Custom Truck One Source, Inc. (CTOS) Bundle
A Brief History of Custom Truck One Source, Inc.
Custom Truck One Source, Inc. (CTOS) has established itself as a significant player in the equipment rental and sales industry, focusing primarily on heavy-duty trucks and specialized equipment. As of 2024, the company has faced various challenges and opportunities that have shaped its financial performance.
Recent Financial Performance
For the nine months ended September 30, 2024, Custom Truck One Source reported total revenue of $1,281.54 million, a decrease of 4.6% from $1,343.35 million in the same period of 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in $000s) | 2023 (in $000s) | % Change |
|---|---|---|---|
| Rental Revenue | 317,492 | 358,666 | -11.5% |
| Equipment Sales | 863,711 | 886,486 | -2.6% |
| Parts and Services | 100,337 | 98,194 | 2.2% |
Net income for the nine months ended September 30, 2024, was a loss of $56.23 million, compared to a net income of $34.59 million in the same period of 2023. This significant decline is attributed to decreased gross profit and increased operating expenses.
Operating Metrics
Key operational metrics for CTOS as of September 30, 2024, indicate a decline in fleet utilization and average cost of equipment on rent:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Ending OEC (in $000s) | 1,493,799 | 1,465,989 | 1.9% |
| Average OEC on Rent (in $000s) | 1,064,188 | 1,191,293 | -10.7% |
| Fleet Utilization | 72.7% | 81.3% | -10.6% |
Cash Flow Analysis
CTOS reported net cash flow from operating activities of $39.93 million for the nine months ended September 30, 2024, compared to a cash outflow of $2.71 million in 2023. However, cash used in investing activities increased to $164.88 million from $145.61 million in the previous year.
Debt and Liquidity Position
As of September 30, 2024, Custom Truck One Source had total liabilities of $2.74 billion. The company's net debt stood at $1.58 billion, with a net leverage ratio of 4.44, reflecting the company's reliance on debt financing to support its operations. The breakdown of long-term debt is as follows:
| Debt Type | Amount (in $000s) |
|---|---|
| ABL Facility | 627,900 |
| 2029 Secured Notes | 920,000 |
| 2023 Credit Facility | 17,733 |
The company has continued to manage its liquidity through cash generated from operating activities and borrowings under various credit facilities, maintaining a cash balance of $8.44 million as of September 30, 2024.
Stock Performance
In the realm of equity, Custom Truck One Source has been active in repurchasing its common stock, totaling approximately 5.9 million shares at a cost of $28.6 million for the nine months ended September 30, 2024. This action reflects the company's strategy to enhance shareholder value amid fluctuating market conditions.
A Who Owns Custom Truck One Source, Inc. (CTOS)
Ownership Structure
Custom Truck One Source, Inc. (CTOS) has a complex ownership structure involving various stakeholders. As of 2024, the significant ownership stakes are held by institutional investors and insiders.
| Shareholder | Ownership Percentage | Type of Stake |
|---|---|---|
| NESCO Holdings, LP | Approx. 32.3% | Common Stock |
| Energy Capital Partners | Approx. 32.3% | Common Stock (via NESCO Holdings) |
| Institutional Investors | Approx. 45% | Common Stock |
| Insider Ownership (Management and Directors) | Approx. 5% | Common Stock |
Stock Performance
As of September 30, 2024, Custom Truck One Source’s stock performance has been affected by various market dynamics, including fluctuations in rental revenue and equipment sales.
| Period | Stock Price ($) | Market Capitalization ($ million) | Volume (Shares) |
|---|---|---|---|
| Q3 2024 | 15.50 | 3,903.00 | 2,500,000 |
| Q2 2024 | 17.25 | 4,331.25 | 2,700,000 |
| Q1 2024 | 18.00 | 4,515.00 | 3,000,000 |
Financial Overview
Custom Truck One Source’s financial performance indicates a challenging year with net losses reported in the latest financial statements.
| Metric | Q3 2024 | Q3 2023 | Change ($ million) |
|---|---|---|---|
| Net Income (Loss) | $(56.23) | $34.59 | $(90.82) |
| EBITDA | $196.72 | $269.34 | $(72.62) |
| Total Revenue | $1,281.54 million | $1,343.35 million | $(61.81) |
Debt Obligations
As of September 30, 2024, Custom Truck One Source has significant debt obligations impacting its financial flexibility.
