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Quest Resource Holding Corporation Reports Second Quarter 2022 Financial Results
ソース: Nasdaq GlobeNewswire / 15 8 2022 15:00:01 America/Chicago
THE COLONY, Texas, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ: QRHC) ("Quest"), a national leader in environmental waste and recycling services, today announced financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Highlights
- Revenue was $76.9 million, a 108.7% increase compared with the second quarter of 2021.
- Gross profit was $14.7 million, a 115.4% increase compared with the second quarter of 2021.
- GAAP net income per diluted share attributable to common stockholders was $0.05, compared with $0.03 per share during the second quarter of 2021.
- Adjusted EBITDA was $6.6 million, a 161.3% increase compared with the second quarter of 2021.
- Adjusted net income per diluted share was $0.19 compared with $0.05 per diluted share during the second quarter of 2021.
Year-to-Date 2022 Highlights (June 30, 2022)
- Revenue was $148.4 million, a 106.3% increase compared with the same period of 2021.
- Gross profit was $25.9 million, a 95.6% increase compared with the same period of 2021.
- GAAP net loss per diluted share attributable to common stockholders was $(0.05), compared with net income per share of $0.09 during the same period of 2021.
- Year-to-date Adjusted EBITDA was $10.3 million, a 100.4% increase compared with the same period of 2021.
- Adjusted net income per diluted share was $0.25, compared with $0.13 per diluted share during the same period of 2021.
“Second quarter results demonstrate the capability of our business model to deliver strong financial performance in a difficult economic environment. We continue to see strength in the activity levels and waste volumes generated across our end markets. And, by driving operational efficiencies and the flexibility of our agreements, we were able to offset inflationary and other cost pressures. In addition, we continue to generate profitable growth from: new customers, expansion with existing customers, and recent acquisitions,” said S. Ray Hatch, President and Chief Executive Officer. “We are making progress to optimize recent acquisitions and expect to continue to enhance the margin profile and contribution from these businesses. Overall, we are on track with our growth plans and expect continued profitable growth for 2022 and over the next several years from both organic and acquisitive sources.”
Second Quarter 2022 Earnings Conference Call and Webcast
Quest will conduct a conference call Monday, August 15, 2022, at 5:00 PM ET, to review the financial results for the second quarter ended June 30, 2022. Investors interested in participating on the live call can dial 1-888-394-8218 within the U.S. or 1-323-701-0225 from abroad, referencing conference ID: 7664116. 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 https://investors.qrhc.com/investors. 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, non-GAAP financial measures, "Adjusted EBITDA," and “Adjusted Net Income” are presented. From time-to-time, Quest considers and uses these supplemental measures 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 these non-GAAP measures because it considers it an important supplemental measure of Quest's performance. Quest's definition of these adjusted financial measures may differ from similarly named measures used by others. Quest believes these measures facilitate 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. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company's GAAP measures. (See attached tables "Reconciliation of Net Income (Loss) to Adjusted EBITDA" and “Adjusted Net Income Per Share”).
About Quest Resource Holding Corporation
Quest is a national provider of waste and recycling services that enable larger businesses to 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 www.qrhc.com.
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 expectation to continue to enhance the margin profile and contribution from recent acquisitions and our expectation of continued momentum in 2022 and the next several years from both organic and acquisitive sources. 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 and the potential effect of inflationary pressures and increased interest rates on our costs of doing business, 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, 2021. 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
817.778.8424Financial Tables Follow
Quest Resource Holding Corporation and Subsidiaries
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (Unaudited) (Unaudited) Revenue $ 76,905 $ 36,858 $ 148,427 $ 71,960 Cost of revenue 62,236 30,048 122,510 58,710 Gross profit 14,669 6,810 25,917 13,250 Selling, general, and administrative 9,299 5,060 18,643 9,323 Depreciation and amortization 2,470 409 4,835 816 Total operating expenses 11,769 5,469 23,478 10,139 Operating income 2,900 1,341 2,439 3,111 Interest expense (1,590 ) (550 ) (3,146 ) (1,111 ) Income (loss) before taxes 1,310 791 (707 ) 2,000 Income tax expense 160 92 327 154 Net income (loss) $ 1,150 $ 699 $ (1,034 ) $ 1,846 Net income (loss) applicable to common stockholders $ 1,150 $ 699 $ (1,034 ) $ 1,846 Net income (loss) per common share: Basic $ 0.06 $ 0.04 $ (0.05 ) $ 0.10 Diluted $ 0.05 $ 0.03 $ (0.05 ) $ 0.09 Weighted average number of common shares outstanding: Basic 19,279 18,823 19,262 18,665 Diluted 21,349 20,501 19,262 20,045 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(Unaudited)
(In thousands)Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income (loss) $ 1,150 $ 699 $ (1,034 ) $ 1,846 Depreciation and amortization 2,550 481 4,987 957 Interest expense 1,590 550 3,146 1,111 Stock-based compensation expense 326 506 585 816 Acquisition, integration, and related costs 668 117 1,974 136 Other adjustments 113 64 309 117 Income tax expense 160 92 327 154 Adjusted EBITDA $ 6,557 $ 2,509 $ 10,294 $ 5,137 ADJUSTED NET INCOME PER SHARE
(Unaudited)
(In thousands)Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Reported net income (loss) (1) $ 1,150 $ 699 $ (1,034 ) $ 1,846 Amortization of intangibles (2) 2,221 289 4,396 578 Acquisition, integration, and related costs (3) 668 117 1,974 136 Adjusted net income $ 4,039 $ 1,105 $ 5,336 $ 2,560 Diluted earnings per share: Reported net income (loss) $ 0.05 $ 0.03 $ (0.05 ) $ 0.09 Adjusted net income $ 0.19 $ 0.05 $ 0.25 $ 0.13 Weighted average number of common shares outstanding: Diluted (4) 21,349 20,501 21,541 20,045 (1) Applicable to common stockholders (2) Reflects the elimination of non-cash amortization of acquisition-related intangible assets (3) Reflects the add back of acquisition/integration related transaction costs (4) Reflects adjustment for dilution as adjusted net income is positive BALANCE SHEETS
(In thousands, except per share amounts)June 30, December 31, 2022 2021 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 4,217 $ 8,428 Accounts receivable, less allowance for doubtful accounts of $1,729 and $841 as of June 30, 2022 and December 31, 2021, respectively 50,649 39,949 Prepaid expenses and other current assets 2,873 1,952 Total current assets 57,739 50,329 Goodwill 82,349 80,622 Intangible assets, net 37,614 39,119 Property and equipment, net, and other assets 4,587 5,596 Total assets $ 182,289 $ 175,666 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 35,101 $ 30,196 Other current liabilities 5,572 6,195 Current portion of notes payable 1,159 1,329 Total current liabilities 41,832 37,720 Notes payable, net 66,401 62,409 Other long-term liabilities, net 707 1,909 Total liabilities 108,940 102,038 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued or outstanding as of June 30, 2022 and December 31, 2021 — — Common stock, $0.001 par value, 200,000 shares authorized, 19,117 and 19,046 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 19 19 Additional paid-in capital 171,073 170,318 Accumulated deficit (97,743 ) (96,709 ) Total stockholders’ equity 73,349 73,628 Total liabilities and stockholders’ equity $ 182,289 $ 175,666