Business
HCSG Reports Q3 2024 Results
Delivers QoQ and YoY Growth In Revenue, Earnings and Cash Flow Revenue of $428.1 million, in line with expectations. Net income and diluted EPS of $14.0
About this update from Healthcare Services Group, Inc.
[{"type":"text","content":"\nDelivers QoQ and YoY Growth In Revenue, Earnings and Cash Flow\n\n\nRevenue of $428.1 million, in line with expectations.\n\n\nNet income and diluted EPS of $14.0 million and $0.19.\n\n\nReported and adjusted cash flow from operations of $4.3 million and $19.0 million.\n\n\nReaffirms Q4 revenue estimate of $430.0 to $440.0 million and FY 2024 cash flow forecast of $40.0 to $55.0 million.\n\n\n BENSALEM, Pa.--(BUSINESS WIRE)--\nHealthcare Services Group, Inc. (NASDAQ:HCSG) today reported results for the three months ended September 30, 2024.\n\nTed Wahl, Chief Executive Officer, stated, “We’re very pleased with our third quarter results, which underscore the positive momentum we're carrying into the fourth quarter. Executing on our three strategic priorities – driving growth, managing costs, and optimizing collections – is clearly paying off, resulting in sequential and year-over-year growth in revenue, earnings, and cash flow. Looking ahead, we are confident that our focus on these priorities, supported by our strong business fundamentals, will enable us to further accelerate growth, enhance profitability, and maximize cash flow through 2025 and beyond.”\n\nThird Quarter Results\n\n\nRevenue was reported at $428.1 million, in line with the Company’s expectations of $425.0 million to $435.0 million.\n\n\nHousekeeping & laundry and dining & nutrition segment revenues and margins were $191.1 million and 6.4% and $237.0 million and 5.3%, respectively.\n\n\nThe Company’s Q4 expected revenue range is $430.0 to $440.0 million.\n\n\n\n\nCost of services was reported at $364.7 million or 85.2%.\n\n\nThe Company’s goal is to continue to manage cost of services, excluding CECL, in the 86% range.\n\n\n\n\nSG&A was reported at $46.9 million; after adjusting for the $2.4 million increase in deferred compensation; actual SG&A was $44.5 million or 10.4%.\n\n\nThe Company’s goal continues to be achieving SG&A in the 8.5% to 9.5% range.\n\n\n\n\nNet income and diluted EPS were reported at $14.0 million and $0.19, respectively.\n\n\nAdjusted EBITDA was reported at $24.8 million.\n\n\nCash flow and adjusted cash flow from operations was $4.3 million and $19.0 million, respectively.\n\n\nThe Company reaffirmed its 2024 adjusted cash flow from operations forecast in the range of $40.0 million to $55.0 million.\n\n\n\n\nBalance Sheet and Liquidity\n...