Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Custom Truck One Sources. Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]

I would like to hand the conference call over to your host today, Brian Perman, Vice President of Investor Relations for Custom Truck.

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 that note reconciliations call of the financial please Additionally, issued non-GAAP historical find discussed in the the during today. press release

The press We Truck December operations the Today’s release Source prior Relations investor XXXX, is as of afternoon, the custom our we the of discussion truck, historical Custom posted ended of section with on and afternoon. for filed periods. our presentation of Investor issued or this results months on or quarterly XX, for XXXX this presented XX Inc., website. a basis our and XX-Q and are One SEC three our

such combined will Nesco While discussing only combination, Truck Custom performed believe the for we has LP XXXX the April include combined presented date references since our the have and together can company OneSource, information period results compare and X, Truck useful pro-forma the business if Custom pro-forma today for XXXX results results reported to combined We operated is as All of and are be a comparisons had all periods. basis. made how over-time. on to

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

Fred Ross

customers, providing thanking our unrivaled shareholders. continues market fantastic industry creating results, today's we The supported welcome growing like customers, our fulfill call. service year. of and and to as helped employees, our entire team begin for production everyone so to to our all by suppliers, share, I'd navigated we to challenges achieve business can our levels our Thanks our the who record tirelessly us on of of our goals last and work and faced maintain value Brian

we million the revenue EBITDA gross up respectively a and adjusted generated quarter, profits, in is revenues, $XXX of XX% of XXXX. in and for sales the $XXX million We versus delivered quarter, which million of and We Last QX, adjusted of record new QX sold $XXX quarterly record adjusted equipment organization. XX% EBITDA.

to to million quarter. continue Additionally, grow net OEC $XX of we adding the the fleet

closely our supply to While year our working with improve, continue have be vendors XXXX address last are remaining to issues than chain we and better continues to the year. a

continues utilization ERS business to very basis prior increasing points by over perform well with the Our XXX quarter.

to million, XX% business a than Strong us sales very year than expansion. the provide opportunity see ago. for demand growing continues a Our of more strong focus with TES backlog profitability through to $XXX on rental improving record margin demand both higher new to and

our And finally, will focus Chris capitalized well net discuss reducing leverage, and on we remain our later. which

for this foundation provided strong year. fourth for us continued results and Our quarter momentum a

results confident will are deliver and team We to our strong during that well execute continue XXXX.

see segments. to business and our expect across grows We all strong gross adjusted revenue, adjusted EBITDA continued profit,

ahead. from life. I in something of the in years what the they CEO of founding Leading career. my one accomplishments will after more for ability our I forward years passionate the I'm is custom than more Custom rest in customers seeing I confident been leadership Ryan have Building years has the his look my truck leadership been and about serving with worked I XX achieve this and entire have Truck team. eight to our As ago, next employees than retire business role greatest week. of

call the turn now I'll that, to With over Ryan.

Ryan McMonagle

your for created and grateful to I leadership at enduring here Thank that the the I Custom to tremendously am guidance. legacy upon have you build honored deeply you, Truck. opportunity Fred. am

want I CEO, forward Custom the to and and customers, more leading objective equipment Truck America. to One our provider in our grow serve specialized to Source and As establish our create trucks develop continue push North employees opportunities to as solutions for of heavy

Demand our remains strong of markets, T&D, end selected in and each four rail strategically infrastructure. primary telecom,

compelling reported the foreseeable largest to customer these and believe continue well base, future. telecom utility for seen and contractors, be the record continue This strong or near that in the and excess at opportunities, can We levels. offer extremely should backlogs markets of long-term GDP of be our which to growth in

in and performance and We sales both reflected see new backlog the performance. rental fleet's fleet's our this the rental

and believe quarter in the Additionally, which in to and years, rent we continue both the positive we rental fleet, see the of leading of fleet in from aged for Strong in remains sustained our purchase to industry. our rental demand in youngestt investment sales demand. customers we X.X indicator the as resulted assets the assets experience a which fleet reduction age to certain the strong

