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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Quest Resource Holding Corporation Reports Third Quarter 2021 Financial Results

November 15, 2021 GMT

THE COLONY, Texas, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ: QRHC) (“Quest”), a national leader in environmental waste and recycling services, today announced financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

  • Revenue was $37.4 million, a 57.7% increase compared with the third quarter of 2020.
  • Gross profit was $6.9 million, a 50.4% increase compared with the third quarter of 2020.
  • Gross margin was 18.3% of revenue compared with 19.2% during the third quarter of 2020.
  • GAAP Net income per share attributable to common stockholders was $0.02 per basic and diluted share, compared with a loss of $(0.02) per basic and diluted share during the third quarter of 2020.
  • Adjusted EBITDA was $2.5 million, a 147.8% increase compared with the third quarter of 2020.


Year-to-Date 2021 Highlights (September 30, 2021) 

  • Revenue was $109.3 million, a 54.0% increase compared with the same period of 2020. 
  • Gross profit was $20.1 million, a 49.2% increase compared with the same period of 2020. 
  • Gross margin was 18.4% of revenue compared with 19.0% for the same period of 2020. 
  • GAAP Net income per share attributable to common stockholders increased to $0.12 ($0.11 per diluted shared), compared with $0.04 per basic and diluted share during the same period of 2020. Included in the results for year-to-date of 2020 was other income of $1.4 million, or $0.09 per basic and diluted share, related to PPP Loan proceeds to fund eligible expenses under the CARES Act.
  • Year-to-date Adjusted EBITDA was $7.6 million, a 184.9% increase compared to the same period of 2020. 

“The execution of our strategic initiatives resulted in another quarter of exceptional financial performance. During the third quarter, growth came from multiple sources including onboarding new customers, expansion of our services and locations with existing customers, continued economic recovery, as well as from contribution from acquisitions. Adjusted EBITDA growth for the quarter and year-to-date period outpaced growth in gross profit dollars, an ongoing demonstration of the earnings leverage in our business,” said S. Ray Hatch, President and Chief Executive Officer. “Although supply chain and labor issues may cause some volatility in certain end markets, we believe any impact from these conditions will be temporary. We believe that we remain well positioned on our path for growth with organic growth from new and established customers, along with expansion from acquisitions.”

Third Quarter 2021 Earnings Conference Call and Webcast


Quest will conduct a conference call Monday, November 15, 2021, at 5:00 PM ET, to review the financial results for the third quarter ended September 30, 2021. Investors interested in participating on the live call can dial 1-800-289-0438 within the U.S. or 1-323-794-2423 from abroad, referencing conference ID: 4764520. The conference call, which may include forward-looking statements, is also being webcast and is available via the investor relations section of Quest’s website at A replay of the webcast will be archived on Quest’s investor relations website for 90 days.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

In this press release, a non-GAAP financial measure, “Adjusted EBITDA,” is presented. From time-to-time, Quest considers and uses this supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. Quest believes it is useful to review, as applicable, both (1) GAAP measures that include (i) depreciation and amortization, (ii) interest expense, (iii) stock-based compensation expense, (iv) income tax expense, and (v) certain other adjustments, and (2) non-GAAP measures that exclude such items. Quest presents this non-GAAP measure because it considers it an important supplemental measure of Quest’s performance. Quest’s definition of this adjusted financial measure may differ from similarly named measures used by others. Quest believes this measure facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. This non-GAAP measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP measures. (See attached table “Reconciliation of Net Income (Loss) to Adjusted EBITDA.”)

