Quest Resource (US:QRHC)2024-11-07 21:00Revenue 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]