Quest Resource Holding Corporation (NASDAQ:QRHC) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET Company Participants Dave Mossberg – Investor Relations Ray Hatch – President and Chief Executive Officer Brett Johnston – Chief Financial Officer Conference Call Participants Aaron Spychalla – Craig-Hallum Gregg Kitt – Pinnacle Fund Gerry Sweeney – ROTH Capital George Melas – MKH Management Operator Good day, and welcome to the Quest Resource Holding Corporation Third Quarter 2022 Earnings Call. T ...

Revenue and Profit - For the quarter ended September 30, 2022, revenue was $73.4 million, an increase of $36.0 million, or 96%, compared to $37.4 million for the same quarter in 2021[91]. - For the nine months ended September 30, 2022, revenue was $221.8 million, an increase of $112.5 million, or 103%, compared to $109.3 million for the same period in 2021[92]. - Gross profit for the quarter ended September 30, 2022 was $12.2 million, an increase of $5.3 million compared to $6.9 million for the same quarter in 2021, with a gross profit margin of 16.6%[94]. - Gross profit for the nine months ended September 30, 2022 was $38.1 million, an increase of $18.0 million compared to $20.1 million for the same period in 2021, with a gross profit margin of 17.2%[94]. - Adjusted EBITDA increased by 57% to $3.8 million for the quarter ended September 30, 2022, compared to $2.5 million for the same period in 2021[106]. Expenses - Operating expenses for the quarter ended September 30, 2022 were approximately $11.8 million, an increase of $6.0 million compared to $5.8 million for the same quarter in 2021[96]. - Selling, general, and administrative expenses for the quarter ended September 30, 2022 were $9.3 million, an increase of approximately $4.0 million compared to $5.3 million for the same quarter in 2021[97]. - Cost of revenue for the quarter ended September 30, 2022 was $61.2 million, an increase of $30.7 million compared to $30.5 million for the same quarter in 2021[93]. - Operating expenses for the quarter ended September 30, 2022, increased by approximately $2.0 million to $2.5 million, primarily due to acquired business operations[98]. - Interest expense rose to $1.9 million for the quarter ended September 30, 2022, an increase of approximately $1.4 million compared to $543,000 in the same quarter of 2021[99]. Net Income and Loss - Net loss for the quarter ended September 30, 2022, was $(1.7) million, compared to net income of $386,000 for the same quarter in 2021[102]. - Adjusted net income for the quarter ended September 30, 2022, was $863,000, down from $1.2 million for the same quarter in 2021[110]. - Net loss for the nine months ended September 30, 2022, was $(2.7) million, with non-cash items of $10.7 million primarily related to depreciation and stock-based compensation[119]. - Net income for the same period in 2021 was $2.2 million, with non-cash items of $3.3 million[119]. Cash Flow and Investments - Cash used in investing activities for the nine months ended September 30, 2022, was $4.4 million, primarily due to the $3.1 million net purchase of assets from an independent environmental services company[117]. - Net cash provided by financing activities for the nine months ended September 30, 2022, was $7.4 million, compared to $1.1 million for the same period in 2021[118]. - As of September 30, 2022, the company had $7.1 million in cash and cash equivalents, down from $8.4 million as of December 31, 2021[111]. - Net cash used in the change in operating assets and liabilities was $(12.3) million for 2022, primarily due to changes in accounts receivable and accounts payable[119]. Economic and Operational Factors - The increase in revenue for the quarter was primarily due to heightened customer production levels and revenue of $26.5 million from the acquired customer base related to business acquisitions[91]. - The impact of the COVID-19 pandemic and global economic trends has created uncertainty regarding future operational and financial performance[87]. - The company experienced an increase in costs due to inflation and related increases in interest rates, which could adversely affect business results[90]. - There is uncertainty regarding future inflation and interest rate increases that may affect the company[120]. Accounting and Financial Policies - The company has flexible pricing structures to address inflationary cost increases, allowing recovery of certain costs from customers[120]. - There have been no changes in critical accounting policies during the first nine months of 2022[121]. - The company has no off-balance sheet debt or similar obligations[123]. - The company does not guarantee any third-party debt[123]. - The company evaluates estimates related to accounts receivable and intangible assets, which may significantly differ from actual amounts[121]. - No quantitative and qualitative disclosures about market risk are applicable[124].

Quest Resource Holding Corporation (NASDAQ:QRHC) Q2 2022 Earnings Conference Call August 15, 2022 5:00 PM ET Company Participants Dave Mossberg – Investor Relations Ray Hatch – President and Chief Executive Officer Laurie Latham – Chief Financial Officer Conference Call Participants Aaron Spychalla – Craig-Hallum Chip Moore – EF Hutton Gerry Sweeney – Roth Capital Gregg Kitt – Pinnacle Fund George Melas – MKH Management Operator Good day, ladies and gentlemen, and welcome to the Quest Resource Holding Corpo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Commission file number: 001-36451 Quest Resource Holding Corporation (Exact Name of Registrant as Specified in its Charter) Nevada 51-0665952 (State or other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 3481 Plano Parkway The Colony, Texas 75056 (Address o ...

