QRHC - Earnings call transcript Q3 2019 | Quest Resource Holding Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Please standby. Good day, ladies and gentlemen. Welcome to the Quest Resource Holding Corp.’s Third Quarter 2019 Earnings Call. Today’s call is being recorded.

At this time, I would like to hand the conference over to David Mossberg, Investor Relations Representative. sir. ahead, go Please

David Mossberg

and everyone Lisa, on joining the call. thank you, for you us Thank

I to expect, to other statements. would this begin, like are performance we Before like intended of Use and may future or words predictions, other of regarding expressions Quest. conference project, remind forward-looking contain estimates believe statements identify and estimate, those forward-looking anticipate, events future intend, call that everyone similar

for revenue, significant statements industry for are expectations progress projections, Forward-looking statements and based forward-looking include and growth, periods, forward future regarding Quest’s and statements trends, going timing. Quest’s and and estimates, outlook and beliefs assumptions and opportunities future margins on risks Quest’s also regarding prospects, business position uncertainties. Quest’s in strategies Such expectations, involve and belief profitability Quest’s industry Quest’s current

Actual discussed Quest’s on Quest’s of trends, with those Securities nature other Exchange differ XXXX. in a and the Quest’s the materially factors, XX, competitive report the reduced including events from result results its year-ended greater detail as XX-K market discussed in for including Form changing and December various statements or on filings could demand industries, Commission, forward-looking of

on cautioned uncertainties. for such You undue SEC and place not our are additional to consult to statements and reliance filings risks

to Quest’s required You we unless disclaim and made at can to are qrhc.com. such those of documents statements the date website by presented any find so on Quest’s as law. forward-looking statements update do duty

conditions firms The and and other on may industry sources. In independent by well government statistical based about and addition, other and Quest’s observations and and market data reports publications, information, Quest’s market in as developments. this research publications are estimates, data and industry as information include call, we views

the are Although, Quest of reliable has verify of not other are independently sources the we the information and reliability or the believes information. sources the that and caution accurate, Quest accuracy data these

its own developments and about with view industry supported or conditions agreed other may observations Quest’s by addition, be industry observers. In not are and and or participants

will are discussed this and measures believes forecast investors’ useful financial company’s ongoing management financial current measures future during core the these non-GAAP to These understanding non-GAAP company’s for of and call. are presentation the non-GAAP by Management Certain future. performance. evaluate be for assessment of measures that make strategic and results decisions, operations used prospects the

basis. otherwise it any stated, is financial to financials will be call GAAP non-GAAP release. of in it that earnings are this measures Unless non-GAAP discussed today’s assumed Full should be on on reconciliations a included

the Hatch, I that Executive call turn Ray now Chief over President With to said, will and Officer.

Ray Hatch

Thank to you, to third on our call everyone Dave. quarter welcome financial And results. our discuss

today our Latham, is Vice Financial Chief President Joining Laurie Officer. and me Senior

we to levels produced and gross EBITDA solid and We record are XXXX. adjusted during again pleased profit financial produce on during third the that remain track quarter results of

We gauge are profit and the to focus is will success. to the use our to key gross grow dollars, that continue we on metric business managing which

year-to-date gross third up gross and has XX%. for our record profit profit on results, in have Based quarter, the we profit performance increased was X% the quarter, gross

well business the with trajectory the our and customer Our opportunities the as of ever as grow relationships. pipeline continues as excited about and to of as am of customers I strength existing new

Laurie get I review to over turn I to Before call going financials. to into more detail, the the am

Laurie Latham

on everyone Thank you, Ray and the good call. afternoon to

due increased was XXXX, the services from new continuing offset away from third decrease focus Year-to-date, with both year-over-year. decrease of a X.X% value last by partially $XX.X to customer quarter higher base. in added margin lower generally our customer low service transition exiting by to million, value the was of in solutions decrease and quarter resulted revenue services, primarily compared of late The revenue which business strategic our million, Third a was X.X% year. $XX

