HireQuest (NASDAQ: HQI) reported Q4 EPS of $0.28. Revenue for the quarter came in at $5.9 million.

Fourth Quarter 2019 Financial Summary

• Franchise royalties increased 65.8% to $5.4 million compared to the quarter ended December 31, 2018. Of this increase, 26.2% related to branches acquired in the merger and subsequently sold and converted to our franchise model.
• Services revenue, which includes interest paid on aging accounts, increased 69.8% to $476,000 over the same period last year. Of this increase, 1.2% was merger related.
• Total revenue increased 66.1% to $5.9 million compared to $3.5 million in the prior year period. Of this increase, 24.1% was merger related.
• Income from continuing operations was $3.8 million, or $0.28 per diluted share, compared to $2.2 million, or $0.22 per diluted share, in the year-ago period.
• Income from continuing operations included approximately $545,000 in expenses related to the merger.

“The $3.8 million in income from continuing operations on total revenue of $5.9 million in the fourth quarter reflects the true earnings and cash generating potential of our business as we turn the page on our transition to a 100% franchise business model,” commented Rick Hermanns, HireQuest’s President and Chief Executive Officer. “On the basis of these results, we believe that our franchise model is self-sustaining and provides us with incremental cash flows to further strengthen our balance sheet. With more than $4 million in cash reserves, zero debt and a cash-flow generative business model, we are well-capitalized and well-positioned to selectively pursue opportunities that may arise in what may become an increasingly volatile economy.

“As we enter 2020, our transition is complete, our company has an operating infrastructure that is appropriately aligned to support our existing franchisees and their respective businesses,” continued Mr. Hermanns. “We are confident in the long-term prospects for the company given our proven and effective business model, despite near-term challenges that we and our franchisees face as we navigate uncertainties related to the coronavirus pandemic and the resulting economic volatility.”

For earnings history and earnings-related data on HireQuest (HQI) click here.