Healthcare Services Group Inc

HCSG

Equity

ISIN US4219061086 / Valor 938239

NASDAQ (2024-11-21)

USD 11.52+1.14%

Healthcare Services Group Inc
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About company

Healthcare Services Group Inc is a well-established leader in providing housekeeping, laundry, dining, and nutritional services to the healthcare industry. With over 45 years of experience, the company focuses on delivering improved operational, regulatory, and financial outcomes for its clients through the implementation of efficient systems, accountability measures, and quality assurance programs. Healthcare Services Group Inc places a strong emphasis on training and developing its team members at all levels to ensure excellence in service delivery. The company's foundation lies in its Environmental Services division, which has been instrumental in supporting infection prevention and control initiatives in numerous communities nationwide for over four decades.

Summarized from source with an LLMView SourceSector: Healthcare

Revenue

Healthcare Services Group Inc. reported revenue of $426.3 million for Q2 2024, which was in line with the company's expectations of $420.0 million to $430.0 million. The revenue was driven by the housekeeping & laundry and dining & nutrition segments, which contributed $191.0 million and $235.3 million, respectively.

Net Income

For Q2 2024, Healthcare Services Group Inc. reported a net income of ($1.8) million, translating to a diluted EPS of ($0.02). This figure includes a $0.22 impact from specific restructuring activities, notably the LaVie Care Centers’ Chapter 11 filing.

Cost of Services

The cost of services for Healthcare Services Group Inc. in Q2 2024 was reported at $384.7 million, or 90.3% of revenue. This includes $31.7 million in bad debt expenses, with $21.9 million related to client restructuring and $9.8 million to aging-related expenses. Additionally, there was a $5.1 million benefit from favorable workers’ compensation and general liability loss development trends.

Cash Flow

Healthcare Services Group Inc. reported cash flow from operations of $16.3 million for Q2 2024. This figure includes an $18.7 million increase in payroll accrual. The company reaffirmed its 2024 adjusted cash flow from operations range of $40.0 million to $55.0 million.

Revenue Outlook

Healthcare Services Group Inc. raised its revenue estimates for Q3 and Q4 2024 to $425.0 to $435.0 million and $430.0 to $440.0 million, respectively. The company remains confident in its ability to meet its full-year 2024 cash flow objectives, driven by strong business fundamentals and strategic priorities.

Summarized from source with an LLMView Source

Key figures

15.9%1Y

-37.9%3Y

-52.5%5Y

Performance

38.7%1Y

39.7%3Y

44.5%5Y

Volatility