Business
Healthcare Services Group, Inc. Reports Q4 2021 Results
BENSALEM, Pa.--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended December 31, 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 December 31, 2021 revenue of $420.4 million and net income of $2.1 million, or $0.03 per basic and diluted common share. The Company’s Board of Directors declared a quarterly cash dividend of $0.21125 per common share, the 74th consecutive increase since the initiation of dividend payments in 2003.\n\nTed Wahl, Chief Executive Officer, stated, “Our fourth quarter results reflect continued margin pressures resulting from workforce availability, inflation and supply chain disruption. We remain actively engaged with our customers to modify our service agreements to adjust for the extraordinary inflation experienced during the second half of 2021, as well account for future inflation on a real-time basis. We expect these 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 our historical target of 86%.”\n\nMr. Wahl concluded, “We are encouraged that we’ve seen relative stability in industry census since August as operators have worked through the clinical challenges of both the Delta and Omicron strains. Having managed through those challenges, we are cautiously optimistic that the availability of staff improves, labor market pressure stabilizes and operators are able to build back their census in the year ahead. We will continue to monitor industry recovery and remain confident that, despite near-term headwinds, the long-term growth outlook for the Company remains strong given our market leadership, efficient operating model and the attractive demographics.”\n\nFourth Quarter Results\n\nRevenue for the quarter was $420.4 million, with housekeeping & laundry and dining & nutrition segment revenues of $200.0 million and $220.4 million, respectively.\n\nDirect cost of services was reported at $377.2 million, or 89.7%. 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 5.7% and 2.1%, respectively.\n\nSelling...