Fri, Jul 26, 8:14 PM (43 days ago)
Healthcare Services Group, Inc. (HCSG) reported a mixed financial performance for the quarter ending June 30, 2024. Consolidated revenues increased by 1.8% year-over-year to $426.3 million, driven by a 3.1% increase in Dietary segment revenues, while Housekeeping revenues remained flat. Costs of services provided rose by 4.5% to $384.7 million, with a significant increase in bad debt provision due to LaVie Care Centers' bankruptcy. Selling, general, and administrative expenses grew by 7.3% to $44.4 million, influenced by higher payroll, legal, and transportation costs. Investment income decreased by 26.2% to $2.6 million, and interest expense fell by 10.4% to $1.7 million. The company posted a net loss of $1.8 million, reversing from an $8.3 million profit in Q2 2023. Cash flow from operations was negative due to increased accounts receivable. As of June 30, 2024, HCSG had $130.7 million in cash and equivalents and a $30 million draw on its $300 million credit line. The company remains in compliance with its financial covenants.