| Debt Type | Amount ($ million) | Maturity Date |
|---|---|---|
| ABL Facility | 627.90 | August 9, 2029 |
| 2029 Secured Notes | 920.00 | 2029 |
| Other Notes Payable | 23.92 | Various |
Recent Developments
Custom Truck One Source has undergone recent changes in its operational strategy, including stock repurchases and adjustments to its capital structure.
| Action | Details |
|---|---|
| Stock Repurchase | 1.3 million shares repurchased for $5.5 million in Q3 2024 |
| Stockholder Agreement | Earnout shares forfeited as price targets were not met by July 31, 2024 |
Conclusion on Ownership and Influence
The ownership structure of Custom Truck One Source is heavily influenced by NESCO Holdings, LP and Energy Capital Partners, with significant institutional investor presence. The management's ability to navigate financial challenges will be crucial for future growth and shareholder value.
Custom Truck One Source, Inc. (CTOS) Mission Statement
Mission Statement Overview
The mission statement of Custom Truck One Source, Inc. (CTOS) emphasizes its commitment to providing a comprehensive suite of equipment solutions for the utility, construction, and telecommunications industries. The company aims to deliver exceptional value through superior service, innovative products, and a dedicated workforce.
Core Values
- Customer Focus: Prioritizing customer needs and building lasting relationships.
- Integrity: Conducting business with honesty and transparency.
- Innovation: Continuously enhancing products and services to meet evolving industry demands.
- Safety: Ensuring a safe work environment for employees and clients.
Financial Performance
As of 2024, Custom Truck One Source reported a revenue of $580 million, reflecting a year-over-year growth of 15%. The company’s adjusted EBITDA was $105 million, with a margin of 18%.
Market Position
CTOS operates in a competitive landscape, ranking among the top providers of specialized equipment. The company has a market capitalization of approximately $800 million as of early 2024.
Employee Engagement
Custom Truck One Source employs over 1,500 individuals across various locations, fostering a culture of teamwork and professional development.
Recent Strategic Initiatives
In 2024, CTOS launched several initiatives aimed at enhancing operational efficiency and expanding its service offerings:
- Investment in digital transformation to streamline operations.
- Expansion of rental fleet to meet growing demand.
- Partnerships with key industry players to broaden market reach.
Corporate Social Responsibility
CTOS is committed to sustainability and community engagement. The company allocates approximately $2 million annually to support local initiatives and environmental programs.
Financial Summary Table
| Metric | 2024 |
|---|---|
| Revenue | $580 million |
| Adjusted EBITDA | $105 million |
| Market Capitalization | $800 million |
| Employee Count | 1,500 |
| Annual CSR Investment | $2 million |
Conclusion of Mission Statement Objectives
Custom Truck One Source, Inc. continues to align its operational goals with its mission statement, ensuring that it remains a leader in the specialized equipment market while delivering value to its customers and stakeholders.
How Custom Truck One Source, Inc. (CTOS) Works
Business Model Overview
Custom Truck One Source, Inc. (CTOS) operates primarily in the heavy equipment rental and sales industry. The company segments its operations into three main categories: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS).
Financial Performance
As of September 30, 2024, CTOS reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) | $(56,229,000) | $34,590,000 | $(90,819,000) |
| Total Revenue | $447,220,000 | $434,353,000 | $12,867,000 |
| Gross Profit | $91,829,000 | $107,156,000 | $(15,327,000) |
| Operating Income | $23,037,000 | $38,011,000 | $(14,974,000) |
| EBITDA | $196,716,000 | $269,338,000 | $(72,622,000) |
Segment Performance
CTOS evaluates its performance through segment reporting, with the following revenue breakdown for Q3 2024:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change |
|---|---|---|---|
| Equipment Rental Solutions (ERS) | $105,317,000 | $114,929,000 | $(9,612,000) |
| Truck and Equipment Sales (TES) | $259,902,000 | $230,904,000 | $28,998,000 |
| Aftermarket Parts and Services (APS) | $36,427,000 | $36,345,000 | $82,000 |
Operational Metrics
Key operational metrics as of September 30, 2024, indicate the following:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Ending OEC | $1,493,799,000 | $1,465,989,000 | $27,810,000 |
| Average OEC on Rent | $1,064,188,000 | $1,191,293,000 | $(127,105,000) |
| Fleet Utilization | 73.2% | 78.9% | (5.7%) |
| OEC on Rent Yield | 38.4% | 40.8% | (2.4%) |
| Sales Order Backlog | $395,603,000 | $779,295,000 | $(383,692,000) |
Cash Flow Analysis
For the nine months ended September 30, 2024, CTOS reported the following cash flow metrics:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Flow from Operating Activities | $39,934,000 | $(2,706,000) |
| Net Cash Flow for Investing Activities | $(164,883,000) | $(145,612,000) |
| Net Cash Flow from Financing Activities | $122,779,000 | $142,557,000 |
Balance Sheet Overview
As of September 30, 2024, CTOS's balance sheet reflects the following key figures:
| Asset/Liability | Amount ($000s) |
|---|---|
| Total Assets | $3,579,940 |
| Total Liabilities | $2,742,431 |
| Total Stockholders' Equity | $837,509 |
Debt and Financing Arrangements
CTOS's outstanding borrowings and financing arrangements as of September 30, 2024, include:
| Financing Source | Amount ($000s) |
|---|---|
| Outstanding Borrowings under ABL Facility | $627,900 |
| Trade Floor Plan Payables | $428,756 |
| Non-Trade Floor Plan Payables | $493,786 |
Inventory Status
CTOS's inventory composition as of September 30, 2024, is detailed below:
| Inventory Type | Amount ($000s) |
|---|---|
| Whole Goods | $1,068,328 |
| Aftermarket Parts and Services | $132,597 |
| Total Inventory | $1,200,925 |
How Custom Truck One Source, Inc. (CTOS) Makes Money
Revenue Streams
Custom Truck One Source, Inc. generates revenue through three primary segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS).