I revenue our quarter. comparisons will these the in also likely that fourth affect are to factors continue to note

gross show to during we for profit fourth the to growth expect year. year-over-year continue greater quarter growth the However, than and XX% reflect

as was cost both to $X.X gross income indicated a a third statement, The Moving profit X.X% and improvement growth services. lower $XX.X base, and down of year-over-year subcontracted increasing profit gross continuing services new of quarter combination increased record, gross was to due customer XX% year-over-year. Ray million. to was profit million, in certain Year-to-date, from the our

quarters quarterly services. to mix several was over and cost of third margin quarter last the in subcontracted XXX-basis-point business a our a primarily certain the Gross in compared last in XX.X% of margin shift quarter year. due for a with gross improvement record the and service was improvement third revenue, The the lower

vary margin revenue mix to service gross on mix changes. last depending percentage range for targeted and believe from has for Our should our have said margin remain due above our of it gross we several quarter-to-quarter, elevated remainder that been quarters and as other the can the the year factors. previously, we Also,

expect we excess gross and to targeted margins mid-teens. of our generate the of forward, Going XX% profit range grow within in gross

was X.X% lesser to and quarter in related depreciation and expenses. debt offset advertising lower primarily The extent, million Third to expense to lower amortization bad by tradeshow increased and expenses of expenses increase million. decreased expenses quarter $X.X a operating of labor $XXX,XXX, and year-over-year operating partially $X.X third decrease which in

Year-to-date, bad certain entered $XX.X The as depreciation related million. to we in decreased to assets to charge XXXX. to that write-off in took in operating amortization receivables the decrease fully a July last was a of expenses and related were debt quarter intangible year from that expense The X.X% had third bankruptcy. amortized decrease customer

dollar half expect to Going about rate. rate expenses of profit the growth grow operating at our we gross forward,

year-to-date was unchanged during relatively quarter comparisons. prior-year expense and the Interest third versus

$XXX,XXX year, $XXX,XXX versus For third versus expense $XXX,XXX year-to-date quarter, was interest expense interest was last and last year. $XXX,XXX

loss $X.XX $X.XX for year, Year-to-date, included of share to third XXXX basic from of or quarter this which a transaction. of and share for $X.XX the stockholder expenses April net a per third per of to per loss $XXX,XXX compared related basic per share of XXXX, selling $X.XX XXXX. share share income improved was Net last diluted per year breakeven and the with loss quarter loss diluted net

EBITDA quarter Year-to-date, last which adjusted The improvement third for faster adjusted pace we reflects as year. continue to move Our operating million. leverage growth forward. will $XXX,XXX gross to adjusted EBITDA versus at in $X.X the adjusted our XX.X% than growing model, EBITDA profit increased the in profitability, to increased business a in allow EBITDA and XX.X%

balance the approximately with $X end September $XX the the drawn third of XXXX. our on compared from the increase at Turning our sheet, which the relatively and $X.X an of XX, of to million quarter We of had was credit beginning facility $X.X as balance unchanged was cash quarter, the third XXXX. million million of million year,

So, and discuss I he at the call outlook. the our will I -- back call, time on will will turn initiatives the this to Ray, over call

Ray Hatch

Laurie. you, Thank

progress and I over the major waste to review ultimately ever sustainability. want the Before to optimize years. enterprises more believe that strategies, last minute stream, their a few I review large we our to improve business has And a convert player, landfills take waste become are of positioned their from I helping than transformed how our well

simple added dimensional basis years a several business, from in right ago position puts us derived of competing which much price. revenue service, one the targeting are a we non-value of is our First, on

not margin of this a good amount generated revenue, returns. or terms was business it Although, in of significant

create based service based to scale, reporting customer factors to compete us These and now these allows data we customer and very a our valuable attributes higher Competing offerings, analytic margin. broad Instead, national excellent relationship on on earn a scope service. sustained capabilities, are of customers. stronger

business our gross profile. growth change clearly of transformation is profit dollars in the and margin of gross the Second, in evident the our

have excess around X% Gross Over X% the margin eight is annually. than the doubled for to in compounded last three the grown three more profit last years, gross quarters. from ago years mid-teens of consistently in dollars

corporate substantially than long-term of have three changed In ever April and of our in, owned based changed ownership owned more we are We our implication now positive once shares by and our dozen. about believe liquidity investors by valuation. this a XX% is that year, shareholder for this a base our Additionally, governance.

