Revenue was
Gross margin of
Adjusted EBITDA1 was
Adjusted net income2 was
'Our brands benefitted from strong client demand in the second quarter,' said
Q2 Financial Highlights
Revenue at
Gross margin was 54% for the quarter, a 16-point increase over 38% for Q2-2021. HIRE's mix of business continues to skew toward higher margin on-occurrence and executive search business, which now proportionately makes up 44% of total revenue, versus 28% for the comparable quarter in 2021.
HIRE maintained a consistent cost of recurring contract services as a percentage of recurring contract revenue at 80% for Q2-2022, flat sequentially against Q1-2022 and 6 points better than the 86% posted for Q2-2021. In its push for sustainability, HIRE is repositioning its presence in the health care and light industrial segments where contractor wage rates continue to increase because of demand, thereby squeezing margin and profitability in these areas. HIRE's emphasis this year is to seek more on-occurrence permanent business, while selectively passing on opportunities where profitability is challenging.
Adjusted EBITDA was
This excluded the impact of earn-out obligations treated as contingent remuneration of
Year-to-Date Financial Highlights
Revenue for the first half of 2022 was
HIRE's 12-point improvement on gross margin as a percentage of revenue, 52% for 2022 versus 40% in 2021, was attributable to the Company's rebalanced portfolio, including 12% of revenue which now comes from executive search and improved engagement profitability in the health care and light industrial verticals.
Adjusted EBITDA of
Outlook
HIRE expects growth in Q3-2022 but at a slower pace while the staffing industry cycles through summer seasonality. The Company will continue to explore operational strategies for long-term value creation for the remainder of 2022.
About
HIRE is a growing capital allocator that is rapidly establishing itself as a market leader in workforce management and staffing. HIRE's mission is to create a world-class portfolio of brands that will define the future of human resources through synergies, scale, and reach. The Company has extensive experience in building and growing staffing and executive search companies and is supported by a large recurring revenue base and a highly scalable shared services platform. This structure enables HIRE to create value for partners and shareholders.
Contact:
Tel: (647) 264-9196
Forward Looking Information
This press release contains 'forward-looking statements' or 'forward-looking information' (collectively referred to hereafter as 'forward-looking statements') within the meaning of applicable Canadian securities legislation.
All statements that address activities, events or developments that HIRE expects or anticipates will, or may, occur in the future, including statements about HIRE's future growth, business prospects, future trends, plans and strategies, expected benefits from business activities and the Company's prospects for completion of additional acquisitions, including those under the heading 'Outlook' are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by or include words such as 'may', 'will', 'would', 'could', 'should', 'believes', 'estimates', 'projects', 'potential', 'expects', 'plans', 'intends', 'proposes', 'anticipates', 'targeted', 'continues', 'forecasts', 'designed', 'goal', or the negative of those words or other similar or comparable words. Although the management of HIRE believes that the assumptions made and the expectations represented by such statements are reasonable, including the continued favourable market conditions, there can be no assurance that a forward-looking statement herein will prove to be accurate.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of HIRE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the staffing industry can be found in the Company's MD&A and its continuous disclosure record available on SEDAR. Although HIRE has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.
All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. HIRE undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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