GOOSE CREEK, SC - HireQuest Inc. (NASDAQ:HQI), a franchisor of staffing services, announced that its Board of Directors has approved a quarterly dividend of $0.06 per share. The dividend will be distributed to shareholders on record as of December 2, 2024, with the payment date set for December 16, 2024.
The company, which operates a nationwide network of over 400 franchised offices, provides employment to approximately 73,000 individuals annually across various industries, including construction, light industrial, manufacturing, hospitality, clerical, medical, travel, financial services, and event services.
HireQuest has cautioned that the payment of this dividend is subject to the Board not revoking it before the payment date. The declaration of future dividends will depend on the company's financial performance, cash needs, and the Board's approval each quarter. The Board's decision to declare or pay future dividends also hinges on several potential risks and uncertainties, including changes in the company's cash flow, legal compliance, financing arrangement restrictions, tax law changes, the company's financial condition, and other factors that may arise.
These forward-looking statements, which reflect management's current expectations for future events, are based on assumptions and current market conditions. However, there can be no assurance that future dividends will be declared. The company has also noted that these statements involve risks and uncertainties and that actual results could differ materially from those anticipated.
HireQuest's filings with the Securities and Exchange Commission provide further details on factors that could affect its financial results and dividend payments. The company has stated it will not undertake any obligations to update these forward-looking statements unless required by law.
This announcement is based on a press release statement from HireQuest Inc.
In other recent news, HireQuest, Incorporated reported a 1.6% rise in revenue to $9.4 million and a 29% increase in adjusted net income to $2.8 million in its latest earnings call. Despite facing economic challenges, the company also saw a 3.6% year-over-year increase in system-wide sales. These developments were attributed to a significant decrease in workers' compensation and SG&A expenses which led to improved profitability.
CEO Rick Hermanns expressed optimism about HireQuest's future, highlighting improving market conditions and strategic acquisitions in the staffing sector as key drivers. The company's resilience and strategic focus on cost reduction were also noted.
In the same vein, HireQuest announced the completion of two acquisitions in the quarter while exploring further opportunities in commercial and on-demand staffing. These are the latest developments in the company's ongoing efforts to strengthen its market presence and capitalize on commercial and on-demand staffing opportunities. Despite a one-time non-cash impairment charge related to the MRI Network acquisition, the company maintains a strong working capital position with current assets rising to $58 million.
InvestingPro Insights
Adding to HireQuest Inc.'s (NASDAQ:HQI) recent dividend announcement, InvestingPro data reveals some interesting financial metrics that provide context to the company's performance and valuation.
As of the latest data, HireQuest boasts a market capitalization of $203.98 million. The company's price-to-earnings (P/E) ratio stands at 138.49, which is notably high. However, when adjusted for the last twelve months as of Q3 2024, the P/E ratio drops to a more modest 15.47, suggesting that recent earnings have improved the company's valuation metrics.
InvestingPro Tips highlight that HireQuest operates with a moderate level of debt and that its liquid assets exceed short-term obligations. These factors could contribute to the company's ability to maintain its dividend payments, as announced.
The company's revenue for the last twelve months as of Q3 2024 was $36.28 million, with a slim revenue growth of 0.28% over the same period. Despite this modest top-line growth, HireQuest managed to achieve an impressive operating income margin of 30.65%, indicating efficient cost management.
An InvestingPro Tip notes that HireQuest has been profitable over the last twelve months, which aligns with the company's decision to continue dividend payments. Additionally, analysts predict that the company will remain profitable this year, which could further support its dividend policy.
For investors interested in dividend yield, HireQuest offers a 1.63% yield as of the latest data. The company has also shown strong recent performance, with a significant 9.2% return over the last week and a 24.79% return over the past six months.
These insights from InvestingPro provide a more comprehensive view of HireQuest's financial health and market performance, complementing the dividend announcement. For readers seeking more in-depth analysis, InvestingPro offers additional tips and metrics that could be valuable for investment decisions.
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