Quest Resource Holding Corporation (QRHC) Bundle
A Brief History of Quest Resource Holding Corporation
Company Overview
Quest Resource Holding Corporation (QRHC) operates primarily in the environmental services sector, focusing on waste and recycling solutions. As of September 30, 2024, QRHC reported a total of 20,464,260 shares outstanding, with a par value of $0.001.
Financial Performance
For the quarter ended September 30, 2024, QRHC reported revenues of $72.8 million, an increase of 3.3% from $70.4 million in the same quarter of 2023. However, for the nine months ended September 30, 2024, revenues slightly decreased to $218.6 million from $219.0 million in the previous year.
Adjusted EBITDA
The Adjusted EBITDA for the quarter ended September 30, 2024, decreased by 31.7% to $2.5 million compared to $3.7 million for the same quarter in 2023. For the nine months, Adjusted EBITDA increased by 0.5% to $12.8 million.
| Period | Revenue ($ million) | Net Loss ($ million) | Adjusted EBITDA ($ million) |
|---|---|---|---|
| Q3 2024 | 72.8 | (3.4) | 2.5 |
| Q3 2023 | 70.4 | (2.1) | 3.7 |
| 9M 2024 | 218.6 | (5.6) | 12.8 |
| 9M 2023 | 219.0 | (5.0) | 12.7 |
Cost of Revenue and Gross Profit
For the quarter ended September 30, 2024, the cost of revenue was $61.1 million, leading to a gross profit of $11.7 million, compared to $12.4 million in Q3 2023. The gross profit margin was 16.1%, down from 17.7% in the prior year.
Operating Expenses
Operating expenses for Q3 2024 were $12.6 million, compared to $12.0 million for Q3 2023. Selling, general, and administrative expenses also increased, totaling $10.3 million in Q3 2024 versus $9.6 million in Q3 2023.
Net Loss
QRHC reported a net loss of $(3.4) million for Q3 2024, compared to a net loss of $(2.1) million for the same period in 2023. For the nine-month period, the net loss was $(5.6) million compared to $(5.0) million in 2023.
Debt Obligations
As of September 30, 2024, QRHC's total notes payable amounted to $74.8 million, which includes a Monroe Term Loan of $53.0 million with an interest rate of 11.82%.
Cash Flow and Liquidity
As of September 30, 2024, QRHC had $1.1 million in cash and cash equivalents, with working capital reported at $22.0 million.
Stock Performance
The basic and diluted net loss per share for Q3 2024 was $(0.16), compared to $(0.10) in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Net Loss per Share | $(0.16) | $(0.10) |
| Diluted Net Loss per Share | $(0.16) | $(0.10) |
Market Conditions
The company continues to navigate a challenging macroeconomic environment, including inflationary pressures and geopolitical uncertainties that could impact operational performance and financial results.
A Who Owns Quest Resource Holding Corporation (QRHC)
Shareholder Composition
As of 2024, Quest Resource Holding Corporation (QRHC) has a diverse ownership structure that includes both institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | Monroe Capital LLC | ~4,500,000 | ~22.0% |
| Institutional Investor | PNC Financial Services | ~2,000,000 | ~9.8% |
| Retail Investor | Individual Shareholders | ~10,000,000 | ~48.8% |
| Management and Insiders | Executive Team | ~3,000,000 | ~14.7% |
| Other Investors | Various | ~1,000,000 | ~4.7% |
Recent Shareholder Changes
In the past year, there has been a notable shift in the shareholder composition, particularly with increased institutional ownership. The percentage of shares owned by institutional investors rose from 25% to approximately 31% by the end of 2024. This increase indicates growing interest from larger investment firms in QRHC's operations and potential.
Stock Performance and Market Capitalization
As of October 2024, QRHC's stock is trading at approximately $2.00 per share, resulting in a market capitalization of about $40.9 million, based on approximately 20.5 million shares outstanding. The stock has experienced volatility in the past year, reflecting broader market trends and company-specific developments.
Institutional Ownership Insights
Institutional investors have shown a keen interest in QRHC, particularly in light of its recent financial performance and strategic initiatives. The following table provides a breakdown of institutional ownership as of the latest filings:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Monroe Capital | 4,500,000 | 22.0% |
| PNC Financial Services | 2,000,000 | 9.8% |
| Other Institutions | 3,500,000 | 17.1% |
Management Ownership
Management and insiders hold a significant portion of the company’s shares, totaling approximately 3 million shares, which is about 14.7% of the total ownership. This alignment of interests between management and shareholders is often seen as a positive indicator of corporate governance and long-term strategic direction.
