• Quest Resource Holding Corporation Reports Fourth Quarter and 2021 Financial Results

    المصدر: Nasdaq GlobeNewswire / 17 مارس 2022 16:10:00   America/New_York

    THE COLONY, Texas, March 17, 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 fourth quarter and year ended December 31, 2021.

    Fourth Quarter 2021 Highlights

    • Revenue was $46.4 million, a 67.7% increase compared with the fourth quarter of 2020.
    • Gross profit was $8.7 million, a 56.2% increase compared with the fourth quarter of 2020.
    • Gross margin was 18.8% of revenue compared with 20.2% during the fourth quarter of 2020.
    • GAAP net loss per share attributable to common stockholders was ($0.03) per basic and diluted share, compared with net income of $0.01 per basic and diluted share during the fourth quarter of 2020.
    • Adjusted EBITDA was $3.3 million, an 83.8% increase compared with the fourth quarter of 2020.
    • Adjusted net income per diluted share increased to $0.08, compared with $0.03 per diluted share during the fourth quarter of 2020. 

    Year Ended December 31, 2021 Highlights

    • Revenue was $155.7 million, a 57.8% increase compared with 2020. 
    • Gross profit was $28.8 million, a 51.3% increase compared with 2020. 
    • Gross margin was 18.5% of revenue compared with 19.3% for 2020. 
    • GAAP net income per share attributable to common shareholders increased to $0.09 ($0.08 per diluted share), compared with $0.05 per basic and diluted share during 2020. 
    • Adjusted EBITDA was $10.9 million, a 144.3% increase compared with 2020. 
    • Adjusted net income per diluted share increased to $0.27, compared with $0.05 per diluted share during 2020. 

    “During 2021, we delivered our strongest financial performance to date, posting 51% growth in gross profit dollars and 144% growth in Adjusted EBITDA.   We are executing well with our strategies to drive both organic and acquisition related growth,” said S. Ray Hatch, President and Chief Executive Officer. “Demand for cost effective sustainability solutions to divert waste from landfill is as strong as ever among target clients. Our value position, which includes a national footprint, broad service offering, and uniform data reporting on waste streams, is clearly resonating among prospective customers. With these factors working in our favor, we expect continued momentum in 2022 and the next several years from both organic and acquisitive sources.”

    Fourth Quarter 2021 Earnings Conference Call and Webcast

    The Company is scheduled to release the full results for its fourth quarter and year ended December 31, 2021, on Thursday, March 17, 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 1-800-239-9838 within the U.S. or 1-323-794-2551 from abroad, referencing conference ID: 5479645. Investors can also access the call online through a listen-only webcast on the investor relations section of Quest’s website at http://investors.qrhc.com/.

    The earnings webcast, which may include forward-looking information, will be archived on the Quest investor relations website for at least 90 days and a telephonic playback of the conference call will be available by calling 1-844-512-2921 within the U.S. and 1-412-317-6671 from abroad. The replay passcode is 5479645. The telephonic playback will be available beginning at 8:00 PM ET on Thursday, March 17, 2022, and continuing through 11:59 PM ET on Thursday, March 31, 2022. For more information on Quest Resource Holding Corporation, visit http://investors.qrhc.com.

    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 this adjusted financial measure 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, 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 Annual 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
    		 Year Ended
     December 31,
    		 December 31,
     2021
    		 2020
    		 2021
    		 2020
      (Unaudited)         
    Revenue$46,389  $27,658  $155,715  $98,660 
    Cost of revenue 37,670   22,077   126,894   79,605 
    Gross profit 8,719   5,581   28,821   19,055 
    Selling, general, and administrative 7,099   4,463   21,729   17,141 
    Depreciation and amortization 1,145   346   2,469   1,164 
    Total operating expenses 8,244   4,809   24,198   18,305 
    Operating income 475   772   4,623   750 
    Other income (expense) (116)  —   (116)  1,408 
    Interest expense (841)  (458)  (2,495)  (702)
    Loss on extinguishment of debt —   —   —   (168)
    Income (loss) before taxes (482)  314   2,012   1,288 
    Income tax expense 59   190   321   254 
    Net income (loss)$(541) $124  $1,691  $1,034 


    Deemed dividend for warrant down round feature    		 —   —   —   (205)
    Net income (loss) applicable to common stockholders$(541) $124  $1,691  $829 
    Net income (loss) per common share:               
    Basic$(0.03) $0.01  $0.09  $0.05 
    Diluted$(0.03) $0.01  $0.08  $0.05 
                    
    Weighted average number of common shares outstanding:               
    Basic 19,185   18,467   18,886   16,661 
    Diluted 19,185   18,801   20,735   16,756 
                    

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

     Three Months Ended
    		 Year Ended
     December 31,
    		 December 31,
     2021
    		 2020
    		 2021 2020
    Net income (loss)$(541) $124  $1,691 $1,034 
    Depreciation and amortization 1,225   404   2,764  1,277 
    Interest expense 841   458   2,495  702 
    Stock-based compensation expense 240   387   1,382  1,488 
    Acquisition, integration, and related costs 1,244   207   1,844  743 
    Other adjustments 216   17   376  (1,048)
    Income tax expense 59   190   321  254 
    Adjusted EBITDA$3,284  $1,787  $10,873 $4,450 
                   

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

     Three Months Ended
    		 Year Ended
     December 31,
    		 December 31,
     2021
    		 2020 2021 2020
    Reported net income (loss) (1)$(541) $124 $1,691 $829 
    Amortization of intangibles (2) 988   231  1,952  232 
    Acquisition, integration, and related costs (2) 1,244   207  1,844  743 
    Other adjustments 116   —  116  (1,408)
    Loss on extinguishment of debt —   —  —  168 
    Deemed dividend —   —  —  205 
    Adjusted net income$1,807  $562 $5,603 $769 
                  
    Diluted earnings per share:             
    Reported net income (loss)$(0.03) $0.01 $0.08 $0.05 
    Adjusted net income$0.08  $0.03 $0.27 $0.05 
                  
    (1) applicable to common stockholders
    (2) related to acquisitions
                  

    BALANCE SHEETS
    (In thousands, except per share amounts)

     December 31,  December 31,
     2021  2020
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents$8,428  $7,516 
    Accounts receivable, less allowance for doubtful accounts of $841 and $935 as of December 31, 2021 and December 31, 2020, respectively 39,949   17,421 
    Prepaid expenses and other current assets 1,952   1,069 
    Total current assets 50,329   26,006 
           
    Goodwill 80,622   66,310 
    Intangible assets, net 39,119   6,529 
    Property and equipment, net, and other assets 5,596   3,384 
    Total assets$175,666  $102,229 
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable and accrued liabilities$30,196  $15,247 
    Other current liabilities 6,195   1,393 
    Current portion of notes payable 1,329   624 
    Total current liabilities 37,720   17,264 
           
    Notes payable, net 62,409   14,948 
    Other long-term liabilities, net 1,909   1,974 
    Total liabilities 102,038   34,186 
           
    Commitments and contingencies      
           
    Stockholders’ equity:      
    Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued or outstanding as of December 31, 2021 and December 31, 2020 —   — 
    Common stock, $0.001 par value, 200,000 shares authorized, 19,046 and 18,413 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively 19   18 
    Additional paid-in capital 170,318   166,425 
    Accumulated deficit (96,709)  (98,400)
    Total stockholders’ equity 73,628   68,043 
    Total liabilities and stockholders’ equity$175,666  $102,229 

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