Slide 1: Investor Presentation
I N V E S T O R P R E S E N TAT I O N Quest Resource Holding Corporation (NASDAQ: QRHC) NATIONAL PROVIDER OF WASTE & RECYCLING SOLUTIONS August © 2022 © 2023Quest Quest Resource ResourceHolding HoldingCorporation. Corporation. Copying, Copying,publication publishing or orredistributing redistributio
Slide 2: SEC Safe Harbor
SEC SAFE HARBOR 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 t
Slide 3: About Quest
ABOUT QUEST National Provider of Waste & Recycling Solutions to Large Businesses ● Headquarters Dallas, Texas | NASDAQ: QRHC | Market Cap $137 MM * | TTM Revenue $284 MM** ● Solutions offering helps customers meet business efficiency, sustainability and ESG Goals ● Serving $200B+ North American wast
Slide 4: Focus on Large Clients with Complex Waste Streams
FOCUS ON LARGE CLIENTS WITH COMPLEX WASTE STREAMS Quest helps businesses excel by delivering tailored waste solutions that increase efficiencies, maximize landfill diversion, improve their bottom line and help meet their business and sustainability goals. • Strategic customer relationships with low
Slide 5: Business Transformation
BUSINESS TRANSFORMATION SHIFT TO COMPLEX, DIFFERENTIATED SERVICES TO SELECT, HIGH-VALUE CLIENTS IN STRATEGIC MARKETS ($,000,000) ($,000,000) 55 300 45 250 20%+ CAGR in GP $s from 2016 to 2022 35 200 • Exited accounts with low “value add” services • Compete on value add and less on price 25 150 30%+
Slide 6: Strong Financial Performance Across Diverse Economic Conditions
STRONG FINANCIAL PERFORMANCE ACROSS DIVERSE ECONOMIC CONDITIONS ($,000) Gross Profit $ Adjusted EBITDA 16,000 14,668 13,505 14,000 12,630 • Operating leverage with greater 12,183 scale drove improvement in Adj. 12,000 11,248 10,755 EBITDA Margin 10,000 8,719 • Shift to high value-added services in 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 i
Slide 8: What Does Quest Do?
WHAT DOES QUEST DO? NATIONAL SOLUTIONS THAT ADDRESS THE FULL WASTE AND RECYCLING NEEDS FOR LARGE BUSINESSES Client’s Business, Sustainability & ESG Goals CLIENTS (WASTE STREAM GENERATORS) NATIONAL WASTE AND RECYCLING SERVICE PLATFORM • Manufacturing & Industrial • Retail/Grocery • Automotive/Transpo
Slide 9: National Asset-Light Model with Robust Vendor Network
QUEST HAS INVESTED IN BUILDING A NATIONAL ASSET-LIGHT MODEL ROBUST VENDOR NETWORK BENEFITS National Coverage • Every zip code in the U.S. • Presence in Canada • Lower fixed and variable costs that are • Network of 3,500 vendors driven down by competitive vendor bidding Managed over 1.2 million servi
Slide 10: Differentiated from the Two Major Competitive Segments
DIFFERENTIATED FROM THE TWO MAJOR COMPETITIVE SEGMENTS ASSET-BASED INTEGRATED MAJORS FRAGMENTED PLAYERS ASSET-LIGHT MODEL INDEPENDENT PARTICIPANTS ● Service not tied to company-owned assets ◼ Single office operations VERTICAL INTEGRATION MODEL ● Alignment with sustainability ◼ Limited investment in
Slide 11: Comprehensive Cloud-Based Data Portal Supports ESG/Sustainability
COMPREHENSIVE CLOUD-BASED DATA PORTAL SUPPORTS ESG/SUSTAINABILITY & OPERATIONAL PERFORMANCE CLIENT PERFORMANCE 2021 2019 Review of SCALABLE TECHNOLOGY • Operational insights that drive efficiencies and improve Platform Automotive’s Recycling PLATFORM cost controls Services • Quarterly / Annual Busin
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 F
Slide 13: Focused M&A Strategy
FOCUSED M&A STRATEGY: ACQUIRE COMPANIES WITH STRONG CLIENTS & FOCUS ON SERVICE “ADD CLIENTS TO THE QUEST PLATFORM THAT WE CAN SERVE AS WELL OR BETTER” Opportunity Ideal Acquisition Candidate Execution • 18,000+ companies with 85% market • Successful business built by entrepreneur • Reduce risk throu
Slide 14: Summary - Stable, Scalable with Attractive Industry Dynamics
SUMMARY - STABLE, SCALABLE WITH ATTRACTIVE INDUSTRY DYNAMICS AND FINANCIAL CHARACTERISTICS Well-Positioned to Benefit from Structural, 2 Stable Client Relationships, Broad Service Offering 1 Long-Term Industry Tailwinds and Recurring, Contractual Revenue Base • Waste services is a $200B+ industry: 1
Slide 15: Appendix
APPENDIX © 2023 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited.
Slide 16: Client Results
CLIENT RESULTS National manufacturer with 50+ NATIONAL FLEET OPERATOR MANUFACTURING plants in the US needed to reduce cost and reduce waste footprint One of the largest commercial fleets in the SOLUTION US needed to improve overall sustainability Managed recycling of plastics, cardboard, metal, of t
Slide 17: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Has served as Ch ief E xecu tive Officer of Qu est sin ce Feb ru ary 2016. A s en io r e x e cu t iv e w ith in -d ep t h e xp eri en c e b u ild in g p ro fitab l e b u sin e ss an d o rc h es trat in g t ran sf or mati on al gro w th , Mr. Ha tc h b rin g s o v er 2 5 y
Slide 18: Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 Revenue $ 98,979 $ 98,660 $ 155,715 $ 284,038 Net income (loss) $ (55) $ 1,034 $ 1,691 $ (6,048) RECONCILIATION Depreciation and amortization 1,402 1,277 2,764 9,966 OF NET INCOME Interest expense 431 702 2,495 7,281 (LOS
Slide 19: Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES 2Q22 2Q23 TTM 2Q22 TTM 2Q23 Net income (loss) $ 1,150 $ (887) $ (1,189) $ (7,925) Depreciation and amortization 2,550 2,539 6,795 10,111 Interest expense 1,590 2,556 4,530 9,134 RECONCILIATION Stock-based compensation 326 363 1,150 1,359 OF
Slide 20: Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES 2Q22 2Q23 TTM 2Q22 TTM 2Q23 Net income (loss)* $ 1,150 $ (887) $ (1,189) $ (7,925) Amortization of intangibles** 2,221 2,223 5, 769 8,887 Acquisition, integration, and related costs** 668 174 3,682 1,753 RECONCILIATION Other adjustments - -
Slide 21: Management Contacts
RAY HATCH Chief Executive Officer BRETT JOHNSTON Chief Financial Officer DAVE SWEITZER Chief Operations Officer 3481 Plano Pkwy. The Colony, TX 75056 877.321.1811 www.QuestRMG.com © 2023 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited