Custom Truck One Source, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Custom Truck OneSource's third quarter 2021 earnings conference 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. I would now like to hand the conference call over to your host today, Brian Perman, Vice President of Investor Relations for Custom Truck.

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 a 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 with 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. We will be filing our 2021 third quarter 10Q with the SEC next Monday, November 15th. Today's discussion of our results of operations for Custom Truck OneSource Inc., or Custom Truck, is presented on a historical basis as of or for the three months ended September 30th, 2021 and prior 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 pro forma combined results as if Nesco and Custom Truck had operated together for all periods. We believe such combined information is useful to compare how the combined company has performed over time. Joining me today are Fred Ross, CEO, Brian McMoneagle, 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 third quarter 2021 earnings call. This marks the second quarter with Custom Truck and Nesco operating as a combined company. The investment thesis on bringing the two companies together continues to be realized, with the integration progressing ahead of schedule and contributing significantly to the strong operating results we achieved this past quarter. I'd like to thank all of our employees, customers, and suppliers who continue to support our business and uphold our culture of core values. Turning to our financial results, our strong Q3 results highlight the incredible performance of our team, demonstrating the continued strength of our strategically selected markets on a pro forma basis compared to Q3 last year. Our combined revenue was up 18% and adjusted EBITDA was up 20%. Our TES business continued to perform at very strong levels with backlogs growing to a record $338 million, up by 52% versus the end of Q2 this year. Our ERS business continues to perform very well with utilization increasing to 81.4% for the quarter, up from 73.4% for the Q3 last year, and 80.9 in Q2 of 2021. In addition, we continue to implement a new rental pricing strategy, which Ryan will discuss in more details. As we discussed on last quarter's call, our high utilization supports further growth in the fleet to meet the strong rental demand. We made good progress in the third quarter, growing the fleet by 33 million, despite well-known supply chain limitations. We continue to capitalize on the benefits of our scale and our strong supplier relations to mitigate these issues. Our strong results reflect our unique and long-established business model, which focuses our efforts on end markets that are resilient through the economic cycle. All of our end markets currently exhibit very strong tailwinds. Our one-stop shop model provides us the speed to market need to meet our customers' rental and sales demands. providing us with the maximum opportunity to capture customer share of wallet and achieve very strong returns on capital. Synergies from the merger have helped improve both our segment margin and our market share. In addition, our strong balance sheet and solid free cash flow provide us the resources to selectively invest additional capital and opportunities that are accretive to the business and create long-term shareholder value. I could not be more excited about the future prospects for Custom Truck. Before I turn it over to Ryan, I would like to take a moment to talk about the ESG and custom truck. As we look to 2022 and start to move beyond the integration, we will use those core values shared across our entire organization as a basis for developing our environmental, social, and governance strategies. ESG will become an essential aspect to our corporate culture, and we know that it's important to our stakeholders, customers, partners across our business. My objective is for Custom Truck to become a leader in our industry as it relates to these important issues, and we look forward to updating you as our strategies take shape. With that, I will turn it over to Ryan.