Quest Resource Holding Corporation

Good afternoon, ladies and gentlemen, and welcome to Quest Resource Holding Corp fourth quarter and full year 2024 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If anyone has any difficulties hearing the conference, please press star zero for operator assistance at any time. I would now like to turn the conference call over to Mr. Dave Moosberg, investor relations representative. Please go ahead.

Thank you, operator, 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 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 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 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 by law to do so. 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 research firms and other sources. Although Quest believes these sources are reliable and that data and 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 for investors' understanding of the assessment of the company's ongoing core operations and prospects for the future. Unless it is otherwise stated, it should be assumed that 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 Dan Freberg, Chairman of the Board.

Good afternoon, and thank you for joining us on today's call. I'm Dan Friedberg, Chairman of the Board at Quest. Joining me on the call today is Perry Moss, our newly appointed CEO, and Brett Johnston, our CFO. Today we would like to discuss what is going well, where we have not performed, what we're doing about it, and where we are headed. First, I am optimistic about the future. Quest is well-positioned in what is a very attractive market. Customers are recognizing the value of an asset-light services model. Our ability to find solutions for their waste disposal needs and doing so at the lowest possible cost is increasingly important in an industry that is changing how it disposes of waste and is charging higher prices for services. We are adding clients at record rates, many of whom are initiating larger programs than we have seen previously. Moreover, these customers are providing positive referrals, which is helping to fill our increasing pipeline and enhance our reputation in the marketplace. Second, we have not executed at the level or with the consistency that we need. Our growth is creating opportunities for expanded margins and increasing scale benefits, but we have not converted that top-line momentum into sustained margin and profit growth. The issues we have experienced over the past year, temporary cost increases coming from onboarding new clients, implementing our new vendor management system, the impact of client attrition and weakness in our industrial clients and markets have all impacted our results. We have grown quickly over the past few years, and quite frankly, This has exposed weaknesses in our processes and systems. These are execution issues and are all addressable. But while they are improving, we recognize we need to do more, faster. Third, we are taking decisive action. We are reducing costs, implementing process improvements, accelerating the integration of technology into our workflow. supporting training and collaboration, increasing accountability, and targeting improved performance across the business. By achieving these objectives, we will increase the value we bring to clients, improve employee satisfaction, increase end to end business efficiency, and be a more profitable and scalable business. We are confident in the future, but we clearly recognize that it is time to deliver on the promise and to convert our growing platform into a consistent source of increasing shareholder value. Before we review last year's performance, I wanted to take a moment to discuss the announcement we made this afternoon that Ray Hatch is retired as CEO, and that we have promoted our Chief Revenue Officer, Perry Moss, to CEO. Ray has been a major force at Quest over the past nine years, a key architect in our successful growth. He's built a strong culture with an organization committed to adding value to our clients. We are pleased that Ray will remain on the board of directors, and I wholeheartedly want to thank him on behalf of the board and management for all his contributions. Over the last number of months, the board has been working to find the best CEO for the company. After considering the skills needed, we determined that driving operating efficiencies and generating continued growth are the two critical elements that we need to achieve our objectives. Given that, it was clear to us that Perry is the perfect candidate. Throughout his career, he has consistently delivered disciplined, process-driven successes in business development, operational, and general management roles. Perry joined Quest in July 2023 and has served as our Chief Revenue Officer since June 2024. He has more than 30 years of operating experience in our industry. Prior to joining us, Perry consistently succeeded in general management roles at Rubicon Technologies, Oakleaf Holdings, and at Smurfit Stoneway Services. Since joining Quest, Perry has fundamentally changed our sales approach by introducing metric-driven, results-oriented discipline to our sales function, achieving in a short time records for client wins, new revenue, and pipeline growth. We are excited for him to work with our great team to implement the same performance culture and metrics across the company. Before passing the call to Brett, I'd like to ask Perry to introduce himself.