What is the market's earnings forecast for Healthcare Services Group next quarter?

What guidance did Healthcare Services Group's management provide for the next earnings period?

What factors drove the changes in Healthcare Services Group's revenue and profit?

What is the revenue and EPS growth rate for Healthcare Services Group year over year?

What were the key takeaways from Healthcare Services Group's earnings call?

What were the key takeaways from Healthcare Services Group’s earnings call?

What is Healthcare Services Group's gross profit margin?

What is Healthcare Services Group's latest dividend and current dividend yield?

- **Revenue growth driven by new client wins and high retention rates**: Q3 revenue of $464.3 million, an 8.5% year-over-year increase.
- **Operational excellence in navigating regulatory changes**: The ABA and other policy shifts have created a stable reimbursement environment.
- **Accelerating outsourcing trends**: Less than 15% of the market is currently outsourced, with significant growth potential.
- **Strong cash flow and balance sheet management**: $71.3 million in cash flow from operations, excluding $15.8 million in payroll accruals.
- **Share repurchase activity**: $27.3 million in Q3, with $42 million year-to-date.
- **M&A pipeline development**: Focused on education-related end markets.
- **Genesis Healthcare bankruptcy process**: No material impact on HCSG's operations.
- **Labor market strength**: The health care sector is leading job gains.


**【CEO Summary Section】**
- The company reported Q3 revenue of $464.3 million, an 8.5% year-over-year increase, driven by new client wins and high retention rates.
- Management emphasized the importance of operational excellence in navigating the evolving business environment, including the impact of the ABA and other regulatory changes.
- The company's strategic priorities for Q4 include driving organic growth, converting sales pipeline opportunities, and retaining existing business.

**【CFO Financial Commentary】**
- GAAP net income was $43 million, with diluted earnings per share of $0.59, reflecting a $0.39 benefit from ERC-related receipts.
- Cost of services was $367.9 million, or 79.2% of revenue, excluding $34.2 million in ERC-related benefits.
- SG&A expenses were $50.5 million, or 10.9% of revenue, with $2.1 million in professional fees related to ERC.
- Cash flow from operations was $71.3 million, excluding $15.8 million in payroll accruals.

**【Q&A Key Highlights】**
- Ted Wahl noted that outsourcing trends in Environmental and Dietary Services are accelerating, with less than 15% of the market currently outsourced.
- The company is actively evaluating M&A opportunities, with a focus on education-related end markets.
- The Genesis Healthcare bankruptcy process is ongoing, with no material impact on HCSG's operations.
- The labor market remains strong, with the health care sector leading job gains.
- The company repurchased $27.3 million of its common stock in Q3, under a $50 million share repurchase plan.


Healthcare Services Group, Inc. (HCSG) Q3 2025 Earnings Call Transcript

- **Strong Organic Growth**: 7.6% YoY revenue growth to $458.5M, despite $61.2M Genesis charge.
- **Cash Flow Boost**: 2025 cash flow forecast raised to $70M-$85M, up from $60M-$75M.
- **Share Buyback**: $50M repurchase plan signals confidence in long-term growth.
- **Industry Tailwind**: Positive demographic trends and ABA provisions ($50B rural investment, staffing moratorium) support stability.
- **Risk Management**: 90%+ client retention and disciplined cost control (SG&A target 9.5%-10.5%).

**【CEO Summary Section】**
- **Q2 Revenue Growth**: 7.6% YoY to $458.5M, driven by organic growth despite a $61.2M non-cash charge from Genesis restructuring.
- **Strategic Priorities**: Focus on growth (new client wins, 90%+ retention), cost management, and cash flow optimization.
- **Share Buyback Plan**: $50M repurchase over 12 months, reflecting confidence in long-term growth potential.
- **Industry Outlook**: Positive demographic tailwind and constructive view on the One Big Beautiful Bill (ABA), including $50B rural investment and 10-year staffing moratorium.

**【CFO Financial Commentary】**
- **Q2 Financials**: GAAP net loss of $32.4M ($0.44 EPS) due to Genesis charge; adjusted cash flow from operations $28.8M.
- **Guidance Update**: Raised 2025 cash flow forecast to $70M-$85M (excl. payroll accrual), up from $60M-$75M.
- **Balance Sheet**: $164.1M in cash and marketable securities; undrawn credit facility.
- **Cost Management**: Targeting SG&A in 9.5%-10.5% range, with long-term goal of 8.5%-9.5%.

