CTOS - Earnings call transcript Q4 2021 | Custom Truck One Source, Inc.

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Operator

Hello and welcome to the Custom Truck One Source Fourth Quarter 2021 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Brian Perman, Vice President, Investor Relations. Please go ahead, sir.

Brian Perman

Thank you and good afternoon.

nature would to remind may questions statements, by we commentary that include begin, outside which responses and and on their we like company’s you to management’s forward-looking of Before the uncertain control. are today’s call

statements forward-looking management’s on results based beliefs, current differ materially. are and actual these Although expectations may

section results please refer to a some the of the differ, For company’s factors that with Risk to Factors of discussion of could the filings cause actual the SEC.

can you measures presentation that issued note website. reconciliations call of the on financial please Additionally, and issued for we non-GAAP historical find are our posted press the discussed in the the call, this afternoon release the Investor during today’s of today. Relations press release The section

XXXX on the Today’s with as be historical We prior December One SEC of for XX, our periods. presented will XXXX of and of discussion for the Inc., X Custom filing is a ended week. Source Truck, operations months year Truck results and our the full basis or Custom next or XX-K

company only pro Custom as Nesco While have is results for together can believe and combined and to Truck We we merger such April discussing for X, since results information time. include performed useful our XXXX date, LP Truck how One be presented had operated will forma has the reported combined combined period today Source the Custom the if all periods. over compare

CFO. me to call will the McMonagle, and now over Joining President COO; and Ross, Fred I Brad Meader, today are Ryan CEO; Fred. turn

Fred Ross

everyone to welcome call. like I’d Brian. to Thanks, today’s

company, Truck fiscal combination that successful. first has of report combined Nesco on As year clear operating Custom our the as been and is we it a

incredible like of growing market I’d can has industry the largely some year particularly to suppliers, With thank and customers, and unparalleled providing our the X focus further years. Strong all performance last service the our our supported QX share of our challenges delivering faced team. customers, who shareholders. our to highlight to creation for of our we business, by employees, full the given value on complete, the integration our business results

million on up adjusted slightly fully On and Looking charges was supply the million basis, equipment you despite of during and pro noted of of declined accounts chain compared adjusted quarter. compared continued inventory lower year was XXXX. a EBITDA QX a the quarter QX QX less up early $X to impact forma particularly the XX% of quarter, versus reserve XX% full on issues, QX prior the reflects part decline the revenues. This the adjust at $XX previous year basis receivable that in revenue we new than EBITDA for to XXXX. when sales

to XX.X% business utilization XXXX. the from XX.X% up QX increasing ERS perform XX.X% quarter, with of well increases for continues very QX XXXX of and Our to for in

appropriate cost control both price all done Our has to XXX% see has of and to for rental of a sales with record allowed has the find job efficiencies, our across an push margins us provided opportunity segments. business degree. fantastic team key increases, to us the with to price coupled operating up and expand very $XXX Those backlog growing end up continues since TES million, the QX XX% XXXX. Strong by of demand, just and end since business the new strong demand to

at approximately the reducing Xx leverage charges good the pro our just Finally, mentioned the for ending of year from fully after time X.Xx forma to we merger. down previously progress towards continue the make reserve below adjusting

possible Scale XXXX very end various and to customers’ sales to and underlying Our during strong greatest allowed external meet fundamentals. reflect benefits markets relationships and strong XXXX supplier our our that unique extent on results challenges. demands exhibit strong our us rental model navigate the business of to focus the

Our to XXXX. which begin or of markets, as the will outlook continued further the we benefits be for of reflects extended end XXXX in diversity see early late our excellent across infrastructure demands XXXX build hopefully

is issues that we by supply best and the outlook of navigate are possible. to continued confident we chain While impact inflation, to these extent tempered will our the continue

During continued prospects expect about I that, growth for I more see With business Truck. not to Custom be across could continued segments. will EBITDA it adjusted to strong turn XXXX, favorable our we over revenues, excited margin Overall, Ryan. the

