Quest Resource (QRHC)2025-03-13 07:48Financial Data and Key Metrics Changes - Revenue for Q4 2024 was 10.7 million [33] - Adjusted EBITDA for Q4 2024 would have been approximately 15 million in net incremental revenue from new client wins achieved during 2024 [32] Market Data and Key Metrics Changes - Weak market conditions in the industrial end markets are expected to continue impacting volumes for at least the next two quarters [30] - The company noted that the relationship with industrial clients remains strong, with opportunities to add services in the long term [30] Company Strategy and Development Direction - The company is focused on reducing costs, implementing process improvements, and increasing accountability to enhance performance [12] - A new operational leadership team has been established to drive operational excellence and improve workflow efficiency [61] - The company is committed to maintaining a solid balance sheet and prioritizing capital allocation towards debt repayment [64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that performance over the last couple of years has been unacceptable and emphasized the need for operational excellence [50] - The company expects to show both top and bottom-line growth in 2025, with improvements anticipated in the second half of the year [65] - Management is optimistic about the future, citing a robust pipeline and strong client referrals [64] Other Important Information - The company has refinanced its debt, reducing interest expenses by approximately 5.5 million was recognized related to the sale of client contracts for the mall and shopping center portion of the business [43] Q&A Session Summary Question: Can you talk about the vendor management system and its rollout? - The vendor management program is substantially complete, with ongoing improvements and expected cost savings flowing through [71][72] Question: Is the attrition stabilizing? - Yes, most attrition was related to the mall business and M&A activity, and the company believes client stickiness remains strong [80] Question: What is the outlook for the industrial market? - The company expects challenges in the industrial market for the next couple of quarters but sees signs of optimism for a pickup in the second half of the year [78] Question: How is the sales pipeline looking? - The sales pipeline has grown significantly, and the company remains bullish on future deal flow [84] Question: What are the expected proceeds from the sale of the RWS tenant billing business? - The business is a non-contributor, and while specific proceeds cannot be disclosed yet, the sale is expected to improve operational focus [88] Question: What is the focus on M&A in the near term? - The company is focused on operational improvements and debt repayment, with M&A being a lower priority for the immediate future [126] Question: What does top and bottom-line growth in 2025 mean? - The company expects growth over 2024 figures, particularly in revenue, gross profit, and adjusted EBITDA [134]