What was the net income from continuing operations for Management Recruiters in 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| | 58,254 | 46,735 |
| | $ | 103,283 | $ 77,352 | | Total liabilities and stockholders' equity | | | |
HireQuest, Inc. Consolidated Statements of Income
| Year ended | |||||||
|---|---|---|---|---|---|---|---|
| December 31, | December 31, | ||||||
| (in thousands, except per share data) | 2022 | 2021 | |||||
| Franchise royalties | $ | 28,897 | $ | 21,317 | |||
| Service revenue | 2,055 | 1,212 | |||||
| Total revenue | 30,952 | 22,529 | |||||
| Selling, general and administrative expenses | 12,874 | 13,328 | |||||
| Depreciation and amortization | 2,040 | 1,551 | |||||
| Income from operations | 16,038 | 7,650 | |||||
| Other miscellaneous (expense) income | (2,047) | 4,570 | |||||
| Interest income | 247 | 413 | |||||
| Interest and other financing expense | (368) | (157) | |||||
| Net income before income taxes | 13,870 | 12,476 | |||||
| Provision for income taxes | 1,895 | 635 | |||||
| Net income from continuing operations | 11,975 | 11,841 | |||||
| Income from discontinued operations, net of tax | 483 | 9 | |||||
| Net income | $ | 12,458 | $ | 11,850 | |||
| Basic earnings per share | |||||||
| Continuing operations | $ | 0.87 | $ | 0.88 | |||
| Discontinued operations | 0.04 | - | |||||
| Total | $ | 0.91 | $ | 0.88 | |||
| Diluted earnings per share | |||||||
| Continuing operations | $ | 0.87 | $ | 0.87 | |||
| Discontinued operations | 0.04 | - | |||||
| Total | $ | 0.91 | $ | 0.87 | |||
| Weighted average shares outstanding |
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 from continuing operations for the year ended December 31, 2022, was $11,975,000. This figure reflects the company's profitability from its ongoing business activities before accounting for discontinued operations or other extraordinary items. In comparison, the net income from continuing operations for the year ended December 31, 2021, was $11,841,000.
Net income from continuing operations is a key indicator of a company's financial health and stability. For a prospective Management Recruiters franchisee, this number provides insight into the overall profitability of the franchisor's core business model. A consistent or growing net income from continuing operations suggests that the Management Recruiters business model is sustainable and potentially lucrative.
It is important to note that while net income from continuing operations provides a valuable snapshot of Management Recruiters' financial performance, prospective franchisees should also consider other factors. These factors include revenue trends, operating expenses, and any potential risks or liabilities associated with the business. Reviewing the complete financial statements and consulting with a financial advisor can provide a more comprehensive understanding of the financial implications of investing in a Management Recruiters franchise.
Additionally, the FDD notes that Management Recruiters made several acquisitions in 2022, including Temporary Alternatives, The Dubin Group, Northbound Executive Search, and MRINetwork. These acquisitions could have impacted the company's financial performance, and prospective franchisees should inquire about the integration and performance of these acquired entities.