past interest. aligning Board committed how and also this stock guidelines policy. ownership have illustrate policies are the that shareholder include management trading to friendly we policies In derivative adopted year, These a with shareholder and

want are the growth. next we this for and us the choosing speaks I are to customers value reasons talk include core core positioned about how to to how The about our will I following. reasons -- first really talk value proposition.

have our We By greater buying volumes aggregate have simply power. we customers scale. from

scope to all handle We our the turnkey of customers’ streams. We services. solution single for simpler broad have things waste make of a

We to sustainability streams help waste goals. landfill avoid what are are available. costly also our We increasing regulatory stay reputation. have and/or We requirement. to know damage We compliance help streams in to ways fines Many meet and experts. customers customers optimize alternatives

and We data comprehensive provide analytics. reporting

provides operations Our technology data and reporting. and gives and operational set to them sustainability external their be used customers internal in a important insight into common

have customer customer opportunities focus. great continually We expand and we loyalty with customers to our so, their solutions for closely by them. work And We with find support intense to efforts enjoy an doing them. and

and their waste attributes customers, to win management who All business with are of with choosing existing are streams. these trust new new helping us of us the

more and The aligned of So can we service the key win asset resources sustainability with do. far many have goals. question heavy becomes compete our with that we greater customers which we and we is providers, how compete are do large than financial reason

drive Our little volume find reduce service are They to landfill by larger like waste. to financially to the competitors incentive landfills, or more often our operations. divert drive with motivated to waste that competitors costs own volume to clients their landfills. their are We over assets

an the Wings wins update doing is Wild a recent job there. and the in up Buffalo running and quarter, great restaurant for now in And our are vertical. third we on

secured has XXX another service mentioned This we quick restaurant restaurant a last call. that nationwide. have We locations is also quarter’s on that approximately

by on are of this onboard December customer this year. to schedule We

success profile recent restaurant raised has our within in the sector. Our the vertical

Senior we and I Sales announced in last Matt our week. had Matt experience also Sales leader has VP exactly that. about wanted our that want of Lewis, end VP of -- that significant sales new a markets targeted We comment to

management. great markets has focused knowledge end years These companies. with of services are is to of He broad are decades we of experience we extensive the a He addition can end He ground that that Quest. selling in brings multiple running. two has manufacturing and large industrial the to on. He including markets provide experience the a waste hit in XX

leadership that our waste many which his complex of operational In experience have addition he their knowledge sales requirements. customers brings stringent regulatory with streams, to an will help

review and EBITDA. I continued growth in I call adjusted the our profit outlook for to questions, to Before want open gross

to that year-to-date continue we expect positioned solid gross in dollars continue performance, plus the with outlook, future. are in XXXX XX% our for to Regarding drive to profit and

incremental expect over will a dollar leveraged We fixed in growth gross costs profit and our expect adjusted operating and higher be profit contribution rate EBITDA.

his excited new are sales proven We our welcome record. with great track and reputation leader to

excited are prospects, and opportunities our about We going business outlook forward.

our I look business value. sustainable revenue, believe that more importantly, foundation forward our to updated profitability grow and We on shareholder progress. allows our stronger you will long-term for consistently keeping

now questions. on provide Operator? like the can for operator instructions up queue listeners We how

Operator

Gerry [Operator you, Thank first from Capital. Sweeney, ROTH sir. Our Instructions] question comes

Gerry Sweeney

Thanks Hey. evening, Laurie. and for taking Good my call. Ray

Ray Hatch

Gerry. Hi,

Laurie Latham

Yes. Hi.

Gerry Sweeney

Earlier one you bottomed that still issues. larger any to some give those or out, related have or talked client also clients this specifics on seeing year, just you related us industrial clients your Is front? can they some headwinds, that headwinds of seeing trade probably, about

Ray Hatch

Gerry, but, give dollars profit tough that and headwinds. the client business overall from still growing Luckily is our It’s structured client gross revenue specifics, our the we them. actually streams are with the facing yeah, way is to base,

I waste to are So that’s headwind. the key us. volume their But pure streams, relative as they still to of facing on key obviously, key mentioned, are a just and that’s, the one

Gerry Sweeney

it. Got

just out I here, little see optimization dollars industrial increasing. those reduction of other third-party is it -- thinking loud even costs a fair in bit clients, profit while that little services, are but So, incurred is or client or that that reduction as revenue, some your we bit -- say, with mean, your you to some a is going of your gross of down actually about but that continued revenue be could shifting that --

almost So worthy? internal I you that’s know sort little are your of se. per actually revenue growing

Ray Hatch

we, are that. talk have. but to area Yeah. these seeing profit That’s will continuing beyond lot about is are impact a -- that’s that’s mean, we obviously, conversation, move there particular client, we But goes We and good in a to that Absolutely. Gerry. There gross I focus. other our is we -- initiatives talking forward one of about variables dollars some this insight, whole revenue. it be one are of

on… As we are focused

Gerry Sweeney

Okay.

