UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2023

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from to
 Commission File Number: 001-38186
 CUSTOM TRUCK ONE SOURCE, INC.
 (Exact name of registrant as specified in its charter)

 Delaware
 84-2531628

 (State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)

 7701 Independence Ave
 Kansas City, MO 64125
 (Address of principal executive offices, including zip code)
 ( 816) 241-4888
 (Registrant's telephone number, including area code)
 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class
 Trading Symbol(s)
 Name of each exchange on which registered

 Common Stock, $0.0001 par value
 CTOS
 New York Stock Exchange

 Redeemable warrants, exercisable for Common Stock, $0.0001 par value
 CTOS.WS
 New York Stock Exchange

 Securities registered pursuant to Section 12(g) of the Act: None.
 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES No
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES No
 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No o
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No o
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer
 o

 Accelerated filer

 Non-accelerated filer
 o

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
 The aggregate market value of shares of common stock held by non-affiliates, computed by reference to the closing price for such common stock as of the last business day of the registrant's most recently completed second fiscal quarter, as reported on the New York Stock Exchange, was approximately $ 398.4 million.
 The number of shares of common stock outstanding as of March 1, 2024 was 240,265,228.
 DOCUMENTS INCORPORATED BY REFERENCE

 Document
 Where Incorporated

 Proxy Statement related to the 2024 Annual Meeting of Stockholders, which is expected to be filed with the Securities and Exchange Commission on or before April 29, 2024.
 Part III (Items 10, 11, 12, 13, and 14)

 Custom Truck One Source, Inc. and Subsidiaries
 Form 10-K Report Index

 10-K Part and Item No.
 Page No.

 Item 1
 Business

 Item 1A
 Risk Factors

 Item 1B
 Unresolved Staff Comments

 Item 1C
 Cybersecurity

 Item 2
 Properties

 Item 3
 Legal Proceedings

 Item 4
 Mine Safety Disclosures

 Item 5
 Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities

 Item 6
 Reserved

 Item 7
 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A
 Quantitative and Qualitative Disclosures About Market Risk

 Item 8
 Financial Statements and Supplementary Data

 Item 9
 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A
 Controls and Procedures

 Item 9B
 Other Information

 Item 9C
 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10
 Directors, Executive Officers and Corporate Governance

 Item 11
 Executive Compensation

 Item 12
 Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

 Item 13
 Certain Relationships and Related Transactions, and Director Independence

 Item 14
 Principal Accountant Fees and Services

 Item 15
 Exhibit and Financial Statement Schedules

 Item 16
 Form 10-K Summary

 Signatures

 Forward-Looking Statements
 Any statements made in this report that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and should be evaluated as such. These statements often include words such as "anticipate," "expect," "suggest," "plan," "believe," "intend," "estimate," "target," "project," "should," "could," "would," "may," "will," "forecast," and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. As you read and consider this Annual Report on Form 10-K, you should understand that these statements are not guarantees of performance or results and are subject to and involve risks, uncertainties and assumptions. You should not place undue reliance on these forward-looking statements or projections. Below is a summary of risk factors applicable to us that may materially affect such forward-looking statements and projections:
 • increases in labor costs, our inability to obtain raw materials, component parts and/or finished goods in a timely and cost-effective manner, and our inability to manage our rental equipment in an effective manner;
 • competition in the equipment dealership and rental industries;
 • our sales order backlog may not be indicative of the level of our future revenues;
 • increases in unionization rate in our workforce;
 • our inability to recruit and retain the experienced personnel, including skilled technicians, we need to compete in our industries;
 • our inability to attract and retain highly skilled personnel and our inability to retain or plan for succession of our senior management;
 • material disruptions to our operation and manufacturing locations as a result of public health concerns, equipment failures, natural disasters, work stoppages, power outages or other reasons;
 • potential impairment charges;
 • any further increase in the cost of new equipment that we purchase for use in our rental fleet or for sale as inventory;
 • aging or obsolescence of our existing equipment, and the fluctuations of market value thereof;
 • disruptions in our supply chain;
 • our business may be impacted by government spending;
 • we may experience losses in excess of our recorded reserves for receivables;
 • uncertainty relating to macroeconomic conditions, unfavorable conditions in the capital and credit markets and our inability to obtain additional capital as required;
 • increases in price of fuel or freight;
 • regulatory technological advancement, or other changes in our core end-markets may affect our customers' spending;
 • difficulty in integrating acquired businesses and fully realizing the anticipated benefits and cost savings of the acquired businesses, as well as additional transaction and transition costs that we will continue to incur following acquisitions;
 • the interest of our majority stockholder, which may not be consistent with the other stockholders;
 • our significant indebtedness, which may adversely affect our financial position, limit our available cash and our access to additional capital, prevent us from growing our business and increase our risk of default;
 • our inability to generate cash, which could lead to a default;
 • significant operating and financial restrictions imposed by our debt agreements;
 • changes in interest rates, which could increase our debt service obligations on the variable rate indebtedness and decrease our net income and cash flows;
 • disruptions or security compromises affecting our information technology systems or those of our critical services providers could adversely affect our operating results by subjecting us to liability, and limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, or implement strategic initiatives;
 • we are subject to complex laws and regulations, including environmental and safety regulations that can adversely affect cost, manner or feasibility of doing business;
 • material weakness in our internal control over financial reporting which, if not remediated, could result in material misstatements in our financial statements;
 • we are subject to a series of risks related to climate change; and
 • increased attention to, and evolving expectations for, sustainability and environmental, social and governance initiatives.
 These cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this report. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law. See "Risk Factors" in Part I, Item 1A of this Annual Report on Form 10-K, for additional risks.

 Item 1. Business
 Company Overview
 Custom Truck One Source, Inc. ("we," "our," "us," "Custom Truck," or "the Company"), a Delaware corporation, and its wholly owned subsidiaries are engaged in the business of providing a range of services and products to customers through rentals and sales of specialty equipment, rentals and sales of aftermarket parts and services related to the specialty equipment, and repair, maintenance, and customization services related to that equipment. On April 1, 2021, Nesco Holdings Inc. completed the acquisition of Custom Truck One Source, L.P. and changed its name to "Custom Truck One Source, Inc."
 We are a specialty equipment provider to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management and other infrastructure-related industries in North America. Our core business relates to our new equipment inventory and rental fleet of specialty equipment that is utilized by service providers in infrastructure development and improvement work. We offer our specialized equipment to a diverse customer base, including utilities and contractors, for the maintenance, repair, upgrade, and installation of critical infrastructure assets, including distribution and transmission electric lines, telecommunications networks, and rail systems, as well as for lighting and signage. We rent, produce, sell, and service a broad range of new and used equipment, including bucket trucks, digger derricks, dump trucks, cranes, service trucks, and heavy-haul trailers. We manage our business in our three reporting segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES"), and Aftermarket Parts and Services ("APS").
 We operate with a differentiated "one-stop-shop" business model, offering equipment rental, new and used equipment sales, and aftermarket parts and service out of more than 35 locations across the U.S. and Canada. Customers receive additional support throughout the country from Custom Truck's twenty-four hour, seven-day a week ("24/7") call center, approximately 90 mobile technicians, and over 2,600 third-party service partners. Custom Truck and its customers also benefit from its sophisticated sourcing model and large-scale integrated production and customization capabilities, which enhance the quality and diversity of its equipment offerings, reduce both cost and lead times for equipment sales and provide greater flexibility to optimize its rental fleet. These attributes, together with a strong reputation built over many years, position Custom Truck to capitalize on attractive secular growth trends across its end-markets.
 Custom Truck owns one of the industry's largest fleets of specialty rental equipment focused on electric utility transmission and distribution ("T&D"), rail, telecommunications, and infrastructure end-markets through our ERS segment. As of December 31, 2023, our fleet is comprised of more than 10,300 units with an average unit age of approximately 3.5 years, which we believe is young by rental fleet standards and compares favorably to the long useful life of the equipment. Our rental fleet is managed on a national level, which allows us to efficiently reposition equipment in response to shifts in regional demand and thereby sustain strong utilization levels.
 As is customary among equipment rental companies, we sell used equipment out of our rental fleet to end user customers. We also offer a broad variety of new equipment for sale across our end-markets, often highly customized to meet its customers' specific needs. Integrated production capabilities and extensive knowledge gained over a long history of selling equipment have positioned Custom Truck uniquely in the market as a trusted partner for customers seeking tailored solutions with short lead times. New and used equipment sales are accomplished through our TES segment.
 Through our APS segment, we provide our customers a total job-site solution, offering a range of products for rent or sale to fully outfit their equipment and crews for activity in the field. Our comprehensive APS offering expands opportunities to serve our equipment rental and sales customers through the convenience of a single vendor for all their specialty equipment, tools and accessories needs.
 End-Market Overview
 Our core end-markets include electric utility T&D, telecom, rail and general infrastructure, among others.
 General End-Market Trends
 The North American market has, and continues, to experience a secular shift from equipment ownership to rental. We believe that customers' growing preference for equipment rental is driven by several factors including the avoidance of significant capital outlay, improved asset utilization, reduced storage and maintenance, access to a wider range of modern productive equipment, dedicated customer care, and operational efficiencies. We believe that the rental penetration rate will continue to trend towards the levels observed in the broader market, and we believe there will be significant growth within our specific markets.

 On November 6, 2021, the United States Congress passed, and the President of the United States signed, the Infrastructure Investment and Jobs Act (the "Infrastructure Act"). The Infrastructure Act was amended and renamed to the Infrastructure Investment and Jobs Act. This amended version included approximately $1.2 trillion in spending in new and reallocated funds with positive impacts to each of our end-markets.
 Electric Utility T&D End-Market
 Maintaining safe and effective transmission and distribution lines is critical to national infrastructure, as they carry the electricity that powers the nation. Transmission lines carry high voltage electricity long distances, while distribution lines carry electricity from local transformers to houses and businesses. Additionally, as the economy "electrifies," in pursuit of reducing greenhouse gas emissions, electric reliability has become increasingly important. There will continue to be an increasing need for grid resiliency projects such as fire mitigation and storm hardening, and substantial renewable energy investments will be required in the electric transmission grid. From 2008 to 2022, compound annual growth rates for capital expenditures relating to transmission, distribution and solar were approximately 7%, 6% and 50%, respectively. Our specialty equipment is used for these projects, including the maintenance and repair of live lines and installation of new lines. Capital expenditure spend in the electric utility T&D end-market were estimated to be approximately $88 billion in 2023. This spend is driven by a number of attractive dynamics, demonstrating that the U.S. is potentially in the very early stages of a multi-year electric utility T&D spending cycle.
 Aging and Underinvested Electric Utility T&D Infrastructure – Electricity delivery in the U.S. depends on an aging and complex patchwork system of power generation facilities, transmission grids, local distribution lines, and substations. Most electric utility T&D lines were constructed in the 1950s and 1960s with a 50-year life expectancy and were not originally engineered to meet today's load demands. The average age of the transmission system in the United States is well over 40 years, with 25% to 35% being greater than 50 or more years old. Due in part to this aging infrastructure, costly electric emergency incidents and disturbances have increased since 2000. Multiple costly fires have also been caused by aging and under-maintained transmission and distribution lines. The prevention of additional incidents associated with the continued operations of aging electric utility T&D infrastructure is expected to continue to drive increasing levels of maintenance and repair and replacement spend by utilities.
 Changing Generation Landscape – The ongoing transition from coal to gas and renewables continues to drive changes in the generation landscape and transmission project development. Twenty-four states plus the District of Columbia have adopted specific greenhouse gas reduction targets to address climate change. As a result, significant spend for new transmission lines will be required to interconnect these new sources of power with the electrical grid.
 Increased Outsourcing by Utilities – Utilities are increasingly turning to specialized third-party contractors to fulfill construction and maintenance needs. This outsourcing trend is driven by the challenge of an aging workforce and desire to shift the management and responsibilities of non-core activities to external service providers. Outsourcing is a favorable trend for us, given our rental penetration among electric utility T&D contractors who prefer to rent due to lower initial capital outlay, increased flexibility, improved asset utilization and productivity, and significantly reduced storage and maintenance costs.
 The Infrastructure Act includes $7.5 billion to build a national network of electric vehicle chargers and $65 billion to upgrade power infrastructure.
 Telecom End-Market
 Telecommunications infrastructure, including telecom cells, towers, and wirelines, are the backbone of telephonic interaction and the transportation of mobile data. We provide the specialty equipment required to maintain and install telecom cells, towers, and communication lines. Construction spend on telecommunications infrastructure has exceeded approximately $80 billion annually in recent years. This spend is expected to continue to grow due largely to the advent of 5G technology, which requires existing cell sites add equipment to support new frequencies. 5G technology will require the installation of numerous higher bandwidth small cells to "densify" wireless networks and enhance performance. This is because small cells only deliver coverage within approximately a quarter mile of their location, compared to approximately five miles for the existing 4G and predecessor macro cells. As a result, approximately 20 times more small cells will need to be installed in order to provide the same level of coverage as the existing macro cells.
 Rapid technological advancements, including advanced digital and video service offerings, continue to increase demand for greater wireline and wireless network capacity and reliability. Data traffic is at an all-time high and is expected to increase in the future. North America data traffic is expected to grow at a 17% compound annual growth rate ("CAGR") from 2022 to 2029.
 From 2010 to 2022, annual spending by the major U.S. wireline, wireless and cable broadband providers has increased from approximately $68 billion to over $102 billion, a CAGR of approximately 15%. The Infrastructure Act provided an additional $65 billion to increase access to reliable high-speed internet.

 Rail End-Market
 Freight and commuter rail are responsible for transporting products and people across North America. Our rail mounted equipment is used for a variety of tasks including the installation of new rail and maintenance of the existing rail lines. The equipment is also often used for working on older infrastructure such as repairing bridges and terminals with more antiquated track and systems that are in need of upgrades with more modern systems like Positive Train Control ("PTC") and others. The five largest public railroads operating in North America spend more than $12 billion annually in capital expenditures. Such capital expenditures are expected to continue to grow as freight demands increase. In addition to freight rail, spend on active commuter rail projects is significant with a growing pipeline.
 Freight Rail – Freight rail, one of the most cost-effective, energy-efficient modes of transport, carries a majority of intercity freight as measured by ton-miles, more than any other mode of transportation. Our North American customers are principally Class I railroads and related contractors. Data indicates that these Class I operators operate approximately 70% of total United States railroad route miles.
 Commuter Rail – Trends such as population growth, increasing urbanization, a focus on sustainability, environmental awareness, and increasing highway congestion are expected to drive continued investment in commuter rail. Furthermore, as a result of years of insufficient funding, transit systems across the U.S. are struggling to cope with aging infrastructure, creating and increasing backlog. The most recent Federal estimates quantify the backlog of projects required to attain a "state of good repair," meaning public transit is repaired to an age within its average service life, at $105 billion, which is projected to grow as high as $290 billion by 2029 if not addressed.
 The Infrastructure Act provides $39 billion to modernize transportation and an additional $89.9 billion in guaranteed funding for public transportation along with an additional $66 billion of funding specifically earmarked for passenger rail services.
 Infrastructure End-Market
 We also serve the general infrastructure end-market, which includes surface transportation, national highway performance, highway safety, metropolitan transit, and other key infrastructure systems, including residential and non-residential waste and water. Total infrastructure capex spend in 2023 was estimated to be just under $270 billion, and we believe the infrastructure end-market outlook remains positive.
 We consider the waste end-market as part of the general infrastructure industry. Long-term, secular growth in this market is driven by growing waste volumes generated by increasing waste generation per capita. Population and income growth drive municipal solid waste generation. Municipal solid waste revenue is projected to grow at a compounded annual growth rate of 4.2% globally from 2024 to 2030. Waste is generally considered to be a recession-resistant industry given the non-discretionary nature of waste collection and disposal. Ongoing consolidation amongst waste haulers results in increasing market share for large, well-capitalized companies that have the resources to invest in the latest trucks and equipment.
 The Infrastructure Act provides $55 billion to expand access to clean drinking water for households, businesses, schools, and child care centers across the United States through many programs starting in 2021, over a 5 year period.
 Products and Services
 Equipment Rental Solutions and Truck and Equipment Sales
 Our equipment rental fleet consists of more than 10,300 units, which management believes is among the largest specialty equipment rental fleets in North America. Our fleet consists of more than 250 product variations to serve the specialized needs of our customers including various terrain options such as truck mounted, rail mounted, track mounted, and all-wheel drive. Our equipment can reach transmission lines and cell sites in excess of 200 feet in the air, dig to a depth of 60 feet to install telephone and power line poles, provide power line and fiber line pulling capacity of up to 40,000 pounds, and reach remote and inaccessible areas for rail maintenance. A large percentage of our fleet is insulated, which allows customers to safely work on live electric lines. Our equipment is regularly tested for safety, which includes regulation-mandated dielectric testing of all insulated units to ensure safe operations near electrical wiring. The majority of our equipment can be used across a variety of end-markets and many of our customers operate in multiple end-markets. Rental rates vary depending on product type, geography, demand, and other factors.

 Examples of our rental and sales equipment include:

 Bucket Trucks
 Trucks equipped with a bucket mounted on an insulated or non-insulated hydraulic lifting aerial device used to maintain and construct utility, rail, or telecommunication lines.

 Digger Derricks
 Trucks equipped with a boom and auger used to dig holes and set utility, rail, and telephone poles.

 Cable placers
 Equipment used to string new and re-conduct overhead utility, rail, telecom, or cable lines including pole trailers, reel handling trailers, and other material handling trailers.

 Boom Trucks
 Trucks equipped with a boom mounted on an insulated or non-insulated hydraulic lifting aerial device used to maintain and construct utility, rail, or telecommunication lines.

 Rail Trucks
 Trucks equipped with specialty equipment to drive on rail tracks.

 Roll-Off Trucks
 Trucks equipped to transport waste containers

 Knuckleboom Trucks
 Trucks equipped to lift for utility, construction, and building materials applications

 Vacuum Trucks
 Trucks equipped to safely dig holes and transport materials by vacuuming materials or liquids

 Cranes
 Equipment made to lift heavy objects utilized in our core markets

 Underground Equipment
 Variety of equipment used to place and remove underground utility and telecom lines without disruption to the surface.

 Aftermarket Parts and Services
 Our APS offerings include a broad range of parts, tools, and accessories inventory, which is a natural extension of our core equipment offering and can be rented or purchased on an individual basis or in packaged specialty kits.
 The technical nature of certain parts, tools, and accessories requires periodic testing in a certified lab and expertise in specialized repairs, which we provide at our test and repair facilities. We provide nationwide coverage through eight locations that serve as hubs for the rental and sale of parts, tools, and accessories, and five of which offer technical test and repair.
 Examples of our aftermarket parts and services include:

 Equipment Parts

 Aftermarket replacement parts for various types of trucks and equipment sold and rented by Custom Truck.

 Stringing Blocks
 Stringing dollies and accessories used to string powerline, telephone line (including fiber), or cable, above ground or underground in the new construction, rebuild, or maintenance of the lines.

 Augers
 Tool used to dig holes for power, telephone, or cable poles and also used to dig holes for structure bases, pilings, and foundation supports.

 Insulated Tools
 Extension arms, temp arms, insulated ladders, etc., used to insulate and dielectrically protect workers and temporarily reposition powerlines for safe execution of tasks while working at height in live line circumstances.

 Other parts, tools, and accessories ("PTA")

 Crimping tools and dies, pumps/motors, underground fiber laying tools, and various other tools used in either utility, telecom, or rail applications.

 Test and Repair Services
 Testing and inspections of various tools and safety equipment and personal protective equipment ("PPE") to comply with regulatory and safety requirements.

 Upfit and Repair Services
 Customizing existing heavy-duty trucks by adding features, and repair services, including labor and parts, for customer-owned trucks.

 Competitive Strengths
 We believe our platform is differentiated and benefits from several significant strengths that will continue to support our leading market position and future growth. We believe that the following factors have been instrumental in our success and will position us for continued growth:
 Market Leader with a Differentiated "One-Stop Shop" Platform – Our platform offers our customers a true "one-stop shop" solution for their needs across the specialty equipment market, including rentals, new and used sales, production and customization, aftermarket parts and services, and financing and asset disposal, building upon the successful business model that has been a key source of differentiation for Custom Truck historically. Our flexibility to meet customers' capital allocation preferences allow us to develop deeper relationships with our customers and our wide variety of equipment offered enables us to meet more of our customers'

 needs than our competitors. Additionally, our national platform and scale provides us the ability to serve both regional and national customers wherever they operate.
 Integrated Business Model with Large-Scale Production and Customization Capabilities – We are able to provide our customers with highly tailored solutions on an expedited basis, enabled by our extensive internal production and customization operations. These capabilities allow us to deepen our relationships with customers by offering them the ability to customize equipment to meet their specific job demands. Our large-scale production further offers benefits to customers by reducing lead times for equipment and provides the ability to change and adapt mid-production should the customer need to modify its order. Maintaining inventory and shorter lead times helps us to support our own rental operations and more quickly react to changing customer demands and preferences. We are also able to quickly adapt our processes and procedures to enter into new markets and product offerings, such as dump trucks, roll-offs, and vacuum trucks, which are products that have been added over the past several years. As one of the largest consumers of vocational chassis and attachments in the United States, we have a structural cost advantage on purchasing. Our production capabilities further lower costs, while providing flexibility to pursue the highest growth portions of the market.
 Attractive Long-term End-Market Dynamics – We are a leader across a diverse set of end-markets, including infrastructure-related electric utility T&D, telecom, rail, forestry, and waste management, among others, many of which have attractive long-term growth dynamics. This position was established by our expansive fleets, national sales and service network, longstanding customer relationships, and operational expertise. The favorable end-market dynamics may lead to increased spend on specialty equipment by our existing customers. These end-markets are in the early years of a secular upcycle that is expected to persist for years to come. We are well positioned to benefit from this projected growth and maintain the flexibility to pivot our production and focus to any end-market that is experiencing greater demand due to our deep knowledge and expertise in the production of different types of equipment.
 Young, Well-Maintained Rental Fleet Comprised of In-Demand Equipment – Our rental fleet consists of more than 10,300 units and is one of the youngest in the industry, with an average age of 3.5 years as of December 31, 2023. We maintain the majority of our fleet using our own trained technicians and locations to ensure consistent repairs, best-in-class service and maintenance, and delivery of fully functioning, ready-to-work equipment to our customers. We are highly responsive, adding high-quality equipment to our fleet on an ongoing basis to meet customer demands in a changing market landscape. We focus our production capabilities on the equipment that our customers need most in the end-markets with the most growth potential. Disciplined fleet maintenance and strict focus on meeting customer and end-market requirements have resulted in over 80% utilization on average of our rental fleets in the last two years.
 Geographical Diversity – We have a large geographic footprint that enables us to provide local service throughout North America. Our more than 35 locations are strategically located to provide access to key high-growth end-markets and have sufficient geographic reach to provide a holistic solution to nationwide accounts. Our footprint is further expanded by over 2,600 third-party service partners. We maintain a 24/7 call center, as well as a large team of mobile technicians, ensuring that our customers can quickly access experienced technicians regardless of geography. Because our rental fleet is managed nationally, equipment can be deployed strategically across locations in periods of high regional demand. This allows us to maintain high utilization rates for our entire rental fleet while quickly responding to both equipment and service requests from customers. Our broad reach also represents a competitive advantage in serving customers with nationwide operations who may prefer the convenience of interacting with a limited number of equipment providers. Although we have an expansive national footprint already, we have identified additional attractive geographic markets for potential expansion.
 Strong, Diverse Client Relationships and Industry Expertise – We serve more than 8,000 customers, with the top 15 customers representing approximately 16% of total revenue and no single customer representing greater than 3% of total revenue in 2023. Of our top 20 customers, 14 of them both rent and purchase equipment. We have very strong brand recognition among our industry-leading customers. Our ability to deliver an unmatched value proposition for our customers' most complex and technical requirements, on a tight deadline, results in long-tenured relationships with premier customers across our different end-markets. We have significant tenure with our top customers, with key relationships spanning more than 17 years. Our strong knowledge of the equipment and product requirements in our customers' end-markets allows us to work closely with our customers to determine their specialty equipment needs while our ability to offer the optionality to either rent or purchase equipment helps meet customers' capital allocation preferences and increases customer penetration.
 Attractive Unit Economics Driving High Returns – Our integrated, "one-stop shop" business model results in both lower costs and higher equipment resale values, driving exceptional unit economics. We believe that our ability to purchase equipment components separately with vertically-integrated assembly results in a cost advantage over buying fully completed units. Additionally, our direct-to-customer sales channels drive attractive net resale values that exceed those of our competitors who typically sell used equipment through auctions.

 Growth Strategy
 We offer a full suite of specialty equipment services and a broad portfolio of products, which provides us with numerous channels for future growth and opportunities to deepen customer relationships. We intend to maintain our leading position and expand our market share by continuing to pursue the following strategies:
 Capitalize on Favorable Trends Across a Large Addressable Market – Because of the highly fragmented industry in which we operate, we have significant runway to increase our share of the market. Based on available industry sources, we estimate the addressable market to be approximately $65 billion: $20.4 billion in new sales, $23.2 billion in aftermarket parts and service, and $21.4 billion in rental and used sales. The new sales addressable market has grown from an estimated $15.6 billion in 2019 to $20.4 billion in 2023. Our differentiated cost position, North American branch network, broad product offering, and flexible distribution model position us to achieve strong growth in the future. Additionally, several end-markets we serve, including electric utility T&D, telecom, infrastructure, rail, forestry, and waste management, are increasing their capital expenditures. Our production and customization capabilities will only serve to bolster our ability to meet the growing demand and changing landscapes in these end-markets as we can nimbly adapt as necessary to capitalize on opportunities as they present themselves.
 Invest in Rental Fleet to Meet Growing Demand – We see continued opportunity to invest in our rental fleet to meet customer demand. We will look to drive utilization improvements via enhanced selling efforts and investments in in-demand equipment as well as drive rental penetration via continued customer education. We believe that by investing in new products and adding to our rental fleet, we can continue to satisfy the growing specialty equipment needs of our customers across end-markets. We have the resources and capital structure necessary to capture incremental demand. Lastly, a large percentage of our rental fleet is currently focused on serving the electric utility T&D and telecom industries, but we believe there is significant opportunity to continue to grow our fleet of specialty equipment tailored to serve the growing rail and infrastructure end-markets as well.
 Grow Equipment Sales Across Both Current and New Customers, End-Markets, and Product Offerings – We will be able to leverage our national and local sales approach to achieve growth in our existing customer base and across existing and newly entered product categories. We have identified several new product categories that we plan to expand into, where our experience and expertise in production, customization, and purchasing are expected to provide favorable returns. We will look to drive volume growth via continued equipment innovations and strategic selling initiatives. We are currently well positioned to capitalize on favorable trends across end-markets, including grid updates and maintenance, build-out of renewable resources, 5G roll-out, and potential significant infrastructure spend.
 Increase Penetration of Aftermarket Parts and Service – Each full-service location provides certified test and repair services and an expanded product offering of both insulated and non-insulated tools. Today, we leverage our service technicians, including those dedicated to field service, to support our existing rental fleet and select customer-owned equipment. We see an opportunity to grow the size of the internal service organization and external service provider network to increase our ability to service customer-owned equipment. Additionally, we launched our e-commerce platform in 2020 to begin selling proprietary Load King equipment parts and other targeted specialty equipment parts.
 Continue to Pursue Domestic Geographic Expansion – We operate more than 35 locations; however, broad sections of the United States and Canada are still outside of our primary operating area. In the past, we have expanded into new geographical markets through both strategic acquisitions and through internal growth. There is an opportunity for future expansion across the United States to support growth. Custom Truck has successfully opened five locations in geographic areas where there were no attractive acquisition targets, exemplifying the ability to expand our reach without the use of acquisitions. In addition to organic geographic expansion, we may opportunistically pursue acquisitions to expand our product and service offering and accelerate growth.
 Sales and Marketing
 Sales
 We operate with a nationwide direct sales team to address the specialized needs of our customer base and to cultivate strategic partnerships with key customers. Our more than 100-member sales organization is led by members of our senior management team, including Presidents, Vice Presidents and Regional Sales Managers. The average years of experience in the industry of our sales personnel is more than 25 years. Our field sales organization and 24-hour support center have developed "first-call" relationships with several of our largest customers while providing significant expertise in the technical nature of the equipment and projects.
 For key national or regional accounts, we employ a top to bottom sales approach with a focus on building partnerships at all levels within these key accounts and securing commitments to use us as a preferred supplier. Strategic Account Managers are responsible for

 establishing and managing these relationships along with direct involvement from senior leadership to create more contact and touch points between the key decision makers and Custom Truck.
 We divide the remainder of our sales organization into regional go-to market teams for our ERS, TES and APS segments consisting of Territory Managers supported by Inside Rental Representatives and Assistants. Territory Managers are responsible for developing new relationships and maintaining communication with key decision makers at customer organizations and working with employees at both the corporate office and on individual job sites to ensure customer satisfaction. After a rental opportunity is generated, Inside Rental Representatives and Assistants serve in a support role by working directly with customers to finalize orders, schedule delivery, coordinate payment and handle inbound requests. This direct communication helps expedite future orders on rental equipment availability and rate quotes.
 Marketing
 We utilize targeted advertising, trade shows, focused email distributions, a comprehensive equipment catalog, and our website for marketing our products and services. Our rental catalog contains detailed technical information and diagrams for all our products, while the website offers easy access to equipment specifications and rental listings. Our digital advertising efficacy is maximized by the following:
 • We invest in Search Engine Optimization ("SEO") to maintain top result ranks for search terms we anticipate our customers would use;
 • We leverage marketing analytics to measure and adapt campaign performance;
 • We use social media to connect with customers and prospects across an array of core end-user segments, and to source user-generated content of our equipment excelling in use;
 • We leverage Search Engine Marketing ("SMO"), and regularly adjust our campaign investments to:
 i.target peak sales and rental seasonality by segment,
 ii.align with Company inventory levels, and
 iii.achieve target revenue goals
 • We advertise available inventory in select industry online marketplaces.
 In addition to print and online publications and our digital advertising efforts noted above, we participate in national and select regional trade shows, which represent important customer touch points for the sales team to approach new customers, maintain strong relationships with existing customers and promote new product launches.
 Facilities
 We are headquartered in Kansas City, Missouri where we house executive management, accounting, finance, information technology, human resources, marketing, and procurement professionals, as well as production, assembly, service and distribution operations. We maintain a diverse geographic footprint in the U.S. and Canada, with more than 35 locations.
 Intellectual Property
 We do not own or license any patents, patent applications, or registered copyrights. We own a number of trademarks and domain names important to the business. Our material trademarks are registered or pending applications for registrations in the U.S. Patent and Trademark Office and various non-U.S. jurisdictions. We use "Custom Truck One Source" as unregistered trademarks and "Load King" as a registered trademark. Additionally, pursuant to an agreement with Terex, we have a revocable, royalty-free, limited license to use certain Terex trademarks to promote the sale and servicing of Terex products, subject to certain conditions of use. We believe we own or license, or could obtain on reasonable terms, any intellectual property rights needed to conduct its business.
 Governmental Regulation
 We are subject to various governmental, including environmental, laws and regulations. Regulations affecting our operations principally relate to the licensing, permitting and inspection requirements for vehicles in our rental fleet. Additionally, we are subject to environmental regulations governing the discharge of pollutants into the air or water, the management, storage and disposal of, or exposure to, hazardous substances and wastes, the responsibility to investigate and clean up contamination, and occupational health and safety. The Company is not aware of any material instances of non-compliance with respect to the foregoing regulations.

