8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 8, 2014

HEALTHCARE SERVICES GROUP, INC.

(Exact name of registrant as specified in its charter)

Commission File Number: 0-12015

Pennsylvania	23-2018365
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification number)
3220 Tillman Drive, Suite 300, Bensalem, Pennsylvania	19020
(Address of principal executive office)	(Zip code)

Registrant's telephone number, including area code: 215-639-4274

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

( )    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

( )    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

( )    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))

( )    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 8, 2014, Healthcare Services Group, Inc. (the "Company") issued a press release (the “Press Release”) announcing its earnings for the three and six months ended June 30, 2014. A copy of the Press Release is being furnished hereto as Exhibit 99.1 and is hereby incorporated by reference to this Current Report.

The information furnished herein, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act.

Item 8.01 Other Events.

The Press Release also announced the Company's second quarter 2014 quarterly cash dividend of $0.17375 per common share, payable on September 26, 2014 to shareholders of record at the close of business on August 22, 2014.

Item 9.01 Financial Statements and Exhibits.

( a )    Not applicable

( b )    Not applicable

( c )    Not applicable

( d )    Exhibits. The following exhibit is being furnished herewith:

99.1    Press Release and financial tables dated July 8, 2014 issued by Healthcare Services Group, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		HEALTHCARE SERVICES GROUP, INC.
Date: July 8, 2014	By:	/s/ John C. Shea
		Name: John C. Shea Title: Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release and financial tables dated July 8, 2014 issued by Healthcare Services Group, Inc.

EX-99.1

Exhibit 99.1

HEALTHCARE SERVICES GROUP, INC. REPORTS RESULTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 &

INCREASES SECOND QUARTER 2014 CASH DIVIDEND

Bensalem, PA — July 8, 2014 — Healthcare Services Group, Inc. (NASDAQ:HCSG) reported that revenues for the three months ended June 30, 2014 increased approximately 17% to $319,295,000 compared to $273,604,000 for the same 2013 period. Net income for the three months ended June 30, 2014 was $13,921,000 or $0.20 per basic and per diluted common share, compared to the three months ended June 30, 2013 net income of $12,933,000 or $0.19 per basic and per diluted common share.

Revenue for the six months ended June 30, 2014 increased over 15% to $631,460,000 compared to $547,508,000 for the same 2013 period. Net income for the six months ended June 30, 2014 was $28,560,000 or $0.41 per basic and $0.40 per diluted common share, compared to the six months ended June 30, 2013 net income of $27,887,000 or $0.41 per basic and $0.40 per diluted common share. The six months ended June 30, 2013 reflected a $0.05 per share benefit due to the enactment of the American Taxpayer Relief Act of 2012, including the retroactive reinstatement of certain tax credits. The Company’s pre-tax income increased over 16% for the six months ended June 30, 2014 compared to the same 2013 period.

Additionally, our Board of Directors declared a quarterly cash dividend of $0.17375 per common share, payable on September 26, 2014 to shareholders of record at the close of business on August 22, 2014. This represents the 45^th consecutive quarterly cash dividend payment, as well as the 44^th consecutive increase since our initiation of quarterly cash dividend payments in 2003.

The Company will host a conference call on Wednesday, July 9, 2014 at 8:30 a.m. Eastern Time to discuss its results for the three and six months ended June 30, 2014. The call may be accessed via phone at 800-893-5360. The call will be simultaneously webcast under the "Events & Presentations" section of the investor relations page on our website, www.hcsg.com. A replay of the webcast will also be available on our website through approximately 10:00 p.m. Eastern Time on Wednesday, July 9^th.

The Company also announced that it will participate in the CL King 12^th Annual Best Ideas Conference on September 9^th at the Omni Berkshire Place in New York City and the 5^th Annual Credit Suisse Small & Mid Cap Conference to be held September 16^th - September 17^th at the Waldorf Astoria New York.