to Continued our last significant headwind meet supply ability were only year. demand chain the customer to issues

relationships of see During by received, levels QX, was we inventory. inventory our and more and compared our saw in which which positive million and efforts year. our up improvements QX, to Overall, as from continue we for deliveries last we solid vendor as strong reflected team, with we inventory than positions our to the $XX our of during XX%, XXXX. near a of production increased increased well growing and in chassis of experience the number record QX flows QX. attachments Because suppliers indicator versus

fleet CapEx of second did in target than year $XXX we gross of Myrtle the last second fleet the deploying the $XXX in our first million into in half, the versus half. rental more met the half We to first in half adding the million

to year-over-year investing ensure our TES. and we of the the met we TES remain in optimizing goal deliver our quarter. levels growth expect We fourth sequential customers both in and stated our on from segment service also quarterly revenue production Strategically, focused our

well deliver the system in deliver fourth continues our to expected fourth the was confidence our performed investments XXXX, quarter, and we quarter in production results volumes very deliver in Our made, infrastructure have far. volumes. XXXX record and the so strong can able provide we In sales organization team to

We to support service footprint ensure we will to growth. and our continue rental organization can invest fleet our in

adjusted As truck in-market adjusted we custom look ahead demand, to year, profit this EBITDA deliver believe tailwinds, continued supply customer and all growth. strong our that robust team, execution we and chain by favorable positioned improving revenue gross to solid

sincere from in $XXX the billion adjusted $X.XX range discuss million outlook While revenue Chris in greater XXXX to our will delivering service. $XXX you and record year, are We total to key employees to know to financial We the detail, like last million. are results of them. extend billion, a saw our an the EBITDA projecting I'd to unmatched XXXX currently thank and we customer $X.XX

I Chris. it will over to turn now

Chris Eperjesy

Ryan. Thanks,

despite indicated compared and As a to was QX XX% sequential versus to record recorded, the XX -- revenue the million a XX% total was face was supply QX results and to prior we QX up Ryan challenges, Fred growth. million, XX% improvement $XXX have quarter. continued EBITDA XXXX XX% and compared XXXX chain of $XXX Adjusted

since for adjusted was up XXXX. the EBITDA the highest all XX% million, combination. income XXXX, the For quarter Net to was $XX.X of compared

million both representing a down down QX marginally from of rental as quarter almost was XXXX TES depreciation margin from improvement year, our Gross and $XX all across XX.X% QX. in operating gross mix. gross XX% million, and last adjusted of revenues, our was profit XX.X% significant SG&A of by in last adjusted versus XX.X% XX% solely for focus segment, experienced from ERS margin segments of $XXX quarter for which or for down excluding strategic primarily both driven on result is pricing an the QX

versus by utilization our QX more up increased was compared which on than for quarter, referenced points was basis QX up million QX. ERS yield basis segment segment our than quarter was continued and to last compared and a rent Turning results, Average for for up up XX.X% for more quarter, within On from quarter. XXX XX.X% to XXXX the points to XX% from strong our hundred Fred the million up previous and XX%, rent OEC for XXXX XXXX. $XXX $XX the

the than continue we million have in new million $X.XX rental in quarter, We $XXX of fleet ended by most in year. Our OEC $XX deployed heavily million for CapEx in the ever our the up into more a the billion year equipment at to XXXX. the and quarter in is expect the $XX deployed we fleet to which quarter, and invest

XXXX million, XX% a ERS versus QX. QX a versus rental increase was XX% QX, increase and $XXX revenue For

XXXX ERS gross decrease QX QX Gross strong a a QX. XXXX for from revenue gross Reflecting equipment more excluding record essentially up QX. million margin asset record flat from QX, depreciation solely mix quarter improve, result more regarding rental than XXX% QX. a from gross than QX and comments for and to to of and for XXX% million as up $XX from up demand quarter $XXX margin purchases, XX% XX% versus rental adjusted from were the as ERS our sales was rental rental was adjusted sales continued profit margin a was up XX.X%, Adjusted last

the which continued $XXX by million of in quarterly this record a segment increased Gross and levels QX, quarter record to strong $XXX XXXX of in from flows profit record revenues we sequentially. sequentially TES, than inventory were compared more than For in by XX% backlog, than million, with XX% benefited achieved from XX% more as near up QX more production.

