HireRight Holdings Corp (HRT) Reports Q3 2023 Earnings: Revenue and Net Income Decline
HireRight Holdings Corp (NYSE:HRT) reported Q3 2023 revenues of $188.3 million, a decrease from the prior year period revenues of $210.3 million.
The company reported a net loss of $1.7 million, compared to a net income of $93.3 million in the same period last year.
Adjusted EBITDA for the quarter was $52.1 million, a decrease from the prior year period Adjusted EBITDA of $137.8 million.
The company maintained its full-year 2023 outlook with estimated revenues between $720,000 and $735,000.
On November 7, 2023, HireRight Holdings Corp (NYSE:HRT), a leading provider of background screening services, announced its financial results for the third quarter ended September 30, 2023. The company reported a decrease in revenues and net income compared to the same period last year. Despite the decline, the company continues to focus on margin improvement initiatives and expanding partnerships with leading HCM providers.
Financial Highlights
For Q3 2023, HireRight reported revenues of $188.3 million, a decrease compared to the prior year period revenues of $210.3 million. The company reported a net loss of $1.7 million, compared to a net income of $93.3 million in the same period last year. Adjusted EBITDA for the quarter was $52.1 million, a decrease from the prior year period Adjusted EBITDA of $137.8 million. The diluted loss per share was $0.02, compared to the prior year period diluted earnings per share of $1.17.
We continue to be laser focused on our margin improvement initiatives while maintaining industry leading quality and service for our customers and that focus is reflected in our results, said HireRight President and CEO Guy Abramo. Our reputation in the industry for high quality services and technical capabilities has made us the partner of choice for leading HCM providers.
Liquidity and Capital Resources
As of September 30, 2023, the company had $262.0 million of capital available, consisting of $103.2 million of cash and $158.7 million of available borrowing capacity under its Revolving Credit Facility. The company has repurchased 11.7 million shares of common stock for approximately $125.7 million under the share repurchase programs announced in 2022 and 2023. Cash provided by operating activities was $50.6 million for the nine months ended September 30, 2023, compared to $70.9 million for the same period in 2022.
Full-Year Outlook
Based on current expectations, HireRight is maintaining its full-year 2023 outlook. The company expects revenues to be between $720,000 and $735,000, Adjusted EBITDA between $172,000 and $177,000, Adjusted Net Income between $75,000 and $80,000, and Adjusted Diluted EPS between $1.05 and $1.10.
Balance Sheet Summary
As of September 30, 2023, HireRight had total assets of $1,561,062,000, total liabilities of $1,084,185,000, and total stockholders' equity of $476,877,000. The company's cash and cash equivalents stood at $103,218,000.
The company's financial results reflect its ongoing efforts to improve margins and expand partnerships, despite the decrease in revenues and net income. HireRight continues to focus on providing high-quality services and maintaining its position as a leading provider in the industry.
Explore the complete 8-K earnings release (here) from HireRight Holdings Corp for further details.
This article first appeared on GuruFocus.
