Quest Resource Holding Corporation

Good day everyone and welcome to the Quest Resource Holding Corporation first quarter 2025 earnings call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host,

Thank you, Matthew, 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 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 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. 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 other 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 or the accuracy of the information. Certain non-GAAP financial measures will be discussed during this call. These non-GAAP measures are used by the 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 now turn the call over to Dan Freeberg, Chairman of the Board.

Thank you, Dave. Good afternoon, and thank you for joining us on today's call. Joining me today are Perry Moss, CEO, and Brett Johnston, our CFO. Before I turn it over to Brett and Perry, I want to emphasize our commitment as a board and a management team to aggressively driving change and enhancing shareholder value. The results in the first quarter were as expected. As discussed in our last call, we decisively implemented a series of actions which we will expect will drive both near and long-term improvements. We completed the sale of the non-core part of the RWS business, which had been a source of inconsistent financial performance. In addition to the ongoing cost savings related to exiting this business, the sale generated $5 million in cash, which is used to reduce debt. In total, our cost reduction actions have reduced SG&A costs by $3 million on an annualized basis and should be reflected in lower SG&A costs going forward. We added two highly experienced executives, promoting Kerry Moss to CEO and adding Nick Ober as Senior Vice President of Operations, adding to an already strong operating team. We expect even further long-term savings and efficiency gains as we implement ongoing initiatives and drive process improvements. We are focused on generating cash, improving profitability, lowering debt, and increasing operating efficiency. In addition, by working in partnership with our lenders, PNC and Monroe, we have amended the terms of our debt agreements. These changes will provide increased flexibility as we implement our operating improvements over the coming months. Finally, we wanted to welcome Bob Lifstein to the Board of Directors. We met Bob over a year ago. Bob is a seasoned financial executive, has an audit background with a big four firm and will be a good addition to the board. In summary, we have implemented a series of changes in our cost structure, in our management team, in our operating philosophy, all focused on improving operating performance. We are pleased with the progress of these changes and are beginning to see the initial operating benefits. In addition, I would like to stress that our value proposition continues to resonate with prospective and existing clients, and our pipeline of opportunities continues to grow. With that, I'll turn the call over to Brett and Perry. Brett?