Ryan McMonagle

everyone. afternoon good and Fred Thanks,

remains want of end-markets: I demand of telecom, the rail the tremendous achieved of selected infrastructure. last integration distribution and continued in and financial year. transmission to employees First, results regarding who strategically efforts delivering each our businesses, strong our comments echo primary or robust the Overall, Fred’s while four T&D,

at of trends these on to and long-term of in overall tiered in rent. rental and because continue pricing backlog, growth other OEC focus basis, our in as GDP business continued excess opportunities less outpace well in end-markets inflation, strong From the strategy. sequential new Infrastructure reflected cyclical margin the provide to markets. our backlogs customer rental the well we only our on fundamentals. as utilization the up to XX.X% markets portion of The metrics continue merger. extends incredibly time to continue continues for the the quarter, and demand. addition on for improved year than issues Pricing sales with be levels industry utility continue quarters, and and supply represent key fleet ability significant presenting and to drive deliver our reflecting Passing end selected experience our We the the implementation markets, across receiving base. some far pace down strong to of are further strengthens growing customers demand did limitation in expansion quarter, they perspective, certainly bodies. levels last desired a today our This to XXXX. We This truck-related the Bill compared impacted which of a growth our during product whole late our our is fundamentals QX. of meet cycle fleet $XX telecom On-rent intermittent million strong issues inventory the improvement performance namely in our still underlying demand increase and bolsters we contractors, yield significant ability good a chassis, to chain QX, inputs end rising our supply of at to customer $XX from trucks, inventory XX% improve, adequate with our recent rental for of the to to attachments at million and major by have grow the growing experienced end to but Over the versus

receive and attachments are relationships did and chassis year. in chassis and we strong the expect than Based we attachment XXXX our scale Given with to current last trends, OEMs, on we improvement the more will hopeful of continue to the we that that see is meaningful overall mitigate Inflation during XXXX. impacting supply half industry. back will during and our chain issues year

with market, as seeing particularly technicians for the cost wage as consistent production rest service are our inflation of for higher well of some the We inputs.

We input cost have customers possible. to certain as increases, opportunities to well both taken where price implement increases to pass-through reasonable as our

integration initiatives combination in is in, company profitability to while we part the We and the the run largely execute pressures most two well have as overall continue the ongoing maintaining that to environment to across an of take long relationships. view mindful expanding are as streams become offset the with customers gains margins deliver of continue inflationary the our taken. our our that perspective, point, from customer actions strong we From above. ensuring operating being the companies us allow these complete, how this objective combination the already of of inflationary expected At revenue mentioned

with that announced both Focusing overall a into to Leasing, briefly, year, selectively well leading the areas acquired M&A market. U.S. on in acquisition of strategy expand we This underserved of equipment we Canadian fits rental this provider and January rail Canada. in the to our HiRail

our expansion fleet TES our use acquisitions We and of Such APS. growth to a to and ERS, our site is all approach facilitate and share. expected greenfield segments: expect to increase and strategic three measured to both business benefit market revenue

well-positioned ahead because favorable of demand robust As gross EBITDA execution we believe tailwinds, our we margin to end-market adjusted growth and XXXX, deliver team. strong our look we and revenue, by are solid to customer

we efforts the to over to of of employees the opportunities like able challenges We during all advantage to as we multiple know our that We And the that without service. subside experience will of are take turn to many we sincere like are working we thank now together fully year deliver to see. to we be extend I’d last hopeful of it that will them. continue year, I Brad. results did supply wouldn’t who chain unmatched delivered customer a have you

Brad Meader

afternoon Thanks, good Ryan and everyone.

have Ryan As was indicated, Fred another QX strong and quarter.

up versus in drop total the versus pro as $X.XX of QX up pro revenue supply billion revenue forma revenue, XXXX in versus total we of pro calls. which improvement. approximately $XXX ‘XX $XXX previous includes in in discussed charges, $XX versus adjusted million, chain-driven EBITDA improvement year new decrease XXXX of million million taken $XXX While $XX forma adjusted million for which QX a XXXX. forma XXXX, pro would have sales, Despite our down was million, EBITDA X% forma a a XX% adjusted XX% XX% versus for of XXXX result quarter. Pro was been last QX full was and forma year-over-year EBITDA Without million QX, was charges $XXX in XX% these

mix, to of $XXX net the QX. midpoint slight for segments of focus improvement excluding quarter the revenue EBITDA XX% margin excluding QX. guidance for increase profit, full depreciation, forma X% nicely adjusted this pricing change quarter million loss a across compared million, which includes was million accounting The previously and improvement year, rental for with Pro was forma our XX.X% and pro XX.X%, XXXX. share-based quarter primarily XX.X% revenues, Reported driven depreciation, the $XXX margin gross in was for rentals Pro an $XX XXXX versus continued for or of QX. of by above up on revenue for $XX gross of the the the sequential for million million Our XX% expense. gross was was $X.X forma provided. revenue profit, a was is versus $X.X rental QX SG&A adjusted million compensation almost versus we

on to the XXXX OEC than XX.X%, up quarter, up the yield from rent for Turning Fred QX. from was XX% XXXX. our for quarter, was ERS $XX Average On-rent up our for within was XX.X% more referenced for quarter. the strong which million segment QX XX.X% also from previous segment our utilization and up XX.X% results. for versus QX

year the ended $X.XX OEC billion. Our at

job XX% turned Our of achieved as doing the There only excellent we’ve renewals upon we still strategy upside contract team an pricing call. QX discussed about is today. is during our executing to fleet the be