 We are subject to federal, state, and local environmental laws and regulations with respect to the ownership and operation of tanks for the storage of petroleum products, such as gasoline, diesel fuel and motor and waste oils. If leakage or a spill occurs, it is possible that the resulting costs of cleanup, investigation and remediation, as well as any resulting fines could adversely affect our business. The U.S. Congress and other federal and state legislative and regulatory authorities in the U.S. and internationally have considered, and will likely continue to consider, numerous measures related to climate change and greenhouse gas emissions. Should rules establishing limitations on greenhouse gas emissions or rules imposing fees on entities deemed to be responsible for greenhouse gas emissions become effective, demand for our services could be affected, our vehicle, and/or other, costs could increase, and our business could be adversely affected.
 Human Capital
 We provide a wide range of quality, customized trucks and equipment to people who are building and rebuilding our nation. We are growing rapidly and we understand that we need to attract and leverage an engaged and talented team of people with specialized expertise to deliver the best products and service to our customers.

 Our drive, expertise, and responsiveness to the specialized needs of our customers set us apart. Management values a strong relationship with our employees across all our locations. As of December 31, 2023, we had approximately 2,580 employees in more than 35 locations across North America. Approximately 2% of our U.S. employees are covered by a collective bargaining agreement.
 Our Culture
 Our success is enabled by our core values that guide how we interact with each other and our customers, vendors, suppliers, and key stakeholders in our communities.
 • Care & Respect - We treat each other with respect and show genuine care for one another, our customers, suppliers, and communities where we live and work.
 • Solve Problems Like A Mechanic - We relish solving problems, our curiosity and true grit enables us to find lasting solutions that meet our customers' needs.
 • Driven to Deliver - We own our work, take initiative and use our determination to make our work better and deliver on our commitments and drive results that matter.
 • Engage Collaboratively - We help each other, we openly share and listen to each other's ideas and opinions – even when we disagree because we succeed when we work together.
 • Spark Innovation - We embrace new ways of working; we challenge the status quo and continue to explore and learn to enhance our skills and work.

 We are committed to an inclusive work environment where our employees of all backgrounds and experiences can succeed. We are always striving to enhance our employee experience and seek feedback from employees through our engagement surveys, which helps us identify areas where we can continuously enhance our work experience and sense of belonging.

 We have an engaged Culture Champion Network, which is comprised of a cross-section of employees from a diverse range of backgrounds who collaborate to strengthen and celebrate our culture.

 Our Employee Resource Groups ("ERG"s) create a community for our employees who share similar interests. These employee-led groups encourage meaningful connections, support our employee wellbeing, and enable personal and professional growth. They make CTOS a better, more inclusive place to work while also positively impacting our communities where we live and work.
 • In 2023, we launched a women's ERG called "Women Empowered" to propel personal and professional growth. With Women Empowered, we strive to create the best female talent and top contributors of the future. Our Women Empowered ERG fosters meaningful connections with its 345 members and 201 allies.
 • We engage with our Veterans ERG as a strategic business partner to support and foster an inclusive culture and positive work experience for our military and veteran employees. Our military and veteran employees represent approximately 7% of our U.S. workforce and bring valuable attributes and skills to our organization. This ERG has over 240 members and allies and provides support to current and past service members within our organization and in the communities where we operate.

 Our Talent Attraction
 We engage in multiple initiatives focused on identifying, hiring and retaining a varied range of talent. These include a strong employee referral program, engaging with recruiting firms, utilizing job-posting sites, and collaborating with university and vocational technical programs that specialize in connecting companies like ours with an array of candidates. We will continue to review and refine our initiatives as we seek to grow and further broaden the experience of our workforce.
 We recruit at universities and provide internships across multiple disciplines to attract the best early-career talent. In 2023, we provided 20 paid internship opportunities to students from various vocational high school and university programs. We recruit extensively for external experienced hires to bring in diverse experience and perspectives.
 CTOS believes in giving everyone, including those with prior criminal histories, valuable skills and a rewarding career with a team who respects and genuinely cares about them as individuals. Throughout our rich history, we have given many people second chances. In 2023, we formally adopted a Fair Chance Hiring program so we can provide even more opportunities to assist people with rebuilding their lives and positively contributing to our communities while growing our workforce.
 Military veterans connect well with our culture and bring skills that are highly leverageable across our business. We partner with various organizations to support a range of military recruitment efforts, including Hiring Our Heroes, the U.S. Chamber of Commerce and Military Transition Assistant Programs to recruit veteran candidates to join our team and have a rewarding career following their military service. Our Veterans ERG actively helps us advertise and recruit veteran candidates through career fairs and veteran community events.
 Our Talent Development – Building Capabilities
 We value lifelong learning and support our employees' development through a combination of experiential on-the-job learning and formal education to advance their career. Our talent initiatives include:
 • A talent review and succession planning process in which we assess and develop future talent for key leadership roles to ensure we successfully transfer institutional knowledge and expertise from seasoned leaders to emerging talent and provide rewarding career paths.
 • Technical and operational training with a special emphasis on skill development, safety, quality, and customer service. We have developed a Service Technician Education Program ("STEP") that provides our service technicians a clear path for professional and career development with over one hundred courses in six key functional areas, enabling them to progress from apprentice to master mechanic.
 • Tuition assistance to assist our employees with expanding their formal education while working.
 Our Ethics & Compliance
 One of our most valuable assets is our integrity, an unwavering commitment to operating honestly and ethically in all that we do. We established a Code of Conduct to ensure our employees understand our commitment and how to report concerns.
 We train our employees on our Code of Conduct and offer multiple pathways for reporting any concerns promptly, including through their leader, Human Resources, Legal or our anonymous 24/7 compliance hotline, which is managed by an experienced and objective third-party.
 Our Health, Safety & Well Being
 We are committed to a safe and healthy workplace and culture of total well-being. We strive to have zero workplace injuries and engage our employees in raising awareness and education through our Safety Ambassador Network, which includes a cross section of employees from multiple work facilities. We have a network of approximately 100 Safety Ambassadors who are provided training and instruction from our Environmental, Health and Safety professionals. Our Safety Ambassadors are volunteers who have shown a willingness and capability to devote a portion of their workday to ensure that employees have a safe environment in which to work. We track recordable injuries and have an incident management system to investigate all safety incidents. Every incident is investigated and, based on the findings, our safety team implements processes and procedures to prevent recurrences and remediate known hazards.
 We offer competitive pay and a comprehensive benefit program including medical, vision, dental, life and disability insurance to attract and retain top talent. We offer employees options to enhance their financial security through our 401(k) savings program that includes a Company matching component, health savings account, and pre-tax flexible spending accounts for healthcare and dependent care. We provide employees with the opportunity to participate in the Company's success with equity ownership at a discounted price through our Employee Stock Purchase Plan.

 We provide employees and their family members with 24/7 access to doctors and counselors with telemedicine and virtual counseling with no cost to our employees. In addition, we offer an employee assistance program that provides employees and their family members with confidential support on a wide variety of areas such as mental and emotional health conditions, stress management, dependent/elder care, nutrition, fitness, and legal and financial issues.
 Our Community Giving
 We strive to maximize our social impact within our communities and support a culture of care across our workforce. We partner with nonprofit organizations that are aligned to where we operate and who have demonstrated organizational effectiveness, transparency, and a proven history for making a positive impact. CTOS community giving includes financial donations, volunteer time, and in-kind support to eligible third-party organizations who support our local communities in one of our key focus areas.
 • Education – supporting vocational educational programs, enabling people to develop a valuable skilled trade and launch a meaningful career.
 • Military / Veteran & Public Safety – supporting future, active and veteran members of the armed services, police, fire, and first responders who put their lives on the line to protect us. We also support prevention education programs to help keep our communities safe.
 • Community Enrichment – enhancing the quality of life of people in our communities by supporting outreach and educational programs that enhance local living conditions.
 • Economic Empowerment – providing support to enable employment, empowering people to gain valuable skills to become economically or financially self-sufficient.
 Legal Proceedings and Insurance
 From time to time, we are subject to various lawsuits, claims and legal proceedings, the vast majority of which arise out of the ordinary course of business. The nature of our business is such that disputes related to vehicles and accidents occasionally arise. We assess these matters on a case-by-case basis as they arise and we establish reserves as and if required, based on our assessment of exposure. We have insurance policies to cover general liability, product, and workers' compensation related claims. Management believes that none of the existing legal matters will have a material adverse effect on our business or financial condition.
 Available information
 This Annual Report on Form 10-K, as well as future quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to all of the foregoing reports, are made available free of charge on our Internet website ( under "Investors" / "Financials" / "SEC Filings" as soon as reasonably practicable after such reports are electronically filed with or furnished to the Securities and Exchange Commission ("SEC"). The contents of our website are not incorporated by reference in this Annual Report. The SEC also maintains an Internet website that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. The public can obtain any documents that are filed by us at www.sec.gov.

 Item 1A. Risk Factors
 In addition to the other information contained in this Annual Report on Form 10-K, the risk factors discussed herein should be considered carefully in evaluating the Company. Any of these factors could result in a significant or material adverse effect on our business, results of operations and financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business results of operations and financial condition.
 Risks Related to the Company's Business and Industry
 Effective management of our rental equipment is vital to our business, and an inability to obtain raw materials, component parts and/or finished goods in a timely and cost-effective manner would adversely affect our ability to manufacture and market our products.
 Our rental equipment has a long economic life, and managing this equipment is a critical element of our business. We must successfully maintain and repair our equipment in a cost-effective manner to maximize the economic life of our products and the level

 of proceeds from the sale of such products. As the needs of our customers change, we may need to incur costs to relocate or remanufacture our assets to better meet shifts in demand. If the distribution of our assets is not aligned with regional demand, we may be unable to take advantage of opportunities despite excess inventory in other regions. If we are not able to successfully manage our assets, our business, results of operations and financial condition may be materially adversely affected.
 We purchase raw materials, component parts and finished goods to be used in the manufacturing, sale and rental of our products. In addition, we may incorporate vehicle chassis provided directly by our customers in our production process. Although the vast majority of our raw materials and component parts are sourced domestically, certain of our suppliers are based in other countries, and certain of our domestic suppliers may source subcomponents from suppliers based in other countries. Uncertainty remains regarding supply chain disruptions, inflationary pressure, public health crises, and geopolitical risks that have led to issues, broadly, in the supply chain. Changes in our relationships with suppliers, shortages in availability of materials, production delays, regulatory restrictions, public health crises, armed conflicts or political instability or other supply chain disruptions, whether due to our suppliers or customers, could have a material adverse effect on our ability to timely manufacture and market products. Increases in the costs of shipping and transportation, purchased raw materials, component parts or finished goods could result in manufacturing interruptions, delays, inefficiencies or our inability to market products. The unprecedented nature of the supply chain disruptions continues to make it difficult to predict our future business and financial performance. In addition, our profit margins would decrease if prices of purchased raw materials, component parts or finished goods increase and we are unable to pass on those increases to our customers.
 The Company is subject to competition, which may have a material adverse effect on the Company's business by reducing the Company's ability to increase or maintain revenues or profitability.
 The equipment dealership and rental industries are highly competitive and fragmented. Many of the markets in which the Company operates are served by a large number of competitors, ranging from national and multi-regional equipment rental companies to small, independent businesses with a limited number of locations. Some of the Company's competitors may have significantly greater financial, marketing, and other resources than the Company does, and may be able to reduce rental rates or sales prices in the market and erode customer loyalty, which could negatively impact our business. The Company may encounter increased competition from existing competitors or new market entrants in the future, which could have a material adverse effect on the Company's business, financial condition and results of operations.
 Our sales order backlog may not be indicative of the level of our future revenues.

 Our sales order backlog represents future production for which we have written orders from our customers for customized and stock equipment. Orders that comprise our backlog may be subject to change in quantities, delivery, specifications and terms, or cancellation. Our backlog remains strong despite a year-over-year decrease, and may not remain at such levels in the future. Our reported sales order backlog may not be converted to revenue in any particular period and actual revenue from such orders may not equal our backlog. Therefore, our sales order backlog may not be indicative of the level of our future revenues.
 A small portion of our workforce is unionized, and more of our workforce could become unionized in the future, which could negatively impact the stability of our production, materially reduce our profitability and increase the risk of work stoppages.
 Our employees have the right at any time under the National Labor Relations Act to form or affiliate with a union, and unions may conduct organizing activities in this regard. If our employees choose to form or affiliate with a union and the terms of a union collective bargaining agreement are significantly different from our current compensation and job assignment arrangements with our employees, these arrangements could negatively impact the stability of our production, materially reduce our profitability and increase the risk of work stoppages. In addition, even if our managed operations remain primarily non-union, our business may still be adversely affected by work stoppages. The stoppage of work for a prolonged period of time at one, or several, of our principal manufacturing facilities resulting from union or non-union matters could materially adversely affect our business.
 As a small portion of our workforce is unionized, we are subject to risk of work stoppages and other labor relations matters. As of December 31, 2023, approximately 2% of the U.S. hourly workers of the Company were represented by a labor union and were covered by a collective bargaining agreement. Any strikes, threats of strikes or other organized disruptions in connection with the negotiation of new labor agreements or other negotiations could materially adversely affect our business as well as impair our ability to implement further measures to reduce costs and improve production efficiencies.
 We may not be able to attract and retain skilled technicians, which could have a material adverse effect on our ability to meet customer demand.
 Competition for skilled technicians in our industry, especially during periods of low unemployment or periods of high demand, could increase our labor costs and hinder our ability to meet customer demand, which could have a material adverse effect on our business, financial condition and results of operations.

 A number of key personnel are critical to the success of our business.
 Our success is dependent on our ability to attract and retain highly skilled personnel. Competition within our industry and the business world for high-performing management talent is substantial. We have senior executives and other management-level employees with extensive industry experience. We rely on this knowledge and experience in our strategic planning and in our day-to-day business operations. Additionally, due to our legacy as a combination of several family-operated businesses, a number of our key employees have deep institutional knowledge and family relationships within our organization. An inability to retain these individuals or ensure smooth transitions with timely and effective transfers of knowledge could have a negative impact on our business. Competition for experienced managers and skilled technicians in our industry can be intense. If we fail to retain and recruit the necessary personnel, our business and our ability to retain customers and provide acceptable levels of customer service could suffer.
 A material disruption to our operation and manufacturing locations could adversely affect our ability to generate revenue.
 We have several significant production and manufacturing locations. If operations at any of these production and manufacturing locations were disrupted as a result of public health concerns, equipment failures, natural disasters, work stoppages, power outages or other reasons, our business, financial condition and results of operations could be adversely affected. Interruptions in production could increase costs and delay delivery of units in production. Production capacity limits could cause us to reduce or delay sales efforts until production capacity is available.
 We may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a material negative effect on our financial condition and results of operations and contribute to negative market perceptions about the Company or its securities, which could cause you to lose some or all of your investment.
 The cost of new equipment that we purchase for use in our rental fleet or for sale as inventory may increase, and the aging or obsolescence of our existing equipment, and fluctuations in the market value thereof, could have a material adverse effect on our business, financial condition and results of operations.
 The cost of new equipment from manufacturers that we purchase for use in our rental fleet or for sale may increase as a result of factors beyond our control, such as inflation, higher interest rates and increased labor and raw material costs, including increases in the cost of steel, which is a primary material used in most of the equipment we use or sell. Such increases could materially impact our financial condition and results of operations in future periods if we are not able to pass such cost increases through to our customers in the form of higher prices. In addition, our inventory has increased recently as part of our measures to manage supply chain challenges. Due to changing demands of our customers, the types of equipment we rent or sell to our customers may become obsolete, resulting in a negative impact on our results of operations and financial condition due to, with respect to our rental fleet, increased capital expenditures required to replace the obsolete equipment, and our potential inability to sell the obsolete equipment in the used equipment market. In addition, we may incur losses upon dispositions of our rental fleet due to residual value risk or upon any write-off and write-down of our sales inventory.
 If the average age of our fleet of rental equipment were to increase, the cost of maintaining our equipment, if not replaced within a certain period of time, will likely increase. If our operating costs increase as our rental equipment fleet ages and we are unable to pass along such costs, our results of operations will be negatively impacted. As of December 31, 2023, the average age of our rental equipment fleet was less than four years. The costs of maintenance may materially increase in the future. Any significant increase in such costs could have a material adverse effect on our business, financial condition and results of operations.
 In addition, the market value of any given piece of rental equipment could be less than its book value at the time of sale. The market value of used rental equipment depends on several factors, including:
 • the market price for new equipment of a like kind;
 • wear and tear on the equipment relative to its age;
 • worldwide and domestic demand for used equipment;
 • the supply of used equipment on the market; and
 • general economic conditions.
 We include in operating income the difference between the sales price and the book value of equipment sold. Changes in our assumptions regarding depreciation could change our depreciation expense, as well as the gains or losses realized upon disposal of equipment. We cannot assure you that used equipment selling prices will not decline. Any significant decline in the selling prices for used equipment could have a material adverse effect on our business, financial condition and results of operations.

 Our business is highly dependent on the timely and sufficient delivery of finished goods, such as commercial vehicles, from our suppliers.
 We depend on the timely and sufficient delivery of finished goods from our suppliers. Disruptions in the supply chains of these manufacturers and dealers, such as pandemic-related plant and production shutdowns, semiconductor chip shortages, labor and equipment shortages, and transportation delays, have impacted and in the future could significantly impact our ability to meet customer demand and generate revenue, which could have a material adverse effect on our business, financial condition and results of operations.
 Our business may be impacted by government spending.
 A number of our customers are impacted by government funding of infrastructure projects. Policies of governments attempting to address local deficit or structural economic issues, or a decrease in expected levels of infrastructure spending, could have a material impact on our customers and markets. Any decrease or delay in government funding of infrastructure projects could cause our revenues and profits to decrease.
 We may experience losses in excess of our recorded reserves for receivables.
 We evaluate the collectability of our receivables based on consideration of a customer's payment history, leverage, availability of third-party financing, political and other factors. Recorded reserves represent our estimate of current expected credit losses on existing receivables and are determined based on historical customer assessments, current financial conditions, and reasonable and supportable forecasts. An unexpected change in customer financial condition or future economic uncertainty could result in additional requirements for specific reserves, which could have a negative impact on our consolidated financial position.
 Uncertainty relating to macroeconomic conditions may reduce demand for our products and services, resulting in non-performance of contracts by our lessees, limit our ability to obtain additional capital to finance new investments, or have other unforeseen negative effects.
 Uncertainty and negative trends in general economic conditions in the United States and abroad, including widespread health emergencies, rising inflation and interest rates, the continued conflict between Russia and Ukraine, supply chain disruptions, increases in labor costs, significant tightening of credit markets and commodity price volatility, may create difficult operating environments for our lessees and also for our industry. Many factors, including factors that are beyond our control, may impact our operating results or financial condition and/or affect the lessees that form our customer base. A number of governments have implemented, or are considering implementing, a broad variety of governmental actions or new regulations for the financial markets. In addition, limitations on the availability of capital, higher costs of capital or financing expenditures or the desire to preserve liquidity, may cause our current or prospective customers to make reductions in future capital budgets and spending.
 If petroleum prices increase, then our results of operations could be adversely affected.
 Petroleum prices have fluctuated significantly in recent years. Prices and availability of petroleum products are subject to political, economic and market factors that are outside of our control. Political events in petroleum-producing regions as well as hurricanes and other weather-related events may cause the price of fuel to increase. If the price of fuel increases, the demand for our products may decline and transportation and freight costs may increase, which would adversely affect our financial condition and results of operations.
 Regulatory, technological advancement, or other changes in our core end-markets may affect our customers' spending on the products and services we provide.
 Many of our customers operate in regulated industries (for example, electric utility T&D, telecom, rail, and general infrastructure) and are subject to laws and regulations that can change frequently and without notice. The adoption of new laws or regulations, or changes to the enforcement or interpretation of existing laws or regulations, could cause our customers to reduce or delay spending on the products and services we provide. Further, technological advancement or other changes not directly related to the products and services we provide may affect the ability of one or more of our customers to compete effectively, which could result in a reduction or elimination of their use of our products and services. Any reduction, elimination, or delay of spending by our customers on the products and services we provide could adversely affect our revenues, results of operations, and cash flows.
 Integration of acquired businesses may be difficult, costly and time-consuming, and the anticipated benefits and cost savings of acquired businesses may not be realized or may be less than expected.
 Our ability to realize the anticipated benefits of acquisitions we make will depend, to a large extent, on our ability to integrate the businesses acquired. Integrating acquired businesses is a complex, costly and time-consuming process, and we cannot assure you that

 we will be able to successfully integrate them or, if the integration is successfully accomplished, that the integration will not be more costly or take longer than presently contemplated. If we cannot successfully integrate and manage acquired businesses within a reasonable time following their acquisition, we may not be able to realize the potential and anticipated benefits of them, which could have a material adverse effect on our business, financial condition and results of operations.
 Our ability to realize expected synergies and benefits from acquisitions is subject to a number of risks and uncertainties, many of which are outside of our control. These risks and uncertainties could adversely impact our business, financial condition and operating results, and include, among other things:
 • our ability to complete the timely integration of operations and systems, organizations, standards, controls, procedures, policies and technologies, as well as the harmonization of differences in business cultures;
 • our ability to minimize the diversion of management attention from ongoing business concerns during the integration process;
 • our ability to retain the service of key management and other key personnel;
 • our ability to preserve customer, supplier and other important relationships and resolve potential conflicts that may arise;
 • the risk that acquired businesses may have liabilities that we failed to discover or fully appreciate in the course of performing due diligence;
 • difficulties in achieving anticipated cost savings, synergies, business opportunities and growth prospects from the combination; and
 • difficulties in managing the expanded operations of a larger and more complex combined company.
 We may encounter additional integration-related costs, fail to realize all of the benefits anticipated or be subject to other factors that adversely affect preliminary estimates of synergies. In addition, even if the operations of acquired businesses are integrated successfully, the full benefits of them may not be realized, including the synergies, cost savings or sales or growth opportunities that we expect. The occurrence of any of these events, individually or in combination, could have a material adverse effect on our financial condition and results of operations.

 Measures of anticipated synergies we report from time to time are based upon assumptions about our ability to implement integration measures in a timely fashion and within certain cost parameters. Our ability to achieve the planned synergies is dependent upon a significant number of factors, many of which are beyond our control, such as our ability to integrate businesses that we acquire (including the integration of Nesco and Custom Truck LP (each term as defined below)), operating difficulties, increased operating costs, delays in implementing initiatives and general economic, competitive or industry conditions. For example, we may be unable to eliminate duplicative costs in a timely fashion or at all. Additionally, achieving these benefits may require certain related one-time costs, charges and expenses, which may be material. We can provide no assurance that we will be successful in generating growth, maintaining or increasing our cash flows or profitability or achieving cost savings and revenue enhancements, and our inability to do so could have a material adverse effect on our business, results of operations and financial condition.
 Platinum owns the majority of our equity, and its interests may not be aligned with yours.
 Platinum owns the majority of our fully diluted shares of common stock and, therefore, has the power to control our affairs and policies. Platinum also controls, to a large degree, the election of directors, the appointment of management, the entry into mergers, sales of substantially all of our assets, and other extraordinary transactions. The directors so elected have authority, subject to the terms of our indebtedness, to issue additional stock, implement stock repurchase programs, declare dividends and make other decisions. The interests of Platinum could conflict with your interests. For example, Platinum is in the business of making investments in companies and, from time to time in the future, may acquire interests in businesses that directly or indirectly compete with certain portions of our business or are suppliers or customers of ours. Platinum may also pursue acquisition opportunities that may be complementary to our business and, as a result, these acquisition opportunities may not be available to us.

 Risks Related to the Company's Indebtedness
 We have, and may incur, significant indebtedness and may be unable to service our debt. This indebtedness could adversely affect our financial position, limit our available cash and our access to additional capital and prevent us from growing our business.
 We have a significant amount of indebtedness and may incur additional indebtedness in the future, including in connection with our growth capital expenditure plan. As of December 31, 2023, our total indebtedness was $1,517.8 million, consisting of $920.0 million in aggregate principal amount of the 2029 Secured Notes, $552.4 million of borrowings under our Asset Based Lending ("ABL") Facility and other debt obligations of $45.4 million (excluding approximately $662.3 million of indebtedness under our floorplan financing agreements). Although the indenture governing our 2029 Secured Notes (the "Indenture") and the ABL Credit Agreement (as defined below) contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of significant exceptions and qualifications, and the additional indebtedness incurred in compliance with these restrictions could be substantial. Moreover, the Indenture does not impose any limitation on our incurrence of certain liabilities or obligations that are not considered "Indebtedness" under the Indenture (such as operating leases), nor does it impose any limitation on the amount of liabilities incurred by our subsidiaries, if any, that might be designated as "unrestricted subsidiaries" under such Indenture. Similarly, the ABL Credit Agreement does not impose any limitation on our incurrence of certain liabilities or obligations that are not considered "Indebtedness" under the agreement (such as operating leases).
 The level of our indebtedness could have important consequences, including:
 • a portion of our cash flows from operations is dedicated to debt service and may not be available for other purposes;
 • limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
 • limiting our ability to obtain financing in the future for working capital, capital expenditures and general corporate purposes, including acquisitions, and potentially impeding our ability to secure favorable lease terms;
 • exposing us to the risk of increased interest rates, as borrowings under our ABL Facility are subject to variable rates of interest;
 • making us more vulnerable to economic downturns and industry conditions and possibly limiting our ability to withstand competitive pressures;
 • placing us at a competitive disadvantage compared to our competitors with less indebtedness;
 • making it more difficult for us to satisfy our obligations with respect to our debt; and
 • increasing our cost of borrowing.
 If new debt is added to our current debt levels, the risks that we now face would intensify.
 To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors, some of which are beyond our control. An inability to service our indebtedness could lead to a default under the Indenture or ABL Credit Agreement, which may result in an acceleration of our indebtedness.
 To service our indebtedness, we will require a significant amount of cash. Our ability to pay interest and principal in the future on our indebtedness and to fund our capital expenditures and acquisitions will depend upon our future operating performance and the availability of refinancing options, which will be affected by prevailing economic conditions and, the availability of capital, as well as financial, business and other factors, some of which are beyond our control.
 Our future cash flows may not be sufficient to meet our obligations and commitments. If we are unable to generate sufficient cash flows from operations in the future to service our indebtedness and to meet our other commitments, we will be required to adopt one or more alternatives, such as refinancing or restructuring our indebtedness, selling material assets or operations or seeking to raise additional debt or equity capital. These actions may not be effected on a timely basis or on satisfactory terms or at all, and these actions may not enable us to continue to satisfy our capital requirements. In addition, our existing debt agreements, including the Indenture and the ABL Credit Agreement, contain, or future debt agreements may contain, restrictive covenants prohibiting us from adopting any of these alternatives. Our failure to comply with these covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our indebtedness.

 The Indenture and the ABL Credit Agreement impose significant operating and financial restrictions on our company and our subsidiaries, which may prevent us from capitalizing on business opportunities.
 The Indenture and the ABL Credit Agreement impose significant operating and financial restrictions on us. These restrictions will limit our ability, among other things, to:
 • incur additional indebtedness;
 • pay dividends or certain other distributions on our capital stock or repurchase our capital stock;
 • make certain investments or other restricted payments;
 • cause subsidiaries to pay dividends or make other payments to us;
 • engage in transactions with stockholders or affiliates;
 • sell certain assets or merge with or into other companies, reorganize our companies, or suspend or dispose of a substantial portion of our business;
 • prepay or modify the terms of our other indebtedness;
 • guarantee indebtedness; and
 • create liens.
 There are limitations on our ability to incur the full $750.0 million of commitments under the ABL Facility. Availability will be limited to the lesser of a borrowing base and $750.0 million. The borrowing base is calculated on a monthly (or more frequent under certain circumstances) valuation of our parts inventory, fleet inventory accounts receivable and unrestricted cash (in each case, subject to customary reserves). As a result, our access to credit under the ABL Facility is potentially subject to significant fluctuations, depending on the value of the borrowing base-eligible assets as of any measurement date. With respect to the ABL Facility, on any date when Specified Excess Availability (as defined in the ABL Credit Agreement) is less than the greater of (i) 10% of the lesser of (A) the aggregate revolving commitments under the ABL Facility at such time and (B) the borrowing base at such time (such lesser amount, the "Line Cap") and (ii) $60 million, we will also be required by a springing covenant to maintain a minimum fixed charge coverage ratio of 1.00 to 1.00, tested for the four fiscal quarter period ending on the last day of the most recently ended fiscal quarter for which financials have been delivered, and at the end of each succeeding fiscal quarter thereafter until the date on which Specified Excess Availability has been equal to or greater than the greater of (x) 10% of the Line Cap and (y) $60 million for 30 consecutive calendar days. Our ability to meet the financial covenant could be affected by events beyond our control. The inability to borrow under the ABL Facility may adversely affect our liquidity, financial condition and results of operations.
 These restrictions could limit our ability to obtain future financing, make strategic acquisitions or needed capital expenditures, withstand economic downturns in our business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise. A failure to comply with the restrictions in the Indenture and the ABL Credit Agreement could result in an event of default under such instruments or credit agreement. Our future operating results may not be sufficient to enable compliance with the covenants in the Indenture or ABL Credit Agreement or to remedy any such default. In addition, in the event of an acceleration, we may not have or be able to obtain sufficient funds to refinance our indebtedness or make any accelerated payments, including those under the Indenture and under our ABL Facility. If we default on our indebtedness, our business, financial condition or results of operations could be materially and adversely affected. If we fail to maintain compliance with these covenants in the future, we cannot assure you that we will be able to obtain waivers from the lenders and/or amend the covenants.
 Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
 Borrowings under our ABL Facility and floor plan financing arrangements are at variable rates of interest, which will expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even if the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. As of December 31, 2023, we have variable rate debt, consisting of $1,214.7 million outstanding under the ABL Facility and floor plan financing arrangements. Holding other variables constant, each one-eighth percentage point increase or decrease in the applicable interest rates would correspondingly change our interest expense on the ABL Facility and floor plan financing arrangements by approximately $1.5 million per year. In the future, we may enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility. However, we may not maintain interest rate swaps with respect to any of our variable rate indebtedness, and any swaps we enter into may not fully mitigate our interest rate risk.

