HireQuest, Inc. Announces Closing of dmDickason Acquisition

Rhea-AI Summary

HireQuest, Inc. (NASDAQ:HQI) has successfully acquired the staffing division of dmDickason Personnel Services, which reported approximately $18 million in system-wide sales in 2021. The acquisition includes two offices in El Paso, Texas, and one in Las Cruces, New Mexico. Following the acquisition, these offices were sold to a franchisee and converted to the Snelling franchise model. This strategic move aims to enhance HireQuest's operational footprint and is expected to provide future growth opportunities.

Positive

• Acquisition of dmDickason's staffing division enhances regional presence in Texas and New Mexico.
• The acquired division generated approximately $18 million in sales, contributing to future revenue growth.

Negative

• Integration risks may arise, potentially complicating operational relationships.
• The anticipated benefits of the acquisition may not be realized within the expected timeframe.

GOOSE CREEK, SC / ACCESSWIRE / January 24, 2022 / HireQuest, Inc. (NASDAQ:HQI), a national franchisor of on-demand, temporary, and commercial staffing services, today announced that it has completed the previously disclosed acquisition of the staffing division of dmDickason Personnel Services, a family-owned company with two offices in El Paso, Texas and one office in Las Cruces, New Mexico. Simultaneously with the closing of the acquisition, HireQuest, Inc. closed on the sale of these offices to a franchisee, and completed the conversion of the three locations to its Snelling franchise model. The dmDickason staffing division generated approximately $18 million in system wide sales in 2021.

About HireQuest

HireQuest, Inc. is a nationwide franchisor that provides on-demand labor and commercial staffing solutions in the light industrial, blue-collar, and commercial segments of the staffing industry for HireQuest Direct, HireQuest, Snelling, and LINK franchised offices across the United States. Through its national network of over 210 franchisee-owned offices in more than 35 states and the District of Columbia, HireQuest provides employment for approximately 60,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, clerical, medical, travel, and event services. For more information, visit www.hirequest.com.

Important Cautions Regarding Forward-Looking Statements

This news release includes, and the company's officers and other representatives may sometimes make or provide certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, among others, statements with respect to future economic conditions, future revenue or sales and the growth thereof; operating results; anticipated benefits of the acquisition of dmDickason's staffing division, conversion of the division to the Snelling franchise model, or the integration of dmDickason's staffing division with HireQuest's operations and the impact of the potential impact of the foregoing on results of operations and financial conditions of HireQuest. All statements other than statements of historical facts contained herein, including the statements identified in the preceding sentence and other statements regarding our future financial position and results of operations, liquidity, business strategy, and plans and objectives of management for future operations, are forward-looking statements. The words "expect," "intend," "anticipate," "will," "believe," "may," "estimate," "continue," "should," "plan," "could," "target," "potential," "is likely," and similar expressions as they relate to the company or dmDickason, are intended to identify forward-looking statements. We have based these forward-looking statements largely on management's expectations and projections regarding future events and financial trends that we believe may affect our financial condition, operating performance, business strategy, and financial needs. These forward-looking statements involve a number of risks and uncertainties.

Important factors that could cause actual results to differ materially from these forward-looking statements include: the possibility that the anticipated benefits of the acquisition will not be realized or will not be realized within the expected time period; the risk that dmDickason's business may not be integrated successfully and disruption from the acquisition may make it more difficult to maintain business and operational relationships; and several other factors.

Further information on risks we face is detailed in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended December 31, 2020, our quarterly reports on Form 10-Q filed since that date, and will be contained in our SEC filings in connection with this acquisition. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligations to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may otherwise be required by law.

Company Contact:

HireQuest, Inc.
David Hartley, Director of Corporate Development
(800) 835-6755
Email: cdhartley@hirequest.com

Investor Relations Contact:

IMS Investor Relations
John Nesbett/Jennifer Belodeau
(203) 972-9200
Email: hirequest@imsinvestorrelations.com

SOURCE: HireQuest, Inc.

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FAQ

What is the significance of HireQuest's acquisition of dmDickason?

The acquisition enhances HireQuest's regional footprint and adds approximately $18 million in sales from the acquired staffing division.

When did HireQuest complete the dmDickason acquisition?

HireQuest completed the acquisition on January 24, 2022.

How will the acquisition impact HireQuest's business model?

The offices acquired will be converted to the Snelling franchise model, expected to drive operational efficiency and growth.

What are the potential risks associated with the dmDickason acquisition?

Key risks include integration challenges and the possibility that anticipated benefits may not be realized promptly.