HireQuest Inc. (NASDAQ: HQI), a staffing franchisor based in Goose Creek, South Carolina, reported that while Covid-19 continues to impact business, franchisees have been moving quickly to minimize the effects.
It reported fourth-quarter revenue was down 40.2% year over year.
“The decrease in attendance at sporting events, and the elimination of concerts, auto auctions, and other major events continues to have a pronounced impact on our franchises,” President and CEO Rick Hermanns said. “To date, our franchisees have moved quickly and judiciously to minimize the impact and navigate these unprecedented challenges.”
| Q4 2020 | Q4 2019 | % change | |
| Franchise royalties | $3,229,658 | $5,396,922 | -40.2% |
| Service revenue | $175,817 | $475,748 | -63.0% |
| Total revenue | $3,405,475 | $5,872,670 | -42.0% |
| Net income | $1,356,100 | $3,462,831 | -60.8% |
Hermanns noted the impact on HireQuest’s bottom line has been less pronounced given the company’s asset-light nature.
Recently, HireQuest also recently announced acquisitions of Snelling Staffing and certain offices of Link Staffing.
Full-year results
| 2020 | 2019 | % change | |
| Franchise royalties | $12,792,793 | $14,673,636 | -12.8% |
| Service revenue | $1,016,332 | $1,202,824 | -15.5% |
| Total revenue | $13,809,125 | $15,876,460 | -13.0% |
| Net income | $5,359,414 | ($289,979) | nm |
Share price and market cap
Shares in HireQuest were up 0.46% to $17.30 as of 12:57 p.m. Eastern time and had reached a new 52-week high during trading so far, according to FT.com. The company had a market cap of $233.9 million.