The following is a summary of the HireQuest, Inc. (HQI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• HireQuest reported a third-quarter total revenue of $9.4 million, a slight increase from $9.3 million in Q3 2023.

• Adjusted net income for Q3 2024 was $2.8 million, up from $2.2 million in Q3 2023.

• Adjusted EBITDA for the quarter increased to $4.9 million from $3.7 million in Q3 2023, reflecting an improved EBITDA margin of 52% compared to 40% in the previous year.

• SG&A expenses decreased by 15.3% to $5.4 million, reflecting effective cost control, particularly in workers' compensation expenses, which dropped nearly 67% year-over-year.

Business Progress:

• HireQuest has seen growth in system-wide sales for temporary staffing brands, indicating a stabilizing market.

• The company is making strategic adjustments by writing down non-cash assets related to the MRI Network to better reflect its fair value, amidst facing industry-wide downturns in permanent placement and executive recruiting.

Opportunities:

• There is potential for revenue growth from both temporary and permanent staffing as markets stabilize post-election.

• HireQuest sees the possibility of increasing system-wide sales without significant cost increases due to existing underutilized capacity.

Risks:

• The permanent staffing segment continues to face industry-wide challenges, which has led to a downturn lasting several quarters.

More details: HireQuest IR

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