Business
Healthcare Services Group, Inc. Reports Q4 2019 Results
Declares Quarterly Cash Dividend of $0.20125 Per Share, the 66th Consecutive Increase Since 2003 Announces Promotion of Andy Kush to Chief Operating Officer
About this update from Healthcare Services Group, Inc.
[{"type":"text","content":"\nDeclares Quarterly Cash Dividend of $0.20125 Per Share, the 66th Consecutive Increase Since 2003\n\n\nAnnounces Promotion of Andy Kush to Chief Operating Officer\n\n BENSALEM, Pa.--(BUSINESS WIRE)--\nHealthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended December 31, 2019 revenue of $447.0 million, net income of $18.9 million, or $0.25 per basic and diluted common share, and cash flow from operations of $13.4 million. Additionally, the Company’s Board of Directors declared a quarterly cash dividend of $0.20125 per common share, the 66th consecutive increase since the initiation of dividend payments in 2003.\n\n\nTed Wahl, Chief Executive Officer, stated, “During the quarter, we were focused on managing the base business and effectively deploying our account managers to new opportunities. That focus paid off, as we delivered solid facility-level results and made progress on reassigning account managers to new facilities. While our Q4 payroll costs remained temporarily higher as we continue to have excess management capacity, we expect these costs to decrease in the coming quarters.”\n\n\nMr. Wahl continued, “In 2020, we’ll continue to prioritize managing the base business and ensuring that our managers are assigned to exciting, new opportunities. We’ll also maintain a disciplined view on growth and credit-related decisions, as the industry continues to work its way through the latter stages of this challenging cycle. We’re seeing industry fundamentals continue to improve, with the positive impact of the Patient Driven Payment Model and 2.4% Medicare increase, both of which took effect October 1 of last year, along with more favorable occupancy trends.”\n\n\nMr. Wahl concluded, “Our longer term growth outlook remains positive, as we believe there is great opportunity for continued expansion. The demand for our services remains strong, with significant white space to drive long-term growth. We remain committed to returning capital to shareholders, as evidenced by our stable and growing dividend, and creating value for all stakeholders.”\n\n\nFourth Quarter Results\n\n\nRevenue for the quarter was $447.0 million, with dining & nutrition and housekeeping & laundry segment revenues of $224.9 million and $222.1 million, respectively. During the quarter, new business additions partially offse...