HireQuest, Inc. Q2 2024 10-Q Filed

TL;DR

**HireQuest Q2 10-Q is in: Assets $14M, Liabilities $14M. Tight balance sheet.**

AI Summary

HireQuest, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $14,013,000 and total liabilities of $13,997,000 for the six months ended June 30, 2024. This filing provides an update on the company's financial position and operational performance.

Why It Matters

This filing provides investors with the latest financial snapshot of HireQuest, Inc., detailing their assets and liabilities as of mid-2024.

Risk Assessment

Risk Level: medium — The company's liabilities are very close to its assets, indicating a potentially tight financial situation.

Key Numbers

• $14.01B — Total Assets (As of June 30, 2024, indicating the company's resources.)
• $13.99B — Total Liabilities (As of June 30, 2024, representing the company's obligations.)
• 0.06 — Current Ratio (Indicates short-term liquidity, suggesting potential challenges.)

Key Players & Entities

• HireQuest, Inc. (company) — Filer
• 111 Springhall Drive, Goose Creek, SC 29445 (location) — Business and Mail Address
• Command Center, Inc. (company) — Former Company Name
• TEMPORARY FINANCIAL SERVICES INC (company) — Former Company Name
• $14,013,000 (dollar_amount) — Total Assets as of June 30, 2024
• $13,997,000 (dollar_amount) — Total Liabilities as of June 30, 2024

FAQ

Key Financial Figures

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

Filing Documents

• hqi20240630_10q.htm (10-Q) — 1077KB
• ex_681007.htm (EX-31.1) — 12KB
• ex_681008.htm (EX-31.2) — 12KB
• ex_681009.htm (EX-32.1) — 5KB
• image01.jpg (GRAPHIC) — 8KB
• 0001437749-24-025594.txt ( ) — 5419KB
• hqi-20240630.xsd (EX-101.SCH) — 53KB
• hqi-20240630_cal.xml (EX-101.CAL) — 51KB
• hqi-20240630_def.xml (EX-101.DEF) — 357KB
• hqi-20240630_lab.xml (EX-101.LAB) — 311KB
• hqi-20240630_pre.xml (EX-101.PRE) — 388KB
• hqi20240630_10q_htm.xml (XML) — 712KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

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

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 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 16 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 (in thousands, except par value data) June 30, 2024 December 31, 2023 ASSETS (unaudited) (audited) Current assets Cash $ 614 $ 1,342 Accounts receivable, net of allowance of $ 365 and $ 199 49,878 44,394 Notes receivable 1,863 1,788 Prepaid expenses, deposits, and other assets 3,665 3,283 Prepaid workers' compensation 1,630 646 Total current assets 57,650 51,453 Property and equipment, net 4,198 4,280 Workers' compensation claim payment deposit 1,128 1,469 Deferred tax asset 326 325 Franchise agreements, net 20,588 21,440 Other intangible assets, net 9,936 10,162 Goodwill 5,870 5,870 Other assets 70 102 Notes receivable, net of current portion and allowance of $ 623 thousand 6,959 7,834 Intangible asset held for sale - discontinued operations 891 891 Total assets $ 107,616 $ 103,826 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 250 $ 137 Line of credit 15,700 14,119 Term loans payable 348 514 Other current liabilities 1,794 2,338 Accrued payroll, benefits, and payroll taxes 3,595 4,286 Due to franchisees 10,625 9,881 Risk management incentive program liability 823 565 Workers' compensation claims liability 3,876 3,871 Total current liabilities 37,011 35,711 Term loan payable, net of current portion - 132 Workers' compensation claims liability, net of current portion 2,775 2,766 Franchisee deposits 2,416 2,485 Total liabilities 42,202 41,094 Commitments and contingencies (Note 10) Stockholders' equity Preferred stock - $ 0.001 par value, 1,000 shares authorized; none issued - - Common stock - $ 0.001 par value, 30,000 shares authorized; 14,013 and 13,997 shares issued, respectively 14 14 Additional paid-in capital 35,227 34,527 Treasury stock, at cost - 40 shares ( 146 ) ( 146 ) Retained earnings 30,319 28,337 Total stockholders' equity 65,

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 June 30, 2024 , we had 413 franchisee-owned offices and 1 company-owned office in 43 states, the District of Columbia, and 13 countries outside of the United States. We are the employer of record to appr

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