Business
HCSG Reports Q3 2023 Results; Raises Cash Flow Expectations
Revenue of $411.4 million; adjusted revenue(1) of $424.0 million, in line with expectations. Net income and diluted EPS of ($5.5) million and ($0.07);
About this update from Healthcare Services Group, Inc.
[{"type":"text","content":"\n\nRevenue of $411.4 million; adjusted revenue(1) of $424.0 million, in line with expectations.\n\n\n\nNet income and diluted EPS of ($5.5) million and ($0.07); adjusted net income(1) and adjusted diluted EPS(1) of $12.5 million and $0.17, a 13.7% and 13.3% increase, respectively, over Q3 2022.\n\n\n\nAdjusted EBITDA(1) of $23.2 million, a 10.2% increase over Q3 2022.\n\n\n\nCash flow from operations of $2.9 million; adjusted cash flow from operations(1) of $18.0 million, a 208.9% increase over Q3 2022.\n\n\n\nRaises expectations for second half of 2023 cash flow from operations from a range of $20.0 million to $30.0 million, to $35.0 million to $45.0 million.\n\n\n\n BENSALEM, Pa.--(BUSINESS WIRE)--\nHealthcare Services Group, Inc. (NASDAQ:HCSG) today reported results for the three months ended September 30, 2023.\n\n\nTed Wahl, Chief Executive Officer, stated, “We entered the second half of the year with three clear priorities and made substantial progress on all three during the quarter. The first was continuing to manage adjusted costs of services at 86%, which we did. The second was collecting what we bill, building on the strong momentum that we gained in May and June. In Q3 we delivered our strongest cash collections of the year, collecting over 98% of what we billed, with the modest shortfall primarily related to the timing of new business adds during the quarter. The third priority was executing on our organic growth strategy. Adjusted revenue for the quarter was up sequentially, our sales pipeline is growing, and our recruiting and management development efforts are ramping up as we ready ourselves for growth. We look forward to ending the year on a strong note and expect these positive operating, cash collection, and new business trends to continue into 2024.”\n\n\nMr. Wahl continued, “We also had two long-term clients initiate restructurings during the quarter. And while the resulting non-cash charges created some noise in Q3 revenue and earnings, I believe that, longer term, these restructuring actions will result in stronger, healthier clients with significant opportunities for future growth. The other positive takeaway is that with the impact of these two legacy issues behind us and the operating landscape continuing to improve, our visibility to deliver consistent results only increases.”\n\n\nMr. Wahl concluded...