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Mar 31, 2022
HCSG Q1 2022 Earnings Report
Reported Q1 2022 results with revenue of $426.8 million and net income of $11.3 million.
Key Takeaways
Healthcare Services Group reported Q1 2022 results with revenue of $426.8 million and net income of $11.3 million, or $0.15 per basic and diluted common share. The company's Board of Directors declared a quarterly cash dividend of $0.2125 per common share, marking the 75th consecutive increase since 2003.
Revenue for the quarter was $426.8 million.
Net income for the quarter was $11.3 million, or $0.15 per basic and diluted common share.
Direct cost of services was reported at $373.3 million, or 87.5% of revenue.
The Board of Directors declared a quarterly cash dividend of $0.2125 per common share.
Forward Guidance
The Company expects service agreement modifications to be completed by the end of Q2, with a goal of exiting the year with cost of services in line with its historical target of 86%. They expect SG&A to approximate 8.5% to 9.5%, with the opportunity for ongoing efficiencies. The Company expects a 2022 tax rate of 24% to 26%.
Positive Outlook
- Service agreement modifications expected to be completed by the end of Q2.
- Goal of exiting the year with cost of services in line with historical target of 86%.
- SG&A expected to approximate 8.5% to 9.5%.
- Opportunity for ongoing efficiencies in SG&A.
- Expected 2022 tax rate of 24% to 26%.
Challenges Ahead
- Industry continues to face workforce availability challenges.
- Industry continues to face inflation challenges.
- Industry continues to face supply chain challenges.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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