Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (August 2018)
29 slides from Quest Resource's investor presentation, Aug 28, 2018
Slide 1: of Quest is strictly prohibited- Exhibit 99.1
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited- Exhibit 99.1
Slide 2: SEC Safe Harbor
SEC SAFE HARBOR ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 3: About Quest
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. EXPERTISE with 100+ WASTE STREAMS NATIONWIDE FOOTPRINT Deliver services in every zip code in the U.S. Motor Oil Scrap Metal Food Waste Tires Oil Filters ABOUT QUEST Provide Recy
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Turned EBITDA positive in 2017 Expect GAAP profitability by 4Q18 Resume targeted sales growth in FY19 Sustainable improvements CORPORATE TRANSFORMATION For
Slide 5: Sustainability Mega Trend
SUSTAINABILITY MEGA TREND ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Today, the United States spends over $218 billion on sustainability 1.3% of GDP – growing, processing, transporting, and disposing of food that is neve
Slide 6: A Vast Market
A VAST MARKET ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Total market opportunity is $60B Quest’s primary target: the top 50-100 companies in each vertical, is $3.3B Quest captured a 4.2% market share in 2017
Slide 7: Key Value Proposition
KEY VALUE PROPOSITION ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 8: Focus on Large Clients with Complex Waste Streams
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. FOCUS ON LARGE CLIENTS WITH COMPLEX WASTE STREAMS Clients span multiple industries including grocery, retail, automotive, property management, hospitality, industrial, and const
Slide 9: Quest vs. Competition
QUEST VS. COMPETITION ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 10: Direct Alignment with Clients Sustainability and Financial Goals
DIRECT ALIGNMENT WITH CLIENTS SUSTAINABILITY AND FINANCIAL GOALS ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Tied to limited disposal methods Slow to innovate Burdened by large fixed cost assets Investing in trucks, facil
Slide 11: Providing Consistent Service on a National Scale
PROVIDING CONSISTENT SERVICE ON A NATIONAL SCALE ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 12: Superior Service Delivery Enabled by Technology
SUPERIOR SERVICE DELIVERY ENABLED BY TECHNOLOGY ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Flexible information technology infrastructure allows Quest to provide innovative and efficient recycling solutions Scalable IT p
Slide 13: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 14: Corporate Transformation
CORPORATE TRANSFORMATION ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Focus on providing the RIGHT services with the RIGHT customers in the RIGHT markets… Add experienced sales leadership and create delineation between Far
Slide 15: Target the Right Business
TARGET THE RIGHT BUSINESS ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Providing the RIGHT Services.. to the RIGHT Clients… in the RIGHT Markets Greater focus on services that highlight our value add less focus on commodit
Slide 16: Go To Market Changes
GO TO MARKET CHANGES ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Sales Force Repositioning Change the culture of our sales team. Sell based on value, not price… consultative sale not a price point solution Sales structure
Slide 17: Optimizing Sourcing
OPTIMIZING SOURCING ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Treat subcontractors as essential partners Help subcontractors maximize efficiencies Right sizing- changing the size of the containers and the service freque
Slide 18: Financial Transformation
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Revenue Trend Line Gross Profit $ Trend Line Adjusted EBITDA Trend Line Transition Period 2017-2018 Future Growth & Profitability 2014-2016 CAGR growth ~ 3% Rationalize Revenue
Slide 19: Financial Performance: Quarterly Revenue Trends
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. FINANCIAL PERFORMANCE Exited Low Margin Transactional Revenue 4Q17 revenue – decreased 50% year-over-year… turning point in strategic repositioning Quarterly sequential growth e
Slide 20: Financial Performance: Gross Profit Contribution
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Focused on Gross Profit Contribution 2017 revenue decreased 25% 2017 gross profit $ increased 9% YTD 2Q18 gross margin reached targeted levels in low to mid teens FINANCIAL PERF
Slide 21: Financial Performance: Adj. EBITDA Margin
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. FINANCIAL PERFORMANCE Adj. EBITDA Margin Target Zone: 4%-6% of Revenue Exited low margin transactional revenue Turned Adj. EBITDA positive in 2017 Expect $4 million+ Adj. EBITDA
Slide 22: Capital Lite Model
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. “CAPITAL LITE” MODEL Limited Capital Demands Capital Spending: Historically $500,000 to $1.5 million per year Ample Liquidity for Growth (As of June 30, 2018) Cash: $1.1M millio
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Turned EBITDA positive in 2017 Expect GAAP profitability by 4Q18 Resume targeted sales growth in FY19 Sustainable improvements CORPORATE TRANSFORMATION For
Slide 24: of Quest is strictly prohibited.
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 25: Reconciliation US GAAP to Non-GAAP Financial Measures
RECONCILIATION US GAAP TO NON-GAAP FINANCIAL MEASURES ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 26: Case Study #1
CASE STUDY #1 ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 27: Case Study #2
CASE STUDY #2 ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 28: Case Study #3
CASE STUDY #3 ©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 29: Contact
©2018 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited- Quest Resource Holding Corporation 3481 Plano Parkway The Colony, Texas 75056 972.464.0004 www.qrhc.com www.qrmg.com Ray Hatch Chief Executive Officer Laurie Latham Chief Financ
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