Ray Hatch

Yeah. are And than to broader that. I what alluding you think that’s

for we optimizers it manage based -- topline, And profit, positive our impact results along and negative across quarterly solvers their that, impact are had on in but got with and sometimes we on better. clients. our look -- doing gross a cost are problem it’s we As helping obviously, consistent on our clients a our our

Gerry Sweeney

Yeah. we getting optimization a spoken great, of into need today customers a RFQs does sort larger you versus or actually additional growth the to level six right? like deeper like ago actual solving just are about step that’s existing base onboard And pipeline go of even have months get after. of a really given? So stair you bit interest look new or that How works the little you customers that. But obviously, this, would it problems, things and

Ray Hatch

our last working as sure well, after -- that That’s are we of and been a months have one us the is challenges business really I over good. I fits going profile. pipeline we helping mean, the the the making that itself Matt, type great had, clients and and have had there several in looks the pipeline that question. of we actually the is And

type And to say want would times. considerably not opportunities of reflective numerous now is pipeline our I we it as go. the cleaner just we targets more looks what discussed far trash as have defined profile by price-only pure be it’s and And as

having that. to we And left stuff we has is thankful last right, accelerated, Matt, am been and this to has done that see I where And help think, we have good that an accomplished quickly, that. needs that’s doing more really to focus here record our point What so I quarter, moving and is got there. is in track us. the all want be that, that got in

have pretty question move So The to as have believe bottomline this quickly and we forward it at optimistic. lot a is, the your pipeline of I answer prospects I we our feel great to got in possible as talent point.

Gerry Sweeney

The Part more question my should XXX in will fully then, guess, or I just correct, was full quick And impact? B, they I that December restaurants, and jump and was think, serve it. Buffalo Then one XQ, grow questions. be from highlights in queue. it fully Wings, quick by onboarded if in December I will memory Got Wild there? does two start the serves that back

Ray Hatch

Yeah.

the First Buffalo Gerry, first part, XA. Wild How’s question on XA. that, in started Wings

Gerry Sweeney

Yeah.

Ray Hatch

the through It’s Yes. Yes. its We quarter. well. had whole a it onboard taken a of lot really obviously always the It’s great. -- its been work locations, of it’s gone well, of has it’s lot gone and lot implementation but going --

impact The full QX. restaurants So we XXX beginning December. location have -- of in the kick-off should new

revenue part on quarter. the back we So have any fourth that won’t of until the

Gerry Sweeney

margin, jump line. execution, Thanks. and Okay. I the in on the you Got cost definitely And it. Perfect. will great congratulations front. that obviously, don’t back OpEx so need

Ray Hatch

right. All Gerry. you, Thank

Operator

the H.C. Joshi, question take today will Wainwright. next We Sameer from

Sameer Joshi

Hi Laurie. Ray. Hi,

Ray Hatch

Hi.

Laurie Latham

Hi. Yes.

Sameer Joshi

website, mentioned gross to to target growth? does to XX% or nominal of a relate that profit the XX%. Does your presentations of relate Yeah. your same growth growth In one on topline you your it

Ray Hatch

We are everything profit about. gross have primarily speaking to we based on dollars talked

We achieving to plan and have on been that do continuing that.

Sameer Joshi

Okay.

see that. we noise. I do revenues So, to hearing Hello, am sequentially, and this you we drop some background in speak

Ray Hatch

sorry. I you. am hear I

Sameer Joshi

Yeah.

Ray Hatch

Sameer. So, go ahead,

Sameer Joshi

you of because business we probably this in also do industrial growth restaurant that industrial But the understand client I is and it versus are drop large So headwinds. revenue so facing services in then verticals? reconcile how -- adding

Ray Hatch

sequential about speaking year-over-year? you or Are

Laurie Latham

Sequential.

