HireQuest Inc. (NASDAQ: HQI), a national staffing provider and franchisor, reported revenue jumped 139.3% in the first quarter.
Revenue from franchise royalties alone rose 101.7% year over year; the increase was 29.9% excluding the effect of acquisitions.
Systemwide sales were $101.0 in the first quarter, up 80.0% year over year.
| (US$ thousands) | Q1 2022 | Q1 2021 | % change |
| Revenue | $8,145 | $3,403 | 139.3% |
| Gross margin | 90.6% | 100.0% | |
| Net income | $603 | $3,742 | -83.9% |
“During the quarter we completed three acquisitions,” HireQuest President and CEO Rick Hermanns said.
“The staffing division of dmDickason adds three locations, expanding our franchise base in West Texas and New Mexico,” Hermanns added. “The Dubin Group and Dubin Workforce Solutions mark our entry into Pennsylvania. Northbound Executive Search adds New York to our map and expands HireQuest’s franchise offerings into the higher margin executive placement vertical.”
Revenue by business line
| (US$ thousands) | Q1 2022 | Q1 2021 | % change |
| Franchise royalties | $6,573 | $3,259 | 101.7% |
| Staffing revenue, owned locations | $1,104 | – | nm |
| Service revenue | $468 | $144 | 225.0% |
However, Hermanns noted the company realized $3.6 million in expenses with the partial conversion of the acquisitions to franchises. That expense cut into the bottom line.
Share price and market cap
Shares in HireQuest edged down 0.50% to $15.92 as of 12:05 p.m. Eastern time today; this was 11.64% above the 52-week low of $14.26 set on May 4, 2022, according to FT.com. The company had a market cap of $203.08 million.