HireQuest, Inc. (NASDAQ:HQI) Q4 2019 Earnings Conference Call - Final Transcript

Greetings, and welcome to HireQuest Fourth Quarter and Year-End 2019 Earnings Conference Call. [Operator Instructions] Please note this conference call is being recorded.

I would now like to turn the conference over to your host, Mr. Brett Maas, with Hayden IR. Thank you. You may begin.

Thank you, operator. I'd like to welcome everybody to the call. Hosting the call today are HireQuest CEO, Rick Hermanns; and CFO, Cory Smith.

Please be aware that some of the comments made during our call may include forward-looking statements within the meaning of federal securities laws. Statements about our beliefs and expectations containing words such as may, could, would, will, should, believe, expect, anticipate and similar expressions constitute forward-looking statements. These statements involve risks and uncertainties regarding our operations and future results that could cause HireQuest results to differ materially from management's current expectations. We encourage you to review the safe harbor statements and risk factors contained in the Company's earnings release and in its filings with the Securities and Exchange Commission, including, without limitation, the most recent annual report on Form 10-K, the most recent quarterly report on Form 10-Q and other periodic reports, which identify specific risk factors that also may cause actual results or events to differ materially from those described in forward-looking statements. Copies of the Company's most recent reports on forms 10-K and 10-Q may be obtained on the Company's website at hirequestllc.com or the SEC's website at sec.gov. The Company does not undertake to publicly update or revise any forward-looking statements after the call or the date of this call.

I'd like to remind everyone, this call will be available for replay through April 13, starting at 1:00 p.m. Eastern Time today. A link to the website replay of the call was also provided in the earnings release. It's also available on the Company's website again at hirequestllc.com.

I'd like to now turn the call over to CEO of HireQuest, Rick Hermanns. Rick?

Thank you for joining us. 2019 was an eventful and productive year for HireQuest, culminating with terrific financial results for the fourth quarter, which were made possible by the completion of the merger with Command Center and the conversion of all Company-owned branches to our proven, successful franchise model. We entered 2020 with efficient business operations operating at a powerful scale, virtually unencumbered by legacy and transition activities.

Our Company is well capitalized with a strong balance sheet and a historically profitable, self-sustaining operating model that is generating positive cash flow. Our fourth quarter results illustrate this with $3.8 million of income from continuing operations on $5.9 million in revenue and $4.2 million in cash reserves with zero debt. These results were achieved through the successful execution of our merger integration plan and included converting all of the legacy Command Center locations to HireQuest franchise models, exiting the California market via the sale of all four Company-owned locations to an independent third-party and improvements to operating processes that delivered increased efficiencies and a leaner cost