HCSG Files Q3 2024 10-Q

TL;DR

HCSG's Q3 2024 10-Q is in: check financials for latest performance.

AI Summary

Healthcare Services Group Inc. (HCSG) filed its 10-Q for the period ending September 30, 2024. The company reported financial results for the third quarter of 2024, detailing its revenues, expenses, and net income. Specific financial figures and comparative data from prior periods are included within the filing.

Why It Matters

This filing provides investors with the latest financial performance data for Healthcare Services Group Inc., crucial for understanding the company's operational health and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal significant performance trends or risks for Healthcare Services Group Inc.

Key Numbers

• 20240930 — Fiscal Period End (Third quarter of 2024)
• 20241025 — Filing Date (Date the report was submitted)

Key Players & Entities

• HEALTHCARE SERVICES GROUP INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241025 (date) — Filing Date
• BENSALEM, PA (location) — Company Headquarters

FAQ

Key Financial Figures

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

Filing Documents

• hcsg-20240930.htm (10-Q) — 1663KB
• ex311section302certificati.htm (EX-31.1) — 10KB
• ex312section302certificati.htm (EX-31.2) — 10KB
• ex321section906certificati.htm (EX-32.1) — 8KB
• hcsg-20240930_g1.jpg (GRAPHIC) — 210KB
• 0000731012-24-000142.txt ( ) — 10601KB
• hcsg-20240930.xsd (EX-101.SCH) — 61KB
• hcsg-20240930_cal.xml (EX-101.CAL) — 106KB
• hcsg-20240930_def.xml (EX-101.DEF) — 294KB
• hcsg-20240930_lab.xml (EX-101.LAB) — 800KB
• hcsg-20240930_pre.xml (EX-101.PRE) — 567KB
• hcsg-20240930_htm.xml (XML) — 1838KB

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 31 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 42 PART II Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 44

SIGNATURES

SIGNATURES 45 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; having a significant portion of our consolidated revenues contributed by one customer during the nine months ended September 30, 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; 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 expectations with respect to selling, general and administrative expense; the impacts of past or future cyber attacks or breaches; and the risk factors described in Part I of our Form 10-K for the fiscal year ended December 31, 2023 under "Government

— 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) September 30, 2024 December 31, 2023 ASSETS: (unaudited) Current assets: Cash and cash equivalents $ 27,055 $ 54,330 Restricted cash equivalents 1,084 — Marketable securities, at fair value 76,776 93,131 Restricted marketable securities, at fair value 25,085 — Accounts and notes receivable, less allowance for doubtful accounts of $ 95,985 and $ 87,250 as of September 30, 2024 and December 31, 2023, respectively 406,495 383,509 Inventories and supplies 17,046 18,479 Prepaid expenses and other assets 24,577 22,247 Total current assets 578,118 571,696 Property and equipment, net 28,435 28,774 Goodwill 75,529 75,529 Other intangible assets, less accumulated amortization of $ 38,571 and $ 36,557 as of September 30, 2024 and December 31, 2023, respectively 10,113 12,127 Notes receivable — long–term portion, less allowance for doubtful accounts of $ 2,013 and $ 4,449 as of September 30, 2024 and December 31, 2023, respectively 22,908 24,832 Deferred compensation funding, at fair value 48,647 40,812 Deferred tax assets 36,486 35,226 Other long-term assets 5,605 1,656 Total assets $ 805,841 $ 790,652 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 76,636 $ 83,224 Accrued payroll and related taxes 42,333 56,142 Other accrued expenses and current liabilities 25,564 21,179 Borrowings under line of credit 25,000 25,000 Income taxes payable 4,500 7,201 Deferred compensation liability — short-term 1,661 1,501 Accrued insurance claims 21,510 22,681 Total current liabilities 197,204 216,928 Accrued insurance claims — long-term 61,520 61,697 Deferred compensation liability — long-term 48,915 41,186 Lease liability — long-term 9,029 11,235 Other long-term liabilities 425 2,990 Commitments and contingencies (Note 15) STOCKHOLDERS' EQUITY: Common stock, $ 0.01 par value;

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