þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Pennsylvania | 23-2018365 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) | |
3220 Tillman Drive, Suite 300, Bensalem, PA | 19020 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | þ | Accelerated filer | o | |||
Non-accelerated filer | o | (Do not check if a smaller reporting company) | ||||
Smaller reporting company | o | |||||
Emerging growth company | o | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
March 31, 2017 | December 31, 2016 | ||||||
(Unaudited) | |||||||
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 48,230 | $ | 23,853 | |||
Marketable securities, at fair value | 68,260 | 67,730 | |||||
Accounts and notes receivable, less allowance for doubtful accounts of $7,698 as of March 31, 2017 and $6,911 as of December 31, 2016 | 281,113 | 271,276 | |||||
Inventories and supplies | 37,294 | 37,800 | |||||
Prepaid expenses and other assets | 16,824 | 13,965 | |||||
Total current assets | 451,721 | 414,624 | |||||
Property and equipment, net | 13,397 | 13,455 | |||||
Goodwill | 44,438 | 44,438 | |||||
Other intangible assets, less accumulated amortization of $15,279 as of March 31, 2017 and $14,672 as of December 31, 2016 | 13,802 | 14,409 | |||||
Notes receivable — long term portion | 7,056 | 7,531 | |||||
Deferred compensation funding, at fair value | 25,082 | 24,119 | |||||
Deferred income taxes | 9,564 | 9,822 | |||||
Other noncurrent assets | 48 | 48 | |||||
Total Assets | $ | 565,108 | $ | 528,446 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 47,952 | $ | 42,912 | |||
Accrued payroll, accrued and withheld payroll taxes | 34,334 | 22,303 | |||||
Other accrued expenses | 3,118 | 4,397 | |||||
Income taxes payable | 8,403 | 7,686 | |||||
Accrued insurance claims | 23,857 | 23,573 | |||||
Total current liabilities | 117,664 | 100,871 | |||||
Accrued insurance claims — long term portion | 64,581 | 64,080 | |||||
Deferred compensation liability | 26,386 | 24,653 | |||||
Commitments and contingencies | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, $.01 par value; 100,000 shares authorized; 74,423 and 74,204 shares issued, and 72,882 and 72,601 shares outstanding as of March 31, 2017 and December 31, 2016, respectively | 744 | 742 | |||||
Additional paid-in capital | 226,075 | 217,664 | |||||
Retained earnings | 139,333 | 130,940 | |||||
Accumulated other comprehensive income (loss), net of taxes | 160 | (319 | ) | ||||
Common stock in treasury, at cost, 1,541 shares as of March 31, 2017 and 1,603 shares as of December 31, 2016 | (9,835 | ) | (10,185 | ) | |||
Total stockholders’ equity | $ | 356,477 | $ | 338,842 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 565,108 | $ | 528,446 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenues | $ | 404,490 | $ | 384,807 | |||
Operating costs and expenses: | |||||||
Costs of services provided | 345,570 | 330,044 | |||||
Selling, general and administrative expense | 28,210 | 25,346 | |||||
Other income, net: | |||||||
Investment and interest | 1,569 | 187 | |||||
Income before income taxes | 32,279 | 29,604 | |||||
Income tax provision | 10,262 | 10,978 | |||||
Net income | $ | 22,017 | $ | 18,626 | |||
Per share data: | |||||||
Basic earnings per common share | $ | 0.30 | $ | 0.26 | |||
Diluted earnings per common share | $ | 0.30 | $ | 0.26 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 73,074 | 72,364 | |||||
Diluted | 73,946 | 73,014 | |||||
Comprehensive income: | |||||||
Net income | $ | 22,017 | $ | 18,626 | |||
Other comprehensive income: | |||||||
Unrealized gain on available for sale marketable securities, net of taxes | 479 | 555 | |||||
Total comprehensive income | $ | 22,496 | $ | 19,181 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 22,017 | $ | 18,626 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 1,886 | 1,965 | |||||
Bad debt provision | 1,050 | 1,100 | |||||
Deferred income tax expense | — | 3,395 | |||||
Stock-based compensation expense, net of tax benefit from equity compensation plans (1) | 445 | 609 | |||||
Amortization of premium on marketable securities | 343 | 318 | |||||
Unrealized (gain) loss on deferred compensation fund investments | (1,209 | ) | 278 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts and notes receivable | (10,887 | ) | (22,899 | ) | |||
Inventories and supplies | 506 | (1,619 | ) | ||||
Prepaid expenses and other assets | (2,859 | ) | (3,277 | ) | |||
Notes receivable - long term | 475 | — | |||||
Deferred compensation funding | 246 | (268 | ) | ||||
Accounts payable and other accrued expenses | 3,639 | (4,100 | ) | ||||
Accrued payroll, accrued and withheld payroll taxes | 15,299 | 18,070 | |||||
Income taxes payable (1) | 1,852 | (3,618 | ) | ||||
Accrued insurance claims | 784 | 1,009 | |||||
Deferred compensation liability | 1,059 | 100 | |||||
Net cash provided by operating activities | 34,646 | 9,689 | |||||
Cash flows from investing activities: | |||||||
Disposals of fixed assets | 104 | 114 | |||||
Additions to property and equipment | (1,325 | ) | (1,459 | ) | |||
Purchases of marketable securities | (7,858 | ) | (4,966 | ) | |||
Sales of marketable securities | 7,723 | 2,640 | |||||
Net cash used in investing activities | (1,356 | ) | (3,671 | ) | |||
Cash flows from financing activities: | |||||||
Dividends paid | (13,624 | ) | (13,158 | ) | |||
Reissuance of treasury stock pursuant to Dividend Reinvestment Plan | 24 | 28 | |||||
Tax benefit from equity compensation plans (1) | — | 509 | |||||
Proceeds from the exercise of stock options | 4,687 | 2,534 | |||||
Net cash used in financing activities | (8,913 | ) | (10,087 | ) | |||
Net change in cash and cash equivalents | 24,377 | (4,069 | ) | ||||
Cash and cash equivalents at beginning of the period | 23,853 | 33,189 | |||||
Cash and cash equivalents at end of the period | $ | 48,230 | $ | 29,120 | |||
Supplementary Cash Flow Information: | |||||||
Cash paid for interest | $ | 204 | $ | 155 | |||
Cash paid for income taxes, net of refunds | $ | 9,544 | $ | 11,201 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), net of taxes | Retained Earnings | Treasury Stock | Stockholders’ Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance — December 31, 2016 | 74,204 | $ | 742 | $ | 217,664 | $ | (319 | ) | $ | 130,940 | $ | (10,185 | ) | $ | 338,842 | |||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income for the period | 22,017 | 22,017 | ||||||||||||||||||||||||
Unrealized gain on available for sale marketable securities, net of taxes | 479 | 479 | ||||||||||||||||||||||||
Comprehensive income | 22,496 | |||||||||||||||||||||||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment | 219 | 2 | 4,685 | 4,687 | ||||||||||||||||||||||
Share-based compensation expense — stock options, restricted stock and restricted stock units | 1,459 | 1,459 | ||||||||||||||||||||||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 495 | 7 | 502 | |||||||||||||||||||||||
Shares issued pursuant to Employee Stock Plan | 1,752 | 339 | 2,091 | |||||||||||||||||||||||
Cash dividends | (13,624 | ) | (13,624 | ) | ||||||||||||||||||||||
Shares issued pursuant to Dividend Reinvestment Plans | 20 | 4 | 24 | |||||||||||||||||||||||
Balance — March 31, 2017 | 74,423 | $ | 744 | $ | 226,075 | $ | 160 | $ | 139,333 | $ | (9,835 | ) | $ | 356,477 |
Unrealized Gains (Losses) on Available for Sale Securities (1) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Accumulated other comprehensive income (loss) — beginning balance | $ | (319 | ) | $ | 543 | ||
Other comprehensive income before reclassifications | 446 | 594 | |||||
Amounts reclassified from accumulated other comprehensive income (loss)(2) | 33 | (39 | ) | ||||
Net current period change in other comprehensive income (3) | 479 | 555 | |||||
Accumulated other comprehensive income — ending balance | $ | 160 | $ | 1,098 |
(1) | All amounts are net of tax. |
(2) | Realized gains and losses are recorded pre-tax under “Other income - Investment and interest” in our Consolidated Statements of Comprehensive Income. For the three months ended March 31, 2017 and 2016, the Company recorded $48 thousand and $62 thousand of realized losses and gains, respectively, from the sale of available for sale securities. Refer to Note 5 herein for further information. |
(3) | For the three months ended March 31, 2017 and 2016, these changes in other comprehensive income were net of tax effects of $0.3 million, respectively. |
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Housekeeping and Dietary equipment | $ | 21,431 | $ | 21,136 | |||
Computer hardware and software | 11,977 | 11,750 | |||||
Other (1) | 1,133 | 1,133 | |||||
Total property and equipment, at cost | 34,541 | 34,019 | |||||
Less accumulated depreciation | 21,144 | 20,564 | |||||
Total property and equipment, net | $ | 13,397 | $ | 13,455 |
(1) | Includes furniture and fixtures, leasehold improvements and autos and trucks. |
March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Customer relationships | $ | 29,081 | $ | 29,081 | |||
Total other intangibles, gross | 29,081 | 29,081 | |||||
Less accumulated amortization | 15,279 | 14,672 | |||||
Other intangibles, net | $ | 13,802 | $ | 14,409 |
Period/Year | Total Amortization Expense | |||
(in thousands) | ||||
April 1 to December 31, 2017 | $ | 1,820 | ||
2018 | $ | 2,328 | ||
2019 | $ | 2,130 | ||
2020 | $ | 2,130 | ||
2021 | $ | 2,130 | ||
2022 | $ | 2,130 | ||
Thereafter | $ | 1,134 |
As of March 31, 2017 | |||||||||||||||||||
Fair Value Measurement Using: | |||||||||||||||||||