$XX expected originally churn sequentially. effect to see pace up as from it Overall, a ERS see by the $XXX result, for recently. up was more contract these slow rental of or the asset slightly continue combined All profit, the QX. ongoing fourth We longer discussed. the of Ryan take excluding Revenues issues. versus And impacted million revenue, believe was performance. excluding a will but operating depreciation, X% market million, performance have to factors of gross than ERS than QX. full to quarter fundamentals quarter chain our the that strong, $XXX to be ERS million seen in benefits strong down sales, two TES underlying we end in push supply continues were

across activity continues broad-based down, our $XXX extremely growing be sequentially with portfolio. was Growth strong to continues be sales to backlog our product revenue million. XX% very by While to

issues being for the market share strong reflects strong chain backlog believe and fully impediment demand in advantage the equipment as growth are the of take gains While in discipline. primarily we growing a supply as well sales our to demand, pricing our resulting to strong able TES temporary

of believe quarter. of inflation. last in improvement is to initiatives increases have net We in addition through our Based X% any backlog, even to with successful analysis to performance production business the place been of our countering the passing still the during Overall, happy with we on customers. implementation TES put underlying the in margin pressures we through inflationary X% XXXX, efficiency possible very are cost

the $XX margin, million million compared took a APS QX. actions depreciation, cost rental excluding in APS This we posted improve improvement from the reflects revenue business to improvement XX%, in earlier Our Gross continued XX% of in QX. XXXX the benefit of $XX structure. to was

an customers’ us suppliers strengthen that our of believe customers APS to a opportunity to presents larger our capture for with share wallet position and and continue alike. We

progress continued are necessary a to reflects in dedicated this the plan. While regard, profitable we resources strong, execute quarter to this business providing

in ‘XX, With will the had also same finished between position by on to strong our M&A. liquidity using rental rental just time acquisitions improving an are create QX. and EBITDA with the continued continue make the be adjusted $XX million outlook $XXX at $X.XX they investing project ‘XX below strong Xx fleet backlog, in We leverage reduction growth, In of on full the our than and borrowings million, supply we prudent addition pursuing balance January leverage ending balance I long-term use million fund fleet, adjusted decreased the current higher EBITDA if while year When available believe the ‘XX, the purchase outlook billion $XXX ours at million. Approximately strength, we and revenue ability outstanding at in of to the and goal leverage following EBITDA facility ABL year, to billion on and FY quarter market adjusted modestly and value. million. it the investments ‘XX $XXX the the of the year remains growth end Xx, expectations under respect to in we year-end, X.Xx million chain, the upsize revenue we we did between for shareholder we At ABL maintaining a to for early incremental should focus guidance. the through was is $X.XX with for selective based of end. to We look total $XXX the the and or providing needed. with so of note, HiRail to we achievable this by $XXX of current if a but from Leasing ABL the

segment Our adjusted outlook. three our first for year-on-year to revenue our XX% Recognizing EBITDA level XX%. provide to the of indicates guidance profiles transparency providing guidance to various time we’re margin growth of the also segments, added

revenue TES $XXX $XXX We revenue to to of million million, $XXX of million. $XXX million $XXX expect APS to million, $XXX revenue ERS million of and

reflects were do positive believe that We specific expect FY any making team first drive XX outlook of delivered accomplish to foresee the by performance aren’t supply remarkable. growth, incremental in cash our a cash continue year. level Ryan’s an guidance regarding to inflationary be providing execute environment while to highest not to still around past and the We we chain overall of excluding M&A an flow seen at but margin in reflects questions. continued adjusted the delivered this the expansion, but incredible turn Fred echo to the want and the ‘XX, the in service. the Truly open I and of to for market operator closing, I’ll With investments fleet. transformational flow, In comments line integration, feat, exceptional we years expand over to steady efforts adequately strength our in double-digit our challenges team They the half year. customer over the rental tremendous for ‘XX least asked EBITDA that, deliver it margins

