Quest Resource Holding (QRHC) 14 Nov 232023 Q3 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Quest Resource Holding Corp.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions] After the presentation, there will be an opportunity to ask questions. like Relations the Representative. now Dave over would Investor Mossberg, Instructions]I to conference turn to [Operator Please ahead. go

Thank you, [ Dalene ]. This is Dave Mossberg.

cutting is line out bit. little Your a

like and differ could Exchange Quest's statements factors, cautioned risks to detail in Quest's significant the materially So, like not thank contain Commission.You a greater from of other statements uncertainties. you, which Maybe for intended result estimate, get Actual call joining if I'm may or we forward-looking ahead Securities and discussed and of predictions, with various anticipate, the everyone everyone, expectations, in regarding discussed assumptions statements. and words as events results are involve events are can't filings those in statements are Use disclaim on update statements let SEC forward-looking as place law. by future current other begin, that statements to call.Before are on unless the projections, I'd conference statements based you forward-looking to project, performance presented filings Well, and me uncertainties. Quest and risks intend, expressions to Quest. such to forward-looking are consult undue and of know and made remind going do future those believe so Such started. expect, date us. forward-looking hear beliefs the estimates, Quest's for go to to of any estimates reliance duty you'll additional and we our and or similar required identify this such

market and Quest's publications, information firms as The data and resources. may well and are conditions and and our information developments. and other research government reports statistical this based views in we industry call, market addition, industry for and independent on about In as publications estimates, Quest's observations data other include

is sources or and by the presentation management Although, the Quest useful of to results to turn investors' the that prospects be the of financial discussed understanding financial otherwise and information of call. the Executive it be and discussed the Unless this all today's on will company's should information.Certain future core will included the non-GAAP the independently strategic measures reliability company's call has make during Management evaluate Ray operations accurate, verified to not reconciliation Quest over any measures used of in in are a be current it believes these release.With performance. non-GAAP that assessment these measures non-GAAP other the future. President decisions, the basis. earnings assumed data of call non-GAAP and sources Hatch, are measures we forecast stated, These of non-GAAP believes now financial ongoing for this and is I'll the said, reliable Full are are Chief caution GAAP accuracy to that Officer. financials

anticipated growth of number and our in you, lies we've Thank that want also significant opportunities largest Quest. the the of support excited months, noticeable our faster to ramp-up Quest recent have to foundation new we've a in growth in investing one year, of in outlook In earnings. We've interest of growth. uptick Dave, our made what for pipeline seen drive I engine customers.We building positive several your years. for at in ahead and next about strides I how in and by off to growth. robust am technology progress the for made a emphasizing thanks, laying everyone, the a efficiencies seen lot for we've and than This size start

prior during mostly to RWS. our $XXX,XXX completed third systems, the RWS RWS third We in expectations adjustments, which of of integration This gross issues approximately systems the the to end isolated legacy cost from XXXX. In below dollars the resulted is being related sales the addition, at primary uncovered cause we profit quarter. activity of of the quarter, to related

While approximately $X.X cost addition, in of in systems beginning SG&A it savings bringing our RWS integration we're platform. enhancements million has realize quarter action we've several to been the fourth annualized and is to technology this frustrating, complete, year.In online taken

than now improve We to business. our strength for investments more In discuss the to and Johnston expect the of resulting our CFO, I line be the these client bottom enhancements summary, to underlying to I'm strategies. back overview. on our realizing the soon continuously forward efficiency, progress improve platform.I'll over am and call our turn in scalability from Brett value foundation proposition. with improvements excited the looking financial ever our I'll

Thanks, Ray, in revenue. quick to It sequential quarterly price note A volume and decrease good fluctuations related primarily and about the fluctuations. was normal afternoon, commodity everyone.

