Quest Resource Holding Corporation · NASDAQ:QRHC
Quest Resource — Investor Presentation (December 2013)
26 slides from Quest Resource's investor presentation, December 2013
Slide 1: Investor Presentation
Investor Presentation December 2013
Slide 2: SEC Safe Harbor
SEC Safe Harbor This material may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the results of Quest Resource Holding Corporation could differ materially from the res
Slide 3: Key Facts
Key Facts Trading Symbol (OTC) QRHC Corporate Headquarters Frisco, TX Stock Price (11/14/13) $2.75 Shares Outstanding (November 1, 2013) 95.815 million Diluted Shares 109.905 million Market Capitalization (at $2.75 per share) $263 million Insider Ownership 86.89% Cash on Hand* $3.6 million Long-term
Slide 4: Management
Management Brian S. Dick has served as President, Chief Executive Officer, and director of our company since July 2013. Mr. Dick took Quest from a startup company in 2007 to a growing, vibrant enterprise with over $130 million in revenue in less than six years. Mr. Dick was a Ernst & Young Entrepren
Slide 5: Quest Resource Holding Corporation
Quest Resource Holding Corporation • Quest provides the full spectrum of the recycling life cycle, providing innovative waste reduction and landfill diversion solutions for recycling and proper disposal of commercial and consumer waste streams • Our comprehensive programs are designed to enable regi
Slide 6: Overview
Overview • We maximize the value of recyclables and lower costs to our customers while reducing their liability • Asset-light business model requires minimal capital investment – positioned to significantly improve margins • We have significant expertise and offer companies a one-stop shop recycling
Slide 7: Company Background
Company Background Quest RMG • 6 employees • Recycle scrap tires with super truck • 1,229 locations • Revenues - $3M 2007 Quest RMG • 12 employees • Add motor oil, oil filters • Add used cooking oil • 3,257 locations managed • Revenues - $27M 2008 Earth911 acquires 50% of Quest RMG Quest RMG • 15 em
Slide 8: Our Products and Services
Our Products and Services OVERVIEW • Comprehensive sustainability, recycling and waste management programs • Maximize value of recyclables and lower costs • Network of pre-approved collection and recycling companies • Take advantage of regional marketplaces INDUSTRIES • One point of contact for all
Slide 9: Key Materials Recycled Annually
Key Materials Recycled Annually 22 million gallons of 815 million pounds of motor oil food waste 15 million pounds of oil 158 million pounds of filters meat & seafood 8.6 million gallons of 15 million scrap tires used cooking oil 9
Slide 10: Quest Operational Snap Shot
Quest Operational Snap Shot • Coverage in all 50 states, Canada and Puerto Rico • Manage over 15,000 customer locations every month • Leverage of 5,000+ fully permitted, audited partners – 30,000 continuously trained professionals – 24,000 trucks – 600 recycling facilities • Recycled over 1.6 billio
Slide 11: IT Infrastructure
IT Infrastructure • Flexible information technology infrastructure allows Quest to provide innovative and effective communication, information and logistic solutions • Scalable IT platform as companies continue to outsource their waste solutions Quest Management Professionals • Client & Service Prov
Slide 12: Earth911, Inc. Overview
Earth911, Inc. Overview Key Offerings: • The consumer lifestyle website Earth911.com focuses on: • Low waste living • Do it Yourself projects • Actionable (non activist) environmental ideas • The largest, most accurate proper disposal directory in the U.S. • 360 searchable material profiles • 1.6 mi
Slide 13: Target Industries
Target Industries Business Motor Scrap Used Meat Food E waste Plastics, Solid Hazardous Sustainability LEED or Segment oil tires Cooking waste Cardboard, Waste Waste Planning Green Oil (UCO) Glass Globe Fleet Dealerships Automotive after market Big box retailer Grocery store Industrial Hospitality O
Slide 14: Industry Overview
Industry Overview Quest’s total initial target market is $2.5 billion. • $55 billion U.S. waste management industry • Waste collection: $34 billion • Transporting & processing waste and recyclables: $6 billion • Waste disposal: $13 billion • Waste-to-energy: $2 billion • "Economics, public opinion a
Slide 15: Market Share and Opportunity
Market Share and Opportunity Quest currently has a 5% market share of its initial target market and a 0.2% market share of the total market opportunity Market Size 2012 Quest Revenue Market ($ in millions) ($ in millions) Share Top 50 Grocery Store Chains $668 S80 12% Top 100 Dealership Groups $25 $
Slide 16: Case Study
Case Study THE PROBLEM 1. A grocery store chain with stores across North America needed to reduce operating costs. Environmental expenses were high, but they could not hire in-house personnel to tackle the issue. 2. Store management desired to be a good corporate citizen and also do right for the en
Slide 17: Case Study – The Impact
Case Study – The Impact Increase Landfill Diversion 17
Slide 18: Revenue Sources
Revenue Sources • Recycling and waste management o Fees for hauling, disposal and related services o Fees for professional and administrative services o Commodity sales and rebates from waste with monetized value o Some contracts have a shared savings component • Sustainability, LEED and Energy Effi
Slide 19: Growth Strategy
Growth Strategy Organic • Continually add new customers • Provide expanded services to our existing customer base • Cross sell opportunities through our customer base • Expand sales force – expand geographically • Increase profitability through adding higher margin customers Acquisitions • Accelerat
Slide 20: Financial Highlights
Financial Highlights 3 months 9 months Consolidated Pro forma (9/30/13) (9/30/13) Revenue $34,850 $98,471 Gross Profit 3,150 9,587 All values in USD thousands GPM 9.0% 9.7% Pro forma condensed consolidated operating results assuming 100% Operating Inc. (Loss) (6,454) (9,348) of Quest’s operations as
Slide 21: Revenue Scenarios
Revenue Scenarios Revenue Scenario Analysis Revenue $150,000 $200,000 $300,000 $500,000 Gross Profit $15,000 $22,800 $39,100 $75,700 GPM 10.0% 11.4% 13.0% 15.1% EBITDAS $4,000 $10,100 $23,700 $55,100 EBITDAS % 2.67% 5.05% 7.90% 11.02% All values in USD thousands *Revenue Scenario Analysis are not fo
Slide 22: Summary
Summary • Highly visible, repeat revenue from Fortune 500 customer base • Experienced management team • Strong brand equity throughout the recycling and environmental industries • Positioned to be the industry leader in our multi-billion dollar industry • Track record of sustained organic growth wit
Slide 23: Appendix
Appendix 23
Slide 24: Quest Resource Holding Corporation Capital Structure
Quest Resource Holding Corporation Capital Structure Common Stock Dilution Table Common Shares As of 9/30/2013 Reserved Common Stock Issued and Outstanding 95,814,565 Options Outstanding: 3,090,282 Convertible Debt: $ 2.00 Convertible Secured Promissory Note - B. Dick $ 11,000,000 5,500,000 $ 2.00 C
Slide 25: July 2013 QRMG Acquisition
July 2013 QRMG Acquisition • On July 16, 2013, we purchased the remaining 50% membership interest of Quest Resource Management Group, LLC. (“QRMG”) from Quest Resource Group LLC (“QRG”) for the following: – 12M shares of QRHC common stock to Brian Dick, owner of QRG and CEO of Quest – 10M shares of
Slide 26: Quest Resource Holding Corporation Contact
Quest Resource Holding Corporation Brian Dick 6175 Main Street, Suite #420 Chief Executive Officer Frisco, Texas 75034 [email protected] 877.321.1811 – Main www.QHRC.com Laurie Latham www.questrmg.com Chief Financial Officer www.earth911.com [email protected] 26
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