About Quest Resource Holding Corporation

Quest is a national provider of waste and recycling services that help businesses excel in achieving their environmental and sustainability goals and responsibilities. Quest delivers focused expertise across multiple industry sectors to build single-source, client-specific solutions that generate quantifiable business and sustainability results. Addressing a wide variety of waste streams and recyclables, Quest provides information and data that tracks and reports the environmental results of Quest’s services, gives actionable data to improve business operations, and enables Quest’s clients to excel in their business and sustainability responsibilities. For more information, visit

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our belief that any impact from the volatility in certain end markets as a result of supply chain and labor issues will be temporary and our believe that we remain well positioned on our path for growth with organic growth from new and established customers, along with expansion from acquisitions. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, competition in the environmental services industry, the impact of the current economic environment, the spread of major epidemics (including Coronavirus) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, commodity price fluctuations, and extended shut down of businesses, and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including our Report on Form 10-K for the year ended December 31, 2020. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

Investor Relations Contact:

Three Part Advisors, LLC
Joe Noyons

Financial Tables Follow

Quest Resource Holding Corporation and Subsidiaries
(In thousands, except per share amounts)

 Three Months Ended Nine Months Ended
 September 30, September 30,
 2021 2020 2021 2020
Revenue$37,367  $23,701  $109,327  $71,002 
Cost of revenue 30,514   19,144   89,224   57,527 
Gross profit 6,853   4,557   20,103   13,475 
Selling, general, and administrative 5,308   4,291   14,630   12,678 
Depreciation and amortization 508   150   1,325   818 
Total operating expenses 5,816   4,441   15,955   13,496 
Operating income (loss) 1,037   116   4,148   (21)
Other income    150      1,408 
Interest expense (543)  (73)  (1,654)  (244)
Loss on extinguishment of debt    (168)     (168)
Income before taxes 494   25   2,494   975 
Income tax expense 108   92   262   64 
Net income (loss)$386  $(67) $2,232  $911 
Deemed dividend for warrant down round feature    (205)     (205)
Net income (loss) applicable to common stockholders$386  $(272) $2,232  $706 
Net income (loss) per common share:            
Basic$0.02  $(0.02) $0.12  $0.04 
Diluted$0.02  $(0.02) $0.11  $0.04 
Weighted average number of common shares outstanding:               
Basic 18,985   17,290   18,785   16,055 
Diluted 21,308   17,290   20,704   16,070 

(In thousands)

 Three Months Ended   Nine Months Ended
 September 30,   September 30,
 2021 2020  2021  2020
Net income (loss)$386  $(67)  $2,232  $911 
Depreciation and amortization 582   176    1,539   872 
Interest expense 543   73    1,654           244 
Stock-based compensation expense 326   324    1,142   1,101 
Acquisition, integration, and related costs 464   354    600   537 
Other adjustments 42   37    160   (1,065)
Income tax expense 108   92    262   64 
Adjusted EBITDA$2,451  $989   $7,589  $2,664 

(In thousands, except per share amounts)

 September 30,  December 31,
 2021  2020
Current assets:       
Cash and cash equivalents$9,100   $7,516 
Accounts receivable, less allowance for doubtful accounts of $968        
and $935 as of September 30, 2021 and December 31, 2020, respectively 25,919    17,421 
Prepaid expenses and other current assets 1,463    1,069 
Total current assets 36,482    26,006 
Goodwill 66,795    66,310 
Intangible assets, net 7,263    6,529 
Property and equipment, net, and other assets 3,364    3,384 
Total assets$113,904   $102,229 
Current liabilities:       
Accounts payable and accrued liabilities$22,106   $15,247 
Other current liabilities 1,678    1,393 
Current portion of notes payable 652    624 
Total current liabilities 24,436    17,264 
Notes payable, net 15,878    14,948 
Other long-term liabilities, net 1,608    1,974 
Total liabilities 41,922    34,186 
Commitments and contingencies       
Stockholders’ equity:       
Preferred stock, $0.001 par value, 10,000 shares authorized, no        
shares issued or outstanding as of September 30, 2021 and December 31, 2020      
Common stock, $0.001 par value, 200,000 shares authorized,        
18,802 and 18,413 shares issued and outstanding as        
of September 30, 2021 and December 31, 2020, respectively 19    18 
Additional paid-in capital 168,131    166,425 
Accumulated deficit (96,168)   (98,400)
Total stockholders’ equity 71,982    68,043 
Total liabilities and stockholders’ equity$113,904   $102,229