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Sep 30, 2022
HCSG Q3 2022 Earnings Report
HCSG's Q3 2022 results reflected ongoing choppiness, but the company executed its strategy to improve customer partnerships and agreements.
Key Takeaways
Healthcare Services Group reported Q3 2022 revenue of $414.5 million and net income of $0.3 million. The company faced challenges within the industry and broader economy, but successfully executed its strategy to improve customer partnerships. The company's Board of Directors declared a quarterly cash dividend of $0.215 per common share.
Revenue for the quarter was $414.5 million.
Net income for the quarter was $0.3 million.
Housekeeping & laundry and dining & nutrition segment revenues were $196.9 million and $217.6 million, respectively.
Direct cost of services was $376.9 million, or 90.9% of revenue.
Forward Guidance
The Company expects 2022 SG&A to approximate 8.5% to 9.5% and remains on track to meet its goal of exiting the year with cost of services in line with its historical target of 86%.
Positive Outlook
- Company remains on track to meet its goal of exiting the year with cost of services in line with its historical target of 86%.
- Successfully executed on our strategy to more favorably position our customer partnerships and agreements.
- Confident that this work will yield improved results in the fourth quarter
- The Company expects 2022 SG&A to approximate 8.5% to 9.5%.
- Maintain the integrity of our existing partnerships, and opportunistically explores prospective new business additions.
Challenges Ahead
- Third quarter results reflect the ongoing and expected choppiness
- Ongoing challenges that remain within our industry and the broader economy.
- Third quarter results were impacted by contract modification actions taken by the Company, resulting in one-time reductions of approximately $9.0 million in revenue and operating income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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