Custom Truck One Source, Inc.

Greetings and welcome to the Custom Truck OneSource Inc. Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Pullman. Thank you, Mr. Pullman. You may begin.

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 factor 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 will be filing our third 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 September 30th, 2022 and prior periods. While our reported results can only include Custom Truck OneSource LP for the period since the April 1st, 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, Brian McMoneagle, President and COO, and Chris Epergesi, 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 support our business and are helping us navigate the challenges our industry continues to face. The entire team continues to work tirelessly to maintain record levels of production so we can fulfill our goals of providing unrivaled service to our customers, growing our market share and creating value for our shareholders. Compared to the prior year quarter, we delivered strong gross profits and adjusted EBITDA gains as well as modest revenue growth. We delivered $91.6 million of adjusted EBITDA, up 9% versus the prior year while at the same time Q3 revenue was up slightly versus Q3 of 2021. Supply chain issues continue to impact us in the third quarter, but we were able to deploy $97 million into our rental fleet in the quarter, which is the most since the merger. Supply chain challenges impacted new equipment sales, which unfortunately did not see the sequential growth that we expected. While our supply chain continues to improve, issues remain remain and we are working diligently to end the year ahead into 2023 on the much improved footing our ers business continues to perform very well with utilization increased by 100 basis points for the quarter and by 250 basis points compared to q3 of 2021 our tes business continues to see very strong demand with backlog growing to a record of 709 million dollars more than two times what it was a year ago. Strong demand for both rental and new sales provide us the opportunity to focus on improving profitability through margin expansion. Finally, we remain well capitalized and are focused on reducing our net leverage, which Chris will discuss later. Our third quarter results provided continued momentum for us for Q4 and a very solid foundation as we've been looking forward towards next year. They reflect the realization of the benefits of our one-stop shop business model and our focus on end markets that consistently exhibit strong underlying fundamentals and are less susceptible to cyclicality. While our outlook for the rest of the year is tempered by the continued impact of global supply chain issues and inflation, we are confident that our team will continue to navigate these effectively. During the last quarter of the year, we expect to see continued strong revenue adjusted EBITDA margin growth across business segments. With that, I will turn it over to Ryan.