Quest Resource Reports Q1 Loss With Sequential Gains and Lower Interest Burden

Overview

• Quest reported first-quarter revenue of $61.7 million, a GAAP net loss of $2.3 million, and $1.8 million in adjusted EBITDA, with sales down from a year ago but higher than the prior quarter.
• Management said the year-over-year decline stemmed from weaker volumes at certain industrial clients and from last year's sale of a mall-focused business.
• The company began serving a large quick-service restaurant franchisee to grow non-industrial revenue and broaden its customer mix.
• Quest refinanced its revolving credit line with Texas Capital Bank and used it to pay down $2.0 million of higher-rate term debt to reduce interest expense.
• Operating discipline remained a focus with about a 26% cut in SG&A and tighter cash collection, and liquidity stayed narrow with $1.1 million in cash and $63.4 million in net notes payable alongside temporary covenant relief from Monroe Capital.