Quest Resource Holding Corporation (NASDAQ:QRHC) Q1 2022 Earnings Conference Call May 16, 2022 5:00 PM ET Company Participants Dave Mossberg - Investor Relations Ray Hatch - Chief Executive Officer Laurie Latham - Chief Financial Officer Conference Call Participants Aaron Spychalla - Craig Hallum Gerrard Sweeney - ROTH Capital Chip Moore - EF Hutton Sameer Joshi - HC Wainwright Gregg Kitt - Pinnacle Fund Nelson Obus - Wynnefield Capital Operator Good day, and welcome to the Quest Resource Holding Corporati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Commission file number: 001-36451 Quest Resource Holding Corporation (Exact Name of Registrant as Specified in its Charter) Nevada 51-0665952 (State or other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 3481 Plano Parkway The Colony, Texas 75056 (Address ...

INVESTOR PRESENTATION Quest Resource Holding Corporation (NASDAQ: QRHC) March 2022 NATIONAL PROVIDER OF WASTE & RECYCLING SOLUTIONS © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. SEC SAFE HARBOR The statements contained in this Investor Presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act ...

Quest Resource Holding Corporation (NASDAQ:QRHC) Q4 2021 Earnings Conference Call March 17, 2022 5:00 PM ET Company Participants Joe Noyons - IR Ray Hatch - President and CEO Laurie Latham - CFO Conference Call Participants Gerrard Sweeney - ROTH Capital Aaron Spychalla - Craig-Hallum Amit Dayal - H.C. Wainwright Nelson Obus - Wynnefield Capital Gregg Kitt - Pinnacle Fund George Melas - MKH Management Operator Good day, and welcome to the Quest Resource Holding Corporation Fourth Quarter and Year-End 2021 E ...

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, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to Securities registered pursuant to Section 12(b) of the Act: Commission file number 001-36451 | | Trading | | | --- | --- | --- | | Title of each class | Symbol | Name of each ...

Financial Data and Key Metrics Changes - Third quarter revenue was $37.4 million, an increase of 58% compared to the same period last year [6] - Gross profit dollars increased by 50.4% to $6.9 million, with organic growth contributing more than half of this increase [6][10] - Adjusted EBITDA for the quarter was $2.5 million, reflecting a 148% year-over-year increase [10] - Net income attributable to common stockholders was $0.02 per diluted share, compared to a net loss of $0.02 per diluted share for the same period last year [10] Business Line Data and Key Metrics Changes - Gross margin for the third quarter was 18.3% of revenue, which was 90 basis points lower than last year but within the targeted range [7] - SG&A expenses were $5.3 million, an increase of $1 million compared to the same period last year, primarily due to business recovery and acquisition-related costs [8][9] Market Data and Key Metrics Changes - The grocery market remained stable, while retail showed modest recovery, although foot traffic is still down significantly from pre-pandemic levels [13] - Demand for automotive repair and maintenance services improved, with miles driven flat compared to 2019 [13] - Industrial market activity levels normalized during the third quarter after a significant increase in the first half of 2021 [15] Company Strategy and Development Direction - The company continues to focus on managing the business to grow gross profit dollars, which is the key metric for success [4] - A disciplined M&A strategy contributed to growth, with expectations for acquisitions to be a meaningful part of growth in the coming years [18] - Investments in technology and personnel are being made to enhance capabilities and scalability [19] Management's Comments on Operating Environment and Future Outlook - Management expects year-over-year growth in gross profit dollars to continue into the fourth quarter and beyond [15][21] - Inflation is viewed as net neutral due to contract mechanisms that allow for adjustments [20] - The company is optimistic about strong growth and gross profit delivery in the upcoming quarters [21] Other Important Information - The company generated $3.4 million in operating cash flow for the nine months of 2021, with a cash balance of $9.1 million at the end of the quarter [11] - Debt levels remained relatively unchanged at $19 million [11] Q&A Session Summary Question: How does the new large industrial customer compare to previous large wins in terms of gross margin or gross profit dollar contribution? - Management does not comment on gross profit dollars per customer but expects this customer to contribute significantly [23] Question: Is the hiring of new employees the only factor driving SG&A up sequentially this year? - Acquisition activity and business growth are the two main drivers affecting SG&A costs [26][27] Question: Will the new acquisition contribute gross profit dollars similar to current margins? - The new acquisition is expected to have gross profit dollars similar to existing operations, with a contribution of approximately $400,000 to EBITDA [30][31]