Custom Truck One Source, Inc. (NYSE: CTOS) announced on Monday the resignation of Board of Directors member Rahman D’Argenio, effective as of Tuesday last week.
The departure of D’Argenio, who was a designee of Energy Capital Partners (ECP) under the Stockholders' Agreement dated April 1, 2021, was not due to any disagreements with the company's operations, policies, or practices, the company said in a disclosure.
The company, headquartered in Kansas City, Missouri, and operating within the equipment rental and leasing industry, confirmed that ECP, which retains the right to designate a replacement for D’Argenio, currently has no plans to appoint a new candidate. Following the resignation, the Board has decided to decrease its size from eleven to ten members.
This adjustment to the board's composition and the reduction in its size were formally reported in a filing with the Securities and Exchange Commission dated August 20, 2024.
In other recent news, Custom Truck One Source has significantly expanded its credit facility from $750 million to $950 million. This move is expected to provide the company with enhanced financial flexibility to support its operations and strategic initiatives. The company has also reported an EBITDA of $80.1 million, below estimates from DA Davidson and the consensus, with sequential revenue growth and adjusted EBITDA growth observed. However, due to market challenges such as supply chain disruptions and high interest rates, the company revised its full-year guidance downward.
Following these developments, both Oppenheimer and DA Davidson adjusted their price targets for Custom Truck One Source, with the former reducing it to $6.00 from $7.00 and the latter to $9.00 from $10.00. These adjustments were influenced by the company's recent earnings release and challenges in its Transmission business due to project delays and supply-chain issues. Despite the current headwinds, the company remains optimistic about its future, projecting improvements in the latter half of the year and a focus on generating positive free cash flow for 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.