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Healthcare Services Group(HCSG) - 2024 Q4 - Annual Results
HCSGHealthcare Services Group(HCSG)2025-02-12 12:02

Revenue Performance - Q4 2024 revenue was reported at 437.8million,anincreasefrom437.8 million, an increase from 423.8 million in Q4 2023, representing a growth of 3.4% year-over-year[19]. - The company expects mid-single digit revenue growth in 2025, with Q1 revenue projected to be between 440.0millionand440.0 million and 450.0 million[6]. Net Income and Earnings Per Share - Net income for Q4 2024 was 11.9million,withdilutedEPSof11.9 million, with diluted EPS of 0.16, compared to 23.5millionand23.5 million and 0.32 in Q4 2023, indicating a decrease of 49.3% in net income[19]. - GAAP net income for Q4 2024 was 11,920,000,adecreasefrom11,920,000, a decrease from 23,508,000 in Q4 2023[22]. - For the year ended December 31, 2024, GAAP net income was 39,471,000,anincreasefrom39,471,000, an increase from 38,386,000 in 2023[22]. Cash Flow - Cash flow from operations for Q4 2024 was 36.2million,whileactualcashflow,excludingpayrollaccrualchanges,was36.2 million, while actual cash flow, excluding payroll accrual changes, was 27.0 million[6]. - GAAP cash flows provided by operations for Q4 2024 were 36,204,000,adecreasefrom36,204,000, a decrease from 49,445,000 in Q4 2023[22]. - Adjusted cash flows provided by operations for Q4 2024 were 26,957,000,slightlydownfrom26,957,000, slightly down from 27,882,000 in Q4 2023[22]. Cost Management - The cost of services for Q4 2024 was reported at 379.2million,representing86.6379.2 million, representing 86.6% of revenue, with a goal to manage this cost in the 86% range for 2025[7]. - Selling, general and administrative expenses (SG&A) were reported at 44.8 million, or 10.1% of revenue, with a target to reduce this to between 8.5% and 9.5% in 2025[7]. Assets and Securities - As of the end of Q4 2024, the company had cash and marketable securities totaling 135.8millionanda135.8 million and a 500.0 million credit facility[5]. - Total assets as of December 31, 2024, were 802.8million,anincreasefrom802.8 million, an increase from 790.7 million at the end of 2023[20]. Profitability and Strategic Goals - The company aims to enhance profitability and maximize cash flow through strategic execution and strong business fundamentals into 2025 and beyond[3]. - The company has repurchased over 5.0millionofitscommonstockin2024,continuingasharerepurchaseprograminitiatedinFebruary2023[6].DepreciationandAmortization−TotaldepreciationandamortizationfortheyearendedDecember31,2024,was5.0 million of its common stock in 2024, continuing a share repurchase program initiated in February 2023[6]. Depreciation and Amortization - Total depreciation and amortization for the year ended December 31, 2024, was 14,585,000, compared to 14,344,000in2023[22].−Theright−of−useassetdepreciationforQ42024was14,344,000 in 2023[22]. - The right-of-use asset depreciation for Q4 2024 was 2,000,000, compared to 1,800,000inQ42023[22].AdjustedEBITDA−AdjustedEBITDAforQ42024was1,800,000 in Q4 2023[22]. Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was 20,177,000, compared to 38,752,000inQ42023,representingadeclineof48.038,752,000 in Q4 2023, representing a decline of 48.0%[22]. - Adjusted EBITDA as a percentage of revenue for Q4 2024 was 4.6%, down from 9.1% in Q4 2023[22]. Payroll Adjustments - The company reported a decrease in accrued payroll adjustments, reflecting changes of (9,247,000) for Q4 2024 and $(21,563,000) for Q4 2023[22]. - The company anticipates continuing to retain 100% of the funds received from SERP participants, impacting future cash flows[22].