 Risks Related to Information Technology, Cybersecurity and Data Privacy
 Disruptions or security compromises affecting our information technology systems or those of our critical service providers could adversely affect our operating results by subjecting us to liability, and limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, or implement strategic initiatives.
 The security and integrity, or the perception thereof, of our information technology systems and assets ("IT systems") are critical to our business and ability to monitor and control our operations, deliver our products and services, and adjust to changing market conditions. While we own and manage certain of our IT systems, we also engage third parties across an array of software, systems and technologies (including cloud-based) and functions (e.g., HR, finance, communications, compliance), which enable us to conduct, monitor and/or protect our business, operations, systems and data assets. In addition, in the ordinary course of business, we and/or our service providers generate, collect, process and store sensitive information and data, including intellectual property, our proprietary business data and that of our customers, suppliers and business partners, as well as personal information (collectively, "Confidential Information").
 We face evolving cybersecurity risks that threaten the confidentiality, integrity, and availability of our IT systems and Confidential Information, and we and our service providers have experienced and expect to continue to experience cyberattacks and security incidents. Despite various security controls and measures, we and third parties remain vulnerable to cyberattacks and security incidents resulting from malware (e.g., ransomware), computer viruses, software and hardware vulnerabilities, malfeasance by external or internal actors (including state-sponsored organizations, opportunistic hackers and hacktivists, and insider data misappropriation), and/or incidents attributable to human error (e.g., due to social engineering or phishing), as well as malicious code embedded in open-source software, or misconfigurations, "bugs" or other vulnerabilities in commercial software that is integrated into our (or our third parties') IT systems, products or services. The White House, SEC and other regulators have accordingly increased their focus on companies' cybersecurity vulnerabilities and risks. We have also observed a global increase, in both frequency and impact, in cybersecurity threats and more sophisticated cyber-attacks and threat actors. Such attacks and threats are unpredictable as to their timing, nature and scope. As a result, we may be unable to anticipate or prevent future attacks, particularly as the methodologies utilized by attackers change frequently or are not recognized until launched, and we may be unable to identify, investigate or remediate incidents due to the increased use by threat actors of tools and techniques—including artificial intelligence— that are designed to circumvent controls, to avoid detection, and to remove or obfuscate forensic evidence. There can also be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our IT systems and Confidential Information. Cybersecurity risks due to work-from-home arrangements at the Company and third parties have increased due to the challenges associated with managing remote computing assets and the security vulnerabilities in many non-corporate and home networks.
 Any successful or perceived cyberattack, compromise, breach, or disruption involving, or in relation to, our or our service providers' IT systems or Confidential Information, or the failure of any IT systems to operate as expected could, depending on the magnitude of the problem, adversely affect our operating results by limiting our capacity to effectively monitor and control our operations, adjust to changing market conditions and maintain the effectiveness of our internal control over financial reporting. Further, any compromise or breach of IT systems or Confidential Information could result in adverse publicity, harm our reputation, lead to claims against us and affect our relationships with our customers and employees, and require significant resources for remediation and compliance purposes, any of which could have a material adverse effect on our business. Certain of our software applications are also utilized by third parties who provide outsourced administrative functions, which may increase the risk of a cybersecurity incident. In addition, because our systems may contain sensitive data and information about individuals and businesses, our failure to maintain the security, integrity or confidentiality of the data we hold, whether the result of our insider malfeasance or errors or the malfeasance or errors of others, could harm our reputation or give rise to legal liabilities leading to lower revenues, increased costs for compliance and systems remediation, increased costs of liability for litigation (including class actions) and regulatory proceedings as well as fines and penalties, result in the misuse of our systems and networks, manipulation and destruction of data, misappropriation of assets or production stoppages and supply shortages, and other potential material adverse effects on our results of operations. Our failure to appropriately maintain the security of the data we hold could also violate applicable privacy, data security and other laws and subject us to lawsuits, fines, and other means of regulatory enforcement.
 Global consumer protection, data privacy and cybersecurity rules, regulations and industry standards are rapidly evolving, including laws like the California Consumer Privacy Act, as amended by the California Privacy Rights Act (collectively, the "CCPA"), which provide for a private right of action for certain types of data breaches and create compliance obligations around user choice, data subject rights and transparency, among others. The requirements of such laws and regulations, as well as their application and interpretation, are constantly evolving and developing. Complying with such new or changing legal and regulatory requirements could force us to incur substantial expenses or require us to change our business practices in a manner that could harm our business. If any actual or perceived security or disruptive attacks, breaches or incidents are not detected or deflected by our current security measures,

 we could also be required to expend additional capital and other resources, including costs to deploy additional personnel and protection technologies, train employees and engage third-party experts and consultants.
 Although we maintain insurance coverage for various cybersecurity risks and liabilities, there can be no guarantee that any or all costs or losses incurred will be partially or fully insured.
 Risks Related to Legal, Compliance and Regulatory Matters
 We are subject to complex laws and regulations, including environmental and safety regulations that can adversely affect the cost, manner or feasibility of doing business.
 Our operations are subject to certain federal, state and local laws and regulations relating to, among other things, climate change, the generation, storage, handling, emission, transportation, disposal and discharge of hazardous and non-hazardous substances and materials into the environment, the manufacturing of motor vehicles and other equipment and employee health and safety. We may require permits or other approvals under certain laws, which may delay our ability to execute portions of our business strategy. Additionally, compliance with such laws and regulations can be costly, and our costs of compliance may increase if existing laws and regulations are revised or reinterpreted, or if new laws and regulations become applicable to our operations. We currently make, and in future may be required to make additional capital expenditures to comply with environmental and other regulations, such as:
 • Applicable motor vehicle safety standards established by the National Highway Traffic Safety Administration;
 • Emissions or other standards related to climate change as established by international, federal, state and local regulatory bodies;
 • Reclamation and remediation and other environmental protection; and
 • Standards for workplace safety established by the Occupational Safety and Health Administration.
 While we monitor our compliance with applicable laws and regulations and attempt to budget for anticipated costs associated with compliance, we cannot predict the future cost of such compliance. Failure to comply with such laws and regulations, including any evolving interpretation and enforcement by governmental authorities, could materially impact our business, financial condition, results of operations and cash flows. We may also be liable, under certain laws and regulations, for product liability, personal injury, other environmental damages (including natural resources), and other claims, as well as the costs of investigation and remediation of environmental contamination and any sanctions, such as fines and penalties. Additionally, certain environmental laws may impose liability without regard to fault or the legality of the original conduct. While compliance with these laws has not historically had a material adverse effect on our operations, our operations could be significantly delayed or curtailed and our costs of operations could significantly increase as a result of regulatory requirements, restrictions or claims. We are unable to predict the ultimate cost of compliance with these requirements or their effect on our operations.
 We have identified a material weakness in our internal control over financial reporting which, if not remediated, could result in material misstatements in our financial statements.
 During the fourth quarter ended December 31, 2021, we identified a material weakness in internal control over financial reporting that related to control deficiencies in information technology general controls ("ITGCs") for both user access and program change-management for systems supporting all of the Company's internal control processes and controls, controls over the completeness and accuracy of information used in business process controls and management review controls. Our business process controls (automated and manual) and management review controls were also deemed ineffective because they are adversely impacted by ineffective ITGCs. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual consolidated financial statements will not be prevented or detected on a timely basis.
 We have developed and are implementing a plan to remediate the material weakness and in fiscal year 2023, management concluded that the material weakness related to ITGCs was remediated. The material weakness related to business process level controls will not be remediated until all necessary internal controls have been implemented, tested and determined to be operating effectively. In addition, we may need to take additional measures to address the material weakness or modify the planned remediation steps, and we cannot be certain that the measures we have taken, and expect to take, to improve our internal controls will be sufficient to address the issues identified, to ensure that our internal controls are effective or to ensure that the identified material weakness will not result in a material misstatement of our annual consolidated financial statements. Moreover, we cannot assure you that we will not identify additional material weaknesses in our internal control over financial reporting in the future. If we are unable to remediate the material weakness, our ability to record, process and report financial information accurately, and to prepare financial statements with the time periods specified by the rules and forms of the Securities and Exchange Commission, could be adversely affected. This failure could

 negatively affect the market price and trading liquidity of our common stock, cause investors to lose confidence in our reported financial information, subject us to civil and criminal investigations and penalties and generally materially and adversely impact our business and financial condition.
 We are subject to a series of risks related to climate change.
 There are inherent climate-related risks wherever business is conducted. Various meteorological phenomena and extreme weather events (including, but not limited to, storms, flooding, drought, wildfire, and extreme temperatures) may disrupt our operations or those of our customers and suppliers, require us to incur additional operating or capital expenditures, reduce the demand for certain of our product offerings, or otherwise adversely impact our business, financial condition, or results of operations. Climate change may impact the frequency and/or intensity of such events. While we may take various actions to mitigate our business risks associated with climate change, this may require us to incur substantial costs and may not be successful, due to, among other things, the uncertainty associated with the longer-term projections associated with managing climate risks.
 Additionally, regulatory, market, and other changes to respond to climate change may adversely impact our business, financial condition, or results of operations. Developing alternatives that satisfy the market's evolving expectations of vehicle emissions profiles may require us to incur significant costs. Additionally, there are several competing alternatives to replace petroleum-based fuels for vehicles, including but not limited to: electricity, hydrogen, and compressed and/or renewable gas. To the extent potential customers prefer technologies different from those used in the vehicles we develop and manufacture, then demand for such vehicles may not develop as quickly as we expect, or at all.
 Reporting expectations are also increasing, with a variety of customers, capital providers, and regulators seeking increased information on climate related risks. For example, the SEC has proposed a rule that, if finalized, may require us to incur significant costs to assess and disclose on a range of climate-related data and risks. Increased scrutiny from various parties may also result in increased compliance costs and increased legal risks may also impact our suppliers or customers, which may indirectly impact our business, financial condition, or results of operations.
 Increased attention to, and evolving expectations for, sustainability and environmental, social, and governance ("ESG") initiatives could increase our costs, harm our reputation, or otherwise adversely impact our business.
 Companies across industries are facing increasing scrutiny from a variety of stakeholders related to their ESG and sustainability practices. Expectations regarding voluntary ESG initiatives and disclosures and consumer demand for alternative forms of energy may result in increased costs (including, but not limited to increased costs related to compliance, stakeholder engagement, contracting and insurance), changes in demand for certain products, enhanced compliance or disclosure obligations, or other impacts to our business, financial condition, or results of operations.
 In the past year, we have published our inaugural ESG report, and we may in the future engage in additional voluntary ESG initiatives (such as voluntary disclosures, certifications, or goals, among others) or commitments to improve the ESG profile of our company and/or our products; such initiatives or achievements of such commitments may be costly and may not have the desired effect. For example, expectations around company's management of ESG matters continues to evolve rapidly, in many instances due to factors that are out of our control. In addition, we have and may continue to commit to certain initiatives or goals and we may not ultimately be able to achieve such commitments or goals due to factors that are within or outside of our control. Moreover, actions or statements that we have taken and may take in the future based on expectations, assumptions, methodologies, or third-party information that we currently believe to be reasonable may subsequently be determined to be erroneous, insufficient, unaligned with stakeholder expectations, or be subject to misinterpretation. Certain such expectations, assumptions and methodologies are necessarily uncertain due to the long timelines involved and the varying approaches to identifying, assessing, addressing, and reporting on ESG matters. Our disclosures on these matters, a failure to satisfy evolving stakeholder expectations for ESG practices and reporting, or a failure to meet our commitments or targets on our established timeline may potentially harm our reputation and negatively impact relationships with certain investors and other stakeholders. Even if this is not the case, our current actions may subsequently be determined to be insufficient by various stakeholders, and we may be subject to investor or regulator engagement on our ESG initiatives and disclosures, even if such initiatives are currently voluntary.
 In addition, various policymakers have adopted, or are considering adopting, requirements for extensive disclosures on climate-related and/or other ESG information, which may require us to incur significant additional costs to comply, including the implementation of significant new internal controls on matters historically not subject to such controls, and impose increased oversight obligations on our management and board. Simultaneously, there are efforts by some stakeholders to reduce companies' efforts on certain ESG-related matters. Both advocates and opponents to certain ESG matters are increasingly resorting to a range of activism forms, including media campaigns and litigation, to advance their perspectives. To the extent we are subject to such activism, it may require us to incur costs or otherwise adversely impact our business. This and other stakeholder expectations will likely lead to increased costs as well as

 scrutiny that could heighten all of the risks identified in this risk factor. Additionally, many of our business partners and suppliers may be subject to similar expectations, which may augment or create additional risks, including risks that may not be known to us.
 Certain market participants, including major institutional investors and capital providers, use third-party benchmarks and scores to assess companies' ESG profiles in making investment or voting decisions. Unfavorable ESG ratings could lead to increased negative investor sentiment towards us and/or our industry, which could negatively impact our share price as well as our access to and cost of capital. To the extent ESG matters negatively impact our reputation, it may also impede our ability to compete as effectively to attract and retain employees or customers, which may adversely impact our operations.

 Item 1B. Unresolved Staff Comments
 None.

 Item 1C. Cybersecurity
 Cybersecurity Risk Management and Strategy
 Our approach to mitigating information technology and cybersecurity risk comprises a range of activities with the primary objective of maintaining the confidentiality, integrity and availability of our critical IT Systems and information related to our business. We seek to design and execute our cybersecurity risk management program based on a globally recognized controls framework. Additionally, we assess our cybersecurity maturity against that framework. However, the foregoing does not imply that we meet any particular technical standards, specifications or requirements, only that we use an established framework as a guide to help us identify, assess and manage cybersecurity risks relevant to our business.
 Our cybersecurity risk management processes include a cybersecurity incident response plan, and we have invested in technical and organizational safeguards intended to manage and mitigate material risks from cybersecurity threats to our IT Systems, including network security controls, employee training, internal vetting of critical third-party vendors and service providers who have access to our systems or with whom we may share data, as well as periodic system reviews and security incident response exercises. Our cybersecurity risk management program is a component of the overall enterprise risk management activities that we undertake, and shares common methodologies, reporting channels and governance processes that apply to other risk areas.
 While we work with third-party cybersecurity firms, where appropriate, to assess aspects of our security architecture and processes, our information security team, consisting of experienced cybersecurity professionals, is responsible for the day-to-day management of our cybersecurity risks, including directing our cybersecurity risk assessment processes, our security controls, and our response to cybersecurity incidents.
 We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition. However, IT Systems are inherently vulnerable to disruption and compromise due to a broad range of risks from cybersecurity threats, and we face certain ongoing cybersecurity risks that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. See "Risk Factors—Disruptions or security compromises affecting our information technology systems or those of our critical service providers could adversely affect our operating results by subjecting us to liability, and limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, or implement strategic initiatives."
 Cybersecurity Governance
 Our Board considers cybersecurity risk as critical to the enterprise and delegates the cybersecurity risk oversight function to the Audit Committee. The Audit Committee oversees management's design, implementation and enforcement of our cybersecurity risk management program.
 The Audit Committee receives regular reports from management on our cybersecurity risks and reports regarding IT internal controls in connection with its oversight of internal control over financial reporting. In addition, management updates the Audit Committee, as necessary, regarding any significant or potentially significant cybersecurity incidents. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from management on our cyber risk management program, and the impact, if any, of cyber incidents on internal control over financial reporting. Audit Committee members also receive presentations on cybersecurity topics from our Chief Information Officer and Chief Financial Officer, supported by our internal security staff, or external experts as part of the Board's continuing education on topics that impact public companies.

 Our management team, including our Chief Financial Officer and Chief Information Officer, is responsible for assessing and managing our material risks from cybersecurity threats. The management team has overall responsibility for leading our overall cybersecurity risk management program, including our internal cybersecurity personnel and our external cybersecurity service providers. Our Chief Information Officer has more than 20 years of experience managing and leading IT and cybersecurity teams.
 Our management team stays informed about and monitors efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the IT environment.

 Item 2. Properties
 Our headquarters are in Kansas City, Missouri where we house executive management, accounting, finance, information technology, human resources, marketing and procurement professionals. Kansas City, Missouri is also home to our mega-center which performs the majority of our production and manufacturing. We maintain a diverse geographic footprint in the U.S. and Canada, with more than 35 equipment rental and service locations. These facilities are typically service centers for the maintenance and support of our equipment and, depending on the location, may include separate areas for displaying and storage of equipment and parts. Our one-stop shop approach focuses on providing the products and services offered by each of our segments at each of our locations.

 Location
 Type

 7701 Independence Avenue, Kansas City, MO United States

 Owned

 7413 Sr 930 E Fort Wayne/New Haven, IN United States

 11102 261 St,, Acheson, AB Canada

 9230 51 St SE Calgary, AB Canada

 127 Earl Thompson PL, Ayr, ON Canada

 29 Perini RD, Elliot Lake, ON Canada

 4045 Hwy 5 and 2665 South Rockwood Cabot, AR United States

 655 E 20Th St Yuma, AZ United States

 4500 State Rd and 1032 Black Gold Rd Bakersfield, CA United States

 14670 Randall Ave Fontana, CA United States

 5455 E 52nd Ave Commerce City, CO United States

 4729 Capital Cir Nw and 4755DI Capital Cir Nw Tallahassee, FL United States

 9879 Us Hwy 301 N; 7906 Baseline Ct and 8949 Maislin Rd Tampa, FL United States

 3112 E State Rd 124 Bluffton, IN United States

 5323 Kansas Ave Kansas City, KS United States

 10740 Nall Ave Overland Park, KS United States

 9230 Cedar Knoll Dr Grass Lake, MI United States

 2370 English St Maplewood; 2450 Maplewood Ave; 2384 English St Maplewood, MN United States

 2109 Manchester Trafficway and 6501 E. Commerce Ave, Suite 200 Kansas City, MO United States

 2770 5th Ave S Fargo, ND United States

 6 Sutton Cir and Unit 2 Sutton Cir Condominium Hooksett, NH United States

 1400 Union Lndg Rd and 1850 Union Lndg Rd Cinnaminson, NJ United States

 6708 Townline Rd Syracuse, NY United States

 3522 Middlebranch Rd NE Canton, OH United States

 3205 Davinion Rd El Reno, OK United States

 300 Johnson St and 370 Johnson St Wilkes Barre, PA United States

 1400 E Hwy 67 Alvarado, TX United States

 2801 N Earl Rudder FWY, Bryan TX United States

 7200 Jack Newell Blvd S and 7525 Pebble Dr Bldg 24 Fort Worth, TX United States

 18725 Mckay Blvd Humble, TX United States

 12519 W I-20 Odessa, TX United States

 9775 E Lynchburg Salem Tpke Forest, VA United States

 26109 & 26119 United Rd NE and 26129 Calvary Kingston, WA United States

 5734 Minder Rd Ste A-1 Poulsbo, WA United States

 11139 W Becher St West Allis, WI United States

 5065 140th Ave NW, Williston, ND United States

 2900 Rissler Rd Sedalia, MO United States
 Owned

 4334 Snapfinger Woods Dr Atlanta, GA United States
 Owned

 21209 & 21115 Durand Ave; 4601 Haag Dr, Union Grove, WI United States

 1700 Leider Dr Union Grove, WI United States
 Owned

 12660 E Lycshburg Salem Turnpike Lynchburgh, VA United States
 Owned

 702 East Rose St Elk Point, SD United States
 Owned

 We believe that all of our properties are in good operating condition and are suitable to adequately meet our current needs.

 Item 3. Legal Proceedings
 We may, at any given time, be named as a defendant in certain lawsuits, investigations and claims arising in the ordinary course of business. While the outcome of these potential lawsuits, investigations and claims cannot be predicted with certainty, we do not expect these matters to have a material adverse impact on our business, results of operations, cash flows or financial condition. In the opinion of management, there are no pending litigations, disputes or claims against the Company that, if decided adversely, would have a material adverse effect on its consolidated financial condition, cash flows or results of operations.

 Item 4. Mine Safety Disclosures
 Not applicable.

 Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
 Market Information
 Custom Truck One Source, Inc.'s common stock and warrants trade on the New York Stock Exchange under the symbol "CTOS" and "CTOS.WS," respectively. As of March 1, 2024, there were approximately 67 holders of record of our common stock and 14 holders of record of warrants.
 Recent Sales of Unregistered Securities; Use of Proceeds From Registered Securities
 There were no sales of unregistered securities by the Company during the year ended December 31, 2023.
 Equity Compensation Plans
 For information regarding equity compensation plans, see Item 11, Executive Compensation, of this Annual Report on Form 10-K and Note 14: Share-Based Compensation, to the consolidated financial statements included in this Annual Report on Form 10-K.
 Dividend Policy
 We have never declared or paid, and do not anticipate declaring or paying, any cash dividends on our shares of common stock in the foreseeable future. It is presently intended that we will retain our earnings for use in business operations and, accordingly, it is not anticipated that our board of directors will declare dividends in the foreseeable future.
 Issuer Purchases of Equity Securities
 On August 2, 2022, our Board of Directors authorized a stock repurchase program for up to $30.0 million of the Company's common stock. The Company exhausted this program during 2023 and on September 14, 2023, the Board of Directors approved a stock repurchase program that authorizes additional repurchases of up to $25 million of shares of the Company's common stock. The authorization does not have an expiration date. Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases depending on market conditions and corporate needs.
 We purchased and held in treasury 53,053 shares for tax withholding purposes related to our equity compensation plans during the fourth quarter of 2023. The shares purchased under our equity compensation plans were withheld to satisfy tax withholding obligations upon the vesting of restricted stock unit awards or exercise of stock options.
 The following table contains information regarding our purchases of our common stock during the three months ended December 31, 2023:

 Period
 Total Number of Shares Purchased
 Average Price Paid per Share
 Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
 Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs

 October 1, 2023 to October 31, 2023

 963,210
 $
 5.64
 963,210
 $
 47,813

 November 1, 2023 to November 30, 2023

 1,172,997
 $
 5.22
 1,172,997
 $
 41,692

 December 1, 2023 to December 31, 2023

 1,124,938
 $
 6.83
 1,071,885
 $
 34,339

 Total
 3,261,145
 $
 5.90
 3,208,092

 Item 6. [Reserved]

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 Custom Truck One Source, Inc., a Delaware corporation, and its wholly owned subsidiaries ("we," "our," "us," or "the Company") are engaged in the business of providing a range of products and services to customers through rentals and sales of specialty equipment,

 rentals and sales of aftermarket parts and services related to the specialty equipment, and repair, maintenance and customization services related to that equipment.
 We are a specialty equipment provider to the electric utility transmission and distribution, telecommunications, rail and other infrastructure-related industries in North America. Our core business relates to our new equipment inventory and rental fleet of specialty equipment that is utilized by service providers in infrastructure development and improvement work. We offer our specialized equipment to a diverse customer base, including utilities and contractors, for the maintenance, repair, upgrade, and installation of critical infrastructure assets, including distribution and transmission electric lines, telecommunications networks and rail systems, as well as for lighting and signage. We rent, produce, sell and service a broad range of new and used equipment, including bucket trucks, digger derricks, dump trucks, cranes, service trucks, and heavy-haul trailers. We manage the business in three reporting segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES") and Aftermarket Parts and Services ("APS").

 Acquisition of Custom Truck LP
 On December 3, 2020, Nesco Holdings Inc. ("Nesco" or "Nesco Holdings") and Nesco Holdings II, Inc., a subsidiary of Nesco Holdings (the "Buyer" or "Issuer"), entered into a purchase and sale agreement with certain affiliates of The Blackstone Group and other direct and indirect equity holders of Custom Truck One Source, L.P. ("Custom Truck LP"), Blackstone Capital Partners VI-NQ L.P., and PE One Source Holdings, LLC, an affiliate of Platinum Equity, LLC, pursuant to which Buyer agreed to acquire 100% of the partnership interests of Custom Truck LP.
 On April 1, 2021 (the "Closing Date"), Nesco Holdings II, Inc. completed the acquisition of Custom Truck LP (the "Acquisition"), for a purchase price of $1.5 billion. Additionally, on April 1, 2021, Nesco Holdings changed its name to "Custom Truck One Source, Inc." For further details on the activities and transactions involved in the Acquisition, refer to Note 3: Business Combinations to the consolidated financial statements included in this Annual Report on Form 10-K.

 Financial and Performance Measures
 Financial Measures
 Revenue — As a full-service equipment provider, we generate revenue through renting, selling, assembling, upfitting, and servicing new and used heavy-duty trucks and cranes, as well as the sale of related parts. We also sell and rent specialized tools on an individual basis and in kits. Rental revenue is primarily comprised of revenues from rental agreements and freight charges billed to customers. The Company records changes in estimated collectability directly against rental revenue. Equipment sales revenue reflects the value of vocational trucks and other equipment sold to customers. Parts and service revenue is derived from maintenance and repair services, light upfit services, and parts, tools and accessories sold directly to customers. Rental revenue excludes active rental contracts which qualify to be accounted for as sales-type leases.
 Cost of rental revenue — Cost of rental revenue reflects repairs and maintenance costs of rental equipment, parts costs, labor and other overheads related to maintaining the rental fleet, and freight associated with the shipping of rental equipment.
 Depreciation of rental equipment — Depreciation of rental equipment is comprised of depreciation expense on the rental fleet. We allocate the cost of rental equipment generally over the rentable life of the equipment. The depreciation allocation is based upon estimated lives ranging from five to seven years. The cost of equipment is depreciated to an estimated residual value using the straight-line method.
 Cost of equipment sales — Cost of equipment sales reflects production and inventory costs associated with new units sold, parts costs, labor and other overheads related to production, and freight associated with the shipping and receiving of equipment and parts. Cost of equipment sales also includes the net book value of rental units sold, including active rental contracts which qualify to be accounted for as sales-type leases.
 Selling, general and administrative expenses — Selling, general and administrative expenses include sales compensation, fleet licensing fees and corporate expenses, including salaries, stock-based compensation expense, insurance, advertising costs, professional services, fees earned on customer arranged financing, gains or losses resulting from insurance settlements, and information technology costs.
 Amortization and non-rental depreciation — Amortization expense relates to intangible assets such as customer lists, trade names, etc. Non-rental depreciation expense reflects the depreciation of property and equipment that is not part of the rental fleet.
 Transaction expenses and other — Transaction expenses and other include expenses directly related to the acquisition of businesses. These expenses generally are comprised of travel and out-of-pocket expenses and legal, accounting and valuation or appraisal fees

 incurred in connection with pre- and post-closure activities. We also include costs and expenses associated with post-acquisition integration activities related to the acquired businesses.
 Financing and other (income) expense — Financing and other expense (income) reflects the financing expense (income) associated with lease agreements qualifying to be accounted for as a sales-type lease, foreign currency gains and losses related to our Canadian operations, as well as other miscellaneous gains or losses from non-operating activities. Also included in financing and other expense (income) are the unrealized remeasurement gains and losses related to our interest rate collar and redeemable warrants.
 Interest expense — Interest expense consists of contractual interest expense on outstanding debt obligations, floorplan financing facilities, amortization of deferred financing costs and other related financing expenses.
 Income Tax Expense — We have net operating loss carryforward and disallowed interest deduction carryforward assets, which are generally available to be used to offset taxable income generated in future years. Due to limitations on the use of these carryforwards under U.S. federal and state income tax regulations, we record valuation allowances to reduce the carryforward assets to amounts that we estimate will be realized. Accordingly, income tax expense or benefit generally is comprised of changes to these valuation allowance estimates and does not reflect taxes on current period income (or tax benefit on current period losses). For these reasons, our effective tax rate differs from the federal statutory tax rate.
 Operating Metrics

 We consider the following key operational metrics, which are consistent with those defined by the American Rental Association, when evaluating our performance and making day-to-day operating decisions:
 Ending OEC — Ending original equipment cost ("OEC") is the original equipment cost of units at the end of the measurement period. OEC represents the original equipment cost, and excludes the effect of adjustments to rental equipment fleet acquired in business combinations. OEC is the basis for calculating certain of the measures set forth below. Additionally, the pricing of our rental contracts and equipment sales prices for our equipment is based upon OEC, and we measure a rate of return from our rentals and sales using OEC. OEC is a widely used industry metric to compare fleet dollar value independent of depreciation.
 Average OEC on rent — Average OEC on rent is calculated as the weighted-average OEC on rent during the stated period.
 Fleet utilization — Fleet utilization is defined as the total number of days the rental equipment was rented during a specified period of time divided by the total number of days available during the same period and weighted based on OEC. Utilization is a measure of fleet efficiency expressed as a percentage of time the fleet is on rent and is considered to be an important indicator of the revenue generating capacity of the fleet.
 OEC on rent yield — OEC on rent yield ("ORY") is a measure of return realized by our rental fleet during a period. ORY is calculated as rental revenue (excluding freight recovery and ancillary fees) during the stated period divided by the average OEC on rent for the same period. For periods less than 12 months, ORY is adjusted to an annualized basis.
 Sales order backlog — Sales order backlog consists of purchase orders received for customized and stock equipment. Sales order backlog should not be considered an accurate measure of future net sales.

 Operating Segments
 We operate in three reportable operating segments: Equipment Rental Solutions, Truck and Equipment Sales and Aftermarket Parts and Services.
 Equipment Rental Solutions ("ERS") Segment — We own a broad range of new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks and other machinery and equipment. As of December 31, 2023, this equipment (the "rental fleet") is comprised of more than 10,300 units. The majority of our rental fleet can be used across a variety of end-markets, which coincides with the needs of many of our customers who operate in multiple end-markets. As is customary for equipment rental companies, we sell used equipment out of our rental fleet to end user customers. These sales are often made in response to specific customer requests. These sales offer customers an opportunity to buy well-maintained equipment with long remaining useful lives and enable us to effectively manage the age and mix of our rental fleet to match current market demand. We also employ rental purchase options ("RPOs") on a select basis, which provide a buyout option with an established purchase price that decreases over time as rental revenue is collected. Customers are given credit against such purchase price for a portion of the amounts paid over the life of the rental, allowing customers the flexibility of a rental with the option to purchase at any time at a known price. Activities in our ERS segment consist of the rental and sale from the rental fleet of the foregoing products.

 Truck and Equipment Sales ("TES") Segment — We offer a broad variety of new equipment for sale to be used across our end-markets, which can be modified to meet our customers' specific needs. We believe that our integrated production capabilities and extensive knowledge gained over a long history of selling equipment have established us as a trusted partner for customers seeking tailored solutions with short lead times. In support of these activities, we primarily employ a direct-to-customer sales model, leveraging our dedicated sales force of industry and product managers, who are focused on driving national and local sales. We also opportunistically engage in the sale of used equipment purchased from third parties or received via trade-ins from new equipment sales customers. In the majority of these cases, we will sell used equipment directly to customers, rather than relying on auctions. Activities in our TES segment consist of the production and sale of new and used specialty equipment and vocational trucks, which includes equipment from leading original equipment manufacturers ("OEMs") across our end-markets, as well as our Load KingTM brand.
 Aftermarket Parts and Services ("APS") Segment — The APS segment includes the sale of specialized aftermarket parts, including captive parts related to our Load KingTM brand, used in the maintenance and repair of the equipment we sell and rent. Specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, are sold or rented to our customers on an individual basis or in packaged specialty kits. We also provide truck and equipment maintenance and repair services, which are executed throughout our nationwide branch network and fleet of mobile technicians supported by our 24/7 call center based in Kansas City, Missouri.

 Overview of Markets
 We continue to focus on four primary end-markets: Electric Utility Transmission and Distribution, or T&D, Telecom, Rail, Forestry, Waste Management, and Infrastructure. In the T&D end-market, we continue to observe demand for new generation assets resulting in the development of new transmission lines as well as repair projects to address advanced-age transmission and distribution grids to replace existing lines and poles. These factors resulted in continued demand from our customers of the Company's products and services. Telecom, specifically the roll-out of 5G, has seen some positive trends over the last few years. Our existing T&D related contactor customers will continue to deliver the roll-out, and our existing equipment portfolio aligns well with the needs of this market. Rail investment, both in the freight and commuter markets, remains robust. The existing rail infrastructure is aged and in need of maintenance. Infrastructure also provides potential growth opportunities as seen by the major road and bridge maintenance work experienced across the United States.
 The Company purchases raw materials, component parts and finished goods to be used in the manufacturing, sale and rental of its products. Uncertainty remains regarding supply chain disruptions, inflationary pressures, public health crises, and geopolitical risks that have led to issues, broadly, in the supply chain. Changes in the Company's relationships with suppliers, shortages in availability of materials, production delays, regulatory restrictions, public health crises, or other supply chain disruptions, whether due to suppliers or customers, could have a material adverse effect on the Company's ability to timely manufacture and market products. Increases in the costs of shipping and transportation, purchased raw materials, component parts or finished goods could result in manufacturing interruptions, delays, inefficiencies or the Company's inability to market products. The Company continues to monitor the impact on its supply chain, including, but not limited to, the commercial vehicle manufacturers that provide the chassis used in the Company's production and manufacturing processes, which could potentially limit the ability of these manufacturers to meet demand in future periods.

