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HireQuest, Inc. Announces New Stock Repurchase Program for up to 1
Million Shares
Goose Creek, South Carolina, June 29, 2020 – HireQuest, Inc.
(NASDAQ: HQI) announced that its Board of Directors has authorized
a new share repurchase program pursuant to which the company may
repurchase up to 1 million shares of its common stock through June
2021.
“Using our strong balance sheet to repurchase shares
demonstrates our confidence in the strength of our franchised
business model, the underlying value of our stock, and our
commitment to providing long-term value for our
stockholders,” commented Rick Hermanns, President and Chief
Executive Officer of the company. “We have ample liquidity
and cash flow to simultaneously repurchase shares and support our
growth initiatives, whether that be through organic growth or
selective pursuit of other opportunities that may
arise.”
The shares may be repurchased from time to time in open market
transactions at prevailing market prices, in privately negotiated
transactions, or by other means in accordance with federal
securities laws. The Company has put in place a Rule 10b5-1 plan to
facilitate market repurchases. A plan under Rule 10b5-1 allows a
company to repurchase shares at times when it might otherwise be
prevented from doing so by securities laws or because of
self-imposed trading blackout periods. Any repurchased shares will
be available for various corporate purposes. There can be no
assurance of how many shares will be repurchased, and the
repurchase program may be suspended or discontinued at any time.
The actual timing, number and value of shares repurchased under the
program will depend on a number of factors, including the market
price of HireQuest Inc.'s stock, general market and economic
conditions, and applicable legal requirements. Purchases will be
financed through the company’s existing cash balances and
cash provided through operations.
The Company had approximately 13.5 million shares of common stock
outstanding as of June 15, 2020, the date of its most recent annual
meeting of stockholders.
About HireQuest
HireQuest, Inc. is a nationwide franchisor that provides on demand
labor solutions primarily in the light industrial and blue-collar
segments of the staffing industry for HireQuest Direct and
HireQuest franchised offices across the United States. Through its
nationwide network of more than 130 franchisee-owned offices in 30
states and the District of Columbia, the Company provides
employment annually for approximately 67,000 field team members
working for thousands of customers, principally in the areas of
construction, light industrial, manufacturing, hospitality, and
event services. For more information,
visit www.hirequest.com.
Forward-Looking Statements
This news release includes, and the company’s officers and
other representatives may sometimes make or provide certain
estimates and other forward-looking statements within the meaning
of the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act,
and Section 21E of the Exchange Act, including, among others,
statements with respect to the Company’s plan to repurchase
shares, value to stockholders, future liquidity, the strength of
our franchise model, and the Company’s future growth; and all
other statements that are not purely historical and that may
constitute statements of future expectations. Forward-looking
statements can be identified by words such as:
“anticipate,” “intend,” “plan,”
“goal,” “seek,” “believe,”
“project,” “estimate,”
“expect,” “strategy,” “future,”
“likely,” “may,” “should,”
“will,” and similar references to future
periods.
While the company believes these statements are accurate,
forward-looking statements are not historical facts and are
inherently uncertain. They are based only on the company’s
current beliefs, expectations, and assumptions regarding the future
of its business, future plans and strategies, projections,
anticipated events and trends, the economy, and other future
conditions. The company cannot assure you that these expectations
will occur, and its actual results may be significantly different.
Therefore, you should not place undue reliance on these
forward-looking statements. Important factors that may cause actual
results to differ materially from those contemplated in any
forward-looking statements made by the company include the
following: significant changes in the market for our shares; the
possibility that we may suspend or terminate our share repurchase
program; the level of demand and financial performance of the
temporary staffing industry; the financial performance of the
company’s franchisees; changes in customer demand; the
effects of any global pandemic including the impact of COVID-19;
the extent to which the company is successful in gaining new
long-term relationships with customers or retaining existing ones,
and the level of service failures that could lead customers to use
competitors’ services; strategic actions, including
acquisitions and dispositions and the company’s success in
integrating acquired businesses; natural events such as severe
weather, fires, floods, and earthquakes, or man-made or other
disruptions of the company’s operating systems; and the
factors discussed in the “Risk Factors” section and
elsewhere in the company’s most recent Annual Report on Form
10-K.
Any forward-looking statement made by the company or its management
in this news release is based only on information currently
available to the company and speaks only as of the date on which it
is made. The company and its management disclaim any obligation to
update or revise any forward-looking statement, whether written or
oral, that may be made from time to time, based on the occurrence
of future events, the receipt of new information, or otherwise,
except as required by law.
Contacts
Company Contact:
HireQuest, Inc.
Cory Smith, CFO
(843) 723-7400
Email: cssmith@hirequest.com
Investor Relations Contact:
Hayden IR
Brett Maas, Managing Partner
(646) 536-7331
Email: brett@haydenir.com