HireQuest, Inc. (NASDAQ:HQI) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET

Company Participants

John Nesbett – IMS Investor Relations

Rick Hermanns – Chief Executive Officer

David Burnett – Chief Financial Officer

Conference Call Participants

Mike Baker – D.A. Davidson

Kevin Steinke – Barrington Research

Mike Albanese – EF Hutton

Aaron Edelheit – Mindset Capital

Operator

Good afternoon, ladies and gentlemen, and welcome to today’s HireQuest Inc. Third Quarter 2022 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, John Nesbett of IMS Investor Relations. John, the floor is yours.

John Nesbett

Thank you, and good afternoon. I’d like to welcome everyone to the call. Hosting the call today are HireQuest’s CEO, Rick Hermanns; and Chief Financial Officer, David Burnett. I’d like 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 in 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 and 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 higher periodic reports filed with the SEC 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 CEO of HireQuest, Rick Hermanns. Go ahead, Rick.

Rick Hermanns

Thank you for joining us for today’s call. To begin, I’ll provide an overview of the financial and strategic highlights for the quarter, then David will share more details surrounding our third quarter results. This was a very strong quarter for us in which we saw continued revenue growth. Franchise royalties increased 13.7% to $7.4 million, excluding acquisitions made in 2022, royalty growth was 7.3%.