calls, fluctuations discussed As price dollars. on material previous not profit historically had gross effects commodity have on

produced profit gross on agreements commodity customer to Our tied that consistent dollars are based volumes fluctuations. price not

as have process the anticipate affected approximately were headcount RWS internally $X.X quarter That adjustment company Sequential similarly.As during the waste year to in this in at annualized an to that dollars primarily disposal have of client has comparisons another by beginning that decrease sequential million approximately We RWS new of decreased profit key to from also the sequential is quarter. third ramping we decided profit we second cut costs manages of the able this financial reflected onto The reason client $X.X a $XXX,XXX fourth part customer. been efficiencies a savings by gross our manage platform, story, fully To contribution and $XX.X quickly of acquired integrating lesser quarter and from from year. reduce $XXX,XXX sequential increase were billing comparisons underperformance client the this decrease the of quarter, to extent, RWS and an use acquired been cost new from million, RWS. affected million operating versus quarter the you gained third measure and of a by RWS. of the RWS company. were those the a third performance.During dollars X% metric For gross last a

of small strong client's relationship percentage did represents it and quarter While client. a billings, very this third affect this with maintain a total it we results,

this excluding quarter, third grew expect fourth.Looking expect and contribution in performance the be and to from fourth increase quarter in line to fact, quarter. during in to continues our the third adjustment, this profit the second with dollars the quarter In gross ramp we from the performance client sequentially to our more

quarter quarter offset the We ramp expect and in our typical seasonality. growth will will mostly fourth

during gains compared during to our from addition, on in the with period line the SG&A $X.X last third $X.X fourth benefit In in year to quarter.Moving which were the the same quarter cost million we at will efficiency overall million RWS beginning and expectations. cutting and expenses,

efficiencies growth to further expect in efficiencies Looking forward, integration and lower savings initiatives have to our expect improve to increase plan our to We these bring made from and we investments costs our value that reinvest the ability we into continue platform. we gain to clients.

fourth reductions will and expenses in $X.X of to efficiencies. investments to ongoing the a in will we we at the improvements, lower about technology be forward, quarter.Going result, begin expect RWS both operating improve which our As SG&A process benefits costs million cost and and expect see steady

pace improving increase, dollars slower profit as As to leverage deliver expenses in a we operating grow we expect to at quarters come. gross the operating

and During was a flow to the sheet. prior which was year.Moving review relatively flat the on with third quarter, million, the depreciation and $X.X cash balance of amortization

cash good cash have minimizing to interest liquidity. of liquidity-wise our We and management, by our we reduce enhance less are in high shape In actively looking carrying rate and optimizing to continue this on environment, line expense borrowings the been interest credit.

at beginning end the have of compares we cash million the $X.X year. our $XXX,XXX operating $XX this $XX.X Our line. was This million quarter drawn at of on million balance and borrowing to the

principal end fourth our to expense.Year-to-date, year-to-date, the flow. marked overall the line with notes which prepayments. cash cash our our $X.X third included $XX this asset balance a on $X of debt our reduction evaluate the borrowing voluntary to the million and continue lower quarter year. overall and Ray. we back To reduction $XX.X term million reflects expense interest borrowings, to million payable annualized in and will $XX.X versus reduction quarter, summarize, by P&C. the the in than ways expect represents at quarter an we the had reduce million million beginning straight Through loan turn flow in and base payments operating in million of interest long-term $X to leverage The positive we efforts call At on normal of I'll of more of management basis.At produced cash this a operating time, our We reduce

Brett. you, Thank

progress tremendous the ever cleanup for and over the the adjustments next outlook I want on our and are the about the challenging, quarterly made been comparisons our years. continued and confident have frustrating have as conviction emphasize outlook several overall last growth the double-digit We've as for to several company. our made trajectory RWS While years for during