Carrying Amount | Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Marketable securities | |||||||||||||||||||
Municipal bonds — available for sale | $ | 68,260 | $ | 68,260 | $ | — | $ | 68,260 | $ | — | |||||||||
Deferred compensation fund | |||||||||||||||||||
Money Market (1) | $ | 2,903 | $ | 2,903 | $ | — | $ | 2,903 | $ | — | |||||||||
Balanced and Lifestyle | 7,420 | 7,420 | 7,420 | — | — | ||||||||||||||
Large Cap Growth | 6,226 | 6,226 | 6,226 | — | — | ||||||||||||||
Small Cap Growth | 2,983 | 2,983 | 2,983 | — | — | ||||||||||||||
Fixed Income | 2,799 | 2,799 | 2,799 | — | — | ||||||||||||||
International | 1,237 | 1,237 | 1,237 | — | — | ||||||||||||||
Mid Cap Growth | 1,514 | 1,514 | 1,514 | — | — | ||||||||||||||
Deferred compensation fund | $ | 25,082 | $ | 25,082 | $ | 22,179 | $ | 2,903 | $ | — |
As of December 31, 2016 | |||||||||||||||||||
Fair Value Measurement Using: | |||||||||||||||||||
Carrying Amount | Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Marketable securities | |||||||||||||||||||
Municipal bonds — available for sale | $ | 67,730 | $ | 67,730 | $ | — | $ | 67,730 | $ | — | |||||||||
Deferred compensation fund | |||||||||||||||||||
Money Market (1) | $ | 3,147 | $ | 3,147 | $ | — | $ | 3,147 | $ | — | |||||||||
Balanced and Lifestyle | 7,162 | 7,162 | 7,162 | — | — | ||||||||||||||
Large Cap Growth | 5,583 | 5,583 | 5,583 | — | — | ||||||||||||||
Small Cap Growth | 2,933 | 2,933 | 2,933 | — | — | ||||||||||||||
Fixed Income | 2,752 | 2,752 | 2,752 | — | — | ||||||||||||||
International | 1,132 | 1,132 | 1,132 | — | — | ||||||||||||||
Mid Cap Growth | 1,410 | 1,410 | 1,410 | — | — | ||||||||||||||
Deferred compensation fund | $ | 24,119 | $ | 24,119 | $ | 20,972 | $ | 3,147 | $ | — |
(1) | The fair value of the money market fund is based on the net asset value (“NAV”) of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date as there are no significant restrictions on the ability to sell this investment. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Other-than-temporary Impairments | |||||||||||||||
(in thousands) | |||||||||||||||||||
March 31, 2017 | |||||||||||||||||||
Type of security: | |||||||||||||||||||
Municipal bonds — available for sale | $ | 68,013 | $ | 477 | $ | (230 | ) | $ | 68,260 | $ | — | ||||||||
Total debt securities | $ | 68,013 | $ | 477 | $ | (230 | ) | $ | 68,260 | $ | — | ||||||||
December 31, 2016 | |||||||||||||||||||
Type of security: | |||||||||||||||||||
Municipal bonds — available for sale | $ | 68,220 | $ | 178 | $ | (668 | ) | $ | 67,730 | $ | — | ||||||||
Total debt securities | $ | 68,220 | $ | 178 | $ | (668 | ) | $ | 67,730 | $ | — |
Municipal Bonds — Available for Sale | ||||||||
Contractual maturity: | March 31, 2017 | December 31, 2016 | ||||||
(in thousands) | ||||||||
Maturing in one year or less | $ | 784 | $ | 973 | ||||
Maturing in second year through fifth year | 18,021 | 28,671 | ||||||
Maturing in sixth year through tenth year | 24,076 | 21,651 | ||||||
Maturing after ten years | 25,379 | 16,435 | ||||||
Total debt securities | $ | 68,260 | $ | 67,730 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Stock options | $ | 1,172 | $ | 878 | |||
Restricted stock and restricted stock units | 287 | 135 | |||||
Employee Stock Purchase Plan | 121 | 105 | |||||
Total pre-tax stock-based compensation expense charged against income (1) | $ | 1,580 | $ | 1,118 |
(1) | Stock-based compensation expense is recorded in selling, general and administrative expense in our Consolidated Statements of Comprehensive Income. |
Stock Options Outstanding | ||||||
Number of Shares | Weighted Average Exercise Price | |||||
(in thousands) | ||||||
December 31, 2016 | 2,615 | $ | 24.61 | |||
Granted | 544 | $ | 39.38 | |||
Cancelled | (39 | ) | $ | 33.82 | ||
Exercised | (201 | ) | $ | 23.31 | ||
March 31, 2017 | 2,919 | $ | 27.33 |
Three Months Ended | |||||
2017 | 2016 | ||||
Risk-free interest rate | 2.0 | % | 2.0 | % | |
Weighted average expected life (years) | 5.8 years | 5.8 years | |||
Expected volatility | 25.1 | % | 26.0 | % | |
Dividend yield | 1.9 | % | 2.0 | % |
March 31, 2017 | ||||
(in thousands, except per share data) | ||||
Outstanding: | ||||
Aggregate intrinsic value | $ | 46,007 | ||
Weighted average remaining contractual life (years) | 6.7 years | |||
Exercisable: | ||||
Number of options | 1,437 | |||
Weighted average exercise price | $ | 20.50 | ||
Aggregate intrinsic value | $ | 32,464 | ||
Weighted average remaining contractual life (years) | 4.8 years |
Shares | Weighted Average Grant Date Fair Value | |||||
(in thousands) | ||||||
December 31, 2016 | 74 | $ | 32.09 | |||
Granted | — | $ | — | |||
Vested | (18 | ) | $ | 31.41 | ||
Forfeited | — | $ | — | |||
March 31, 2017 | 56 | $ | 32.30 |
Units | Weighted Average Grant Date Fair Value | |||||
(in thousands) | ||||||
December 31, 2016 | — | $ | — | |||
Granted | 81 | $ | 39.38 | |||
Vested | — | $ | — | |||
Forfeited | — | $ | — | |||
March 31, 2017 | 81 | $ | 39.38 |
Three Months Ended March 31, | |||
2017 | 2016 | ||
Risk-free interest rate | 1.05% | 0.58% | |
Weighted average expected life (years) | 1.0 | 1.0 | |
Expected volatility | 21.2% | 19.7% | |
Dividend yield | 1.9% | 2.0% |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
SERP expense (1) | $ | 160 | $ | 164 | |||
Unrealized gain (loss) recorded in SERP liability account | $ | 1,161 | $ | (328 | ) |
Three Months Ended March 31, 2017 | |||
(in thousands, except per share amounts) | |||
Cash dividends paid per common share | $ | 0.18625 | |
Total cash dividends paid | $ | 13,624 | |
Record date | February 17, 2017 | ||
Payment date | March 24, 2017 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Cash dividends declared per common share | $ | 0.18750 | $ | 0.18250 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Revenues | |||||||
Housekeeping services | $ | 243,423 | $ | 238,279 | |||
Dietary services | 161,067 | 146,528 | |||||
Total | $ | 404,490 | $ | 384,807 | |||
Income before income taxes | |||||||
Housekeeping services | $ | 23,202 | $ | 22,500 | |||
Dietary services | 10,225 | 9,148 | |||||
Corporate and eliminations (1) | (1,148 | ) | (2,044 | ) | |||
Total | $ | 32,279 | $ | 29,604 |
(1) | Primarily represents corporate office costs and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
(in thousands) | |||||
Weighted average number of common shares outstanding - basic | 73,074 | 72,364 | |||
Effect of dilutive securities (1) | 872 | 650 | |||
Weighted average number of common shares outstanding - diluted | 73,946 | 73,014 |
(1) | Certain outstanding stock option awards are anti-dilutive and were therefore excluded from the calculation of the weighted average number of diluted common shares outstanding. During the three months ended March 31, 2017, options to purchase 0.5 million shares having a weighted average exercise price of $39.38 per share were excluded. During the three months ended March 31, 2016, options to purchase 1.0 million shares having a weighted average exercise price of $32.45 per share were excluded. |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | % Change | ||||||||
(in thousands) | ||||||||||
Revenues | ||||||||||
Housekeeping services | $ | 243,423 | $ | 238,279 | 2.2 | % | ||||
Dietary services | 161,067 | 146,528 | 9.9 | % | ||||||
Consolidated | $ | 404,490 | $ | 384,807 | 5.1 | % | ||||
Costs of Services Provided | ||||||||||
Housekeeping services | $ | 220,221 | $ | 215,779 | 2.1 | % | ||||
Dietary services | 150,842 | 137,380 | 9.8 | % | ||||||
Corporate and eliminations | (25,493 | ) | (23,115 | ) | 10.3 | % | ||||
Consolidated | $ | 345,570 | $ | 330,044 | 4.7 | % | ||||
Selling, general and administrative expense | ||||||||||
Corporate and eliminations | $ | 28,210 | $ | 25,346 | 11.3 | % | ||||
Investment and interest income | ||||||||||
Corporate and eliminations | $ | 1,569 | $ | 187 | 739.0 | % | ||||
Income (loss) before income taxes | ||||||||||
Housekeeping services | $ | 23,202 | $ | 22,500 | 3.1 | % | ||||
Dietary services | 10,225 | 9,148 | 11.8 | % | ||||||
Corporate and eliminations | (1,148 | ) | (2,044 | ) | (43.8 | )% | ||||
Consolidated | $ | 32,279 | $ | 29,604 | 9.0 | % |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
Revenues | 100.0 | % | 100.0 | % | |
Operating costs and expenses: | |||||
Costs of services provided | 85.4 | % | 85.8 | % | |
Selling, general and administrative expense | 7.0 | % | 6.6 | % | |
Investment and interest income | 0.4 | % | 0.0 | % | |
Income before income taxes | 8.0 | % | 7.6 | % | |
Income taxes | 2.5 | % | 2.9 | % | |
Net income | 5.5 | % | 4.7 | % |
Three Months Ended March 31, | ||||||
Costs of Services Provided-Key Indicators as a % of Consolidated Revenue | 2017 | 2016 | Change | |||
Bad debt provision | 0.3% | 0.3% | —% | |||
Workers’ compensation and general liability insurance | 2.6% | 3.1% | (0.5)% |
Three Months Ended March 31, | ||||||
Costs of Services Provided-Key Indicators as a % of Segment Revenue | 2017 | 2016 | Change | |||
Housekeeping labor and other labor costs | 80.1% | 79.5% | 0.6% | |||
Housekeeping supplies | 8.0% | 7.9% | 0.1% | |||
Dietary labor and other labor costs | 54.3% | 52.8% | 1.5% | |||
Dietary supplies | 37.1% | 38.0% | (0.9)% |
Three Months Ended March 31, | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Selling, general and administrative expense excluding deferred compensation change (1) | $ | 27,049 | $ | 25,674 | $ | 1,375 | 5.4 | % | ||||||
Gain / (loss) on deferred compensation plan investments (2) | 1,161 | (328 | ) | 1,489 | (454.0 | )% | ||||||||
