Quest Resource Holding Corporation (QRHC) saw its loss widen to $2.40 million, or $0.16 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.65 million, or $0.12 a share. Revenue during the quarter grew 5.94 percent to $46.16 million from $43.57 million in the previous year period. Gross margin for the quarter contracted 29 basis points over the previous year period to 7.79 percent. Operating margin for the quarter stood at negative 5.07 percent as compared to a negative 3.63 percent for the previous year period.
Operating loss for the quarter was $2.34 million, compared with an operating loss of $1.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.27 million compared to negative $0.29 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 0.59 percent for the quarter compared to negative 0.66 percent in the last year period.
"We are pleased that the initiatives we launched this year are showing positive results," said Ray Hatch, president and chief executive officer, who joined Quest in January 2016. “We have seen improvements in revenue and gross profit for the third quarter and year-to-date periods in 2016 compared with the comparable periods in 2015. Over the past three quarters, we have also consistently improved Adjusted EBITDA, and we are on track to reach our goal of achieving positive Adjusted EBITDA and cash flow for each quarter of 2017. We believe the improvements we are implementing now will be accretive to our business and will improve our gross margins, increase efficiency in our operations, and streamline our cost structure."
Working capital increases
Quest Resource Holding Corporation has recorded an increase in the working capital over the last year. It stood at $2.37 million as at Sep. 30, 2016, up 18.38 percent or $0.37 million from $2 million on Sep. 30, 2015. Current ratio was at 1.07 as on Sep. 30, 2016, up from 1.06 on Sep. 30, 2015. Days sales outstanding went down to 64 days for the quarter compared with 65 days for the same period last year.
Debt moves up
Quest Resource Holding Corporation has witnessed an increase in total debt over the last one year. It stood at $3.25 million as on Sep. 30, 2016, up 8.33 percent or $0.25 million from $3 million on Sep. 30, 2015. Quest Resource Holding has witnessed an increase in long-term debt over the last one year. It stood at $3.25 million as on Sep. 30, 2016, up 8.33 percent or $0.25 million from $3 million on Sep. 30, 2015. Total debt was 3.02 percent of total assets as on Sep. 30, 2016, compared with 2.75 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.05 as on Sep. 30, 2016, when compared with the last year. 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
