Healthcare Services Group, Inc. has recently released its 10-Q report, providing a detailed look into the company's financial performance and operations. The company, incorporated in 1976 and based in Bensalem, Pennsylvania, offers management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of healthcare facilities in the United States. It operates through two segments, Housekeeping and Dietary, and serves long-term and post-acute care facilities, hospitals, and the healthcare industry.
In its 10-Q report, Healthcare Services Group, Inc. discussed its financial condition and results of operations. The report highlighted the impact of the COVID-19 pandemic, noting that while the crisis has largely abated, clients continue to dedicate significant financial and other resources to protect their residents, employees, and visitors. The company also mentioned challenges such as significant inflation, labor shortages, unprecedented wage growth, and nursing home occupancy levels that are still below the national average target to support a robust recovery of the healthcare sector.
For the three months ended June 30, 2024, Healthcare Services Group, Inc. reported consolidated revenues of $426.3 million, representing a 1.8% increase compared to the corresponding period in 2023. The Housekeeping segment generated approximately 44.9% of total revenues, amounting to $381.6 million, while the Dietary segment contributed approximately 55.1% of total revenues, amounting to $468.2 million during the same period.
The company also provided insights into its costs of services provided. Consolidated costs of services increased by 4.5% to $384.7 million for the three months ended June 30, 2024, compared to the same period in 2023. The increase was attributed to various factors, including bad debt provision and self-insurance costs. Additionally, selling, general, and administrative expenses increased by 7.3% during the same period, primarily driven by increases in payroll, legal, and transportation expenses.
Looking at the six months ended June 30, 2024, the company reported consolidated revenues of $849.7 million, representing a 1.6% increase compared to the same period in 2023. The Housekeeping segment contributed $381.6 million, while the Dietary segment contributed $468.2 million. However, the company's consolidated income before income taxes decreased by 28.7% to $19.3 million for the six months ended June 30, 2024, compared to the same period in 2023.
Today the company's shares have moved 5.2% to a price of $11.35. For more information, read the company's full 10-Q submission here.
