• Quest Resource Holding Corporation Reports First Quarter 2022 Financial Results

    المصدر: Nasdaq GlobeNewswire / 16 مايو 2022 16:00:00   America/New_York

    THE COLONY, Texas, May 16, 2022 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ: QRHC) ("Quest" or the “Company”), a national leader in environmental waste and recycling services, today announced financial results for the first quarter ended March 31, 2022.

    First Quarter 2022 Highlights

    • Revenue was $71.5 million, a 103.8% increase compared with the first quarter of 2021.
    • Gross profit was $11.2 million, a 74.7% increase compared with the first quarter of 2021.
    • GAAP net loss per share attributable to common stockholders was ($0.11) per basic and diluted share, compared with net income of $0.06 per basic and diluted share during the first quarter of 2021.
    • Adjusted EBITDA was $3.7 million, a 42.2% increase compared with the first quarter of 2021.
    • Adjusted net income per diluted share was $0.06, compared with $0.07 per diluted share during the first quarter of 2021. 

    “We delivered another quarter of solid financial performance with strong growth in gross profit dollars coming from onboarding new customers, expansion with existing customers, as well as from acquisitions,” said S. Ray Hatch, President and Chief Executive Officer of the Company. “Our customer value proposition is resonating well, demand for cost-effective sustainability solutions is increasing, and our pipeline of prospects is robust and expanding. We have been busy integrating recent acquisitions and see several opportunities to cross-sell services, as well as opportunities to improve operational and financial performance of the acquired businesses by leveraging the capabilities of our platform. We are investing in talent acquisition as well as technology and process improvements to drive future growth and improve the efficiency and scalability of our platform. We expect continued momentum in 2022 and the next several years from both organic and acquisitive sources.”

    First Quarter 2022 Earnings Conference Call and Webcast

    Quest will conduct a conference call Monday, May 16, 2022, at 5:00 PM ET, to review the Company's financial results and business outlook. Investors interested in participating on the live call can dial 1-800-289-0438 within the U.S. or 1-323-794-2423 from abroad, referencing conference ID: 7088790. The conference call, which may include forward-looking statements, is also being webcast and is available via the investor relations section of Quest’s website at https://investors.qrhc.com. A replay of the webcast will be archived on Quest’s investor relations website for 90 days.

    Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

    In this press release, non-GAAP financial measures, "Adjusted EBITDA," and “Adjusted Net Income” are presented. From time-to-time, Quest considers and uses these supplemental measures of operating performance in order to provide an improved understanding of underlying performance trends. Quest believes it is useful to review, as applicable, both (1) GAAP measures that include (i) depreciation and amortization, (ii) interest expense, (iii) stock-based compensation expense, (iv) income tax expense, and (v) certain other adjustments, and (2) non-GAAP measures that exclude such items. Quest presents these non-GAAP measures because it considers it an important supplemental measure of Quest's performance. Quest's definition of these adjusted financial measures may differ from similarly named measures used by others. Quest believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company's GAAP measures. (See attached tables "Reconciliation of Net Income (Loss) to Adjusted EBITDA." and “Adjusted Net Income Per Share”).

    About Quest Resource Holding Corporation

    Quest is a national provider of waste and recycling services that enable larger businesses to excel in achieving their environmental and sustainability goals and responsibilities. Quest delivers focused expertise across multiple industry sectors to build single-source, client-specific solutions that generate quantifiable business and sustainability results. Addressing a wide variety of waste streams and recyclables, Quest provides information and data that tracks and reports the environmental results of Quest’s services, gives actionable data to improve business operations, and enables Quest’s clients to excel in their business and sustainability responsibilities. For more information, visit www.qrhc.com.

