Business
Healthcare Services Group, Inc. Reports Q2 2020 Results
BENSALEM, PA.--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended June 30, 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 June 30, 2020 revenue of $452.0 million, net income of $23.1 million, or $0.31 per basic and diluted common share, and cash flow from operations of $79.7 million. Additionally, the Company’s Board of Directors declared a quarterly cash dividend of $0.20375 per common share, the 68th consecutive increase since the initiation of dividend payments in 2003.\n\n\nTed Wahl, Chief Executive Officer, stated, “During the quarter we continued our intensive operational focus on mitigating the effects of COVID-19 and remained steadfast in our commitment to support our customers in the care of their patients and residents. In the face of unprecedented challenges, it has been beyond inspiring to witness our HCSG heroes as they, alongside our clients’ employees, positively and profoundly impact the lives of America's most vulnerable each and every day.”\n\n\nMr. Wahl continued, “Prior to the onset of the pandemic, sector fundamentals were improving on the heels of positive trends around occupancy, reimbursement and lease costs. While COVID-19 has presented the industry with its share of near-term challenges, we’ve been encouraged by swift and decisive federal and state agency actions in support of providers. As we continue to navigate this crisis, we will continue to assess the impact of COVID-19 on our business and our industry, including the trends we are seeing with regard to lower census and increased costs.”\n\n\nSecond Quarter Results \n\n\nRevenue for the quarter was $452.0 million, with housekeeping & laundry and dining & nutrition segment revenues of $227.6 million and $224.4 million, respectively. Revenue included $17.2 million of COVID-19 supplemental billings, primarily related to employee pay premiums passed through to customers, which were offset by temporary decreases in recurring billings as a result of census-driven cost reductions in staffing and purchasing.\n\n\nDirect cost of services was reported at $387.5 million, or 85.7%. The improvement is primarily the result of the Company having successfully assigned its additional managers to facilities at which they are budgeted. Overall, the Company’s near-term goal remains to manage direct cost at or below 86.0%.\n\n\nHousekeeping & laundry and din...