Business
Healthcare Services Group, Inc. Reports Q1 2022 Results
BENSALEM, Pa.--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended March 31, 2022 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, 2022 revenue of $426.8 million and net income of $11.3 million, or $0.15 per basic and diluted common share. The Company’s Board of Directors declared a quarterly cash dividend of $0.2125 per common share, the 75th consecutive increase since the initiation of dividend payments in 2003.\n\nTed Wahl, Chief Executive Officer, stated, “Overall, I am pleased with our start to the year. More efficient labor management, specifically related to premium pay programs and overtime, along with the catch-up of food inflation pass-through increases and continued progress on our service agreement modification efforts, all contributed to improved financial outcomes in the quarter.”\n\nMr. Wahl continued, “We remain actively engaged with our customers to modify our service agreements to adjust for the extraordinary inflation experienced over the past year, as well as account for future inflation on a real-time basis. We expect these service agreement modifications to be completed by the end of Q2, with a goal of exiting the year with cost of services in line with our historical target of 86%.”\n\nMr. Wahl concluded, “Looking ahead, while the industry continues to face workforce availability, inflation and supply chain challenges, we are encouraged by the most recent, positive facility census trends. We remain confident in our ability to execute on our near-term objectives and the long-term growth outlook for the Company remains as strong as ever, given the increasing resonance of our value proposition and the attractive demographics.”\n\nFirst Quarter Results\n\nRevenue for the quarter was $426.8 million, with housekeeping & laundry and dining & nutrition segment revenues of $201.7 million and $225.1 million, respectively.\n\nDirect cost of services was reported at $373.3 million, or 87.5%. Cost of services was impacted by increases in labor and supply costs. The Company expects the aforementioned service agreement modifications to be completed throughout the first half of 2022, with a goal of exiting the year with cost of services in line with its historical target of 86%.\n\nHousekeeping & laundry and dining & nutrition segment margins were 10.1% and 4.2%, respectively.\n\nSelling, general and administr...