Quest Resource Holding Corporation

Good afternoon, ladies and gentlemen, and welcome to the Quest Resource Holding Corp third quarter 2024 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press zero for the operator. This call is being recorded on Thursday, November 7th, 2024. I would now like to turn the call over to David Mossberg, Investor Relations. Please go ahead.

Thank you, Andrew, 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 quests. 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 currents, expectations, estimates, projections, beliefs, and assumptions, and involve 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 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 that the data and other information are accurate, we caution that Quest has not independently verified the reliability of the sources of the information. Certain non-GAAP financial metrics 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 that 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 press release. With all that said, I'll now turn the call over to Ray Hatch, President and Chief Executive Officer.

Thank you, Dave, and thank you all for joining us on today's call. Our financial results for the third quarter did not show the growth outcome that we had anticipated. I'm disappointed that despite the record level of new client growth and the enhancements to our technology platform, results have been muted by a temporary increase in costs and economic headwinds being experienced by clients in the industrial end market. While it's not yet apparent in the financial results, we remain incredibly excited about the future of the company. We can see the fundamentals of the business are strong, We can see the size and growth of the pipeline, and the organic growth engine is hitting on all cylinders. We can see how technology implementation is progressing and beginning to demonstrate efficiency gains. But at the same time, we're frustrated that as we continue to build a scalable platform, periodic events, most of which have been more than one-off in nature, have impacted our ability to consistently demonstrate the fundamental improvements in our financial results. We are confident that our company will be better off having overcome the challenges that have come from the rapid growth and driving efficiencies through the business. And despite the disappointing results, we've continued to position our company for success in the future. The financial outlook for our company is strong. Revenue contribution from new and existing clients added year to date continues to ramp as expected. With revenue contribution during the third quarter from the nine new clients added this year, At just 60% of the expected fully run rate, contribution from new clients should continue to be a significant source of embedded growth in the quarters to come. In addition, efficiency initiatives and operating leverage should continue to drive improvements in profitability. We've continued to work to strengthen our balance sheet, and we expect to complete the refinancing of our debt prior to the end of the year. And in doing so, we expect to benefit from a significant reduction in our overall interest rates and also in improved terms. I'll now turn the call over to our CFO, Brett Johnston, to review financials, and I'll be back to give you a review on our strategic initiatives.