 Results of Operations
 Year Ended December 31, 2023, Compared to the Year Ended December 31, 2022

 Consolidated Results of Operations

 2023
 % of revenue
 2022
 % of revenue
 $
Change
 % change

 Rental revenue
 $
 478,910
 25.7%
 $
 464,039
 29.5%
 $
 14,871
 3.2%

 1,253,453
 67.2%
 982,341
 62.4%
 271,112
 27.6%

 Parts sales and services
 7.1%
 8.1%
 6,031
 4.8%

 100.0%
 100.0%
 292,014
 18.6%

 Cost of revenue, excluding rental equipment depreciation
 1,240,176
 66.5%
 1,017,635
 64.7%
 222,541
 21.9%

 170,664
 9.2%
 171,703
 10.9%
 (1,039)
 (0.6)%

 454,260
 24.4%
 383,748
 24.4%
 70,512
 18.4%

 Total operating expenses
 283,312
 280,440
 2,872

 Operating income
 170,948
 103,308
 67,640

 Total other expense
 112,872
 56,576
 56,296

 Income before income taxes
 11,344

 Income tax expense
 7,364
 7,827
 (463)

 Net income
 $
 $
 $
 11,807

 Total Revenue - The increase in revenue for the year ended December 31, 2023, was primarily due to strong customer demand for new equipment and used rental equipment. Equipment sales increased as the continuing improvement in supply chain challenges allowed for greater order fulfillments and our ability to replenish inventory.
 Cost of Revenue, Excluding Rental Equipment Depreciation - Consistent with the increase in revenue versus the prior year, the increase in cost of revenue, excluding rental equipment depreciation, was driven primarily by the increase in new and rental equipment sales volume.
 Depreciation of Rental Equipment - Depreciation expense of our rental equipment for the year ended December 31, 2023, was consistent with the prior year, decreasing by 0.6%, largely due to the timing of additions to the rental fleet.
 Total Operating Expenses - Operating expenses increased for the year ended December 31, 2023, primarily as a result of an increase in general and administrative expenses due to higher commissions, increased headcount and wages, elevated marketing-related activities, and additional expense associated with various information technology projects.
 Total Other Expense - The increase in other expense for the year ended December 31, 2023, was primarily due to an increase in interest expense from variable rate debt and floor plan financing liabilities, as well as a decrease in mark-to-market income from the private warrants liability (accounted for as a derivative financial instrument) to $2.5 million in 2023, from $20.3 million in 2022.
 Income Tax Expense - Our overall effective tax rate is affected by a number of factors, such as the relative amounts of income we earn in differing tax jurisdictions, tax law changes, certain non-deductible expenses (non-taxable income), such as compensation disallowance and mark-to-market adjustments on derivative financial instruments, and changes in the valuation allowance we establish against deferred tax assets. The rate is also affected by discrete items that may occur in any given year, such as legislative enactments and changes in our corporate structure that may occur. These discrete items may not be consistent from year to year. For the year ended December 31, 2023, the impact of state income taxes and a tax benefit from the reduction to the valuation allowance, resulted in an overall effective tax rate in the period of 12.7%, $7.4 million of tax expense being recognized. For the year ended December 31, 2022, the impact of discrete items, including derivative mark-to-market adjustments, transaction and integration expenses, our foreign operations and changes in the valuation allowance, resulted in an overall effective tax rate in the period of 16.7%, $7.8 million of tax expense recognized.
 Net Income - The change in net income for the year ended December 31, 2023, was primarily the result of gross profit expansion, partially offset by higher interest expense on variable-rate debt and variable-rate floor plan liabilities.

 Operating Metrics
 We believe that our operating model, together with our highly variable cost structure, enables us to sustain high margins, strong cash flow generation and stable financial performance throughout various economic cycles. We are able to generate cash flow through our earnings. Our highly variable cost structure adjusts with the utilization of our equipment, thereby reducing our costs to match our revenue. We principally evaluate operational performance based on the following metrics: ending OEC, average OEC on rent, fleet utilization, and OEC on rent yield. We also report sales order backlog related to our customers' orders as an indicator of the demand environment for our products. The table below presents these key measures.

 2023
 2022
 Change
 % Change

 Ending OEC (as of period end)
 $
 1,455,708
 $
 1,455,820
 $
 (112)
 —

 Average OEC on rent
 $
 1,183,253
 $
 1,187,950
 $
 (4,697)
 (0.4)
 %

 Fleet utilization
 80.4
 %
 83.9
 %
 (3.5)
 %
 (4.2)
 %

 OEC on rent yield
 40.4
 %
 39.1
 %
 1.3
 %
 3.3
 %

 Sales order backlog (as of period end)
 $
 688,559
 $
 754,142
 $
 (65,583)
 (8.7)
 %

 Operating Results by Segment
 The following segment information compares results by segment for years ended December 31, 2023 and December 31, 2022.
 Equipment Rental Solutions (ERS) Segment

 2023
 2022

 Rental revenue
 $
 463,139
 $
 449,108

 263,028
 212,146

 726,167
 661,254

 Cost of rental revenue
 118,236
 106,598

 198,510
 158,167

 167,199
 167,962

 483,945
 432,727

 $
 242,222
 $
 228,527

 Total Revenue - The increase in total revenue for the ERS segment for the year ended December 31, 2023, compared to the year ended December 31, 2022, was driven by an increase in rental revenues and equipment sales revenue. Continued demand across our infrastructure end-markets coupled with positive net fleet acquisition during 2023 resulted in greater levels of equipment on rent and equipment purchasing from customers.
 Cost of Revenue - The increase in total cost of revenue for the year ended December 31, 2023, compared to the year ended December 31, 2022, was primarily driven by the increase in cost of equipment sales, resulting from an increase in demand for rental equipment purchases by our customers. The increase is also due to higher levels of fleet maintenance due to the mix of rental returns.
 Gross Profit - The increase in gross profit for the year ended December 31, 2023, compared to the year ended December 31, 2022, was due to the increase in rental revenues and equipment sales for the period, partially offset by increased cost of revenue driven by factors discussed above.

 Truck and Equipment Sales (TES) Segment

 2023
 2022

 $
 990,425
 $
 770,195

 817,639
 647,685

 $
 172,786
 $
 122,510

 Equipment Sales - Equipment sales increased for the year ended December 31, 2023, compared to the year ended December 31, 2022, due to the continued supply chain improvements related to the segment's inventory suppliers, which allowed for greater order fulfillments and sustained strong customer demand.
 Cost of Equipment Sales - The increase in cost of equipment sales for the year ended December 31, 2023, compared to the year ended December 31, 2022, was due to an increase in equipment sales.
 Gross Profit - The increase in gross profit for the year ended December 31, 2023, compared to the year ended December 31, 2022, is reflective of the positive demand and pricing environment for our products.

 Aftermarket Parts and Services (APS) Segment

 2023
 2022

 Rental revenue
 $
 15,771
 $
 14,931

 Parts and services revenue

 148,508
 141,637

 Cost of revenue
 105,791
 105,185

 3,465
 3,741

 109,256
 108,926

 $
 39,252
 $
 32,711

 Total Revenue - Total revenue increased for the year ended December 31, 2023, compared to the year ended December 31, 2022, driven by growth in demand for parts, tools and accessories sales, augmented by increased tools and accessories rentals in the Parts, Tools and Accessories ("PTA") division.
 Cost of Revenue - The increase in cost of revenue for the year ended December 31, 2023, compared to the year ended December 31, 2022, was commensurate with the increase in volume of parts sales and rental activity, partially offset by the Company's focus on managing costs to improve gross profit in this segment.
 Gross Profit - The increase in gross profit for the year ended December 31, 2023, compared to the year ended December 31, 2022, was primarily volume driven, as well as the Company's success in cutting costs to improve gross profit.

 For the Year Ended December 31, 2022, Compared to the Year Ended December 31, 2021
 For a comparison of our results of operations for the year ended December 31, 2022, compared to the year ended December 31, 2021, see " Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our annual report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 14, 2023, which is incorporated herein by reference.

 Liquidity and Capital Resources
 For the Year Ended December 31, 2023, Compared to the Year Ended December 31, 2022
 Our principal sources of liquidity include cash generated by operating activities and borrowings under revolving credit facilities as described below. We believe that our liquidity sources and operating cash flows are sufficient to address our operating, debt service

 and capital requirements, including investments in our rental fleet, over the next 12 months. As of December 31, 2023, we had $10.3 million in cash and cash equivalents compared to $14.4 million as of December 31, 2022. As of December 31, 2023, we had $552.4 million of outstanding borrowings under our ABL Facility compared to $437.7 million of outstanding borrowings as of December 31, 2022.

 Loan Covenants and Compliance
 The ABL Facility contains customary negative covenants for transactions of this type, including covenants that, among other things, limit Buyer's and its restricted subsidiaries' ability to: incur additional indebtedness; pay dividends, redeem stock, or make other distributions; repurchase, prepay or redeem subordinated indebtedness; make investments; create restrictions on the ability of Buyer's restricted subsidiaries to pay dividends to Buyer; create liens; transfer or sell assets; consolidate, merge, sell, or otherwise dispose of all or substantially all of Buyer's assets; enter into certain transactions with Buyer's affiliates; and designate subsidiaries as unrestricted subsidiaries, in each case subject to certain exceptions, as well as a restrictive covenant applicable to each Specified Floor Plan Company (as defined in the ABL Credit Agreement) limiting its ability to own certain assets and engage in certain lines of business. The covenants governing the payment of dividends and making other distributions are based upon a combination of fixed amounts, percentages of Adjusted EBITDA or upon multiple pro forma measures depending on the purpose of any such dividend payments or distributions the Buyer and its restricted subsidiaries are permitted to make. Unlimited dividends under the ABL Facility may be permitted so long as, on a pro forma basis, "distribution conditions" (as defined in the ABL Credit Agreement governing the ABL Facility) are satisfied. As of December 31, 2023, the Company's distribution conditions were satisfied and, as a result, the Company determined there were no restrictions on distribution by the Buyer and its restricted subsidiaries by the ABL Credit Agreement.
 The Indenture contains covenants that limit the Issuer's (and certain of its subsidiaries') ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock, or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Issuer to the Issuer's restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; or (ix) designate the Issuer's subsidiaries as unrestricted subsidiaries. The covenants governing the payment of dividends and making other distributions are based upon a combination of fixed amounts, percentages of Adjusted EBITDA or upon multiple pro forma measures depending on the purpose of any such dividend payments or distributions the Issuer and its restricted subsidiaries are permitted to make. Unlimited dividends, under 2029 Indenture, may be made so long as after giving effect to making the dividends, the consolidated total debt ratio would be no greater than 5.00 to 1.00 on a pro forma basis. As of December 31, 2023, the Company's consolidated total debt ratio was not greater than 5.00 to 1.00 and, as a result, the Company determined there were no restrictions on distribution by the Issuer and its restricted subsidiaries by the Indenture. See Note 9: Long-Term Debt in the Notes to the Consolidated Financial Statements under Part II, Item 8 for more information.
 The Company presents Adjusted EBITDA calculated in accordance with "Consolidated EBITDA" as that term is used in the ABL Credit Agreement and the Indenture. Adjusted EBITDA is defined as net income, as adjusted for provision for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization, and further adjusted for the impact of the fair value mark-up of acquired rental fleet (the "non-cash purchase accounting impact"), business acquisition and merger-related costs, including integration, the impact of accounting for certain of our rental contracts with customers that are accounted for under GAAP as a sales-type lease and stock compensation expense.
 The Company presents Net Leverage Ratio, which is equivalent to Consolidated Total Net Leverage Ratio in our ABL Credit Agreement and Consolidated Total Debt Ratio in the Indenture, is defined as Net Debt over Adjusted EBITDA. Net debt is defined as total debt (calculated as current and long-term debt, excluding deferred financing fees, plus current and long-term finance lease obligations) minus cash and cash equivalents.
 Our creditors utilize Adjusted EBITDA and Net Leverage Ratio to assess our compliance with the restrictive covenants in the ABL Credit Agreement and the Indenture. Neither Adjusted EBITDA or Net Leverage Ratio is calculated in accordance with GAAP and may not conform to the calculation of Adjusted EBITDA or Net Leverage Ratio used by other companies. Neither Adjusted EBITDA or Net leverage Ratio should be considered as a substitute for a measure of our financial performance or liquidity prepared in accordance with GAAP.

 The following table provides the calculation of Adjusted EBITDA pursuant to the ABL Credit Agreement and the Indenture for the years ended December 31, 2023 and 2022:

 2023
 2022
 $ Change
 % Change

 Net income
 $
 $
 $
 11,807
 30.3
 %

 Interest expense
 94,694
 76,265
 18,429
 24.2
 %

 Income tax expense
 7,364
 7,827
 (463)
 (5.9)
 %

 Depreciation and amortization
 218,993
 223,483
 (4,490)
 (2.0)
 %

 EBITDA
 371,763
 346,480
 25,283
 7.3
 %

 Adjustments:

 Non-cash purchase accounting impact (1)
 19,742
 23,069
 (3,327)
 (14.4)
 %

 Transaction and integration costs (2)
 14,143
 26,218
 (12,075)
 (46.1)
 %

 Sales-type lease adjustment (3)
 10,458
 5,204
 5,254
 101.0
 %

 Share-based payments (4)
 13,309
 12,297
 1,012
 8.2
 %

 Change in fair value of derivative and warrants (5)
 (2,485)
 (20,290)
 17,805
 (87.8)
 %

 Adjusted EBITDA
 $
 426,930
 $
 392,978
 $
 33,952
 8.6
 %

 (1) Represents the non-cash impact of purchase accounting, net of accumulated depreciation, on the cost of equipment and inventory sold. The equipment and inventory acquired received a purchase accounting step-up in basis, which is a non-cash adjustment to the equipment cost pursuant to our ABL Credit Agreement.
 (2) Represents transaction and process improvement costs related to acquisitions of businesses, including post-acquisition integration costs, which are recognized within operating expenses in our Consolidated Statements of Operations and Comprehensive Income (Loss). These expenses are comprised of professional consultancy, legal, tax and accounting fees. Also included are expenses associated with the integration of acquired businesses. These expenses are presented as adjustments to net income pursuant to our ABL Credit Agreement.
 (3) Represents the impact of sales-type lease accounting for certain leases containing RPOs, as the application of sales-type lease accounting is not deemed to be representative of the ongoing cash flows of the underlying rental contracts. The adjustments are made pursuant to our ABL Credit Agreement.

 2023
 2022

 $
 (58,064)
 $
 (41,525)

 55,716
 37,582

 (2,348)
 (3,943)

 Interest income
 (16,065)
 (12,130)

 Rental invoiced
 28,871
 21,277

 Sales-type lease adjustment
 $
 10,458
 $
 5,204

 (4) Represents non-cash share-based compensation expense associated with the issuance of stock options and restricted stock units.
 (5) Represents the charge to earnings for our interest rate collar and the change in fair value of the liability for warrants.

 The following table presents the calculation of Net Debt and Net Leverage Ratio:

 Current maturities of long-term debt
 $
 8,257
 $
 6,940

 Current portion of finance lease obligations
 —
 1,796

 Long-term debt, net
 1,487,136
 1,354,766

 Finance leases
 —
 3,206

 Deferred financing fees
 22,406
 27,686

 Less: cash and cash equivalents
 (10,309)
 (14,360)

 Net Debt
 $
 1,507,490
 $
 1,380,034

 Divided by: Adjusted EBITDA
 426,930
 392,978

 Net Leverage Ratio
 3.53
 3.51

 Future Contractual Obligations
 Our estimated future obligations as of December 31, 2023 include both short-term (over the next 12 months) and long-term obligations. We expect that our principal short-term (over the next 12 months) and long-term needs for cash relating to our operations will be to fund operating activities and working capital, the purchase of rental equipment and inventories for vocational truck production and parts and accessories products, human capital costs (which are not accurately estimable), payments due under leases, debt service, and acquisitions. We plan to fund such cash requirements from our existing sources of cash. In addition, we may seek additional financing through the use of additional operating leases or other financing sources as market conditions permit.
 Our expected material contractual cash requirements over the next twelve months primarily consist of minimum operating lease obligations of $8.8 million, debt principal and interest payments of $8.0 million and $101.8 million, respectively, and the repayment of floor plan borrowings. We enter into purchase agreements with manufacturers and suppliers of chassis, parts and components and attachments, for our rental fleet and inventory. The purchase agreements are cancellable within a specified notification period to the supplier. Such amounts are not estimable as of December 31, 2023.
 Operating Lease Payments. We have short-term and long-term minimum cash requirements for operating lease payments of $8.8 million and $41.6 million, respectively. The total amounts do not equal the carrying amount due to imputed interest. See Note 10: Leases as Lessee in the Notes to the Consolidated Financial Statements under Part II, Item 8, for a summary of the estimated future repayment terms for the operating lease amounts.
 Floor Plan Financing. We have floor plan payables of $662.3 million at December 31, 2023 that represent financing arrangement to facilitate our purchase of chassis, parts, components and attachments inventory. All floor plan payables are collateralized by the inventory financed. These payables become due and payable upon the sale, transfer, or reclassification of each unit to inventory. See Note 7: Floor Plan Financing in the Notes to the Consolidated Financial Statements under Part II, Item 8, for obligations related to trade and non-trade floor plan financings.

 Notes Payable and Loan Principal and Interest Payments. We have short-term and long-term cash requirements of $8.0 million and $1,509.8 million, respectively, for the payment of principal related to notes payable and loans as of December 31, 2023. The total amount does not equal the carrying amount due to unamortized deferred charges. See Note 9: Long-Term Debt in the Notes to the Consolidated Financial Statements under Part II, Item 8 for more information.

 Sources and Uses of Cash
 The following table summarizes our sources and uses of cash:

 2023
 2022

 Net cash flow from operating activities
 $
 (30,883)
 $
 45,968

 Net cash flow from investing activities
 (176,598)
 (218,936)

 Net cash flow from financing activities
 202,876
 153,896

 Effect of exchange rate changes on cash and cash equivalents
 (2,470)

 Net change in cash and cash equivalents
 $
 (4,051)
 $
 (21,542)

 As of December 31, 2023, we had cash and cash equivalents of $10.3 million, a decrease of $4.1 million from December 31, 2022. Generally, we manage our cash flow by using any excess cash, after considering our working capital and capital expenditure needs, including paying down the outstanding balance under our ABL Facility, and availability under our credit facilities.
 Cash Flows from Operating Activities
 Net cash used in operating activities was $30.9 million for the year ended December 31, 2023, as compared to $46.0 million provided by operating activities in the same period of 2022. The use of cash in the current period is the result of our increased levels of inventory purchases and production.
 Cash Flows from Investing Activities
 Net cash used in investing activities was $176.6 million for the year ended December 31, 2023, as compared to cash used in investing activities of $218.9 million in 2022. The decrease in cash used in investing activities is due to the cash paid for acquisition, net of cash acquired, in 2022 of $49.8 million as well as an increase in proceeds from sales and disposals of rental equipment of $23.7 million, partially offset by an increase in purchases for rental and non-rental equipment and cloud computing arrangements of $31.2 million.
 Cash Flows from Financing Activities
 Net cash provided by financing activities was $202.9 million for the year ended December 31, 2023, as compared to $153.9 million in 2022. The increase in cash provided by financing activities is primarily due to an increase in borrowings under revolving credit facilities of $68.0 million, partially offset by an increase in cash paid for the repurchase of common stock of $28.6 million.
 Year Ended December 31, 2022, Compared to the Year Ended December 31, 2021
 For a comparison of our liquidity and capital resources for the year ended December 31, 2022, compared to the year ended December 31, 2021, see " Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our annual report on Form 10-K for the year ended December 31, 2022, filed with the Securities and exchange Commission on March 14, 2023, which is incorporated herein by reference.

 Critical Accounting Estimates
 We prepare our consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). In applying accounting principles it is often required to use estimates. These estimates consider the facts, circumstances, and information available, and may be based on subjective inputs, assumptions, and information known and unknown to us. Material changes in certain of the estimates that we use, could potentially affect, by a material amount, our consolidated financial position and results of operations. Although results may vary, we believe our estimates are reasonable and appropriate. See Note 2: Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements under Part II, Item 8 thereof. The following describes certain of our significant accounting policies that involve more subjective and complex judgments where the effect on our consolidated financial position and operating performance could be material.

 Useful Lives and Salvage Values of Rental Equipment
 Our rentable equipment consists of aftermarket parts and specialized rental equipment. Purchases of our equipment are recorded at cost and we depreciate the cost to an estimated salvage value. We depreciate our aftermarket parts over their estimated useful rentable life of five years. We depreciate our rental equipment over its estimated useful rentable life of one to seven years with an estimated residual value of 0% to 35% of the cost, using the straight-line method. Useful life is estimated based upon the expected period the

 equipment will be in the fleet as a rentable unit. A salvage value is estimated to approximate the value of the equipment at the end of its useful (i.e., rentable) life, allowing for a reasonable profit margin on the sale of the equipment when we remove the unit from the fleet. In establishing useful lives and salvage values, we consider factors related to customer demand of differing types of equipment in order for us to hold and maintain an optimal mix of equipment types in our fleet. We also continuously evaluate factors related to the condition and serviceability of the equipment in our fleet in order to make estimates of useful life and expected end-of-life value. Depreciation of our equipment is recognized as a component of our cost of revenue. For sold equipment, the carrying value of an item is recognized as cost of equipment sale within cost of revenue. Changes in estimated useful life and/or salvage value would impact our gross profit in our consolidated financial statements. To the extent that the useful lives of our rental equipment were to increase or decrease by one year, we estimate that our annual depreciation expense would increase or decrease by approximately $149.6 million, respectively. Similarly, to the extent the estimated salvage values of our rental equipment were to increase or decrease by one percentage point, we estimate that our annual depreciation expense would change by approximately $3.4 million. Any change in depreciation expense as a result of a hypothetical change in either useful lives or salvage values would generally result in a proportional increase or decrease in the gross profit we would recognize upon the ultimate sale of the asset.

 Business Combinations
 We have made acquisitions in the past and may continue to make acquisitions in the future. We allocate the cost of the acquired enterprise to the assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. Rental equipment generally represents the largest component and was 37% of total assets acquired during the two years ended December 31, 2022, followed by goodwill at 30% and other intangible assets at 20%. There were no acquisitions made during the year ended December 31, 2023. Goodwill is attributable to the synergies and economies of scale expected from the combination of the businesses.
 In addition to long-lived fixed assets, we also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable, deferred revenue and other working capital items. Because of their short-term nature, the fair values of these other assets and liabilities generally approximate the carrying values reflected on the acquired entities' balance sheets. However, when appropriate, we adjust these carrying values for factors such as collectability and existence. The intangible assets that we have acquired included goodwill and customer relationships. Goodwill was calculated as the excess of the cost of the acquired entity over the fair value of the net assets acquired. Customer relationships were valued based on an excess earnings or income approach with consideration to projected cash flows.
 Our estimates of the values of tangible assets from our business combinations, principally rental equipment, utilize data that reflect quoted prices for similar assets available in active markets (such as the used equipment market). For this reason, estimates of the fair values of these items is not considered to be highly subjective or complex. However, to estimate the values of intangible assets we utilize income methods that involve forecasting future cash flow related to the acquired businesses. The estimates of future cash flow require us to establish expectations about customer demand, investments in maintaining or expanding infrastructure for the markets the businesses serve, and the supply and capacity of equipment in the rental market, among others. Additionally, we are required to establish expectations for the businesses' cost of capital and ability to acquire and maintain equipment in the future. Critical estimates utilized in valuing intangible assets acquired include, but are not limited to, free cash flows, taxes, amortization, customer attrition rates, discount rates and long-term growth rates. Changes in these assumptions would have an impact to the amount of intangible assets recorded and the resulting amortization expense.

 Goodwill and the Evaluation of Goodwill Impairment
 Goodwill represents the excess of cost over the fair value of identifiable net assets of businesses acquired. We review goodwill for impairment at least annually or more frequently as warranted by triggering events that indicate potential impairment. The Company may perform qualitative and quantitative impairment analyses on October 1 annually to evaluate whether it is more likely than not that the fair value of its reporting units is less than their respective carrying amounts as of the annual assessment date. Goodwill is analyzed for impairment at the reporting unit level, which we have determined to be our operating segments, ERS, TES, and APS. A qualitative assessment ("Step 0 test") may include, but is not limited to, reviewing factors such as macroeconomic conditions, industry and market considerations, cost factors, financial performance and other entity or reporting unit specific events. When performing a Step 0 test, if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then perform a quantitative goodwill impairment analysis ("Step 1 test") by comparing the carrying amount to an estimate of the fair value of the reporting unit. We performed the Step 0 test for each of our reporting units and supplemented the analysis by performing a Step 1 test specific to the ERS and APS reporting units as of October 1, 2023. In performing the supplemental Step 1 test in 2023 related to the ERS and APS reporting units, we estimated the fair value of each reporting unit using the income approach. The income approach utilizes assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets.
 Factors that management must estimate when performing impairment tests include rental and sales volumes and prices, inflation, discount rates, tax rates and capital spending. Significant management judgment is involved in estimating these factors, and they

 include inherent uncertainties. The estimates of future cash flow require us to establish expectations about customer demand, investments in maintaining or expanding infrastructure for the markets each reporting unit serves, and the supply and capacity of equipment in the rental market, among others. Additionally, we are required to establish expectations for the businesses' cost of capital and ability to acquire and maintain equipment in the future. Measurement of the recoverability of these assets is dependent upon the accuracy of the assumptions used in making these estimates, as well as how the estimates compare to our eventual future operating performance. Changes in these estimates, many of which fall under Level 3 within the fair value measurement hierarchy (refer to Note 2: Summary of Significant Accounting Policies – Fair Value Measurements to the consolidated financial statements included in this Annual Report on Form 10-K), could change our conclusion regarding the impairment of goodwill assets and potentially reduce the carrying value of goodwill on our balance sheet and reduce our income in the year in which it is recorded.
 As a result of our analyses, the Company determined that there was no impairment of goodwill.

 Accounts Receivable and Allowance for Doubtful Accounts
 Allowance for doubtful accounts represents our estimate of current expected credit losses on our trade accounts receivable. Accounts receivable from customers are generated from our leasing, sales and service businesses. We make judgments regarding our expected credit losses, which are based on an assessment of historical credit losses, ability of customers to pay, current financial conditions of customers, as well as forecasts of collections and losses. Other factors that could lead to credit losses include adverse trends in the end-market industries that we serve and macroeconomic trends, each of which is considered in our forecasts. Estimated credit losses related to accounts receivable generated through leasing activities are recorded as a reduction to rental revenue. Estimated credit losses related to accounts receivable generated through sales and service activities are recorded within selling, general and administrative expense. The allowance for doubtful accounts represents our estimate of credit losses expected on our trade receivables. Although we believe that our estimates and judgments are reasonable, actual results may differ from these estimates. At December 31, 2023, a 100 basis point increase to our credit loss estimate would increase our allowance for doubtful accounts by approximately $0.9 million.

 Income Taxes
 We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences (meaning, inclusions of income and deductions in income tax returns to be filed in future periods) of events that have been included in the financial statements. These items may be referred to as "temporary differences." Under this method, deferred tax assets and liabilities are determined based on the differences between their financial statement carrying amount (or, basis) and the carrying amount for taxes (or, tax basis) using enacted tax rates in effect for the year in which the differences are expected to affect income in the future tax filings. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
 We record deferred tax assets to the extent we believe that it is more likely than not that these assets will be realized in the future. Future realization of deferred income tax assets (meaning, items that may provide tax deductions in future periods) requires evidence that there will be sufficient taxable income in those future periods, or within any carryback periods available under tax law. We evaluate the realizability of our deferred tax assets on a quarterly basis. To be realized, there must be an objective and verifiable basis for the expectation of taxable income in future periods to offset, or "consume," the deferred tax assets. The evaluation includes the consideration of all available factors, both positive and negative, regarding (i) the estimated future reversals of existing taxable temporary differences (that is, deferred tax liabilities), (ii) forecasted future taxable income, exclusive of those reversing temporary differences and carryforwards, (iii) historical taxable income in prior carryback periods, if carryback is permitted, and (iv) potential tax planning strategies that may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The verifiable evidence, such as future reversals of existing temporary differences and the ability to carryback, are considered before estimated future taxable income (exclusive of temporary differences and tax planning strategies) is considered because future taxable income estimates are more subjective. The majority of our deferred tax assets are comprised of income tax carryforwards, including federal and state net operating loss carryforwards ("NOLs") and non-deductible interest expense carryforwards. Some of these carryforwards are subject to annual usage limitations and expiration, while other state NOLs and a portion of federal NOLs do not have expirations.
 While we remain in a financial reporting loss position based on a cumulative pre-tax loss for the three-year period ended December 31, 2023, the determination of the valuation allowance is based on our evaluation of the periods over which future taxable items are expected to be utilized to offset tax loss and deduction carryforward items in those future periods. That is, future forecasts of our taxable income are not considered in the evaluation of realizability of our deferred tax assets. Therefore, changes in our deferred tax asset valuation allowances will primarily be affected by changes in the estimates of the time periods over which those future taxable items will occur. At December 31, 2023, our deferred tax asset valuation allowance was $67.6 million.

 Recent Accounting Pronouncements
 See Note 2: Summary of Significant Accounting Policies, to our Annual Report on Form 10-K for a discussion of recently issued and adopted accounting pronouncements.

 Item 7A. Quantitative and Qualitative Disclosures About Market Risk
 Interest rate risk
 We are subject to interest rate market risk in connection with our long-term debt. Our principal interest rate exposure relates to outstanding amounts under our ABL facility and our floor plan financing arrangements. Interest rate changes generally impact the amount of our interest payments and, therefore, our future net income and cash flows, assuming other factors are held constant. As of December 31, 2023, we had $1,214.7 million aggregate principal amount of variable rate debt, consisting of the balance outstanding under the ABL Facility and floor plan financing arrangements. Holding other variables constant, each one-eighth percentage point increase or decrease in the applicable interest rates would correspondingly change our interest expense under the ABL Facility and floor plan financing arrangements by approximately $1.5 million on an annual basis.
 We, from time to time, may manage a portion of our risks from exposures to fluctuations in interest rates as part of our risk management program through the use of derivative financial instruments. The objective of controlling these risks is to limit the impact on earnings and cash flows caused by fluctuations in the interest rates of our variable-rate debt.
 Foreign currency exchange rate risk
 During the year ended December 31, 2023, we generated $48.6 million of revenue in Canadian dollars. Each 100 basis point increase or decrease in the average Canadian dollar to U.S. dollar exchange rate for the year would have correspondingly changed our revenues by approximately $0.5 million. We do not currently hedge our exchange rate exposure.