Operator

is today Baird. from first Instructions] Justin Our [Operator question you. coming from Thank Hauke

is lien live. now Your

Justin Hauke

couple here TES, jump let weren’t afternoon, the so able a me But everyone. strongly the – that might I in. some there. you up to the for noted just the I the was maybe inventory was was and continuing just in But mean, then increase question, orders really rundown guess a revenue that is Thanks of just the backlog to increase? decline or ask were strong. couple I have it that well I’m you function as – Good backlog of the I here. Great. deliver and first curious, backlog’s obviously back

Ryan McMonagle

up as well. were Orders

it’s to And right just deliver chain constraining – from was perspective QX. now it is supply the ability So strong quarter a our order in then what’s an also. very

Justin Hauke

next in guess, lift margins thinking and of be XXXX, ‘XX if mostly know a had that margins. those of area And repair to I I that kind support margin might expand. kind then, sort help think one, define is of about able guys side. curious was guide you maybe and Okay. you of how much an year, specifically just the just to the about could the maintenance I the Nesco on this expense just elevated of

Brad Meader

Yes.

I you XX% margin, think of most and felt ‘XX. look on I’d at just something it’s when But rental, if on we’re right, really it break rental. core say just we certainly QX through core in kind down of you that our XX%,

I because, stream. revenue make we think think again, I that but in happen way now. QX, continues is a And good expansion year not that in through stabilized level from into next think so will pricing our much margin going – improvement decrease to the more its R&M as the I a

Justin Hauke

turn my Okay. That’s one last And guess I I helpful. over. before here it

on much HiRail are revenue XXXX, roughly? you how the but assuming staying guidance, in Just from

Brad Meader

In is on heavily ‘XX, I mean, the HiRail rental. business

not it’s there, to have it’s much in going I revenue So stream, the but an on overall $XX impact million-ish think, as around of year. next

Justin Hauke

turn will it I thanks. Okay, over.

Operator

Thank you.

Schneeberger Your Scott next Oppenheimer. from from question is coming

Your line is live. now

Scott Schneeberger

compare Could just and serve you the regard more markets bit each are demand Thanks. of the Thanks much. you’re to where market a wants chain kind very and supply the little little a and afternoon. talk of needs? about the to you what customer in end from seeing relative affecting Good that end contrasting issues demand also perspective with bit and a we

Ryan McMonagle

Good talk Sure. you. Scott. to Yes, start, to I’ll

talk really strong in of We’re four demand we seeing about. the all markets end that

So, T&D, to seeing we are continue increase demand there.

of of that some see reported contractors. the backlog, traded You publicly backlog, some utility the in the

So growth good we’re seeing there.

We’re seeing on telecom. strong demand

that. see to continuing We’re

sell infrastructure, and now we’re side of some both we rail seeing side. We’re Obviously, more And providers hold we’re some continue the too. railroad and seeing to on more of seeing then telecom the both broadly, that grow. addition opportunities in demand equipment robust the rent HiRail, then to on are there, contractor the seeing with And also.

we those those strong really or the not really anticipate projects really infrastructure equipment heading – like be coming And will XXXX. for seeing where feel of at – start are had people yet, year where will impact too, will this we’re to end into right? We be areas, bill any the demand. has very that for asking So

from then, the into a inventory we Scott, end goods in and that supply whole – So We perspective. chain grow year. actually the of saw mentioned our comments

to continue it far in so seeing XXXX. are We slightly build

to same are at really the So the that’s and it’s right up to – for match able time But us chassis of build. Scott, the the positives. just attachment showing those at the time be

So continue to we sure, seeing this later it’s will improve but think are we improvements that for – year.

Scott Schneeberger

Thank you.

could how we and you about if your that? the understanding customers Just to price talk are on price they to the approaching or the ability interactions your environment? How Are with increases? cost in the and completed not shore, due to out to chain an And sounds portfolio but in constraints supply then get product as is customer. the ability the fast it like turning to are in

that So in a pricing be how you’ve to it the back you is – in And bit pressures. little you – if could in that pricing you guidance, of the on that going. half inflationary Is feel more cover mentioned your how that delays covered the that I’m mentioned curious year. is confident inflation. should increase the delve stronger just you

you bit provide support could doing Thanks. how if you’re more Just on that? a little

