What was the net income for Management Recruiters in 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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HireQuest, Inc. Consolidated Statements of Income
| Year ended | ||||
|---|---|---|---|---|
| December 31, 2021 | December 31, 2020 | |||
| Franchise royalties | $ 21,317,045 | $ | 12,792,793 | |
| Staffing revenue, owned locations | 230,668 | - | ||
| Service revenue | 1,212,080 | 1,016,332 | ||
| Total revenue | 22,759,793 | 13,809,125 | ||
| Cost of staffing revenue, owned locations | (170,548) | - | ||
| Gross profit | 22,589,245 | 13,809,125 | ||
| Selling, general and administrative expenses | 13,363,957 | 8,700,446 | ||
| Depreciation and amortization | 1,563,088 | 129,182 | ||
| Income from operations | 7,662,200 | 4,979,497 | ||
| Other miscellaneous income | 4,570,575 | 458,973 | ||
| Interest income | 412,457 | 711,646 | ||
| Interest and other financing expense | (157,234) | (49,664) | ||
| Net income before income taxes | 12,487,998 | 6,100,452 | ||
| Provision for income taxes | 638,064 | 741,038 | ||
| Net income | $ 11,849,934 | $ | 5,359,414 | |
| Earnings per share | ||||
| Basic | $ 0.88 | $ | 0.40 | |
| Diluted | $ 0.87 | $ | 0.39 | |
| Weighted average shares outstanding | ||||
| Basic |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the net income for the company for the year ending December 31, 2021, was $11,849,934. This figure represents the company's profitability after accounting for all revenues, expenses, and taxes during that period. This information is crucial for potential franchisees as it provides insight into the financial health and performance of Management Recruiters.
Analyzing the net income helps prospective franchisees understand the overall financial stability of Management Recruiters. A strong net income suggests that the company is well-managed and has a sustainable business model. This can be a positive indicator for franchisees, as it implies that Management Recruiters has the resources to support its franchisees and invest in the growth of the franchise system. Additionally, the earnings per share, both basic ($0.88) and diluted ($0.87), offer further context on the profitability relative to the number of outstanding shares.
It is important to note that this net income reflects the overall performance of HireQuest, Inc., which includes Management Recruiters and its other subsidiaries. While this consolidated figure provides a general overview, prospective franchisees may also want to inquire about the specific financial performance of the Management Recruiters division to gain a more detailed understanding of its contribution to the company's overall profitability. Understanding the components of revenue, such as franchise royalties ($21,317,045) and service revenue ($1,212,080), can also provide valuable insights into the sources of income for Management Recruiters.