Quest Resource reports stable profitability in Q1 2020

Texas-based Quest Resource Holding Corp. has reported a 4.9 percent decrease in revenue but an unchanged gross profits figure for the first quarter of 2020. The provider of corporate waste and recycling services says, “Late in the first quarter, we began to feel the effects of COVID-19.”

Quest says its net loss of two cents per share in the quarter ending March 31, 2020, compares with a net loss of one cent per share during the first quarter of 2019.

“First quarter’s revenue comparison was impacted by low levels of production in a commodity waste stream at one of our largest industrial customers,” comments S. Ray Hatch, president and CEO of Quest. “This had negligible impact on gross profit. Late in the first quarter, we also began to feel the effects of COVID-19.”

Adds Hatch, ”Thankfully, we maintain strong ongoing relationships with our customers, the bulk of which are considered essential businesses who continue to operate. While it is impossible to predict how long the weakened demand will continue, we believe our asset-light business model, our strong balance sheet, and the essential nature of our services positions us well to weather this challenging environment.”

Hatch and Quest Resource Chief Operating Officer Dave Sweitzer are both former executives at Oakleaf Waste Management, a provider of waste and recycling management services that was acquired by Houston-based Waste Management Inc. in 2011.

Quest Resource describes itself as a national provider of waste and recycling services to customers who typically are larger, multi-location businesses.