Hirequest, Inc. · NASDAQ:HQI
Hirequest — Investor Presentation (September 2021)
23 slides from Hirequest's investor presentation, Sep 21, 2021
Slide 1: Investor Presentation September 2021
Investor Presentation September 2021 oa HIREQUEST INC.
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 US. Private Securities Lit
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 a HiIREQUEST I NC. industry = Profitable franchise-centric model +: Ovet 220 franchised and lieensed offices in 36s
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 ACQUISITIONS: SNELLING and LINK LAUNCHED DriverQuest FRANCHISE OFFERING * Two acquisitions instantly scaled HireQuest's offerings in the tradit
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 service over 6,000 clients across 36 states and the District of Columbia On-demand Staffing Commercial S
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 We, 2 censeaorices Strong concentration of branches in established and emerging regions Regional branch concentrations allow for greater local brand reco
Slide 7: Investor Highlights
Investor Highlights VY Leading platform of franchised staffing services - 220+ franchised and licensed locations across the U.S. J Differentiated franchisor model - higher margins and less volatility than non-franchised staffing companies / Asset light, scalable operations producing multiple recurri
Slide 8: 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 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 frorn Franchisees for the support services including: California: f
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... we HigeQuest’ SNELLING HyHigeQuest UPHineQuesr
Slide 12: 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 13: 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 re
Slide 14: Enterprise Value
Enterprise Value $ in millions, except price per share se Stock price (as of close 8/6/2021) $21.24 ‘Shares outstanding’ 13,640,074 Equity Market Cap (as of close 8/6/2021) $289.7 Plus: Debt 3.2 Less: Cash? 22 Less: Notes Receivable Net of Reserve” 48 Enterprise Value® $ 285.9 Hf Hirequest Inc. Nasd
Slide 15: Statement of Operations
Statement of Operations $ in thousands LEE EE ‘System-Wide Sales 88,700 44,100 Total Revenue 5,706 2,901 ‘SG8A Expense 2,041 4,931 Depreciation & Amortization 366 32 Total Operating Income 3,300 938 Total Other Income 126 289 Interest Expense (20) (18) Pre-tax Income 3,406 1,208 Income Taxes 686 51
Slide 16: Balance Sheets
Balance Sheets $ in thousands er Cash $ 2,205 $ 13,667 ‘Accounts Receivable - Trade 35,056 21,344 Total Current Assets 41,150 38,969 Net Property and Equipment 3,837 3,193 Franchise Agreements 19,511 E Total Assets 69,719 49,095, Term Note Payable 98 = Due to Franchisees 5,396 3,229 Risk Management
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 Ml 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 ff Hirequest Inc. 8
Slide 20: Appendix
Appendix oa HIREQUEST INC.
Slide 21: Board of Directors
Board of Directors Founder of HireQuest Renecs Herinenns + Nearly 30 years of experience in the staffing industry. Chairman + Former CFO of Outsource International + President Tri-City Electrical Contractors, ine Bache ened + 37 years of experience in electrical construction. Director + Past Preside
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) Net Income $ 9,789 Interest 45 Taxes 574 Depreciation & Amortization 764 EBITDA $ 11,172 ‘Stock-based Compensation 1,231 Acquisition-related Expenses 1,537 Acquisition-related Misc. Income (
Slide 23: Pro Forma Historical System-Wide Sales
Pro Forma Historical System-Wide Sales $in thousands Pro Forma System-Wide Sales 2020 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 & Licen