Q3 2024 Hirequest Inc Earnings Call Transcript
Key Points
- HireQuest Inc (HQI) achieved a slight growth in total revenue in Q3 2024 compared to Q3 2023, with an 8.5% sequential revenue growth from Q2 2024.
- System-wide sales for temporary staffing brands grew by 3.6% year over year, marking the first growth since Q1 2023.
- SG&A expenses were reduced by over 15% in Q3 2024 compared to Q3 2023, demonstrating effective expense management.
- Workers' compensation expenses decreased nearly 67% in Q3 2024 compared to Q3 2023, positively impacting profitability.
- Adjusted net income in Q3 2024 increased by 29% compared to Q3 2023, excluding a one-time non-cash impairment charge.
- The staffing industry faced a difficult environment due to cautious hiring decisions influenced by the Presidential election and an unpredictable economic landscape.
- The influx of undocumented workers impacted the lower-tier labor force, affecting the types of jobs HireQuest Inc (HQI) staffs.
- A one-time non-cash impairment charge of over $6 million related to MRI network assets significantly impacted profitability in Q3 2024.
- System-wide sales decreased due to a decline in professional recruiting and staffing brands, partially offset by an increase in temporary staffing sales.
- The permanent placement and executive recruiting market faced industry-wide challenges, leading to a downturn in MRI network performance.
Good afternoon, everyone and welcome to Hirequest Incorporated's third quarter, 2024 earnings call. At this time, all participants have been placed on a listen-only mode and we will open for questions following the presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, John Nesbitt, I MS Investor Relations, John, the floor is yours.
Thank you operator. I'd like to welcome everyone to the call. Hosting the call today are Hirequest, Chief Executive Officer Rick Hermans and Chief Financial Officer Steve Crane. I would like to take a moment to read the Safe Harbor statement. This conference call contains forward-looking statements as defined within this within section 27 A of the Securities Act of 1,933 as amended and section 21 E of the Securities Exchange Act of 1,934.
As amended these forward-looking statements and terms such as
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