 Item 8. Financial Statements and Supplementary Data

 Custom Truck One Source, Inc. and Subsidiaries
 Consolidated Financial Statements Index

 Page No.

 Report of Independent Registered Public Accounting Firm - Ernst & Young LLP (PCAOB ID No. 42)

 Consolidated Financial Statements:

 Consolidated Statements of Operations and Comprehensive Income (Loss)

 Consolidated Balance Sheets

 Consolidated Statements of Cash Flows

 Consolidated Statements of Stockholders' Equity (Deficit)

 Notes to Consolidated Financial Statements

 Report of Independent Registered Public Accounting Firm
 To the Stockholders and the Board of Directors of Custom Truck One Source, Inc.
 Opinion on the Financial Statements
 We have audited the accompanying consolidated balance sheets of Custom Truck One Source, Inc. (the Company) as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income (loss), stockholders' equity (deficit) and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.

 We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 7, 2024 expressed an adverse opinion thereon.
 Basis for Opinion
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
 Critical Audit Matter
 The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

 Valuation of Goodwill of the Equipment Rental Solutions and Aftermarket Parts and Services Reporting Units

 Description of the Matter
 At December 31, 2023, the Company's goodwill was $704.0 million with $498.8 million assigned to the Equipment Rental Solutions (ERS) reporting unit and $37.9 million assigned to the Aftermarket Parts and Services (APS) reporting unit. As described in Note 2 to the consolidated financial statements, goodwill is tested for impairment annually on October 1st and whenever events or circumstances indicate a reporting unit's fair value may be less than its carrying value. The Company estimates the fair value of its reporting units using the income approach using discounted estimated future cash flows.

 Auditing management's annual goodwill impairment analysis for the ERS and APS reporting units was complex and highly judgmental due to the significant estimation required by management to determine the fair value of the reporting units. In particular, the income approach fair value estimates were sensitive to significant assumptions, such as the revenue growth and discount rate for the ERS and APS reporting units, which are affected by expectations about future market or economic conditions.

 How We Addressed the Matter in Our Audit
 We obtained an understanding of the Company's goodwill impairment assessment for the ERS and APS reporting units.

 To test the estimated fair values of the Company's ERS and APS reporting units, we performed audit procedures that included, among others, evaluating the valuation methodology and testing the significant assumptions discussed above used by the Company in its analysis. We involved our internal valuation specialists to assist in the evaluation of the valuation methodology and testing certain significant assumptions, including the discount rate. We compared the significant assumptions, such as revenue growth, used by management to current industry and economic data, recent historical performance and other factors. We assessed the historical accuracy of management's estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the reporting units that would result from changes in the assumptions. We also tested the underlying data used by the Company in its analysis for completeness and accuracy.

 /s/ Ernst & Young LLP
 We have served as the Company's auditor since 2021.
 Kansas City, Missouri

 Consolidated Statements of Operations and Comprehensive Income (Loss)

 For the Years Ended

 (in $000s, except per share data)
 2023
 2022
 2021

 Revenue

 Rental revenue
 $
 478,910
 $
 464,039
 $
 370,067

 1,253,453
 982,341
 695,334

 Parts sales and services
 101,753

 1,167,154

 Cost of Revenue

 Cost of rental revenue
 120,198
 110,272
 99,885

 170,664
 171,703
 157,110

 1,016,149
 805,852
 618,444

 Cost of parts sales and services
 103,829
 101,511
 81,702

 1,410,840
 1,189,338
 957,141

 Gross Profit
 454,260
 383,748
 210,013

 Operating Expenses

 Selling, general and administrative expenses
 231,403
 210,868
 155,783

 Amortization
 27,110
 33,940
 40,754

 Non-rental depreciation
 10,656
 9,414
 3,613

 Transaction expenses and other
 14,143
 26,218
 51,830

 Total operating expenses
 283,312
 280,440
 251,980

 Operating Income (Loss)
 170,948
 103,308
 ( 41,967)

 Other Expense

 Loss on extinguishment of debt
 —
 —
 61,695

 Interest expense, net
 131,315
 88,906
 72,843

 Financing and other (income) expense
 ( 18,443)
 ( 32,330)

 Total other expense
 112,872
 56,576
 135,109

 Income (Loss) Before Income Taxes
 ( 177,076)

 Income Tax Expense
 7,364
 7,827
 4,425

 $
 $
 $

 Other Comprehensive Income (Loss):

 Unrealized foreign currency translation adjustments, net
 $
 2,969
 $
 $
 —

 Other Comprehensive Income (Loss)
 2,969
 —

 Comprehensive Income (Loss)
 $
 53,681
 $
 29,958
 $

 Net Income (Loss) Per Share:

 Basic
 $
 0.21
 $
 0.16
 $
 ( 0.75)

 Diluted
 $
 0.21
 $
 0.16
 $
 ( 0.75)

 Weighted-Average Common Shares Outstanding:

 Basic (in thousands)
 245,093
 247,152
 241,370

 Diluted (in thousands)
 245,726
 247,705
 241,370

 See accompanying notes to consolidated financial statements.

 Consolidated Balance Sheets
 (in $000s, except share data)

 Assets

 Current Assets

 Cash and cash equivalents
 $
 10,309
 $
 14,360

 Accounts receivable, net
 215,089
 193,106

 Financing receivables, net
 30,845
 38,271

 Inventory
 985,794
 596,724

 Prepaid expenses and other
 23,862
 25,784

 Total current assets
 1,265,899
 868,245

 Property and equipment, net
 142,115
 121,956

 Rental equipment, net
 916,704
 883,674

 Goodwill
 704,011
 703,827

 Intangible assets, net
 277,212
 304,132

 Operating lease assets
 38,426
 29,434

 Other assets
 23,430
 26,944

 Total Assets
 $
 3,367,797
 $
 2,938,212

 Liabilities and Stockholders' Equity

 Current Liabilities

 Accounts payable
 $
 117,653
 $
 87,255

 Accrued expenses
 73,847
 68,784

 Deferred revenue and customer deposits
 28,758
 34,671

 Floor plan payables - trade
 253,197
 136,634

 Floor plan payables - non-trade
 409,113
 293,536

 Operating lease liabilities - current
 6,564
 5,262

 Current maturities of long-term debt
 8,257
 6,940

 Current portion of finance lease obligations
 —
 1,796

 Total current liabilities
 897,389
 634,878

 Long-term debt, net
 1,487,136
 1,354,766

 Finance leases
 —
 3,206

 Operating lease liabilities - noncurrent
 32,714
 24,818

 Deferred income taxes
 33,355
 29,086

 Warrants and other liabilities
 —
 3,015

 Total long-term liabilities
 1,553,205
 1,414,891

 Stockholders' Equity

 Common stock — $ 0.0001 par value, 500,000,000 shares authorized, 249,903,120 and 248,311,104 shares issued and outstanding, at December 31, 2023 and December 31, 2022, respectively

 Treasury stock, at cost — 8,891,788 and 2,241,069 shares at December 31, 2023 and December 31, 2022, respectively

 ( 56,524)
 ( 15,537)

 Additional paid-in capital
 1,537,553
 1,521,487

 Accumulated other comprehensive loss
 ( 5,978)

 Accumulated deficit
 ( 557,873)
 ( 608,585)

 Total stockholders' equity
 917,203
 888,443

 Total Liabilities and Stockholders' Equity
 $
 3,367,797
 $
 2,938,212

 See accompanying notes to consolidated financial statements.

 Consolidated Statements of Cash Flows

 Years Ended December 31,

 2023
 2022
 2021

 Operating Activities

 $
 $
 $

 Adjustments to reconcile net income (loss) to net cash flow from operating activities:

 Depreciation and amortization
 218,993
 223,483
 209,073

 Amortization of debt issuance costs
 5,653
 4,860
 4,740

 Loss on extinguishment of debt
 —
 —
 61,695

 Provision for losses on accounts receivable
 8,522
 12,650
 11,103

 Share-based compensation
 13,309
 12,297
 17,313

 Gain on sales and disposals of rental equipment
 ( 67,721)
 ( 55,213)
 ( 11,636)

 Change in fair value of derivative and warrants
 ( 2,485)
 ( 20,290)
 6,192

 Deferred tax expense
 4,241
 7,387
 3,863

 Changes in assets and liabilities:

 Accounts and financing receivables
 ( 20,879)
 ( 36,821)
 ( 37,716)

 Inventories
 ( 388,063)
 ( 194,691)
 46,574

 Prepaids, operating leases and other
 3,518
 ( 11,936)
 ( 6,123)

 Accounts payable
 28,339
 ( 5,589)
 8,060

 Accrued expenses and other liabilities
 4,339
 8,108
 5,580

 Floor plan payables - trade, net
 116,563
 63,920
 ( 18,276)

 Customer deposits and deferred revenue
 ( 5,924)
 ( 1,102)
 19,985

 Net cash flow from operating activities
 ( 30,883)
 45,968
 138,926

 Investing Activities

 Acquisition of businesses, net of cash acquired
 —
 ( 49,832)
 ( 1,337,686)

 Purchases of rental equipment
 ( 364,190)
 ( 340,791)
 ( 188,389)

 Proceeds from sales and disposals of rental equipment
 229,559
 205,852
 99,833

 Purchase of non-rental property and cloud computing arrangements
 ( 41,967)
 ( 34,165)
 ( 3,238)

 Net cash flow from investing activities
 ( 176,598)
 ( 218,936)
 ( 1,429,480)

 Financing Activities

 Proceeds from debt
 21,417
 —
 952,743

 Proceeds from issuance of common stock
 —
 —
 883,000

 Payment of common stock issuance costs
 —
 —
 ( 6,386)

 Payment of premiums on debt extinguishment
 —
 —
 ( 53,469)

 ( 1,838)
 ( 652)

 Borrowings under revolving credit facilities
 221,046
 153,036
 491,084

 Repayments under revolving credit facilities
 ( 106,377)
 ( 110,249)
 ( 347,111)

 Repayments of notes payable
 ( 7,679)
 ( 1,012)
 ( 507,509)

 Finance lease payments
 ( 2,682)
 ( 3,955)
 ( 5,223)

 Repurchase of common stock
 ( 38,845)
 ( 10,279)
 —

 Acquisition of inventory through floor plan payables - non-trade
 789,199
 619,896
 304,902

 Repayment of floor plan payables - non-trade
 ( 673,622)
 ( 491,599)
 ( 353,641)

 Payment of debt issuance costs
 ( 373)
 ( 104)
 ( 34,694)

 Net cash flow from financing activities
 202,876
 153,896
 1,323,044

 Effect of exchange rate changes on cash and cash equivalents
 ( 2,470)
 —

 Net Change in Cash and Cash Equivalents
 ( 4,051)
 ( 21,542)
 32,490

 Cash and Cash Equivalents at Beginning of Period
 14,360
 35,902
 3,412

 Cash and Cash Equivalents at End of Period
 $
 10,309
 $
 14,360
 $
 35,902

 Consolidated Statements of Cash Flows — Continued

 Years Ended December 31,

 2023
 2022
 2021

 Supplemental Cash Flow Information

 Interest paid
 $
 122,868
 $
 81,177
 $
 92,625

 Income taxes paid
 2,133

 Non-Cash Investing and Financing Activities

 Non-cash consideration - acquisition of business
 —
 —
 187,935

 Property and equipment purchases in accounts payable
 2,120
 —

 Rental equipment sales in accounts receivable
 22,517
 11,283
 1,555

 See accompanying notes to consolidated financial statements.

 Consolidated Statements of Stockholders' Equity (Deficit)

 Common Stock
 Treasury Stock
 Additional Paid-in Capital
 Accumulated Other Comprehensive Loss
 Accumulated Deficit
 Total Stockholders' Equity (Deficit)

 Shares

 (in $000s, except share data)
 Common
 Treasury

 Balance, December 31, 2020
 49,156,753
 —
 $
 $
 —
 $
 434,917
 $
 —
 $
 ( 465,989)
 $
 ( 31,067)

 —
 —
 —
 —
 —
 —

 1,501,659
 ( 318,086)
 —
 ( 3,020)
 19,839
 —
 —
 16,819

 Warrants liability reclassification
 —
 —
 —
 —
 ( 10,290)
 —
 —
 ( 10,290)

 Shares issued in business combination
 196,700,000
 —
 —
 1,064,529
 —
 —
 1,064,549

 Balance, December 31, 2021
 247,358,412
 ( 318,086)
 $
 $
 ( 3,020)
 $
 1,508,995
 $
 —
 $
 ( 647,490)
 $
 858,510

 —
 —
 —
 —
 —
 —

 Other comprehensive income (loss)
 —
 —
 —
 —
 —
 —

 Common stock repurchases
 —
 ( 1,657,635)
 —
 ( 10,483)
 —
 —
 —
 ( 10,483)

 952,692
 ( 265,348)
 —
 ( 2,034)
 12,492
 —
 —
 10,458

 Balance, December 31, 2022
 248,311,104
 ( 2,241,069)
 $
 $
 ( 15,537)
 $
 1,521,487
 $
 $
 ( 608,585)
 $
 888,443

 —
 —
 —
 —
 —
 —

 Other comprehensive income (loss)
 —
 —
 —
 —
 —
 2,969
 —
 2,969

 Common stock repurchases
 —
 ( 6,354,587)
 —
 ( 39,021)
 —
 —
 —
 ( 39,021)

 1,592,016
 ( 296,132)
 —
 ( 1,966)
 16,066
 —
 —
 14,100

 Balance, December 31, 2023
 249,903,120
 ( 8,891,788)
 $
 $
 ( 56,524)
 $
 1,537,553
 $
 ( 5,978)
 $
 ( 557,873)
 $
 917,203

 See accompanying notes to consolidated financial statements.

 Notes to Consolidated Financial Statements

 Note 1: Business and Organization
 Organization
 Custom Truck One Source, Inc., a Delaware corporation, and its wholly owned subsidiaries are engaged in the business of providing a range of products and services to customers through rentals and sales of specialty equipment, rentals and sales of aftermarket parts and services related to the specialty equipment, and repair, maintenance and customization services related to that equipment. Immediately following the acquisition by Nesco Holdings II, Inc. of Custom Truck One Source, L.P. ("Custom Truck LP") as discussed in Note 3: Business Combinations, on April 1, 2021 (the "Acquisition"), Nesco Holdings, Inc. ("Nesco Holdings") changed its name to "Custom Truck One Source, Inc." and changed The New York Stock Exchange ticker for its shares of common stock ("Common Stock") from "NSCO" to "CTOS," and the ticker of its redeemable warrants from "NSCO.WS" to "CTOS.WS." Terms such as, "we," "our," "us," or "the Company" refer to Nesco Holdings prior to the Acquisition, and to the combined company after the Acquisition. Unless the context otherwise requires, the term "Nesco" or "Nesco Holdings" as used in these financial statements means Nesco Holdings and its consolidated subsidiaries prior to the Acquisition, and the term "Custom Truck LP" means Custom Truck LP and its consolidated subsidiaries prior to and on the date of the Acquisition.
 We are a specialty equipment provider to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management and other infrastructure-related industries in North America. Our core business relates to our new equipment inventory and rental fleet of specialty equipment that is utilized by service providers in infrastructure development and improvement work. We offer our specialized equipment to a diverse customer base, including utilities and contractors, for the maintenance, repair, upgrade, and installation of critical infrastructure assets, including distribution and transmission electric lines, telecommunications networks and rail systems, as well as for lighting and signage. We rent, produce, sell and service a broad range of new and used equipment, including bucket trucks, digger derricks, dump trucks, cranes, service trucks, and heavy-haul trailers. We manage the business in three reporting segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES") and Aftermarket Parts and Services ("APS"). Segment information provided within this Annual Report on Form 10-K, is included in Note 20: Segments.
 Equipment Rental Solutions ("ERS") Segment
 We own a broad range of new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks and other machinery and equipment. As of December 31, 2023, this equipment (the "rental fleet") is comprised of more than 10,300 units. The majority of our rental fleet can be used across a variety of end-markets, which coincides with the needs of many of our customers who operate in multiple end-markets. As is customary for equipment rental companies, we sell used equipment out of our rental fleet to end user customers. These sales are often made in response to specific customer requests. These sales offer customers an opportunity to buy well-maintained equipment with long remaining useful lives and enable us to effectively manage the age and mix of our rental fleet to match current market demand. We also employ rental purchase options on a select basis, which provide a buyout option with an established purchase price that decreases over time as rental revenue is collected. Customers are given credit against such purchase price for a portion of the amounts paid over the life of the rental, allowing customers the flexibility of a rental with the option to purchase at any time at a known price. Activities in our ERS segment consist of the rental and sale from the rental fleet, of the foregoing products.
 Truck and Equipment Sales ("TES") Segment
 We offer a broad variety of new equipment for sale to be used across our end-markets, which can be modified to meet our customers' specific needs. We believe that our integrated production capabilities and extensive knowledge gained over a long history of selling equipment have established us as a trusted partner for customers seeking tailored solutions with short lead times. In support of these activities, we primarily employ a direct-to-customer sales model, leveraging our dedicated sales force of industry and product managers, who are focused on driving national and local sales. We also opportunistically engage in the sale of used equipment purchased from third parties or received via trade-ins from new equipment sales customers. In the majority of these cases, we will sell used equipment directly to customers, rather than relying on auctions. Activities in our TES segment consist of the production and sale of new and used specialty equipment and vocational trucks, which includes equipment from leading original equipment manufacturers ("OEMs") across our end-markets, as well as our Load KingTM brand.

 Aftermarket Parts and Services ("APS") Segment
 The APS segment includes the sale of specialized aftermarket parts, including captive parts related to our Load KingTM brand, used in the maintenance and repair of the equipment we sell and rent. Specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, are sold or rented to our customers on an individual basis or in packaged specialty kits. We also provide truck and equipment maintenance and repair services, which are executed throughout our nationwide branch network and fleet of mobile technicians supported by our 24/7 call center based in Kansas City, Missouri.

 Note 2: Summary of Significant Accounting Policies
 Basis of Presentation
 Our accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") and the accounting policies described below. Our consolidated financial statements include the accounts of all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires that these Consolidated Financial Statements and most of the disclosures in these Notes be presented on a historical basis, as of or for the current annual period or prior annual periods. The consolidated financial position and results of operations and cash flows (including segment information) presented herein include those of Custom Truck One Source, Inc. as of December 31, 2023 and since the date of the Acquisition. Financial information presented for periods prior to the Acquisition represent those of Nesco Holdings and its subsidiaries.
 Use of Estimates
 The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
 Recently Adopted Accounting Standards
 Contract Assets and Contract Liabilities from Contracts with Customers
 In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). This ASU improves the comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination and requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The amended guidance specifies for all acquired revenue contracts regardless of their timing of payment (1) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (2) how to measure those contract assets and contract liabilities, thereby providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The ASU was effective as of January 1, 2023. The Company applies the guidance in ASU 2021-08 prospectively to any future business combinations occurring on or after the effective date; however, there were no business combinations during the year ended December 31, 2023.
 Financing Receivables
 In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326) ("ASU 2022-02"), which requires an entity to disclose current period gross write-offs by year of origination for financing receivables and net investment in leases. Gross write-off information must be included in the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. The adoption on January 1, 2023 of the ASU had no impact to the Company's disclosures.
 Recently Issued Accounting Standards
 Income Taxes
 In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes—Improvements to Income Tax Disclosures (Topic 740) ("ASU 2023-09"), which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively, and

 early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures.
 Segment Reporting
 In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures (Topic 280) ("ASU 2023-07"), which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with retrospective application required and early adoption permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures.
 Revenue Recognition
 We recognize revenue in accordance with two different accounting standards: Topic 606, Revenue from contracts with customers ("Topic 606"), and Topic 842, Leases ("Topic 842").
 Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A "performance obligation" is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account under Topic 606. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Our contracts with customers generally do not include multiple performance obligations.
 Rental Revenue – Rental revenue is primarily comprised of revenues from rental agreements and freight charges billed to customers. We also charge customers for damaged equipment, which is assessed and billed at the time a rental asset is returned to the Company and recorded within Parts Sales and Services revenue. We record changes in the estimated collectability of operating lease trade receivables against rental revenue. Our rental contracts are for various types of equipment and tools under 28-day or monthly agreements which include automatic renewal provisions. The majority of our rental payments are due upon receipt, with a majority billed at the end of each 28-day or monthly period. Revenue is recognized ratably over the rental agreement period and in accordance with Topic 842. Unearned revenue is reported in deferred revenue and customer deposits in our consolidated balance sheets. We require our rental customers to maintain liability and property insurance covering the units during the rental term and to indemnify us from losses caused by the negligence of the customer, their employees or contractors during the rental term.
 We also provide rental customers the opportunity to enter into contracts containing a rental purchase option ("RPO"). The RPO allows the customer to earn credit towards the purchase price of the leased equipment. The earned credit is based on rental payments made. Certain leases containing these purchase options are classified as sales-type leases because the RPO purchase price related to the leased equipment is considered to be a "bargain purchase option" in the lease. However, distinguishing a sales-type lease from an operating lease in the Company's portfolio of rental contracts involves assessing whether a customer's exercise of their purchase option meets the reasonably certain criteria of Topic 842. This assessment involves judgments about whether there exists a compelling economic reason for an exercise on the part of the customer, considering factors related to the rental contract itself, the underlying asset, specifics about the customer's financial situation and market conditions related to rentals of similar classes of assets. Revenue on these lease contracts is recognized at the point in time when the Company is reasonably certain that the criteria are met. Revenue from these leases is recorded as equipment sales in the Consolidated Statements of Operations and Comprehensive Income (Loss).
 Equipment Sales – We sell both new and used equipment. There are no rights of return or warranties offered on equipment sales. The contractual sales price for each individual equipment represents the standalone selling price. Our used equipment is of a sufficiently unique nature, based on specific characteristics such as its age and usage, that it does not have an observable standalone selling price. Equipment sales revenue is recognized upon the transfer of control of equipment. Except for equipment sold under bill-and-hold arrangements, control is transferred when title and physical possession of the equipment has transferred to the customer, which is at the point in time of customer pickup or when the equipment is delivered to a specified destination and the Company has a present right to payment. Payment is usually due within 30 days subsequent to transfer of control of the equipment.
 We have bill and hold arrangements with a small number of customers who request to complete the purchase of equipment prior to their ability to take physical possession. In these cases, customers request that we retain physical possession of the equipment until customer pickup or delivery at a later date. Under these arrangements, control is transferred to the customer when the equipment is ready for transfer to the customer, the customer has taken legal title, and the Company has a present right to payment. Under the bill and hold arrangements, which are rare, we recognize sales only when all of the following criteria are met: 1) the customer's reason for the bill-and-hold arrangement is substantive, 2) the equipment is separately identified as belonging to the customer, 3) the equipment is ready for transfer to the customer and 4) we do not have the ability to use the equipment or direct it to another customer.

 Parts Sales and Services – We sell aftermarket parts and services. We derive our services revenue primarily from maintenance, repair and upfit services on heavy-duty trucks and cranes. Revenue from these services includes parts sales needed to complete the service work. We recognize services revenue as the service work is completed. We record revenue on a point in time basis as parts are delivered. The amount of consideration we receive for parts is based upon a list price net of discounts and incentives, and the impact of such variable consideration is factored into the amount of revenue we recognize at any point in time. The amount of consideration received for services is based upon labor hours expended and parts utilized to perform and complete the necessary services for our customers. There are no rights of return or warranties offered on parts sales. Payment is usually due and collected within 30 days subsequent to delivery of parts or performance of service.
 We record sales tax billed to customers and remitted to governmental authorities on a net basis and, consequently, these amounts are excluded from revenues and expenses. Sales taxes are recorded as accrued expenses when billed.
 Shipping and Handling Costs – We classify shipping and handling fees billed to customers related to the placement of rental units as rental revenue in our Consolidated Statements of Operations and Comprehensive Income (Loss). We include the related shipping and handling costs in cost of rental revenue, excluding depreciation, in our Consolidated Statements of Operations and Comprehensive Income (Loss). Shipping and handling fees billed to customers related to the sale of equipment and parts are recorded as equipment sales or parts sales and services revenue, respectively. The related shipping and handling costs are recorded in cost of equipment sales or cost of parts sales and services, respectively.
 Cash and Cash Equivalents
 Cash and cash equivalents consists of cash and short-term investments with remaining maturities of three months or less when acquired. The carrying amount of cash and cash equivalents approximates its fair value. The Company maintains deposits at financial institutions in excess of federally insured limits.
 Trade Receivables and Allowance for Credit Losses
 We are exposed to credit losses from trade receivables generated through our leasing, sales and service businesses. We assess each customer's ability to pay for the products and services by conducting a credit review. The credit review considers expected billing exposure and timing for payment and the customer's established credit rating. We perform a credit review of new customers at inception of the customer relationship and, for existing customers, when the customer transacts new leases or product orders after a period of dormancy. We also consider contract terms and conditions, country risk and business strategy in the evaluation.
 We monitor ongoing credit exposure through an active review of customer balances against contract terms and due dates. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. The allowances for credit losses reflect the estimate of the amount of receivables that management assesses will be unable to be collected based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. This estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease the allowances. We review the adequacy of the allowance on a quarterly basis. The allowance for doubtful accounts is included in accounts receivable, net on our Consolidated Balance Sheets.
 Accounts receivable, net consisted of the following:

 Accounts receivable
 $
 232,592
 $
 212,347

 Less: allowance for doubtful accounts
 ( 17,503)
 ( 19,241)

 Accounts receivable, net
 $
 215,089
 $
 193,106

 The relationship between provision for losses on accounts receivable and allowance for doubtful accounts is presented below:

 2023
 2022
 2021

 Allowance - beginning of period
 $
 19,241
 $
 10,820
 $
 6,372

 Provision for losses on accounts receivable
 8,585
 12,650
 11,103

 Accounts written off during period, net of recoveries
 ( 10,323)
 ( 4,229)
 ( 6,655)

 Allowance - end of period
 $
 17,503
 $
 19,241
 $
 10,820

 Specifically identifiable lease revenue receivables not deemed probable of collection are recorded as a reduction of rental revenue. The remaining provision for credit losses, which relates to product sales and services, is recorded in selling, general and administrative expense.
 Inventory
 Inventory is carried at the lower of cost or net realizable value. The Company periodically reviews inventories on hand and maintains reserves for slow-moving, excess, or obsolete inventories.
 Whole goods inventory is comprised of chassis, attachments (i.e., boom cranes, aerial lifts, digger derricks, dump bodies, etc.), and the in-process costs incurred in the final assembly of those units. As part of our business model, we sell unassembled individual whole goods and whole goods with varying levels of customization direct to consumers or dealers. Whole goods inventory also includes new equipment purchased specifically for resale to customers, which purchases are recorded directly to inventory when received. Cost is determined by specific identification for whole goods inventory. Aftermarket parts and services inventories are recorded at weighted average cost.
 Rental Equipment and Property and Equipment
 Rental Equipment
 Rental equipment is primarily comprised of the cost of truck-mounted aerial lifts, cranes, trucks, trailers, digger derricks, line equipment, cranes, pressure diggers, underground and other machinery and equipment. The rental equipment we purchase is recorded at cost and depreciated over the estimated rentable life of the equipment using the straight-line method over useful lives, depending on product categories, ranging from 1 to 7 years, to an estimated residual value, depending on product categories, ranging from 0 % to 35 % of cost. Depreciation of rental equipment commences when a rental unit is placed into the rental fleet and becomes available to rent and the cost is depreciated whether or not the equipment is on rent. We reevaluate the estimated rentable life as rental equipment is purchased, estimating the period that the asset will be held, considering factors such as historical rental activity and expectations of future rental activity. We also reevaluate the estimated residual values of the applicable rental equipment. The residual value of equipment is affected by factors that include equipment age, amount of usage and market conditions. Market conditions for used equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices, supply of similar used equipment, the market price for similar new equipment, and incentives offered by manufacturers of new equipment. These factors are considered when estimating future residual values and depreciation periods.
 Expenditures for repair and maintenance that extend the useful life of the equipment and are necessary to keep an equipment unit in rentable condition are capitalized and depreciated over the estimated remaining useful life of the equipment, which is the period the repair and maintenance is expected to provide future economic benefit. When making repairs, we dispose of damaged and replaced components at their net carrying values. The cost of routine and recurring maintenance activities related to the rental fleet are charged to expense as incurred.
 Property and Equipment
 Property and equipment is primarily comprised of land, buildings and improvements, machinery and equipment, and vehicles and is carried at cost, net of accumulated depreciation. Depreciation is provided using the straight-line method based on useful lives ranging from three to 39.5 years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Leasehold improvements are depreciated over the lesser of the improvement's useful life or the remaining lease term.
 Leases as Lessee
 We determine if an arrangement is a lease at inception of an arrangement. Operating and finance lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company's right to use an underlying asset for the lease term, while lease liabilities represent the Company's obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the lease commencement date, in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise those options. The Company does not recognize lease assets or liabilities for leases with a term of 12 months or less, and it recognizes these lease payments as lease cost on a straight-line basis over the lease term. We do not separate lease and non-lease components. The Company applies a portfolio approach to determine the discount rate for leases with similar characteristics.

 For our leases classified as operating, the ROU asset is measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial direct costs, plus/(minus) any unamortized prepaid/(accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
 For our leases classified as finance leases, the ROU asset is amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company, or the Company is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful life of the underlying asset. Rental assets leased under the finance leases are included in rental equipment and property and equipment, and depreciation thereon is recognized in depreciation of rental equipment, cost of revenue and non-rental depreciation expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). When we make our contractually required payments under finance leases, we allocate a portion to reduce the finance lease obligation and a portion is recognized as interest expense.
 Goodwill
 We recognize goodwill when the purchase price of an acquired business exceeds the fair value of net assets acquired. Goodwill is not amortized for financial reporting purposes. Goodwill is impaired when its carrying value exceeds its implied fair value. We perform our goodwill impairment analysis annually on October 1 or more frequently if an event or circumstance (such as a significant adverse change in the business climate, operating performance metrics, or legal factors) indicates that an impairment may have occurred. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, then there is an indication impairment may exist.
 Recognized goodwill from a business combination is assigned to our reporting units using an income approach based on the present value of estimated future cash flows. We estimate the fair value of our reporting units using both an income approach based on the present value of estimated future cash flows and a market approach based on traded values of selected companies. We believe this combined approach yields the most appropriate determination of fair value. Determining the fair value of our reporting units is judgmental and involves the use of significant estimates and assumptions. We base our fair value estimates on assumptions that we believe are reasonable. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for our reporting units.
 The Company performed a qualitative impairment test (the "Step 0 test") on October 1, 2023 to evaluate the fair value of its three reporting units with respect to their carrying amounts as of the annual assessment date. Goodwill is tested for impairment at the reporting unit level, which the Company has determined to be the same as its reportable segments (ERS, TES, and APS). The impairment assessments may include, but are not limited to, reviewing factors such as macroeconomic conditions, industry and market considerations, cost factors, financial performance and other entity or reporting unit specific events. When performing a Step 0 test, if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then perform the Step 1 test by comparing the carrying amount to the estimated fair value of the reporting unit.
 We performed the Step 0 test for each of our reporting units and supplemented the analysis by performing a quantitative "Step 1 test" specific to the ERS and APS reporting units as of October 1, 2023. In performing the supplemental Step 1 test in 2023 related to the ERS and APS reporting units, we estimated the fair value of each reporting unit using the income approach. The income approach utilizes assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. The estimates of future cash flow require the Company to establish expectations about customer demand, investments in maintaining or expanding infrastructure for the markets that the reporting unit serves, and the supply and capacity of equipment in the rental market, among others. Significant management judgment is involved in estimating these factors, and they include inherent uncertainties, which fall under Level 3 within the fair value measurement hierarchy (refer to Fair Value Measurements within this Note).
 As a result of our analyses, the Company determined that there was no impairment of goodwill.
 See Note 11: Goodwill and Intangible Assets for additional information.
 Impairment of Long-Lived Assets, including Intangible Assets
 We evaluate the carrying value of long-lived assets held for use, including rental equipment and definite-lived intangible assets, for impairment whenever an event or circumstance has occurred (such as a significant adverse change in the business climate, operating performance metrics, or legal factors) which suggests that the carrying value may not be recoverable. Impairment of a long-lived asset held for use (or relative asset group, if applicable) is measured when the anticipated separately identifiable undiscounted cash flows from the asset are less than the carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value. Fair value is determined primarily using anticipated cash flows discounted at a rate commensurate with the risk involved.