Selling, general and administrative expense | $ | 28,210 | $ | 25,346 | $ | 2,864 | 11.3 | % |
(1) | Selling, general and administrative expense excluding the change in the market value of the deferred compensation fund. |
(2) | Gains on the deferred compensation plan investments are reflected as increases to selling, general and administrative expense, as such gains also increase the amount of the deferred compensation liability. Losses on the deferred compensation plan investments are reflected as decreases to selling, general and administrative expense, as such losses also decrease the amount of the deferred compensation liability. |
March 31, 2017 | March 31, 2016 | ||||||
(in thousands) | |||||||
Net cash provided by operating activities | $ | 34,646 | $ | 9,689 | |||
Net cash used in investing activities | $ | (1,356 | ) | $ | (3,671 | ) | |
Net cash used in financing activities | $ | (8,913 | ) | $ | (10,087 | ) |
March 31, 2017 | |||
(in thousands, except per share data) | |||
Cash dividends paid per common share | $ | 0.18625 | |
Total cash dividends paid | $ | 13,624 | |
Record date | February 17, 2017 | ||
Payment date | March 24, 2017 |
Covenant Description and Requirement | As of March 31, 2017 | ||
Funded debt (1) to EBITDA(2) ratio: less than 3.00 to 1.00 | 0.51 |
(1) | All indebtedness for borrowed money, including but not limited to, capitalized lease obligations, reimbursement obligations in respect of letters of credit and guaranties of any such indebtedness. |
(2) | Net income plus interest expense, income tax expense, depreciation, amortization and extraordinary non-recurring losses/gains. |
Exhibit Number | Description | |
31.1 | ||
31.2 | ||
32.1 | ||
101 | The following financial information from the Company’s Form 10-Q for the quarterly period ended March 31, 2017 formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statement of Stockholders’ Equity, and (v) Notes to Consolidated Financial Statements |
HEALTHCARE SERVICES GROUP, INC. | |||
Date: | April 28, 2017 | /s/ Theodore Wahl | |
Theodore Wahl | |||
President & Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: | April 28, 2017 | /s/ John C. Shea | |
John C. Shea | |||
Chief Financial Officer | |||
(Principal Financial and Accounting Officer) | |||
Date: | April 28, 2017 | /s/ Theodore Wahl | |
Theodore Wahl | |||
President & Chief Executive Officer | |||
(Principal Executive Officer) |
Date: | April 28, 2017 | /s/ John C. Shea | |
John C. Shea | |||
Chief Financial Officer | |||
(Principal Financial and Accounting Officer) |
/s/ Theodore Wahl | /s/ John C. Shea | |
Theodore Wahl | John C. Shea | |
President & Chief Executive Officer | Chief Financial Officer | |
(Principal Executive Officer) | (Principal Financial and Accounting Officer) | |
April 28, 2017 | April 28, 2017 |
Document and Entity Information - shares shares in Thousands |
3 Months Ended | |
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Mar. 31, 2017 |
Apr. 26, 2017 |
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Document And Entity Information [Abstract] | ||
Entity Registrant Name | HEALTHCARE SERVICES GROUP INC | |
Entity Central Index Key | 0000731012 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 72,989 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
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Current assets: | ||
Allowance for doubtful accounts | $ 7,698 | $ 6,911 |
Accumulated amortization of other intangible assets | $ 15,279 | $ 14,672 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 74,423,000 | 74,204,000 |
Common stock outstanding (in shares) | 72,882,000 | 72,601,000 |
Common stock in treasury (in shares) | 1,541,000 | 1,603,000 |
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Income Statement [Abstract] | ||
Revenues | $ 404,490 | $ 384,807 |
Operating costs and expenses: | ||
Costs of services provided | 345,570 | 330,044 |
Selling, general and administrative expense | 28,210 | 25,346 |
Other income, net: | ||
Investment and interest | 1,569 | 187 |
Income before income taxes | 32,279 | 29,604 |
Income tax provision | 10,262 | 10,978 |
Net income | $ 22,017 | $ 18,626 |
Per share data: | ||
Basic earnings per common share (in dollars per share) | $ 0.30 | $ 0.26 |
Diluted earnings per common share (in dollars per share) | $ 0.30 | $ 0.26 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 73,074 | 72,364 |
Diluted (in shares) | 73,946 | 73,014 |
Comprehensive income: | ||
Net income | $ 22,017 | $ 18,626 |
Other comprehensive income: | ||
Unrealized gain on available for sale marketable securities, net of taxes | 479 | 555 |
Total comprehensive income | $ 22,496 | $ 19,181 |
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss), net of taxes |
Retained Earnings |
Treasury Stock |
---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2015 | $ 543 | |||||
Comprehensive income: | ||||||
Net income for the period | $ 18,626 | |||||
Unrealized gain on available for sale marketable securities, net of taxes | 555 | |||||
Total comprehensive income | 19,181 | |||||
Ending balance at Mar. 31, 2016 | 1,098 | |||||
Balance (in shares) at Dec. 31, 2016 | 74,204 | |||||
Beginning balance at Dec. 31, 2016 | 338,842 | $ 742 | $ 217,664 | (319) | $ 130,940 | $ (10,185) |
Comprehensive income: | ||||||
Net income for the period | 22,017 | 22,017 | ||||
Unrealized gain on available for sale marketable securities, net of taxes | 479 | 479 | ||||
Total comprehensive income | 22,496 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment (in shares) | 219 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment | 4,687 | $ 2 | 4,685 | |||
Share-based compensation expense — stock options, restricted stock and restricted stock units | 1,459 | 1,459 | ||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 502 | 495 | 7 | |||
Shares issued pursuant to Employee Stock Plan | 2,091 | 1,752 | 339 | |||
Cash dividends | (13,624) | (13,624) | ||||
Shares issued pursuant to Dividend Reinvestment Plans | 24 | 20 | 4 | |||
Balance (in shares) at Mar. 31, 2017 | 74,423 | |||||
Ending balance at Mar. 31, 2017 | $ 356,477 | $ 744 | $ 226,075 | $ 160 | $ 139,333 | $ (9,835) |
Description of Business and Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Nature of Operations Healthcare Services Group, Inc. (the “Company”) provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although we do not directly participate in any government reimbursement programs, our clients receive government reimbursements related to Medicare and Medicaid. Therefore, they are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. We provide our services primarily pursuant to full service agreements with our clients. In such agreements, we are responsible for the day-to-day management of employees located at our clients’ facilities. We also provide services on the basis of management-only agreements for a limited number of clients. Our agreements with clients typically provide for renewable one year service terms, cancelable by either party upon 30 to 90 days’ notice after the initial 60 to 120 day period. We are organized into two reportable segments: housekeeping, laundry, linen and other services (“Housekeeping”), and dietary department services (“Dietary”). Housekeeping consists of managing our clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a client’s facility, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at a client facility. Dietary consists of managing our clients’ dietary departments which are principally responsible for food purchasing, meal preparation and dietitian professional services, which includes the development of menus that meets residents’ dietary needs. Unaudited Interim Financial Data The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. However, in our opinion, all adjustments which are of a normal recurring nature and are necessary for a fair presentation have been reflected in these consolidated financial statements. The balance sheet shown in this report as of December 31, 2016 has been derived from, and does not include, all of the disclosures contained in the financial statements for the year ended December 31, 2016. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for any future period. Certain amounts in the prior year financial statements have been reclassified to conform to current presentation. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Healthcare Services Group, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents are held in U.S. financial institutions or in custodial accounts with U.S. financial institutions. Cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less at the time of purchase that are readily convertible into cash and have insignificant interest rate risk. Inventories and Supplies Inventories and supplies include housekeeping, linen and laundry supplies, as well as food provisions and supplies. Inventories and supplies are stated at cost to approximate a first-in, first-out (FIFO) basis. Linen supplies are amortized on a straight-line basis over their estimated useful life of 24 months. Revenue Recognition Revenues from our service agreements with clients are recognized as services are performed. Revenues are reported net of sales taxes that are collected from customers and remitted to taxing authorities. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current period. We accrue for probable tax obligations as required by facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. When appropriate, valuation allowances are recorded to reduce deferred tax assets to amounts for which realization is more likely than not. Uncertain income tax positions taken or expected to be taken in tax returns are reflected within our financial statements based on a recognition and measurement process. Earnings per Common Share Basic earnings per common share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share are calculated using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock options and upon the vesting of restricted stock and restricted stock units. Share-Based Compensation We estimate the fair value of share-based awards on the date of grant using the Black-Scholes valuation model for stock options and using the share price on the date of grant for restricted stock and restricted stock units. The value of the award is recognized ratably as an expense in the Company’s Consolidated Statements of Comprehensive Income over the requisite service periods, with adjustments made for forfeitures as they occur. Use of Estimates in Financial Statements In preparing financial statements in conformity with U.S. GAAP, we make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant estimates are used in determining, but are not limited to, our allowance for doubtful accounts, accrued insurance claims, asset valuations, deferred taxes and reviews for potential impairment. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. We regularly evaluate this information to determine if it is necessary to update the basis for our estimates and to adjust for known changes. Concentrations of Credit Risk Our financial instruments that are subject to concentrations of credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. We define our marketable securities as fixed income investments which are highly liquid and can be readily purchased or sold through established markets. At March 31, 2017 and December 31, 2016, substantially all of our cash and cash equivalents and marketable securities were held in one large financial institution located in the United States. Our clients are concentrated in the health care industry and are primarily providers of long-term care. Many of our clients’ revenues are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or changes in existing regulations could be made which could directly impact the governmental reimbursement programs in which our clients participate. As a result, we may not know the full effects of such programs until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payments. The Company adopted the standard beginning January 1, 2017. The impacts of adopting the standard have included the recognition of excess tax benefits related to share-based payments as a component of income tax expense, as opposed to additional paid-in capital; an amendment to the calculation of diluted earnings per share to exclude windfall tax benefits from assumed proceeds when calculating diluted shares outstanding; as well as accounting for forfeitures of share-based awards as they occur, as opposed to reserving for estimated forfeitures. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business. The guidance changes the definition of a business to assist entities in evaluating whether a set of transferred assets and activities constitutes a business under Topic 805. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company plans to adopt the standard effective January 1, 2018. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which was subsequently amended and updated throughout 2015 and 2016. The standard provides guidance on revenue recognition, among other topics such as the accounting for compensation and costs to obtain a contract. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption is required for reporting periods beginning after December 15, 2017, with early adoption prohibited. The Company plans to adopt the standard beginning on January 1, 2018. The Company is in the process of evaluating the impact of the adoption of this ASU, as well as determining the transition method that will be applied. Our analysis has consisted of reviewing the nature and terms of our existing contracts under the provisions of the new guidance and assessing any operational changes and process updates required for compliance. Currently, the Company does not expect a material impact to our accounting for the revenue we earn related to our Housekeeping and Dietary services. We anticipate that the most significant impact of the new standard will relate to additional disclosure obligations. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize assets and liabilities on their balance sheet related to the rights and obligations created by most leases, while continuing to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. The Company will adopt the new guidance as of January 1, 2019. We are continuing to evaluate the expected impact of the requirements, however we expect the primary impact will relate to the capitalization of operating leases of office space, vehicles and equipment. |
Changes in Accumulated Other Comprehensive Income by Component |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component Accumulated other comprehensive income consists of unrealized gains and losses from our available for sale marketable securities. The following table provides a summary of the changes in accumulated other comprehensive income for the three months ended March 31, 2017 and 2016:
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is recorded over the estimated useful life of each class of depreciable assets, and is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated asset life or term of the lease. Repairs and maintenance costs are charged to expense as incurred. The following table sets forth the amounts of property and equipment by each class of depreciable assets as of March 31, 2017 and December 31, 2016:
Depreciation expense for the three months ended March 31, 2017 and 2016 was $1.3 million and $1.2 million, respectively. |
Goodwill and Other Intangible Assets |
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Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets of an acquired business. Goodwill is not amortized, but is evaluated for impairment on an annual basis, or more frequently if impairment indicators arise. Goodwill by reportable operating segment, as described in Note 10 herein, was approximately $42.3 million and $2.1 million for Housekeeping and Dietary, respectively, as of both March 31, 2017 and December 31, 2016. Intangible Assets Our intangible assets were acquired through acquisitions and are recorded at their fair values at the date of acquisition. Intangible assets with determinable lives are amortized on a straight-line basis over their estimated useful lives. The customer relationships have a weighted-average amortization period of 9.7 years. The following table sets forth the amounts of our identifiable intangible assets subject to amortization:
The following table sets forth the estimated amortization expense for intangibles subject to amortization for the remainder of 2017, the following five fiscal years and thereafter:
Amortization expense for the three months ended March 31, 2017 and 2016 was $0.6 million and $0.8 million, respectively. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements The Company’s current assets (other than marketable securities and inventories) and current liabilities are financial instruments and most of these items are recorded at cost in the Consolidated Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to their short-term nature. Our financial assets that are measured at fair value on a recurring basis are our marketable securities and our deferred compensation funding. We believe the recorded values of all of our financial instruments approximate their current fair values because of their nature, stated interest rates and respective maturity dates or durations. The Company’s marketable securities consist of tax-exempt municipal bonds, which we classify as available-for-sale and which are reported at fair value. Unrealized gains and losses associated with these investments are included in other comprehensive income (net of tax) within our Consolidated Statements of Comprehensive Income. The fair value of these marketable securities is classified within Level 2 of the fair value hierarchy, as these securities are measured using quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable. Such valuations are determined by a third-party pricing service. For the three months ended March 31, 2017, we recorded unrealized gains on marketable securities of $0.5 million and for the three months ended March 31, 2016, we recorded unrealized gains on marketable securities of $0.6 million. For the three months ended March 31, 2017 and 2016, we received total proceeds, less the amount of interest received, of $7.5 million and $2.0 million, respectively, from sales of available-for-sale municipal bonds. For the three months ended March 31, 2017, these sales resulted in realized losses of $48 thousand which were recorded in “Other income, net – Investment and interest” in our Consolidated Statements of Comprehensive Income. The basis for the sale of these securities was the specific identification of each bond sold during the period. For the three months ended March 31, 2016, there were $62 thousand in realized gains. The investments under the funded deferred compensation plan are accounted for as trading securities and unrealized gains or losses are included in earnings. The fair value of these investments are determined based on quoted market prices (Level 1). The following tables provide fair value measurement information for our marketable securities and deferred compensation fund investments as of March 31, 2017 and December 31, 2016:
The following table summarizes the contractual maturities of debt securities held at March 31, 2017 and December 31, 2016, which are classified as marketable securities in the Consolidated Balance Sheets:
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Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation A summary of stock-based compensation expense for the three months ended March 31, 2017 and 2016 is as follows:
At March 31, 2017, the unrecognized compensation cost related to unvested stock options and awards was $15.2 million. The weighted average period over which these awards will vest is approximately 3.5 years. 2012 Equity Incentive Plan The Company’s 2012 Equity Incentive Plan (the “Plan”) provides that current or prospective officers, employees, non-employee directors and advisors can receive share-based awards such as stock options, restricted stock, restricted stock units and other stock awards. The Plan seeks to promote the highest level of performance by providing an economic interest in the long-term success of the Company. As of March 31, 2017, 3.7 million shares of common stock were reserved for issuance under the Plan, including 0.7 million shares available for future grant. No stock award will have a term in excess of ten years. All awards granted under the Plan become vested and exercisable ratably over a five year period on each yearly anniversary of the grant date. The Nominating, Compensation and Stock Option Committee of the Board of Directors is responsible for determining the terms of the grants in accordance with the Plan. Stock Options A summary of our stock options outstanding under the Plan as of December 31, 2016 and changes during the three months ended March 31, 2017 is as follows:
The weighted average grant-date fair value of stock options granted during the three months ended March 31, 2017 and 2016 was $8.52 and $7.46 per common share, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2017 and 2016 was $3.5 million and $1.7 million, respectively. The fair value of stock option awards granted in 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:
The following table summarizes other information about our stock options at March 31, 2017:
Restricted Stock During the three months ended March 31, 2017, the Company did not grant shares of restricted stock. During the three months ended March 31, 2016, the Company granted 44 thousand shares of restricted stock with a weighted average grant date fair value of $34.14 per share. Fair value is determined based on the market price of the shares on the date of grant. A summary of our outstanding restricted stock awards as of December 31, 2016 and changes during the three months ended March 31, 2017 is as follows:
Restricted Stock Units During the three months ended March 31, 2017, the Company granted 81 thousand restricted stock units with a weighted average grant date fair value of $39.38 per share. Fair value is determined based on the market price of the shares on the date of grant. During the three months ended March 31, 2016, there were no grants of restricted stock units. A summary of our outstanding restricted stock units as of December 31, 2016 and changes during the three months ended March 31, 2017 is as follows:
Employee Stock Purchase Plan The Company offers an Employee Stock Purchase Plan (“ESPP”) to all eligible employees. The ESPP was scheduled to expire after 2016, however the Board of Directors extended the program for an additional five offerings through 2021. All full-time and certain part-time employees who have completed two years of continuous service with us are eligible to participate. Annual offerings commence and terminate on the respective year’s first and last calendar day. Under the ESPP, the Company is authorized to issue up to 4.1 million shares of our common stock to our employees. Pursuant to such authorization, there are 2.3 million shares available for future grant at March 31, 2017. The stock-based compensation expense associated with the options granted in 2017 and 2016 under our ESPP was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:
Deferred Compensation Plan The Company offers a Supplemental Executive Retirement Plan (“SERP”) for certain key executives and employees. The SERP allows participants to defer a portion of their earned income on a pre-tax basis and as of the last day of each plan year, each participant will be credited with a match up to a portion of their deferral in the form of our Common Stock based on the then-current market value. Under the SERP, we are authorized to issue 1.0 million shares of our common stock to our employees. Pursuant to such authorization, we have 0.4 million shares available for future grant at March 31, 2017. At the time of issuance, such shares are accounted for at cost as treasury stock. The following table summarizes information about our SERP during the three months ended March 31, 2017 and 2016:
(1) Both the SERP match and the deferrals are included in the selling, general and administrative caption in our consolidated statements of comprehensive income. |
Dividends |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | Dividends During the three months ended March 31, 2017, we paid regular quarterly cash dividends totaling approximately $13.6 million as follows:
Additionally, on April 11, 2017, our Board of Directors declared a regular quarterly cash dividend of $0.1875 per common share, which will be paid on June 23, 2017, to shareholders of record as of the close of business on May 19, 2017. Cash dividends declared on our outstanding weighted average number of basic common shares for the periods presented were as follows:
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Income Taxes |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The 2017 estimated annual effective tax rate is expected to be approximately 35%. Differences between the effective tax rate and the applicable U.S. federal statutory rate arise primarily from the effect of state and local income taxes, share-based compensation and tax credits available to the Company. The actual 2017 effective tax rate will likely vary from the estimate depending on the availability of tax credits. and the exercises of stock options and vesting of share-based awards. Due to the adoption of ASU 2016-09, the tax effects of option exercises or vested awards should be treated as discrete items in the reporting period in which they occur, and therefore cannot be considered in the calculation of the estimated annual effective tax rate. We account for income taxes using the asset and liability method, which results in recognizing income tax expense based on the amount of income taxes payable or refundable for the current year. Additionally, we evaluate regularly the tax positions taken or expected to be taken resulting from financial statement recognition of certain items. Based on our evaluation, we have concluded that there are no significant uncertain tax positions requiring recognition in our financial statements. Our evaluation was performed for the tax years ended December 31, 2013 through 2016 (with regard to U.S. federal income tax returns) and December 31, 2012 through 2016 (with regard to various state and local income tax returns), the tax years which remain subject to examination by major tax jurisdictions as of March 31, 2017. We may from time to time be assessed interest or penalties by taxing jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. When we have received an assessment for interest and/or penalties, it has been classified in the financial statements as selling, general and administrative expense. In addition, any interest or penalties relating to recognized uncertain tax positions would also be recorded in selling, general and administrative expense. |
Related Party Transactions |
3 Months Ended |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A director is a member of a law firm retained by us. In each of the three months ended March 31, 2017 and 2016, fees received from us by such firm did not exceed $120,000. Additionally, such fees did not exceed, in either period, 5% of such firm’s or the Company’s revenues. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We manage and evaluate our operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve the same client base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. Such services are rendered pursuant to distinct service agreements, specific to each reportable segment. The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and our consolidated financial statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level which use methods other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized in the consolidated financial statements. As discussed, most corporate expenses are not allocated to the operating segments. Such expenses include corporate salary and benefit costs, certain legal costs, information technology costs, depreciation, amortization of finite lived intangible assets, share based compensation costs and other corporate-specific costs. Additionally, there are allocations for workers’ compensation and general liability expense within the operating segments that differ from our actual expense recorded for U.S. GAAP. Segment amounts disclosed are prior to any elimination entries made in consolidation.