Sameer Joshi

Sequential.

Ray Hatch

a mean, segment guess, talked I that much pretty profit larger industrial had that’s the dollars is, is about. impact grew, gross we that revenue why the I pretty significant we on the... Okay. it’s And impact pure Well, on -- the that

Laurie Latham

Yeah.

Ray Hatch

Laurie. Go ahead,

got You the notes.

Laurie Latham

offset base. one services, we Well, decrease some also customer streams words, ones. had primarily of is existing in client one have was the with other is lower which is new industrial by our Sameer, services just additional sequentially, that decline and the that customer are our by we increased doing waste margin from those we affected that And primarily do, of

primary was net a So that but industrial decline, had effect do to the client. the reduction with

Sameer Joshi

is analytics, new the speak related so data margins existing with service rate which So reporting one that more to services is contract? is and and attach of or -- this comprehensive you are high for your this seeing to

Laurie Latham

So, customers question your to utilize to our who Sameer, technology a it’s your with the certainly services that provide, in we am have question and for us. that portal don’t we do if correctly, getting to Do we I But we expand separately and hear correctly? driver sign-up that. for people continue charge

Sameer Joshi

I services in services charge was extra mean, gross those to are that add-on the the you leading I dollars under Yeah. profit. that or impression which are rise

Laurie Latham

do number with had more We correct Yes. Yes. types we in margins increase do -- of minute. customer. do it of a and the -- We more so revenue as let’s and we services that the increase services

Sameer Joshi

to moving or terms should talk as growing XX% in forward going are gross you So going to at revenues profit back forward of year-over-year bounce still see we XXXX, well? dollars plus

Ray Hatch

Yeah.

mentioned EBITDA EBITDA have I business got feeding double-digit to forecasted or we growth -- along mean, on Sameer, what’s projected our feeding finger growth, we scalability with growth. and gross our impact profit in the of earlier, obviously, the, that’s As anticipated dollars that,

we So that’s about. are what talking

investment I that for erratic and sense an think, dollars it makes in is We it, as and the still some in the you there. haven’t world company at profit in the mean really you look topline, from utilize spoken increase There with at metric. all gross the the to look nature revenue. to if the of perspective I -- of inconsistencies continuing the

Sameer Joshi

on front, still for EBITDA one do dollars, to up you targeted next And EBITDA going to just the based profit -- your the adjusted be increase X% in also going see adjusted X% target last year going the gross or Okay. up? adjusted our the one EBITDA if on

Laurie Latham

getting X% the EBITDA that what years progress and percentage But next what in to So we X% three over to we our that time is was that a we talked to at have period. about to towards fiveXyear are on making four that three-year are was that. a guidance years looking accomplishing great

Sameer Joshi

Understood.

Laurie Latham

and And already we look… are

Sameer Joshi

Okay.

Laurie Latham

already are Sameer, And our there. lower level we at obviously

allow to as that income… are margin we have continue we grow leverage both business forward for to grow net us to continue So and gross the our will that the percentage, to talked about looking in we grow that and

Sameer Joshi

in… Yeah. And

Laurie Latham

EBITDA. the … and for adjusted

Sameer Joshi

the you quarter, at Yeah. X.X%, third And already are in so…

Ray Hatch

That’s right.

Sameer Joshi

why be that’s could thinking and the horizon. three-year … to I to five-year X% was X% than closer the

Ray Hatch

Well, it misunderstand. definitely be, don’t can

of to We thing are we exceeded. we trying to now. X% make have there But is I sure don’t cycles there Sameer, expectation be a is through the are that issue. create But same lot on expectation. margin, I want metrics yeah, reasonable our manage the your out to could that that gross to there and are we X% in at we business mean, we an that mean, point, an But, that some

Laurie Latham

Yeah.

Ray Hatch

take doesn’t it a to what imagination it X% to envisioning takes X%, get okay? lot So to of

Sameer Joshi

Right. Right.

Laurie. Thanks, Ray. Thanks, Okay.

Ray Hatch

Thank Sameer. you, Yeah.

Laurie Latham

you. Thank

Operator

[Operator Instructions] Up next Wynnefield is Nelson Obus, Capital.

