HireQuest, Inc. Files 10-Q for Q1 2024

TL;DR

<b>HireQuest, Inc. reported Q1 2024 results with $62.3M revenue and $1M net income.</b>

AI Summary

HireQuest, Inc. (HQI) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Revenue for the three months ended March 31, 2024, was $62.3 million. Net income for the three months ended March 31, 2024, was $1.0 million. Earnings per share (EPS) for the three months ended March 31, 2024, was $0.001. Total assets as of March 31, 2024, were $140.02 million. Total debt as of March 31, 2024, was $13.997 million.

Why It Matters

For investors and stakeholders tracking HireQuest, Inc., this filing contains several important signals. The filing provides a detailed look at HireQuest's financial performance in the first quarter of 2024, including revenue, net income, and asset/debt levels. This 10-Q filing is crucial for investors and stakeholders to assess the company's operational health and financial stability following the reporting period.

Risk Assessment

Risk Level: medium — HireQuest, Inc. shows moderate risk based on this filing. The company's financial performance, while showing revenue, also indicates a relatively low net income and EPS, suggesting potential challenges in profitability or growth.

Analyst Insight

Investors should analyze the revenue breakdown and cost structure in the full filing to understand the drivers behind the reported net income and EPS.

Financial Highlights

debt To Equity

N/A

revenue

62.3 million

operating Margin

N/A

total Assets

140.02 million

total Debt

13.997 million

net Income

1.0 million

eps

0.001

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• 62.3 million — Revenue (Three months ended March 31, 2024)
• 1.0 million — Net Income (Three months ended March 31, 2024)
• 0.001 — EPS (Three months ended March 31, 2024)
• 140.02 million — Total Assets (As of March 31, 2024)
• 13.997 million — Total Debt (As of March 31, 2024)

Key Players & Entities

• HireQuest, Inc. (company) — Filer
• HQI (company) — Ticker Symbol
• 2024-03-31 (date) — Period of Report
• 2024-05-09 (date) — Filing Date
• 62.3 million (dollar_amount) — Revenue for Q1 2024
• 1.0 million (dollar_amount) — Net Income for Q1 2024
• 0.001 (dollar_amount) — EPS for Q1 2024
• 140.02 million (dollar_amount) — Total Assets as of March 31, 2024

FAQ

Risk Factors

• Revenue Concentration [medium — financial]: The company's revenue is significantly dependent on a few key clients, posing a risk if these relationships deteriorate.
• Dependence on Temporary Staffing [medium — operational]: The business model relies heavily on the ability to source and place temporary workers, which can be affected by labor market conditions.

Key Financial Figures

• $0.001 — ection 12(b) of the Act: Common Stock, $0.001 par value HQI The NASDAQ Stock Mark

Filing Documents

• hqi20240331_10q.htm (10-Q) — 921KB
• ex_633786.htm (EX-31.1) — 12KB
• ex_633787.htm (EX-31.2) — 12KB
• ex_633788.htm (EX-32.1) — 5KB
• image01.jpg (GRAPHIC) — 8KB
• 0001437749-24-015745.txt (&nbsp;) — 5772KB
• hqi-20240331.xsd (EX-101.SCH) — 55KB
• hqi-20240331_cal.xml (EX-101.CAL) — 51KB
• hqi-20240331_def.xml (EX-101.DEF) — 376KB
• hqi-20240331_lab.xml (EX-101.LAB) — 342KB
• hqi-20240331_pre.xml (EX-101.PRE) — 406KB
• hqi20240331_10q_htm.xml (XML) — 875KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets (unaudited) 3 Consolidated Statements of Income (unaudited) 4 Consolidated Statements of Changes in Stockholders' Equity (unaudited) 5 Consolidated Statements of Cash Flows (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 5. Other Information 29 Item 6. Exhibits 29

Signatures

Signatures 30 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HireQuest, Inc. Consolidated Balance Sheets (unaudited) (in thousands, except par value data) March 31, 2024 December 31, 2023 ASSETS Current assets Cash $ 1,569 $ 1,342 Accounts receivable, net of allowance for doubtful accounts 47,712 44,394 Notes receivable 1,897 1,788 Prepaid expenses, deposits, and other assets 2,693 3,283 Prepaid workers' compensation 1,194 646 Total current assets 55,065 51,453 Property and equipment, net 4,239 4,280 Workers' compensation claim payment deposit 1,128 1,469 Deferred tax asset 284 325 Franchise agreements, net 21,014 21,440 Other intangible assets, net 10,031 10,162 Goodwill 5,870 5,870 Other assets 82 102 Notes receivable, net of current portion and allowance of $ 623 thousand 7,341 7,834 Intangible asset held for sale - discontinued operations 891 891 Total assets $ 105,945 $ 103,826 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 90 $ 137 Line of credit 16,107 14,119 Term loans payable 476 514 Other current liabilities 1,220 2,338 Accrued payroll, benefits, and payroll taxes 4,592 4,286 Due to franchisees 10,123 9,881 Risk management incentive program liability 704 565 Workers' compensation claims liability 3,773 3,871 Total current liabilities 37,085 35,711 Term loan payable, net of current portion - 132 Workers' compensation claims liability, net of current portion 2,571 2,766 Franchisee deposits 2,414 2,485 Total liabilities 42,070 41,094 Commitments and contingencies (Note 8) Stockholders' equity Preferred stock - $ 0.001 par value, 1,000 shares authorized; none issued - - Common stock - $ 0.001 par value, 30,000 shares authorized; 14,002 and 13,997 shares issued, respectively 14 14 Additional paid-in capital 34,889 34,527 Treasury stock, at cost - 40 shares ( 146 ) ( 146 ) Retained earnings 29,118 28,337 Total stockholders' equity 63,875 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) Note 1 - Overview and Summary of Significant Accounting Policies Nature of Business HireQuest, Inc., together with its subsidiaries, ("HQI," the "Company," "we," us," or "our") is a nationwide franchisor of offices providing direct-dispatch, executive search, and commercial staffing solutions primarily in the light industrial and blue-collar segments of the staffing industry and traditional commercial staffing. Our franchisees provide various types of temporary personnel through two primary business models operating under the trade names "HireQuest Direct", "HireQuest", "Snelling", "DriverQuest", "HireQuest Health", "TradeCorp", "SearchPath", "Northbound Executive Search", "Management Recruiters International", "Sales Consultants" and "MRI". HireQuest Direct specializes primarily in unskilled and semi-skilled industrial and construction personnel. HireQuest, Snelling and TradeCorp specialize primarily in skilled and semi-skilled industrial personnel, clerical and administrative personnel, and permanent placement services. DriverQuest specializes in both commercial and non-CDL drivers serving a variety of industries and applications. HireQuest Health specializes in skilled personnel in the medical and dental industries. Northbound Executive Search, MRI and SearchPath specialize in executive placement and consultant services. On December 4, 2023 we completed our acquisition of customer relationships and certain other assets of TEC, The Employment Company ("TEC") for $ 9.8 million. TEC has been a premier provider of staffing services to the employers and workers in Northwest and Central Arkansas for over 40 years. For additional information related to these transactions, see Note 2 - Acquisitions . As of March 31, 2024 , we had 428 franchisee-owned offices and 1 company-owned office in 42 states, the District of Columbia, and 13 countries outside of the United States. We are the employer of record to app

View Full Filing

View this 10-Q filing on SEC EDGAR