Hirequest, Inc. · NASDAQ:HQI
Hirequest — Investor Presentation (March 2021)
25 slides from Hirequest's investor presentation, Mar 25, 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021 uP na HIREQUEST
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. Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21€ of the Ex
Slide 3: Who We Are
Who We Are = Nationwide franchisor of on-demand and commercial staffing solutions in the light industrial, blue-collar, medical, clerical, and executive search segments of the staffing industry = Profitable franchise-centric model aa HIREQUEST INC: * Over 215 franchised and licensed offices in 36 st
Slide 4: 2020 Year in Review
2020 Year in Review HireQuest’s 2020 results demonstrate the strength of our franchisee network and the resiliency of our differentiated franchisor model = Four straight profitable quarters through 2020 despite the Summary 2020 Quarterly Results pandemic’s economic impact depressing system sales and
Slide 5: Combined Company with Significantly Increased Scale and Scope
Combined Company with Significantly Increased Scale and Scope Pd HiREQuEST SNELLING WINK | ypHincauesr SNELLING System? ou $34am $211M $76M $57M 217 Locations Locations? 130 On-demand Labor 140 oe 42 35 87 Commercial Staffing 36 1 states and the District of Columbia ee ay o On-Demand Commercial Ce n
Slide 6: Two Compelling Additions to the HireQuest Family
Two Compelling Additions to the HireQuest Family The Snelling and Link acquisitions give HireQuest’s commercial staffing offering immediate scale and adds additional staffing services such as clerical/office, medical and permanent placement * Commercial Staffing is a compelling franchise a opportuni
Slide 7: Acquisitions Increase HQI's Total Addressable Market
Acquisitions Increase HQI’s Total Addressable Market The acquisitions of Snelling and Link have more than doubled HQI’s TAM to $143 billion, and we now have offerings targeting virtually all segments of the $1618 staffing and recruiting market... HY HISEQUEST SNELLING HHigeQuest = MFHireQuest Hf Hir
Slide 8: Coast-to-Coast Coverage
Coast-to-Coast Coverage More than 215 franchised and licensed offices located in healthy job markets across 36 states and the District of Columbia HI a rrncrsceomtces Ya v0sscrses oes Strong concentration of branches in established and emerging regions Regional branch concentrations allow for greate
Slide 9: California Licensed Locations
California Licensed Locations Strategic trademark license agreement in California provides HireQuest with a new revenue stream and expanded brand footprint * Currently covers a total of 10 Snelling and Link locations operating in California, with the ability to expand in the future * Athird-party fr
Slide 10: Investor Highlights
Investor Highlights Vv Leading platform of franchised staffing services - 215+ franchised and licensed locations across the U.S. Vv Differentiated franchisor model — higher margins and less volatility than non-franchised staffing companies J Asset light, scalable operations producing multiple recurr
Slide 11: Value Proposition
Value Proposition HireQuest’s differentiated franchisor model provides value to all stakeholders 2 national footprint = Simplifies Int-office payroll sof = Conveniefiilmine-stop shop that malls qualified = Trusted name candidatemth available work 7 ; = Flexibility to mdllmBtaffing needs allowinjmmst
Slide 12: Compelling Revenue Model
Compelling Revenue Model Multiple recurring revenue streams provide stability # Batty trom Franchisees forfmmek-office support ices including: Jusiness, financial, marketfilmand operational ipport services \demark license fees frofmmcations in fornia: Fee for use of trademarkilmicalifornia Minimal a
Slide 13: 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 (Operating margin as a % of revenue) Competitor HireQuest mm Revenue — Operating Margin H
Slide 14: Well-Positioned for the Future
Well-Positioned for the Future Increase National Accounts Add Franchisees and Expand Geographically Grow New Verticals / Offerings Acquisitions ‘Scale combined with unique royalty business model are expected to drive profitable growth in National Accounts Significantly expanded footprint increases r
Slide 15: Large Market with Positive Tailwinds
Large Market with Positive Tailwinds * While the pandemic depressed economic activity in 2020, similarly to the recession in 2008 — 2009, temporary and contract staffing is expected to see strong growth as the economy recovers + Temporary and contract staffing continues to be an important component
Slide 16: Enterprise Value
Enterprise Value in millions, except price per share Stock price (as of close 3/24/2021) $ 17.03 ‘Shares outstanding’ 13,638,041 Equity Market Cap (as of close 3/24/2021) $ 2323 Plus: Debt” 0.0 Less: Cash* 13.7 Less: Notes Receivable Net of Reserve” 59 Enterprise Value* $ 2127 eq HireQuest Inc: Nasd
Slide 17: Statement of Operations
Statement of Operations Sin thousands Year ended 12/31/2020 12/31/2019 ‘System-Wide Sales $ 210,917 $ 292,309 Total Revenue 13,809 15,876 SG&A Expense 8,700 12,692 Depreciation & Amortization 129 400 Total Operating Income 4,979 2,784 Total Other Income 4,171 751 Interest Expense (50) (560) Pre-tax
Slide 18: Balance Sheets
Balance Sheets ‘Sin thousands Cash Accounts Receivable - Trade Total Current Assets Net Property and Equipment Total Assets Due to Franchisees Risk Management Incentive Program Workers’ Compensation Claims, Current Total Current Liabilities Total Long-Term Liabilities Equity Total Liabilities & Equi
Slide 19: Leadership
Leadership Rick Hermanns, President and CEO ‘Mr. Hermanns has served as Chairman of the Board, President and Chief Executive Officer of HireQuest, Inc. since July 2019. Mr. Hermanns has nearly thirty years of experience in the temporary staffing industry. He previously served as Chief Executive Offi
Slide 20: Leadership (continued)
Leadership (continued) David Gerstner, Vice President of Operations ‘Mr. Gerstner is the Vice President of Operations of HireQuest, Inc. Mr. Gerstner has nearly 25 years of experience in the temporary staffing industry. He started his career as a branch ‘manager in 1995 with Ameri-Temps in Atlanta,
Slide 21: Contact Us
Contact Us HireQuest, Inc. Rick Hermanns, CEO 111 Springhall Drive Goose Creek, SC 80235 Tel (843) 723-7400 Hayden IR Investor Relations Brett Maas, Managing Director Tel (646) 536-7331 brett@haydel ny HireQuest Inc: Nasdaq: HO!
Slide 22: Appendix
Appendix uP na HIREQUEST
Slide 23: Board of Directors
Board of Directors ‘+ Founder of HireQuest. Richard Hermanns Chairman _* Neatly 30 years of experience in the staffing industry * Former CFO of Outsource international. ‘= President Tri-City Electrical Contractors, Inc. 37 years of experience in electrical construction, ‘Past President of Gulf Coast
Slide 24: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Sin thousands Net Income to Adjusted EBITDA Net Income Interest Depreciation & Amortization Taxes EBITDA ‘Stock-based Compensation Allowance for Losses on Notes Receivable Adjusted EBITDA’ 1) Non Hal standalone res for 2020.06 | For the Trailing Twelve Mo
Slide 25: Pro Forma Historical System-Wide Sales
Pro Forma Historical System-Wide Sales Sin thousands Pro Forma System-Wide Sales 2020 2019 HireQuest! $ 210,917 $ 292,309 Snelling” 66,136 91,436 Link? 48,356 54,537 Pro Forma Franchised System-Wide Sales $ 325,409 $ 438,282 Licensed California Locations* 18,600 26,870 Total Pro Forma Franchised & L