Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (August 2022)
21 slides from Quest Resource's investor presentation, Aug 18, 2022
Slide 1: National Provider of Waste & Recycling Solutions Investor Presentation
CLICK TO ADD MAIN TITLE HERE CLICK TO ADD SUBTITLE HERE NATIONAL PROVIDER OF WASTE & RECYCLING SOLUTIONS Quest Resource Holding Corporation (NASDAQ: QRHC) August 2022 INVESTOR PRESENTATION © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly
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: 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: Business Transformation
15% CAGR in GP $s from 2016 to 2021 Exited accounts with low “value add” services Compete on value add and less on price 30%+ 3-year CAGR in Rev* Organic growth with new and existing customers Disciplined M&A expanded scale and scope Improved Business Profile Entered new end markets and diversified
Slide 6: Strong Financial Performance Across Diverse Economic Conditions
© 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. STRONG FINANCIAL PERFORMANCE ACROSS DIVERSE ECONOMIC CONDITIONS ($,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
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 incre
Slide 8: What Does Quest Do?
WHAT DOES QUEST DO? NATIONAL SOLUTIONS THAT ADDRESS THE FULL WASTE AND RECYCLING NEEDS FOR LARGE BUSINESSES CLIENTS (WASTE STREAM GENERATORS) NATIONAL WASTE AND RECYCLING SERVICE PLATFORM Clients Receive Enhanced sustainability, reduced waste footprint Regulatory compliance, penalty avoidance and re
Slide 9: National Asset-Light Model
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 Quest and higher asset utilization for vendors QUEST HAS INVESTED IN BUILD
Slide 10: Differentiated from the Two Major Competitive Segments
DIFFERENTIATED FROM THE TWO MAJOR COMPETITIVE SEGMENTS © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. ASSET-BASED INTEGRATED MAJORS VERTICAL INTEGRATION MODEL Economics driven by landfill utilization SERVICE RESIDENTIAL AND
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
Slide 12: Established Growth Platform: Land and Expand
© 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. ESTABLISHED GROWTH PLATFORM Land and Expand Strategy Drives Organic Growth Land - Growing pipeline of new client opportunities Increased scale adds to value proposition Favorabl
Slide 13: Focused M&A Strategy
FOCUSED M&A STRATEGY: ACQUIRE COMPANIES WITH STRONG CLIENTS & FOCUS ON SERVICE © 2022 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 Clie
Slide 14: Investment Highlights
Stable Client Relationships, Broad Service Offering and Recurring, Contractual Revenue Base Attractive Financial Profile Scalable Platform Supports Current and Future Growth Well-Positioned to Benefit from Structural, Long-Term Industry Tailwinds 2 Diverse client base in multiple industries includin
Slide 15: Appendix
Q = APPENDIX
Slide 16: Client Case Studies
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 17: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Has served as Chief Operating Officer of Quest since October 2016. More than 20 years of experience in the waste, recycling, property management, and business services industries. Prior to Quest, he served as Chief Sales Officer, Executive Vice President, and Senior Vice
Slide 18: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands) 2018 2019 2020 2021 Revenue $ 103,806 $ 98,979 $
Slide 19: Reconciliation of Net Income to Adjusted EBITDA (Quarterly and TTM)
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands) 2Q21 2Q22 TTM 2Q21 TTM 2Q22 Net income (loss) $
Slide 20: Reconciliation of Adjusted Net Income Per Share
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. RECONCILIATION OF ADJUSTED NET INCOME PER SHARE (in thousands) 2Q21 2Q22 TTM 2Q21 TTM 2Q22 Net income (loss)* $ 699 $
Slide 21: Contact Information
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 Officer © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited
Quest Resource Holding — Investor Presentation (August 2022) on 6ix