was XX% in basis point QX. and for a gross improvement up XX%, quarter the from TES XXX from XXXX margin QX

than from broad QX our to be product more million. across activity sales was continues strong Our sequentially strength with growing portfolio. to X% based backlog by $XXX extremely very This

to discipline. albeit equipment of to share level of dynamics, and in market demand, market fully backlog sales we advantage in our the strong continued growth our issues, indicative at our moderated our favorable reflects ability resulting for pricing gains, growing near demand believe end term chain supply are headwinds TES strong take a the While

to We been encountering price in implementation our with ongoing have favorable of inflationary initiatives efficiency customers. through addition gaining increases successful the production pressures

this even margins ABLe results with elevated we or levels As coming are will TES hold improve the confident quarter's quarters, over of be show, we inflation. to

Our posted X% $XX over up versus revenue X% and of million XXXX business QX. APS QX of

us $X position, was negatively program, announced previously rental margin the as in our M&A. for impacted costs profit segment repurchase due maintaining leverage Pursuant fleet product to through higher do remain mix. the stock in selective growth in purchased Gross and quarter. inventory investing stock of to liquidity strategic we by shifts million priorities a strong improving pursuing our the during

$X also $XXX of million We with suppressed we under outstanding at$ our at ending had ABL. December ABL XXX available under of the availability million the borrowings and year XX, million as by million reduced balance $XXX the

with XXXX over finished under to facility $XXX the transaction the times LTM improvement than an turn more and the With down times upsize we leverage of quarter. ability from of a the adjusted net just with last just of EBITDA million, since X.X close X.X

target Achieving three one leverage we times by can our fiscal below of achieve and believe XXXX. remains end the that we

they to well believe purchases and respect value. We believe will prudent acquisitions outlook, incremental equipment create demand XXXX. will units, seek rental our our we continue benefit long-term as when XXXX strong particularly we shareholder to older from customers in of ERS continue fleet as investments for make to from to rental With

more to to improved level ability single exiting digits TES record and mid chain and produce XXXX in level expect Nesco and high backlog fleet record grow also We rental improvements, supply backlog to further improve deliver XXXX. our levels by should our units inventory regarding

$XXX We our $XXX $XXX of and is we million. APS follows, between are revenue TES between revenue the as and of $XXX in $XXX million. guidance revenue of ERS to for and million range expect $XXX providing segments

leverage, Nesco XXXX in that we the environment, the challenges results to transformational EBITDA to growth, performance. and total Fred's margins million. $X.XX As double record Ryan EBITDA a I an this revenue regarding Ryan's integration and reduced want projecting continue highest closing, we and levels Despite of $X.XX service. we significant executed to customer inflationary XXX in expanded from In the our to have deliver of comments delivered mentioned experienced, billion with are previously, digit adjusted range billion, adjusted in XXX echo

With operator to I turn to line that, open for it questions. the will over the

Operator

Thank you.

session. question. with Please We you, [Operator is question will and Oppenheimer. your now Thank and our first Scott with answer be conducting from Instructions]. proceed Berger question a

Scott Berger

it still on Thank the it Good My the important excellent of question, chain. in afternoon out were like the, feels It, on, end you there it. yet there most much. question the, -- very the all. is supply I, was first the supply demand constraints XXXX,

bit more love I'd bit just call, a talk but You you're what suppliers. guys here from about highlighted on it the if this a little you seeing

if a, better gotten it's into could said and, confidence and you give and, clearing level the into, for You for and, up gives you're take what what that two you 'XX? but guy and just deeper to chassis a you allowing seeing or on that Thanks. us you attachments, have both and

