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Dec 31, 2019
HCSG Q4 2019 Earnings Report
Reported Q4 2019 results and declared a quarterly cash dividend of $0.20125 per share.
Key Takeaways
Healthcare Services Group reported Q4 2019 revenue of $447.0 million and net income of $18.9 million, or $0.25 per share. The company's Board of Directors declared a quarterly cash dividend of $0.20125 per common share.
Delivered solid facility-level results and made progress on reassigning account managers to new facilities.
Focused on managing the base business and effectively deploying account managers to new opportunities.
Industry fundamentals continue to improve, with the positive impact of the Patient Driven Payment Model and 2.4% Medicare increase.
Longer term growth outlook remains positive, with significant white space to drive long-term growth.
Forward Guidance
In 2020, the company will continue to prioritize managing the base business, ensuring managers are assigned to new opportunities, and maintaining a disciplined view on growth and credit-related decisions.
Positive Outlook
- Industry fundamentals continue to improve.
- Positive impact of the Patient Driven Payment Model.
- 2.4% Medicare increase.
- More favorable occupancy trends.
- Demand for services remains strong, with significant white space to drive long-term growth.
Challenges Ahead
- Q4 payroll costs remained temporarily higher as the company continues to have excess management capacity.
- Industry continues to work its way through the latter stages of this challenging cycle.
- Approximately $1.5 million of legal and professional fees related to the previously announced SEC matter.
- Reduction in Worker Opportunity Tax Credit (“WOTC”) program credits, primarily due to the historically low unemployment rate and resulting decrease in WOTC-eligible new hires.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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