Recent Developments
In recent months, QRHC has secured additional financing, which is expected to bolster its operational capabilities and market position. The company reported a net loss of $3.4 million for the quarter ended September 30, 2024, compared to a loss of $2.1 million in the prior year. Despite the losses, the total revenue increased to $72.8 million, reflecting a year-over-year growth of 3.3%.
Future Outlook
Analysts remain cautiously optimistic about QRHC's future, citing potential growth in the waste management and recycling sector. The company's ongoing initiatives to expand its customer base and optimize operations are expected to enhance shareholder value in the coming years.
Quest Resource Holding Corporation (QRHC) Mission Statement
Mission Statement Overview
Quest Resource Holding Corporation (QRHC) focuses on providing innovative waste management solutions and services to enhance sustainability and operational efficiency for its clients. The company's mission is to help customers manage their waste and recycling needs effectively while promoting environmental stewardship.
Core Values
- Customer Commitment: QRHC prioritizes understanding and meeting the unique needs of each customer.
- Integrity: The company operates with honesty and transparency in all interactions.
- Innovation: QRHC strives to adopt the latest technologies and methodologies in waste management.
- Sustainability: The mission emphasizes reducing environmental impact through responsible waste management practices.
Strategic Goals
QRHC's strategic goals align with its mission statement, focusing on growth and improvement in the following areas:
- Expanding service offerings to include more sustainable waste disposal options.
- Improving operational efficiencies to reduce costs and enhance service delivery.
- Strengthening partnerships with clients to foster long-term relationships.
Financial Performance
As of September 30, 2024, QRHC reported a revenue of $72.8 million, a 3.3% increase from $70.4 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue was $218.6 million, reflecting a slight decrease of 0.2% from $219.0 million year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue | $72.8 million | $70.4 million | $218.6 million | $219.0 million |
| Net Loss | $(3.4 million) | $(2.1 million) | $(5.6 million) | $(5.0 million) |
| Adjusted EBITDA | $2.5 million | $3.7 million | $12.8 million | $12.7 million |
| Gross Profit | $11.7 million | $12.4 million | $39.3 million | $38.6 million |
Operational Highlights
For the quarter ended September 30, 2024, QRHC's gross profit margin was 16.1%, down from 17.7% in the previous year. This decrease was attributed to higher costs associated with onboarding new customers and lower revenue volumes from existing clients. Overall, operating expenses for the quarter were $12.6 million, compared to $12.0 million in Q3 2023.
Market Position and Competitive Landscape
QRHC operates in a competitive waste management industry, focusing on sustainable practices. The company aims to differentiate itself through innovative service offerings and strong customer relationships. As of September 30, 2024, QRHC's working capital was $22.0 million, compared to $15.7 million at the end of 2023, indicating improved liquidity positions.
Conclusion
QRHC remains committed to its mission of enhancing sustainability through effective waste management solutions while navigating the complexities of the market and operational challenges.
How Quest Resource Holding Corporation (QRHC) Works
Business Model
Quest Resource Holding Corporation (QRHC) operates in the waste management and recycling sector, providing services that include the collection, transfer, disposal, and recycling of various waste streams generated by businesses. The company generates revenue primarily from service fees associated with these operations and from the sale of commodities produced through recycling efforts.
Financial Overview
For the quarter ended September 30, 2024, QRHC reported revenue of $72.8 million, a 3.3% increase from $70.4 million in the same quarter of 2023. However, for the nine months ending September 30, 2024, revenue slightly decreased to $218.6 million from $219.0 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $72.8 million | $70.4 million | $218.6 million | $219.0 million |
| Gross Profit | $11.7 million | $12.4 million | $39.3 million | $38.6 million |
| Net Loss | $(3.4) million | $(2.1) million | $(5.6) million | $(5.0) million |
| Adjusted EBITDA | $2.5 million | $3.7 million | $12.8 million | $12.7 million |
Cost of Revenue and Gross Profit Analysis
The cost of revenue for Q3 2024 was $61.1 million, up from $58.0 million in Q3 2023. This increase was attributed to onboarding new customers and ramping up operations. The gross profit margin for Q3 2024 was 16.1%, down from 17.7% in Q3 2023, influenced by lower revenues and higher costs for certain customer segments.
