Cash and cash equivalents (USD, thousands)

Accounts receivable, net (USD, thousands)

Financing receivables, net (USD, thousands)

Inventory (USD, thousands)

Prepaid expenses and other (USD, thousands)

Total current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Rental equipment, net (USD, thousands)

Goodwill (USD, thousands)

Intangible assets, net (USD, thousands)

Operating lease assets (USD, thousands)

Other assets (USD, thousands)

Total Assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses (USD, thousands)

Deferred revenue and customer deposits (USD, thousands)

Floor plan payables - trade (USD, thousands)

Floor plan payables - non-trade (USD, thousands)

Operating lease liabilities - current (USD, thousands)

Current maturities of long-term debt (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt, net (USD, thousands)

Operating lease liabilities - noncurrent (USD, thousands)

Deferred income taxes (USD, thousands)

Total long-term liabilities (USD, thousands)

Common stock (USD, thousands)

Treasury stock, at cost (USD, thousands)

Additional paid-in capital (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Accumulated deficit (USD, thousands)

Total stockholders' equity (USD, thousands)

Total Liabilities and Stockholders' Equity (USD, thousands)

646755c6a614d66d56c62e0a75316334e8aa71ff59c9ceb6cc15b9fc839ca2de

The negative operating cash flow in Q2 2023 was primarily driven by **increased inventory purchases and production** and significant **changes in working capital**. Specifically, there were notable increases in **accounts and financing receivables**, a larger cash outflow for **inventory buildup**, and shifts in **accounts payable** that together led to the negative cash flow observed in that quarter.  **[0001709682-23-000048_ctos-20230630.htm:35]** **[0001709682-23-000048_ctos-20230630.htm:4]** 

What factors contributed to operating cash flow turning negative in Q2 2023?

The **sharp decline** in net financing cash flow in Q3 2023 was mainly driven by a combination of factors. In that period, the company saw a **substantial increase in repayments under revolving credit facilities** (rising from **$34,945 thousand** in the comparable prior period to **$56,377 thousand**) and a significant uptick in the **repurchase of common stock** (jumping from **$1,752 thousand** to **$19,936 thousand**). These outflows, along with changes in floor plan payables (both acquisitions and repayments), largely offset the inflows from increased borrowing, resulting in the overall decline in financing cash flow.  **[0001709682-23-000058_ctos-20230930.htm:36]** **[0001709682-23-000058_ctos-20230930.htm:4]** 

What drove the sharp decline in financing cash flow in Q3 2023?

The drastic drop in **cash and cash equivalents** for Q3 2023 was primarily due to a significant decline in operating cash inflows and a substantial outflow from investing activities. In Q3 2023, **net cash flow from operating activities** turned negative, driven by a **huge increase in inventory** (which used up cash) that was only partly offset by a smaller increase in accounts payable. Additionally, the company experienced a large cash outflow from investing activities, with significantly higher **purchases of rental equipment** compared to the previous year, even though there were some offsets from proceeds on sales and disposals of such equipment. Although financing activities added some cash, they were not enough to offset the operating and investing outflows, resulting in the overall dramatic decrease in cash by Q3 2023.  **[0001709682-23-000057_ex991q3-2023pressrelease.htm:11]** **[0001709682-23-000058_ctos-20230930.htm:4]** 

Why did cash and cash equivalents drop so drastically in Q3 2023?

7702d8fc65d25b2a22c63ba8e097cee4bf451ebd7b566314d1cb0a43bbae9b72

In Q4 2023, the Total Revenue surged due to several strong performance factors. **Equipment sales revenue** increased by **12.7%** to **$366,967 thousand** driven by record production and supply chain improvements. Additionally, the **TES segment** saw a **20.9% increase** to **$298,900 thousand** as a result of high customer demand. Growth in **parts sales and services** (up by **4.2%**) further contributed to the revenue boost, which more than offset a decline in rental revenue. These combined factors drove a **7.2% year-over-year increase** compared to Q4 2022.  **[0001709682-24-000009_ex991q4-2023pressrelease.htm:3]** **[0001709682-24-000009_ex991q4-2023pressrelease.htm:0]** 

Why was Total Revenue so high in Q4 2023?

