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 ...

Revenue Performance - Revenue for Q2 2024 was $73.1 million, a decrease of $1.4 million, or 1.8%, compared to $74.5 million in Q2 2023[75] - For the first half of 2024, revenue was $145.8 million, down $2.8 million, or 1.9%, from $148.6 million in the same period of 2023[75] - The decline in revenue for Q2 2024 was primarily due to lower volumes from four customers, resulting in a revenue decrease of approximately $11 million[76] Profitability Metrics - Gross profit for Q2 2024 was $13.5 million, with a gross profit margin of 18.5%, compared to 18.1% in Q2 2023[79] - Adjusted EBITDA for Q2 2024 increased 2.1% to $5.1 million from $5.0 million in Q2 2023[91] - Adjusted EBITDA for Q2 2024 was $5.14 million, compared to $5.03 million in Q2 2023, reflecting an increase of 2.1%[93] - Adjusted net income for Q2 2024 was $0.7 million, down from $1.5 million in Q2 2023, representing a decline of 53.3%[94] Net Loss and Expenses - Net loss for Q2 2024 was $(1.5) million, compared to a net loss of $(0.9) million in Q2 2023[87] - Operating expenses for Q2 2024 were $11.8 million, slightly higher than $11.7 million in Q2 2023[81] - Selling, general, and administrative expenses increased to $9.4 million in Q2 2024 from $9.2 million in Q2 2023, primarily due to labor-related expenses[82] - Net loss for Q2 2024 was $(1.51) million, compared to a net loss of $(0.89) million in Q2 2023, indicating a deterioration in performance[94] Cash Flow and Liquidity - Cash and cash equivalents increased to $1.0 million as of June 30, 2024, up from $0.3 million at the end of 2023[95] - Net cash used in operating activities for the first half of 2024 was $(0.8) million, compared to net cash provided of $6.3 million in the same period of 2023[100] - Cash used in investing activities for the first half of 2024 was $(4.8) million, primarily for the purchase of compactors and related equipment[101] - Net cash provided by financing activities for the first half of 2024 was $6.3 million, mainly from borrowings of $4.0 million on the ABL Facility[102] - Working capital increased to $21.6 million as of June 30, 2024, compared to $15.7 million at the end of 2023[95] - The company expects existing cash and cash equivalents, along with borrowing availability, to be sufficient to fund operations for the next 12 months[98] - The company has no off-balance sheet debt or similar obligations[107] Taxation - The company recorded a provision for income tax of $684,113 for Q2 2024, significantly higher than $170,779 in Q2 2023[85] - Interest expense for Q2 2024 was $2.6 million, consistent with Q2 2023, reflecting increases in base interest rates[84]