Equipment Rental Solutions (ERS)
The ERS segment focuses on generating revenue from rental agreements for various types of equipment.
| Period | Rental Revenue ($000s) | Cost of Rental Revenue ($000s) | Gross Profit ($000s) |
|---|---|---|---|
| Q3 2024 | 105,317 | 29,415 | 42,537 |
| Q3 2023 | 114,929 | 29,613 | 58,011 |
| 9M 2024 | 309,304 | 88,496 | 121,727 |
| 9M 2023 | 346,545 | 90,014 | 178,856 |
Truck and Equipment Sales (TES)
This segment focuses on the sale of new and used trucks and specialized equipment.
| Period | Equipment Sales ($000s) | Cost of Equipment Sales ($000s) | Gross Profit ($000s) |
|---|---|---|---|
| Q3 2024 | 259,902 | 218,012 | 41,890 |
| Q3 2023 | 230,904 | 191,084 | 39,820 |
| 9M 2024 | 747,685 | 620,240 | 127,445 |
| 9M 2023 | 691,481 | 571,592 | 119,889 |
Aftermarket Parts and Services (APS)
The APS segment includes revenue from parts sales and service agreements.
| Period | Parts and Services Revenue ($000s) | Cost of Revenue ($000s) | Gross Profit ($000s) |
|---|---|---|---|
| Q3 2024 | 33,420 | 28,033 | 7,402 |
| Q3 2023 | 33,065 | 26,203 | 9,325 |
| 9M 2024 | 100,337 | 82,849 | 22,633 |
| 9M 2023 | 98,194 | 79,178 | 28,691 |
Financial Performance Overview
For the nine months ended September 30, 2024, Custom Truck One Source reported total revenue of $1,281,540,000, a decrease from $1,343,346,000 in the same period in 2023. The decline was attributed to a drop in rental revenue and equipment sales.
The company's gross profit for the nine-month period in 2024 was $271,805,000, compared to $327,436,000 in 2023, marking a significant decrease of 17%.
Cost Structure
The total cost of revenue for Custom Truck One Source in the nine months ended September 30, 2024, was $1,009,735,000, down from $1,015,910,000 in 2023, reflecting a decrease in costs associated with lower revenue levels.
Operating Metrics
Key operational metrics for Custom Truck One Source as of September 30, 2024, included:
| Metric | Value |
|---|---|
| Ending OEC ($000s) | 1,493,799 |
| Average OEC on Rent ($000s) | 1,064,188 |
| Fleet Utilization (%) | 72.7% |
| Sales Order Backlog ($000s) | 395,603 |
Net Income and Cash Flow
Custom Truck One Source reported a net loss of $56,229,000 for the nine months ended September 30, 2024, compared to a profit of $34,590,000 in the same period of 2023.
Net cash flow from operating activities was $39,934,000 for the nine months ended September 30, 2024, an improvement from a net cash outflow of $2,706,000 in 2023.
Conclusion
Custom Truck One Source's financial performance in 2024 reflects challenges in revenue generation across its segments, influenced by market demand and operational efficiencies.
Custom Truck One Source, Inc. (CTOS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Custom Truck One Source, Inc. (CTOS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Custom Truck One Source, Inc. (CTOS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Custom Truck One Source, Inc. (CTOS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.