Business
HireQuest Reports Financial Results for the Third Quarter of 2020
$800,000 Sequential Improvement in Net Income Validates Confidence that Worst of COVID-19 Impact is Over GOOSE CREEK, S.C.--(BUSINESS WIRE)-- HireQuest, Inc.
About this update from Hirequest, Inc.
[{"type":"text","content":"\n$800,000 Sequential Improvement in Net Income Validates Confidence that Worst of COVID-19 Impact is Over\n\n GOOSE CREEK, S.C.--(BUSINESS WIRE)--\nHireQuest, Inc. (Nasdaq: HQI), a national provider of back-office and operational support for franchised operators of on-demand and temporary staffing service providers, today reported financial results for the third quarter ended September 30, 2020.\n\nThird Quarter 2020 Financial Summary \n\n\nFranchise royalties of $3.2 million compared to $3.1 million in the prior year period, an increase of 2.5%.\n\n\nService revenue, including interest paid on aging accounts receivable, of $164,000 compared to $154,000 in the prior year period, an increase of 6.7%.\n\n\nTotal revenue of $3.4 million compared to $3.3 million in the prior year period, an increase of 2.7%.\n\n\nNet Income was $2.0 million, or $0.15 per diluted share, compared to a net loss of $7.8 million, or $(0.60) per share last year. The prior-year quarter included $4.8 million of merger-related expenses and $683,000 of income from discontinued operations.\n\n\nPaid first quarterly cash dividend of $0.05 per share\n\n\nOn November 11, 2020, the Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock expected to be paid on December 15, 2020 to shareholders of record as of December 1, 2020 representing an annual dividend yield of 2.4%2. The company intends to pay quarterly cash dividends on its common stock each year in March, June, September and December, subject to final approval by the Board of Directors each quarter after its review of the Company’s financial performance.\n\n\nSystem-wide sales1 (a non-GAAP operating performance metric) for the third quarter 2020 of $55.6 million compared to $74.2 million for the quarter ended September 29, 2019.\n\n“Our franchise business model, combined with a solid balance sheet and steady cash flow, are making it possible for us to continue to deliver profitable results while navigating the ongoing challenges resulting from the global healthcare crisis,” commented Rick Hermanns, HireQuest’s President and Chief Executive Officer. “For the first time, we declared a quarterly cash dividend of $0.05 per share. Our Board has again approved a dividend this quarter, and, barring anything currently unforeseen, we expect to continue to pay a similar dividend in t...