What was the value of stock-based compensation for HireQuest, Inc., the parent company of Management Recruiters, in 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
December 31, 2022 | 13,918 | $ 14 | $ (146) | $ 32,844 | $ 25,542 | $ 58,254 |
HireQuest, Inc. Consolidated Statement of Cash Flow
Year ended December 31, December 31, (in thousands) 2022 2021 Cash flows from operating activities Net income $ 12,458 $ 11,850 Income from discontinued operations (483) (9) Net income from continuing operations 11,975 11,841 Adjustments to reconcile net income to net cash use
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, HireQuest, Inc.'s consolidated statement of cash flow indicates that stock-based compensation for the year ending December 31, 2022, was $2,372,000. This figure is part of the adjustments made to reconcile net income to net cash used in operations.
This means that $2,372,000 was the value of stock and stock options granted to employees and executives as part of their compensation packages. This is a non-cash expense, meaning it does not represent an actual outflow of cash during the year, but it does affect the company's net income. For a Management Recruiters franchisee, this information provides insight into how the parent company, HireQuest, Inc., compensates its employees and executives, which can be an indicator of the company's overall financial health and management philosophy.
It's important to note that this figure represents the total stock-based compensation for HireQuest, Inc. as a whole, not just for the Management Recruiters franchise system. However, it does provide a glimpse into the financial practices of the parent company, which can be useful for prospective franchisees when evaluating the stability and long-term prospects of the franchise.