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Basic and diluted earnings per common share are computed by dividing net income by the weighted-average number of basic and diluted common shares outstanding, respectively. The weighted-average number of diluted common shares includes the impact of dilutive securities, including unvested, unexercised stock options and unvested restricted stock and restricted stock units. The table below reconciles the weighted-average basic and diluted common shares outstanding:
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Other Contingencies |
3 Months Ended |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Contingencies | Other Contingencies Line of Credit We have a $200 million bank line of credit on which we may draw to meet short-term liquidity requirements. Amounts drawn under the line of credit are payable upon demand. At March 31, 2017, there were no borrowings under the line of credit. At March 31, 2017, we also had outstanding a $67.2 million irrevocable standby letter of credit, which relates to payment obligations under our insurance programs. In connection with the issuance of the letter of credit, the amount available under the line of credit was reduced by $67.2 million to $132.8 million at March 31, 2017. The letter of credit was increased to $70.7 million on April 3, 2017. The line of credit requires us to satisfy one financial covenant. We are in compliance with our financial covenant at March 31, 2017 and expect to remain in compliance with such financial covenant. The line of credit expires on December 18, 2018. Tax Jurisdictions and Matters We provide our services throughout the continental United States and are subject to numerous local taxing jurisdictions within those states. In the ordinary course of business, a jurisdiction may contest our reporting positions with respect to the application of its tax code to our services. A jurisdiction’s conflicting position on the taxability of our services could result in additional tax liabilities. We have tax matters with various taxing authorities. Because of the uncertainties related to both the probable outcomes and amount of probable assessments due, we are unable to make a reasonable estimate of a liability. We do not expect the resolution of any of these matters, taken individually or in the aggregate, to have a material adverse effect on our consolidated financial position or results of operations based on our best estimate of the outcomes of such matters. Legal Proceedings We are subject to various claims and legal actions in the ordinary course of business. Some of these matters include payroll and employee-related matters and examinations by governmental agencies. As we become aware of such claims and legal actions, we record accruals for any exposures that are probable and estimable. If adverse outcomes of such claims and legal actions are reasonably possible, we assess materiality and provide such financial disclosure, as appropriate. The Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding or governmental examination that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. Government Regulations Our clients are concentrated in the health care industry and are primarily providers of long-term care. Many of our clients’ revenues are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or additional changes in existing regulations could be made which could directly impact the governmental reimbursement programs in which our clients participate. As a result, we may not know the full effects of such programs until these laws are fully implemented and government agencies issue applicable regulations or guidance. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has entered into new service agreements with expected annualized revenues of over $160 million, to begin during the second quarter of 2017. The recent expansion consists of multiple customer groups including one national, multi-state provider, with whom the Company has an existing contractual relationship, that makes up a substantial portion of the aforementioned growth. In conjunction with said customer expansion, the Company acquired certain dietary-related assets, including inventory, and intellectual property. We evaluated all subsequent events through the filing date of this Form 10-Q. We believe there were no other events or transactions occurring during this subsequent reporting period which require recognition or additional disclosure in these financial statements. |
Description of Business and Significant Accounting Policies (Policy) |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Healthcare Services Group, Inc. (the “Company”) provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although we do not directly participate in any government reimbursement programs, our clients receive government reimbursements related to Medicare and Medicaid. Therefore, they are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. We provide our services primarily pursuant to full service agreements with our clients. In such agreements, we are responsible for the day-to-day management of employees located at our clients’ facilities. We also provide services on the basis of management-only agreements for a limited number of clients. Our agreements with clients typically provide for renewable one year service terms, cancelable by either party upon 30 to 90 days’ notice after the initial 60 to 120 day period. We are organized into two reportable segments: housekeeping, laundry, linen and other services (“Housekeeping”), and dietary department services (“Dietary”). Housekeeping consists of managing our clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a client’s facility, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at a client facility. Dietary consists of managing our clients’ dietary departments which are principally responsible for food purchasing, meal preparation and dietitian professional services, which includes the development of menus that meets residents’ dietary needs. |
Unaudited Interim Financial Data | The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. However, in our opinion, all adjustments which are of a normal recurring nature and are necessary for a fair presentation have been reflected in these consolidated financial statements. The balance sheet shown in this report as of December 31, 2016 has been derived from, and does not include, all of the disclosures contained in the financial statements for the year ended December 31, 2016. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for any future period. |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Healthcare Services Group, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and cash equivalents are held in U.S. financial institutions or in custodial accounts with U.S. financial institutions. Cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less at the time of purchase that are readily convertible into cash and have insignificant interest rate risk. |
Inventories and Supplies | Inventories and supplies include housekeeping, linen and laundry supplies, as well as food provisions and supplies. Inventories and supplies are stated at cost to approximate a first-in, first-out (FIFO) basis. Linen supplies are amortized on a straight-line basis over their estimated useful life of 24 months. |
Revenue Recognition | Revenues from our service agreements with clients are recognized as services are performed. Revenues are reported net of sales taxes that are collected from customers and remitted to taxing authorities. |
Income Taxes | We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current period. We accrue for probable tax obligations as required by facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. When appropriate, valuation allowances are recorded to reduce deferred tax assets to amounts for which realization is more likely than not. Uncertain income tax positions taken or expected to be taken in tax returns are reflected within our financial statements based on a recognition and measurement process. |
Earnings per Common Share | Basic earnings per common share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share are calculated using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock options and upon the vesting of restricted stock and restricted stock units. |
Share-Based Compensation | We estimate the fair value of share-based awards on the date of grant using the Black-Scholes valuation model for stock options and using the share price on the date of grant for restricted stock and restricted stock units. The value of the award is recognized ratably as an expense in the Company’s Consolidated Statements of Comprehensive Income over the requisite service periods, with adjustments made for forfeitures as they occur. |
Use of Estimates in Financial Statements | In preparing financial statements in conformity with U.S. GAAP, we make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant estimates are used in determining, but are not limited to, our allowance for doubtful accounts, accrued insurance claims, asset valuations, deferred taxes and reviews for potential impairment. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. We regularly evaluate this information to determine if it is necessary to update the basis for our estimates and to adjust for known changes. |
Concentrations of Credit Risk | Our financial instruments that are subject to concentrations of credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. We define our marketable securities as fixed income investments which are highly liquid and can be readily purchased or sold through established markets. At March 31, 2017 and December 31, 2016, substantially all of our cash and cash equivalents and marketable securities were held in one large financial institution located in the United States. Our clients are concentrated in the health care industry and are primarily providers of long-term care. Many of our clients’ revenues are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or changes in existing regulations could be made which could directly impact the governmental reimbursement programs in which our clients participate. As a result, we may not know the full effects of such programs until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. |
Recent Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payments. The Company adopted the standard beginning January 1, 2017. The impacts of adopting the standard have included the recognition of excess tax benefits related to share-based payments as a component of income tax expense, as opposed to additional paid-in capital; an amendment to the calculation of diluted earnings per share to exclude windfall tax benefits from assumed proceeds when calculating diluted shares outstanding; as well as accounting for forfeitures of share-based awards as they occur, as opposed to reserving for estimated forfeitures. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business. The guidance changes the definition of a business to assist entities in evaluating whether a set of transferred assets and activities constitutes a business under Topic 805. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company plans to adopt the standard effective January 1, 2018. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which was subsequently amended and updated throughout 2015 and 2016. The standard provides guidance on revenue recognition, among other topics such as the accounting for compensation and costs to obtain a contract. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption is required for reporting periods beginning after December 15, 2017, with early adoption prohibited. The Company plans to adopt the standard beginning on January 1, 2018. The Company is in the process of evaluating the impact of the adoption of this ASU, as well as determining the transition method that will be applied. Our analysis has consisted of reviewing the nature and terms of our existing contracts under the provisions of the new guidance and assessing any operational changes and process updates required for compliance. Currently, the Company does not expect a material impact to our accounting for the revenue we earn related to our Housekeeping and Dietary services. We anticipate that the most significant impact of the new standard will relate to additional disclosure obligations. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize assets and liabilities on their balance sheet related to the rights and obligations created by most leases, while continuing to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. The Company will adopt the new guidance as of January 1, 2019. We are continuing to evaluate the expected impact of the requirements, however we expect the primary impact will relate to the capitalization of operating leases of office space, vehicles and equipment. |
