HireQuest, Inc. (NASDAQ:HQI) Q4 2023 Earnings Call Transcript

In absence of — really in absence of either a shift away from temporary workers, which may be part — again, which I would call it the Peloton effect or it’s just the way things have been. Again, it was just that surge in demand and unquestionably, 2022 was an incredible year for temporary staffing simply because nobody could find employees. And so it’s — and maybe it’s just a decrease off of a fall high, that’s a possibility. And like I said, it could be explained within how the numbers are because again, because then you would go back and ask that question, but unemployment hasn’t gone up that much. Why in the world, are you down 10%?

Mike Baker: Yes, got it. Makes sense. Appreciate the call.

Rick Hermanns: Sure.

Operator: Okay. We have no further questions in queue. I’d like to turn the floor back to management for any closing remarks.

Rick Hermanns: Well, again, I want to thank each of you for joining us today. The economy remains a challenge for the staffing industry. And as I alluded to, the first quarter isn’t shaping up significantly better. But I think that one of the important parts in my remarks to just keep in perspective is that, since the beginning of 2021, we have grown — we’ve done $76 million of acquisitions, $400 million increase in system-wide sales. And keeping in mind that $400 million into ’23, which was actually a relatively weak year, and yet we retain only a little more than $13 million of debt on our balance sheet. And so we are generating nice amounts of cash flow. And while many of our peers have lost money in ’23, we remain profitable the same way we did during the pandemic, and we’re set up great for the future.

And so we appreciate your continued interest in the company and your continued partnership with us. And so with that, I want to again thank you and look forward to speaking to you in another six or eight weeks. Thanks a lot.

Operator: Thank you. This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.