Quest Resource Holding Corporation

and welcome to the Quest Resource Holding Second Quarter 2021 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to David Mossberg, Investor Relations. Please go ahead, sir.

Thank you, Justin, and thank you, everyone, for joining us on this call. Before we begin, I'd like to remind everyone that this conference call may contain predictions, estimates, and other forward-looking statements regarding future events and future performance of Quest. Use of words like anticipate, project, estimate, expect, intend, believe, and other similar expressions are intended to identify those forward-looking statements. Such forward-looking statements are based on Quest's current expectations, estimates, projections, beliefs, and assumptions, and involve certain significant risks and uncertainties. Actual events or Quest results could differ materially from those discussed in the forward-looking statements as a result of various factors which are discussed in greater detail in Quest filings with the Securities and Exchange Commission. We're cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties. Quest forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required to do so by law. In addition, in this call, we may include industry and market data and other statistical information as well as Quest observations and views about industry conditions and developments. The data and information are based on Quest estimates, independent publications, government publications, and reports by market research firms and other sources. Although Quest believes these sources are reliable and the data and other information are accurate, we caution that Quest has not independently verified the reliability of the sources or the accuracy of the information. Certain non-GAAP financial measures will be discussed during this call. These non-GAAP measures are used by management to make strategic decisions, forecast future results, and evaluate the company's current performance. Management believes the presentation of these non-GAAP financial measures is useful to investors' understanding and assessment of the company's ongoing core operations and prospects for the future. Unless it is otherwise stated, it should be assumed that any financials discussed in this call will be on a non-GAAP basis. Full reconciliations of non-GAAP to GAAP financial measures are included in today's earnings release. With all that said, I'll turn the call over to Ray Hatch, President and Chief Executive Officer.

Thank you, Dave. Thanks, everyone, for your interest in Quest. We had great momentum coming into the year, and that momentum continued during the second quarter and thus far into the third. The second quarter's financial performance was exceptional across all metrics. Top-of-line growth was 68% relative to last year, which was due to a combination of organic growth, post-pandemic recovery, and M&A. Organic revenue growth, which excludes M&A, was more than 50% year over year. I will point out that strong organic growth performance was not just related to post-pandemic recovery. To provide another reference point, if we compare second quarter of 2021 to the second quarter of 2019, revenue increased over 30 percent organically compared to that period. Again, this is organic growth excluding the acquisitive growth in the comparison. Gross profit dollars grew by more than 55 percent year-over-year and grew 6 percent sequentially. The key attributes of our value proposition are clearly resonating with clients and prospects. In turn, they're rewarding us with new business and expanding their scope of services. M&A was also a significant contributor to year-over-year growth with the acquisition of Green Remedies continuing to perform as expected. We also closed on a similar acquisition on June 30th, which we expect will contribute to future growth, adding more than $500,000 to our annual EBITDA run rate. During the second quarter, we also showed strong improvement in profitability. EBITDA increased by 120% to $2.5 million. For perspective, EBITDA grew at more than twice the rate of gross profit dollars, which illustrates the earnings leverage and the scalability of our platform. Before I go into a review of market trends and strategic initiatives, I'm going to turn the call over to Lori Latham, our Chief Financial Officer, to overview the financials.