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Healthcare Services Group, Inc. Reports Results for the Three and Six Months Ended June 30, 2015 & Increases Second Quarter 2015 Cash Dividend
Revenues for the six months ended
Additionally, our Board of Directors declared a quarterly cash dividend of
The Company will host a conference call on
The Company also announced that it will participate in several conferences, including the CL King 13th Annual
Cautionary Statement Regarding Forward-Looking Statements
This release and any schedules incorporated by reference into it may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), as amended, which are not historical facts but rather are based on current
expectations, estimates and projections about our business and industry, our beliefs and assumptions. Words such as "believes," "anticipates," "plans," "expects," "will," "goal," and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by us that any of our plans will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such forward-looking information is also subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, risks arising from our providing services exclusively to the health care industry, primarily providers of long-term care; credit and collection risks associated with this industry; having several
significant clients who each individually contributed at least 3% with one as high as 9% of our total consolidated revenues for the three and six months ended
These factors, in addition to delays in payments from clients, have resulted in, and could continue to result in, significant additional bad debts in the near future. Additionally, our operating results would be adversely affected if unexpected increases in the costs of labor and labor-related costs, materials, supplies and equipment used in performing services could not be passed on to our clients.
In addition, we believe that to improve our financial performance we must continue to obtain service agreements with new clients, provide new services to existing clients, achieve modest price increases on current service agreements with existing clients and maintain internal cost reduction strategies at our various operational levels. Furthermore, we believe that our ability to sustain the internal development of managerial personnel is an important factor impacting future operating results and successfully executing projected growth strategies.
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | 355,356,000 | $ | 319,295,000 | $ | 710,602,000 | $ | 631,460,000 | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of services provided | 304,217,000 | 275,815,000 | 608,153,000 | 543,186,000 | |||||||||||
Selling, general and administrative | 25,124,000 | 22,240,000 | 51,887,000 | 44,286,000 | |||||||||||
Income from operations | 26,015,000 | 21,240,000 | 50,562,000 | 43,988,000 | |||||||||||
Other income: | |||||||||||||||
Investment and interest | 242,000 | 803,000 | 749,000 | 1,184,000 | |||||||||||
Income before income taxes | 26,257,000 | 22,043,000 | 51,311,000 | 45,172,000 | |||||||||||
Income taxes | 9,969,000 | 8,122,000 | 19,507,000 | 16,612,000 | |||||||||||
Net income | $ | 16,288,000 | $ | 13,921,000 | $ | 31,804,000 | $ | 28,560,000 | |||||||
Basic earnings per common share | $ | 0.23 | $ | 0.20 | $ | 0.44 | $ | 0.41 | |||||||
Diluted earnings per common share | $ | 0.23 | $ | 0.20 | $ | 0.44 | $ | 0.40 | |||||||
Cash dividends per common share | $ | 0.18 | $ | 0.17 | $ | 0.36 | $ | 0.34 | |||||||
Basic weighted average number of common shares outstanding | 71,657,000 | 70,440,000 | 71,563,000 | 70,381,000 | |||||||||||
Diluted weighted average number of common shares outstanding | 72,286,000 | 71,206,000 | 72,223,000 | 71,140,000 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
Cash and cash equivalents | $ | 85,900,000 | $ | 75,280,000 | |||
Marketable securities, at fair value | 11,799,000 | 11,799,000 | |||||
Accounts and notes receivable, net | 205,048,000 | 198,128,000 | |||||
Other current assets | 49,505,000 | 49,621,000 | |||||
Total current assets | 352,252,000 | 334,828,000 | |||||
Property and equipment, net | 12,785,000 | 12,772,000 | |||||
Notes receivable - long term | 3,463,000 | 5,179,000 | |||||
Goodwill | 44,438,000 | 44,438,000 | |||||
Other intangible assets, net | 18,729,000 | 20,349,000 | |||||
Deferred compensation funding | 24,985,000 | 24,742,000 | |||||
Other assets | 30,082,000 | 27,271,000 | |||||
Total Assets | $ | 486,734,000 | $ | 469,579,000 | |||
Accrued insurance claims - current | $ | 17,908,000 | $ | 17,748,000 | |||
Other current liabilities | 95,987,000 | 100,211,000 | |||||
Total current liabilities | 113,895,000 | 117,959,000 | |||||
Accrued insurance claims - long term | 56,708,000 | 50,514,000 | |||||
Deferred compensation liability | 25,252,000 | 25,276,000 | |||||
Stockholders' equity | 290,879,000 | 275,830,000 | |||||
Total Liabilities and Stockholders' Equity | $ | 486,734,000 | $ | 469,579,000 |
Company Contacts:Source:Daniel P. McCartney ChairmanTheodore Wahl President and Chief Executive OfficerMatthew J. McKee VicePresident of Strategy 215-639-4274 investor-relations@hcsgcorp.com
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