Business
Healthcare Services Group, Inc. Reports Q3 2021 Results
BENSALEM, Pa.--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended September 30, 2021 revenue
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 September 30, 2021 revenue of $415.6 million and net income of $9.5 million, or $0.13 per basic and diluted common share. The Company’s Board of Directors declared a quarterly cash dividend of $0.21 per common share, the 73rd consecutive increase since the initiation of dividend payments in 2003.\n\nTed Wahl, Chief Executive Officer, stated, “Our third quarter results reflect the impact of the supply chain disruption, labor availability, and significant inflation in the cost of goods that many industries have experienced. Further, the Delta variant surge, vaccine mandates and a broad workforce exit had an adverse impact on nursing homes and contributed to rapid inflation during the quarter. Despite these challenges, we remained steadfast in our commitment to supporting our customers in caring for their patients and residents, and our entire team rallied together in this effort. I am extremely proud of the hard work and dedication our employees demonstrated this quarter, particularly in the current environment.”\n\nMr. Wahl continued, “In response to these challenges, we are taking decisive action to bring stability and order to the facilities we serve including making additional investments in recruiting, increasing wage rates and premium pay, introducing referral and retention bonuses, and leveraging vendor partnerships to mitigate food supply challenges, just to name a few. While we expect these market conditions to persist in the near term, ultimately we expect that our efforts to secure wage rate and food cost increases from our customers will eliminate the need for these extraordinary actions and related costs.”\n\nMr. Wahl concluded, “Looking ahead, we will continue to closely monitor industry recovery, occupancy trends and further government funding. While the unprecedented environment is a headwind on revenue growth and profitability, we remain confident in the longer-term growth outlook for the Company given our market leadership, efficient operating model and attractive demographics.”\n\nThird Quarter Results\n\nRevenue for the quarter was $415.6 million, with housekeeping & laundry and dining & nutrition segment revenues of $203.4 million and $212.2 million, respectively.\n\nDirect cost ...