Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (November 2020)
32 slides from Quest Resource's investor presentation, Nov 17, 2020
Slide 1: National Service Integrator of Waste & Recycling Solutions
CLICK TO ADD MAIN TITLE HERE CLICK TO ADD SUBTITLE HERE NATIONAL SERVICE INTEGRATOR OF WASTE & RECYCLING SOLUTIONS Quest Resource Holding Corporation (NASDAQ: QRHC) November 2020 INVESTOR PRESENTATION © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest
Slide 2: Forward-looking statements
The statements contained in this Investor Presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements o
Slide 3: About Quest
ABOUT QUEST Hazardous Waste All Combustible All Corrosive All Flammable Liquids & Solids All Toxic Compressed Gases Electronic Waste Light Bulbs Batteries Ballasts Automotive Waste Used Motor Oil Used Oily Water Used Antifreeze Oil Water Separators Used Oil Filters Used Air Filters Used Absorbents U
Slide 4: What We Do
WHAT WE DO DESIGN A CUSTOMIZED PROGRAM Design solutions and services that are best suited to meet a customer’s sustainability goals at the right price Experts in disposal and recycling of more than 100+ waste streams Experts in local, state and national regulations 1 IMPLEMENT SERVICES AND MANAGE La
Slide 5: Customer solutions and impact: grocery, fleet operator, manufacturing
GROCERY STORE CHAIN NATIONAL FLEET OPERATOR MANUFACTURING Quest implemented a comprehensive landfill diversion program Created closed loop recycling solutions Created an online ordering system to streamline their process SOLUTION IMPACT Secured $2M+ in annual savings Recycled 885,000+ gallons of use
Slide 6: Stable Customer Relationships, Broad Service Offering and Recurring Revenue Base
Stable Customer Relationships, Broad Service Offering and Recurring, Contractual Revenue Base Attractive Financial Profile Scalable Platform Poised for Growth Well-Positioned to Benefit from Structural, Long-Term Industry Tailwinds 2 Diverse customer base in multiple industries including grocery, re
Slide 7: Focus on Large Customers with Complex Waste Streams
FOCUS ON LARGE CUSTOMERS WITH COMPLEX WASTE STREAMS © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Customers span multiple industries including grocery, retail, automotive, restaurant, industrial, and construction Trusted by
Slide 8: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Has served as Chief Operating Officer of Quest since October 2016. More than 20 years of experience in the waste, recycling, property management, and
Slide 9: National Asset-Light Platform and Vendor Network
National coverage Every zip code in the U.S. Presence in Canada Network of 3,500 vendors Managed over 1.2 million services last year Significant volume through vendor assets Leverage vendor excess capacity – lower pricing for customers and higher asset utilization for vendors Robust Vendor Network V
Slide 10: Scalable Technology Platform
Comprehensive data reporting and process automation Transition to cloud completed in 2019 Central ERP system facilitates end-to-end information flow Customer and vendor online portals Scalable Technology Platform Customer Performance KEY FUNCTIONS CUSTOMERS VENDORS Request services View program KPIs
Slide 11: Unique Ability to Provide Lower Costs and Higher Levels of Service
UNIQUE ABILITY TO PROVIDE LOWER COSTS AND HIGHER LEVELS OF SERVICE © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. QUEST’S VALUE PROPOSITION Cost efficient procurement via network of 3,500 vendors Go to market by consolidatin
Slide 12: Industry Overview
INDUSTRY OVERVIEW
Slide 13: Waste Generation Continues to Grow; Landfill Diversion Pressures Continue
Recycling and composting as means of waste disposal has grown from 15% to over 35% since 1990 WASTE GENERATION CONTINUES TO GROW; LANDFILL DIVERSION PRESSURES CONTINUE © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Waste gen
Slide 14: Landfill Represents >50% of Waste Disposal
LANDFILL REPRESENTS >50% OF WASTE DISPOSAL; ~128M TONS OF NON-LANDFILL DISPOSAL METHODS © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Landfill usage has declined from 70% in 1990 to just over 50% in 2017 Alternatives to lan
Slide 15: Recycling Will Continue to Increase; Plastics & Food Focus
RECYCLING WILL CONTINUE TO INCREASE; PLASTICS & FOOD ARE MAJOR AREAS OF FOCUS & OPPORTUNITY © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Plastics & Food remain two of the largest waste materials with >70% landfill disposal
