Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (March 2024)
21 slides from Quest Resource's investor presentation, Mar 13, 2024
Slide 1: Investor Presentation March 2024
© 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. Quest Resource Holding Corporation (NASDAQ: QRHC) INVESTOR PRESENTATION March NATIONAL PROVIDER OF WASTE & RECYCLING SOLUTIONS 2024 Exhibit 99.1
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 National Provider of Waste & Recycling Solutions to Large Businesses Headquarters Dallas, Texas | NASDAQ: QRHC | Market Cap $141 MM * | TTM Revenue $288 MM** Solutions offering helps customers meet business efficiency, sustainability and ESG Goals Serving $200B+ North American waste and
Slide 4: Focus on large clients with complex waste streams
Quest helps businesses excel by delivering tailored waste solutions that increase efficiencies, maximize landfill diversion, improve their bottom line and help meet their business and sustainability goals. Strategic customer relationships with low churn Clients span multiple industries including gro
Slide 5: Shift to complex, differentiated services; business transformation
© 2024 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited SHIFT TO COMPLEX, DIFFERENTIATED SERVICES TO SELECT, HIGH-VALUE CLIENTS IN STRATEGIC MARKETS ~20% CAGR in GP $s from 2016 to 2023 Exited accounts with low “value add” services Com
Slide 6: Strong financial performance across diverse economic conditions
© 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. STRONG FINANCIAL PERFORMANCE ACROSS DIVERSE ECONOMIC CONDITIONS ($,000) Operating leverage with greater scale drove improvement in Adj. EBITDA Margin Shift to high value-added s
Slide 7: Key problems in waste and recycling Quest solves
Improving sustainability is more important than ever Growing requirements to be a good environmental, social and economic steward for the benefit all stakeholders (customers, employees, community, and shareholders) Increasing costs Landfill cost increases Gaining efficiencies by adding recycled wast
Slide 8: What does Quest do?
WHAT DOES QUEST DO? CLIENTS (WASTE STREAM GENERATORS) NATIONAL WASTE AND RECYCLING SERVICE PLATFORM CLIENTS RECEIVE Enhanced sustainability, reduced waste footprint Regulatory compliance, penalty avoidance and reduced risk Improved efficiencies & cost control Data and insights to drive business, sus
Slide 9: National asset-light model
QUEST HAS INVESTED IN BUILDING A NATIONAL ASSET-LIGHT MODEL 25,000 TRUCKS 30,000 PROFESSIONALS 1,000 RECYCLING FACILITIES ROBUST VENDOR NETWORK Lower fixed and variable costs that are driven down by competitive vendor bidding Ability to grow with limited need for capital Flexible and nimble capacity
Slide 10: Differentiated from the two major competitive segments
DIFFERENTIATED FROM THE TWO MAJOR COMPETITIVE SEGMENTS ASSET-BASED INTEGRATED MAJORS VERTICAL INTEGRATION MODEL Economics driven by landfill utilization SERVICE RESIDENTIAL AND COMMERCIAL ACCOUNTS >50% EBITDA contribution from landfills versus other services Only 30% estimated competitive overlay to
Slide 11: Comprehensive cloud-based data portal
Comprehensive data reporting and process automation Transition to cloud completed in 2019 Central ERP system facilitates end-to-end information flow Client and vendor online portals COMPREHENSIVE CLOUD-BASED DATA PORTAL SUPPORTS ESG/SUSTAINABILITY & OPERATIONAL PERFORMANCE Meets U.S. EPA Standards O
Slide 12: Established growth platform: land and expand
ESTABLISHED GROWTH PLATFORM Land and Expand Strategy Drives Organic Growth Land - Growing pipeline of new client opportunities Increased scale adds to value proposition Favorable sustainability trends and increased landfill costs create secular tailwind Growing base of highly referenceable Fortune 1
Slide 13: Acquisition strategy and execution
Execution Reduce risk through simple integration process; same as onboarding new clients Cost synergies from functional overlaps Support expansion to adjacent regions leveraging Quest’s vendor network Repeatable across acquisitions Ideal Acquisition Candidate Successful business built by entrepreneu
Slide 14: Well-positioned to benefit from structural industry tailwinds
Well-Positioned to Benefit from Structural, Long-Term Industry Tailwinds Waste services is a $200B+ industry: 15% asset intensive integrated haulers / landfill operators, 85% highly fragmented ~18,000 companies focused on specific regions, waste stream and industry verticals Recycling and other valu
Slide 15: Appendix
APPENDIX 15
Slide 16: Client case studies
GROCERY STORE CHAIN MANUFACTURING Implemented a food waste recycling and a meat donation program, enhanced cooking oil and grease trap recycling program SOLUTION Increased landfill diversion by 40% Secured 20%+ savings Reduce CO2 emission by more than 277,000 metric tons Client recognized by EPA for
Slide 17: Management team
S. Ray Hatch Chief Executive Officer, President, and Director Has served as Chief Executive Officer of Quest since February 2016. A senior executive with in-depth experience building profitable business and orchestrating transformational growth, Mr. Hatch brings over 25 years of experience in both t
Slide 18: Reconciliation of net income (loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands) RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES 2020 2021 2022 2023 Revenue $ 98,660 $ 155,715 $ 284,038 $ 288,378 Net income (loss) $ 1,034 $ 1,691 $ (6,048) $ (7,291) Depreciation and amortization 1,277 2,764 9,966 9,
Slide 19: Reconciliation of net income (loss) to Adjusted EBITDA, quarterly
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2024 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited 4Q22 4Q23 2022 2023 Net income (loss) $ (3,328) $ (2,330) $ (6,048) $ (7,291) Depreciation and amortization 2,425 2,462
Slide 20: Reconciliation of adjusted net income per share
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2024 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited RECONCILIATION OF ADJUSTED NET INCOME PER SHARE (in thousands) 4Q22 4Q23 2022 2023 Net loss* $ (3,328) $ (2,330) $ (6,04
Slide 21: Contact information
3481 Plano Pkwy. The Colony, TX 75056 877.321.1811 www.QuestRMG.com DAVE SWEITZER Chief Operations Officer RAY HATCH Chief Executive Officer BRETT JOHNSTON Chief Financial Officer © 2024 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited
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