Quest Resource Holding Corporation (QRHC) saw its loss narrow to $1.35 million, or $0.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.77 million, or $0.20 a share. Revenue during the quarter went up marginally by 1.82 percent to $45.04 million from $44.23 million in the previous year period. Gross margin for the quarter expanded 42 basis points over the previous year period to 8.16 percent. Operating margin for the quarter stood at negative 2.85 percent as compared to a negative 6.14 percent for the previous year period.
Operating loss for the quarter was $1.28 million, compared with an operating loss of $2.71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.23 million compared with $0.70 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.52 percent for the quarter compared to 1.58 percent in the last year period.
"We demonstrated incremental improvement in revenue and reduced losses in the fourth quarter and expect to build on that momentum in 2017. Our refocused and disciplined go-to-market strategy is highlighting our value-add and generating wins from both new and existing customers, better leveraging our national scale and broad scope of services. In turn, our focused approach to customer acquisition should allow us to develop long-term recurring business," said S. Ray Hatch, president and chief executive officer. "Clearly, 2016 was a year of significant change. We believe the strategic initiatives we put in place are reinforcing the foundation for profitable growth and improved returns. Our strategy of expanding existing markets, as well as entering into new industry verticals, is intended to accelerate our long-term growth rate and diversify our revenue streams. In addition, our efforts to improve our business processes and our investments in technology are making it easier to onboard customers and subcontractors, as well as improving our efficiencies to enable us to better serve our customers and more rapidly and profitably scale our business.”
Working capital increases sharply
Quest Resource Holding Corporation has recorded an increase in the working capital over the last year. It stood at $3.11 million as at Dec. 31, 2016, up 51.27 percent or $1.06 million from $2.06 million on Dec. 31, 2015. Current ratio was at 1.09 as on Dec. 31, 2016, up from 1.06 on Dec. 31, 2015.
Debt moves up
Quest Resource Holding Corporation has witnessed an increase in total debt over the last one year. It stood at $4.75 million as on Dec. 31, 2016, up 18.75 percent or $0.75 million from $4 million on Dec. 31, 2015. Quest Resource Holding has witnessed an increase in long-term debt over the last one year. It stood at $4.75 million as on Dec. 31, 2016, up 18.75 percent or $0.75 million from $4 million on Dec. 31, 2015. Total debt was 4.40 percent of total assets as on Dec. 31, 2016, compared with 3.67 percent on Dec. 31, 2015. Debt to equity ratio was at 0.07 as on Dec. 31, 2016, up from 0.06 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
