HireQuest, Inc. (NASDAQ:HQI) Q1 2023 Earnings Conference Call May 11, 2023 4:30 PM ET

Company Participants

John Nesbett - Investor Relations-IMS

Rick Hermanns - President and Chief Executive Officer

David Burnett - Chief Financial Officer

Conference Call Participants

Kevin Steinke - Barrington

Matthew Hayes - D.A. Davidson

Mike Albanese - EF Hutton

Aaron Edelheit - Mindset Capital

Operator

Good afternoon everybody. And welcome to the HireQuest Incorporated First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to your host, John Nesbett, Investor Relations. John, over to you.

John Nesbett

Thank you. And good afternoon. I would like to welcome everyone to the call. Hosting the call today are HireQuest’s Chief Executive Officer, Rick Hermanns; and Chief Financial Officer, David Burnett.

Let’s take a moment to read the Safe Harbor statement. This conference call contains forward-looking statements as defined within Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements in terms, such as anticipate, expect, intend, may, will, should, or other comparable terms involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief, or current expectations of HireQuest and members of its management, as well as the assumptions on which such statements are based.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties including those described in HireQuest’s periodic reports filed with the Securities And Exchange Commission and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, HireQuest undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

I would now like to turn the call over to the CEO of HireQuest, Rick Hermanns. Go ahead Rick.

Rick Hermanns

Thank you for joining us for today’s call. To begin with I will provide an overview of the financial and strategic highlights for the quarter. And then David will share more details surrounding our first quarter results.

Our first quarter results were driven by strong performance at our organic locations in the integration of strategic, accretive acquisitions into our business. Total revenue grew 40% to $9.9 million with franchise royalties increasing 41.8% to $9.3 million.