Ryan McMonagle

Ryan. Sure. seeing are in Scott, and you so good in chain last side, one. I, the quarter. improvement where over XX% made comments supply referenced good up to About receipts we I'll that was on it start was it's QX we, hear we from fourth we but inventory, it's, our Scott, it two

really And inventory so levels as as we then positive sign, well are a sequentially. and take that up

to we're too. production are flow and And so improve of seeing that we we then are seeing things seeing the continue side

side chassis partners. good things chassis seeing and the I'd too, where say partners our we're with and relationships have inflows of continued side right the to, the feeling to we on our So, good attachment with have there. on We're good with chassis, now

seeing So as well. both we're and we our who have with, bodies I attachment to additional and bodies chassis good partners the think can help on as are with flows us side, then identify with the well,

good we're March. middle the and sitting feeling so in of here So,

start of I chain prepared to supply as off think, the good comments, is a well. year the in said a, as some standpoint from a we from

Scott Berger

it bit just market good. you like areas. more bill base the a And, from, seeing little seen across what from infrastructure on, from end a little perspective bit markets? demand, flow Sounds benefits the any you're discernible broad we the funds but discuss sounds speak of or of any, each Can maybe and a yet? kind little end Thanks. Have bit

Ryan McMonagle

so also is with doing expanding are then and, of products. look sales are, high, you infrastructure is are our, Yeah, do the if, well. on rental up yeah, part and left I'll start or, with which, Fred, usually trucks trucks, well, those, if and is basically at want and you dump high, to, really pure Demand water fleet those

a think I, been beginning is of of, see and we've it I we're now. that beginning and half think starting a year So for infrastructure about the to lift so, the or I, talking

and, we I is see the very most immediately, think that's Scott, that's, and bill the still, utility utility, are we infrastructure So bullish still then broadly. where on we're

customer's backlog. comment around Both and in that made transmission distribution in, the remarks prepared our

good, And to equipment from an continues continuing transmission we're from and for that to then standpoint from a and us segment. see for area good strong So in-market demand both both railroad a standpoint demand and distribution. then be a just share gain

perform smaller And said well, and, as we're telecom infrastructure. the to then to, on us, the growth see for we're a in continues telecom infrastructure and in, to bill, which again, segment continues seeing in most but is Fred continuing

good You or on, markets. permit, those know the there's and still any to projects typically longer hard shovel utility to are seeing end say seeing, ready of take the telecom all on demand four if side, in but,

Scott Berger

record with, like What, the and, are thinking as you CapEx, about step with XXXX, and how are I about how taking higher it, how thinking that year? XXXX a but you easing further, upcoming would and sounds this a It versus in you CapEx And, it for about imagine and, sounds CapEx flow maybe cash company. free are thinking constraints good. combined

Chris Eperjesy

Yeah, hi It's Chris. Scott.

OEC. We've high this to are net XXXX. digit in single guidance growth of given year mid think I we

that see to range. towards continue and end We XXXX that the extending probably higher into of

terms we've debt. of guidance we In are get of you the in our our of terms kind terms goal math to of we, on can said Xx, do where is pre below cash flow, that in

cash make definitely the any in just beyond we positive significant fleet any or, guidance So cash some additional year. a free should But the see we this do and absent m gave flow rental investments we activity you flow you. should positive free see

Scott Berger

the looking expecting is what just will development that older Thanks. a that purchased, most? but just kind one that's Appreciate you that a remarks, the quick from what's little in all, context nuanced of a, comment? that's equipment. of There, inflationary I it. from, comment I'll be rental on, for customers comment turn What, was? to that with be -- Is this -- you was the, more think on in particularly the Thanks. question. it fleet of over the environment equipment one prepared there good older more where just bit think a

Ryan McMonagle

that's Yeah, together of fleets that's of legacy Scott, bringing, in we've terms legacy CTOS and older the the disposing of, and bringing of some really just what of the, continuation talked NESCO some about assets. of

of a that looked then have new and strong So it's, equipment because it's also. continue fleet a our good the available the values used plus time stay point, is stayed your equipment, now have I combined continue to think and to for is assets the part then residual we to just like to been of, grow function to replace that partly supply strong dispose of and fleet improving, more fact chain to rental what

Operator

you. Thank

question please with is your Companies, proceed Shlisky Davidson next from with Our D.A. Michael question.

