Custom Truck One Source, Inc. · NYSE:CTOS
Custom Truck One Source — Oppenheimer 16th Annual Industrial Growth Conference (May 2021)
19 slides from Custom Truck One Source's conference presentation, May 4, 2021
Slide 1: Custom Truck One Source
Custom Truck One Source Oppenheimer 16th Annual Industrial Growth Conference May 4, 2021 CONFIDENTIAL DRAFT1
Slide 2: Disclaimer
Disclaimer This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States (“GAAP”), including, without limitation, EBITDA, Adjusted EBITDA, and Pro Forma Adjusted EBITDA (collectively, the
Slide 3: Presenters
Fred Ross Chief Executive Officer Presenters Ryan McMonagle President & Chief Operating Officer Brad Meader Chief Financial Officer 3
Slide 4: CTOS at a Glance
CTOS at a Glance $1.4B $345M PF 2020 Revenue PF 2020 Adj. EBITDA Leading Integrated Provider of Specialty Equipment 1,835 ~8,800 Employees Fleet Units Kansas City, MO 40+ • True “One-Stop-Shop” platform, $1.3B HQ Locations2 focused on rental and sales Fleet OEC1 • Deep product knowledge and truck ex
Slide 5: Investment Highlights
Investment Highlights 1 Favorable End-Market Dynamics with Secular Growth Drivers 2 Differentiated “One-Stop-Shop” Business Model 3 Market Leading Specialty Rental Fleet 4 Diversified, Highly Loyal Customer Base 5 Well-Positioned for Growth & Margin Expansion 6 Significant Synergy Opportunity with C
Slide 6: Favorable End-Market Dynamics
1 Favorable End-Market Dynamics Strong, Multi-Year End Market Tailwinds T&D TELECOM T&D Capex Telecom Capex Rapidly increasing major Build-out and projects driven by need for grid upgrades and renewable ~$70B 6.8% implementation of 5G technology driving ~$80B 3.0% energy investment, coupled investme
Slide 7: Favorable End-Market Dynamics
1 Favorable End-Market Dynamics Large Addressable Market with Strong Secular Growth ~$30B Total Addressable Market1 Rental Penetration2 Key Drivers of Rental 65% • Avoidance of capital outlay 57% Parts & Service • Improved asset utilization with significantly ~$9B 42% reduced storage and maintenance
Slide 8: Differentiated "One-Stop-Shop" Business Model
2 Differentiated “One-Stop-Shop” Business Model Integrated Production Capabilities Key Point of Differentiation for CTOS Integrated Production Capabilities One-Stop-Shop Value Proposition Unit Economic Advantages Faster Speed to Market Higher Resale Values Chassis OEM Completed Unit Service Offering
Slide 9: Market Leading Rental Fleet
3 Market Leading Rental Fleet One of the Industry’s Largest, Youngest Specialty Equipment Fleets with Strong Utilization Significant Fleet Growth Young Diversified Fleet OEC On Rent Resilience Through COVID $ in millions $ in millions $418 / 46% Growth $1,331 Other1 $1,057 $1,058 $1,083 15% $957 $98
Slide 10: Diverse, Highly Loyal Customer Base
4 Diverse, Highly Loyal Customer Base Diverse Customer Base Highlights T&D Infrastructure / Telecom Rail • Serve more than 3,000 customers, with the top 15 customers representing ~16% of revenue • No customer represents more than 3% of combined company revenue • Strong brand recognition and awarenes
Slide 11: Positioned for Growth & Margin Expansion
5 Positioned for Growth & Margin Expansion Multi-Pronged Growth Strategy Supported by Strong Industry Dynamics and End Market Tailwinds Rental Fleet Expansion & Increase New Capitalize on Favorable End Utilization Improvements Equipment Sales Market Dynamics & Tailwinds • Drive utilization improveme
Slide 12: Significant Synergy Opportunity
6 Significant Synergy Opportunity ~$50M of Anticipated Run-Rate Annual Cost Synergies and ~$10M of Anticipated Annual Capex Savings to be Realized Within Two Years Breakdown of Cost Synergy Opportunity Cost Synergy Realization Timeline1 Procurement 28% 100% Other SG&A Opportunities 22% ~50% Service
Slide 13: Strong Financial Profile
7 Strong Financial Profile Financial Profile Positions the Company to Capitalize on Growth Opportunities Pro Forma Revenue Pro Forma Adj. EBITDA $ in millions $1,356 $ in millions $345 $1,294 $325 $293 50 $1,105 $864 $221 295 Highlights • Consistently strong revenue and EBITDA growth 2017 2018 2019
Slide 14: Strong Financial Profile
7 Strong Financial Profile Leverage Profile and Available Liquidity Will Support Growth Opportunities Highlights Available Liquidity Focus on Deleveraging • Strong capital structure with moderate leverage and ample liquidity 4.0x 4.0x $300M+ • Financial profile and operating model 3.5x provides cash
Slide 15: Investment Highlights
Investment Highlights 11 Favorable End-Market Dynamics with Secular Growth Drivers 22 Differentiated “One-Stop-Shop” Business Model 34 Market Leading Specialty Rental Fleet 45 Diversified, Highly Loyal Customer Base 56 CTOS Well-Positioned for Growth & Margin Expansion 67 Significant Synergy Opportu
Slide 16: Appendix
(ZZ LLL LA Appendix custom Tauck
Slide 17: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation Reconciliation of Net Income (Loss) to Adjusted EBITDA ($ in millions) Nesco Year Ended 12/31 2017 2018 2019 2020 (1) EBITDA and Adj. EBITDA are non-GAAP financial measures. See reconciliation at left that reconciles to the most comparable GAAP measures. Net Inco
Slide 18: Pro Forma Net Capex Reconciliation
Pro Forma Net Capex Reconciliation Reconciliation of Total Capital Expenditures to Net Capital Expenditures ($ in millions) Nesco Year Ended 12/31 2017 2018 2019 2020 Purchases of equipment - rental fleet $ 47.1 $ 58.5 $ 106.6 $ 67.5 Purchase of other property and equipment 0.4 0.7 3.1 0.9 Total cap
Slide 19: Pro Forma Adj. Net Working Capital
Pro Forma Adj. Net Working Capital Calculation of Adj. Net Working Capital ($ in millions) Nesco Year Ended 12/31 Custom Truck One Source LP Year Ended 12/31 2017 2018 2019 2020 2017 2018 2019 2020 Cash $ 1.0 $ 2.1 $ 6.3 $ 3.4 Cash $ 61.2 $ 62.1 $ 34.2 $ 59.1 Accounts receivable 49.8 52.6 71.3 60.9
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