HireQuest, Inc. Closes Acquisition of TEC Staffing Services

GOOSE CREEK, SC / ACCESSWIRE / December 4, 2023 / HireQuest, Inc. (Nasdaq:HQI), a national franchisor of direct dispatch, executive search, and commercial staffing services, today announced that it has closed the acquisition of TEC Staffing Services ("TEC") (tecjobs.net), headquartered in Fort Smith, Arkansas. Simultaneously with the closing of the acquisition, HireQuest closed the sale of all TEC's offices throughout Northwest and Central Arkansas to franchisees and completed their conversion to HireQuest's Snelling franchise model. TEC generated over $34 million in total revenue for the trailing 12-month period ended September 30, 2023.

Rick Hermanns, President and Chief Executive Officer of HireQuest, commented, "TEC has been a premier provider of staffing services to the employers and workers in Northwest and Central Arkansas for over 40 years. We have some great teams of our existing franchisees partnering with members of TEC's leadership and we're excited for the opportunity they have to continue serving the region as part of the Snelling franchise family."

HireQuest's current operating infrastructure is sufficient to support the acquired offices and the Company expects any incremental SG&A expense in the fourth quarter of 2023 and beyond to be minimal. As with past acquisitions where HireQuest converts acquired operations to franchises, the company recognizes either a one-time accounting loss or a one-time accounting gain in the period that it sells those operations to a franchisee. HireQuest anticipates it is likely to recognize a notable one-time accounting loss resulting from the conversion of TEC's operations to franchises in the fourth quarter of 2023.

About HireQuest

HireQuest, Inc. is a nationwide franchisor of direct dispatch, executive search, and commercial staffing solutions for HireQuest Direct, HireQuest, Snelling, HireQuest Health, DriverQuest, TradeCorp, MRINetwork, SearchPath Global, and Northbound Executive Search franchised offices across the United States. Through its national network of over 400 franchisee-owned offices across the United States, HireQuest provides employment for approximately 81,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, clerical, medical, travel, financial services, 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; our staffing needs and corporate headcount; future revenue or sales and the growth thereof; operating results; anticipated benefits of the acquisition of TEC, the transition of TEC's operations to franchised offices, effects of expanded scale, or the status of integration of TEC's operations. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. While the company believes these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. The company cannot assure you that these expectations will occur, and its actual results may be significantly different because of various risks and uncertainties discussed in the "Risk Factors" section and elsewhere in the company's most recent Annual Report on Form 10-K and subsequent filings with the SEC. Any forward-looking statement made by the company or its management in this news release is based only on information currently available to the company and speaks only as of the date on which it is made. The company and its management disclaim any obligation to update or revise any forward-looking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise, except as required by law.

Company Contact:

HireQuest, Inc.
David Hartley, Vice President 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.