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HireQuest, Inc. (HQI+1.60%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing indicates total revenue of $9.4 million for the quarter, a 1.6% increase from the same period in the previous year. Franchise royalties contributed $9.0 million to the revenue, with service revenue accounting for $428 thousand.
Operating expenses for the quarter were $12.1 million, up from $7.1 million in the prior year, primarily due to a $6.0 million goodwill and intangible asset impairment charge related to the MRI acquisition.
Net loss for the quarter was $2.2 million, compared to a net income of $1.5 million in the previous year. The loss is attributed to the impairment charge and a decrease in system-wide sales.
The company reported a decrease in workers' compensation expense to $499 thousand, down from $1.5 million in the same quarter last year.
Interest income for the quarter was $138 thousand, up from $83 thousand in the previous year, while interest and other financing expenses decreased to $268 thousand from $302 thousand.
HireQuest's effective tax rate for the quarter was 25.1%, compared to 24.5% in the previous year, influenced by the federal Work Opportunity Tax Credit.
The company continues to focus on its acquisition strategy, having acquired TEC, The Employment Company, for $9.8 million, expanding its presence in Arkansas.
HireQuest acknowledges a material weakness in its internal controls over financial reporting due to insufficient accounting resources for handling technical accounting issues.
The company operates 416 franchisee-owned offices and 1 company-owned office across 43 states, the District of Columbia, and 13 countries outside the United States.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HireQuest, Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.