Business
HireQuest Reports Financial Results for First Quarter 2022
Q1 2022 Franchise Royalties Double YoY to $6.6 millionGOOSE CREEK, SC / ACCESSWIRE / May 10, 2022 / HireQuest, Inc. (NASDAQ:HQI), a national franchisor of
About this update from Hirequest, Inc.
[{"type":"text","content":"Q1 2022 Franchise Royalties Double YoY to $6.6 millionGOOSE CREEK, SC / ACCESSWIRE / May 10, 2022 / HireQuest, Inc. (NASDAQ:HQI), a national franchisor of direct dispatch, executive search, and commercial staffing services, today reported financial results for the first quarter ended March 31, 2022.First Quarter 2022 SummaryFranchise royalties increased 101.7% to $6.6 million compared to $3.3 million in the prior year period. Organic royalties, excluding the effect of acquisitions, of $4.2 million grew 29.9% over the prior year period.Staffing revenue from owned locations was $1.1 million.Service revenue increased 225.4% to $468,000 compared to $144,000 in the prior year period.Total revenue increased 139.4% to $8.1 million compared to $3.4 million in the prior year period.Net Income was $603,000, or $0.04 per diluted share, compared to net income of $3.7 million, or $0.27 per diluted share in the prior year period. The decrease was primarily due to $3.6 million, or $3.0 million after tax, in expenses related to converting newly acquired business into franchises.Record Adjusted EBITDA of $5.3 million compared to $1.5 million in the prior year period.Subsequent to Quarter EndThe Company's Board of Directors declared a quarterly cash dividend of $0.06 per share of common stock to be paid on June 15, 2022, to shareholders of record as of June 1, 2022.System-wide sales for the first quarter of 2022 were $101.0 million compared to $56.1 million for the same period in 2021. Existing franchisees grew organic system-wide sales 35.0% compared to the prior year period.Rick Hermanns, HireQuest's President and Chief Executive Officer, commented on the results, \"Our first quarter provided a strong start to 2022, with continued organic growth from our differentiated franchise model combined with acquisition growth resulting in Adjusted EBITDA of $5.3 million. During the quarter we completed three acquisitions. The staffing division of dmDickason adds three locations, expanding our franchise base in West Texas and New Mexico. The Dubin Group and Dubin Workforce Solutions mark our entry into Pennsylvania. Northbound Executive Search adds New York to our map and expands HireQuest's franchise offerings into the higher margin executive placement vertical. These acquisitions combined for over $35 million in sales for 2021 and we now have a foothol...