HireQuest Q1 revenue up 19%; franchise royalties rise


First-quarter revenue rose 18.7% at HireQuest Inc. (NASDAQ: HQI), a franchisor of staffing firms, but net income fell 49.0% at the Goose Creek, South Carolina-based company.

  Q1 2020 Q1 2019 % change
Revenue $4,119,981 $3,472,250 18.7%
Net income $875,178 $1,717,484 -49.0%

Franchise royalties rose 17.4% to $3.7 million.

HireQuest noted it placed a reserve of $1.4 million on notes receivable issued to finance the sale of offices acquired in its merger with Command Center. The move came as a result of Covid-19’s negative impact on the economy.

Share price and market cap

Shares in HireQuest were down 4.15% to $6.45 as of 11:55 a.m. Eastern time; the company had a market cap of $91.2 million, according to FT.com.