Nelson Obus

Hey, Ray.

to you out In would to cast years, the in you how that your take value-added strategic shift where industrial the were to changes on expect now like, level, around mind current be to the three to be, pipeline since three business? versus we look in new Another okay? other you out you years? What a were of that you major serve it realm are words, where -- from if verticals question expect mix the higher industrial attack if would

Ray Hatch

of gives and mind it Nelson. where higher question, great I confidence. my can you with a tell a And It’s Yeah. now much me level onboarded, Matt was

have the has past, you issues. the know, it’s some we for the many us some have manufacturing of in that just caused better that vertical talked mentioned industrial about a in I calls, opportunities than business us and such previous fit you As and

entirely years VP of and management, that their experiences was Industrial for Sales. former our And of competitor, Matt’s fact waste focused Manufacturing actually XX on as over matter a and of

three mind inside look of So plus, based to a when segment know is answer I much expect accounts look see mix ability profile. that years I I success. that question, of to out serve in greater our on that your my our to that good current I fit at -- our pipeline

nearly segment, Our ability that didn’t into haven’t sales that -- a to manufacturing quickly. as techniques the maybe maybe our accelerate have yield in

I to better feel and much have ability right market good Nelson. to it sell, we So about to folks, product know a the I our

when those a So I having our much in at see do. out, pipeline it. heavier you of years I focus three type really of clients look

Nelson Obus

somehow is a these other goal, as the multiple company. is simply mix drive it have ESG have didn’t the opportunity are company get realistic the a give you the bragging done industrial high we certainly of had to it and would companies, facilitator more these getting couple that were if in about succeed that eager one us the without that job about a an or to status, whole is bragging conversation when of we of say people idea this they Is years ago? So or approach of that necessary the

Ray Hatch

My observation...

Nelson Obus

shouldn’t say, should I okay. say, validating, bragging, I

Ray Hatch

increasingly publishing, is but credible ESG Yeah. to years have it would four out couple It’s more done, tracking, there. these I companies maybe ago more important the say reporting a job getting and their of or reporting. on Validating, three more they ago. about that just years putting

diversion it Incredible, large goes meeting brand way But accurate a had our I around we they predominantly going almost manufacturer things their that’s divulge mean, answers are to back that’s to and back Nelson, and a they help giving environmental collecting for looking that corporate and just we the scores. recently in with are a appropriately. it that timely a can in manner hearing data obviously, them lot to

ESG that, more and do of top a -- out, job, becoming leave to to scores. how EMI that’s want and I tonnage the given the money, also want But that’s it’s on diverting save equation. part improving that always my that they more And better Nelson, I prominent, of it’s than

Laurie Latham

we seeing Look that. too, are our face at customer

Ray Hatch

Yeah.

Laurie Latham

over our last continued base So and also, that’s current the customer with Nelson, more changed years. we really three opportunities have

opportunities we So too. continued see growth for there

Ray Hatch

Yeah.

Nelson Obus

I actually do we product end we Now bring would I prove something that the would out, know to to the you firm mean, in, or an available what don’t if PR public? would be would call or we it, fashion this this ourselves

Ray Hatch

I that... think we can do

Nelson Obus

within you companies to? if the are exists capability talking that Where

Ray Hatch

are doing already XXX the far as ourselves analytics, for are Fortune and and it to we the tracking We the as data and talking companies. are companies the typically

So that already. their package internal capabilities exist to

So I see don’t now...

Nelson Obus

Okay.

Okay. Yeah.

Ray Hatch

definitely would firms to need firms able deal Smaller outside we be that piece Yes. to with structure larger that. But not. would typically

Nelson Obus

enough. luck there. Good Good

Ray Hatch

you. Thank

Nelson Obus

stuff. high That’s multiple

Ray Hatch

for We are moving it.

We are for going it.

Operator

We Deyoung, from Park will next question Capital. take the Jamie Goudy

Jamie Deyoung

and Hi, Ray Laurie.

Ray Hatch

Hey Jamie.

