Business
Quest Resource Holding Corporation Reports 2019 Financial Results
THE COLONY, Texas, March 12, 2020 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ: QRHC) ("Quest"), a national leader in environmental reuse,
About this update from Quest Resource Holding Corporation
[{"type":"text","content":"THE COLONY, Texas, March 12, 2020 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ: QRHC) (\"Quest\"), a national leader in environmental reuse, recycling, and waste disposal services, today announced financial results for the fourth quarter and year ended December 31, 2019.\n Fourth Quarter 2019 Highlights Revenue was $23.0 million, a 9.1% decrease compared with the fourth quarter of 2018.Gross profit was $4.7 million, a 5.5% increase compared with the fourth quarter of 2018.Gross margin increased 280 basis points to 20.3% compared with 17.5% of revenue for the fourth quarter of 2018.Net income per share was $0.00, compared with $0.01 per share during the fourth quarter of 2018. Adjusted EBITDA was $850,000, a 10.2% increase compared with the fourth quarter of 2018. Year ended December 31, 2019 Highlights Revenue was $99.0 million, a 4.7% decrease compared with 2018.Gross profit was $18.7 million, an 11.1% increase compared with 2018.Gross margin increased 270 basis points to 18.9% compared with 16.2% of revenue for 2018.Net loss per share improved to $(0.00), compared with $(0.16) loss per share for 2018. Adjusted EBITDA was $3.3 million, a 42.4% increase compared with 2018.During 2019, Quest generated $2.3 million in cash flow from operations, which was used primarily to reduce borrowings by $754,000 and bolster the cash balance to $3.4 million. “We delivered another year of solid improvement, posting 11.1% growth in gross profit, 42% growth in Adjusted EBITDA, and, excluding one-time costs of $248,000 related to our shareholders’ equity offering, positive annual net income. As previously discussed, revenue declined compared with 2018 due to our transition away from lower value-added services and a slowdown in production at one of our largest industrial customers impacting a low margin waste stream,” said S. Ray Hatch, President and Chief Executive Officer. “The outlook for growth from our existing customer base remains strong and our pipeline of new business is growing. Subject to potential macroeconomic headwinds from the spreading coronavirus outbreak and related economic and market uncertainties, we believe that our efforts have positioned us well to continue our gross profit dollar growth. With the operating leverage inherent in our business model, we expect operating profit to grow at an even faster pace.”...