What was the net income for Management Recruiters for the year ending December 31, 2020?
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 year ending December 31, 2020, was $5,359,414.
This figure represents the profit Management Recruiters retained after deducting all expenses, including the provision for income taxes which was $741,038, from its total revenue of $13,809,125. Net income is a key indicator of a company's profitability and financial health. For a prospective franchisee, understanding the net income can provide insight into the potential earnings and stability of the franchisor.
It's important to note that this net income is part of the consolidated financial statements for HireQuest, Inc., the parent company of Management Recruiters. This means the figure reflects the overall performance of HireQuest, Inc. and may include revenue and expenses from other brands or business segments owned by the parent company. Franchisees should consider this consolidated nature when evaluating the financial performance of Management Recruiters specifically.
Reviewing the components of revenue and expenses, such as franchise royalties ($12,792,793) and selling, general, and administrative expenses ($8,700,446), can offer a more detailed understanding of how Management Recruiters generates its income and manages its costs. This information, combined with other financial metrics, helps potential franchisees assess the financial viability and growth potential of investing in a Management Recruiters franchise.