Quest Resource Holding Corporation

Thank you for standing by. This is the conference operator. Welcome to the Quest Resource Holding Corp second quarter 2023 earnings conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Dave Mosberg, Investor Relations Representative. Please go ahead.

Thank you, Ashia, and thank you, everyone, for joining us on the 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 or future performance of Quest. Use of the 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. You are 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... Quest 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 are also discussed during the call. These non-GAAP measures are used by management to make strategic decisions, forecast future results, and evaluate companies' current performance. Management believes the presentation of these non-GAAP financial measures is useful for investors' understanding of the assessment of the company's ongoing core operations and prospects for the future. Unless it is otherwise noted, 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 now turn the call over to Ray Hatch, President and Chief Executive Officer.

Thank you, Dave, and thanks, everyone, for your interest in Quest. We gained momentum during the second quarter with another significant increase in sequential financial performance. The $13.5 million in gross profit and the $5 million in quarterly EBITDA was the second highest gross profit in EBITDA quarterly performance in the company's history. Adjusted EBITDA increased 26%, and gross profit dollars increased 7% sequentially. Most of the growth came from ramping up new clients and penetrating existing ones. Improvements at RWS also contribute to the sequential increase, and we expect the business to provide a strong incremental contribution going forward. We also generated significant cash flow during the quarter and expect to be a strong cash generator this year. We've used the bulk of cash flow to reduce debt levels. Subsequent to the end of the quarter, we paid down another $2 million on our line with Monroe Capital for a total reduction of $7 million year to date. We continue to gain momentum during the second quarter, and we're executing well with our strategies. and we are on plan to deliver double-digit growth in gross profit dollars and adjusted EBITDA for the year. I'll now turn the call over to our CFO, Brett Johnston, for a financial overview, and I'll be back to discuss progress on our strategies. Brett?