Quest Resource Holding Corporation (NASDAQ:QRHC) Q3 2023 Earnings Call Transcript

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And two, the technology platform is going to be really beneficial in a lot of ways, but a lot of it is going to come from scalability and leverage internally on our operating costs.

George Melas: Okay, great. And then maybe one question for Brett. Brett, your working capital days, I guess, the way I calculate them were sort of roughly 15 days and they have been pretty consistent there in ’23. It’s quite a bit better than ’22. And what do you expect going forward? Do you have a target in terms of working capital days or working capital dollars?

Brett Johnston: Yes. We continue to focus on that as an opportunity. [ARR] was up a little bit in the quarter compared to last quarter, we had some timing issues and related to we had some projects come on late. So we haven’t had a chance to collect those because they had happened later in the quarter, and then a little bit of delayed billings on the RWS piece as we transitioned the billing onto our new system. Again, nothing real concerning there, but we continue to look for opportunities. It’s tough on a target. The one thing that’s cautionary is we are working with very large customers who are trying to manage their working capital as well. And especially at the — coming into the end of the year, they tend to hold payments as well. So — but it’s certainly a focus and we think there’s some opportunities to get better there as well.

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

Ray Hatch: Thank you, operator. I just want to take this opportunity, guys. I want to reiterate our positive outlook. I want to make sure that I came across as I intended that very, very confident. When you look at our business today and look forward, I don’t think I’ve ever felt better about where we’re headed. I mean, there’s so many positive things on in the forefront. So I’m very, very encouraged by that. I want to thank you again for all your interest in Quest. I’m really appreciative of our shareholders, and the support that we get from you guys. And I want to thank the rest of the Quest team. I never want to forget this. For the ongoing efforts to deliver value to the client and to the shareholders. They put in a lot of time and effort and work, and it shows in those client retention, client relationships, client contract resigning, those types of things.

They don’t happen if you’re not doing a good job. And these guys are doing a great job. I’m very appreciative of that. We have a number of key initiatives that we’re working on, and we’ve really started ramping them up as we move into Q4. And I’m really excited about what they’re going to do. They’re going to be enhancements to our platform, enhancements to our ability to grow revenue and to grow gross profit, which should yield a greater EBITDA going forward. So that’s kind of where we are. Again, excited about it. I hope you are too. Looking forward to keeping you up to date in the quarters to come. And thanks again.

Operator: This concludes today’s conference call. You may disconnect your line. Thank you for participating and have a pleasant day.

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