Good day, and welcome to the Quest Resource Holding Corporation Fourth Quarter and Fiscal Year 2018 Earnings Call. Today's conference is being recorded. As a reminder, there will be a Q&A session during the today’s call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. David Mossberg, Investor Relations Representative. Please go ahead, sir.

Thank you, Shanet. And thank you, everyone for joining us on the call. Just before we start, I want to apologize for the technical difficulties we’re having with our newswire services putting the press release out. So those of you who have not seen it, you can download it from the SEC website sec.gov. We also have an SEC document section under Investor Relations section of our website orhc.com and you could download it from the SEC section of the Investor Relations section as well. Beyond that, I'd like to remind everyone that this conference call may contain predictions, estimates and other forward-looking statements regarding the future events or future performance of Quest. Use of words like anticipate, project, estimate, expect, intend, believe and other similar expressions are intended to identify those forward-looking statements. Forward-looking statements also include statements regarding Quest's future opportunities for growth; Quest's expectations for revenue, margins, and profitability in future periods; Quest's industry position and industry trends; Quest's prospects, outlook and business strategies going forward; and Quest's belief regarding progress and timing. Such forward-looking statements are based on Quest's current expectations, estimates, projections, beliefs, and assumptions and involve significant risks and uncertainties. Actual events or Quest's results could differ materially from those discussed in the forward-looking statements as a result of various factors, including change in market trends, reduced demand and other competitive nature of Quest’s industries discussed in greater detail on Quest's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended December 31, 2018. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties. You can find these documents on Quest's website at qrhc.com. Quest's forward-looking statements are presented as of the date made, and…

Thank you, Dave. And welcome to everybody on our call to discuss our fourth quarter and our 2018 financial results. Joining me today is Laurie Latham, our Senior Vice President and Chief Financial Officer. We accomplished a lot during 2018. We completed the transition in our go-to-market strategy in which we're now entirely focused on the right business, right markets and the right customers. As a result, customers are increasingly viewing this as a turnkey strategic partner that can help them meet their sustainability goals and not just a vendor that picks up their waste. We also completed a significant overhaul of our operations, improving efficiencies this created a win for our customers, our vendors, and for Quest, a win for our customers in the form of lowering their cost, improving service levels and increasing landfill diversion. A win for our vendors in the terms of improving asset utilization and operational efficiencies, and a win for Quest in terms of providing a sustainable level of gross margin, we've been consistently operating within our targeted gross margin range for the last five quarters. These accomplishments are beginning to show in improving financial results. For the first time in our history, during the fourth quarter we achieved GAAP net income for an individual quarter. We're able to deliver a 7% growth in gross profit dollars. And we added $1.5 million to our EBITDA. I point out that this is our most profitable year in terms of EBITDA in the history of the company. And we did this for the revenue base that was 25% lower than it was last year. The improvements we're seeing are a direct result of the strategic plan that we implemented a couple of years ago, while we still have a way to go. I'm optimistic that we have the right plan in place and we'll continue to see improvements in our financial performance during 2019 and thereafter. Before I get into more detail and an overview of our initiatives, I want to turn the call over to Laurie to review our financials. Laurie?

Thank you, Ray, and good afternoon to everyone on the call. Starting with the 2018 fourth quarter, revenue was $25.3 million, a 12% increase compared with $22.5 million in the fourth quarter last year. Year-over-year growth was primarily related to expansion within existing accounts. Gross profit for the fourth quarter was $4.4 million, compared to $3.1 million last year. Gross margin for the fourth quarter was 17.5%, a 3.9 percentage point improvement compared to last year. I want to point out that the gross margin can vary significantly from quarter-to-quarter as was the case during the fourth quarter, in which the margin was actually above our targeted range. Going forward we intend to continue to manage the business to maintain gross margin in our targeted range of low to mid teens, but advised that the gross margin can vary considerably from period-to-period. Fourth quarter operating expenses decreased 7% to $4.2 million, compared to $4.5 million during the same period last year. The decrease in operating expenses was primarily related to lower amortization expense as certain of our intangible assets were fully amortized as of July, 2018. The lower amortization expense was partially offset by an increase in SGA, primarily related to an increase in labor related expenses year-over-year. The net income per basic and diluted share was $0.01 for the fourth quarter of 2018, compared with a loss for basic and diluted share of $0.10 for the fourth quarter of 2017. Our adjusted EBITDA was $771,000 for the fourth quarter of 2018, which was an improvement of $1 million compared to 273,000 lost during the same period last year. We compute adjusted EBITDA, which is a non-GAAP financial measure to provide additional insight into our financial performance. I refer you to the table in today's press release for reconciliation to…

Thank you, Laurie. Before we move on to review of our strategy, I'd like to go over the progress we've made in the last couple of years and to remind everyone why we're excited about the future here at Quest. Over the past two years, we shrank the revenue base by 44% by eliminating business that just didn't make sense and adding business that can sustainably produce attractive margin and returns. With that lower revenue base, we grew gross profit dollars by 17% in the last two years which is driven by improving the revenue mix and improving operational efficiencies. Last year we turned the corner from adjusted EBITDA losses to profitability and over the past two years, adjusted EBITDA showed nearly a $4 million improvement. We've also turned the corner on GAAP profitability. While we still have a way to go to reach adequate profitability returns, we've produced a first net -- quarterly net income in our history during the fourth quarter and we're well-positioned to grow GAAP profitability for years to come. These financial results are just the beginning of what we can do and I expect improvements to continue at a rapid pace. We're now targeting the right business and we have the right back office in place to execute. With this foundation, we're ready to resume growth of both top and bottom line. Over the next three to five years, I'm optimistic, we'll be able to return to revenue at the levels we have achieved in the past, while producing profit margins at our current target level. I now will recap the aspects of the business that give us confidence in achieving those goals. First, of course, there's tremendous efficiencies of scale and scope. We've processed millions of tons of waste during 2018 in every state…

Thank you, operator. I want to take this time again to thank all the folks and their interest in Quest and congratulate the Quest team members for all the hard work that's been done to complete this really -- to continue down this impressive transformation of the business. We really look forward to the rest of this year. We're excited about where we are more excited about where we're going. And we're glad you're here with us. So with that, we will end the call and look forward talking to you next time.

This concludes today's call. Thank you for your participation you may now disconnect.