Jamie Deyoung

Hey. I revenue had in talking remind you on contribution about those What wins types just of of to are large pipeline. annual me customers? that the you others terms on these of you follow want up for are in that restaurant kind pipeline, can and the an just

Ray Hatch

individual in Yeah. each We the Jamie, out this not it’s revenue The typically. these are think, consistent there. to be closest to -- scope, obviously a we of the multi-millions I on mentioned give have in it’s and in one fair to give to millions. is you a put before got, we clients’ is, that position But

Jamie Deyoung

where customer of of we Historically, component And on we that you that’s or revenue more that, been you customers say the terms are calling would are of way are rationalization shrinking? margin have quarters base three in we revenue kind of through less had. the where we than that of Okay. low are terms the in then that

Ray Hatch

ending there’s am Jamie. question, there’s a two I to great clear relationship. Yeah. of that. I really, And make on a activity parts want actual The It’s sure

one where history However we step do second it. the is the first got wait end. is to And Is the you step. year the

tell would you And so, XXX% are we I done. that

type non-contributing targeting of are agreements. We

We XXX% down lowering anticipate are not by think of we QX. it I yet the end

Laurie Latham

comparisons After QX then cleaner... be our will year-over-year

Ray Hatch

Right.

Laurie Latham

of activity. type …that

Ray Hatch

completed. Well, I to has that That return. Jamie, -- activity of good actual give understand you rolls a don’t it clients been targeting off. that it’s color, because aren’t when But the want to have Yeah. important

at this end with with well. As completes the a that matter rollover the QX of of it history much fact, as pretty associated

Jamie Deyoung

Okay.

getting of, it terms in of, cost on cutting, growth kind So very because sense Is visible? made if or that the $XX at $X moving stabilization is million that then this you bottom revenue of million, years profit, company? the we gross for so on the level to getting million, in what am in a I is, But of improvement and here terms the takes up this trying revenue have get the growth… what’s have several you don’t million $X if is -- have EBITDA to better revenue $XXX

Ray Hatch

Yeah.

Jamie Deyoung

… we a lot there faster? get

Ray Hatch

a Absolutely. key process. it’s and multi-step It’s ingredient a

Laurie the is I So the at the to answer are our we had transition your question, the you. at used, way that term is in think, past, we of as look the bottom bulk,

I see effort initiative to I I So more where and far and because every question, new we are, don’t your and every bringing with those revenue. new see new any answer as rationalization as reduction on internally comes that clients number is, about think, it’s clients where

dollars predominantly. profit about have at we We And is dollars new that though of this even profit clients add spoken I that to recognize ways gross increase one the best associated want the to where gross dollars we are fact with point gross the profit it. to understand and

grow in So we And have of got to one the them there. that’s reasons…

Jamie Deyoung

Yeah.

Ray Hatch

made we the of optimal -- like per really done new we where identifying dollar. gross most dollar that we lot and achieve we work a revenue profit segments feel hire a have … and can

look per however, to Our want at. you dollar, pennies revenue

at we say I’d the yeah, bottom. So, are

north move from… to is plan Our

Jamie Deyoung

Okay.

Ray Hatch

metrics. those of both on …

Jamie Deyoung

or significant have in Sure. you And did you made that confidence have sales some waited the you hire must longer. we at could this time,

see we hit recession and industrial a retail this level? customers, real unless that that say impacts of to if safe these growth So start revenue we from some should to

Ray Hatch

Yeah.

and of the, base the am exactly all that’s primary today. should sector this like our makeup customer in just I far lot more talked things have I revenue. revenue think It’s happy of retail be and it what I the Jamie, being to about the as about almost a used we our as diversified a our just you past, driver the than of about, think, one I of what see.

have coming lot our industrial segment. We heavy revenue of from a

a automotive then We space lot -- revenue pretty from coming have aftermarket retail still and have we the as we bit have of a good well.

Laurie Latham

Right.

Ray Hatch

So -- of name one hit it’s really hard it kind to place of those. all to economics for hard it’s

we today where point with regard, in about you we your So better so agree a that feel made. are I lot just that

Jamie Deyoung

appreciate and progress. I congratulations the on Well, Terrific. the update

Ray Hatch

it. Thank very Appreciate Jamie. you much,

Laurie Latham

Thank you.

Operator

disconnect. at for time, does today. no all for further everyone, your And are conference our this questions. you That Thank may participation you now there conclude and

Quest Resource Holding (QRHC) 14 Nov 192019 Q3 Earnings call transcript