**【Q&A Highlights】**
- **Genesis Restructuring**: Full write-off by Q3; recovery uncertain but prioritized; no impact on facility operations.
- **Growth Momentum**: 5th consecutive sequential revenue increase; Q3 guidance of $455M-$465M reflects strong pipeline.
- **Food Inflation**: CPI at 60bps; contractual pass-through mitigates costs; 20bps Q2 food at home inflation.
- **Macro Risks**: Moderated Medicaid growth in some states, but industry fundamentals (occupancy, staffing) remain strong.
- **Cross-Selling**: 50% EVS clients without dining services; 2x revenue impact on same-store sales.
- **Education Segment**: <5% of revenue, but positive early returns with fragmented market opportunity.

Healthcare Services Group, Inc. (HCSG) Q2 2025 Earnings Call Transcript

- **Q1 Revenue Record**: $447.7M (+5.7% YoY), best in 5 years, with $32.1M cash flow (excl. accrual). Collections > revenue, driven by new clients.
- **Cost Efficiency**: SG&A at 10.4% (target 9.5%-10.5%), cost of services at 84.8% (2025 target 86%). 
- **Cash Flow Boost**: 2025 guidance raised to $60-75M, up from $45-60M, reflecting improved collections.
- **DSO Improvement**: 78 days (vs. 88 days YoY), with AR declining despite revenue growth.
- **Liquidity Strength**: $143.9M cash, undrawn $500M credit facility, and interest expense reduction.

**【CEO Opening Remarks】**
- **Record Q1 Performance**: Revenue of $447.7M (+5.7% YoY), best quarterly results in 5 years, with cash flow from operations at $32.1M (excluding payroll accrual). Collections exceeded revenue, driven by new client wins and organic growth.
- **Strategic Priorities**: 
  1. Growth through developing management candidates, converting sales pipeline, and retaining existing business. 
  2. Cost management via field-based operations and prudent enterprise spending. 
  3. Cash flow optimization through increased payment frequency, contract terms, and working capital discipline.
- **Industry Outlook**: Positive trends in workforce availability, occupancy, and stable reimbursement. Regulatory relief from CMS staffing rule repeal, with cautious optimism on new administration policies.

**【CFO Financial Breakdown】**
- **Revenue by Segment**: 
  - Environmental Services: $196.3M (10.8% margin) 
  - Dietary Services: $251.3M (7.6% margin) 
- **Cost Management**: 
  - Cost of services at 84.8% (target 86% for 2025). 
  - SG&A at 10.4% (near-term target 9.5%-10.5%), with long-term goal of 8.5%-9.5%. 
- **Cash Flow Update**: Raised 2025 cash flow guidance to $60-75M (from $45-60M), driven by improved collections and working capital management. 
- **Non-GAAP Note**: $12.2M CARES Act credit benefit not reflected in income statement.

**【Vikas Singh: Balance Sheet & Liquidity】**
- **Cash Position**: $143.9M in cash and marketable securities, with undrawn $500M credit facility. 
- **DSO Improvement**: 78 days (vs. 88 days YoY), with sequential revenue growth and declining AR balances. 
- **Interest Optimization**: Rebalanced cash and securities to reduce interest expense. 
- **Credit Utilization**: $200M accordion available for future growth opportunities.

Healthcare Services (HCSG)-23 Apr 25-2025 Q1 Earnings call transcript

- **Q4 2024 Strong Execution**: $437.8M revenue, $36.2M cash flow, 86.6% COGS. 
- **2025 Growth Ambition**: Mid-single digit revenue growth ($440-450M Q1), $45-60M cash flow. 
- **Margin Resilience**: 86% COGS target achievable despite $3-4M Q4 startup costs. 
- **Cash Flow Volatility**: Q2/Q4 stronger, 2025 range assumes mid-single digit growth. 
- **Inflation Mitigation**: Pass-through clauses for food/wage inflation. 
- **Growth Catalysts**: 50% dining penetration, education acquisitions, 80% occupancy. 
- **Regulatory Tailwind**: CMS staffing rule likely revised, positive admin sentiment.

**【CEO Opening Remarks】**
- Q4 2024 revenue: $437.8M, net income: $11.9M, EPS: $0.16, cash flow from operations: $36.2M (adjusted: $27M). 
- 2025 outlook: Mid-single digit revenue growth ($440-450M Q1), 86% cost of services target, $45-60M cash flow from operations. 
- Strategic priorities: Organic growth (hiring, pipeline conversion), cost management (8.5-9.5% SG&A), cash flow optimization. 
- Industry trends: 80% occupancy (pre-pandemic levels), 4.2% Medicare rate increase, workforce expansion (+100K jobs since 2023). 
- Regulatory outlook: CMS staffing rule likely revised/eliminated; positive sentiment on new administration.