Michael Shlisky

taking of units Thanks new guess you XXXX? Hi, do policy like, get those afternoon. maintain the that all think utilization going It, them, you you're good most are at it for of whether XXXX I customers Thanks. and need a wondering looks can from the question. a the quite bit the spoken for fleet utilization good and here? year the kind the already feel end Want to into for of I'm for be my to growing

Ryan McMonagle

from talk held to we has mentioned through utilization right? I good standpoint overall an in Yes, utilization we, was to Yes, you. up so we're we we, and feeling strong QX. the Mike, that far QX So XX%, good good year so -- think, to strong to utilization, very finished utilization about

demand feeling so, we are good from And standpoint. a

a We that from utilization see but it. we the against of but, we're the adding of a whole staying work portion equipment has year reservation equipment significant that we full don't year a new have through 'XX. visibility reservation far forward have, of We the quite standpoint, new strong

Michael Shlisky

curious whether had Okay. your just XXXX coming in on at also update all? you comments, locations new I'm you us in on your your in mentioned footprint. investing you if eye have any

Ryan McMonagle

that certainly in need are, site Pacific nothing to report kind are looking know Southwest deck those the mar, markets, at Carolinas so working where Northern of New target our markets those mentioned but, and New There certainly or footprint from California the and target we markets we're Northwest actively on. we, investor and the all both and we focused Greenfield that think and regional are I we're then also and a to, as well. to those of opening the m we broad those the mentioned in look so our Jersey, we've York a and up to new add kind imminent a to in at location, opportunities markets local six

Michael Shlisky

Okay. on And me maybe is of the for new the pricing equipment last one XXXX. in

you've success along passing it's far, more to had optimistic grow to be room in you costs? just with pricing but more XXXX higher got than going to think not and You've so do

Ryan McMonagle

I kind think we've of always dictate market taken the let the pricing. let's view of

be pass grow, just closely we so to increases continue where to, with be be also how seems able to to our and we've pricing customers to them seems work backlogs react then market along see equipment. to And the to as to cost tried

Thanks so much. there it I'll leave guys. Okay.

Operator

Thank you.

Kenneth is with Citigroup. from question. your Please with Chung Our next question proceed

Kenneth Chung

afternoon. Good Thank you guys.

there's mean handholding in and give but a us any you parameters you're that cadence through factors 'XX, the chain all kind either by end issues, of just perspective perspective, on full or has a help provide of I quarterly been a in EBITDA an March. kinds and question would of that disrupted to from given seasonality Can provide especially as a terms 'XX, from seasonality the, any just the halfway if can revenue supply you in sense perspective? just any almost first that The the year from you

Chris Eperjesy

is Tim, Yeah, this Hi sure. Chris.

XXish EBITDA, general As terms years some we half. but if been second percent, past of it's I our roughly split think give don't quarterly you first to half back the look give guidance, just in XX%, you color, two

revenue quarter, that similar flow so as strong qX. a think as I would that's give just our fourth kind are probably in in in I XXXX. that's, We split growth XXXX. of about terms But We single mid had and in you probably more extremely QX much for of expect cadence digit was expectations for similar now. right EBITDA can in

growth last on So XX, kind of second versus of EBITDA first digit XX, in QX half, and half, mid year. QX single

Kenneth Chung

on, back good. one Got that's, you. that's rental then it. fleet. Thank to That's the on just and another on going That's, helpful

to that? digits. they single I sales should faster the, So to high Any of gross would, use XX? pace in I mid we in net that versus the we continue there grow to Or the guess than of, think terms high expectation closer, help did should the at how about assume a CapEx?

