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Dec 31, 2021
HCSG Q4 2021 Earnings Report
Reported revenue of $420.4 million and net income of $2.1 million.
Key Takeaways
Healthcare Services Group reported Q4 2021 results with revenue of $420.4 million and net income of $2.1 million, or $0.03 per basic and diluted common share. The company is actively modifying service agreements to adjust for inflation and expects these modifications to be completed throughout the first half of 2022.
Revenue for the quarter was $420.4 million.
Net income was $2.1 million, or $0.03 per basic and diluted common share.
The Board of Directors declared a quarterly cash dividend of $0.21125 per common share.
Direct cost of services was reported at $377.2 million, or 89.7%.
Forward Guidance
The Company expects service agreement modifications to be completed throughout the first half of 2022, with a goal of exiting the year with cost of services in line with its historical target of 86%. The Company expects SG&A to approximate 8.5% to 9.5% in the year ahead. The Company expects a 2022 tax rate of 24% to 26%.
Positive Outlook
- Operators have worked through the clinical challenges of both the Delta and Omicron strains, leading to relative stability in industry census since August.
- There is cautious optimism that the availability of staff improves.
- Labor market pressure is expected to stabilize.
- Operators are expected to be able to build back their census in the year ahead.
- The long-term growth outlook for the Company remains strong given market leadership, efficient operating model and attractive demographics.
Challenges Ahead
- Continued margin pressures resulting from workforce availability.
- Inflation.
- Supply chain disruption.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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