What was the value of the treasury stock held by Management Recruiters at the end of 2022?
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 value of treasury stock held by the company at the end of 2022 was approximately ($146,000). This figure represents the cost of shares that Management Recruiters has repurchased from the open market and holds in its treasury. These shares do not pay dividends and do not have voting rights until they are reissued.
For a prospective franchisee, understanding the company's treasury stock activity can provide insights into its capital management strategies. A company buying back its own shares may indicate that it believes the shares are undervalued, or it may be trying to increase earnings per share.
The treasury stock balance can fluctuate depending on Management Recruiters's decisions to repurchase or reissue shares. It is important to note that the value is presented in thousands, so the actual amount is ($146,000).