KANSAS CITY, Mo. - Custom Truck One Source, Inc. (NYSE: CTOS), a leading provider of specialty equipment to various infrastructure-related markets, announced its financial results for the fourth quarter ended December 31, 2023. The company reported a quarterly EPS of $0.07, falling short of the analyst consensus estimate of $0.11. Despite the earnings miss, revenue exceeded expectations, coming in at $521.75 million against the predicted $470.34 million.
For the full year 2024, CTOS projects revenues to range between $2 billion and $2.18 billion, surpassing the consensus estimate of $1.91 billion. This optimistic revenue guidance indicates the company's confidence in continued demand across its key markets.
CTOS's fourth-quarter results reflected a mixed performance. While the company experienced robust demand leading to higher revenue, its net income saw a decrease from the same quarter last year. The quarterly gross profit marginally dipped by 1.2% YoY to $126.8 million, compared to $128.3 million in the fourth quarter of 2022. However, the annual gross profit showed a significant increase of 18.4% to $454.3 million from $383.7 million in the previous year.
The adjusted EBITDA for the quarter also saw a decline to $118.4 million from $124.5 million in the fourth quarter of 2022. The company attributed the decrease in net income primarily to higher interest expenses on variable-rate debt and floorplan liabilities.
Ryan McMonagle, CEO of CTOS, commented on the results, "Our fourth quarter concluded a strong year despite some end-market pressures in the second half. We achieved record vehicle production, driving performance in both our Equipment Rental Solutions and Truck and Equipment Sales segments." He added, "As we head into 2024, we continue to see strong demand from customers across all our primary end-markets, and we expect 2024 to be another year of growth for Custom Truck."
The company's outlook for 2024 reflects the strength in its end markets and a strategic focus on capital allocation, free cash flow generation, and continued deleveraging to create long-term shareholder value.
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