Reportable Operating Segments | The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and our consolidated financial statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level which use methods other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized in the consolidated financial statements. As discussed, most corporate expenses are not allocated to the operating segments. Such expenses include corporate salary and benefit costs, certain legal costs, information technology costs, depreciation, amortization of finite lived intangible assets, share based compensation costs and other corporate-specific costs. Additionally, there are allocations for workers’ compensation and general liability expense within the operating segments that differ from our actual expense recorded for U.S. GAAP. Segment amounts disclosed are prior to any elimination entries made in consolidation. |
Changes in Accumulated Other Comprehensive Income by Component (Tables) |
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Schedule of Accumulated Other Comprehensive Income | The following table provides a summary of the changes in accumulated other comprehensive income for the three months ended March 31, 2017 and 2016:
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Property and Equipment (Tables) |
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Property, Plant and Equipment | The following table sets forth the amounts of property and equipment by each class of depreciable assets as of March 31, 2017 and December 31, 2016:
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Goodwill and Other Intangible Assets (Tables) |
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Identifiable Intangible Assets Subject To Amortization | The following table sets forth the amounts of our identifiable intangible assets subject to amortization:
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Estimated Amortization Expense For Intangibles Subject To Amortization | The following table sets forth the estimated amortization expense for intangibles subject to amortization for the remainder of 2017, the following five fiscal years and thereafter:
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Fair Value Measurements (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | The following tables provide fair value measurement information for our marketable securities and deferred compensation fund investments as of March 31, 2017 and December 31, 2016:
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Marketable Debt Securities |
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Contractual Maturities Of Available For Sale Investments | The following table summarizes the contractual maturities of debt securities held at March 31, 2017 and December 31, 2016, which are classified as marketable securities in the Consolidated Balance Sheets:
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Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense | A summary of stock-based compensation expense for the three months ended March 31, 2017 and 2016 is as follows:
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Summary of Other Information of Stock Option Plans | A summary of our stock options outstanding under the Plan as of December 31, 2016 and changes during the three months ended March 31, 2017 is as follows:
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Assumption For Fair Value of Options Granted | The fair value of stock option awards granted in 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:
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Summarized Information of Stock Options Outstanding | The following table summarizes other information about our stock options at March 31, 2017:
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Schedule of Restricted Stock Outstanding Stock-based Compensation | A summary of our outstanding restricted stock awards as of December 31, 2016 and changes during the three months ended March 31, 2017 is as follows:
A summary of our outstanding restricted stock units as of December 31, 2016 and changes during the three months ended March 31, 2017 is as follows:
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Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The stock-based compensation expense associated with the options granted in 2017 and 2016 under our ESPP was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:
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Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments | The following table summarizes information about our SERP during the three months ended March 31, 2017 and 2016:
(1) Both the SERP match and the deferrals are included in the selling, general and administrative caption in our consolidated statements of comprehensive income. |
Dividends (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Payable | During the three months ended March 31, 2017, we paid regular quarterly cash dividends totaling approximately $13.6 million as follows:
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Schedule of Dividends Payable on Outstanding Weighted Average Number of Basic Common Shares | Cash dividends declared on our outstanding weighted average number of basic common shares for the periods presented were as follows:
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information of Reportable Segments |
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Earnings Per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | The table below reconciles the weighted-average basic and diluted common shares outstanding:
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Description of Business and Significant Accounting Policies (Details) |
3 Months Ended | |
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Mar. 31, 2017
financial_institution
segment
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Dec. 31, 2016
financial_institution
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Schedule of Accounting Policies [Line Items] | ||
Service term | 1 year | |
Number of reportable segments | segment | 2 | |
Amortization period of inventories and supplies | 24 months | |
Number of financial institutions holding cash and cash equivalents and marketable securities | financial_institution | 1 | 1 |
Minimum | ||
Schedule of Accounting Policies [Line Items] | ||
Days to notify cancellation of service | 30 days | |
Initial period of service term | 60 days | |
Maximum | ||
Schedule of Accounting Policies [Line Items] | ||
Days to notify cancellation of service | 90 days | |
Initial period of service term | 120 days |
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Accumulated other comprehensive income | ||
Beginning balance | $ 338,842 | |
Other comprehensive income before reclassifications | 446 | $ 594 |
Amounts reclassified from accumulated other comprehensive (loss) income | 33 | (39) |
Net current period change in other comprehensive income | 479 | 555 |
Ending balance | 356,477 | |
Accumulated Other Comprehensive Income (Loss), net of taxes | ||
Accumulated other comprehensive income | ||
Beginning balance | (319) | 543 |
Ending balance | $ 160 | $ 1,098 |
Changes in Accumulated Other Comprehensive Income by Component - Additional Information (Details) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Realized gains (losses) from the sale of available for sale securities | $ (48) | $ 62 |
Available-for-sale securities, tax | $ 300 | $ 300 |
Property and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | $ 34,541 | $ 34,019 | |
Less accumulated depreciation | 21,144 | 20,564 | |
Property and equipment, net | 13,397 | 13,455 | |
Depreciation | 1,300 | $ 1,200 | |
Housekeeping and Dietary equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | 21,431 | 21,136 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | 11,977 | 11,750 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | $ 1,133 | $ 1,133 |
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Goodwill [Line Items] | |||
Goodwill | $ 44,438 | $ 44,438 | |
Amortization expense | $ 600 | $ 800 | |
Customer Relationships | |||
Goodwill [Line Items] | |||
Weighted-average amortization period of finite-lived intangible assets | 9 years 8 months | ||
Housekeeping Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 42,300 | ||
Dietary Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 2,100 |
Goodwill and Other Intangible Assets - Identifiable Intangible Assets Subject To Amortization (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, gross | $ 29,081 | $ 29,081 |
Less accumulated amortization | 15,279 | 14,672 |
Other intangibles, net | 13,802 | 14,409 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, gross | $ 29,081 | $ 29,081 |
Goodwill and Other Intangible Assets - Estimated Amortization Expense For Intangibles Subject To Amortization (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
April 1 to December 31, 2017 | $ 1,820 |
2018 | 2,328 |
2019 | 2,130 |
2020 | 2,130 |
2021 | 2,130 |
2022 | 2,130 |
Thereafter | $ 1,134 |
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Fair Value Disclosures [Abstract] | ||
Unrealized gain on available for sale marketable securities, net of taxes | $ 479 | $ 555 |
Proceeds from available for sale municipal bonds | 7,500 | 2,000 |
Realized gains (losses) from the sale of available for sale securities | $ (48) | $ 62 |
Fair Value Measurements - Marketable Securities and Deferred Compensation Fund Investment Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 68,260 | $ 67,730 |
Deferred compensation fund | 25,082 | 24,119 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 22,179 | 20,972 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,903 | 3,147 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 25,082 | 24,119 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 25,082 | 24,119 |
Municipal bonds — available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 68,260 | 67,730 |
Municipal bonds — available for sale | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds — available for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 68,260 | 67,730 |
Municipal bonds — available for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds — available for sale | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 68,260 | 67,730 |
Municipal bonds — available for sale | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 68,260 | 67,730 |
Money Market | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Money Market | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,903 | 3,147 |
Money Market | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Money Market | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,903 | 3,147 |
Money Market | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,903 | 3,147 |
Balanced and Lifestyle | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 7,420 | 7,162 |
