Revenue during the quarter dropped 7.06 percent to $42.54 million from $45.77 million in the previous year period. Gross margin for the quarter expanded 222 basis points over the previous year period to 9.84 percent. Operating margin for the quarter stood at negative 4.22 percent as compared to a negative 4.78 percent for the previous year period.

Operating loss for the quarter was $1.80 million, compared with an operating loss of $2.19 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $0.10 million compared to negative $0.62 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 0.25 percent for the quarter compared to negative 1.36 percent in the last year period.

"Our first quarter financial performance exceeded our expectations, building on the positive momentum generated at the end of last year. This quarters results are evidence that our focused approach to customer acquisition and procurement can deliver solid improvements in profitability. By using a disciplined approach that highlights our key value propositions, we generated positive contribution margin from both new and existing customers while forgoing less attractive business. As a result, gross profit dollars increased by 20% gross margin improved more than two percentage points and we generated positive Adjusted EBTIDA for the first time in nine quarters," said S. Ray Hatch, president and chief executive officer. “During 2017, we are expecting to gain significant traction from our newly launched services for construction/demolition, as well as from our industrial customers, and are off to a great start. Quest can differentiate itself in these verticals because we believe we have the capability and reputation of being able to handle complex waste streams while providing high service levels required by these markets."