Healthcare Services Group, Inc. · NASDAQ:HCSG
Healthcare Services — Q1 2025 Earnings Presentation
14 slides from Healthcare Services's earnings presentation, Apr 23, 2025
Slide 1: Investor Overview 2025
Investor Overview 2025 SERVICES GROUP
Slide 2: Forward Looking Statements
Forward Looking Statements This report and documents incorporated by reference into it may contain forward-looking statements within the meaning of federal securities laws, which are not historical facts but rather are based on current expectations, estimates and projections about our busine ss and
Slide 3: Healthcare Services Group at a Glance
Healthcare Services Group at a Glance Delivering exceptional services to the healthcare industry for nearly five decades. Healthcare Services Group (HCSG) is the leading partner in healthcare, managing environmental and dietary services. By the numbers Facilities Serviced 48 $1.7B >2.5K Years in Bus
Slide 4: A Critical Service Provider for the Growing, Aging Population
A Critical Service Provider for the Growing, Aging Population 85+ Population Growth Projections (2022 – 2050)1 20 168% 170M+ 11X 2022-2050 AMERICANS WILL HAVE AT THE RATE THE 85+ POPULATION 15 LEAST ONE CHRONIC IS GROWING COMPARED CONDITION BY 2030 2 TO THE TOTAL U.S. POPULATION3 10 11M+ 1,454 AMERI
Slide 5: Market Dominance
Market Dominance >23,000 facility addressable market, with a long runway of opportunity. Environmental Services Dietary Services < 15% of the addressable market currently outsource1 < 8% of the addressable market currently outsource1 >80% Share >80% HCSG Share 80% Ma rket Sha re Managed In-House Out
Slide 6: Delivering Long-Term Shareholder Value
Delivering Long-Term Shareholder Value Accelerating Expansive geographical Market leading demographic demand footprint that can absorb customer retention capacity of >90% Recurring revenues Strong balance sheet Untapped organic growth levers 6
Slide 7: Delivering Exceptional Services
Delivering Exceptional Services Environmental Services Dietary Services housekeeping & laundry services dining & registered dietitian services $765M $1.7B $950M REVENUE REVENUE TOTAL REVENUE Offered since 1976 Offered since 1997 7 7
Slide 8: Value Proposition
Value Proposition To achieve superior outcomes for our clients, HCSG leverages its resources and expertise. • Achieve high operating standards through Operational Customer objective performance measurements and systems adherence, as implemented by our excellence experience field-based management tea
Slide 9: Strategic Priorities to Deliver Superior Results
Strategic Priorities to Deliver Superior Results Driving Growth The Year Ahead: 2025 Outlook Executing on our organic growth strategy by developing management candidates, converting sales pipeline Mid-single digit revenue growth opportunities, and retaining our existing facility business. Rising dem
Slide 10: Poised for Growth
Poised for Growth Strong, resilient business successfully building on momentum against the backdrop of an ongoing industry recovery. Revenue Adjusted EBITDA1 Operating Cash Flow2 $1.72B $1.67B $79.3M $76.2M $38.1M $34.4M $32.1M $423M $448M $30.6M $27.3M ($9.2M) 2023 2024 1Q2024 1Q2025 2023 2024 1Q20
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities Optimizing capital allocation to maximize shareholder returns. Organic Growth Inorganic Growth Opportunistic Share Drivers Opportunities Repurchase • Sustained investments in • Increased, proactive focus on • Opportunistic share repurchases as a management development,
Slide 12: Commitment to Scalability
Commitment to Scalability Ensuring a positive impact is core to delivering exceptional services. Fostering fulfillment in our communities Minimizing the environmental impact of our services Celebrating diversity 2024, 2023, 2022 2025, 2024 2024, 2023 2024, 2023 2023 among our teams C o m mit te d t
Slide 13: Reconciliation Tables
Healthcare SERVICES GROUP Reconciliation Tables
Slide 14: Reconciliations of Non-GAAP Financial Measures
HEALTHCARE SERVICES GROUP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (Unaudited) oti ; . For the Three Months Ended Reconciliation of GAAP net income to EBITDA and adjusted March 31 EBITDA (in thousands) larch 31, 2025 2024 GAAP net income $ 17.228 $ 15.309 Income tax provision 6.666 6.005
Healthcare Services Group — Q1 2025 Earnings Presentation on 6ix