Business
HireQuest Reports Financial Results for the Second Quarter 2021
Q2 2021 EPS of $0.20 per Diluted Share, Net Income of $2.7 million, and Adjusted EBITDA of $4.4 million GOOSE CREEK, S.C.--(BUSINESS WIRE)-- HireQuest, Inc.
About this update from Hirequest, Inc.
[{"type":"text","content":"\nQ2 2021 EPS of $0.20 per Diluted Share, Net Income of $2.7 million, and Adjusted EBITDA of $4.4 million\n\n GOOSE CREEK, S.C.--(BUSINESS WIRE)--\nHireQuest, Inc. (Nasdaq: HQI), a national franchisor of on-demand, temporary, and commercial staffing services, today reported financial results for the second quarter ended June 30, 2021.\n\nSecond Quarter 2021 Summary \n\n\nFranchise royalties of $5.5 million compared to $2.6 million in the prior year period, an increase of 106.5%. The branches acquired from LINK and Snelling in the first quarter of 2021 comprised approximately $1.7 million of the revenue.\n\n\nServices revenue, including interest paid on aging accounts receivable, of $256,000 compared to $262,000 in the prior year period, a decrease of 2.3%.\n\n\nTotal revenue of $5.7 million compared to $2.9 million in the prior year period, an increase of 96.7%.\n\n\nNet Income, inclusive of miscellaneous income and acquisition-related expenses was $2.7 million, or $0.20 per diluted share, compared to net income of $1.2 million, or $0.09 per share last year.\n\n\nAdjusted EBITDA of $4.4 million compared to $1.8 million in the prior year period.\n\n\nHireQuest launched DriverQuest, a franchise offering focused on providing staffing services to the transportation and logistics industries. DriverQuest is a natural extension to the company’s existing on-demand and commercial staffing offerings providing another avenue of growth for existing and new franchisees. To date over 35 existing franchisees have adopted the offering.\n\n\nHireQuest closed a $63.2 million credit facility comprised of a $60.0 million Revolving Credit Facility and a $3.2 million Term Loan with its existing lender, Truist (formerly BB&T). The new facility replaced the Company’s prior $30 million revolving credit facility.\n\n\nSubsequent to Quarter End\n\n\nBoard of Directors declared a quarterly cash dividend of $0.06 per share of common stock to be paid on September 15, 2021 to shareholders of record as of September 1, 2021.\n\n\nSystem-wide sales (a key performance indicator) for the second quarter of 2021 were $88.7 million compared to $44.1 million for the same period in 2020. The increase was due to recovering organic sales from our HireQuest Direct and HireQuest franchisees as well as new sales from the acquired Snelling and Link franchisees. Organic syste...