Hirequest, Inc. · NASDAQ:HQI
Hirequest — Investor Presentation (June 2020)
23 slides from Hirequest's investor presentation, Jun 2, 2020
Slide 1: HireQuest Inc. Investor Presentation June 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement
Slide 3: Who We Are
Who We Are Nationwide franchisor of on-demand tabor solutions in ‘the light industria and blve-calar segments ofthe staffing industry Prottabletranchse-cenric model Created by a merger of HeQuest and Command enter in ly 2019 135 franchised offices 30 states and the District of Columbia Provider of a
Slide 4: Strategic Merger Creates Meaningful Scale
Strategic Merger Creates Meaningful Scale All-stock transaction valued at ~$26.7 million was completed in July 2019 to combine business operations of HireQuest and Command Center 2018 ten orestem spay an zoierevene 0h 97.48 Bwikopentng gray 51.28 Se ene fot zcatins — Pfanened 67 Seren peel states 2
Slide 5: Value Proposition
Value Proposition Convenient one-stop shop that ‘matches qualified candidates with ivalable work Flexible schedules and benefits for qualifying employees Same-day pay on convenient electronic payeards Up to 100% financing ofa franchise opening + Worker compensation insurance on favorable terms + Rob
Slide 6: Value Creation: Converting from Branch Model to Franchise Model
Value Creation: Converting from Branch Model to Franchise Model Facilitating the purchase of offices by franchisees enables recovery of a majority of ‘our investment and adds to our revenue streams ‘Acquistion of offices includes intangibte assets (customer relationships and related customer lists)
Slide 7: Well-Positioned for Future
Well-Positioned for Future
Slide 8: Market Overview
Market Overview ‘Targeting the largest segment of $1678 staffing and recruiting market... light industrial / blue collar Industry Trends 1 Derand for day labor remains strong ‘within staffing industry 1 Employers are looking fr altematives te combat increasing costs and administrative burdens 1 Chan
Slide 9: Attractive Industry Dynamics
Attractive Industry Dynamics On-demand labor offers employers: Immediate reaction and flexibility to changing staffing needs Lower costs associated with recrultment, interviewing, {and emptoyment obligations Elimination of unemployment and workers’ compensation exposure Relief from administrative an
Slide 10: Attractive Branch Locations
Attractive Branch Locations Our more than 130 franchised offices are located in healthy job markets across 30 states and the District of Columbia Strong concentration of branches in established and emerging regions Regional branch concentrations allow for greater local brand recognition and cease of
Slide 11: Compelling Revenue Model
Compelling Revenue Model + Premluns exmed for eeuctbie reimbursement ‘eevee reimbursement tp to $3008 ‘las over $5004 covered by OmsSD/ACE American Royalties and interest ‘income ae typically approximately 4 of franchise system-wide sales = Hypothetical Single Branch anose es 9G veces rane Ses 227 =
Slide 12: Branch-level Economics
Branch-level Economics Our unique approach to franchise model creates a strong barrier to entry for competitors and enables potentially higher operating margins at the franchise level illustrative Revenue Model HireQuest’s office-level operating margins are (Operating margin as a 8 of typically 150
Slide 13: Post-Merger: Near-term Strategic Objectives
Post-Merger: Near-term Strategic Objectives |All Command Center branches were converted to franchise model within a single quarter Exited California marketplace Sold four CA tocations (On-going rationalization of the footprint of the new combined entity | Expanding into new, un-served markets | Uppe
Slide 14: Enterprise Value
Enterprise Value Smee rcp sare [=e Stora doe 6/2) ar Shroud nase eat et capo se 6/1/20) so Ps bt * es: et 09) Les: Hotes Rehab Net fan 28 oe va! sus
Slide 15: Statements of Operations
Statements of Operations System-Wide Sales § 292,308,983 § 241,624,437 $50,684,546, § 189,328,950. § 97,388,820 Total Revenue 80,513,787 29,809,229 50,704,558 12,965,711 97,388,820 Tota Cost of Revenue 728,24 9,946,836 37,336,388 629,449 72,450,295, Gross Proit 33,230,563 19,862,393 13,368,170 12,42
Slide 16: Balance Sheets
Balance Sheets Cash $10,040,828 § 4,187,480 Accounts Receivable Trade 24,426,333 28,201,279 Total Curent Assets 40,619,157 37,021,125 Net Property and Equipment 2,545,525 1,900,686 Total Assets $ 49277,733 § 46,912,002 Due to Franchisees 3,319,107 3,610,596 Risk Management incentive Program 22317 1,
Slide 17: Leadership
Leadership Rick Hermanns, President and CEO ‘Me. Hermanns has served as Chairman ofthe Board, President and Chef Executive Officer of HreQuest, Inc. ‘since Jly 2019. Mr. Hermanns has nearly tity years of experience in the temporary sang industy. He ‘Previously Served as Chie Executive Oicr and Secre
Slide 18: Leadership
Leadership John McAnnar, Executive Vice President & General Counsel David Gerstner, Vice President of Operations ‘Suecincarerae stuncomanagers town Aen temps Ata Ga 987 dy Saegprcancs hn Tarps sah Caner ‘Rorius cumbersceptnc rot enctt Opteron ces Tonga Pars he, Oana en alee Vea Present Opens ‘anioun
Slide 19: Investor Highlights
Investor Highlights
Slide 20: Contact Us
Contact Us HireQuest, Inc. Rick Hermanas, CEO 111 Springhall Brive Goose Creek, SC 80235. Tel (643) 723-7400 Hayden IR Investor Relations Brett Maas, Managing Director Tel (646) 536-7331
Slide 21: Appendix
Appendix
Slide 22: Board of Directors
Board of Directors Seen
Slide 23: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure