Hirequest, Inc. · NASDAQ:HQI
Hirequest — Investor Presentation (May 2021)
24 slides from Hirequest's investor presentation, May 17, 2021
Slide 1: Investor Presentation May 2021
Investor Presentation May 2021 ea HIREQUEST ! Nc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and other documents referenced heréin 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: Who We Are
Who We Are * Nationwide franchisor of on-demand and commercial staffing solutions in the light industrial, blue-collar, medical, cletical, and executive search segments of the staffing ot H I REQUEST l NC. : . Industry * Profitable franchise-centiric model * Over 215 franchised and licensed offices
Slide 4: Combined Company with Significantly Increased Scale and Scope
Combined Company with Significantly Increased Scale and Scope Pe HiREQUEST System! Sales $344M (2020) Locations! +215 Locations 36 States! and the District of Columbia On-Demand Staffing Commeréial Offerings Clerical Perm Placement Medical pa HireQuest $211M ~140 30+ On-Demand Commercial SNELLING 4
Slide 5: 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 (— 5) franchise oppor
Slide 6: 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 $161B staffing and recruiting market... HiREQUEST SNELLING HirEQuesT Pd HireQuesT wv HirEQuEs
Slide 7: 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 = Strong concentration of branches “in established and emerging regions * Regional branch concentrations allow for greater local brand recognition = Mult
Slide 8: 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 9: Investor Highlights
Investor Highlights 4 Leading platform of franchised staffing services - 215+ franchised and licensed locations across the U.S. VY Differentiated franchisor model - higher margins and less volatility than non-franchised staffing companies VY Asset light, scalable operations producing multiple recurr
Slide 10: Value Proposition
Value Proposition HireQuest’s differentiated franchisor model provides value to all stakeholders Convenient one-stop shop that matches qualified candidates with available work Flexible schedules and benefits for qualifying employees Same-day pay on convenient electronic pay cards for on-demand tempo
Slide 11: Compelling Revenue Model
Compelling Revenue Model Multiple recurring revenue streams provide stability Franchise Royalties License Fees Service Revenues = Royalty from Franchisees for back-office = Trademark license fees from locations in = Interest from Franchisees for the support services including: California: following
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 (Operating margin as a % of revenue) Competitor HireQuest mm™mRevenue ——Operating Margin
Slide 13: Well-Positioned for the Future
Well-Positioned for the Future Increase National Accounts Add Franchisees and Expand Geographically Grow New Verticals / Offerings Acquisitions x 4 Scale combined with unique royalty business model are expected to diive profitable growth in National Accounts Significantly expanded footprint increase
Slide 14: Large Market with Positive Tailwinds
Large Market with Positive Tailwinds Staffing & Recruiting Historical Revenue (Sin billions) $175 «= 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 $162 $161 $160 $156 economy
Slide 15: Enterprise Value
Enterprise Value $ in millions, except price per share Stock price (as of close 5/14/2021) $ 19.24 Shares outstanding’ 13,610,074 Equity Market Cap (as of close 5/14/2021) $ 261.9 Plus: Debt® 0.0 Less: Cash* 2.0 Less: Notes Receivable Net of Reserve” 41 Enterprise Value® $ 255.8 py HireQuest Inc: Na
Slide 16: Statement of Operations
Statement of Operations $ in thousands Three months ended 3/31/2021 3/31/2020 ‘System-Wide Sales $ 54,300 $ 56,500 Total Revenue 3,403 4,120 SG&A Expense 3,842 3,253 Depreciation & Amortization 333 32 Total Operating Income (772) 835 Total Other Income 3,916 251 Interest Expense (5) (11) Pre-tax Inc
Slide 17: Balance Sheets
Balance Sheets $ in thousands 3/31/2021 12/31/2020 Cash $ 1,976 $ 13,667 Accounts Receivable - Trade 29,717 21,344 Total Current Assets 34,533 38,969 Net Property and Equipment 3,432 3,193 Franchise Agreements 19,843 - Total Assets 62,280 49,095 Due to Franchisees 4,231 3,229 Risk Management Incenti
Slide 18: 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 Offic
Slide 19: 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, Ga
Slide 20: Contact Us
Contact Us HireQuest, Inc. Rick Hermanns, CEO MM Springhall Drive Goose Creek, SC 80235 Tel (843) 723-7400 Hayden IR Investor Relations Brett Maas, Managing Director Tel (646) 536-7331 brett@haydenir.com py HireQuest Inc: 19
Slide 21: Appendix
Appendix ea HIREQUEST ! Nc.
Slide 22: Board of Directors
Board of Directors Name R Richard Hermanns le t Experience Founder of HireQuest. Nearly 30 years of experience in the staffing industry. Chairman * Former CFO of Outsource International. * President Tri-City Electrical Contractors, Inc. Jack A: Olmstead « 37years of experience in electrical construc
Slide 23: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure $ in thousands Net Income to For the Trailing Twelve Months (TTM) Adjusted EBITDA’ ended March 31, 2021 Net Income $ 8,226 Interest 43 Taxes (60) Depreciation & Amortization 430 EBITDA $ 8,639 Stock-based Compensation 1,172 Allowance for Losses on Notes R
Slide 24: Pro Forma Historical System-Wide Sales
Pro Forma Historical System-Wide Sales $ in 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 $ 465,152 Total Pro Forma Fr