HireQuest, Inc. (NASDAQ:HQI) Q1 2020 Earnings Conference Call - Final Transcript

Thank you. [Operator Instructions] We'll go first to Peter Rabover at Artko Capital.

Hey, Rick. Hey, nice quarter, nice cash flow generation. Just, I guess, a couple of questions. One, is it fair to say that exclusive of the $1.4 million note reserve that you placed that the SG&A run rate is about $2 million kind of going forward is what should we look forward to -- I guess, to see if it changes or if it's a different number?

That sounds about -- I mean, that sounds about right. It should actually be a little bit lower actually than that going forward, because we're pretty heavy on audit expense in the first quarter. So, I would think it'd be a little bit of less, to be honest with you.

And the stock comp as well?

What's that?

And the stock comp as well, is that a first quarter thing?

No. I think that -- Cory that's amortized over the entire period of the grant, is it not?

It is, but it's weighted a little bit more heavily at the beginning of the grants, which were granted recently. So, it should taper off unless we have future grants, Rick.

So, I would say, it's still going to exist, but not as quite -- not quite as heavy.

Okay. And then maybe, it's been a few weeks since the last call, but maybe you can share some thoughts on what you're seeing in the economy? And you have some places that have been opening up for the last couple of weeks and just seeing what the response for temporary workers has done since then.

Yeah, that's a good question. So, I would say, that we bottomed out, right, probably about the first week or two of April was the bottom and we've sort of slowly -- when I say slowly, I mean, slowly ticked up a little bit since that point. Frankly, the reopening will be more robust. I think there are just certain markets in particular where it's still completely, basically completely shut down. And so, as much as it's nice from a personal standpoint, maybe be able to sit in a restaurant, that's not really -- so far it really hasn't had a great impact on us. The biggest -- probably the biggest impacts will be once -- I would say, for example, once auto auctions are running again, that will have a more appreciable effect on our business. When, again, certain states allow construction and manufacturing again, that will have a big impact. But right now it's all just been in dribbles and drabs.

There -- it's really been remarkably stable frankly since probably like March 25. So, unfortunately, like I said, well, having a little more personal freedom, at least in Florida where I live is great. It hasn't necessarily had a huge impact on business yet. But again, to the extent that you start seeing large manufacturers such as, let's say, the auto industry going again, there's