Custom Truck One Source, which includes the company formerly known as Nesco Specialty Rentals, posted pro-forma revenue for 2021 of $1,483.6 million compared to $1,356.5 million in 2020, a 9.4-percent hike. For the full year of 2021, on a pro-forma basis, CTOS posted $422 million in rental revenue compared to $410.5 in 2020 on a pro-forma basis, a 2.8-percent increase.
CTOS posted fourth quarter rental revenue of $114.1 million compared to $109.4 million in the fourth quarter of 2020 on a pro-forma basis, a 4.3-percent increase. Fourth quarter total revenue was $356.4 million compared to $405.5 million in the fourth quarter of 2020, a 12.1-percent decline.
The pro forma numbers indicate the total of Nesco Rentals and CTOS as if they had been a combined company. Nesco Holdings completed its acquisition of CTOS April 1, 2021, and the combined companies took on the CTOS name.
The acquisition created a one-stop shop for specialty equipment serving infrastructure end markets, electric utility transmission and distribution, telecom and rail industries. Following the acquisition, CTOS expanded its reporting segments from two to three. The Equipment Rental Solutions segment encompasses the company’s core rental business, including sales of rental equipment to customers. The Truck and Equipment Sales segment encompasses its specialized truck and equipment production and sales activities. The Aftermarket Parts and Services segment includes sales and rentals of parts, tools and other supplies to customers, as well as aftermarket repair services operations.
"Our strong fourth quarter results capped off a year of significant achievement for the company, which, along with continued strong fundamentals in our end markets, provides a solid basis for our positive outlook for 2022," said Fred Ross, CEO of CTOS. "Our employees met the challenges presented by the integration, as well as issues outside of our control, such as supply chain constraints and inflationary pressures, to achieve these results. Customer demand across all three of our business segments remains very strong and we continue to see the benefits of our unique business model and our significant scale. As we head further into 2022, we look forward to continuing to deliver the unrivaled service that our customers have come to expect from us and driving significant value for our shareholders."
Gross profits are up
Pro forma full-year 2021 gross profit, excluding rental depreciation, was $462.1 million, a 9-percent increase, compared to pro forma full-year 2020 gross profit, excluding rental depreciation, of $424.0 million.
In the ERS segment, demand for equipment remained solid as rental revenue in the fourth quarter of 2021 was $109.6 million, compared to $105.1 million in the third quarter of 2021, a 4.3-percent increase. Fleet utilization improved to 83.7 percent from 81.4 percent in the third quarter. Adjusted EBITDA for the fourth quarter of 2021 was $95.6 million, compared to $84.4 million for the third quarter of 2021. CTOS is expecting $1,565 million to $1,750 million in total revenue in 2022, with adjusted EBITDA in the range of $385 million to $410 million, based on the company's current sales order backlog and mangement's outlook for the rental fleet for remainder of the year.
CTOS’ coast-to-coast rental fleet of more than 9,600 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. The company is headquartered in Kansas City, Mo.