We are all business realize to on we've of efficiencies Through a these actions our to efforts acquired other operations. now lower now integration and begin able platform. and running greater been common can headcount our from

earlier, approximately quarter. annualized in As recognize from savings I we'll fourth said million RWS $X.X the in

the operating In uncertainty. drive and to efficiencies concerns macro about comment economic to me costs make lower addition, over and operating overall the continue brief inflation across a and we expect environment platform.Let

as fluctuation waste end markets. price waste The well. generate in top see across business our pressures generally During to the bottom the continued materials our third we the cost of quarter, resistant to the recessions during stable to midcycle continue activity and clients manage and and the cycle. is of We

of during economic long-term that clients weakness.Through with propositions, compelling reviewed nature. X our endure the our add, have relationships average differentiated XX that which to request was relationships over relationships are in the client longevity also value illustrate strive point, engagement of we have not To and customers our periods strategic recently years. noticed create We top that value strong transactional and have and we

clients. and recently also agreement of with new and largest expansion extension X-year longest-standing our one a signed We

us onboarding the approved While new the being than a roll than those business year.With in economic affecting disposal a strong, several over our we which past pace have than been certain area expected longer programs has slower corporate cases, clients' new has taken to business, core expected is where by of is ramp uncertainty has our been on driven adding liked this would waste has of our the clients of been at with level and the by portion level. out local is slower managed we and one

to winning also our just and We not longer are other opportunities get us telling moving have taking in new simply They're push several anticipated. seeing not quickly We and the expected these clients we but good growth. I cases, in as to strongly across we discussion on believe we're programs, prospects that about as Anecdotally, board the that some we're still in business clients.Moving they don't note implementations. of is existing organic signed. a us. this priorities large very would and from are front growth case back feel out. and the growth have falling prospects about have I also

have in confidence to gross sources growth our profit the us gains multiple next double-digit several give in that ability over We of post years.

We XX will to to ramping, next XX from provide fully in recent at expect year. cases, growth And which onboarding take the clients. wins. of least activities of In for still growth are process clients that ramp come months several some are new to there embedded it the can

our are with accelerating slower out that a at during this pace we and all In proposition last now the have quarter, began their expected. to a we onboarding value a September the had locations services of programs.As validated client than locations. like we onboarding we asking is short than has new client of would has time, some small While of we our others been deployment of clients, their roll portion XXX originally to faster period discussed

line being we asked we're services planned. broader than addition, a previously had In of to handle

client vertical time clients closer With of the we this add market will, for we required expect of to locations. the potential had this with overlap new peers this rollout, with X-figure to reiterate for XX and pursuing in capabilities are streams the waste us. the new to a other automotive we us waste end services some of the streams, for an introduce in our we revenue XX-month should in is frame.I a to but service few large a acceleration market could a the new turn, into end give provide our a space. have client There XX- shorter turn that and new this rapidly to The during this contributor end are existing also clients.Regarding or business, capabilities growing end in scale base we new win, will quarter,

to maturity. client revenue X-figures this generate at expect We

the the existing during third and clients had retail, with significant wins In in automotive quarter, restaurant we markets. end addition,

from last for expand Our investments also consistently there's for driver opportunities existing multiple strategy feel our and X for which to sales clients a base growth. land ample years new from solid and years growth growth continued client has provide delivered we our for force, in our the come.We're should making existing

On proven new adding spoke about sales a the we last call, leader.

in In we addition, allow and sales such less spend generation. proposals functions folks more our adding lead are on administrative time closing that to as investments operations time sales will on more and

the our our and to investments of staff and footprint should help in look simplifying staff for around reduces we're needs pricing better create sales days cycle forward. to proposals sales addition, optimal looking a vendors using sourcing agreements more allows to to new new our In turn tool cycle shorten our These much the by the proposals This us quickly.Our grow into and contracts find going time across minutes. our yield tool to from entire in sourcing data. sales shorten qualification solution the tool pipeline, converting

