Hirequest, Inc. · NASDAQ:HQI
Hirequest — Investor Presentation (September 2023)
16 slides from Hirequest's investor presentation, September 2023
Slide 1: Investor Presentation September 2023
INVESTOR PRESENTATION September 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation and other documents referenced herein include, and our officers and representatives may from time to time make or provide, certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Li
Slide 3: HireQuest – At a Glance
HIREQUEST – AT A GLANCE 400+ ▪ Leading national franchisor of Locations 300+ direct dispatch, executive search, and commercial staffing services National Reach, ▪ Profitable franchise-business Franchises model with multiple growth Local Ownership 10,000+ drivers ▪ Proprietary, purpose-built software
Slide 4: Investor Highlights
INVESTOR HIGHLIGHTS STRONG DIFFERENTIATED ORGANIC & FINANCIAL PERFORMANCE FRANCHISOR MODEL ACQUISITIVE GROWTH ▪ Multiple recurring revenue ▪ Profitable, franchise-centric ▪ Organic locations opened by streams model yields substantial new and existing franchisees operating leverage as the ▪ Strong ba
Slide 5: Staffing Solutions Leader with Diverse Service Offerings
STAFFING SOLUTIONS LEADER WITH DIVERSE SERVICE OFFERINGS ▪ Flexible labor solutions, per diem DIRECT DISPATCH ▪ Key Client Verticals: construction, hospitality, landscaping, STAFFING janitorial, special events ▪ Short and long-term staffing solutions ▪ Staffing Services: skilled trades, permanent pl
Slide 6: $150B TAM: HireQuest Targeting 89% of the Total Staffing Market
$150B TAM HIREQUEST TARGETING 89% OF THE TOTAL STAFFING MARKET IT IT 11% 11% Health Care 8% Light Industrial / Blue-Collar 36% Current offerings target U.S. Staffing Market virtually all segments of Professional the $168 billion staffing 21% and recruiting market Office / Clerical 24% Source: Americ
Slide 7: Global Coverage: 400+ Franchised and Licensed Offices Nationwide
GLOBAL COVERAGE 18 Franchised 400+ Franchised and Licensed International Offices Offices Nationwide 13 1 6 7 9 2 2 1 8 6 2 12 2 1 7 8 3 12 2 20 4 13 11 1 6 12 5 25 6 2 7 5 1 19 17 5 4 4 5 23 ▪ Concentration of branches 1 9 20 in established and emerging regions 51 9 ▪ Regional branches provide HQI F
Slide 8: Benefits of the Franchise Solution
BENEFITS OF THE FRANCHISE SOLUTION FRANCHISE MODEL Traditional Staffing Model Incentive Alignment Fluctuating Compensation ▪ Franchisees are owners and drive branch-level ▪ Difficult to incentivize employees profitably - variable performance and management expectations compensation structures across
Slide 9: Financial Highlights
Q2 ‘23 LTM METRICS TOTAL REVENUE1 $31.0 FINANCIAL $34.8M $13.8 $22.5 HIGHLIGHTS Total Revenue1 2020 2021 2022 $13.9M INCOME FROM OPERATIONS1 Income from Operations1 HireQuest generated significant momentum $11.1M $16.0 through 2022 $7.7 Net Income2 $5.0 2020 2021 2022 $0.80 ADJUSTED EBITDA3 Diluted
Slide 10: Compelling Recurring Revenue Model
COMPELLING RECURRING REVENUE MODEL Our three revenue streams generate uniquely high margins for the staffing industry Franchise License Service Royalties Fees Revenue HYPOTHETICAL SINGLE TEMPORARY STAFFING BRANCH ~$2.1 million ~6.5% ~$136,500 ~3% ~$73,500 Franchisee Blended Royalty Rate HQI Revenue
Slide 11: Path Forward
PATH FORWARD Leveraging organic and Strategic Near immediate return growth strategies through conversion to Acquisitions franchise model Expanding Significant expansion opportunities Verticals & across the HQI portfolio Offerings Growing Franchisees & Leveraging opportunities Geographic to expand na
Slide 12: Contact Us
CONTACT US HIREQUEST, INC. David Hartley, Vice President of Corporate Development 111 Springhall Drive Goose Creek, SC 80235 Tel (800) 835-6755 cdhartley@hirequest.com IMS INVESTOR RELATIONS Investor Relations John Nesbett / Jennifer Belodeau Tel (203) 972-9200 hirequest@imsinvestorrelations.com NAS
Slide 13: Appendix
Appendix yg HIREQuEST INC:
Slide 14: Statement of Operations
STATEMENT OF OPERATIONS T hre e mo nths e nd e d (in thousands, except per share data) J une 30, 2023 J une 30, 2022 Franchise royalties $ 8,704 $ 7,221 Service revenue 286 779 To tal revenue 8,990 8,000 Selling, general and administrative expenses 5,625 3,223 Depreciation and amortization 700 521 I
Slide 15: Summary Balance Sheets
SUMMARY BALANCE SHEETS Pe rio d e nd e d (in thousands) J une 30, 2023 D e c e mb e r 31, 2022 ASSETS Current assets Cash $ 2,071 $ 3,049 Accounts receivable, net of allowance for doubtful accounts 51,089 45,728 Other current assets 4,709 3,153 Total current assets 57,869 51,930 Property and equipme
Slide 16: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (in thousands) Net Income to Trailing Twelve Months (TTM) Twelve Months Ended Adjusted EBITDA 1 ended June 30, 2023 December 31, 2022 December 31, 2021 December 31, 2020 Net Income $ 11,602 $ 12,458 $ 11,850 $ 5,359 Interest expense 1,065 368 157 50 Provi