1

Cautionary Statement Regarding Forward-Looking Statements

This release and any schedules incorporated by reference into it may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, which are not historical facts but rather are based on current expectations, estimates and projections about our business and industry, our beliefs and assumptions. Words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “goal,” and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by us that any of our plans will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such forward-looking information is also subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, risks arising from our providing services exclusively to the health care industry, primarily providers of long-term care; credit and collection risks associated with this industry; from having several significant clients who each individually contributed at least 3% with two as high as 7% of our total consolidated revenues for the three and six months ended June 30, 2014; risks associated with our acquisition of Platinum Health Services, LLC; our claims experience related to workers' compensation and general liability insurance; the effects of changes in, or interpretations of laws and regulations governing the industry, our workforce and services provided, including state and local regulations pertaining to the taxability of our services; and the risk factors described in our Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2013 in Part I thereof under ''Government Regulation of Clients,” ''Competition'' and ''Service Agreements/Collections,” and under Item IA “Risk Factors”.

These factors, in addition to delays in payments from clients, have resulted in, and could continue to result in, significant additional bad debts in the near future. Additionally, our operating results would be adversely affected if unexpected increases in the costs of labor and labor-related costs, materials, supplies and equipment used in performing services could not be passed on to our clients.

In addition, we believe that to improve our financial performance we must continue to obtain service agreements with new clients, provide new services to existing clients, achieve modest price increases on current service agreements with existing clients and maintain internal cost reduction strategies at our various operational levels. Furthermore, we believe that our ability to sustain the internal development of managerial personnel is an important factor impacting future operating results and successfully executing projected growth strategies.

Healthcare Services Group, Inc. is the largest national provider of professional housekeeping, laundry and dietary services to long-term care and related health care facilities.

Company Contacts:
Daniel P. McCartney	Theodore Wahl
Chairman and Chief Executive Officer	President and Chief Operating Officer
215-639-4274	215-639-4274

2

HEALTHCARE SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Revenues	$	319,295,000	$	273,604,000	$	631,460,000	$	547,508,000
Operating costs and expenses:
Cost of services provided	275,815,000		234,602,000		543,186,000		469,793,000
Selling, general and administrative	22,240,000		19,363,000		44,286,000		40,153,000
Income from operations	21,240,000		19,639,000		43,988,000		37,562,000
Other income:
Investment and interest	803,000		219,000		1,184,000		1,253,000
Income before income taxes	22,043,000		19,858,000		45,172,000		38,815,000
Income taxes	8,122,000		6,925,000		16,612,000		10,928,000
Net income	$	13,921,000	$	12,933,000	$	28,560,000	$	27,887,000
Basic earnings per common share	$	0.20	$	0.19	$	0.41	$	0.41
Diluted earnings per common share	$	0.20	$	0.19	$	0.40	$	0.40
Cash dividends per common share	$	0.17	$	0.17	$	0.34	$	0.33
Basic weighted average number of common shares outstanding	70,440,000		68,599,000		70,381,000		68,531,000
Diluted weighted average number of common shares outstanding	71,206,000		69,370,000		71,140,000		69,366,000

3

HEALTHCARE SERVICES GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30, 2014		December 31, 2013
Cash and cash equivalents	$	57,269,000	$	64,155,000
Marketable securities, at fair value	11,104,000		11,445,000
Accounts and notes receivable, net	205,172,000		189,107,000
Other current assets	46,485,000		44,485,000
Total current assets	320,030,000		309,192,000
Property and equipment, net	11,484,000		11,304,000
Notes receivable - long term, net	4,861,000		5,779,000
Goodwill	44,438,000		40,183,000
Other intangible assets, net	21,987,000		23,372,000
Deferred compensation funding	24,003,000		22,200,000
Other assets	14,414,000		13,312,000
Total Assets	$	441,217,000	$	425,342,000
Accrued insurance claims - current	$	8,075,000	$	7,853,000
Other current liabilities	88,065,000		91,250,000
Total current liabilities	96,140,000		99,103,000
Accrued insurance claims - long term	18,843,000		18,325,000
Deferred compensation liability	24,387,000		22,771,000
Stockholders' equity	301,847,000		285,143,000
Total Liabilities and Stockholders' Equity	$	441,217,000	$	425,342,000

4