Chris Eperjesy

Yeah, our you think close that of the, to year. neighborhood terms of, And it's terms get on we're, to of and in expectation in be in I kind saw what asset million CapEx digit. the that so I of sales, net to rental directional XXX the can the going the right you this to similar now is, high think to single calculate mid

Kenneth Chung

it. Got

it extend a, good I to speaks beyond visibility, a I of backlog, don't backlog, mean assume ending like there it, your know, it's should of I within then or the that? Very know of back of be on, backlog the I we is the of the, some Does, TES just mid-point your on XXish don’t XXish Okay. guidance, that's, lastly are I 'XX that And guide. would revenue but mindful percent is, that good. mean would fairly of does the percent obviously things out? call you that level

Chris Eperjesy

it, backlog. of expect of a delivered say it year XXXX, will but 'XX. the extend the just if be of exact out that's into unique majority product this some the would will, could depending But, spec of I extend beyond in you But really the majority truck it, on, of some in, 'XX, far will in, can Some that of that, be

Kenneth Chung

big not a Okay but, not but So a material amount. deal,

yeah. Okay. And, and does that, Yeah.

same and don't Okay. of of price protected I but mean, the factors that's, feel it anyway. the, have have, that, And, pricing you majority backlog, it's presumably level or the and the we hopefully inflationary we all

Chris Eperjesy

we, come that's, backlog to, have that kind that mean, the as and we'll have figure with need I we've to any sense through, Yes. our we to, the of out there. seen most increases makes to we've as re-priced continue to, work customers cost what we'll,

Operator

Thank you.

with your question Our Stifel. from next Noelle question. is Please proceed Dilts with

Noelle Dilts

guys, Ryan Hi good afternoon on respective and challenges. congratulations to your and both Fred

So any contractor there first the of in that a I investment was to rent just versus long wondering your in if at very, in given runway a buy shift Thanks. grid? for the you're seeing decision customers, lot conviction utility seems be

Ryan McMonagle

I'll, equipment I'll utility ERS customers. strong TES both can, so chime we're, and to Fred strong segment the with to on Noel certainly start on, and and buy still ways demand we're demand but feeling both Yeah, can rent equipment. seeing and both in, think I we're

of we of in buying gear. terms Some of some out what the saw utility quarter fourth the in the of some

see as they that kind equipment terms to of, in, work indicator want well. that cycle bullish of have a that in demand amount in, they, another as that the another We that own meaningful of contractors

towards of some a where between we're buying any, the seeing of are we're equipment and with shift right slide We now not contractors a more too. shift seeing lot seeing renting rent,

customers equipment. all are, certainly to is model for, now, to seeing we're the shop really But between where one are and indicators the the But right how pivot the consume and again, strong both in us dynamic utility that's allows want space, demand think certainly stop gear. buying renting we

Fred Ross

leaning there's, I continues that rental strong. of that think a, balance I, no to, might sides it towards to, better than it pick may towards, so equipment a I, their the But the rates to that deal say because doubt think forth, I I do towards most and up a, people may really rent interest the, well, are and some, add stay slightly and, add put to sheet. doing it's the, some I'd than are, more be there's Yeah, to but rental. do there's to some feel than

Noelle Dilts

curious shares. at helpful. levels? with you're the to, thinking Thanks. of, attractiveness relative How some are Thanks. looks current then continuing that's Okay. re-purchase of you buy like, And back just stock about to share the

Chris Eperjesy

our Yeah, hi really as on, an XXXX, and Chris. show performance in to for is the and approved Noelle, we this stock. really very opportunity look the support Obviously have we we're we opportunistically outlook it so We the at by $XX million it XXXX we're, view for bullish board. as

I or we've disclosed, we've in over little queue, think sorry, the $XX a purchased million. k the we

and, to we'll continue makes And so stock think buy look stock. we'll, we it support at this and to as it sense

Operator

you. Thank

Please next from is question. Justin your Hawk Baird. with question Our Robert with W. proceed