 Other intangible assets consist of customer relationships, non-compete agreements and trade names. We amortize intangible assets with finite lives over the period the economic benefits are estimated to be consumed. Definite lived intangibles are amortized using the straight-line method over their useful life, as we believe this method best matches the pattern of economic benefit. See Note 11: Goodwill and Intangible Assets for additional information.
 Fair Value Measurements
 Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets and liabilities. These inputs can be readily observable, market corroborated, or generally unobservable.
 Fair Value Hierarchy - In measuring fair value, we use observable market data when available and minimize the use of unobservable inputs. Unobservable inputs may be required to value certain financial instruments due to complexities in contract terms. Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes. The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are:
 Level 1 - Inputs that reflect unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur with both sufficient frequency and volume to provide pricing information on an ongoing basis.
 Level 2 - Inputs that reflect quoted prices for similar assets and liabilities are available in active markets, and inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.
 Level 3 - Inputs that are generally less observable or from unobservable sources in which there is little or no market data. These inputs may be used with internally developed methodologies that result in our best estimate of fair value.
 Valuation Techniques - Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques:
 Market approach - Technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
 Income approach - Technique that converts future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing, and excess earnings models).
 Cost approach - Technique that estimates the amount that would be required to replace the service capacity of an asset (i.e., replacement cost).
 Assets and Liabilities with Recurring Fair Value Measurements - Certain assets and liabilities may be measured at fair value on an ongoing basis. We did not elect to apply the fair value option for recording financial assets and financial liabilities. Other than the warrants liability and an interest rate collar (which was settled in February 2022), we do not have any assets or liabilities which we measure at fair value on a recurring basis.
 Assets and Liabilities with Nonrecurring Fair Value Measurements - Certain assets and liabilities are not measured at fair value on an ongoing basis. These assets and liabilities, which include long-lived assets, goodwill, and intangible assets, are subject to fair value adjustment in certain circumstances. From time to time, the fair value is determined on these assets as part of related impairment tests. For certain assets and liabilities acquired in business combinations, we record the fair value as of the acquisition date. Refer to Note 3: Business Combinations, for the fair values of assets acquired and liabilities assumed in connection with our business combinations. Other than acquisition adjustments, no adjustments to fair value or fair value measurements were required for non-financial assets and liabilities for all periods presented. See Note 11: Goodwill and Intangible Assets and Note 15: Fair Value Measurements for additional information.
 Deferred Financing Costs
 Direct costs incurred in connection with the issuance, and amendments thereto, of our debt are capitalized and amortized over the terms of the respective agreements using the effective interest method, or the straight-line method when not materially different than the effective interest method. The net carrying value of deferred financing costs are classified as a reduction to long-term debt in the

 Consolidated Balance Sheets (see Note 9: Long-Term Debt). The amortization is included in interest expense on our Consolidated Statements of Operations and Comprehensive Income (Loss).
 Accrued Expenses
 Accrued expenses consisted of the following:

 Accrued interest
 $
 16,891
 $
 14,097

 Accrued salaries, wages and benefits
 41,667
 39,653

 Accrued sales taxes
 8,834
 8,533

 Other
 6,455
 6,501

 Total accrued expenses
 $
 73,847
 $
 68,784

 Cloud Computing Arrangement Implementation Costs
 The Company has entered into certain cloud-based hosting agreements that are accounted for as service contracts. For internal-use software obtained through a hosting arrangement that is a service contract, the Company capitalizes certain implementation costs, such as costs incurred to integrate, configure, and customize internal-use software, which are consistent with costs incurred during the application development stage for on-premises software. These capitalized development costs are recorded in other assets on our Consolidated Balance Sheets. Capitalized implementation costs are amortized straight-line over the term of the hosting arrangement plus any reasonably certain renewal periods, which together ranges from three years to 10 years.
 Cloud computing arrangements, net included in other assets in the Consolidated Balance Sheets consisted of the following:

 Cloud computing arrangements
 $
 37,916
 $
 34,587

 Less: accumulated amortization
 ( 16,058)
 ( 9,703)

 Cloud computing arrangements, net
 $
 21,858
 $
 24,884

 Amortization expense for these assets is included in selling, general, and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). For the years ended December 31, 2023, 2022, and 2021, amortization expense was $ 6.4 million, $ 4.3 million and $ 2.5 million, respectively.
 Advertising Costs
 We promote our business through various industries media channels, and expense advertising costs as incurred to selling, general, and administrative expenses. For the years ended December 31, 2023, 2022, and 2021, advertising costs were approximately $ 3.3 million, $ 3.1 million and $ 4.8 million, respectively.
 Share-Based Compensation
 The fair value of equity-classified awards is determined at the grant date using techniques appropriate for the awards, which we use to determine compensation expense over the service period. We recognize compensation expense for our share-based payments over the requisite service period for the entire award and forfeitures are recognized as they occur. See Note 14: Share-Based Compensation for additional information.
 Income Taxes
 We utilize the asset and liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between financial accounting and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are expected to reverse. Recognition of deferred tax assets is limited to amounts considered by management to be more-likely-than-not to be realized in future periods. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. The effect on net deferred tax assets and liabilities resulting from a change in tax rates is recognized as income or expense in the period that the change in tax rates is enacted.
 We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments are applied in the calculation of the deferred income tax expense or benefit associated with certain deferred tax assets and liabilities. Significant changes to these estimates may result in an increase or decrease to our tax provision in a subsequent period.

 Our income tax returns are subject to examination by federal, state and foreign tax authorities. There may be differing interpretations of tax laws and regulations, and as a result, disputes may arise with these tax authorities involving the timing and amount of deductions and allocation of income. With the exception of net operating loss carryforwards, we are generally no longer subject to federal, state, local, and foreign income tax examinations by tax authorities for years ending on or prior to December 31, 2019.
 We recognize uncertain income tax positions if it is more-likely-than-not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. Our determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. Unrecognized tax benefits are tax benefits claimed in our tax returns that do not meet recognition and measurement standards. Our policy is to record interest and penalties related to unrecognized tax benefits in income tax expense (benefit) on our Consolidated Statements of Operations and Comprehensive Income (Loss). As of December 31, 2023 and 2022, our uncertain income tax positions, unrecognized tax benefits, and accrued interest were not material.
 Acquisition Accounting
 We have made acquisitions in the past and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of our acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, royalty rates, customer attrition rates, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows.
 Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. The judgments made in determining the estimated fair value assigned to the assets acquired, as well as the estimated life of the assets, can materially impact net income (loss) in periods subsequent to the acquisition because of depreciation and amortization, and in certain instances through impairment charges if the asset becomes impaired in the future. As discussed above, we regularly review long-lived assets for impairments.
 When we make an acquisition, we also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these other assets and liabilities generally approximate the carrying values on the acquired entities' balance sheets.

 Note 3: Business Combinations
 Acquisition of Custom Truck One Source, L.P.
 On December 3, 2020, Nesco Holdings and Nesco Holdings II, Inc., a subsidiary of Nesco Holdings (the "Buyer" or the "Issuer"), entered into a Purchase and Sale Agreement (as amended, the "Purchase Agreement") with certain affiliates of The Blackstone Group ("Blackstone") and other direct and indirect equity holders (collectively, "Sellers") of Custom Truck One Source, L.P., Blackstone Capital Partners VI-NQ L.P., and PE One Source Holdings, LLC, an affiliate of Platinum Equity, LLC ("Platinum"), pursuant to which Buyer agreed to acquire 100 % of the partnership interests of Custom Truck LP. In connection with the Acquisition, Nesco Holdings and certain Sellers entered into Rollover and Contribution Agreements (the "Rollover Agreements"), pursuant to which such Sellers agreed to contribute a portion of their equity interests in Custom Truck LP (the "Rollovers") with an aggregate value of $ 100.5 million in exchange for shares of Common Stock, valued at $ 5.00 per share. We believe the Acquisition creates a leading, one-stop shop for specialty equipment, serving highly attractive and growing infrastructure end-markets, including transmission and distribution, telecom, rail and other national infrastructure initiatives.
 Also on December 3, 2020, Nesco Holdings entered into a Common Stock Purchase Agreement (the "Investment Agreement") with Platinum, relating to, among other things, the issuance and sale to Platinum (the "Subscription") of shares of Common Stock, for an aggregate purchase price in the range of $ 700 million to $ 763 million, with the specific amount calculated in accordance with the

 Investment Agreement based upon the total equity funding required to fund the consideration paid pursuant to the terms of the Purchase Agreement. The shares of Common Stock issued and sold to Platinum had a purchase price of $ 5.00 per share. In accordance with the Investment Agreement, on December 21, 2020, Nesco Holdings entered into Subscription Agreements (the "Subscription Agreements") with certain investors (the "PIPE Investors") to finance, in part, the Acquisition. Pursuant to the Subscription Agreements, concurrently with the closing of the transactions contemplated by the Investment Agreement, the PIPE Investors agreed to purchase an aggregate of 28,000,000 shares of Common Stock at $ 5.00 per share for an aggregate purchase price of $ 140 million (the "Supplemental Equity Financing").
 On April 1, 2021 (the "Closing Date"), in connection with (i) the Rollovers, the Company issued, in the aggregate, 20,100,000 shares of Common Stock to the parties to the Rollover Agreements, (ii) the Subscription, the Company issued 148,600,000 shares of Common Stock to Platinum, and (iii) the Supplemental Equity Financing, the Company issued, in the aggregate, 28,000,000 shares of Common Stock to the PIPE Investors.
 Purchase Price
 The Company issued 20,100,000 shares of Common Stock to Custom Truck LP equity interest holders, as well as paid cash and repaid debt obligations as consideration for the Acquisition. The trading price of the Common Stock was $ 9.35 per share on the Closing Date. The purchase price has been determined to be as follows:

 (in $000s, except share and per share data)

 Common stock issued
 20,100,000

 Common stock per share price as of April 1, 2021
 $
 9.35

 Fair value of common stock issued
 $
 187,935

 Cash consideration paid to equity interest holders
 790,324

 Repayment of debt obligations
 552,600

 Total purchase price
 $
 1,530,859

 During the year ended December 31, 2021, the Company transferred an additional $ 3.4 million of cash consideration to the Sellers related to certain customary closing adjustments set forth in the Purchase Agreement.
 Custom Truck LP generated $ 923.8 million of revenue and $ 28.2 million of pre-tax loss subsequent to the Closing Date for the year ended December 31, 2021, which was included in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2021.
 Financing Transactions
 On the Closing Date, the Issuer issued $ 920 million in aggregate principal amount of 5.50 % senior secured second lien notes due 2029 (the "2029 Secured Notes"). The 2029 Secured Notes were issued pursuant to an indenture, dated as of April 1, 2021, by and among the Issuer, Wilmington Trust, National Association, as trustee, and the guarantors party thereto (the "Indenture"). The Issuer pays interest on the Notes semi-annually in arrears on April 15 and October 15 of each year, which commenced on October 15, 2021. Unless earlier redeemed, the 2029 Secured Notes will mature on April 15, 2029. The notes were offered pursuant to a private placement exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside of the United States in reliance on Regulation S under the Securities Act. The proceeds from the issuance and sale of the 2029 Secured Notes were used to consummate the Acquisition and to repay the Senior Secured Notes due 2024 previously issued by Nesco Holdings, repay certain indebtedness of Custom Truck LP and pay certain fees and expenses related to the Acquisition and financing transactions.
 Also on the Closing Date, the Buyer, its direct parent, and certain of its direct and indirect subsidiaries entered into a senior secured asset-based revolving credit agreement (the "ABL Credit Agreement") with Bank of America, N.A., as administrative agent and collateral agent, and certain other lenders party thereto, consisting of a $ 750.0 million first lien senior secured asset-based revolving credit facility with a maturity of five years (the "ABL Facility"), which includes borrowing capacity for revolving loans (with a swingline sub-facility) and the issuance of letters of credit. Proceeds from the ABL Facility were used to finance the repayment of certain indebtedness of (i) Custom Truck LP under that certain Credit Agreement, dated as of April 18, 2017 (the "Custom Truck LP Credit Facility"), by and among Custom Truck LP, the other entities party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent, and (ii) Buyer under that certain Credit Agreement, dated as of July 31, 2019 (the "2019 Credit Facility"), by and among Capitol Investment Merger Sub 2, LLC, the other entities party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as well as to pay fees and expenses related to the Acquisition and the financing transactions.

 Pro Forma Information
 The below pro forma information is presented for the year ended December 31, 2021 and uses the estimated fair value of assets and liabilities on the Closing Date, and makes the following assumptions: (1) removes acquisition-related costs and charges that were recognized in the Company's consolidated financial statements in the year ended December 31, 2021, as if the Acquisition and related financing transactions had occurred on January 1, 2020; (2) removes the loss on the extinguishment of debt that was recognized in the Company's consolidated financial statements in the year ended December 31, 2021, as if the debt extinguishment giving rise to the loss had occurred on January 1, 2020; (3) adjusts for the impacts of purchase accounting in the years ended December 31, 2021; (4) adjusts interest expense, including amortization of debt issuance costs, to reflect borrowings on the ABL Facility and issuance of the 2029 Secured Notes, as if the funds had been borrowed and the notes had been issued on January 1, 2020 and used to repay Nesco's 2019 Credit Facility, Nesco's Senior Secured Notes due 2024 (both as defined in Note 9: Long-Term Debt) and the Custom Truck LP Credit Facility and term loan; and (5) adjusts for the income tax effect using a tax rate of 25 %. The pro forma information is not necessarily indicative of the Company's results of operations had the Acquisition been completed on January 1, 2020, nor is it necessarily indicative of the Company's future results. The pro forma information does not reflect any cost savings from operating efficiencies, synergies, or revenue opportunities that could result from the Acquisition.

 2021

 Revenue
 $
 1,483,625

 Net loss
 $
 ( 90,521)

 The following presents a summary of the pro forma adjustments that are directly attributable to the business combination:

 2021

 Increase (decrease) net income/loss:

 Impact of fair value mark-ups on inventory
 a
 $
 19,186

 Impact of fair value mark-ups on rental fleet depreciation
 b
 ( 3,817)

 Intangible asset amortization and other depreciation expense
 c
 ( 3,376)

 Transaction expenses
 d
 40,277

 Interest expense and amortization of debt issuance costs
 e
 3,919

 Loss on extinguishment of debt refinanced
 f
 61,695

 Income tax benefit
 g
 ( 29,471)

 a. Represents adjustments to cost of revenue for the run-off of the mark-up in fair value of inventory acquired and applied to the year ended December 31, 2020.
 b. Represents the adjustment for depreciation of rental fleet relating to the estimated increase in the value of the rental fleet to its fair value.
 c. Represents the differential in amortization and depreciation of non-rental equipment related to the respective fair values of the assets.
 d. Represents adjustments for transaction expenses that are applied to the year ended December 31, 2020.
 e. Reflects the differential in interest expense, inclusive of amortization of capitalized debt issuance costs, related to our debt structure after the Acquisition as though the following had occurred on January 1, 2020: (i) borrowings under the ABL Facility; (ii) repayment of the 2019 Credit Facility; (iii) repayment of the Senior Secured Notes due 2024; (iv) repayment of the Custom Truck LP's borrowings under its revolving credit and term loan facility; and (v) the issuance of the 2029 Secured Notes.
 f. Represents the adjustment of the loss on extinguishment of debt applied to the year ended December 31, 2020 as though the repayment of the 2019 Credit Facility and Senior Secured Notes due 2024 had occurred on January 1, 2020.
 g. Reflects the adjustment to recognize the tax impacts of the pro forma adjustments for which a tax expense is recognized using a statutory tax rate of 25 %. This rate may vary from the actual effective rate of the historical and combined businesses.
 Transaction Costs
 The Company expensed approximately $ 51.8 million in transaction and post-acquisition integration costs related to the Acquisition within transaction expenses and other in the year ended December 31, 2021.
 Acquisition of HiRail
 On January 14, 2022, a subsidiary of the Company, CTOS Canada, Ltd., closed a Share Purchase Agreement with certain affiliates of Ontario Limited (d/b/a HiRail Leasing), Ontario Inc. (d/b/a Heavy Equipment Repairs), and Ontario Limited (d/b/a Northshore Rail Contracting) (collectively "HiRail") to acquire 100 % of the equity interests of HiRail. The acquisition of HiRail expands our presence

 in our strategic markets and deepens our relationships with key customers. HiRail, including the assignment of purchase accounting goodwill (see below), is included in the Company's ERS segment.
 Purchase Price
 The Company paid $ 51.0 million, net of working capital adjustments, to HiRail equity interest holders and to repay debt obligations as consideration for the HiRail acquisition.
 Opening Balance Sheet
 The acquisition of HiRail has been accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the Company was required to assign the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values as of January 14, 2022. The excess of the purchase price over those fair values was recorded as goodwill and was attributable to expanded access to markets for the Company's product and service offering, synergies, and broader product offerings to existing customers of HiRail. The total purchase price has been assigned to the underlying assets acquired and liabilities assumed based upon their fair values as of January 14, 2022, and the estimated fair values have been recorded based on independent valuations, discounted cash flow analysis, quoted market prices, contributory asset charges, and estimates made by management, which estimates fall under "Level 3" of the fair value hierarchy (as defined in Note 15: Fair Value Measurements).
 The following table summarizes the January 14, 2022 fair values of the assets acquired and liabilities assumed. The final assessment of the fair value of the HiRail assets acquired and liabilities assumed was complete as of December 31, 2022.

 January 14, 2022
 Changes

 Current assets
 $
 2,891
 $
 $
 3,847

 Property, equipment and other assets
 —

 Rental equipment
 34,224
 —
 34,224

 Total identifiable assets acquired
 37,934
 38,890

 Total identifiable liabilities assumed
 ( 6,011)
 ( 1,596)
 ( 7,607)

 Total net assets
 31,923
 ( 640)
 31,283

 Goodwill
 8,685
 ( 41)
 8,644

 Intangible assets
 11,027
 —
 11,027

 Net assets acquired (purchase price)
 51,635
 ( 681)
 50,954

 Less: cash acquired
 ( 1,122)
 —
 ( 1,122)

 Net cash paid
 $
 50,513
 $
 ( 681)
 $
 49,832

 HiRail generated $ 16.9 million of revenue and $ 2.6 million of pre-tax income subsequent to January 14, 2022 for the year ended December 31, 2022, which was included in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2022. Costs and expenses related to the acquisition were expensed as incurred and were not material. Additionally, pro forma information as if the acquisition of HiRail had occurred on January 1, 2021 is not being presented as the information is not considered material to our consolidated financial statements.

 Note 4: Revenue
 Revenue Disaggregation
 Geographic Areas
 The Company had total revenue in the following geographic areas:

 2023
 2022
 2021

 United States
 $
 1,816,471
 $
 1,529,165
 $
 1,148,683

 Canada
 48,629
 43,921
 18,471

 Total Revenue
 $
 $
 $
 1,167,154

 Major Product Lines and Services
 Equipment leasing and equipment sales are the core businesses of the Company, with leasing complemented by the sale of rental units from the rental fleet. The Company's revenue by major product and service line are presented in the tables below.

 2023
 2022
 2021

 Topic 842
 Topic 606
 Total
 Topic 842
 Topic 606
 Total
 Topic 842
 Topic 606
 Total

 Rental:

 Rental
 $
 453,696
 $
 —
 $
 453,696
 $
 444,155
 $
 —
 $
 444,155
 $
 355,658
 $
 —
 $
 355,658

 Shipping and handling
 —
 25,214
 25,214
 —
 19,884
 19,884
 —
 14,409
 14,409

 Total rental revenue
 453,696
 25,214
 478,910
 444,155
 19,884
 464,039
 355,658
 14,409
 370,067

 Sales and services:

 58,064
 1,195,389
 1,253,453
 30,547
 951,794
 982,341
 16,274
 679,060
 695,334

 Parts and services
 22,124
 110,613
 13,402
 113,304
 6,726
 95,027
 101,753

 Total sales and services
 80,188
 1,306,002
 1,386,190
 43,949
 1,065,098
 1,109,047
 23,000
 774,087
 797,087

 $
 533,884
 $
 1,331,216
 $
 $
 488,104
 $
 1,084,982
 $
 $
 378,658
 $
 788,496
 $
 1,167,154

 Rental revenue is primarily comprised of revenues from rental agreements and freight charges billed to customers. Equipment sales recognized pursuant to sales-type leases are recorded within equipment sales revenue. Charges to customers for damaged rental equipment are recorded within parts and services revenue. Parts and services revenue includes $ 30.0 million, $ 26.1 million and $ 21.5 million related to services provided to customers for the years ended December 31, 2023, 2022, and 2021, respectively.
 Receivables, Contract Assets and Liabilities
 As of December 31, 2023 and 2022, the Company had receivables related to contracts with customers of $ 112.1 million and $ 98.0 million, respectively. As of December 31, 2023 and 2022, the Company had receivables related to rental contracts and other of $ 103.0 million and $ 95.1 million, respectively.
 The Company manages credit risk associated with its accounts receivable at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and the Company's allowance for credit losses address the Company's total revenues. Concentration of credit risk with respect to the Company's receivables is limited because of a large number of geographically diverse customers who operate in a variety of end user markets. The Company manages credit risk through credit approvals, credit limits, and other monitoring procedures.
 The Company's allowance for credit losses reflects its estimate of the amount of receivables that it will be unable to collect. The estimated losses are based upon a review of outstanding receivables, the related aging, including specific accounts if deemed necessary, and on the Company's historical collection experience. The estimated losses are calculated using the loss rate method based upon a review of outstanding receivables, related aging, and historical collection experience. The Company's estimates reflect changing circumstances, including changes in the economy or in the particular circumstances of individual customers, and, as a result, the Company may be required to increase or decrease its allowance. See Note 2: Summary of Significant Accounting Policies for further information regarding allowance for credit losses.
 When customers are billed for rentals in advance of the rental period, the Company defers recognition of revenue. As of December 31, 2023 and 2022, the Company had approximately $ 2.9 million and $ 3.0 million, respectively, of deferred rental revenue. Additionally, the Company collects deposits from customers for orders placed for equipment and rentals. The Company had approximately $ 25.9 million and $ 29.6 million in deposits as of December 31, 2023 and 2022, respectively. Of the $ 29.6 million deposit liability balance as of December 31, 2022, $ 29.5 million was recorded as revenue during the year ended December 31, 2023 due to performance obligations being satisfied. The Company's remaining performance obligations on its equipment deposit liabilities have original expected durations of one year or less.
 The Company does not have material contract assets, and it did not recognize any material impairments of any contract assets.
 The primary costs to obtain contracts for new and rental unit sales with the Company's customers are commissions. The Company pays its sales force commissions related to the sale and rental of new and used units. For new unit and rental unit sales, the period benefited by each commission is less than one year. As a result, the Company expenses commissions as incurred.

 Note 5: Sales-Type Leases
 Revenue from rental agreements qualifying as sales-type leases was as follows:

 2023
 2022

 $
 58,064
 $
 41,525

 55,716
 37,582

 $
 2,348
 $
 3,943

 As these transactions remained under rental contracts, $ 28.9 million and $ 21.3 million for the years ended December 31, 2023 and 2022, respectively, were billed under the contracts as rentals. Interest income from financing receivables was $ 16.1 million and $ 12.1 million for the years ended December 31, 2023 and 2022, respectively.
 The Company's financing receivables are related to sales-type leases and are collateralized by a security interest in the underlying equipment. As of December 31, 2023 and 2022 financing receivables, net of unearned income of $ 0.7 million and $ 0.7 million, were $ 30.8 million and $ 38.3 million, respectively.

 Note 6: Inventory
 Inventory consisted of the following:

 Whole goods
 $
 846,170
 $
 468,557

 Aftermarket parts and services inventory
 139,624
 128,167

 Inventory
 $
 985,794
 $
 596,724

 Note 7: Floor Plan Financing
 Floor plan payables represent financing arrangements to facilitate the Company's purchase of new and used trucks, cranes, and construction equipment inventory. All floor plan payables are collateralized by the inventory financed. These payables become due and payable upon the sale, transfer, or reclassification of each unit of inventory. Certain floor plan arrangements require the Company to satisfy various financial ratios consistent with those under the ABL Facility. See Note 9: Long-Term Debt. As of December 31, 2023, the Company was in compliance with these covenants.
 The amounts owed under floor plan payables are summarized as follows:

 Trade:

 Daimler Truck Financial
 $
 181,480
 $
 105,447

 PACCAR Financial Services
 71,717
 31,187

 Trade floor plan payables
 $
 253,197
 $
 136,634

 Non-trade:

 PNC Equipment Finance, LLC
 $
 409,113
 $
 293,536

 Non-trade floor plan payables
 $
 409,113
 $
 293,536

 Interest on outstanding floor plan payable balances is due and payable monthly. Floor plan interest expense was $ 36.6 million, $ 12.6 million and $ 5.2 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 Trade Floor Plan Financing:
 Daimler Truck Financial
 The Company is party to the Wholesale Financing Agreement with Daimler Truck Financial (the "Daimler Facility") which bears interest at a rate of the Prime plus 0.80 % after an initial interest free period of up to 150 days. The total borrowing capacity under the Daimler Facility is $ 175.0 million, however, from time to time, Daimler extends credit to the Company in excess of this amount. The Daimler agreement is evergreen and is subject to termination by either party through written notice.
 PACCAR
 The Company has an Inventory Financing Agreement with PACCAR Financial Corp that provides the Company with a line of credit of $ 125.0 million to finance inventory purchases of new Peterbilt and/or Kenworth trucks, tractors, and chassis. Amounts borrowed against this line of credit incur interest at a rate of the U.S. Prime Rate minus 0.71 %. The PACCAR agreement extends automatically each April and is subject to termination by either party through written notice.
 References to the Prime Rate in the foregoing agreements represent the rate as published in The Wall Street Journal.
 Non-Trade Floor Plan Financing:
 PNC Equipment Finance, LLC
 The Company has an Inventory Loan, Guaranty and Security Agreement (the "Loan Agreement") with PNC Equipment Finance, LLC. On August 25, 2023, the Company renewed the Loan Agreement by an additional two years. As of December 31, 2023, the Loan Agreement provided the Company with a $ 410.0 million revolving credit facility, which matures on August 25, 2025 and bears interest at a three-month term secured overnight financing rate ("SOFR") plus 3.00 %. During January 2024, the Company entered into an amendment to the Loan Agreement which increased the revolving credit facility to $ 425.0 million and entered into another amendment in February 2024 that increased the revolving credit facility to $ 460.0 million.

