Healthcare Services Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Healthcare Services Group Inc. has filed its Q1 2024 10-Q report, detailing financial performance and position as of March 31, 2024.</b>

AI Summary

HEALTHCARE SERVICES GROUP INC (HCSG) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. Company's fiscal year ends on December 31st. Primary business address is 3220 Tillman Drive, Suite 300, Bensalem, PA 19020. Reported financial data for Q1 2024 and comparative periods.

Why It Matters

For investors and stakeholders tracking HEALTHCARE SERVICES GROUP INC, this filing contains several important signals. This 10-Q filing provides the latest financial snapshot of Healthcare Services Group Inc., crucial for investors and analysts tracking the company's performance in the healthcare services sector. The detailed financial statements and disclosures within the report offer insights into revenue, expenses, assets, and liabilities, which are key indicators of the company's operational health and strategic direction.

Risk Assessment

Risk Level: medium — HEALTHCARE SERVICES GROUP INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a publicly traded company, which inherently carries market and operational risks typical for the healthcare services industry, but does not highlight any immediate, severe financial distress or new, significant legal issues.

Analyst Insight

Monitor the detailed financial statements within the 10-Q for trends in revenue, profitability, and debt levels to assess the company's ongoing financial health and operational efficiency.

Key Numbers

• 2024-03-31 — Report Date (Conformed period of report)
• 2024-04-26 — Filing Date (As of date)
• 2024-01-01 — Quarter Start Date (Reporting period start)
• 2023-03-31 — Prior Year Q1 End Date (Comparative period)

Key Players & Entities

• HEALTHCARE SERVICES GROUP INC (company) — Filer name
• Bensalem, PA (location) — Business and mailing address city and state
• 2159381661 (phone) — Business phone number
• Genesis Healthcare Inc. (company) — Customer concentration risk mention

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces customer concentration risk, specifically mentioning Genesis Healthcare Inc., which could impact revenue if this major customer's business declines.

Industry Context

Healthcare Services Group Inc. operates within the healthcare services sector, specifically focusing on nursing and personal care facilities.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the filing of quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze revenue trends and customer concentration risks, particularly related to Genesis Healthcare Inc.
2. Review the balance sheet for changes in assets, liabilities, and equity compared to prior periods.
3. Examine the cash flow statement for insights into operational, investing, and financing activities.

Key Dates

• 2024-03-31: End of Reporting Period — Marks the end of the fiscal quarter for which financial results are reported.
• 2024-04-26: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the quarterly update for the period ending March 31, 2024, providing the latest financial performance and position compared to previous filings.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value HCSG Nasdaq Global Select Mar

Filing Documents

• hcsg-20240331.htm (10-Q) — 1164KB
• ex311section302certificati.htm (EX-31.1) — 10KB
• ex312section302certificati.htm (EX-31.2) — 10KB
• ex321section906certificati.htm (EX-32.1) — 8KB
• hcsg-20240331_g1.jpg (GRAPHIC) — 210KB
• 0000731012-24-000065.txt (&nbsp;) — 8746KB
• hcsg-20240331.xsd (EX-101.SCH) — 58KB
• hcsg-20240331_cal.xml (EX-101.CAL) — 104KB
• hcsg-20240331_def.xml (EX-101.DEF) — 260KB
• hcsg-20240331_lab.xml (EX-101.LAB) — 756KB
• hcsg-20240331_pre.xml (EX-101.PRE) — 526KB
• hcsg-20240331_htm.xml (XML) — 1346KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 PART II Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults Upon Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 36

SIGNATURES

SIGNATURES 37 Table of Contents CAUTIONARY STATEMENT REGARDING 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 business and industry, and our beliefs and assumptions. Words such as "believes," "anticipates," "plans," "expects," "estimates," "will," "goal," and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by us that any of our plans will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such forward-looking information is also subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, risks arising from our providing services to the healthcare industry and primarily providers of long-term care; the impact of and future effects of the COVID-19 pandemic or other potential pandemics; having a significant portion of our consolidated revenues contributed by one customer during the three months ended March 31, 2024; credit and collection risks associated with the healthcare industry; the impact of bank failures; our claims experience related to workers' compensation and general liability insurance (including any litigation claims, enforcement actions, regulatory actions and investigations arising from personal injury and loss of life related to COVID-19); the effects of changes in, or interpretations of laws and regulations governing the healthcare industry, our workforce and services provided, including state and local regulations pertaining to the taxability of our services and other labor-related matters such as minimum wage increases; the Company's expec

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Healthcare Services Group, Inc. Consolidated Balance Sheets (in thousands, except per share amounts) March 31, 2024 December 31, 2023 ASSETS: (unaudited) Current assets: Cash and cash equivalents $ 29,288 $ 54,330 Restricted cash equivalents 24,695 — Marketable securities, at fair value 75,618 93,131 Accounts and notes receivable, less allowance for doubtful accounts of $ 91,868 and $ 87,250 as of March 31, 2024 and December 31, 2023, respectively 407,140 383,509 Inventories and supplies 18,042 18,479 Prepaid expenses and other assets 25,631 22,247 Total current assets 580,414 571,696 Property and equipment, net 29,190 28,774 Goodwill 75,529 75,529 Other intangible assets, less accumulated amortization of $ 37,228 and $ 36,557 as of March 31, 2024 and December 31, 2023, respectively 11,456 12,127 Notes receivable — long–term portion, less allowance for doubtful accounts of $ 3,720 and $ 4,449 as of March 31, 2024 and December 31, 2023, respectively 23,287 24,832 Deferred compensation funding, at fair value 44,269 40,812 Deferred tax assets 35,434 35,226 Other long-term assets 4,301 1,656 Total assets $ 803,880 $ 790,652 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 72,916 $ 83,224 Accrued payroll and related taxes 38,338 56,142 Other accrued expenses and current liabilities 21,931 21,179 Borrowings under line of credit 40,000 25,000 Income taxes payable 11,759 7,201 Deferred compensation liability — short-term 1,293 1,501 Accrued insurance claims 23,138 22,681 Total current liabilities 209,375 216,928 Accrued insurance claims — long-term 62,796 61,697 Deferred compensation liability — long-term 44,271 41,186 Lease liability — long-term 10,590 11,235 Other long-term liabilities 2,267 2,990 Commitments and contingencies (Note 14) STOCKHOLDERS' EQUITY: Common stock, $ 0.01 par value; 100,000 shares authorized; 76,533 and 76,329 shares issued, and 73,64

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1—Description of Business and Significant Accounting Policies Nature of Operations Healthcare Services Group, Inc. (the "Company") provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments predominantly to clients within the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although the Company does not directly participate in any government reimbursement programs, the Company's customers receive government reimbursements related to Medicare and Medicaid. Therefore, the Company's customers are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. The Company provides services primarily pursuant to full service agreements with its customers. In such agreements, the Company is responsible for the day-to-day management of its employees located at the customers' facilities, as well as for the provision of certain supplies. The Company also provides services on the basis of management-only agreements for a limited number of customers. In a management-only agreement, the Company provides management and supervisory services while the customer facility retains payroll responsibility for the non-supervisory staff. The agreements with customers typically provide for a renewable one year service term, cancellable by either party upon 30 to 90 days' notice after an initial period of 60 to 120 days. The Company is organized into two reportable segments: housekeeping, laundry, linen and other services ("Housekeeping"), and dietary department services ("Dietary"). Housekeeping consists of managing the customers' housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a customer's facility

View Full Filing

View this 10-Q filing on SEC EDGAR