Business
Healthcare Services Group, Inc. Reports Q1 2020 Results
BENSALEM, PA--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended March 31, 2020 revenue of
About this update from Healthcare Services Group, Inc.
[{"type":"text","content":" BENSALEM, PA--(BUSINESS WIRE)--\nHealthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended March 31, 2020 revenue of $449.2 million, net income of $20.2 million, or $0.27 per basic and diluted common share, and cash flow from operations of $12.7 million. Additionally, the Company’s Board of Directors declared a quarterly cash dividend of $0.2025 per common share, the 67th consecutive increase since the initiation of dividend payments in 2003.\n\n\nTed Wahl, Chief Executive Officer, stated, “COVID-19 quickly became the dominant theme during the quarter. The pace at which the virus presented and altered operational protocol for our customers was unlike anything we’ve experienced in the industry. Our customers responded with innovation and resolve, and we’ve been right there with them, at our absolute best and delivering in the most extraordinary way. Our subject matter expertise in infection control and supply chain management has been rivaled only by the incredible dedication and commitment of our employees, at every level, but especially our heroes working in the facilities. Their passion, perseverance and courage in the face of great adversity is nothing short of inspirational.”\n\n\nMr. Wahl continued, “We’ll continue to closely monitor the impact of COVID-19 on the industry, as we work with our customers in managing this unique challenge. While quite a bit of uncertainty remains as to the path and impact of this virus on the industry, we’ve been encouraged by both the pace and significance of the enacted and proposed federal and state relief measures, which are providing meaningful financial support to an industry committed to combating this crisis.”\n\n\nFirst Quarter Results \n\n\nRevenue for the quarter was $449.2 million, with dining & nutrition and housekeeping & laundry segment revenues of $224.9 million and $224.3 million, respectively.\n\n\nDirect cost of services was reported at $387.2 million, or 86.2%. Overall, the Company’s near-term goal is to manage Direct cost at 86.0%, excluding any COVID-19-related costs, temporary investments in management capacity or any new business start-up inefficiencies that may occur.\n\n\nDining & nutrition and housekeeping & laundry segment margins were 6.4% and 10.7%, respectively.\n\n\nSelling, general and administrative (“SG&A”) was reporte...