Custom Truck One Source, Inc. (NYSE:CTOS) Q4 2023 Earnings Call Transcript

Chris Eperjesy: Yes. Tami, this is Chris. I think the 45%, 55% generally still holds. I do think what we’re going to see, certainly it holds for revenue. I think, as Ryan was just talking about kind of what we expect to see this year in ERS, which is more of a historical norm versus what we saw maybe in 2023 or certainly in 2022 is that probably — it’d be a little bit wider range, probably first half, second half on EBITDA. So it’s probably a little less than 45% and a little more than 55% on EBITDA, but 45%, 55% on revenue.

Tami Zakaria: Got it. Okay. Got it. That is very helpful. And then for the ERS segment, I think you’ve mentioned a few times some slowdown in transmission work caused by your customers supply chain delays. Just wanted to get a sense, what exactly is this delay? Is it funding or is it availability of some other equipment? Or they’re just waiting for the Fed rates to get cut? What exactly is this supply chain delay? Or what’s exactly driving this delay?

Ryan McMonagle: Yes. No, it’s a great question, and I would tell you. Yes, yes, and yes, right? So the conversation we’re having is all three of those, Tami that some of it is regulatory approval, right, and so they’re waiting on some rate increases to be passed kind of through their regulatory bodies. Some of it is supply chain, right? So we’re still waiting on some superstructure, structure or transformers to be available, and then some is just a cost of funds issue, which I think they’re waiting on interest rates. So it feels like it’s all three, Tami. It feels like there’s a lot that’s ready to go. And so as each of those, break, we anticipate that it will be a great tailwind as they begin later this year and into 2025.

Operator: No further questions at this time. Brian, I’ll turn the call back over to you.

Brian Perman: Great. Thanks, everyone, for your time today and your interest in Custom Truck. We look forward to speaking with you on our next quarterly earnings call. And in the meantime, please don’t hesitate to reach out with any questions. Thanks again, and have a good evening.