HireQuest(HQI) - 2024 Q3 - Quarterly Results

Financial Performance - Franchise royalties increased by 0.9% to $9.0 million compared to $8.9 million in the prior year period[2] - Total revenue increased by 1.6% to $9.4 million compared to $9.3 million in the prior year period[2] - SG&A expenses decreased by 15.3% to $5.4 million compared to $6.4 million in the prior year period[2] - Net loss was $(2.2 million), or $(0.16) per diluted share, compared to net income of $1.5 million, or $0.11 per diluted share in the prior year period[11] - Adjusted net income for the quarter was $2.8 million, or $0.20 per diluted share, compared to adjusted net income of $2.2 million, or $0.16 per diluted share in the third quarter of 2023[11] - Adjusted EBITDA was $4.9 million compared to $3.7 million in the prior year period[12] - Total revenue for the three months ended September 30, 2024, was $9,416 thousand, a 1.6% increase from $9,271 thousand in the same period of 2023[31] - Net loss for the three months ended September 30, 2024, was $(2,207) thousand, compared to net income of $1,483 thousand for the same period in 2023[31] - Adjusted EBITDA for the nine months ended September 30, 2024, was $12,324 thousand, compared to $12,194 thousand for the same period in 2023[32] - Adjusted net income for the three months ended September 30, 2024, was $2,787 thousand, compared to $2,153 thousand for the same period in 2023[33] - Basic loss per share from continuing operations for the three months ended September 30, 2024, was $(0.16), compared to $0.12 for the same period in 2023[31] Sales and Royalties - System-wide sales for the third quarter of 2024 decreased by 1.7% to $148.6 million compared to $151.2 million for the same period in 2023[4] - Year-to-date franchise royalties decreased by 7.4% to $25.0 million compared to $27.0 million for the nine months ended September 30, 2023[3] - Franchise royalties for the three months ended September 30, 2024, were $8,988 thousand, compared to $8,905 thousand in the same period of 2023[31] Assets and Liabilities - Cash was $1.6 million as of September 30, 2024, compared to $1.3 million as of December 31, 2023[17] - Total current assets increased to $58,043 thousand as of September 30, 2024, from $51,453 thousand as of December 31, 2023[30] - Total liabilities decreased to $39,745 thousand as of September 30, 2024, from $41,094 thousand as of December 31, 2023[30] - Cash balance increased to $1,621 thousand as of September 30, 2024, from $1,342 thousand as of December 31, 2023[30] Impairment and Economic Outlook - Goodwill and intangible asset impairment charge for the three months ended September 30, 2024, was $6,035 thousand[31] - The company is optimistic about entering a more favorable economic environment for staffing solutions as demand strengthens[7]