Slide 16: Two Major Segments: Asset Intensive & Highly Fragmented
TWO MAJOR SEGMENTS: ASSET INTENSIVE & HIGHLY FRAGMENTED Large asset intensive, vertically integrated players with 56% market share Focused on both residential and commercial Generally specialize in one or two waste streams High percentage of profits derived from landfill ownership Operate ~700 landf
Slide 17: Differentiated from the Two Major Competitive Segments
DIFFERENTIATED FROM THE TWO MAJOR COMPETITIVE SEGMENTS © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. ASSET-BASED INTEGRATED MAJORS VERTICAL INTEGRATION MODEL Multi-billion asset base Economics driven by landfill utilization
Slide 18: Quest Business, Performance & Strategy
QUEST BUSINESS, PERFORMANCE & STRATEGY
Slide 19: Business Transformation
2020 Initiated M&A growth strategy © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. BUSINESS TRANSFORMATION 2009 Founded 2009……………….…2015 2016 2017 2018 2019 2020 2021 2016 Business assessment led to focus on delivering comple
Slide 20: Plan Going Forward
Business Foundation Strategy © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. PLAN GOING FORWARD Management team with > 50 years of total experience in value-added waste and related services Procurement strategy and robust ven
Slide 21: Focused M&A Strategy
FOCUSED M&A STRATEGY: ACQUIRE COMPANIES WITH STRONG CUSTOMERS & FOCUS ON SERVICE © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Acquisition Candidate Enables Growth at National Scale Reduces Capital Risk Adds Capabilities Cu
Slide 22: Shift to Complex, Differentiated Services
Exit accounts with commodity services Focus on differentiated services Enter new end markets with greater barriers to entry Gross margins have increased from 8% to 19%/ Gross profit $s growing 9% annually through 2019 © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution
Slide 23: Platform at Scale to Deliver Operating Leverage
Gross profit growth expected to flow through to EBITDA at ~50% Built customer service, vendor management, financial control and technology functions Operating infrastructure in place to scale $4.8M improvement in Adjusted EBITDA since 2016 © 2020 Quest Resource Holding Corporation. Copying, publicat
Slide 24: Recent Financial Results – YTD 2020
RECENT FINANCIAL RESULTS – YTD 2020 © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. *A non-GAAP financial measure, "Adjusted EBITDA," is presented. From time-to-time, Quest considers and uses this supplemental measure of oper
Slide 25: Stable, Scalable Platform with Attractive Industry Dynamics
Stable Customer Relationships, Broad Service Offering and Recurring, Contractual Revenue Base Attractive Financial Profile Scalable Platform Poised for Growth Well-Positioned to Benefit from Structural, Long-Term Industry Tailwinds 2 4 3 1 © 2020 Quest Resource Holding Corporation. Copying, publicat
Slide 26: Appendix
Q |= APPENDIX
Slide 27: Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands) 2016 2017 2018 2019 Revenue $183,811 $138,346 $1
Slide 28: Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2020 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands) 3Q19 3Q20 YTD SEP 2019 YTD SEP 2020 Net income (
Slide 29: Case Study: Commercial Fleet
CASE STUDY # 1 One of the largest commercial fleets in the United States needed to improve the overall sustainability of their service vehicles and turned to Quest to find closed loop solutions within their fleet of 71,000 service vehicles Quest completed a series of assessments and measured the cur
Slide 30: Case Study: Grocery Store Chain
CASE STUDY # 2 A large grocery store chain with thousands of stores and distribution centers spread across the U.S. needed to dramatically reduce its ecological footprint to achieve its aggressive sustainability goals. The retailer did not have the staff or the experience to expand a handful of prom
Slide 31: Case Study: Manufacturer
CASE STUDY # 3 A large manufacturer came to Quest looking to reduce its environmental footprint in a cost-effective manner Quest completed a series of plant assessments, measuring the waste baselines and calculating the company’s current waste management expenditures Quest identified various waste s
Slide 32: Contact
© 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. DAVE SWEITZER Chief Operations Officer 3481 Plano Pkwy. The Colony, TX 75056 877.321.1811 www.questrmg.com RAY HATCH Chief Executive Officer LAURIE LATHAM Chief Financial Offic
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