 Note 8: Rental Equipment and Property and Equipment
 Rental equipment, net consisted of the following:

 Rental equipment
 $
 1,405,532
 $
 1,360,205

 Less: accumulated depreciation
 ( 488,828)
 ( 476,531)

 Rental equipment, net
 $
 916,704
 $
 883,674

 Property and equipment, net consisted of the following:

 Buildings and leasehold improvements
 $
 65,374
 $
 65,660

 Vehicles
 32,354
 29,184

 Land and improvements
 26,382
 25,773

 Machinery and equipment
 27,855
 22,224

 Furniture and fixtures
 3,386
 6,321

 Construction in progress
 27,581
 2,981

 Total property and equipment
 182,932
 152,143

 Accumulated depreciation
 ( 40,817)
 ( 30,187)

 Property and equipment, net
 $
 142,115
 $
 121,956

 Note 9: Long-Term Debt
 Debt obligations and associated interest rates consisted of the following:

 ABL Facility
 $
 552,400
 $
 437,731
 7.7 %
 6.1 %

 2029 Secured Notes
 5.5 %
 5.5 %

 2023 Credit Facility
 13,800
 —
 5.8 %
 —

 Notes payable
 31,599
 31,661
 3.1 %- 7.9 %

 3.1 %- 5.0 %

 Total debt outstanding
 1,517,799
 1,389,392

 Deferred financing fees
 ( 22,406)
 ( 27,686)

 Total debt excluding deferred financing fees
 1,495,393
 1,361,706

 Less: current maturities
 ( 8,257)
 ( 6,940)

 Long-term debt
 $
 1,487,136
 $
 1,354,766

 In connection with the Acquisition and related financing transactions, on April 1, 2021, the Company entered into the ABL Facility and repaid the Custom Truck LP Credit Facility and Nesco's 2019 Credit Facility as described in Note 3: Business Combinations. Additionally, on April 1, 2021, the Company redeemed all of Nesco's Senior Secured Notes due 2024 and paid a make-whole premium. The terms of the ABL Facility and 2029 Secured Notes are described below. The financing transactions related to the Acquisition resulted in the recognition of a loss on the extinguishment of debt in the year ended December 31, 2021, comprised of (i) the elimination of unamortized deferred financing fees related to the 2019 Credit Facility and the Senior Secured Notes due 2024 of $ 8.2 million and, (ii) the payment of the make-whole premium to holders of the Senior Secured Notes due 2024 of $ 38.5 million. Additionally, prior to the consummation of the Acquisition, on December 3, 2020, the Company entered into a bridge financing commitment that was available to be used to provide a portion of the financing necessary to fund the consideration to be paid pursuant to the terms of the Acquisition. Because the Company entered into the ABL Facility and issued the 2029 Secured Notes, financing under the bridge facility was not used; however, on the Closing Date, the Company paid $ 15.0 million in fees to the bridge financing parties, which fees are included in loss on extinguishment of debt, in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2021.
 ABL Facility
 In connection with the Acquisition, Buyer, as borrower, and the ABL Guarantors (as defined in the ABL Credit Agreement) entered into the ABL Credit Agreement. The ABL Facility provides for revolving loans, in an amount equal to the lesser of the then-current borrowing base (described below) and the committed maximum borrowing capacity of $ 750.0 million, with a $ 75.0 million swingline sublimit, and letters of credit in an amount equal to the lesser of (a) $ 50.0 million and (b) the aggregate unused amount of commitments under the ABL Facility then in effect. The ABL Facility permits the Buyer to incur additional capacity under the ABL Facility in an aggregate amount equal to the greater of (x) $ 200.0 million and (y) 60.0 % of Consolidated EBITDA (as defined in the ABL Credit Agreement) in additional commitments. As of the Closing Date, Buyer had no commitments from any lender to provide incremental commitments.
 Borrowings under the ABL Facility are limited by a borrowing base calculation based on the sum of, without duplication:
 (a) 90.0 % of book value of eligible accounts of Buyer and certain ABL Guarantors; plus
 (b) the lesser of (i) 75.0 % of book value of eligible parts inventory of Buyer and certain ABL Guarantors (subject to certain exceptions) and (ii) 90.0 % of the net orderly liquidation value of eligible parts inventory of Buyer and certain ABL Guarantors; plus
 (c) the sum of (i) 95.0 % of the net book value of the eligible fleet inventory of Buyer and certain ABL Guarantors that has not been appraised and (ii) 85.0 % of the net orderly liquidation value of the eligible fleet inventory of Buyer and certain ABL Guarantors that has been appraised; plus
 (d) 100.0 % of eligible cash of Buyer and certain ABL Guarantors; minus
 (e) any reserves established by the administrative agent from time to time.
 As of December 31, 2023, borrowing availability under the ABL Facility was $ 194.5 million, and outstanding standby letters of credit were $ 3.1 million. On March 27, 2023, the ABL Facility was amended to change the London Interbank Offered Rate ("LIBOR") rate to the SOFR rate. Borrowings under the ABL Facility bears interest at a floating rate, which, at Buyer's election, could be (a) in the

 case of U.S. dollar denominated loans, either (i) SOFR plus an applicable margin or (ii) the base rate plus an applicable margin; or (b) in the case of Canadian dollar denominated loans, the CDOR rate plus an applicable margin. The applicable margin varies based on Average Availability (as defined in the ABL Credit Agreement) from (a) with respect to base rate loans, 0.50 % to 1.00 % and (b) with respect to SOFR loans and CDOR rate loans, 1.50 % to 2.00 %. The ability to draw under the ABL Facility or issue letters of credit thereunder is conditioned upon, among other things, delivery of prior written notice of a borrowing or issuance, as applicable, the ability to reaffirm the representations and warranties contained in the ABL Credit Agreement and the absence of any default or event of default under the ABL Facility.
 Buyer is required to pay a commitment fee to the lenders under the ABL Facility in respect of the unutilized commitments thereunder at a rate equal to 0.375 % per annum, which may be reduced following the first full fiscal quarter to 0.250 % per annum based on average daily usage. Buyer must also pay customary letter of credit and agency fees.
 The balance outstanding under the ABL Facility will be due and payable on April 1, 2026. Buyer may, at any time and from time to time, prepay, without premium or penalty, any borrowing under the ABL Facility and terminate, or from time to time reduce, the commitments under the ABL Facility.
 The obligations under the ABL Facility are guaranteed by Capitol Investment Merger Sub 2, LLC, Buyer and each of Buyer's existing and future direct and indirect wholly owned domestic restricted subsidiaries, subject to certain exceptions, as well as certain of Buyer's material Canadian subsidiaries (the "ABL Guarantors"). The obligations under the ABL Facility and the guarantees of those obligations are secured by (subject to certain exceptions): (i) a first priority pledge by each ABL Guarantor of all of the equity interests of restricted subsidiaries directly owned by such ABL Guarantors (limited to 65 % of voting capital stock in the case of foreign subsidiaries owned directly by a U.S. subsidiary and subject to certain other exceptions in the case of non-wholly owned subsidiaries) and (ii) a first priority security interest in substantially all of the ABL Guarantors' present and after-acquired assets (subject to certain exceptions).
 The ABL Facility contains customary negative covenants for transactions of this type, including covenants that, among other things, limit Buyer's and its restricted subsidiaries' ability to: incur additional indebtedness; pay dividends, redeem stock, or make other distributions; repurchase, prepay or redeem subordinated indebtedness; make investments; create restrictions on the ability of Buyer's restricted subsidiaries to pay dividends to Buyer; create liens; transfer or sell assets; consolidate, merge, sell, or otherwise dispose of all or substantially all of Buyer's assets; enter into certain transactions with Buyer's affiliates; and designate subsidiaries as unrestricted subsidiaries, in each case subject to certain exceptions, as well as a restrictive covenant applicable to each Specified Floor Plan Company (as defined in the ABL Credit Agreement) limiting its ability to own certain assets and engage in certain lines of business. The covenants governing the payment of dividends and making other distributions are based upon a combination of fixed amounts, percentages of Adjusted EBITDA or upon multiple pro forma measures depending on the purpose of any such dividend payments or distributions the Buyer and its restricted subsidiaries are permitted to make. In addition, the ABL Facility contains a springing financial covenant that requires Buyer and its restricted subsidiaries to maintain a Consolidated Fixed Charge Coverage Ratio (as defined in the ABL Credit Agreement) of at least 1.00 to 1.00; provided that the financial covenant shall only be tested when Specified Excess Availability (as defined in the ABL Credit Agreement) under the ABL Facility is less than the greater of (i) 10.0 % of the Line Cap (as defined in the ABL Credit Agreement) and (ii) $ 60.0 million (the "FCCR Test Amount"), in which case it shall be tested at the end of each succeeding fiscal quarter thereafter until the date on which Specified Excess Availability has exceeded the FCCR Test Amount for 30 consecutive calendar days. As of December 31, 2023, Specified Excess Availability under the ABL Facility exceeded the required threshold and, as a result, this financial covenant was inapplicable.
 The ABL Facility provides for a number of customary events of default, including, among others, and in each case subject to an applicable grace period: payment defaults to the lenders; covenant defaults; material inaccuracies of representations and warranties; failure to pay certain other indebtedness after final maturity or acceleration of other indebtedness exceeding a specified amount; voluntary and involuntary bankruptcy proceedings; material judgments for payment of money exceeding a specified amount; and certain change of control events. The occurrence of an event of default could result in the acceleration of obligations and the termination of revolving commitments under the ABL Facility.
 2029 Secured Notes
 On the Closing Date, the Issuer issued $ 920.0 million in aggregate principal amount of 5.50 % senior secured second lien notes due 2029. The 2029 Secured Notes were issued pursuant to an indenture, dated as of April 1, 2021, between the Issuer, Wilmington Trust, National Association, as trustee and the guarantors party thereto (the "Indenture"). The Issuer pays interest on the 2029 Secured Notes semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2021. Unless earlier redeemed, the 2029 Secured Notes will mature on April 15, 2029.

 Ranking and Security
 The 2029 Secured Notes are jointly and severally guaranteed on a senior secured basis by Capitol Investment Merger Sub 2, LLC and, subject to certain exceptions, each of the Issuer's existing and future wholly owned domestic restricted subsidiaries that is an obligor under the ABL Credit Agreement or certain other capital markets indebtedness. Under the terms of the Indenture, the 2029 Secured Notes and the related guarantees rank senior in right of payment to all of the Issuer's and the guarantors' subordinated indebtedness and are effectively senior to all of the Issuer's and the guarantors' unsecured indebtedness, and indebtedness secured by liens junior to the liens securing the 2029 Secured Notes, in each case, to the extent of the value of the collateral securing the 2029 Secured Notes. The 2029 Secured Notes and the related guarantees rank equally in right of payment with all of the Issuer's and the guarantors' senior indebtedness, without giving effect to collateral arrangements, and effectively equal to all of the Issuer's and the guarantors' senior indebtedness secured on the same priority basis as the 2029 Secured Notes. The 2029 Secured Notes and the related guarantees are effectively subordinated to any of the Issuer's and the guarantors' indebtedness that is secured by assets that do not constitute collateral for the 2029 Secured Notes to the extent of the value of the assets securing such indebtedness, and indebtedness that is secured by a senior-priority lien, including the ABL Credit Agreement to the extent of the value of the collateral securing such indebtedness, and are structurally subordinated to the liabilities of the Issuer's non-guarantor subsidiaries.
 Optional Redemption Provisions and Repurchase Rights
 At any time, upon not less than 10 nor more than 60 days' notice, the 2029 Secured Notes are redeemable at the Issuer's option, in whole or in part, at a price equal to 100 % of the principal amount of the 2029 Secured Notes redeemed, plus a make-whole premium as set forth in the Indenture, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date. Beginning April 15, 2024, the Issuer may redeem the 2029 Secured Notes, at its option, in whole or in part, at any time, subject to the payment of a redemption price together with accrued and unpaid interest, if any, to, but not including, the applicable redemption date. The redemption price includes a call premium that varies (from 2.750 % to 0.000 %) depending on the year of redemption.
 In addition, at any time prior to April 15, 2024, the Issuer may redeem up to 40 % of the aggregate principal amount of the 2029 Secured Notes, at a redemption price equal to 105.5 % of the principal amount thereof, together with accrued and unpaid interest, if any, to, but not including, the applicable redemption date, with the net cash proceeds of sales of one or more equity offerings by the Issuer or any direct or indirect parent of the Issuer, subject to certain exceptions.
 In addition, at any time prior to April 15, 2024, the Issuer may redeem during each calendar year up to 10 % of the aggregate principal amount of the 2029 Secured Notes at a redemption price equal to 103 % of the aggregate principal amount of the 2029 Secured Notes to be redeemed, together with accrued and unpaid interest, if any, to, but not including, the applicable redemption date; provided that, in any given calendar year, any amount not previously utilized in any calendar year may be carried forward to subsequent calendar years.
 Subject to certain exceptions, the holders of the 2029 Secured Notes also have the right to require the Issuer to repurchase their 2029 Secured Notes upon the occurrence of a change in control, as defined in the Indenture, at an offer price equal to 101 % of the principal amount of the 2029 Secured Notes plus accrued and unpaid interest, if any, to, but not including, the date of repurchase.
 In addition, if the Issuer or any of its restricted subsidiaries sells assets, under certain circumstances, the Issuer is required to use the net proceeds to make an offer to purchase the 2029 Secured Notes at an offer price in cash equal to 100 % of the principal amount of the 2029 Secured Notes plus accrued and unpaid interest to, but not including, the repurchase date.
 In connection with any offer to purchase all or any of the 2029 Secured Notes (including a change of control offer and any tender offer), if holders of no less than 90 % of the aggregate principal amount of the 2029 Secured Notes validly tender their 2029 Secured Notes, the Issuer or a third party is entitled to redeem any remaining 2029 Secured Notes at the price offered to each holder.
 Restrictive Covenants
 The Indenture contains covenants that limit the Issuer's (and certain of its subsidiaries') ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock, or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Issuer to the Issuer's restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; or (ix) designate the Issuer's subsidiaries as unrestricted subsidiaries. The covenants governing the payment of dividends and making other distributions are based upon a combination of fixed amounts, percentages of Adjusted EBITDA or upon multiple pro forma measures depending on the purpose of any such dividend payments or distributions the Issuer and its restricted subsidiaries are permitted to make.

 Events of Default
 The Indenture provides for customary events of default, including non-payment, failure to comply with covenants or other agreements in the Indenture, and certain events of bankruptcy or insolvency. If an event of default occurs and continues with respect to the 2029 Secured Notes, the trustee or the holders of at least 30 % in aggregate principal amount of the outstanding 2029 Secured Notes of such series may declare the entire principal amount of all the 2029 Secured Notes to be due and payable immediately (except that if such event of default is caused by certain events of bankruptcy or insolvency, the entire principal of the 2029 Secured Notes will become due and payable immediately without further action or notice).
 2023 Credit Facility
 On January 13, 2023, the Company entered into a new credit agreement allowing for borrowings of up to $ 18.0 million (the "2023 Credit Facility"). Proceeds from the credit agreement were used to finance a portion of the Company's acquisition of real property from a related party in December 2022, see Note 19: Related Parties for further information. A portion of the loan proceeds were used to finance improvements to the property. In connection with entering into the agreement, the Company received proceeds of $ 13.7 million with the ability to draw an additional $ 4.2 million upon completion of certain construction milestones. Borrowings bear interest at a fixed rate of 5.75 % per annum and are required to be repaid monthly in an amount of approximately $ 0.1 million with a balloon payment due on the maturity date of January 13, 2028. Borrowings are secured by the real property and improvements.
 Notes Payable
 Our notes payable require the Company to pay monthly and quarterly interest payments and have maturities through 2026. Notes payable include (i) debt assumed from the Acquisition related to borrowings for facilities renovations and to support general business activities, (ii) notes payable related to past businesses acquired, and (iii) term loans. Subsequent to the Acquisition, the Company consolidated certain notes payable assumed from the Acquisition into a $ 23.9 million loan agreement with Security Bank of Kansas City ("SBKC") that bears interest at a rate of 3.125 % per annum, and a $ 3.5 million loan agreement with SBKC that bears interest at a rate of 3.5 % per annum.
 Debt Maturities
 As of December 31, 2023, the principal payments of debt outstanding over the next five years and thereafter were as follows:

 Notes Payable
 Long-Term Debt

 2024
 $
 7,958
 $

 2025
 1,117

 2026
 22,524
 553,049

 2027
 —

 2028
 —
 11,551

 Thereafter
 —

 Total
 $
 31,599
 $
 1,486,199

 Less unamortized discount and issuance costs
 ( 179)
 ( 22,227)

 $
 31,421
 $
 1,463,972

 Note 10: Leases as Lessee
 The Company's operating lease agreements primarily consist of real estate property, such as warehouses and office buildings, in addition to personal property, such as vehicles and equipment. The majority of the Company's lease arrangements are comprised of fixed payments and a limited number of these arrangements include a variable payment component based on certain index fluctuations. The Company had certain rental equipment under master lease agreements, which were classified as finance leases. The master lease agreements are typically for a five-year period, at the end of which the Company is entitled to return or purchase the equipment or extend the life of the lease. During 2023, the Company purchased the equipment under its remaining finance leases, which would expire through 2024. Additional costs related to the purchase of the equipment were immaterial.

 Components of Lease Expense
 The components of lease expense are as follows:

 2023
 2022
 2021

 Operating lease cost
 $
 10,149
 $
 7,659
 $
 6,969

 Finance lease cost:

 Amortization of lease assets
 1,748
 1,820
 2,973

 Interest on lease liabilities
 1,189
 1,431

 Short-term lease cost
 1,472
 3,690

 Sublease income
 ( 1,365)
 ( 1,730)
 ( 5,383)

 Total lease cost
 $
 11,810
 $
 10,410
 $
 9,680

 Supplemental Cash Flow Information
 Supplemental cash flow information related to leases is as follows:

 2023
 2022
 2021

 Cash paid for amounts included in the measurement of lease liabilities:

 Operating cash outflows - payments on operating leases
 $
 7,891
 $
 7,855
 $
 6,969

 Operating cash outflows - interest payments on finance leases
 $
 $
 1,189
 $
 1,431

 Finance cash outflows - payments on finance lease obligations
 $
 2,682
 $
 3,955
 $
 5,223

 Supplemental disclosure of noncash leasing activities:

 Right-of-use assets obtained in exchange for new operating lease liabilities (1)
 $
 16,077
 $
 3,761
 $
 1,809

 (1) Includes lease extension and option exercises.
 Supplemental Balance Sheet Information
 As of December 31, 2022, the Company included finance leases of $ 3.3 million, net of $ 1.1 million of accumulated depreciation, within the Property and Equipment line and finance leases of $ 4.8 million, net of $ 6.6 million of accumulated depreciation, within the Rental equipment, net line, on the Consolidated Balance Sheets.
 Future Maturities and Payment Information
 Maturities of lease liabilities as of December 31, 2023 are as follows:

 Operating Leases

 2024
 $
 8,787

 2025
 7,586

 2026
 6,150

 2027
 5,022

 2028
 4,864

 Thereafter
 17,964

 Total lease payments
 50,373

 Less: imputed interest
 ( 11,095)

 Total present value of lease liabilities
 $
 39,278

 As of December 31, 2023, the weighted average discount rate and remaining term under operating leases was 6.3 % and 7.9 years years, respectively.

 Note 11: Goodwill and Intangible Assets
 Goodwill
 The following table summarizes the changes in goodwill by reporting unit:

 ERS
 TES
 APS
 Total

 Balance, December 31, 2021
 $
 490,662
 $
 167,307
 $
 37,896
 $
 695,865

 Acquisition of HiRail (1)
 $
 8,644
 $
 —
 $
 —
 $
 8,644

 Currency translation adjustment
 ( 682)
 —
 —
 ( 682)

 Balance, December 31, 2022
 498,624
 167,307
 37,896
 703,827

 Currency translation adjustment
 —
 —

 Balance, December 31, 2023
 $
 498,808
 $
 167,307
 $
 37,896
 $
 704,011

 (1) See Note 3: Business Combinations, for additional information.
 Intangible Assets
 Intangible assets consisted of the following:

 Weighted Average Remaining Life (Years)
 Gross Carrying Amount
 Accumulated Amortization
 Gross Carrying Amount
 Accumulated Amortization

 Definite-lived intangible assets:

 Trade names
 12.3
 $
 180,780
 $
 ( 57,463)
 $
 180,780
 $
 ( 46,513)

 Customer relationships
 10.9
 212,587
 ( 58,696)
 212,351
 ( 42,502)

 Non-compete agreements and other
 1.3
 ( 531)
 ( 519)

 Total
 $
 393,902
 $
 ( 116,690)
 $
 393,666
 $
 ( 89,534)

 Amortization expense associated with the intangible assets noted above was $ 27.1 million, $ 33.9 million, and $ 40.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.
 Amortization Expense
 As of December 31, 2023, estimated amortization expense for intangible assets for each of the next five years and thereafter is estimated to be as follows:

 Amortization

 2024
 $
 26,331

 2025
 26,329

 2026
 26,328

 2027
 26,328

 2028
 26,328

 Thereafter
 145,568

 Total estimated future amortization expense
 $
 277,212

 Note 12: Earnings (Loss) Per Share
 Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of shares of Common Stock outstanding. Diluted net earnings (loss) per share includes the effects of potentially dilutive shares of Common Stock, if dilutive. Potentially dilutive effects include the exercise of warrants, contingently issuable shares, and share-based compensation. Our potentially dilutive shares aggregated 28.7 million, 26.7 million, and 24.4 million for years ended December 31, 2023, 2022 and 2021, respectively, were not included in the computation of diluted earnings (loss) per share because they would not be issuable if the end of the reporting period were the end of the contingency period or they would be anti-dilutive.

 The following tables set forth the computation of basic and dilutive earnings (loss) per share:

 Year Ended December 31, 2023
 Year Ended December 31, 2022
 Year Ended December 31, 2021

 (in $000s, except per share data)
 Weighted Average Shares
 Per Share Amount
 Weighted Average Shares
 Per Share Amount
 Weighted Average Shares
 Per Share Amount

 Basic earnings (loss) per share
 $
 245,093
 $
 0.21
 $
 247,152
 $
 0.16
 $
 241,370
 $
 ( 0.75)

 Dilutive common share equivalents
 —
 —
 —
 —

 Diluted earnings (loss) per share
 $
 245,726
 $
 0.21
 $
 247,705
 $
 0.16
 $
 241,370
 $
 ( 0.75)

 Note 13: Equity
 Preferred Stock
 As of both December 31, 2023 and 2022, we were authorized to issue 10,000,000 shares of preferred stock with a par value of $ 0.0001 per share, with such designation, rights and preferences as may be determined from time to time by our board of directors. As of both December 31, 2023 and 2022, there were no shares of preferred stock issued or outstanding.
 Common Stock
 As of December 31, 2023 and 2022, we were authorized to issue 500,000,000 shares of common stock with a par value of $ 0.0001 per share.
 On August 2, 2022, the Company's Board of Directors authorized a stock repurchase program, allowing for the repurchase of up to $ 30 million of the Company's ordinary common shares. Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of its common stock, and the repurchase program may be suspended or discontinued at any time at the Company's discretion. The Company exhausted this program during 2023, and on September 14, 2023, the Board of Directors approved a stock repurchase program that authorized additional repurchases of up to $ 25 million of shares of the Company's ordinary common shares.
 During the years ended December 31, 2023 and 2022, respectively, the Company repurchased approximately 6.4 million and 1.7 million shares of its common stock, which are held in treasury, for a total of $ 39.0 million and $ 10.5 million, including an accrual of $ 0.2 million and $ 0.2 million and also commission fees for the repurchase of its common stock.
 Contingently Issuable Shares
 NESCO Holdings, LP is a Delaware limited partnership holding shares of our common stock. NESCO Holdings, LP is owned and controlled by Energy Capital Partners, and has the right to receive: (1) up to an additional 1,800,000 shares of common stock through July 31, 2024, in increments of 900,000 shares, if (x) the trading price of the common stock exceeds $ 13.00 per share or $ 16.00 per share for any 20 trading days during a 30 consecutive trading day period or (y) a sale transaction of the Company occurs in which the consideration paid per share to holders of common stock of the Company exceeds $ 13.00 per share or $ 16.00 per share, and (2) an additional 1,651,798 shares of common stock if during the seven-year period ending July 31, 2026, the trading price of common stock exceeds $ 19.00 per share for any 20 trading days during a 30 consecutive trading day period or if a sale transaction of the Company occurs in which the consideration paid per share to holders of common stock exceeds $ 19.00 per share.

 Note 14: Share-Based Compensation
 On July 8, 2021, the Company's stockholders approved the Amended and Restated 2019 Omnibus Incentive Plan, which increased the total authorized shares of Common Stock to 14,650,000 (the "Plan"). The purpose of the Plan is to provide the Company and its subsidiaries' officers, directors, employees and consultants who, by their position, ability and diligence, are able to make important contributions to the Company's growth and profitability, with an incentive to assist the Company in achieving its long-term corporate objectives, to attract and retain executive officers and other employees and to provide such persons with an opportunity to acquire an equity interest in the Company. To accomplish these objectives, the Plan provides for awards of equity-based incentives through

 granting of restricted stock units, stock options, stock appreciation rights and other stock or cash-based awards. The Plan provides for share recycling whereby shares underlying expired, lapsed or terminated awards, as well as shares surrendered, repurchased, redeemed, or canceled without having been fully exercised or forfeited in a manner that results in the Company acquiring shares covered by the award, are available for award grants under the Plan. At December 31, 2023, there were approximately 3.2 million shares in the share reserve still available for issuance.
 The Company records share-based compensation awards using a fair value method and recognizes compensation expense for an amount equal to the fair value of the share-based payment issued in its financial statements. The Company's share-based compensation plans include programs for stock options, restricted stock units ("RSUs"), performance share units ("PSUs") and deferred compensation. Compensation expense for equity awards recognized in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss) was $ 13.3 million, $ 12.3 million and $ 17.3 million for the years ended December 31, 2023, 2022 and 2021, respectively.
 Restricted Stock Units and Performance Stock Units
 Restricted and performance stock awards vest over a period of one to four years. Performance stock awards may be based on the achievement of specific financial performance metrics and market conditions. Awards based strictly on time-based vesting are valued at the market price on the date of grant. The fair values of the awards that contain market conditions are estimated using a Monte Carlo simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility (based on the weighted-average combination of the Company's historic volatility and of the implied volatility of a group of the Company's peers), risk-free rates of return, and correlation matrix. Restricted and performance stock awards are generally forfeitable in the event of terminated employment prior to vesting.
 The following table summarizes the Company's RSU and PSU award activity:

 Number of Shares
 Weighted Average Grant Date Fair Value

 Outstanding, December 31, 2020
 1,177,592
 $
 4.05

 Granted
 4,362,692
 $
 7.70

 Forfeited/cancelled/expired
 ( 24,919)
 $
 2.19

 Vested
 ( 998,898)
 $
 4.39

 Outstanding, December 31, 2021
 4,516,467
 $
 7.51

 Granted
 4,334,217
 $
 5.53

 Forfeited/cancelled/expired
 ( 449,189)
 $
 7.81

 Vested
 ( 897,877)
 $
 7.54

 Outstanding, December 31, 2022
 7,503,618
 $
 6.34

 Granted
 943,003
 $
 6.72

 Forfeited/cancelled/expired
 ( 824,357)
 $
 6.66

 Vested
 ( 706,042)
 $
 5.25

 Outstanding, December 31, 2023
 6,916,222
 $
 6.80

 At December 31, 2023, unrecognized compensation expense related to these awards was $ 22.4 million and is expected to be recognized over a remaining period of approximately 2.4 years.

 Note 15: Fair Value Measurements
 FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs.
 The following table sets forth the carrying values (exclusive of deferred financing fees) and fair values of our financial liabilities:

 Carrying Value
 Fair Value

 Level 1
 Level 2
 Level 3

 ABL Facility
 $
 552,400
 $
 —
 $
 552,400
 $
 —

 2029 Secured Notes
 —
 846,400
 —

 2023 Credit Facility
 13,800
 —
 13,800
 —

 Other notes payable
 31,599
 —
 31,599
 —

 ABL Facility
 $
 437,731
 $
 —
 $
 437,731
 $
 —

 2029 Secured Notes
 —
 814,200
 —

 Other notes payable
 31,661
 —
 31,661
 —

 The carrying amounts of the ABL Facility and other notes payable approximated fair value as of December 31, 2023 and 2022 based upon terms and conditions available to the Company at those dates in comparison to the terms and conditions of its outstanding debt. The estimated fair value of the 2029 Secured Notes is calculated using Level 2 inputs, based on bid prices obtained from brokers.

 Note 16: Income Taxes
 We are subject to taxation in all jurisdictions in which we operate within the United States and Canada. Substantially all of our income before income taxes for all periods presented is U.S. sourced. The provision for income tax expense (benefit), including the amount of domestic and foreign loss before taxes, is as follows:

 2023
 2022

 2021

 Components of income (loss) before tax:

 Domestic
 $
 56,000
 $
 44,214
 $
 ( 180,669)

 Foreign
 2,076
 2,518
 3,593

 Total income (loss) before tax
 ( 177,076)

 Current tax expense (benefit):

 Federal
 —
 —

 Foreign
 ( 6)

 State
 3,325

 Total current tax expense (benefit)
 3,381

 Deferred tax expense (benefit):

 Federal
 12,971
 6,262
 ( 33,415)

 Foreign
 ( 1,829)

 State
 1,484
 4,963
 ( 9,507)

 Total deferred tax expense (benefit)
 14,978
 9,396
 ( 42,096)

 Expense (benefit) from change in valuation allowance
 ( 10,995)
 ( 2,502)
 45,959

 Total tax expense
 $
 7,364
 $
 7,827
 $
 4,425

 A reconciliation between the federal statutory income tax rate and our actual effective income tax rate is as follows:

 2023
 2022
 2021

 Expected federal statutory income tax rate
 21.0 %
 21.0 %
 21.0 %

 Tax effect of differences:

 Foreign operations
 1.2 %
 ( 3.3)%
 ( 0.3)%

 —
 ( 1.0)%
 1.0 %

 Effect of state income taxes, net of federal income tax benefit
 5.6 %
 9.8 %
 5.2 %

 Nondeductible acquisition costs
 —
 —
 ( 0.7)%

 Nontaxable income on warrants
 —
 ( 8.4)%
 ( 1.3)%

 Change in valuation allowance
 ( 17.4)%
 ( 3.3)%
 ( 25.8)%

 Nondeductible officer compensation
 3.4 %
 —
 —

 Other
 ( 1.1)%
 1.9 %
 ( 1.6)%

 Effective income tax rate
 12.7 %
 16.7 %
 ( 2.5)%

 The Company's effective tax rate differs from the U.S. federal statutory tax rate of 21% and is affected by a number of factors, such as the relative amounts of income we earn in differing tax jurisdictions, certain non-deductible expenses, such as compensation disallowance and mark-to-market adjustments on derivative financial instruments, and changes in the valuation allowance we establish against deferred tax assets. The rate is also affected by discrete items that may occur in any given year, such as legislative enactments and changes in our corporate structure that may occur.
 The components of the deferred tax assets and liabilities are as follows:

 Deferred tax assets

 Accounts receivable
 $
 4,382
 $
 4,744

 Inventory
 19,859
 5,602

 Transaction and debt issuance costs
 3,521
 3,964

 Compensation and benefits
 6,273
 6,511

 Net operating loss carryforwards
 214,697
 252,804

 Section 163j interest disallowance carryforwards
 46,053
 39,344

 Operating lease liabilities
 9,861
 7,548

 Foreign tax credits, accrued expenses, and other
 1,069
 1,547

 Total deferred tax assets
 305,715
 322,064

 Less: valuation allowance
 ( 67,605)
 ( 78,600)

 Total deferred tax assets, net
 238,110
 243,464

 Deferred tax liabilities

 Financing receivable
 ( 7,498)
 ( 9,415)

 Rental equipment and other property and equipment
 ( 202,391)
 ( 208,108)

 Goodwill and other intangibles
 ( 50,344)
 ( 46,394)

 Operating lease assets
 ( 9,648)
 ( 7,388)

 Prepaid expenses and other items
 ( 1,584)
 ( 1,245)

 Total deferred tax liabilities
 ( 271,465)
 ( 272,550)

 Net deferred tax liability
 $
 ( 33,355)
 $
 ( 29,086)

 As a result of the Acquisition described in Note 3: Business Combinations, the Company expects to be able to amortize for U.S. tax purposes, a portion of the goodwill recognized from the Acquisition. For U.S. income taxes, the Acquisition was partly a taxable acquisition and partly a non-taxable acquisition. Accordingly, the taxable component is expected to give rise to increases in the tax bases for a portion of the net assets acquired, while the non-taxable component will result in a carryforward of pre-acquisition tax bases (referred as, "carryover basis") for a portion of the net assets acquired. The differential between the fair values of the assets acquired and the carryover basis has been recognized as a net deferred tax liability as of the Closing Date. Additionally, certain federal and state net operating loss and interest expense carryforwards were acquired in the Acquisition and the utilization of these is subject to limitations prescribed by U.S. Internal Revenue Code Section 382 ("Section 382"). The aforementioned net deferred tax liabilities recognized in connection with the assignment of the purchase price from the Acquisition include deferred tax assets from the tax

 deduction carryforwards, and were reduced by a valuation allowance as of the Closing Date. The acquisition of HiRail did not give rise to any increase in the tax bases acquired in the acquisition and the Company has reflected the carryover tax bases of the net assets acquired. There is no tax basis in amortizable goodwill related to the HiRail acquisition.
 We record a valuation allowance against deferred tax assets when we determine that it is more likely than not that all or a portion of a deferred tax asset will not be realized. The valuation allowance primarily relates to federal and state net operating loss carryforwards. While the Acquisition resulted in a significant increase in deferred tax liabilities, these tax liabilities, which give rise to future taxable income against which tax carryforwards may be applied, are subject to limitations. Federal and state income tax limitation rules are expected to limit the application of our carryforwards and, accordingly, we record a valuation allowance to reduce our deferred tax assets to amounts expected to be realized.
 The following presents changes in the valuation allowance:

 2023
 2022
 2021

 Valuation allowance - beginning of year
 $
 ( 78,600)
 $
 ( 84,577)
 $
 ( 16,542)

 Assigned in purchase accounting (see Note 3)
 —
 3,475
 ( 22,076)

 Charged to benefit (expense)
 10,995
 2,502
 ( 45,959)

 Valuation allowance - end of year
 $
 ( 67,605)
 $
 ( 78,600)
 $
 ( 84,577)

 As discussed above, the Company acquired certain federal and state net operating loss and interest expense carryforwards in connection with the Acquisition, the utilization of which is subject to limitations prescribed by Section 382. Accordingly, a portion of the carryforwards is expected to expire prior to being utilized. As of December 31, 2023, we had net operating loss carryforwards of approximately $ 909.9 million for U.S. federal income tax purposes, $ 397.2 million for state income tax purposes, and $ 15.3 million for foreign income tax purposes. As of December 31, 2022, we had net operating loss carryforwards of approximately $ 1,067.0 million for U.S. federal income tax purposes, $ 513.4 million for state income tax purposes and $ 9.6 million for foreign income tax purposes. The net operating loss carryforwards expire at various dates commencing during 2035 through 2037 for U.S. federal income tax purposes, 2025 through 2042 for state income tax purposes, and 2038 through 2042 for foreign income tax purposes.
 On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 ("IRA"), which, among other things, implements a 15% minimum tax for certain large corporations, a 1% excise tax on net stock repurchases, and several tax incentives to promote clean energy. The IRA is effective for tax years beginning after December 31, 2022. The IRA does not have a material effect on the Company's consolidated financial statements.
 The Organization for Economic Cooperation and Development ("OECD") has issued "Pillar Two" model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024. While the US has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation to do so. As currently designed, Pillar Two will ultimately apply to our worldwide operations. Considering we do not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, these rules are not expected to materially increase our global tax costs. We will continue to monitor US and global legislative activities related to Pillar Two for potential impacts.

