HireQuest Inc. (NASDAQ: HQI), a staffing franchisor, reported first-quarter revenue rose 40.0% year over year to $9.9 million. The Goose Creek, South-Carolina-based company also reported franchise royalties increased 41.8% to $9.3 million.
“We achieved increases in total revenue, systemwide sales, and net income in the first quarter of 2023 driven by strong organic performance and the integration of strategic and accretive acquisitions,” said Rick Hermanns, president and CEO of HireQuest. “Last quarter, we announced the acquisition of MRINetwork, adding an additional franchise offering for executive search services with over 200 franchise offices in the US and internationally.”
Systemwide sales in the first quarter — total sales generated by franchisees — were $153.5 million, up from $101.0 million, primarily related to the acquisition of MRI.
The company noted that selling, general and administrative expenses in the first quarter rose to $5.8 million from $2.7 million in the first quarter of last year primarily related to its acquisition of MRI.
Share price and market cap
Shares in HireQuest were up 0.77% to $22.48 as of 12:15 p.m. Eastern time; they were 10.02% below its 52-week high, according to FT.com. The company had a market cap of $310.0 million.