Quest Resource (QRHC) - 2024 Q3 - Quarterly Results

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]