our Another pipeline will opportunities. of growing come source of from growth

the seen clients we pipeline. the value, been are these of factors we'll add can biggest I'm to in approval a in stages I The have to also optimizing to and to potential deals final clients value that demonstrated opportunities release, by several attest we and I As in that we've size much clients. new have new dollar business the reiterate able open clients having if I close, quarters. been proposition.As in we in opportunities the are cost it's said strong large very profit single improvement. we've may our hesitate confident and number the discussion have several but easier large successful have uptick the of growth to reason is referenceable to say want or There adding to estimate months, on the likely to gross coming related opportunity we in recent the a the the driving our when that noticeable be several drive progressed hand. and can in with our side

growth with Over we've than the X acquisitions of X/X years, coming new of from business, last about more and doubled size the clients. that our

our the want vendor in I relations onto ability optimize making through the cost move management to revenue we're procurement of our talk bring about we As drives I services outlook, platform, we've continued technology. that and proven a little to our in to bit dollars.Before growth gross our investment profit

our improvements up to intend we've to and we key The able and due our size improvements improve platform, a We technology has a scale. to years, ahead maintain year. first introduce cost and the we've next wins scale enhancement provide. technology we'll during platform so invoices be in of technology half the to for client continuously new the enterprise. efficiency factor further value, and These recent stepped client a that ability process stay lower technology our scalability. of provide to investments the major of value us Over been relationships In enable will we to us platform we the automate can helped to deciding much larger years, several built and competitive enduring incremental built

with profitable and automate and extremely For achieve cost growth. example, the ability to outlook, I'm the this of and to margin improvements.Regarding we've invoices made, strength processing allow our savings significant progress the generate on us based further the will of underlying business our encouraged vendor

profit end EBITDA. dollars We and year improvement in the with sequential both expect gross strong to

We the expect a generator strong year flow be XXXX. in cash to

sources We have multiple growth. organic of

continue invest continue drive will and bar regulation landfills the operating We to sustainability, for lower to improve recycling capabilities. and of adoption increasing efficiencies increasing in our Pressure of to services. to cost

how positive will for for several on momentum a that you now up of forward progress.We'd continue space to keeping listeners we updated the next can like years. opportunity operator with to instructions I our provide have Operator? We tremendous and questions. queue optimistic we're on very look over the white

question will We begin the with Craig-Hallum. Instructions] first [Operator Aaron from Our is question-and-answer session. Spychalla now

touched in or Maybe size deals first number pretty what it's kind but end in of behind bit, little uptake and the it broad-based, it on for just me, like and you you with about particular? the kind in a areas sounds but can talk any of markets the of some of that pipeline, just drivers

end several and some Thanks for opportunities your well. opportunity question. be in markets, Industrial Actually, real there us are are continues retail Aaron. to there for as a

has mentioned I lot come But referenceable bit. a work prospecting the in fruition. in had clients think to of us we've going and a remarks, on helped also to I quite starting

the out, focus starting lot leadership great of about So, our is the on and top side that. the excited new has a prospects on putting sales prove that team to we're

and And starting side on food us then with conversations on early the numerous implement forward? there goals business stand update the contributing see seeing of reduction you maybe start states of growth penalties can going just kind just kind an XXXX, to in and where this and customers on food give you how to Proganics, waste

landfills. Food waste target be Yes, it area biggest sure. probably of opportunity continues the And be absolutely to focus continues right, an and to for you're Aaron, diversion or from

referencing, just lot they as are look prospects be some that great the to today really -- that with many Aaron. based those customers past to grocers starting in have We to honest And that diverse than on and we a we're in have in space you more do did talking cases, opportunities to some well. tremendous were you, at pressures

more the process pressures. So, by sales speeds we're and encouraged I that. up encourage and more It regulation and

from with is Roth Capital. Gerry Sweeney question Next

the issues, to at then, the different of at X $XXX,XXX charge mitigation I strategies systems, maybe again? the that concern kind this? a Or look the look cetera, for doesn't any do Going RWS is there but sure we happen to processes, and make around have how think, et ramp-up, cause, root back at to take you looking about this

done that I'll identify. that question. specific were take difficult to X call Brett. They live Starting systems. to is This our lot visibility up I on RWS, with still we issues in a We've really them were to isolated work environment, few the wouldn't our these broad-based. These before new we we had RWS popped there. gaps into but went brought within current a as

