Revenue Performance - Consolidated revenues increased by 4.1% to $428.1 million for the three months ended September 30, 2024, compared to $411.4 million for the same period in 2023[144]. - Consolidated revenues increased to $1,277.9 million for the nine months ended September 30, 2024, compared to $1,247.5 million for the same period in 2023, representing a 2.4% increase[162]. - Housekeeping revenues increased by 0.1% to $191.1 million, while Dietary revenues increased by 7.5% to $237.0 million for the three months ended September 30, 2024[140][145]. - Dietary revenues increased by 4.9% to $705.2 million, while Housekeeping revenues decreased by 0.5% to $572.7 million during the nine months ended September 30, 2024[159][163]. Cost Management - Consolidated costs of services provided decreased by 3.2% to $364.7 million for the three months ended September 30, 2024, compared to $376.9 million for the same period in 2023[146]. - Consolidated costs of services provided increased by 0.1% to $1,108.4 million for the nine months ended September 30, 2024, compared to $1,107.5 million for the same period in 2023[164]. - Costs of services provided for Housekeeping decreased to 93.6% of Housekeeping revenues, while Dietary costs decreased to 94.7% of Dietary revenues for the three months ended September 30, 2024[148]. - Housekeeping costs as a percentage of Housekeeping revenues were 91.7% for the nine months ended September 30, 2024, compared to 91.8% for the same period in 2023[167]. - Dietary costs as a percentage of Dietary revenues decreased to 93.6% for the nine months ended September 30, 2024, from 95.7% in the corresponding period in 2023[167]. Expenses - Selling, general and administrative expenses increased by 20.1% to $46.9 million for the three months ended September 30, 2024, compared to $39.0 million for the same period in 2023[150][152]. - Selling, general and administrative expenses increased by 14.7% to $138.2 million for the nine months ended September 30, 2024, compared to $120.5 million for the same period in 2023[169]. Income and Taxation - Investment and other income, net was a gain of $3.8 million for the three months ended September 30, 2024, compared to a gain of $0.4 million in the corresponding 2023 period[153]. - Investment and other income, net was a gain of $12.1 million for the nine months ended September 30, 2024, compared to a gain of $7.0 million for the same period in 2023, reflecting a 72.3% increase[172]. - The effective tax rate for the three months ended September 30, 2024, was 25.4%, compared to a benefit of 20.3% for the same period in 2023[156]. - For the nine months ended September 30, 2024, the company recognized a provision for income taxes of $10.6 million, with a 27.8% effective tax rate, compared to $5.9 million and a 28.3% effective tax rate for the same period in 2023[174]. Financial Position - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $103.8 million, down from $147.5 million at December 31, 2023, while working capital increased to $380.9 million from $354.8 million[175]. - The company reported net cash used in operating activities of $(5,402) thousand for the nine months ended September 30, 2024, compared to $(5,947) thousand for the same period in 2023[176]. - The company had a $300 million bank line of credit, with $25 million drawn as of September 30, 2024, and maintained a funded debt to EBITDA ratio of 0.63, well below the 3.50 covenant requirement[181]. - The company expects to remain in compliance with its financial covenants and believes existing liquidity will be adequate for future operational needs[182]. Operational Insights - The company provided services to approximately 2,600 facilities throughout the continental United States as of September 30, 2024[134]. - The bad debt provision as a percentage of consolidated revenues was 0.0% for the three months ended September 30, 2024, compared to 3.4% in the same period in 2023[147]. - Bad debt provision increased to 2.9% of consolidated revenues for the nine months ended September 30, 2024, compared to 2.6% for the same period in 2023, due to the Chapter 11 bankruptcy of LaVie[165]. Capital Expenditures and Share Repurchase - Capital expenditures for 2024 are estimated to be between $5.0 million and $7.0 million, with $4.9 million spent through September 30, 2024[183]. - The company repurchased 0.4 million shares of common stock for $4.0 million during the nine months ended September 30, 2024, compared to 0.5 million shares for $6.2 million in the same period of 2023[180]. Internal Controls and Legal Proceedings - The company identified a material weakness in internal controls related to accrued payroll liabilities, which has since been remediated[192]. - The company is involved in various legal proceedings but does not anticipate any material adverse effects on its consolidated financial condition or liquidity[197].

