HireQuest Inc. (NASDAQ: HQI) reported second-quarter revenue fell 10.4% amid the effects of the Covid-19 pandemic. The Goose Creek, South Carolina-based company is a franchisor of staffing firms and operates in the light industrial segment.
“Our franchise-based business model is designed to mitigate risk while maximizing profitability and sustainability even in challenging times, and the benefits of this model were clearly on display in the second quarter,” President and CEO Rick Hermanns said.
| Q2 2020 | Q2 2019 | % change | |
| Revenue | $2,900,990 | $3,238,665 | -10.4% |
| Net income | $1,157,002 | $2,306,096 | -49.8% |
Systemwide sales have increased since April, but they were lower than systemwide sales in the second quarter of 2019, according to HireQuest’s 10-Q filing. It expects the negative impact of Covid-19 on sales to last into the third quarter, and likely beyond. The company noted that its franchisees have closed or consolidated 13 offices since the start of the year due, at least in part, to Covid-19.
Share price and market cap
Shares in HireQuest were up 1.83% to $6.13 as of 12:40 p.m. Eastern time; they were trading 22.60% above their 52-week low. The company had a market cap of $81.5 million.