HireQuest, Inc. (NASDAQ:HQI) Q2 2022 Results Conference Call August 9, 2022 4:30 PM ET

Company Participants

Jennifer Belodeau - IMS Investor Relations

Richard Hermanns - President and Chief Executive Officer

David Burnett - Chief Financial Officer

Conference Call Participants

Mike Baker - D.A. Davidson

Aaron Edelheit - Mindset Capital

Kevin Steinke - Barrington Research

Operator

Good afternoon, ladies and gentlemen, welcome to the HireQuest Incorporated Second Quarter 2022 Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Jennifer Belodeau. The floor is yours.

Jennifer Belodeau

Thank you, operator. I would like to welcome everybody to the call. Hosting the call today are HireQuest's CEO, Rick Hermanns; and CFO, David Burnett. I'll 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 ended 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 or other comparable terms involve risks and uncertainties because they relate to 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 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.

With that out of the way, I'll now turn the call over to the CEO of HireQuest, Rick Hermanns. Go ahead, Rick.

Richard Hermanns

Thank you for joining us for today's call. To begin with, I will provide an overview of financial and strategic highlights for the quarter, and then David will share more details surrounding our second quarter results. This was a very strong quarter for us across the board. We continue to see revenue growth both from recent acquisitions and organically from our existing franchisees.

Franchise royalties grew 32.5% to $7.2 million, and organic franchise royalties grew 40.7% compared to the second quarter of 2021. Overall, total revenues increased by 62.8% to $9.3 million compared to the prior year period. Keep in mind that last year's Q2 was still impacted by the pandemic, making for a favorable comparison. But nonetheless, this was an exceptional quarter.