Quest Resource (US:QRHC)2021-03-11 21:00Revenue and Profitability - Revenue for the year ended December 31, 2020 was $98.7 million, a decrease of $319,000, or 0.3%, compared to $99.0 million in 2019[138] - Gross profit increased by $329,000, or 1.8%, to $19.1 million for the year ended December 31, 2020, with a gross margin of 19.3% compared to 18.9% in 2019[141] - Net income for the year ended December 31, 2020 was $1.0 million, compared to a net loss of $55,000 in 2019[151] - Adjusted EBITDA for the year ended December 31, 2020 was $4.45 million, compared to $3.33 million in 2019[155] Expenses and Financial Obligations - Operating expenses increased by $174,000 to $18.3 million in 2020, primarily due to increases in stock-related compensation and acquisition-related expenses[143] - Interest expense increased to $702,000 in 2020 from $432,000 in 2019, primarily due to increased debt related to the Green Remedies acquisition[147] - The company recorded a loss on extinguishment of debt of $168,000 in 2020[148] - The company intends to maintain a full valuation allowance on deferred tax assets until sufficient evidence supports a reversal of these allowances[150] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2020 were $7.5 million, up from $3.4 million as of December 31, 2019[156] - Net cash provided by operating activities increased to $3.1 million for the year ended December 31, 2020, compared to $2.3 million for the year ended December 31, 2019[164] - Cash used in investing activities rose to $506,000 in 2020 from $301,000 in 2019, primarily due to increased purchases of property and equipment[165] - Net cash provided by financing activities was $1.5 million for the year ended December 31, 2020, mainly from $3.0 million net proceeds from a registered direct offering[166] Debt and Credit Facilities - The company entered into a Credit Agreement providing a senior secured term loan facility of $11.5 million, maturing on October 19, 2025[159] - The Credit Agreement includes a delayed draw term loan facility of up to $12.5 million, available until October 19, 2021, for permitted acquisitions[160] - The Credit Agreement contains financial covenants, including a minimum fixed charge coverage ratio and a senior net leverage ratio, along with negative covenants limiting additional indebtedness and other transactions[162] Other Financial Information - Other income for 2020 was $1.4 million, representing proceeds from the Paycheck Protection Program, which were subsequently forgiven[146] - The company recorded a net income of $1,034,000 for the year ended December 31, 2020, which includes $1,408,000 from the use of PPP Loan proceeds[166] - The company performed its most recent goodwill impairment analysis in Q3 2020, with no impairment recorded, indicating that the fair value of goodwill exceeded its carrying value[174] - The company has no off-balance sheet debt or similar obligations, nor any transactions with related parties not disclosed in its financial statements[182]