How much was the stock-based compensation for Management Recruiters in 2023 (in thousands)?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| | | | | | | | | Weighted average shares outstanding | | | | | | | | Basic | | 13,733 | | 13,654 | | | | Diluted | | 13,801 | | 13,721 | | |
HireQuest, Inc. Consolidated Statement of Changes in Stockholders' Equity
| Common stock | Treasury stock | Additional paid in | Retained | Total stockholders' | ||
|---|---|---|---|---|---|---|
| (in thousands) | Shares | Par value | amount | capital | earnings | equity |
| Balance at December 31, 2021 | 13,745 | $ 14 | $ (146) | $ 30,472 | $ 16,395 | $ 46,735 |
| Stock-based compensation | - | - | - | 2,372 | - | 2,372 |
| Cash dividends ($0.06 per share) | - | - | - | - | (3,311) | (3,311) |
| Restricted common stock granted for services | 173 | - | - | - | - | - |
| Net income | - | - | - | - | 12,458 | 12,458 |
| Balance at December 31, 2022 | 13,918 | 14 | (146) | 32,844 | 25,542 | 58,254 |
| Stock-based compensation | - | - | - | 1,683 | - | 1,683 |
| Cash dividends ($0.06 per s |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters's 2024 Franchise Disclosure Document, the stock-based compensation for the company in 2023 was $1,683,000. This figure represents the expense recognized by Management Recruiters for equity awards granted to its officers, directors, or employees. These awards are measured at fair value on the grant date and expensed over the service period.
Stock-based compensation is a non-cash expense, meaning it does not involve an actual outflow of cash. Instead, it reflects the value of stock options or restricted stock granted to employees as part of their compensation package. For Management Recruiters, this compensation is connected to the HireQuest, Inc. Equity Incentive Plan, which includes matching programs for stock purchases by key employees and directors.
For a prospective Management Recruiters franchisee, understanding stock-based compensation is important for assessing the overall financial health and stability of the franchisor. While franchisees do not directly participate in these stock-based compensation plans, the franchisor's ability to attract and retain key personnel through such incentives can indirectly impact the support and resources available to franchisees. Additionally, the financial statements, including stock-based compensation expenses, provide insights into the franchisor's financial management practices, which can be a factor in evaluating the franchise opportunity.
It is also important to note that at the end of 2023, Management Recruiters had approximately $1.6 million in unrecognized stock-based compensation expense related to non-vested restricted stock grants. This amount will be recognized over the subsequent 3.9 years, indicating that the company will continue to incur these expenses in the future. This information can help potential franchisees understand the long-term compensation strategies of Management Recruiters and their potential impact on the company's financial performance.