It made period I feel to large with don't processes We're in certainly look managed process. any, things then question the just in customer, very have being we that customer. as sometimes. to accounting so it's we missed much longer we quickly see the any our and teams don't systems but and confident not an and that recent on numbers want our we and of we've And a teams visibility don't error on And at of was place, true-up want on it. not got we a environment, the better again, we happen gone working consistency fairly live.And as these of over through our it these related, that a and types a really your it's more small overall, percentage time -- we've a other was really diminish was broader-based It's things. ramping -- operational was had it concerns

from in time -- over had Or the in the it? of was quarter? quarters third over the RWS couple a last as lingering issue you Was that the integrated issue was

was a issue. Sorry, it lingering

As related prior to stated, was activities most of to it XXXX. we

even in non-cash. most sitting of, of kind and there that So was

it you slower. the curious some you a accounts? sales moving And just cycle referenceable maybe than faster the accounts I'm are lot in than some And industries if going have industry and seems in any industry, ramp where anticipated then have of of faster referenceable taking less is one particular, are sort that is like an if sales up -- there's you maybe cycle, but areas on that longer,

It's definitely by be customers no question. a speed have Referenceable like almost Gerry. prospects. helps don't that diligence the process, the performed There's due up to

specific. I the on depends there's is where how think mean, at in I delay cycle don't their it our they industry-specific an or improvement and think I end So, decision do market prospect it.

them than of complex are others. more Some

a goes sign-off departments. ridiculously frankly, of through Some have that process long, them numerous

much what Some more on it's of make they how see But company them I guess as I'm specific, than quickly that. I saying don't quicker decisions. specific a more in culture are that is market

X part that companies, opportunities of also services In are is over sometimes these large it? year also the every looking companies of up come some Is way for they cycle, very when outsourcing just manage a -- signing these the and way the of it? or course at that

what question very take your they you're longer. Is companies, If I couldn't hear that saying? you Gerry, was larger clearly.

yes. Yes, it's actually, yes.

the more, to locations, company, Yes, back while that The bureaucracy, guess, the more the typically, waste Okay. it goes I right? complexity, the well streams, larger exists. more

the larger a take companies is that there the companies on pattern So, of based size No question. longer.

internalized, and mean, I'll up? but understandable. right, was one question, back competition But in went fringes there I the completely was that locking Final competition queue. if on or Obviously, seeing that curious that popping and then you just you're on even out landscape. any client Any jump away, mentioned

that acquired was reiterating us. by it strictly somebody lost quite you of so we should about I a talked I they it, they about out do it we too. guess, just appreciate took have talk have you client were get mention, companies else And that, with Gerry. And buying our situations are didn't mentioned, and that bit, to as clients we and We where I internally, growth that thing other

economic with you happens changing. haven't industry, that It's ways. really competitive changes. we lot to don't a points anything seen I both -- type I see a conditions aggressiveness, haven't price that to down, of really watching been of know. it very I've But going So, as as our And seen competitively, effect. thing

a pretty much it's seen think same. the haven't I of changes. I stayed lot

The next question Wainwright. is H.C. with from Joshi Sameer

on growth $X Or for lost a revenue can any year-over-year reason the some you revenue? played light million Is that this quarter. less loss seems here. just it It that RWS, seems shed on also that? there First than into

Yes. I'll bit take a of that. little

So, run got commodities well. business we certainly -- we've as that that through the

overall So, I'd reductions related commodity say a customer. about We talk just to values. did portion of in the that lost is certainly

we the throughout then probably in a quarter year some well. last the as portion related rest that got So, the made And of of to as adjustments is that were well.

