HireQuest (HQI) Investor Presentation summary

Strategic rationale and transaction overview

• Proposal to combine with TrueBlue aims to create an industry-leading franchisor in staffing services, focused on profitability and growth.

• Offer price of $7.50 per share represents a 76% premium over TrueBlue's prior close, with consideration in HQI common shares and potential for a cash component.

• Transaction is intended to be tax-free under IRC Sec. 368, providing immediate value uplift for shareholders.

• HQI has pursued this transaction for two years, submitting multiple premium offers, and is prepared to initiate a direct tender offer if management engagement fails.

• The combination is expected to unlock significant value by converting TrueBlue's national branch network into franchises, generating incremental cash flow.

Business model and operational advantages

• HQI operates a profitable, scalable franchise model with over 400 locations and 300 franchises, serving 10,000+ customers and 65,000+ employees.

• Franchisees drive local performance, reduce need for middle management, and absorb local costs, enhancing economic resiliency and expense control.

• The franchise model enables faster, localized decision-making and provides lower-cost payroll financing and insurance.

• HQI's SG&A as a percentage of system-wide sales is 3.5%, significantly lower than TrueBlue's 26.2%, reflecting higher operational efficiency.

• The asset-light franchise approach offers greater capital efficiency, especially in workers' compensation insurance requirements.

Financial performance and growth

• HQI has completed over 15 acquisitions since 2019, more than doubling system-wide sales and revenue since 2020.

• System-wide sales grew from $213M in 2020 to $564M in 2024, with a 28% CAGR; adjusted EBITDA rose 1.7x over the same period.

• Consistent profitability across economic cycles, with adjusted ROIC and ROE outperforming industry benchmarks.

• Franchise conversion of acquisitions has provided additional income and cash flow, lowering net costs.

• Adjusted net income per diluted share reached $0.71 in 2024, with stable SG&A ratios despite economic headwinds.