Quest Resource modifies credit agreements, waives Q1 covenants

Published 13/05/2025, 12:04
Quest Resource modifies credit agreements, waives Q1 covenants

Quest Resource Holding Corporation (NASDAQ:QRHC) and its domestic subsidiaries have amended their credit agreements with Monroe Capital (NASDAQ:MRCC) Management Advisors, LLC and PNC Bank, National Association. The amendments, effective May 12, 2025, include the waiver of financial covenant testing for the first quarter of 2025 and adjustments to the interest rate and financial covenants. According to InvestingPro data, the company operates with a total debt of $75.66 million and a debt-to-equity ratio of 1.07, indicating a significant debt burden.

The amendments, known as the Monroe Seventh Amendment and the PNC Sixth Amendment, were made to the respective credit agreements originally dated October 19, 2020, and August 5, 2020. These changes are aimed at providing the company with additional financial flexibility. The company maintains a current ratio of 1.46, suggesting its liquid assets exceed short-term obligations, though InvestingPro analysis indicates the company has been quickly burning through cash.

Additionally, in connection with these amendments, PNC Bank and Monroe Capital Management Advisors, LLC have entered into the Fourth Amendment to the Intercreditor Agreement, which outlines their respective rights regarding the collateral under their agreements.

Quest Resource Holding Corporation, based in The Colony, Texas, specializes in refuse systems and is incorporated in Nevada. The company has provided no further details on the financial implications of these amendments.

Investors and stakeholders can refer to Exhibits 10.1, 10.2, and 10.3 of the SEC filing for complete details of the amendments and the intercreditor agreement. This news is based on a press release statement.

In other recent news, Quest Resource Holding Corporation reported disappointing financial results for the first quarter of 2025. The company recorded an earnings per share (EPS) of -$0.14, missing the anticipated $0.07, and reported revenue of $68.4 million, which was below the expected $77.5 million. This represents a 6% year-over-year decline in revenue and a 22% drop in gross profit. Despite these setbacks, management remains optimistic about future growth, with plans to reduce SG&A expenses and improve operational efficiency. Quest Resource is also undergoing significant operational changes, including new executive appointments, to address current challenges. Analysts have noted the company’s ongoing issues with the industrial sector’s weakness impacting demand. Quest Resource’s management is focused on strategic initiatives to enhance shareholder value and expects improvements by the latter half of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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