Brad Meader

even turn of those in, just it. historically, a the to start I of there. is tight, those we embedded back And project customer seen over holding is reaction that out days, Scott, a Yes, is the be he take conversations. And longer, we he going But where would attribute yes, which I now comment, is slow XX of had back in real. turn when gap piece I in churn bit. so will to to is churn in give churn XX it And lot equipment days, a They to so little is out what needs of the fear it to strong, a think and the demand with this contract maybe of on supply terms contractor, Fred have comment Brad. the equipment, if a they of won’t will it start kind questions are there able

that is benefit that we incurring equipment there a not the the the holding to R&M we – and in extent utilization. are the touching Now, and to are

the unit and rent back, that. to days So, a comes turn if expense and the it a takes on get roughly piece without R&M then in revenue flowing incur it we back through us XX

than is point, to in while just going it price churn of ROI, look some So, will had to But When slowing the that take low-hanging to the you on do some not the are bit all the anticipated through, getting look of by majority – right. I at are a will we turn, contracts it’s seeing just kind and price us duration where that’s little it the the does increases And the benefit we next that growth think longer extend think our year. there we have because fruit, R&M they increase, right. rate at cost. at come because the

So, if we ORI, you compare QX are to QX X%. X.X%, like up for

singles room said to there, we so of will to of pushing more terms Fred kind sales in turn still high backlog. low but were and market before have it But I on reaction over We come. price we are to to increase doubles, halfway

Fred Ross

of everything, doesn’t same problem. every or world. all matter. day, seem same the living the the are really in the cars, They it to is all So, trucks accepting living price see – fuel, whether Everybody is increases we without market any it’s in

equipment As equipment. far our customers more the to pay money. are are our as that, they have – getting to our competitors Because we to are mostly than our we happy of far get are and customers look, going believe more understand relationships,

We anybody. gigging not are

and passing just fair are we getting amount We any on the not really pushback. are

it. of matter to just I they a think are happy As fact, get

or will any and we the the to backlog. know that build competition pick margin to be been pick able pass sense believe build equipment the and trouble up them, are continuing we because able employees getting our have have more don’t We continue trucks them. more of expand still the and that a makes to lot able have we it to doesn’t when up increases any to are our to we we of so and And – on

Now, as and go weeks will and it be end of the get months to the – it’s to year. to by hopefully normalized by going the even better

Scott Schneeberger

Fred. Alright. that, Thanks and guys I appreciate

within what that may, more in have be I one going M&A and was going to You that actually answer. if covered would I sneak I on follow-up am appetite. to

you would talk So, see potential M&A come areas and, you maybe you this the year did and possibility. and certainly HiRail willing presents to alluded in just or in the in size? And that you remarks to prepared what needle what’s Can if are I right release embedded the more you is current in that itself. think to environment question is, the how much leverage the opportunity move a

curious you that Thanks. Just weigh how factor?

Ryan McMonagle

and I Ryan. it’s let on leverage. But will finish Brad opportunistic. I be Scott, we Sure, still will will start then

that talked we too. the think So, we grow about, the business, expand of is footprint a side we of make sense rental our as places continue there we as couple and as to

to from that be much, are transactions still are these overall at. transactions say are that similar the And leverage don’t dollar HiRail I I right, on small opportunistic, it think looking will increase size would will we an a but So, that we standpoint.

Brad Meader

It mean at are won’t right now. at than are be able attractive all. – think are we them to much evaluating the I that will up, very move we the of Yes. opportunities needle leverage-wise pick most I we multiples where

this progression. at don’t that have it leverage target based list I the we the it of up, think is in would point. opinion, takes slow All I on really do, again, think our

Scott Schneeberger

it. I Thanks. it Got appreciate guys.

Operator

Thanks.

Noelle Our Stifel. Dilts is next from question coming from

now Your line is live.

Noelle Dilts

the just of, of if probably year. speak sort year. Congrats that potential are a the was eases. the you how it about of I hoping how investments? on that are that I thinking dependent recognize Thanks. just sort you lot you for you of could thinking strong about chain, how the is could discuss range on supply But CapEx to

Brad Meader

in Yes. from goal Thanks CapEx will term From that mid on standpoint, Noelle, that think longer is said our consistent for a with a to I what fleet digit targeting this Brad. upper-single be growth ‘XX us. our number. is, we view standpoint, joining

is today size fleet the billion. So, $X.X about

call size, it, the million CapEx, then I $XXX standpoint, similar from right. million. replacement to And growth there spend a is think So, $XX again, net

are keep assets. timing. our and plus we on hold pretty kind to the things it come are think churn And sitting your I with X-year I most But line to as few turnover minus dependent you – feel feel But or there, a supply think I upon point, X-year in to think today, when points comfortable. is of targeting mid-teens that we see could on of very or in heavily in. fleet we chain right, I here the depending –

to look QX, at weighted As we spend the than look the half because back here And weighted. different be do we in get we hopefully, spend that bit lot to now more later think just of stages at XXXX ramp up disrupted supply improves, supply it, going chain, whole as as point, CapEx – half will we this the the a back I think in do CapEx call QX, saw then into first But we in half. is QX. the chain is