Financial Data and Key Metrics Changes - For Q3 2024, the company reported revenue of $428.1 million, net income of $14 million, and diluted EPS of $0.19, with adjusted cash flow from operations at $19 million [3][6][7] - The company achieved over 98.5% collections for the quarter, contributing to the strong adjusted cash flow [10] - The expected revenue range for Q4 is $430 million to $440 million [6] Business Line Data and Key Metrics Changes - Housekeeping and laundry revenue was $191.1 million with a margin of 6.4%, while dining and nutrition revenue was $237 million with a margin of 5.3% [6] - Cost of services was reported at $364.7 million, or 85.2%, with a goal to manage costs in the 86% range [6] Market Data and Key Metrics Changes - Industry fundamentals are improving, with occupancy rates at 79.8%, nearing pre-pandemic levels [4] - The industry has added over 100,000 jobs since the beginning of 2023, indicating a positive trend in workforce availability [4] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving growth, managing costs, and optimizing collections, which are expected to enhance profitability and cash flow through 2025 and beyond [5] - The company sees opportunities in higher acuity assisted living facilities and behavioral health, with a focus on expanding dining services in these markets [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets for the second half of the year, with positive momentum heading into Q4 and 2025 [14][16] - The company anticipates that the improving macroeconomic backdrop will strengthen collections and overall performance [10][11] Other Important Information - The company has repurchased over 350,000 shares, totaling $4 million, in 2024, with a remaining authorization for 6.1 million shares [7] - Food inflation was reported at 40 basis points for the quarter, indicating a slight increase compared to previous periods [51] Q&A Session Summary Question: Insights on cash flow visibility for the full year target - Management achieved over 98.5% collections, contributing to strong adjusted cash flow, with expectations for continued strength in Q4 due to seasonality and prior payment delays [10][11] Question: Days of payroll accrual in Q3 and Q4 - Q3 had nine days of payroll accrual, while Q4 is expected to have three days [12] Question: Revenue pacing and growth expectations for 2025 - Management is optimistic about growth in 2025, with a strong pipeline and demand for services [14][16] Question: Demand for higher acuity assisted living facilities - Management sees significant opportunities in higher acuity assisted living and is well-positioned to expand in this market [22][25] Question: Variability in skilled nursing facility client skill mix - There is variability in client focus, with some operators emphasizing short-term rehab stays while others cater to long-term care [26] Question: SG&A management and efficiency - Management aims to reduce SG&A as a percentage of revenue while continuing to invest in employee engagement and technology [28][29] Question: Education segment seasonality - The education segment experiences seasonality, but it is still a small part of total revenue [30] Question: Impact of recent weather events on operations - The company managed to avoid major disruptions during recent storms, demonstrating effective planning and execution [33] Question: Labor market conditions and staffing - The labor market is stabilizing, with improvements in job postings and wage growth, although challenges remain in rural markets [48][50] Question: Capital deployment and inorganic growth opportunities - The company remains open to inorganic growth opportunities and continues to view share repurchases as part of its capital allocation strategy [54][55]

Core Viewpoint - Healthcare Services (HCSG) reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.17 per share a year ago, indicating a positive earnings surprise of 18.75% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates in all four of the last quarters [1] - The revenue for the quarter ended September 2024 was $428.15 million, slightly missing the Zacks Consensus Estimate by 0.20%, but up from $411.39 million year-over-year [1] - Over the last four quarters, the company has topped consensus revenue estimates two times [1] Group 2: Stock Performance and Outlook - Healthcare Services shares have declined approximately 0.8% since the beginning of the year, contrasting with the S&P 500's gain of 22.7% [2] - The future stock price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook [2][3] Group 3: Estimate Revisions and Industry Context - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $436.2 million, and for the current fiscal year, it is $0.56 on revenues of $1.71 billion [4] - The Zacks Industry Rank places the Business - Services sector in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - Another company in the same industry, SPS Commerce, is expected to report earnings of $0.83 per share, reflecting a year-over-year increase of 10.7% [5]

Exhibit 99.1 HCSG Reports Q3 2024 Results Delivers QoQ and YoY Growth In Revenue, Earnings and Cash Flow • Revenue of $428.1 million, in line with expectations. • Net income and diluted EPS of $14.0 million and $0.19. • Reported and adjusted cash flow from operations of $4.3 million and $19.0 million. • Reaffirms Q4 revenue estimate of $430.0 to $440.0 million and FY 2024 cash flow forecast of $40.0 to $55.0 million. BENSALEM, PA--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) today reporte ...

| --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------|----------------------------|-----------------------------------------------------------|------------------------------------|----------------------|------------| | The following table summarizes information about the SERP during the \n1 SERP expense | six months ended \n$ | June 30, 2024 \nSix Months \n2024 \n(in \n355 | and \n Ended \nthousands) \n $ | 2023: \n ...

Healthcare Services Group, Inc. (NASDAQ:HCSG) Q2 2024 Earnings Conference Call July 24, 2024 8:30 AM ET Company Participants Ted Wahl – President and Chief Executive Officer Matt McKee – Chief Communication Officer Conference Call Participants Sean Dodge – RBC Bill Sutherland – Benchmark Andrew Wittmann – Baird A.J. Rice – UBS Jack Senft – William Blair Operator Good morning and welcome to HCSG Inc's Second Quarter 2024 Earnings Call. All participants are now in a listen-only mode. After the speakers' remar ...

HCSG Reports Q2 2024 Results Raises Second Half 2024 Revenue Estimates, Reaffirms Full-Year 2024 Cash Flow Forecast Exhibit 99.1 Ted Wahl, Chief Executive Officer, stated, "Our field-based team delivered strong service execution leading to another successful quarter of managing cost of services, excluding CECL, within our targeted range. Additionally, we achieved over 96% cash collections during the quarter, which, while short of our target, showed improvement compared to last quarter and the same period la ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-12015 For the quarterly period ended March 31, 2024 HEALTHCARE SERVICES GROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) OR Pennsylvania 23-2018365 (I.R.S. Employer Identification No.) 322 ...

Healthcare Services Group, Inc. (NASDAQ:HCSG) Q1 2024 Earnings Conference Call April 24, 2024 8:30 AM ET Company Participants Ted Wahl - President & Chief Executive Officer Matt McKee - Chief Communication Officer Conference Call Participants Bill Sutherland - The Benchmark Company Sean Dodge - RBC Capital Markets Andy Wittmann - Baird Jack Senft - William Blair Operator Hello. Welcome to Healthcare Services Group 2024 First Quarter Earnings Conference Call. The matters discussed on today's conference call ...

Healthcare Services (HCSG) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this provider of housekeeping, laundry and dietary services to health care facilities would post earnings of $0.16 per share when it actually produced earnings of $0. ...