Financial Data and Key Metrics Changes - Revenue for Q3 2025 was reported at $464.3 million, an 8.5% increase year-over-year [7] - Cost of services was reported at $367.9 million, or 79.2% of revenue, with a benefit of $34.2 million related to the ERC [7] - Net income was reported at $43.59 per share, including a $0.39 benefit from the ERC [9] - Cash flow from operations was reported at $71.3 million, adjusted to $87.1 million after accounting for a decrease in payroll accrual [9] Business Line Data and Key Metrics Changes - Environmental services revenue was reported at $211.8 million, while dietary services revenue was $252.5 million [7] - Segment margins for environmental services were reported at 10.7%, and for dietary services at 5.1% [8] Market Data and Key Metrics Changes - The company noted a strong labor market, with skilled nursing job gains significantly outpacing previous years, indicating a recovery towards pre-pandemic levels by mid-2026 [23] - The company identified over 23,000 potential facilities for their services, with less than 15% currently outsourcing environmental services and less than 8% for dietary services [31] Company Strategy and Development Direction - The top three strategic priorities include driving growth through management development, managing costs through operational execution, and optimizing cash flow [6] - The company is focusing on organic growth, strategic acquisitions, and opportunistic share repurchases, with a $50 million share repurchase plan valid through June 2026 [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment, citing strong fundamentals in long-term and post-acute care markets, despite economic uncertainties [5] - The company is well-positioned to capitalize on opportunities due to robust fundamentals and a multi-decade demographic tailwind [39] Other Important Information - The company repurchased $27.3 million of common stock in Q3, bringing year-to-date buybacks to $42 million [12] - The company continues to evaluate M&A opportunities, with a focus on the education sector as a primary target [19] Q&A Session Summary Question: Pipeline of new client wins and future growth - Management noted that Q3 was the sixth consecutive sequential revenue increase, driven by new business wins and high client retention rates [14] Question: Update on education efforts and acquisitions - The company is expanding its focus to include campus-like environments beyond traditional education, with education as a top acquisition target [16][19] Question: Labor market conditions and hiring - The labor market is strong, with expectations to reach pre-pandemic job levels by mid-2026, which supports growth prospects [23][25] Question: Outsourcing trends in Environmental and Dietary Services - There is an increasing acceptance of outsourcing, with the company holding a significant share of the outsourced market [31][33] Question: Update on Genesis HealthCare and facility closures - The company continues to provide services to Genesis facilities without disruption, and the bankruptcy process is proceeding normally [34][36]