Hirequest, Inc. · NASDAQ:HQI
Hirequest — Investor Presentation (November 2021)
23 slides from Hirequest's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation November 2021
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: 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 Over 220 franchised and licensed offices in 36 states and the Distr
Slide 4: Building Momentum in 2021
Building Momentum in 2021 HireQuest continues to execute its core strategies and take advantage of opportunities to fuel growth COMPLETED TWO TRANSFORMATIVE ANOUNCED ACQUISITION OF 10 NEW ORGANIC ACQUISITIONS: SNELLING and LINK DENTAL POWER STAFFING FRANCHISE LOCATIONS Two acquisitions instantly s
Slide 5: Leading Platform of Franchised Staffing Services
Leading Platform of Franchised Staffing Services Profitable, Franchise-centric model, yields substantial operating leverage as the business grows; HireQuest’s portfolio of B2B franchise offerings services over 6,000 clients across 36 states and the District of Columbia Offers flexible labor soluti
Slide 6: Coast-to-Coast Coverage
Coast-to-Coast Coverage More than 220 franchised and licensed offices located in healthy job markets across 36 states and the District of Columbia 8 Strong concentration of branches 7 in established and emerging 4 regions 1 1 1 4 Regional branch concentrations 3 1 allow for greater local brand 2
Slide 7: Investor Highlights
Investor Highlights Leading platform of franchised staffing services - 220+ franchised and licensed locations across the U.S. Differentiated franchisor model – higher margins and less volatility than non-franchised staffing companies Asset light, scalable operations producing multiple recurring reve
Slide 8: Value Proposition
Value Proposition HireQuest’s differentiated franchisor model provides value to all stakeholders For our Candidates For our Customers Convenient one-stop shop that matches Trusted name with a national footprint qualified candidates with available work Flexibility to meet staffing needs allowin
Slide 9: 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 10: 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 HireQuest’s office-level operating margins are typically 150 to 350 basis points higher than our Illustrative Reve
Slide 11: Recent Acquisitions Increase HQI's Total Addressable Market
Recent 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 $161B staffing and recruiting market… IT 11% IT 11% Health Care Health Care 8% 8% Ligh
Slide 12: Large Market with Positive Tailwinds
Large Market with Positive Tailwinds Staffing & Recruiting Historical Revenue ($ in billions) While the pandemic depressed economic activity in 2020, $175 similarly to the recession in 2008 – 2009, temporary and $162 contract staffing is expected to see strong growth as the $161 $160 $156 economy
Slide 13: Well-Positioned for the Future
Well-Positioned for the Future 1 Scale combined with unique royalty business model are expected to drive profitable growth in National Accounts Significantly expanded footprint increases relevance to many potential national and global customers Increase National Royalty-driven revenue model pa
Slide 14: Enterprise Value
Enterprise Value $ in millions, except price per share Unaudited Stock price (as of close 11/12/2021) $ 23.00 Shares outstanding1 13,735,096 Equity Market Cap (as of close 11/12/2021) $ 315.9 Plus: Debt2 3.1 Less: Cash2 4.8 Less: Notes Receivable Net of Reserve2 4.3 Enterprise Value3 $ 309.9 1) As o
Slide 15: Statement of Operations
Statement of Operations $ in thousands Three months ended 9/30/2021 9/30/2020 1 System-Wide Sales $ 99,625 $ 55,627 Total Revenue 6,881 3,383 SG&A Expense 3,044 1,358 Depreciation & Amortization 366 32 Total Operating Income 3,471 1,993 Total Other Income 90 393 Interest Expense (42) (10) Pre-tax In
Slide 16: Balance Sheets
Balance Sheets $ in thousands 9/30/2021 12/31/2020 Cash $ 4,789 $ 13,667 Accounts Receivable - Trade 38,434 21,344 Total Current Assets 46,713 38,969 Net Property and Equipment 3,848 3,193 Franchise Agreements 19,180 - Total Assets 74,758 49,095 Term Note Payable 210 - Due to Franchisees 7,306 3,229
Slide 17: 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 18: 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 19: 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@haydenir.com Nasdaq: HQI 18
Slide 20: Appendix
Appendix peg HiREQuEsT INC:
Slide 21: Board of Directors
Board of Directors Name Relevant Experience Founder of HireQuest. Richard Hermanns Nearly 30 years of experience in the staffing industry. Chairman Former CFO of Outsource International. President Tri-City Electrical Contractors, Inc. Jack A. Olmstead 37 years of experience in electrical c
Slide 22: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure $ in thousands Net Income to For the Trailing Twelve Months (TTM) Adjusted EBITDA1 ended September 30, 2021 Net Income $ 11,012 Interest 77 Taxes 495 Depreciation & Amortization 1,097 EBITDA $ 12,682 Stock-based compensation 1,690 Acquisition-related expe
Slide 23: Pro Forma Historical System-Wide Sales
Pro Forma Historical System-Wide Sales $ in thousands Pro Forma System-Wide Sales 2020 2019 HireQuest1 $ 210,917 $ 292,309 Snelling2 66,136 91,436 Link3 48,356 54,537 Pro Forma Franchised System-Wide Sales $ 325,409 $ 438,282 Licensed California Locations4 18,600 26,870 Total Pro Forma Franchised &