**【CFO Financial Update】**
- Q4 2024: 
  - Housekeeping revenue: $192.7M (10.2% margin), Dining: $245.1M (4.7% margin). 
  - Cost of services: $379.2M (86.6%), includes $3-4M new business startup costs. 
  - SG&A: $44.4M (10.1%), targeting 8.5-9.5% in 2025. 
- 2025 capital allocation: 
  - Organic growth (recruitment, brand awareness). 
  - Inorganic growth (acquisitions, tech investments). 
  - Share buybacks ($6M remaining under $16M authorization). 
- Liquidity: $135.8M cash/marketables, $500M credit facility (unused except for LCs). 

**【Q&A Highlights】**
1. **New Business Costs & Margins**: 
   - Q4 2024 startup costs: $3-4M (75% COGS, 25% SG&A). 
   - Dining contracts take 120 days to get on budget, housekeeping 90 days. 
   - 2025 COGS target: 86%, achievable despite startup costs. 
2. **Cash Flow Volatility**: 
   - Q4 2024 collections >100%, Q3-Q4 collections >99.5%. 
   - 2025 cash flow range ($45-60M) assumes mid-single digit growth, with Q2/Q4 stronger. 
3. **Credit Quality**: 
   - DSO improvement (AR reduction, revenue growth). 
   - CECL expense: $10M (1.2% of revenue, consistent with historical trends). 
4. **Inflation & Labor**: 
   - Food inflation: 90bps Q4 vs. 50bps Q3. 
   - Wage inflation: 70bps Q4 vs. 120bps Q1 2024. 
   - Contract modifications allow pass-through of food/wage inflation. 
5. **Growth Drivers**: 
   - 50% dining penetration in ES customer base. 
   - Education segment growth (tuck-in acquisitions). 
   - 2025-2027E CAGR: Mid-single digits (healthcare services), 20%+ (education).

Healthcare Services Group, Inc. (HCSG) Q4 2024 Earnings Call Transcript

- **Q3 Financial Strength**: $428.1M revenue, $19M adjusted cash flow, and 98.5% collections highlight strong execution.
- **Growth Momentum**: Q4 guidance of $430-$440M reflects seasonal strength and delayed collections resolution.
- **Cost Efficiency**: SG&A at 10.4%, targeting 8.5%-9.5% as revenue grows. Food inflation (40bps) passed through in Q1 2025.
- **Strategic Focus**: EVS cross-sell, dining expansion, and rural labor recovery drive 2025 growth. Behavioral health and education opportunities emerge.
- **Operational Resilience**: Hurricane response demonstrates ability to maintain service continuity and strengthen client relationships.

**【CEO Summary Section】**
- **Revenue Performance**: Q3 2024 revenue of $428.1 million in line with expectations, with sequential and year-over-year growth in revenue, earnings, and cash flow. Collections reached 98.5%, driving $19 million in adjusted cash flow.
- **Strategic Priorities**: Emphasis on growth (cross-sell opportunities in EVS and dining), cost management (SG&A target 8.5%-9.5%), and cash flow optimization. Q4 revenue guidance of $430-$440 million reflects seasonal strength and delayed collections resolution.
- **Industry Trends**: Rising occupancy (79.8%), workforce recovery (+100,000 jobs since 2023), and stable reimbursement (4.2% Medicare rate increase). Regulatory focus on CMS staffing rule uncertainty.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $14 million, EPS $0.19; adjusted EBITDA $24.8 million (5.8% margin). Q3 2024 cash flow from operations $4.3 million, with full-year target $40-$55 million.
- **Cost Management**: Cost of services 85.2%, SG&A 10.4% (adjusted to 8.5%-9.5% target). Share repurchases of $4 million YTD, $15.2 million since 2023 authorization.
- **Food Inflation**: 40 basis points of food cost inflation, passed through in Q1 2025 billings.

**【Q&A Key Takeaways】**
- **Cash Flow Seasonality**: Q4 collections historically strong due to year-end payments and Change Healthcare delays. 2025 collections expected to benefit from improved macro backdrop.
- **Labor Market Recovery**: Suburban/urban facilities fully staffed, rural markets lagging. Hourly workforce wage growth stabilizing post-pandemic.
- **Growth Drivers**: EVS cross-sell in assisted living, dining expansion in education sector (<5% of revenue). Behavioral health/substance abuse facilities present long-term opportunities.
- **Hurricane Response**: Florida and NC teams mitigated storm impact, reinforcing client trust and value proposition.
- **Manager Training**: Manager development key gating factor for 2025 growth (mid-single-digit target). District self-sustaining model trains 2/3 of candidates successfully.
- **Capital Allocation**: Share buybacks ($4 million YTD) and selective inorganic growth opportunities (e.g., education, behavioral health).

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