Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (May 2014)
28 slides from Quest Resource's investor presentation, May 28, 2014
Slide 1: Investors Presentation May 2014
Investors Presentation May 2014 1
Slide 2: SEC Safe Harbor
SEC Safe Harbor 2 This material may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the results of Quest Resource Holding Corporation could differ materially from the r
Slide 3: Key Facts
Key Facts *As of 3-31-2014 3 Trading Symbol (Nasdaq) QRHC Corporate Headquarters Frisco, TX Stock Price (May 20, 2014) $3.62 Shares Outstanding (May 1, 2014) 97.0 million Diluted Shares 113.7 million Market Capitalization (at $3.62 per share) $351.3 million Insider Ownership (April 15, 2014) 86.9% C
Slide 4: Management
Management Brian S. Dick has served as President, Chief Executive Officer, and director of our company since July 2013. Mr. Dick took Quest from a startup company in 2007 to a growing, vibrant enterprise with over $130 million in revenue in less than six years. Mr. Dick was a Ernst & Young Entrepren
Slide 5: Management
Management T. Jeffrey Cheney, Jr. has served as director of our company since October 2013. In 2014, Mr. Cheney became President of Earth911, Inc. and a Vice President of Quest Resource Holding Corporation. Mr. Cheney has served on the City Council of the city of Frisco, Texas since June 2007, servi
Slide 6: Quest Resource Holding Corporation
Quest Resource Holding Corporation Quest provides the full spectrum of the recycling life cycle, providing innovative waste reduction and landfill diversion solutions for recycling and proper disposal of commercial and consumer waste streams Our comprehensive programs are designed to enable regional
Slide 7: Overview
Overview 7 We maximize the value of recyclables and lower costs to our customers while reducing their liability Asset-light business model requires minimal capital investment - positioned to significantly improve margins We have significant expertise and offer companies a one-stop shop recycling sol
Slide 8: Company Background
Company Background Quest RMG • 6 employees • Recycle scrap tires with super truck • 1,229 locations • Revenues - $3M 2007 Quest RMG • 12 employees • Add motor oil, oil filters • Add used cooking oil • 3,257 locations managed • Revenues - $27M Earth911 acquires 50% of Quest RMG 2008 Quest RMG • 15 em
Slide 9: Our Products and Services
Our Products and Services OVERVIEW Comprehensive sustainability, recycling and waste management programs Maximize value of recyclables and lower costs Network of pre-approved collection and recycling companies Take advantage of regional marketplaces One point of contact for all service needs INDUSTR
Slide 10: Key Materials Managed Annually
Key Materials Managed Annually 10 (c)2014 Quest Resource Management Group. Copying, publication or redistribution outside of Quest Resource Management Group is strictly prohibited
Slide 11: Quest Operational Snap Shot
Quest Operational Snap Shot Coverage in all 50 states, Canada and Puerto Rico Management over 15,000 customer locations every month Leverage of 5,000+ fully permitted, audited partners 30,000 continuously trained professionals 24,000 trucks 600 recycling facilities Managed over 1.7 billion pounds of
Slide 12: IT Infrastructure
IT Infrastructure Flexible information technology infrastructure allows Quest to provide innovative and effective communication, information and logistic solutions Scalable IT platform as companies continue to outsource their waste solutions 12 (c)2014 Quest Resource Management Group. Copying, publi
Slide 13: Earth911, Inc. Overview
Earth911, Inc. Overview Key Offerings: The consumer lifestyle website Earth911.com focuses on: Low waste living Do it Yourself projects Actionable (non activist) environmental ideas The largest, most accurate proper disposal directory in the U.S. 360 searchable material profiles 1.6 million recyclin
Slide 14: Earth911's Mission
EARTH911's Mission (c)2014 Quest Resource Management Group. Copying, publication or redistribution outside of Quest Resource Management Group is strictly prohibited 14 Earth911's mission is to inform, engage , motivate and facilitate environmental change with: Targeted editorial content Eco-consciou
Slide 15: Target Industries