Balanced and Lifestyle | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Balanced and Lifestyle | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Balanced and Lifestyle | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 7,420 | 7,162 |
Balanced and Lifestyle | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 7,420 | 7,162 |
Large Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 6,226 | 5,583 |
Large Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Large Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Large Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 6,226 | 5,583 |
Large Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 6,226 | 5,583 |
Small Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,983 | 2,933 |
Small Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Small Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Small Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,983 | 2,933 |
Small Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,983 | 2,933 |
Fixed Income | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,799 | 2,752 |
Fixed Income | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Fixed Income | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Fixed Income | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,799 | 2,752 |
Fixed Income | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,799 | 2,752 |
International | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,237 | 1,132 |
International | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
International | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
International | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,237 | 1,132 |
International | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,237 | 1,132 |
Mid Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,514 | 1,410 |
Mid Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Mid Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Mid Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,514 | 1,410 |
Mid Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | $ 1,514 | $ 1,410 |
Fair Value Measurements - Marketable Debt Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Amortized Cost | $ 68,013 | $ 68,220 |
Gross Unrealized Gains | 477 | 178 |
Gross Unrealized Losses | (230) | (668) |
Estimated Fair Value | 68,260 | 67,730 |
Other-than-temporary Impairments | 0 | 0 |
Municipal bonds — available for sale | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Amortized Cost | 68,013 | 68,220 |
Gross Unrealized Gains | 477 | 178 |
Gross Unrealized Losses | (230) | (668) |
Estimated Fair Value | 68,260 | 67,730 |
Other-than-temporary Impairments | $ 0 | $ 0 |
Fair Value Measurements - Contractual Maturities of Available For Sale Investments (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Maturing in one year or less | $ 784 | $ 973 |
Maturing in second year through fifth year | 18,021 | 28,671 |
Maturing in sixth year through tenth year | 24,076 | 21,651 |
Maturing after ten years | 25,379 | 16,435 |
Total debt securities | $ 68,260 | $ 67,730 |
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | $ 1,580 | $ 1,118 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 1,172 | 878 |
Restricted stock and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 287 | 135 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | $ 121 | $ 105 |
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
offering
$ / shares
shares
|
Mar. 31, 2016
USD ($)
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ | $ 15.2 | |
Period of expense of unrecognized compensation cost, years | 3 years 6 months | |
Common stock reserved for future issuance (in shares) | 3,700,000 | |
Shares available for future grant (in shares) | 700,000 | |
Maximum term of grants | 10 years | |
Options vested and exercisable, period | 5 years | |
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ / shares | $ 8.52 | $ 7.46 |
Aggregate intrinsic value of stock options exercised | $ | $ 3.5 | $ 1.7 |
Supplemental Employee Retirement Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized for issuance (in shares) | 1,000,000 | |
Remaining shares authorized for issuance (in shares) | 400,000 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | 0 | 44,000 |
Weighted average grant date fair value of restricted stock granted (in dollars per share) | $ / shares | $ 0.00 | $ 34.14 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | 81,000 | 0 |
Weighted average grant date fair value of restricted stock granted (in dollars per share) | $ / shares | $ 39.38 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant (in shares) | 2,300,000 | |
Number of additional offerings | offering | 5 | |
Requisite service period for plan participation eligibility | 2 years | |
Stock options authorized to issue to employees (in shares) | 4,100,000 |
Share-Based Compensation - Summary of Stock Options Outstanding (Details) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2017
$ / shares
shares
| |
Number of Shares | |
December 31, 2016 (in shares) | shares | 2,615 |
Granted (in shares) | shares | 544 |
Cancelled (in shares) | shares | (39) |
Exercised (in shares) | shares | (201) |
March 31, 2017 (in shares) | shares | 2,919 |
Weighted Average Exercise Price | |
December 31, 2016 (in dollars per share) | $ / shares | $ 24.61 |
Granted (in dollars per share) | $ / shares | 39.38 |
Cancelled (in dollars per share) | $ / shares | 33.82 |
Exercised (in dollars per share) | $ / shares | 23.31 |
March 31, 2017 (in dollars per share) | $ / shares | $ 27.33 |
Share-Based Compensation - Assumptions for Fair Value of Options Granted (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free interest rate | 2.00% | 2.00% |
Weighted average expected life in years | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 25.10% | 26.00% |
Dividend yield | 1.90% | 2.00% |
Share-Based Compensation - Summarized Information About Stock Awards (Details) $ / shares in Units, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
$ / shares
shares
| |
Outstanding: | |
Aggregate intrinsic value | $ 46,007 |
Weighted average remaining contractual life (years) | 6 years 8 months |
Exercisable: | |
Number of shares (in shares) | shares | 1,437,000 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 20.50 |
Aggregate intrinsic value | $ 32,464 |
Weighted average remaining contractual life (years) | 4 years 9 months |
Share-Based Compensation - Summary of Restricted Stock Activity (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Restricted Stock | ||
Shares | ||
December 31, 2016 (in shares) | 74,000 | |
Granted (in shares) | 0 | 44,000 |
Vested (in shares) | (18,000) | |
Forfeited (in shares) | 0 | |
March 31, 2017 (in shares) | 56,000 | |
Weighted Average Grant Date Fair Value | ||
December 31, 2016 (in dollars per share) | $ 32.09 | |
Granted (in dollars per share) | 0.00 | $ 34.14 |
Vested (in dollars per share) | 31.41 | |
Forfeited (in dollars per share) | 0.00 | |
March 31, 2017 (in dollars per share) | $ 32.30 | |
Restricted Stock Units (RSUs) | ||
Shares | ||
December 31, 2016 (in shares) | 0 | |
Granted (in shares) | 81,000 | 0 |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
March 31, 2017 (in shares) | 81,000 | |
Weighted Average Grant Date Fair Value | ||
December 31, 2016 (in dollars per share) | $ 0.00 | |
Granted (in dollars per share) | 39.38 | |
Vested (in dollars per share) | 0.00 | |
Forfeited (in dollars per share) | 0.00 | |
March 31, 2017 (in dollars per share) | $ 39.38 |
Share-Based Compensation - Assumptions For Employee Stock Purchase Plan (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.00% | 2.00% |
Weighted average expected life in years | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 25.10% | 26.00% |
Dividend yield | 1.90% | 2.00% |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.05% | 0.58% |
Weighted average expected life in years | 1 year | 1 year |
Expected volatility | 21.20% | 19.70% |
Dividend yield | 1.90% | 2.00% |
Share-Based Compensation - Deferred Compensation Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
SERP expense | $ 1,580 | $ 1,118 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
SERP expense | 160 | 164 |
Unrealized gain (loss) recorded in SERP liability account | $ 1,161 | $ (328) |
Dividends - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 11, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Equity [Abstract] | |||
Dividends paid | $ 13,624 | $ 13,158 | |
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.18750 | $ 0.18250 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.18750 |
Dividends - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Equity [Abstract] | ||
Cash dividends paid per common share (in dollars per share) | $ 0.18625 | |
Total cash dividends paid | $ 13,624 | $ 13,158 |
Dividends - Cash Dividends per Common Share (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.18750 | $ 0.18250 |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Mar. 31, 2017 |
|
Subsequent Event [Line Items] | ||
Unrecognized tax benefits | $ 0 | |
Forecast | ||
Subsequent Event [Line Items] | ||
Effective tax rate | 35.00% |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Related Party Transactions [Abstract] | ||
Fees paid to related party firm (less than) | $ 120 | $ 120 |
Percentage of fee paid to related party in relation to related party's total revenue (less than) | 5.00% | 5.00% |
Segment Information - Schedule of Information of Reportable Segments (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
segment
|
Mar. 31, 2016
USD ($)
|
|
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 404,490 | $ 384,807 |
Income before income taxes | 32,279 | 29,604 |
Housekeeping Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 243,423 | 238,279 |
Dietary Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 161,067 | 146,528 |
Operating Segments | Housekeeping Services | ||
Segment Reporting Information [Line Items] | ||
Income before income taxes | 23,202 | 22,500 |
Operating Segments | Dietary Services | ||
Segment Reporting Information [Line Items] | ||
Income before income taxes | 10,225 | 9,148 |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Income before income taxes | $ (1,148) | $ (2,044) |
Earnings Per Common Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Earnings Per Share [Abstract] | ||
Weighted average number of common shares outstanding - basic (in shares) | 73,074 | 72,364 |
Effect of dilutive securities (in shares) | 872 | 650 |
Weighted average number of common shares outstanding - diluted (in shares) | 73,946 | 73,014 |
Earnings Per Common Share - Additional Information (Details) - $ / shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Earnings Per Share [Abstract] | ||
Options outstanding to purchase common stock excluded from computation of diluted earnings per common share (in shares) | 0.5 | 1.0 |
Antidilutive securities excluded from earnings per share, average exercise price (in dollars per share) | $ 39.38 | $ 32.45 |
Other Contingencies (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
financial_covenant
|
Apr. 03, 2017
USD ($)
|
|
Short-term Debt [Line Items] | ||
Bank line of credit | $ 200,000,000 | |
Borrowings under line of credit | 0 | |
Reduction of bank line of credit | 67,200,000 | |
Amount available under line of credit | $ 132,800,000 | |
Number of financial covenants | financial_covenant | 1 | |
Standby Letter Of Credit | ||
Short-term Debt [Line Items] | ||
Irrevocable standby letter of credit, outstanding | $ 67,200,000 | |
Standby Letter Of Credit | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Irrevocable standby letter of credit, outstanding | $ 70,700,000 |
Subsequent Events (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Subsequent Event [Line Items] | |||
Service agreement revenue | $ 404,490 | $ 384,807 | |
Agreement | Forecast | |||
Subsequent Event [Line Items] | |||
Service agreement revenue | $ 160,000 |
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