest in additional capital and opportunities that are accretive to the business and long-term shareholder value. In summary, I could not be more excited about the future of our company. With that, I will turn it over to Ryan.