The drop in **Operating Income** in Q1 2024 was primarily driven by a significant decrease in revenue—which included a **10.2% decline in rental revenue** and a **9.5% decrease in equipment sales**—combined with a reduction in gross profit due to both lower revenues and higher depreciation costs. Additionally, **operating expenses increased** by **3.7%** as a result of higher general and administrative expenses, increased insurance costs, and additional IT project expenses, all contributing to the overall decline in operating income.  **[0001709682-24-000036_ex991q1-2024pressrelease.htm:0]** **[0001709682-24-000037_ctos-20240331.htm:20]** 

Why did Operating Income drop in Q1 2024?

The negative net income in Q1 2024 was primarily caused by a combination of factors. **Lower revenue and a decrease in gross profit** played major roles, with total revenue down **9.0%** and gross profit declining by **17.3%** compared to the previous year. The decline was driven by decreases in both rental revenue (down **10.2%**) and equipment sales (down **9.5%**). Additionally, **higher interest expenses**—increasing to **$25,015 thousand** from **$22,363 thousand**—due to rising variable interest rates and increased inventory levels further eroded profitability. The Equipment Rental Solutions segment also faced challenges, including lower rental performance and higher associated costs, all contributing to the negative net income in Q1 2024.  **[0001709682-24-000036_ex991q1-2024pressrelease.htm:0]** **[CTOS_3382426_3]** **[0001709682-24-000036_ex991q1-2024pressrelease.htm:2]** **[0001709682-24-000036_ex991q1-2024pressrelease.htm:13]** 

What led to the negative Net Income in Q1 2024?

In Q1 2024, CTOS's EPS turned negative because the company reported a **net loss of $14.3 million** compared to a net income of **$13.8 million** in Q1 2023. This swing was primarily driven by **lower revenue**, which reduced the gross profit, and **higher interest expenses** on variable-rate debt and floor plan liabilities.  **[0001709682-24-000036_ex991q1-2024pressrelease.htm:0]** **[0001709682-24-000037_ctos-20240331.htm:11]** **[0001709682-24-000036_ex991q1-2024pressrelease.htm:2]** 

Why did EPS turn negative in Q1 2024?

aa7265922fa3ac9874a85ca21c2040b994ae350f47060dd2e2757e7b39eae291

Rental Revenue (USD, thousands)

Equipment Sales (USD, thousands)

Parts Sales and Services (USD, thousands)

Total Revenue (USD, thousands)

Cost of Rental Revenue (USD, thousands)

Depreciation of Rental Equipment (USD, thousands)

Cost of Equipment Sales (USD, thousands)

Cost of Parts Sales and Services (USD, thousands)

Total Cost of Revenue (USD, thousands)

Gross Profit (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

Amortization (USD, thousands)

Non-Rental Depreciation (USD, thousands)

Transaction Expenses and Other (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest Expense, Net (USD, thousands)

Financing and Other Expense (Income) (USD, thousands)

Total Other Expense (USD, thousands)

Income (Loss) Before Income Taxes (USD, thousands)

Income Tax Expense (Benefit) (USD, thousands)

Net Income (Loss) (USD, thousands)

Unrealized Foreign Currency Translation Adjustments (USD, thousands)

Other Comprehensive Income (Loss) (USD, thousands)

Comprehensive Income (Loss) (USD, thousands)

Net Income (Loss) Per Share - Basic (USD)

Net Income (Loss) Per Share - Diluted (USD)

Weighted-Average Common Shares Outstanding - Basic (thousands)

Weighted-Average Common Shares Outstanding - Diluted (thousands)

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Ending OEC (USD thousands)

Average OEC on rent (USD thousands)

Fleet utilization (percentage)

OEC on rent yield (percentage)

Sales order backlog (USD thousands)

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Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

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United States

Canada

Total Revenue

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Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

D&A (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

5a84af1250030afa48c9b0555f58e233a0705127a6027b7b2f8c6736704c46b5

Equipment Rental Solutions

- Rental Revenue

- Equipment Sales

Truck and Equipment Sales

Aftermarket Parts and Services

- Parts and Services Revenue

ca045f53f005db36765a232976ee99b969cbfc837df266952b3f7fc51ebbb257

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

0c0d041ff28b61337ff07e22dbf52d3bfc5bffb041e1f353afd0b07651880dae

Custom Truck One Source (CTOS)

Financials