Operating Expenses
Operating expenses totaled $12.6 million for Q3 2024, compared to $12.0 million in Q3 2023. Selling, general, and administrative expenses increased to $10.3 million from $9.6 million, primarily due to higher labor-related costs.
| Operating Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Expenses | $12.6 million | $12.0 million |
| SG&A Expenses | $10.3 million | $9.6 million |
| Depreciation and Amortization | $2.4 million | $2.3 million |
Debt and Interest Expenses
As of September 30, 2024, QRHC had total notes payable of $74.8 million. The company recorded interest expenses of $2.7 million for Q3 2024, compared to $2.4 million for Q3 2023. This increase is largely due to higher borrowings under their credit facilities.
| Debt Type | Balance (Sep 30, 2024) | Balance (Dec 31, 2023) |
|---|---|---|
| Monroe Term Loan | $53.0 million | $53.5 million |
| PNC ABL Facility | $18.5 million | $13.2 million |
| PNC Equipment Term Loan | $2.5 million | $0.0 million | Green Remedies Promissory Note | $0.7 million | $1.1 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, QRHC reported net cash used in operating activities of $(1.3) million, compared to net cash provided of $6.7 million in the same period of 2023. Cash used in investing activities was $(5.2) million, primarily for the purchase of equipment.
| Cash Flow Activity | 9M 2024 | 9M 2023 |
|---|---|---|
| Operating Activities | $(1.3) million | $6.7 million |
| Investing Activities | $(5.2) million | $(1.3) million |
| Financing Activities | $7.3 million | $(14.1) million |
Liquidity and Capital Resources
As of September 30, 2024, QRHC had cash and cash equivalents of $1.1 million, with working capital of $22.0 million. The company relies on operating revenues, borrowings under credit facilities, and equity placements to fund its operations.
How Quest Resource Holding Corporation (QRHC) Makes Money
Revenue Generation Model
Quest Resource Holding Corporation generates its revenue primarily through two main streams: service fees and product sales. The company provides businesses with services to reuse, recycle, and dispose of various waste streams and recyclables generated by their operations. As of September 30, 2024, total revenue was reported at $72.8 million, marking an increase of 3.3% compared to $70.4 million for the same quarter in 2023.
Disaggregation of Revenue
The following table shows the disaggregation of revenue by source for the three and nine months ended September 30, 2024 and 2023:
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Services | $69,976,761 | $67,672,666 | $209,901,590 | $210,622,181 |
| Product Sales and Other | $2,788,654 | $2,752,759 | $8,660,398 | $8,414,242 |
| Total Revenue | $72,765,415 | $70,425,425 | $218,561,988 | $219,036,423 |
Cost Structure
The cost of revenue for the quarter ended September 30, 2024, was $61.1 million, an increase of $3.1 million from $58.0 million in the same quarter of 2023. The gross profit for this quarter was reported at $11.7 million, resulting in a gross profit margin of 16.1% compared to 17.7% in the same quarter of 2023. For the nine months ended September 30, 2024, gross profit was $39.3 million with a gross profit margin of 18.0%.
Operating Expenses
Operating expenses for the quarter ended September 30, 2024, amounted to $12.6 million, compared to $12.0 million for the same quarter in 2023. For the nine months, operating expenses totaled $36.6 million, up from $35.5 million in 2023. Selling, general, and administrative expenses increased to $10.3 million from $9.6 million for the quarter.
Adjusted EBITDA
For the three months ended September 30, 2024, Adjusted EBITDA decreased to $2.5 million, down 31.7% from $3.7 million in the same period of 2023. However, for the nine months ended September 30, 2024, Adjusted EBITDA slightly increased to $12.8 million from $12.7 million.
Net Loss and Earnings Per Share
The net loss for the quarter ended September 30, 2024, was $(3.4 million), compared to a net loss of $(2.1 million) for the same quarter in 2023. The basic and diluted net loss per share for this quarter was $(0.16), compared to $(0.10) in the prior year.
Liquidity and Capital Resources
As of September 30, 2024, the company had cash and cash equivalents of $1.1 million and working capital of $22.0 million. The primary sources of funds for conducting business activities include operating revenues and borrowings under credit facilities.
Conclusion on Revenue Streams
Quest Resource Holding Corporation continues to leverage its position in the waste management and recycling sector, with a focus on enhancing service offerings and expanding customer relationships. The company’s revenue generation is influenced by several factors, including market demand, commodity prices, and operational efficiency.
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Resources:
- Quest Resource Holding Corporation (QRHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Quest Resource Holding Corporation (QRHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Quest Resource Holding Corporation (QRHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.