my answered, on growth that? Some been mentioned other -- checking call, dollars questions in you adjusted track we for profit the but think just XXXX. of EBITDA have still for on on in gross double-digit Are I and last

mean really future think continue if I were Yes. forward you in The Brett mean strong laying strong I quarters. but take looking forward, out outlook did the I out, there, exceptions definitely that we're of going that. job a good to going is

any And million $X the one. Was around Monroe? in I to was made principal the prepaid? there last then last think further payments quarter

We not subsequent the one we subsequent. did in No, QX this did talk our end have another made quarter. call make to one that at earnings we

QX. quarter, the a million one we talked within being $X a transaction about that to we payment as have did of subsequent but So,

from next The Pinnacle is Kitt with question Gregg Fund.

I Brett's correct. commentary. wanted -- to if about ask I what It sounds Brett said a got question

Brett profit expect fourth something you similar gross in sequential I and think to quarter that the expect QX. said increase

the think QX QX $XX.X was you million, And to right $XX.X way around statement that million? interpret profit gross is that so is

that In of came some customer. QX talked of for talked that some opportunities year, overall some growth we the last or as of kind our in, well. seasonality just performance can business, really got about coming that's We we've cyclicality baseline think and in vary by customer Gregg. about I some

QX. continued being you business, So, more how reflective on adjustments about, And in -- can the look there's QX closely it there really But don't with line get of full with impact at we we as QX. we performance. a in certainly have just us to much of that's terms the the basically of gets going sequential visibility strength talked

wanted how sure how in much gross make I adjustment the understood that the much the I And profit -- to was quarter. to of

was impact? $XXX,XXX of the Was a profit gross reduction And was think was impact the with highlighted impact $XXX,XXX you a I more? was Or customer? that one to gross then or gross RWS it profit it profit? that $XXX,XXX fast-growing also

that correct. It's to yes, took that's profit in -- No, gross that's we $XXX,XXX adjustment QX. a about

And of gross $XX.X little do you $XXX,XXX how me. so kind close of to quarter, that then this looks if profit million growth getting profit the year a the around to fourth year, back for for add double-digit less though and gross is maybe

-- getting about confidence double-digit but attain areas it which going hear just -- it. forward in you do so I about some and lot you And talking can your growth talked a different in of you of

which would do XX%? Or of you it's you think if million where touched can is to like to optimization existing much $X how us much And coming already do you in then go get from of that on? understand think so I that already hand? hand, coming gross help that wins profit appreciate you are like And of how there much is get is in kind from your a customers go get of you need it to how

say, put that quantify, so that clients, always -- portion go us. the a to I your lowering the cost, lowering Gregg, fantastic yes, a first a you that's which finger go-get say, I still would past. stuff all, obviously, But a lot a that's cost to I a big, that's increasing big to and talked than say, ongoing in tough optimization gross half the hard But I is factor is with is ahead more go would of in than about stronger it of looking by is on. existing team the has and that there, go optimization been because get think existing one there's there's thing been time profit has leveraging that an job Dave's to done cost and profit get. opportunity.The would and client for contributor in long a and

on high, So, It's got and gross we've clients. existing draw things confidence is existing increase but lot out of already mapped a big mapped start with those And pretty that the level Gregg. calendared that head the out clients, a in already profit. got we've

So, we feel good that. about

you start the line year, I that million. be in that on and how RWS quarter. with SG&A heard about think How QX, of a how some in that much $X.X fall cost prior versus QX million quarter, like is you cost into savings can $XXX,XXX $X.X see seeing RWS, $X.X of much around But quarters? savings, from which the it and I a do fourth you SG&A should of also commentary, million kind in -- you'll you And talked think much future the your say that's the in

should get it X. be in place. and all that. amount will of in most a of are of the But pickup QX. that couple be coming a be little in bit SG&A other overall, after it We've to we realized in lines got of of expect bit a offsetting full Most quarter but Yes. We'll QX, additional

