Quest Resource (US:QRHC)2024-08-08 20:00Revenue 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]