Target Industries Business Segment Motor oil Scrap tires Used Cooking Oil (UCO) Meat Food waste E waste Plastics, Cardboard, Glass Solid Waste Hazardous Waste Sustainability Planning LEED or Green Globe Fleet Dealerships Automotive after market Big box retailer Grocery store Industrial Hospitality O
Slide 16: Industry Overview
Industry Overview Quest's total initial target market is $2.5 billion. $55 billion U.S. waste management industry Waste collection: $34 billion Transporting & processing waste and recyclables: $6 billion Waste disposal: $13 billion Waste-to-energy: $2 billion "Economics, public opinion and governmen
Slide 17: Market Share and Opportunity
Market Share and Opportunity Quest currently has a 5% market share of its initial target market and a 0.2% market share of the total market opportunity 1 Waste Business Journal, 2012. 17 Market Size ($ in millions) Market Size ($ in millions) 2012 Quest Revenue ($ in millions) Market Share Top 50 Gr
Slide 18: Case Study
Case Study A grocery store chain with stores across North America needed to reduce operating costs. Environmental expenses were high, but they could not hire in-house personnel to tackle the issue. Store management desired to be a good corporate citizen and also do right for the environment. Store m
Slide 19: Increase Landfill Diversion Case Study - The Impact
Increase Landfill Diversion Case Study - The Impact 19 (c)2014 Quest Resource Management Group. Copying, publication or redistribution outside of Quest Resource Management Group is strictly prohibited
Slide 20: Revenue Sources
Revenue Sources Recycling and waste management Fees for hauling, disposal and related services Fees for professional and administrative services Commodity sales and rebates from waste with monetized value Some contracts have a shared savings component Sustainability, LEED and Energy Efficiency consu
Slide 21: Growth Strategy
Growth Strategy 21 Organic Continually add new customers Provide expanded services to our existing customer base Cross sell opportunities through our customer base Expand sales force - expand geographically Increase profitability through adding higher margin customers Acquisitions Accelerate growth
Slide 22: Financial Highlights
Financial Highlights 20 All values in USD thousands (1) Pro forma condensed consolidated operating results assuming 100% of Quest's operations as they existed at the time were included in the relevant period. (2) We use the non-GAAP measurement of EBITDAS to evaluate performance and believe to furth
Slide 23: Revenue Scenarios
Revenue Scenarios 23 All values in USD thousands Revenue Scenario Analysis are not formal guidance; only to be used for informational purposes We use the non-GAAP measurement of EBITDAS to evaluate performance. Revenue Scenario Analysis Revenue Scenario Analysis Revenue Scenario Analysis Revenue Sce
Slide 24: Summary
Summary 24 Highly visible, repeat revenue from Fortune 500 customer base Experienced management team Strong brand equity throughout the recycling and environmental industries Positioned to be the industry leader in our multi-billion dollar industry Track record of sustained organic growth within exi
Slide 25: Appendix
25 (c)2014 Quest Resource Management Group. Copying, publication or redistribution outside of Quest Resource Management Group is strictly prohibited APPENDIX
Slide 26: Capital Structure
Quest Resource Holding Corporation Capital Structure 26 Common Stock Dilution Table As of 5/1/2014 Common Shares Reserved Common Stock Issued and Outstanding 97,050,674 Private Warrants Outstanding: 1,441,000 Options Outstanding: 4,176,948 Convertible Debt: $ 2.00 Convertible Secured Promissory Note
Slide 27: July 2013 QRMG Acquisition
July 2013 QRMG Acquisition 27 On July 16, 2013, we purchased the remaining 50% membership interest of Quest Resource Management Group, LLC. ("QRMG") from Quest Resource Group LLC ("QRG") for the following: 12M shares of QRHC common stock to Brian Dick, owner of QRG and CEO of Quest 10M shares of QRH
Slide 28: Contact
Brian Dick Chief Executive Officer BrianD@QuestRMG.com Laurie Latham Chief Financial Officer LaurieL@QuestRMG.com Quest Resource Holding Corporation 6175 Main Street, Suite #420 Frisco, Texas 75034 877.321.1811 - Main www.QHRC.com www.questrmg.com www.earth911.com 28 (c)2014 Quest Resource Managemen
Quest Resource Holding — Investor Presentation (May 2014) on 6ix