$X.X And so million like annualized $XXX,XXX.

into early, So, plan couple going you've September, quarter. in September of time period, first get fourth the you're very or most savings like that you the fair? to in place like Is think put it this of X September of cost weeks if

aspect It kind it. a Yes. rolling to of had

most the -- So, one-time thing. end a this certainly, had wasn't already QX But we've the savings of realized. of by the yes,

but already do. that to want the This done note is of the So, isn't it's already to we're number, important annualized and giving this the is execution initiative a completed.

there start initial of locations, you? is going X. that like size the that a ramping opportunity then just that the And number Is sounded was I think great. the new customer total September going Or gave XXX That said you on locations? was they to of

different number of that's The No, -- opportunity locations is a locations. are the sizes. lot initial of size

It's Some are uniform. not smaller, large. are some

the of the waste generated important So, is the amount of it. less and number locations than

was was There's as it streams pretty accelerated Gregg. the to initially. confident time, waste were opposed feel frankly. in thought it's aspect, it phasing thinking we But of one part over longer going with And period here I'm we a waste still of to additional and convinced we that streams move also of and we're adding need really adding they out as it have locations. we're them with we new starts go it that and what accelerate from locations we be, proud to forward team the phase-in So, and that's

is pursuing. stages think competitors, exact you that of maybe closing opportunity the of where something that a I but of I like quantified you the is pipeline those there you're in in are? which like it to far don't And way they remember Ray with and way in some it, a think along way those or think some about to the competitors you any other are there bucket sounds Are the think process described is those at also the how something, about

that asking, Gregg? what those mean we other prospects You like are from you're Is competitors? getting

Yes. Yes.

I if Sorry it said poorly.

customers. their detail that that win as think in specific reticent going because a to about try that customer market, I are other you have there new to give of same that have been competitors this you to lot company, that you're

later customers And new later think pipeline? been Hopefully, further being my chunky where any prepared Are they pipeline. those that so has your Sorry, about and you mystery you that competitive the in this in some Or of I players would that any the of takeaway rambled. that pipeline? of in you're customers. to your characterize how are clear. in stage the those I they was in customer? of Are pursuing Are those kind talked remarks,

I mention competitive understand I lot to detail. to of think much you a And there's that But be I reticent to your that can understand that question, continue reasons opportunities relative that. Gregg. for speak other to we anything by we specific competitors, But I'm their aren't that clients think created to taking care as well are going probably of as can. frankly, not

you that. think I understand

debt. love would of a sorry my that, on to you on opportunities are you your to well. exploring guys explored, debt? reducing maybe your love to the and managing believe And by have Brett's you've about done last that -- think this job reducing your And you hear interest I by And I on Yes. I one, expense like about cash you can't the sounded be off that hear I call, think, remarks your quarterly floor refinancing is, refinance said plans. you and your could the but focused hop cede I'll would last talked I year how principal and wrong. I good

excited slow I'll taking talk the got to call. longer we've the over because want as that it during is that sure exciting to and to whatever deliberate of we've QX continue really about the opportunities make lot be about Brett We having we take refinancing. in a a help this support We're have conversations we to and Gregg, opportunities growth that were in approach talked is that. up continue conversations we that term. And again. have we did for Yes, set we to growth place really

have we a time. we certainly because options. not bit more are taking So, It's really good don't little

we've potential We in the take partners thing just right excited to out there, bit diligent about little time but that going in we to making place. continue get sure a more really be got

Greg Melas MKH Next (sic) from Management. with George ] question [ is

[Technical sort then a more question. and of maybe detailed Difficulty]

[ customers. doubling that of the about question, from Ray, growth and ] over years talked you about last On X coming existing the X/X

growing existing some to and I high fall how seems a about [ where XX% suggests year. numbers that's growth. But base of that ] around little me So, simple math you're of in your with -- if very did XX% I that per organic the sort roughly terms wonder by it

that thinking? sounds clients, a our did Is from Is going that question your I existing is, you're your you're great. that I'm came is not doubling I George? think connection the But asking, the is essence fact was high. the in unfortunately, you what that and XX% and answer around heard to question like of I and math the business little X/X believe it George, what

And that going Yes. is the goal forward?

