Executive Changes - Perry W. Moss has been appointed as the new Chief Executive Officer, effective immediately, bringing over 30 years of experience in business development and operations [2][5] - S. Ray Hatch is retiring as CEO after nine years but will remain on the Board of Directors, during which time the company experienced significant growth and expanded its service lines [3][6] Operational Initiatives - The company has launched an Operational Excellence Initiative, with Nick Ober joining as Senior Vice President of Operations to enhance operational capabilities [1][8] - Moss has implemented a metric-driven sales management process that has led to a record number of new client wins and improved revenue generation capabilities [4][5] Financial Performance - Quest Resource Holding Corporation announced its fourth quarter and full year 2024 earnings, indicating a focus on increasing efficiency and profitability [1] Strategic Vision - The company aims to improve customer experience, drive technology-enabled efficiencies, and expand profit margins under Moss's leadership [5][7] - Quest positions itself as a partner of choice for large enterprises seeking efficient waste management solutions while enhancing sustainability [7][8]

Core Insights - Quest Resource Holding Corporation added a record eight new customers in 2024, indicating a strong value proposition and growth in customer activity [1][5] - The company successfully refinanced its long-term debt, reducing annual interest expenses by approximately $1 million and improving credit terms [1][6] - Quest is implementing a 15% reduction in headcount and expects to lower selling, general, and administrative expenses by $3 million annually due to operational efficiency gains [1][8] Fourth Quarter 2024 Financial Highlights - Revenue for Q4 2024 was $70 million, a 0.9% increase compared to Q4 2023 [6] - Gross profit decreased by 6.7% to $10.7 million, resulting in a gross margin of 15.3% [6] - GAAP net loss per diluted share was $(0.46), compared to $(0.11) in Q4 2023 [6] - Adjusted EBITDA was $1.7 million, down from $3.5 million in Q4 2023 [6] Fiscal Year 2024 Financial Highlights - Total revenue for FY 2024 was $288.5 million, a slight increase of 0.1% compared to 2023 [6] - Gross profit for the year was $50 million, also a 0.1% decrease from the previous year [6] - GAAP net loss per diluted share for the year was $(0.73), compared to $(0.36) in 2023 [6] - Adjusted EBITDA for FY 2024 was $14.5 million, down from $16.2 million in 2023 [6] Strategic Developments - The company secured eight new client wins, each expected to generate at least seven figures in annual revenue, marking the highest number of new client acquisitions in a single year [6][8] - Five expansion service agreements were secured with existing large clients, enhancing revenue potential [6] - The addition of over 1,200 vendors to the service platform is expected to broaden client service capabilities [6] Management Changes - Perry Moss has been appointed as CEO, and Nick Ober has joined as Senior Vice President of Operations, both expected to drive operational improvements [1][11]

Company Overview - Quest Resource Holding Corporation is a national leader in environmental waste and recycling services, helping larger businesses achieve their environmental and sustainability goals [4]. Upcoming Financial Results - Quest will release its fourth quarter and fiscal year results for the period ended December 31, 2024, on March 12, 2025, after market close [1]. - A conference call will be held on the same day at 5:00 PM ET to discuss the financial results and business outlook [2]. Access to Information - Investors can participate in the conference call by dialing specific numbers or accessing a listen-only webcast on Quest's investor relations website [2]. - The webcast will be archived for at least 90 days, and a telephonic playback will be available shortly after the conference call [3].

Core Viewpoint - Quest Resource Holding Corporation has successfully completed its refinancing process, amending its financing agreements with Monroe Capital Management Advisors and PNC Bank, which strengthens its balance sheet and supports long-term growth strategies [1][2][6]. Financing Agreements Summary - The amended credit agreement with Monroe Capital includes a $54 million aggregate principal amount of term loan, an extended maturity date to June 2030, and a reduced interest rate of SOFR plus 450 to 550 basis points, reflecting a margin reduction of 100 to 200 basis points from the previous agreement [8]. - The amended credit agreement with PNC Bank features an increased revolver commitment from $35 million to $45 million, an extended maturity date to December 2029, and a reduced interest rate of SOFR plus 200 basis points, reflecting a margin reduction of 25 basis points from the previous agreement [9]. Company Overview - Quest is a national provider of waste and recycling services, helping larger businesses achieve their environmental and sustainability goals through tailored solutions that generate measurable results [3]. - The company offers expertise across multiple industry sectors, providing data and information that track environmental results and improve business operations [3]. Leadership Insights - The President and CEO highlighted the benefits of the refinancing, including a substantial reduction in interest expenses and improved terms, which reflect the company's strong credit profile and business model [2]. - The Chairman of the Board noted that the new lending package will decrease the blended interest rate margin by about 150 basis points, resulting in an annual reduction of approximately $1 million in interest expenses [6]. - The CFO expressed appreciation for the support from PNC and Monroe, emphasizing their confidence in the company's future [7].

