Custom Truck One Source, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Custom Truck One Sources second quarter 2022 earnings conference call. Please note this conference call is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would like to hand the conference call over to your host today, Brian Perman, Vice President of Investor Relations for Custom Truck. Please go ahead.

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 with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during the call in 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'll be filing our second quarter 2022 10Q with the SEC this evening. 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 June 30, 2022 and prior periods. While our reported results can only include Custom Truck OneSource LP for the period since the April 1, 2021 merger date, 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, Ryan McMoneagle, President and COO, and Todd Barrett, Interim CFO. I will now turn the call over to Fred.

Thanks, Brian, and welcome everyone to today's call. I'd like to begin by thanking all of our employees, customers, and suppliers who supported our business and helped us navigate the challenges our industry continues to face. The entire team has worked tirelessly to continue to optimize our operations so we can fulfill our goals of providing incomparable service to our customers, growing our market share, and delivering value creation to our shareholders. Compared to the prior year quarter, we continue to deliver strong gross profits and adjusted EBITDA gains in Q2 despite lower revenues, which reflects the strength of the business combinations. Q2 revenue was down $13 million versus Q2 of 2021, highlighting the impact of continuing supply chain issues, particularly on new equipment sales. But as we discussed last quarter, we expected new truck sales to grow Q2 sequentially versus Q1. and they did. Additionally, we added 35 million more into our rental fleet in the second quarter than we did in the first quarter. Both of these developments demonstrated that our supply chain is continuing to improve. Our ERS business continues to perform very well with utilization increasing slightly for the quarter and 190 basis points higher than Q2 of 2021. Our TES business continues to see very strong demand with backlog growing to the record $664 million, almost three times what it was at the end of Q2 2021. Strong demand for both rental and new sales provides us the opportunity to focus on improving profitability and margin expansion. Finally, we're making good progress towards reducing our net leverage, which Todd will discuss later. Our second quarter results provided a very solid foundation for us to build on the rest of the year. They reflected the utilization of benefits of our one-stop-shop model and our focus on end markets that consistently exhibit strong underlying fundamentals and are less susceptible to cyclicality. While our forecast for the rest of this year is tempered by continued impact of global supply chain issues and inflation, we are confident that we will continue to navigate these to the best extent possible. During the second half of the year, we expect to see continued strong revenues adjusted EBITDA, and margin growth across all business segments. As an indicator of the confidence that the board and the management team have in the company's business plan and growth opportunities, the board recently approved a stock repurchasing program of up to $30 million to commence in the current quarter. We believe that the repurchase program is an appropriate tool to have during times of market volatility and can be an attractive use of our capital when deployed at suitable prices. Based on the strength of our balance sheet, we see significant opportunity to continue to invest and to grow our business. With that, I will turn it over to Ryan.