    Safe Harbor Statement

    This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our expectation of continued momentum in 2022 and the next several years from both organic and acquisitive sources. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, competition in the environmental services industry, the impact of the current economic environment and the potential effect of inflationary pressures and increased interest rates on our costs of doing business, the spread of major epidemics (including Coronavirus) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, commodity price fluctuations, and extended shut down of businesses, and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including our Report on Form 10-K for the year ended December 31, 2021. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

    Investor Relations Contact:

    Three Part Advisors, LLC
    Joe Noyons
    817.778.8424

    Financial Tables Follow

    Quest Resource Holding Corporation and Subsidiaries
    STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)

      Three Months Ended
      March 31,
      2022
      2021 
       (Unaudited)
    Revenue $71,522  $35,102 
    Cost of revenue  60,274   28,662 
    Gross profit  11,248   6,440 
    Selling, general, and administrative  9,344   4,263 
    Depreciation and amortization  2,365   407 
    Total operating expenses  11,709   4,670 
    Operating income (loss)  (461)  1,770 
    Interest expense  (1,556)  (561)
    Income (loss) before taxes  (2,017)  1,209 
    Income tax expense  167   62 
    Net income (loss) $(2,184) $1,147 
           
    Net income (loss) applicable to common stockholders $(2,184) $1,147 
    Net income (loss) per common share:      
    Basic $(0.11) $0.06 
    Diluted $(0.11) $0.06 
             
    Weighted average number of common shares outstanding:        
    Basic  19,245   18,505 
    Diluted  19,245   19,413 

    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
    (Unaudited)
    (In thousands)

      Three Months Ended
      March 31,
      2022  2021
    Net income (loss) $(2,184)  $1,147 
    Depreciation and amortization  2,437    476 
    Interest expense  1,556    561 
    Stock-based compensation expense  259    310 
    Acquisition, integration, and related costs  1,306    19 
    Other adjustments  196    53 
    Income tax expense  167    62 
    Adjusted EBITDA $3,737   $2,628 

    ADJUSTED NET INCOME PER SHARE
    (Unaudited)
    (In thousands)

      Three Months Ended
      March 31,
      2022  2021
    Reported net income (loss) (1) $(2,184) $1,147 
    Amortization of intangibles (2)  2,174   289 
    Acquisition, integration, and related costs (3)  1,306   19 
    Adjusted net income $1,296  $1,455 
             
    Diluted earnings per share:        
    Reported net income (loss) $(0.11) $0.06 
    Adjusted net income $0.06  $0.07 
             
    Weighted average number of common shares outstanding:        
    Diluted (4)  21,716   19,413 
             
    (1) Applicable to common stockholders        
    (2) Reflects the elimination of non-cash amortization of acquisition-related intangible assets        
    (3) Reflects the add back of acquisition/integration related transaction costs        
    (4) Reflects adjustment for dilution as adjusted net income is positive

    BALANCE SHEETS
    (In thousands, except per share amounts)

     March 31,  December 31,
     2022  2021
      (Unaudited)     
    ASSETS       
    Current assets:       
    Cash and cash equivalents$7,922  $8,428 
    Accounts receivable, less allowance for doubtful accounts of $1,054 46,562   39,949 
    and $841 as of March 31, 2022 and December 31, 2021, respectively  
    Prepaid expenses and other current assets 2,008   1,952 
        Total current assets 56,492   50,329 
            
    Goodwill 81,165   80,622 
    Intangible assets, net 39,717   39,119 
    Property and equipment, net, and other assets 5,395   5,596 
        Total assets$182,769  $175,666 
            
    LIABILITIES AND STOCKHOLDERS’ EQUITY       
    Current liabilities:       
    Accounts payable and accrued liabilities$34,862  $30,196 
    Other current liabilities 7,046   6,195 
    Current portion of notes payable 1,644   1,329 
        Total current liabilities 43,552   37,720 
            
    Notes payable, net 65,716   62,409 
    Other long-term liabilities 1,798   1,909 
        Total liabilities 111,066   102,038 
            
    Commitments and contingencies       
            
    Stockholders’ equity:       
    Preferred stock, $0.001 par value, 10,000 shares authorized, no     
    shares issued or outstanding as of March 31, 2022 and December 31, 2021  
    Common stock, $0.001 par value, 200,000 shares authorized, 19   19 
    19,046 shares issued and outstanding as of March 31, 2022 and December 31, 2021  
    Additional paid-in capital 170,577   170,318 
    Accumulated deficit (98,893  (96,709)
        Total stockholders’ equity 71,703   73,628 
        Total liabilities and stockholders’ equity$182,769  $175,666 
             
                    

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