Core Insights - Quest Resource Holding Corporation has entered into a partnership with Stonebriar Auto Services to implement waste and recycling solutions across its facilities, enhancing operational efficiency and sustainability goals [2][4][6] Company Overview - Quest Resource Holding Corporation is a national provider of waste and recycling services, focusing on helping larger businesses achieve their environmental and sustainability objectives [7] - Stonebriar Auto Services, founded in late 2019, operates Jiffy Lube locations nationwide and is committed to operational excellence and customer service [5][8] Partnership Details - The collaboration aims to improve waste management operations at Stonebriar Auto Services, utilizing Quest's expertise in handling diverse waste streams, including oil, oil filters, tires, and antifreeze [6] - Quest's solutions are designed to provide operational improvements and cost efficiencies, aligning with Stonebriar's strategy to enhance service delivery [4][6] Strategic Goals - The partnership is expected to deliver substantial operational, cost, and sustainability benefits, particularly for businesses with complex waste streams [6] - Data-driven insights from Quest will enable Stonebriar to continuously enhance its waste and recycling programs, contributing to safer and cleaner facilities [6]

Core Insights - Quest Resource Holding Corporation has confirmed a partnership with Stonebriar Auto Services to enhance waste and recycling services across Stonebriar's service locations [1][5] - The collaboration aims to improve operational efficiency and sustainability goals for Stonebriar Auto Services while providing superior service experiences to clients [2][3] Company Overview - Quest Resource Holding Corporation is a national provider of waste and recycling services, focusing on helping larger businesses achieve their environmental and sustainability objectives [6] - Stonebriar Auto Services, founded in late 2019, operates Jiffy Lube locations nationwide and is committed to operational excellence and customer service [4][7] Partnership Details - Quest will deliver comprehensive waste and recycling solutions tailored to the needs of Stonebriar Auto Services, addressing various waste streams including oil, oil filters, tires, and antifreeze [3][5] - The partnership is expected to yield operational improvements, cost efficiencies, and enhanced sustainability outcomes for both organizations [5][6] Strategic Goals - The collaboration will leverage data-driven insights from Quest to continuously enhance waste and recycling programs, contributing to safer and healthier facilities for clients and communities [5] - Quest's solutions are designed to support businesses with complex waste streams, providing significant operational and sustainability benefits [5][6]

Quest Resource (QRHC) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -700%. A quarter ago, it was expected that this recycling company would post a loss of $0.01 per share when it actually produced a loss of $0.07, delivering a surprise of -600%.Over the last four quarters, the company has s ...

Revenue Performance - Revenue for Q3 2024 was $72.8 million, an increase of $2.4 million, or 3.3%, compared to $70.4 million in Q3 2023[50] - Revenue for the nine months ended September 30, 2024, was $218.6 million, a decrease of $0.4 million, or 0.2%, compared to $219.0 million in the same period of 2023[50] - The company experienced a decrease in revenue of approximately $33 million for the nine months ended September 30, 2024, due to lower volumes from lost customers[50] Profitability - Gross profit for Q3 2024 was $11.7 million, compared to $12.4 million in Q3 2023, with a gross profit margin of 16.1%[51] - Adjusted EBITDA for Q3 2024 decreased by 31.7% to $2.5 million from $3.7 million in Q3 2023[58] - For the nine months ended September 30, 2024, Adjusted EBITDA increased by 0.5% to $12.8 million compared to $12.7 million in the same period of 2023[58] - Adjusted net loss for Q3 2024 was $(1.1) million, a decline from an adjusted net income of $0.5 million in Q3 2023[60] - For the nine months ended September 30, 2024, adjusted net income was $1.2 million, down from $2.7 million in the same period of 2023[60] Expenses - Operating expenses for Q3 2024 were $12.6 million, compared to $12.0 million in Q3 2023, primarily due to increases in labor-related expenses[52] - Cost of revenue for Q3 2024 increased to $61.1 million from $58.0 million in Q3 2023[51] - Interest expense for Q3 2024 was $2.7 million, compared to $2.4 million in Q3 2023, primarily due to increased borrowings[54] Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2024 was $(1.3) million, compared to net cash provided of $6.7 million in the same period of 2023[65] - Cash used in investing activities for the nine months ended September 30, 2024 was $(5.2) million, primarily for the purchase of compactors and related equipment[67] - Net cash provided by financing activities for the nine months ended September 30, 2024 was $7.3 million, mainly from net borrowings of $5.3 million on the ABL Facility[68] - As of September 30, 2024, the company had $1.1 million in cash and cash equivalents, up from $0.3 million at the end of 2023[63] - Working capital increased to $22.0 million as of September 30, 2024, compared to $15.7 million at the end of 2023[63] - The company believes existing cash and cash equivalents, along with borrowing availability, will be sufficient to fund operations for the next 12 months[63] Net Loss - Net loss for Q3 2024 was $(3.4) million, compared to a net loss of $(2.1) million in Q3 2023[56] - Net loss per share for Q3 2024 was $(0.16), compared to $(0.10) for Q3 2023[57] - The company recorded a provision for income tax of $0.5 million for the nine months ended September 30, 2024, compared to $0.7 million for the same period in 2023[55]

