Custom Truck One Source, Inc. Reports Strong Quarterly Revenue and Gross Profit Growth

KANSAS CITY, Mo., May 10, 2022

On April 1, 2021, the Company, formerly known as Nesco Holdings, Inc. ("Nesco Holdings"), through its subsidiary, closed on the acquisition (the "Acquisition") of Custom Truck One Source, L.P. ("Custom Truck LP"). The Acquisition creates a leading, one-stop shop for specialty equipment serving highly attractive and growing infrastructure end markets, including electric utility transmission and distribution ("T&D"), telecom, rail and other national infrastructure initiatives. Our reported results include Custom Truck LP only for the period subsequent to the Acquisition. We also provide key operational metrics on a combined basis and pro forma combined results of operations for the three-month period ended March 31, 2021, in accordance with Article 11 of Regulation S-X, assuming the Acquisition had occurred on January 1, 2020. We believe such combined information is useful to compare how the combined company has performed over time.

Our results are reported for our three segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES") and Aftermarket Parts and Services ("APS"). ERS encompasses our core rental business, inclusive of sales of rental equipment to our customers. TES encompasses our specialized truck and equipment production and sales activities. APS encompasses sales and rentals of parts, tools and other supplies to our customers, as well as our aftermarket repair service operations.

CTOS First Quarter Highlights

• Total quarterly revenue of $366.5 million, driven primarily by continued strong rental demand
• Quarterly gross profit improvement of $6.6 million, or 8.5%, to $84.5 million compared to $77.9 million for fourth quarter 2021
• Quarterly net loss of $3.3 million, including $4.6 million related to the continuing post-acquisition integration related expenses, compared to a net loss of $3.7 million in fourth quarter 2021
• Quarterly Adjusted EBITDA of $91.5 million compared to $95.6 million in fourth quarter 2021
• Closed on the acquisition of HiRail Leasing Group, a leader in rental equipment for the Canadian rail market, for approximately $51.6 million, including $5.6 million of fleet related purchase price adjustments
• Maintaining full-year revenue and Adjusted EBITDA outlook

CTOS First Quarter Pro Forma Highlights
Pro forma first quarter highlights actual results for the three months ended March 31, 2022 to pro forma results for the three months ended March 31, 2021, which are prepared in accordance with Article 11 of Regulation S-X, as if the Acquisition had been completed on January 1, 2020.

• Rental revenue increased 8.9% compared to 2021 pro forma revenue of $100.3 million, driven primarily by an increase in rental equipment utilization and steady rental yield
• Gross profit increased 20.0% to $84.5 million, compared to 2021 pro forma gross profit of $70.4 million, driven by increased gross margin in our TES segment and sales of rental equipment in our ERS segment
• Gross profit, excluding rental equipment depreciation, increased 12.7% to $129.5 million, compared to 2021 pro forma gross profit, excluding rental equipment depreciation, of $114.8 million, driven by improved rental fleet performance
• Net loss reduced to $3.3 million compared to 2021 pro forma net loss of $15.3 million
• Adjusted EBITDA improved to $91.5 million compared to 2021 pro forma Adjusted EBITDA of $72.9 million
• Increased average OEC on rent by $71.8 million to $1,119.1 million
• Equipment sales order backlog grew 42.4% to $586.4 million

"I am proud of the efforts of our entire team, who delivered very strong first quarter results despite the continued headwinds stemming from supply chain constraints and inflation," said Fred Ross, Chief Executive Officer of CTOS. "Our first quarter results provide a solid foundation for us to build upon over the balance of the year. As we move into the second year post the transaction, we have largely shifted our efforts away from the integration and toward the optimization of our operations to fully realize the benefits of our scale and our one-stop-shop business model. Custom Truck's commitment to our customers remains unmatched and we are steadfastly focused on meeting continued robust customer demand across all three of our business segments."