 Note 17: Concentration Risks
 Concentration of Credit Risks
 Financial instruments that potentially subject us to significant concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain certain cash and cash equivalents with federally insured financial institutions and may maintain deposits in excess of financial insured limits or in financial institutions that are not federally insured. However, we believe that we are not exposed to significant credit risks due to the financial position of the depository institutions in which our deposits are held. No customer accounted for more than 10% of consolidated revenues during the years ended December 31, 2023, 2022 and 2021. Seven customers, collectively, accounted for 10.0 % of consolidated revenue in 2023. Five customers, collectively, accounted for 11.7 % of consolidated revenue in 2022. No customer accounted for more than 3% of consolidated revenue in 2021.
 Vendor Concentrations
 In 2023, two vendors individually accounted for more than 10% of purchases (total of approximately 31 %), primarily related to chassis, and in 2022 one vendor accounted for 16 % of purchases, primarily related to booms, lifts and parts. In 2023 and 2022, the top

 five vendors accounted for approximately 51 % and 41 % of purchases, respectively. In 2021, no vendor accounted for more than 10.0% of purchases.

 Note 18: Commitments and Contingencies
 We record a liability when we believe that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. We review these provisions at least quarterly and adjust these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information.
 Legal Matters
 In the normal course of business, there are various claims in process, matters in litigation, and other contingencies. At this time, no claims of these types, certain of which are covered by insurance policies, have had a material effect on the Company. Certain jurisdictions in which the Company operates do not provide insurance recoveries related to punitive damages. For matters pertaining to the pre-Acquisition activities of Custom Truck LP, Sellers have agreed to indemnify Nesco and Buyer for losses arising out of the breach of Sellers' pre-closing covenants in the Purchase Agreement and certain indemnified tax matters, with recourse limited to a $ 10 million and $ 8.5 million escrow account, respectively.
 From time to time, the Company is audited by state and local taxing authorities. These audits typically focus on the Company's withholding of state-specific sales tax and rental-related taxes.
 Custom Truck LP's withholdings of federal excise taxes for each of the four quarterly periods during 2015 are currently under audit by the IRS. The IRS issued an assessment on October 28, 2020 in an aggregate amount of $ 2.4 million for the 2015 periods, alleging that certain types of sold equipment are not eligible for the Mobile Machinery Exemption set forth in the Internal Revenue Code (the "Code"). An appeal was filed on January 28, 2021. Based on management's understanding of the facts and circumstances, including the relevant provisions of the Code, and historical precedent, including previous successful appeals of similar assessments in prior years, management does not believe the likelihood of a loss resulting from the IRS assessment to be probable at this time.
 While it is not possible to predict the outcome of the foregoing matters with certainty, it is the opinion of management that the final outcome of these matters will not have a material effect on the Company's consolidated financial condition, results of operations and cash flows.
 Purchase Commitments
 We enter into purchase agreements with manufacturers and suppliers of equipment for our rental fleet and inventory. All of these agreements are cancellable within a specified notification period to the supplier.

 Note 19: Related Parties
 The Company has transactions with related parties as summarized below.
 Rentals and Sales — The Company rents and sells equipment and provides services to R&M Equipment Rental, a business partially owned by members of the Company's management. The Company also rents equipment and purchases inventory from R&M Equipment Rental. During the year ended December 31, 2021, the Company purchased approximately $ 19.4 million in rental equipment from R&M Equipment Rental.
 Prior to August 1, 2022, Energy Capital Partners ("ECP"), a stockholder of the Company, and their affiliates had ownership interests in PLH Group, Inc., which was a customer of the Company.
 The PIPE Investors, as described in Note 3: Business Combinations, included certain members of management and directors of the Company, which persons purchased approximately 1.4 million shares of the Company's common stock at a price of $ 5.00 per share, during the year ended December 31, 2021.
 Facilities Leases and Other — The Company has leased certain facilities, as well as purchased aircraft charter services, from entities owned by members of the Company's management and their immediate families. Lease and charter services payments related to these transactions are immaterial. Rent and air travel expenses are recorded in selling, general, and administrative expenses. In December 2022, the Company terminated the lease agreements and purchased the facilities and land from these related parties for a purchase price of approximately $ 15.4 million.

 Management Fees — The Company entered into the Corporate Advisory Services Agreement with Platinum effective as of the Closing Date, under which management fees are payable to Platinum quarterly. The management fees are recorded in transaction expenses and other in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss).
 A summary of the transactions with the foregoing related parties included in the Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows:

 2023
 2022
 2021

 Total revenues from transactions with related parties
 $
 26,400
 $
 33,816
 $
 23,251

 Expenses incurred from transactions with related parties included in cost of revenue
 $
 1,506
 $
 2,318
 $
 1,687

 Expenses incurred from transactions with related parties included in operating expenses
 $
 5,652
 $
 6,103
 $
 4,283

 Amounts receivable from/payable to related parties included in the Consolidated Balance Sheets are as follows:

 Accounts receivable from related parties
 $
 $
 5,053

 Accounts payable to related parties
 $
 $

 Note 20: Segments
 Our operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on gross profit. The accounting policies of the reportable segments are consistent with those described in Note 2: Summary of Significant Accounting Policies to the financial statements. Intersegment sales and any related profits are eliminated in consolidation. We manage the business in three reporting segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES") and Aftermarket Parts and Services ("APS"). The segment operations are described in Note 1: Business and Organization to these financial statements. The revenue by geography is disclosed in Note 4: Revenue. Segment information is presented below.

 The Company's segment results are presented in the tables below:

 2023

 ERS
 TES
 APS
 Total

 Revenue:

 Rental
 $
 463,139
 $
 —
 $
 15,771
 $
 478,910

 263,028
 990,425
 —
 1,253,453

 Parts and services
 —
 —

 726,167
 990,425
 148,508

 Rentals/parts and services
 118,236
 —
 105,791
 224,027

 198,510
 817,639
 —
 1,016,149

 167,199
 —
 3,465
 170,664

 483,945
 817,639
 109,256
 1,410,840

 $
 242,222
 $
 172,786
 $
 39,252
 $
 454,260

 2022

 ERS
 TES
 APS
 Total

 Revenue:

 Rental
 $
 449,108
 $
 —
 $
 14,931
 $
 464,039

 212,146
 770,195
 —
 982,341

 Parts and services
 —
 —

 661,254
 770,195
 141,637

 Rentals/parts and services
 106,598
 —
 105,185
 211,783

 158,167
 647,685
 —
 805,852

 167,962
 —
 3,741
 171,703

 432,727
 647,685
 108,926
 1,189,338

 $
 228,527
 $
 122,510
 $
 32,711
 $
 383,748

 2021

 ERS
 TES
 APS
 Total

 Revenue:

 Rental
 $
 354,557
 $
 —
 $
 15,510
 $
 370,067

 105,435
 589,899
 —
 695,334

 Parts and services
 —
 —
 101,753
 101,753

 459,992
 589,899
 117,263
 1,167,154

 Rentals/parts and services
 94,644
 —
 86,943
 181,587

 90,420
 528,024
 —
 618,444

 151,954
 —
 5,156
 157,110

 337,018
 528,024
 92,099
 957,141

 $
 122,974
 $
 61,875
 $
 25,164
 $
 210,013

 Total assets by operating segment are not disclosed herein because asset by operating segment data is not reviewed by the chief operating decision maker ("CODM") to assess performance and allocate resources.
 Gross profit is the primary operating result whereby our segments are evaluated for performance and resource allocation. The following table presents a reconciliation of consolidated gross profit to consolidated income (loss) before income taxes:

 2023
 2022
 2021

 Gross Profit
 $
 454,260
 $
 383,748
 $
 210,013

 Selling, general and administrative expenses
 231,403
 210,868
 155,783

 Amortization
 27,110
 33,940
 40,754

 Non-rental depreciation
 10,656
 9,414
 3,613

 Transaction expenses and other
 14,143
 26,218
 51,830

 Loss on extinguishment of debt
 —
 —
 61,695

 Interest expense, net
 131,315
 88,906
 72,843

 Financing and other (income) expense
 ( 18,443)
 ( 32,330)

 Income (Loss) Before Income Taxes
 $
 $
 $
 ( 177,076)

 The following table presents total assets by country:

 Assets:

 United States
 $
 3,243,619
 $
 2,830,958

 Canada
 124,178
 107,254

 $
 3,367,797
 $
 2,938,212

 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
 None.

 Item 9A. Controls and Procedures
 (a) Evaluation of Disclosure Controls and Procedures
 In accordance with Securities Exchange Act Rules 13a-15(e) and 15d-15(e), our management, under the supervision of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2023 because of the material weakness in our internal control over financial reporting described below.
 (b) Management's Report on Internal Control over Financial Reporting
 Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the Company's principal executive and principal financial officers and effected by the Company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:
 Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
 Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
 Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting can also be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.
 The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2023. In making this assessment, the Company's management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("2013 framework") ("COSO") in Internal Control-Integrated Framework.
 Based on that assessment, the Chief Executive Officer and Chief Financial Officer concluded as of December 31, 2023, the Company's internal control over financial reporting was not effective, due to the material weakness described below.
 Inadequate General Information Technology Controls and Business Process Controls
 On April 1, 2021, we completed the acquisition of Custom Truck LP, which resulted in a significant change in the Company's internal control over financial reporting. We are in the process of integrating policies, processes, people, technology and operations for the combined company. As part of this integration, we have identified deficiencies in the design and operating effectiveness of internal controls associated with the control activities component of the COSO framework. These include:
 During the fourth quarter ended December 31, 2021, we identified control deficiencies related to overall ITGCs for both user access and program change-management for systems supporting all of the Company's internal control processes and controls, controls over the completeness and accuracy of information used in business process controls and management review controls. Our business process controls (automated and manual) and management review controls were also deemed ineffective because they are adversely impacted by ineffective ITGCs. These control deficiencies could result in misstatements potentially impacting all financial statement accounts and disclosures that may not be prevented or detected.

 Accordingly, these deficiencies constituted a pervasive material weakness. The pervasive material weakness did not result in any identified misstatements to our consolidated financial statements, and there were no changes to previously released financial results.
 (c) Status of Remediation of the Pervasive Material Weakness in Internal Control Over Financial Reporting
 We have devoted and continue to devote substantial resources and effort to remediating the pervasive material weakness identified in fiscal year 2021. While we continue to enhance our overall internal control over financial reporting environment to ensure that it is comprehensive, management concluded that a portion of the pervasive material weakness that related to ITGCs identified in fiscal year 2021 and reported in our Annual Report on Form 10-K as of March 14, 2023, was remediated in fiscal year 2023. We implemented changes associated with the design, implementation, and monitoring ITGCs in the areas of user access and program change-management for systems supporting all of the Company's primary internal control processes to ensure that ITGCs are designed and operating effectively. We also established controls to ensure appropriate authorization of new user access requests, including performance of routine reviews of user access, and controls over program-change management.
 Additionally, management is in the process of designing, implementing and monitoring business process level controls that are relevant to all financial statement accounts and disclosures. This pervasive material weakness cannot be considered remediated until the applicable controls are designed and operating effectively for a sufficient period of time, as supported by management's testing results. The Company's independent registered public accounting firm that audited the consolidated financial statements included in this Annual Report issued an adverse report on effectiveness of the Company's internal control over financial reporting as of December 31, 2023.
 (d) Changes to Internal Control over Financial Reporting
 Other than the ongoing remediation efforts described above, there were no changes to our internal control over financial reporting that occurred during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 Management's Certifications
 The certifications of the Company's Chief Executive Officer and Chief Financial Officer required by the Sarbanes-Oxley Act are included as Exhibits 31 and 32 to this Annual Report on Form 10-K.

 Report of Independent Registered Public Accounting Firm
 To the Stockholders and the Board of Directors of Custom Truck One Source, Inc.
 Opinion on Internal Control Over Financial Reporting
 We have audited Custom Truck One Source, Inc.'s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, Custom Truck One Source, Inc. (the Company) has not maintained effective internal control over financial reporting as of December 31, 2023, based on the COSO criteria.

 A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management's assessment. Management has identified a material weakness in the design and operation of controls related to:
 Not fully designing, implementing and monitoring business process controls (automated and manual) over all accounts and disclosures. Until the applicable controls are designed and operating for a sufficient period of time and management has concluded this, through testing, these control deficiencies could result in misstatements potentially impacting all financial statement accounts and disclosures that may not be prevented or detected.
 We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income (loss), stockholders' equity (deficit) and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a). This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2023 consolidated financial statements, and this report does not affect our report dated March 7, 2024, which expressed an unqualified opinion thereon.
 Basis for Opinion
 The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
 Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
 Definition and Limitations of Internal Control over Financial Reporting
 A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 /s/ Ernst & Young LLP
 Kansas City, Missouri

 Item 9B. Other Information
 None.

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
 Not applicable.

 Item 10. Directors, Executive Officers and Corporate Governance
 We maintain a Code of Ethics and Conducts applicable to all of our executive officers, directors and employees, including our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer. This code is publicly available on our website at  If we make any amendments to this code other than technical, administrative or other non-substantive amendments, or grant any waivers, including implicit waivers, from a provision of this code, we will disclose the nature of the amendment or waiver, its effective date and to whom it applies on our website at  or in a Current Report on Form 8-K filed with the SEC.
 The remaining information required by this item is incorporated by reference to the applicable information in our Proxy Statement related to the 2024 Annual Meeting of Stockholders, which is expected to be filed with the SEC on or before April 29, 2024.

 Item 11. Executive Compensation
 The information required by this item is incorporated by reference to the applicable information in our Proxy Statement related to the 2024 Annual Meeting of Stockholders, which is expected to be filed with the SEC on or before April 29, 2024.

 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
 The information required by this item is incorporated by reference to the applicable information in our Proxy Statement related to the 2024 Annual Meeting of Stockholders, which is expected to be filed with the SEC on or before April 29, 2024.

 Item 13. Certain Relationships and Related Transactions, and Director Independence
 The information required by this item is incorporated by reference to the applicable information in our Proxy Statement related to the 2024 Annual Meeting of Stockholders, which is expected to be filed with the SEC on or before April 29, 2024.

 Item 14. Principal Accounting Fees and Services
 The information required by this item is incorporated by reference to the applicable information in our Proxy Statement related to the 2024 Annual Meeting of Stockholders, which is expected to be filed with the SEC on or before April 29, 2024.

 Item 15. Exhibits and Financial Statement Schedules
 (a) Financial Statement Schedules

 Condensed Financial Information for Custom Truck One Source, Inc.
 for the years ended December 31, 2023, 2022 and 2021

 Condensed Parent Company Balance Sheets

 (in $000s, except share data)

 Assets

 Investment in subsidiaries
 $
 943,396
 $
 909,757

 Total Assets
 $
 943,396
 $
 909,757

 Liabilities and Stockholders' Deficit

 Liabilities

 Derivative, warrants and other liabilities
 $
 $
 3,012

 Deferred income taxes
 30,835
 23,471

 Total long-term liabilities
 31,362
 26,483

 Commitments and contingencies (see Note 4)

 Stockholders' Equity (Deficit)

 Common stock — 0.0001 par value, 500,000,000 shares authorized, 249,903,120 and 248,311,104 shares issued and outstanding, at December 31, 2023 and 2022, respectively

 Treasury stock, at cost — 8,891,788 and 2,241,069 shares at December 31, 2023 and December 31, 2022, respectively

 ( 56,524)
 ( 15,537)

 Additional paid-in capital
 1,532,384
 1,516,318

 Accumulated other comprehensive loss
 ( 5,978)

 Accumulated deficit
 ( 557,873)
 ( 608,585)

 Total stockholders' equity (deficit)
 912,034
 883,274

 Total Liabilities and Stockholders' Equity (Deficit)
 $
 943,396
 $
 909,757

 See accompanying notes to condensed parent company financial statements.

 Condensed Parent Company Statements of Operations and Comprehensive Income (Loss)

 2023
 2022
 2021

 Operating Expenses

 Selling, general, and administrative expenses
 $
 13,309
 $
 12,297
 $
 17,313

 Total operating expenses
 13,309
 12,297
 17,313

 Operating Loss
 ( 13,309)
 ( 12,297)
 ( 17,313)

 Other Expense (Income)

 Equity in net (income) loss of subsidiaries
 ( 68,900)
 ( 40,436)
 148,948

 Other (income) expense
 ( 2,485)
 ( 18,593)
 10,815

 Total other expense (income)
 ( 71,385)
 ( 59,029)
 159,763

 Income (Loss) Before Income Taxes
 ( 177,076)

 Income Tax Expense
 7,364
 7,827
 4,425

 $
 $
 $

 Other Comprehensive Income (Loss):

 Unrealized foreign currency translation adjustment
 $
 2,969
 $
 $
 —

 Other Comprehensive Income (Loss)
 2,969
 —

 Comprehensive Income (Loss)
 $
 53,681
 $
 29,958
 $

 See accompanying notes to condensed parent company financial statements.

 Condensed Parent Company Statements of Cash Flows

 2023
 2022
 2021

 Operating Activities

 Net cash flow from operating activities
 $
 68,723
 $
 40,231
 $
 ( 148,948)

 Investing Activities

 Changes in investment in subsidiaries
 ( 30,670)
 ( 28,114)
 ( 727,014)

 Net cash flow from investing activities
 ( 30,670)
 ( 28,114)
 ( 727,014)

 Financing Activities

 Proceeds from issuance of common stock
 —
 —
 883,000

 Common stock issuance costs
 —
 —
 ( 6,386)

 ( 1,838)
 ( 652)

 Common stock repurchase
 ( 38,845)
 ( 10,279)
 —

 Net cash flow from financing activities
 ( 38,053)
 ( 12,117)
 875,962

 Net Change in Cash
 —
 —
 —

 Cash at Beginning of Period
 —
 —
 —

 Cash at End of Period
 $
 —
 $
 —
 $
 —

 See accompanying notes to condensed parent company financial statements.

 Notes to Condensed Parent Company Financial Statements
 Note 1: Basis of Presentation
 Custom Truck One Source, Inc. (the "Parent"), a Delaware corporation, serves as the parent for its two primary operating companies, Custom Truck One Source, L.P. and NESCO, LLC (the "Subsidiaries"). The Subsidiaries are engaged in the business of providing a range of services and products to customers through sales and rentals of specialty equipment, sales of parts related to the specialty equipment, and repair and maintenance services related to that equipment. On April 1, 2021, the Parent, through its wholly-owned subsidiary, NESCO Holdings II, Inc., acquired Custom Truck One Source, L.P. (the "Acquisition"). In connection with the Acquisition, the Parent issued shares of its common stock to certain investors and in exchange for the member interests of Custom Truck One Source, L.P. Additionally, NESCO Holdings II, Inc. issued new notes payable, proceeds from which were used for the Acquisition, to repay prior indebtedness and to pay transaction expenses. Refer to Note 3: Business Combinations, to the Custom Truck One Source, Inc. consolidated financial statements included in this Annual Report on Form 10-K for information about the Acquisition and related financing transactions.
 These parent company condensed financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes thereto of Custom Truck One Source, Inc. included in this Annual Report on Form 10-K. For purposes of these condensed financial statements, the Parent's wholly owned subsidiaries are recorded based upon its proportionate share of the subsidiaries' net assets (similar to presenting them on the equity method).

 Note 2: Debt
 The Parent's subsidiaries have debt obligations under a revolving credit facility that are guaranteed by the Parent and each of its direct and indirect, existing and future, material wholly-owned domestic subsidiaries. Obligations under the ABL will be secured by a first-priority lien on substantially all the assets of the Parent and its subsidiaries. The obligations contain customary financial and non-financial covenants, including covenants that impose restrictions on, among other things, additional indebtedness, liens, investments, advances, guarantees and mergers and acquisitions. These covenants also place restrictions on asset sales, dividends and certain transactions with affiliates. Refer to Note 9: Long-Term Debt, to the Custom Truck One Source, Inc. consolidated financial statements included in this Annual Report on Form 10-K for information about the Parent's subsidiaries' debt obligations.

 Note 3: Income Taxes
 Refer to Note 16: Income Taxes, to the Custom Truck One Source, Inc. consolidated financial statements included in this Annual Report on Form 10-K for information about subsidiaries' income taxes.

 Note 4: Commitments and Contingencies
 Refer to Note 18: Commitments and Contingencies, to the Custom Truck One Source, Inc. consolidated financial statements included in this Annual Report on Form 10-K for information about commitments and contingencies.

 Note 5: Changes in Stockholders' Equity (Deficit)
 The following table provides a reconciliation of the beginning and ending amounts of total stockholders' equity (deficit) for the years ended December 31, 2023, 2022, and 2021.

 Common Stock
 Treasury Stock
 Additional Paid-in Capital
 Accumulated Other Comprehensive Loss
 Accumulated Deficit
 Total Stockholders' Equity (Deficit)

 Shares

 (in $000s, except share data)
 Common
 Treasury

 Balance, December 31, 2020
 49,156,753
 —
 $
 $
 —
 $
 429,748
 $
 —
 $
 ( 465,989)
 $
 ( 36,236)

 —
 —
 —
 —
 —
 —

 1,501,659
 ( 318,086)
 —
 ( 3,020)
 19,839
 —
 —
 16,819

 Warrants liability reclassification
 —
 —
 —
 —
 ( 10,290)
 —
 —
 ( 10,290)

 Shares issued in business combination
 196,700,000
 —
 —
 1,064,529
 —
 —
 1,064,549

 Balance, December 31, 2021
 247,358,412
 ( 318,086)
 $
 $
 ( 3,020)
 $
 1,503,826
 $
 —
 $
 ( 647,490)
 $
 853,341

 —
 —
 —
 —
 —
 —

 Other comprehensive loss
 —
 —
 —
 —
 —
 —

 Common stock repurchase
 —
 ( 1,657,635)
 —
 ( 10,483)
 —
 —
 —
 ( 10,483)

 952,692
 ( 265,348)
 —
 ( 2,034)
 12,492
 —
 —
 10,458

 Balance, December 31, 2022
 248,311,104
 ( 2,241,069)
 $
 $
 ( 15,537)
 $
 1,516,318
 $
 $
 ( 608,585)
 $
 883,274

 —
 —
 —
 —
 —
 —

 Other comprehensive income
 —
 —
 —
 —
 —
 2,969
 —
 2,969

 Common stock repurchase
 —
 ( 6,354,587)
 —
 ( 39,021)
 —
 —
 —
 ( 39,021)

 1,592,016
 ( 296,132)
 —
 ( 1,966)
 16,066
 —
 —
 14,100

 Balance, December 31, 2023
 249,903,120
 ( 8,891,788)
 $
 $
 ( 56,524)
 $
 1,532,384
 $
 ( 5,978)
 $
 ( 557,873)
 $
 912,034

 (b) Exhibits

 Exhibit No.

 Description

 3.1
 Third Amended and Restated Certificate of Incorporation of Custom Truck One Source, Inc. (Incorporated herein by reference to Annex A to Custom Truck One Source, Inc.'s Definitive Proxy Statement on Schedule 14A (File No. 001-38186) filed on April 28, 2023).

 3.2
 Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.2 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 4.1
 Indenture, dated as of April 1, 2021, by and among Nesco Holdings II, Inc., Wilmington Trust, National Association, as Trustee and Collateral Agent, and the Guarantors party thereto from time to time (Incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 4.2
 Form of 5.50% Senior Note due 2029 (included in Exhibit 4.1 hereto) (Incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 4.3*
 Description of the Registrant's Securities Registered under Section 12 of the Exchange Act

 10.1
 Revolving Credit Agreement, dated as of April 1, 2021, by and among Capitol Investment Merger Sub 2, LLC, NESCO Holdings II, Inc., the various lenders and issuing banks party thereto and Bank of America, N.A., as administrative agent, collateral agent and swingline lender (Incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 10.2
 Amendment No. 1 to Revolving Credit Agreement and U.S. ABL Security Agreement, dated as of July 1, 2021, by and among Capitol Investment Merger Sub 2, LLC, NESCO Holdings II, Inc., the other grantors party thereto, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent (Incorporated by reference to Exhibit 10.2 of the Company's Quarterly Report on Form 10-Q filed on August 8, 2023)

 10.3^
 Amendment No. 2 to Revolving Credit Agreement, dated as of March 27, 2023, by and among Capitol Investment Merger Sub 2, LLC, NESCO Holdings II, Inc., the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent (Incorporated by reference to Exhibit 10.3 of the Company's Quarterly Report on Form 10-Q filed on August 8, 2023)

 10.4
 Registration Rights Agreement, dated as of April 1, 2021, between Custom Truck One Source, Inc. and certain holders identified therein (Incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 10.5
 Second Amended and Restated Stockholders' Agreement, dated as of April 14, 2023, among Custom Truck One Source, Inc. and certain holders identified therein (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 001-38186) filed on April 14, 2023).

 10.6
 Corporate Advisory Services Agreement, dated as of April 1, 2021, between Custom Truck One Source, Inc. and Platinum Equity Advisors, LLC (Incorporated by reference to Exhibit 10.6 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 10.7+
 Custom Truck One Source, Inc. Amended and Restated 2019 Omnibus Incentive Plan (filed as Annex A to Custom Truck One Source, Inc.'s Definitive Proxy Statement on Schedule 14A filed June 10, 2021, File No. 001-38186, and incorporated herein by reference)

 10.8+
 Employment Agreement, dated November 2, 2021, by and between Fred Ross and Custom Truck One Source, Inc. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on November 8, 2021)

 10.9+
 Amended and Restated Employment Agreement, dated December 7, 2022, by and between Fred Ross and Custom Truck One Source, Inc. (Incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed on December 7, 2022)

 10.10+
 Form Indemnification Agreement (Incorporated by reference to Exhibit 10.7 of the Company's Current Report on Form 8-K filed on April 2, 2021)

 10.11+
 Employment Agreement, dated November 2, 2021, by and between Thomas "Smiley" Rich and Custom Truck One Source, Inc. (Incorporated by reference to Exhibit 10.15 of the Company's Annual Report on Form 10-K (File No. 001-38186) filed on March 16, 2022)

 10.12+
 Employment Agreement, dated November 2, 2021, by and between Joe Ross and Custom Truck One Source, Inc. (Incorporated by reference to Exhibit 10.16 of the Company's Annual Report on Form 10-K (File No. 001-38186) filed on March 16, 2022)

 10.13+
 Employment Agreement, dated August 2, 2022, by and between Christopher J. Eperjesy and Custom Truck One Source, Inc. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 001-38186) filed on August 4, 2022)

 10.14+
 Amended and Restated Employment Agreement, dated December 7, 2022, by and between Ryan McMonagle and Custom Truck One Source, Inc. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 001-38186) filed on December 7, 2022)

 10.15+
 Custom Truck One Source, Inc. 2022 Employee Stock Purchase Plan (filed as Annex A to Custom Truck One Source, Inc.'s Definitive Proxy Statement on Schedule 14A (File No. 001-38186) filed on May 2, 2022, and incorporated herein by reference)

 10.16+
 Form of Performance Stock Agreement (Incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 001-38186) filed on November 8, 2022)

 10.17+
 Form of Amended Performance Stock Agreement (Incorporated by reference to Exhibit 10.2 of the Company's Quarterly Report on Form 10-Q (File No. 001-38186) filed on November 8, 2022)

 10.18+
 Form of Restricted Stock Agreement (Incorporated by reference to Exhibit 10.18 of the Company's Annual Report on Form 10-K (File No. 001-38186) filed on March 16, 2022)

 10.19+
 Employment Agreement, by and between the Company and Raymond Todd Barrett, dated March 9, 2022 (Incorporated by reference to Exhibit 10.2 of the Company's Report on Form 8-K (File No. 001-38186) filed on April 26, 2022)

 10.20+
 Employment Agreement, by and between the Company and Paul M. Jolas, dated August 2, 2023 (Incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 001-38186) filed on November 7, 2023)

 21.1*
 Subsidiaries of the Company

 23.1*
 Consent of Ernst & Young LLP

 24.1*
 Power of attorney, pursuant to which amendments to this Form 10-K may be filed (included on the signature page contained in Part IV of the Form 10-K)

 31.1*
 Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 31.2*
 Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 32 **
 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 97.1*
 Policy for Recovery of Erroneously Awarded Compensation

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 * Filed herewith.
 ** This certificate is being furnished herewith solely to accompany the report pursuant to 18 U.S.C. 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
 The schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be provided to the SEC upon request.
 ^ Schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish a supplemental copy of any omitted schedule or attachment to the SEC upon request.
 + Management contract or compensatory plan.

 Item 16. Form 10-K Summary
 Not applicable.

 SIGNATURES

 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 CUSTOM TRUCK ONE SOURCE, INC.
 (Registrant)

 Date:
 /s/ Ryan McMonagle

 Ryan McMonagle, Chief Executive Officer

 Date:
 /s/ Christopher J. Eperjesy

 Christopher J. Eperjesy, Chief Financial Officer

 Date:
 /s/ R. Todd Barrett

 R. Todd Barrett, Chief Accounting Officer

 POWER OF ATTORNEY
 The undersigned directors and officers of CTOS hereby constitute and appoint Ryan McMonagle, Christopher J. Eperjesy, and R. Todd Barrett with full power to act as our true and lawful attorney-in-fact with full power to execute in our name and behalf in the capacities indicated below, this Annual Report on Form 10-K and any and all amendments thereto and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, and hereby ratify and confirm all that such attorneys-in-fact, or any of them, or their substitutes shall lawfully do or cause to be done by virtue hereof.
 In accordance with the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 Name
 Title
 Date

 /s/ Marshall Heinberg

 Chairman of the Board

 Marshall Heinberg

 /s/ David Glatt

 David Glatt

 /s/ David Wolf

 David Wolf

 /s/ Fred Ross
 Founder and Director

 Fred Ross

 Name
 Title
 Date

 /s/ Georgia Nelson

 Georgia Nelson

 /s/ Mary Jackson

 Mary Jackson

 /s/ Louis Samson

 Louis Samson

 /s/ Mark Ein

 Mark Ein

 /s/ Paul Bader

 Paul Bader

 /s/ Rahman D'Argenio

 Rahman D'Argenio

 /s/ Ryan McMonagle
 Chief Executive Officer and Director

 Ryan McMonagle

 /s/ Christopher J. Eperjesy
 Chief Financial Officer

 Christopher J. Eperjesy

 /s/ R. Todd Barrett
 Chief Accounting Officer

 R. Todd Barrett