Financial Performance - Revenue for Q3 2024 was $72.8 million, a 3.3% increase compared to Q3 2023[2] - Gross profit for Q3 2024 was $11.7 million, a 5.9% decrease compared to Q3 2023, resulting in a gross margin of 16.1%[2] - GAAP net loss for Q3 2024 was $(3.4) million, compared to a net loss of $(2.1) million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $2.5 million, down from $3.7 million in Q3 2023[2] - Year-to-date revenue as of September 30, 2024, was $218.6 million, a 0.2% decrease compared to the same period in 2023[3] - Adjusted net loss per diluted share for Q3 2024 was $(0.06), compared to adjusted net income of $0.02 per diluted share in Q3 2023[2] - The company anticipates year-over-year increases in revenue and profitability in Q4 2024 due to the ramp-up of new business[1] Client Acquisition and Business Development - The company secured new clients in food distribution and automotive service, each expected to generate seven figures of annual revenue[5] Operational Changes - The implementation of a new automated vendor management system has led to increased efficiencies but also higher than expected costs during the transition[1] Debt and Financial Strategy - The company is in the final stages of refinancing its debt, expected to be completed by the end of 2024, which will result in reduced interest expenses[1] Balance Sheet Highlights - Total current assets increased to $64,568,000 as of September 30, 2024, compared to $60,613,000 as of December 31, 2023, reflecting a growth of approximately 6.4%[14] - Total liabilities rose to $115,387,000 as of September 30, 2024, up from $110,838,000 as of December 31, 2023, indicating an increase of about 4.7%[15] - Stockholders' equity decreased to $62,768,000 as of September 30, 2024, down from $66,281,000 as of December 31, 2023, representing a decline of approximately 5.7%[16] - Cash and cash equivalents significantly increased to $1,133,000 as of September 30, 2024, compared to $324,000 as of December 31, 2023, marking a substantial growth of over 250%[14] - Accounts receivable rose to $60,125,000 as of September 30, 2024, from $58,147,000 as of December 31, 2023, reflecting an increase of about 3.4%[14] - Current liabilities decreased to $42,540,000 as of September 30, 2024, down from $44,925,000 as of December 31, 2023, showing a reduction of approximately 5.3%[15] - Goodwill remained stable at $85,828,000 for both September 30, 2024, and December 31, 2023, indicating no change[14] - Additional paid-in capital increased to $178,351,000 as of September 30, 2024, compared to $176,309,000 as of December 31, 2023, reflecting a growth of about 1.2%[16] - The accumulated deficit increased to $(115,603,000) as of September 30, 2024, from $(110,048,000) as of December 31, 2023, indicating a worsening of approximately 5%[16] - Total assets slightly increased to $178,155,000 as of September 30, 2024, compared to $177,119,000 as of December 31, 2023, showing a marginal growth of about 0.6%[14]

New client onboarding progressing as expected, with third-quarter revenue run rate from new client wins secured during 2024 achieving approximately 60% of expected fully ramped run rate New automated vendor management system is demonstrating increased efficiencies and improved service levels but has temporarily resulted in higher-than-expected costs in support of the transition Pace of new client wins continues with significant new client wins in food distribution and automotive service end markets THE COLO ...