And necessarily. this profit Yes. has does not team seem, revenue dollars, gross it's growth doing. that's been but in what It actually

waste the And And services the has about to talked so the and commodities. from been more we and the initiatives optimize that. create about continuing doing leverage value team procurement

that doing they've for been So, many years.

So yes, to these and thankful relationships George, great with those that. really are those able we're do to clients and numbers we're long-term accurate have

to that improvements that gross is with in terms how of as you're organic as of platform forward think you it? of you what Are the So, growth? 'XX, making, profit go in -- XX%? still dollars you about 'XX do targeting look the Or and you sort you expect in terms

overall plus, to elements the things expect The XX%-plus. contribution do growth is of a type consistent XX% for us, of in from bit existing it's types of probably of automation SG&A clients. it's improvement But and going of impact the -- in to it to a going things. going We're the because we number those and but targeting pretty platform a quite

leverage with on change costs. existing it's X contribution pieces I'll is But two, well, come Like shorter of indicator, growth are to no there period mentioned better a of question the gross tool So of too. over lot look we going several is in would be internally better your years. and use of platform time. for the profit I gross had our from are reason a the procurement not some but beneficial pricing to have that the -- a of profit pattern, we to expect but much operating I answers.One, and in guys answer necessarily to And from really a guess to as clients identify scalability really going technology it there lot type ways, able that and locations

way for Do 'XX. sort or Brett. in consistent been are I you working target then capital them what days terms of you one quite It's And bit working a there capital Brett, expect roughly your of do days going they've capital days, working the question And guess, 'XX. in pretty forward? dollars? calculate and I a maybe have XX than better

Yes.

continue AR quarter. up are the bit continue they billing on large issues we trying billings one ]. that opportunity. We a well. we had the well And some tend into a manage happened as to chance real last the later working end quarter delayed the Again, hold little on working to capital is the related little look and RWS as because their we projects coming had quarter. of they that's on are nothing bit as a come to late, We [ with was so of compared The who especially tough timing as collect transitioned to had some an one. a and then year, we in haven't there. cautionary piece had concerning those our It's under to new in the payments yes, to system. for hardly It's customers But we opportunities. very thing focus

get better it's but and to a well. opportunities focus So certainly there we as -- some think there's

Hatch to This turn closing Ray any I'd concludes the remarks. back session. over for question-and-answer to like the conference

I reiterate guys. very to Thank as want came very, want I today When headed. to you, operator. I so about this look outlook. mean I I our felt just confident. positive better I've to I make opportunity in that want across sure take to think there's where many at ever our don't you and things intended look business we're forefront. the forward, positive I

greater these key to good a that very types encouraged should never things. on enhancements client our Quest it work. client re-signings, the that and of have if relationships, of And them of very, I'm ability spent and you we've which are the what client don't grow you the working those platform, job doing number and about gross time in get shareholders. we and of ramping do. to profit, deliver our be in lot They going great ongoing effort and move shareholders and our to to to enhancements And I into rest Quest. team revenue a really retention, the you're They're appreciative to to job. the to QX really going guys I'm of to started interest of forward. those happen appreciative up want yield forget want we a shows to to this, EBITDA grow for going really again and They've for a value thank thank that. So, the efforts very not from a contract we're to excited by doing as I and I'm initiatives they're and client all support that.We guys. I'm want your

that's So where kind of excited you are. Again, too. I are about it. hope we

come, in to to keeping the and forward thanks to Looking you again. up date quarters

call. This concludes today's conference

day. a Thank pleasant your participating have for you You and lines. may disconnect