Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (March 2020)
28 slides from Quest Resource's investor presentation, Mar 12, 2020
Slide 1: Investor Presentation: National Service Integrator of Waste & Recycling Solutions
© 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. INVESTOR PRESENTATION NATIONAL SERVICE INTEGRATOR OF WASTE & RECYCLING SOLUTIONS NASDAQ: QRHC MARCH 2020 INVESTOR PRESENTATION Exhibit 99.1
Slide 2: oration. Copying, publications
© 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 3: SEC Safe Harbor
SEC SAFE HARBOR © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. The statements contained in this Investor Presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Se
Slide 4: About Quest
2007 2020 Recycled Used Tires at 7 stores Expanded recycling to Automotive Waste streams nationally Created the first national Food Waste recycling program Recycling expanded to Retail, Manufacturing and Construction Waste streams across the US and Canada Over 100 different materials recycled coast
Slide 5: About Quest: Waste Streams and Key Facts
ABOUT QUEST © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Hazardous Waste All Combustible All Corrosive All Flammable Liquids & Solids All Toxic Compressed Gases Electronic Waste Light Bulbs Batteries Ballasts Automotive W
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Macro Growth Drivers Sustainability is increasingly demanded from Investors, Customers, Employees, and Communities Increase in quantity and complexity of regulations Competitively Differentiated Financial and business interests directly align with customers Scale & scope requir
Slide 7: What We Do
WHAT WE DO QUEST MANAGES THE WASTE STREAMS OF LARGE BUSINESSES © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. DESIGN A CUSTOMIZED PROGRAM Design solutions and services that are best suited to meet a customer’s sustainabilit
Slide 8: What We Do – Some Examples
WHAT WE DO – SOME EXAMPLES 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 Recyc
Slide 9: Sustainability Mega Trends
STATES California Connecticut Massachusetts Rhode Island Vermont SUSTAINABILITY MEGA TRENDS © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. STATE AND LOCAL REGULATION The lack of new federal regulations is encouraging the ad
Slide 10: Sustainability Mega Trends, Continued
SUSTAINABILITY MEGA TRENDS, CONTINUED © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. The USDA Economic Research Service estimated that the amount of food uneaten at the retail and consumer levels in the baseline year of 201
Slide 11: Fortune 1000 Companies Are Responding to Investors
As of 2018, approximately $12 trillion (T) of U.S. domiciled assets consider ESG issues when selecting investments. This represents approximately 40% growth since 2016. “In a letter to our Customers today, BlackRock announced a number of initiatives to place sustainability at the center of our inves
Slide 12: A Vast Market
A VAST MARKET © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. 1IBIS WORLD, 2019 • 2supermarketnews.com • 3infosource • 4automotive-fleet.com • 5ward auto mega dealers • 6foodservicedatabase.com • 7Giants 300 Report OPPORTUNI
Slide 13: Focus on Large Customers with Complex Waste Streams
FOCUS ON LARGE CUSTOMERS WITH COMPLEX WASTE STREAMS © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Customers span multiple industries including grocery, retail, automotive, restaurant, industrial, and construction Trusted b
Slide 14: National Scale Through 3,500 Subcontractors
NATIONAL SCALE THROUGH 3,500 SUBCONTRACTORS © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. National Coverage - Every zip code in the U.S., presence in Canada Solid Execution - Managed over 1.2 million services last year 25,
Slide 15: Technology Platform Delivers Scale & Efficiency
TECHNOLOGY PLATFORM DELIVERS SCALE & EFFICIENCY © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. QUEST CLIENT SERVICES TEAM Client & Service Provider Communications Data & Information Contract Administration Financial SUBCONT
Slide 16: Superior Service Delivered by Technology
End-to-End, cloud-based, enterprise platform delivers scalability, efficiency, and visibility Coordination and monitoring of millions of services completed by over 3,500 vendors, year after year Rapid deployment of new solutions for maximum environmental impact Prompt notification of issues for expe
Slide 17: Quest vs. Competition
QUEST VS. COMPETITION DIRECT HAULER QUEST ALIGNMENT WITH SUSTAINABILITY GOALS Agnostic disposal method allowing Quest to leverage a myriad of disruptive and recycling methods Service not tied to company-owned assets Fast, innovative, and nimble Flexible resources available ASSET LIGHT MODEL VERTICAL
Slide 18: Strategic Growth Plan
STRATEGIC GROWTH PLAN © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Add lines of service to existing customer base Add customers and end markets with multiple and complex waste streams Opportunistically pursue M&A Focus on
Slide 19: Financial Performance Focused on Gross Profit Contribution
FINANCIAL PERFORMANCE FOCUSED ON GROSS PROFIT CONTRIBUTION Purposeful exit of low-margin revenue - 45% decrease in revenue since 2016 Established new end markets with complex waste streams and attractive margin profile 15% CAGR of gross profit $ since 2016 In $,000’s As % of Rev Gross Profit $s Gros
Slide 20: Financial Performance, Continued
FINANCIAL PERFORMANCE, CONTINUED SIGNIFICANT OPERATING LEVERAGE $4.8 million improvement in Adjusted EBITDA since 2016 Operating infrastructure in place to expand to a multiple of current size SG&A expected to grow at half the pace of gross profit $, including incremental growth investments Adjusted
Slide 21: Ample Liquidity for Growth
AMPLE LIQUIDITY FOR GROWTH © 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited. Cash: $3.4 million Line of Credit: $4.5 million ABL Facility: up to $20 million NOL: $17.2 million Limited Capital Asset Demands Capital Spending: Hi
Slide 22: 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 23: Investment Highlights
INVESTMENT HIGHLIGHTS Macro Growth Drivers Sustainability is increasingly demanded from Investors, Customers, Employees, and Communities Increase in quantity and complexity of regulations Competitively Differentiated Financial and business interests directly align with customers Scale & scope requir
Slide 24: oration. Copying, publications
© 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 25: 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, publications or redistribution outside of Quest is strictly prohibited. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (in thousands) 2016 2017 2018 2019 Revenue $183,811 $138,346 $103,806 $
Slide 26: oration. Copying, publications
© 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 27: oration. Copying, publications
© 2020 Quest Resource Holding Corporation. Copying, publications or redistribution outside of Quest is strictly prohibited.
Slide 28: Quest Resource Holding Corporation
QUEST RESOURCE HOLDING CORPORATION To Challenge, Manage & Inform”
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