Justin Hawk

I'm kind I, rentals surprised I'll change Yeah, my I echo I the I question of guess the statement. on, luck. good evening new why is less of segment. sales and reason the like driving that Because is that mix Congratulations I'm, I, guys. the And the to good guys growth growing on more a, segment reason is, all is than the roles, is, because I it's, guess more the in I and I, but kind and there more a why rental, the, seems side it everything that supply assumed ask 'XX, why of I of you doing the was revenue sales outlook. so guess

that, within for it the the the the year is to portion segment so the specifically portion than faster then commenting your within as sales expected And is, dynamic of or the and grow on rental rental is same well? also comments guess I segment

Ryan McMonagle

I'll is growth a the much TES Yeah, do capital management, to and we've going in sheet gross when much dynamics look think, how capital year. kind deploy versus But start grown. can and because I'll fleet's the just got because, you at, balance of we I terms within Chris at of Justin then ERS on, allocation give how One a on comment growth want of right? CapEx and couple

So, business. of in that revenue, sales rental there's things. then There's which s drives the rental really two fleet, that rental the side segment, and there's

the going side that, supply anything. best to is allocation business. in the of just them to out TES of from of of the And terms so that And really so mid versus is then is will upper think, rental drive improving. to we're our really Chris which of a more just, revenue and sell both deployment what the than the of guidance fleet. already estimate context rental of, then, of fleet, we're the I and doing capital function capital chain rest ERS of gave single digits kind And

through that And XXX the million, to work But so, in strong sure as backlog backlog end just the we've is trying north make to got is we're we've at it as is again, sales. consume rental seen start. strong. four demand all now is backlog or we markets. begin of ability grow of fact kind where strong And our and equipment as $XXX to Demand always of to it, That's there.

so again, bid a is and And deployment. balance CapEx, CapEx management just sheet

Justin Hawk

understand the, then, guidance looking, growth the, so I on is, the segment Okay. the X% your ERS at if you're midpoint.

fleet mid saying what assuming you're I digit. you single high I, that is the guess within segment, that you're rental So grow

to, segment be, would bit down the So sales out flat a earlier? of that little

Ryan McMonagle

And thought flat, exactly. to other then close utilization. kind said is Chris assumption about we, your we've right? Yeah, then, how of and think I Is there That's, how it.

we've just, incredibly utilization XXXX. it's so And high run at in levels

and terms managing, that, I best demand, So we think but it's important see as we in see managing it's, And indicators just budgeting, thinking still to about we very meaningful we're we're way. going slow good utilization's as down can. any utilization of so, nothing saying that Right? in

Justin Hawk

that final to, Okay. that your if digit, high. kind as the brings my you And fleet, kind that, my next and single question growing fleet's question is, is to utilization, the mid-high said rental of maybe so here of or

stays So, where is. of kind it it

rent OEC So 'XX, it's thinking is pricing yield better I, that the are XX-basis a term, opportunity up in of kind rent of are, kind here year-over-year that lack expansion? of It, in, or it stays the kind yield same for on quarter more at the, points for flattish was for there of you a it term. level

Ryan McMonagle

there's certainly would, within in a Yeah, I, look that to be of you lot can units that that. of I that, that addition of business terms just, significant and we're in utilization modeling any things that, think the availability as doing are, don't expansion. efficiencies know at I the drive the I Justin,

model anything direction. want not I, wouldn't we I in necessarily any to movement so, either And you but guide specifically significant to,

Operator

instructions]. floor [Operator like further are turn Ryan to at would closing for this no questions the to comments. I time. There over back McMonagle

Ryan McMonagle

any thank speaking next you. questions. interest meantime, your call. our reach earnings don't have and good today Thank in please on forward the quarterly for you everyone out Truck. time again, with evening. And your We Great, look to you hesitate a and with to in custom Thanks

Operator

concludes This today's teleconference.

your disconnect your at lines time. may this You Thank for participation. you

Custom Truck One Source (CTOS) 14 Mar 232022 Q4 Earnings call transcript