Our Board of Directors has declared a regular quarterly cash dividend
of $ .13 per common share, payable on February 15, 2008 to
shareholders of record at the close of business February 4, 2008.
This dividend represents a 9% increase over the dividend declared for
the 2007 third quarter and a 44% increase over the 2006 same period
payment. It is the nineteenth consecutive regular quarterly cash
dividend payment, as well as the eighteenth consecutive increase
since our initiation of regular quarterly cash dividend payments in
2003. In addition, during the 2007 fourth quarter, the Company
completed repositioning the Regional and District management of its
food service operations to the established Divisional management
teams, which are now responsible for all Company services.
We intend to release our results for the three months (unaudited) and
year ended (audited) December 31, 2007 during the week of February 11,
2008.
The Company announced that it will make a presentation on February
13, 2008 regarding the Company at the "UBS Warburg Global Healthcare
Services Conference" at the Grand Hyatt in New York City.
Additionally, this presentation will be audio webcast at
www.ibb.ubs.com.
Cautionary Statement Regarding Forward-Looking Statements
This report contains 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, are not historical facts but rather 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; one client accounting for approximately 16% of
revenues in 2007; risks associated with our acquisition of Summit
Services Group, Inc., including integration risks and costs, or such
business not achieving expected financial results or synergies or
failure to otherwise perform as expected; our claims experience
related to workers' compensation and general liability insurance; the
effects of changes in, or interpretations of laws and regulations
governing the industry, including state and local regulations
pertaining to the taxability of our services; and the risk factors
described in our Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 2006 Part I thereof under
"Government Regulation of Clients," "Competition" and "Service
Agreements/Collections," and under Item IA "Risk Factors." Many of
our clients' revenues are highly contingent on Medicare and Medicaid
reimbursement funding rates, which Congress has affected through the
enactment of a number of major laws during the past decade. These
laws have significantly altered, or threatened to alter, overall
government reimbursement funding rates and mechanisms. The overall
effect of these laws and trends in the long-term care industry have
affected and could adversely affect the liquidity of our clients,
resulting in their inability to make payments to us on agreed upon
payment terms. 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.
Healthcare Services Group, Inc. is the largest national provider of
professional housekeeping, laundry and food services to long-term
care and related facilities.
Company Contacts:
Daniel P. McCartney
Chairman and Chief Executive Officer
215-639-4274
Thomas Cook
President and Chief Operating Officer
215-639-4274
SOURCE: Healthcare Services Group, Inc.