Noelle Dilts

utilization about then to potentially again, some early trends, max theoretical And how talked speak to here, of supply being in with year the point. Great. that part chain Thanks. into you have the next mid-XXs, you the getting how maybe that about utilization and just Okay. sustainability you are Could of thinking easing?

Brad Meader

XX%, for we then what QX, for will of your quarter, were finished Yes. I to I point, start we be lend it max. is But kind getting any theoretical XX% nearer will in to a the which comments. additional we – and to Ryan believe

to through right where running team is really putting up and our turned, now and of demand it the performance is kind that the the Given right. keep the assets exceptional and in field

We Ryan, seeing QX we, this are we have a QX pullback. past was And Fred, here. for since utilization much been the of myself slowdown didn’t strongest us seen QX have not either. year

see normally You really a didn’t December happen. dip that

traditional have seasonal pullback strong see QX. in and the in gate at point We we the happening much of dips anticipating have we don’t past. So, out this those of started a pretty aren’t like

Noelle Dilts

much. very Thanks Okay.

Operator

Thanks.

Our next CJS from question Crist Stefanos is Securities. coming from today

live. Your is now line

Stefanos Crist

little as my that have Hey or HiRail? unknown What have run And guys. Can you maybe you? a you Thanks we taking about questions. the to for been any with acquisition, was about synergies attractive into? acquisition talk challenges bit more dealing

Ryan McMonagle

The was would Eastern we things. us interesting I been say One, Yes. well. is two is have acquisition in what really going Canada. looking for

So, we of we the Canada Eastern sector. the footprint having like in rail a like idea and

a lot that us, reasons the for of So two I it made think sense. those were

the their standpoint, We an there are relationships going I customers. really think with impressed have they with And it’s integration the and team from well. up

feel about the opportunity think kind also some customer Canadian grow now the to into I of Custom more to more sell broadly product broadly. that and Truck then for opportunity base we good of

feeling we So, so are about good far. things really

Brad Meader

a I They lean. it was From mean synergy Yes. it held. family and deal, it a was small standpoint, ran pretty

just find some that existing but customer to that we we base customer at of customers. are a their really standpoint, portion where on more are lot which combining category, is base. we they focused So, to the have have, look to ability in some from where somewhat synergy will opportunity, out limited their extremely a capital with revenue a not of the revenue were and cost the and in expand certain they we come deep, It’s think different the relationships CTOS then product those upside, need in some upside from see of ways Nesco represent

Stefanos Crist

that talk And then still growth Great. do you what of of guess just end you are XXXX, were fleet able you persist hit the touching will to the the in to guidance? for about if be year, kind on And there? you can I issues throughout think supply chain expecting the guidance

Brad Meader

Yes. digit growth – of say fleet there mid-single mid-single midpoint that a the I low would standpoint, assumes from to kind fleet-wise.

lot upper X%, the kind that think to end, where I On a in it the stays is getting pricing. that of from you see challenging. what’s are chain – exactly to is X% it still We be bit growth opportunity assumed could If a the of supply there today, there. X%

some shoots supply the As we seeing green Ryan are from mentioned, side.

is there So, improvement.

right further – the reflect have supply of limited we of to risk are on sized EBITDA kind what chain downside kind on range, we seeing range, or think I downside improvement now. appropriately based some the

surprised, but that we we again, put comfortable there. very So, out with feel could ranges I think guidance we get the

Stefanos Crist

guys. Thanks Perfect.

Operator

the have further end We would to the closing like for turn or floor of over Instructions] any [Operator comments. question-and-answer I our reached back session.

Fred Ross

Truck. our reach call. concludes Thanks, the speaking for Thank today. you. In to any in hesitate quarterly to Custom our next that Well, questions. earnings out don’t please with forward the interest everyone, call We with you look meantime, on

Operator

and you. Thank does conclude That today’s teleconference webcast.

for your today. your disconnect time, at and a you day. wonderful line this may participation thank We have You

Custom Truck One Source (CTOS) 11 Mar 222021 Q4 Earnings call transcript