-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EwUBeqaHvLKNt/N81Pi5TWnFOsQPHHS4+KEYMm3WrG9pdo2YJFDe53qICxoXo8fa rHbgeWYduqohSa2NpdgxOw== 0000950116-98-002180.txt : 19981113 0000950116-98-002180.hdr.sgml : 19981113 ACCESSION NUMBER: 0000950116-98-002180 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEALTHCARE SERVICES GROUP INC CENTRAL INDEX KEY: 0000731012 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-TO DWELLINGS & OTHER BUILDINGS [7340] IRS NUMBER: 232018365 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-12015 FILM NUMBER: 98745067 BUSINESS ADDRESS: STREET 1: 2643 HUNTINGDON PIKE CITY: HUNTINGDON VALLEY STATE: PA ZIP: 19006 BUSINESS PHONE: 2159381661 MAIL ADDRESS: STREET 1: 2643 HUNTINGDON PIKEE CITY: HUNTINGDON VALLEY STATE: PA ZIP: 19006 10-Q 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1998 Commission File Number 0-12015 HEALTHCARE SERVICES GROUP, INC. ------------------------------------------------------- (Exact name of registrant as specified in its charter) Pennsylvania 23-2018365 - ------------------------------- ---------------------------- (State or other jurisdiction of (IRS Employer Identification incorporation or organization) number) 2643 Huntingdon Pike, Huntingdon Valley, Pennsylvania 19006 ----------------------------------------------------------- (Address of principal executive office) (Zip code) Registrant's telephone number, including area code: 215-938-1661 ------------ Indicate mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months ( or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for past 90 days. YES __x__ NO _____ Number of shares of common stock, issued and outstanding as of November 10, 1998 is 11,230,887 Total of 15 Pages
INDEX PART I. FINANCIAL INFORMATION PAGE NO. Consolidated Balance Sheets as of 2 September 30, 1998 and December 31, 1997 Consolidated Statements of Income for the Three Months Ended 3 September 30, 1998 and 1997 Consolidated Statements of Income for the Nine Months Ended September 30, 1998 and 1997 4 Consolidated Statements of Cash Flows for the Nine Months 5 ended September 30, 1998 and 1997 Notes To Consolidated Financial Statements 6 - 8 Management's Discussion and Analysis of Financial Condition 9 - 12 and Results Of Operations Part II. Other Information 13 Signatures 14
-1- HEALTHCARE SERVICES GROUP, INC. Consolidated Balance Sheets
September 30, December 31, 1998 1997 (Unaudited) (Audited) ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $22,329,915 $17,774,219 Accounts and notes receivable, less allowance for doubtful accounts of $4,096,000 in 1998 and $3,663,000 in 1997 41,349,879 36,560,661 Prepaid income taxes -- 366,712 Inventories and supplies 7,632,703 7,339,928 Deferred income taxes 708,939 567,119 Prepaid expenses and other 2,727,912 2,859,133 ----------- ----------- Total current assets 74,749,348 65,467,772 ----------- ----------- PROPERTY AND EQUIPMENT: Laundry and linen equipment installations 9,762,036 10,993,558 Housekeeping equipment and office furniture 8,318,117 8,731,042 Autos and trucks 51,110 157,611 ----------- ----------- 18,131,263 19,882,211 Less accumulated depreciation 12,459,260 14,245,071 ----------- ----------- 5,672,003 5,637,140 COST IN EXCESS OF FAIR VALUE OF NET ASSETS ACQUIRED less accumulated amortization of $1,393,378 in 1998 and $1,312,660 in 1997 1,962,099 2,042,817 DEFERRED INCOME TAXES 2,412,890 1,067,670 OTHER NONCURRENT ASSETS 9,952,640 10,674,340 ----------- ----------- $94,748,980 $84,889,739 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,836,474 $ 4,275,902 Accrued payroll, accrued and withheld payroll taxes 6,806,119 3,770,310 Other accrued expenses 879,400 944,501 Income taxes payable 1,300,561 Accrued insurance claims 785,337 771,142 ----------- ----------- Total current liabilities 12,607,891 9,761,855 ACCRUED INSURANCE CLAIMS 2,954,365 2,900,964 COMMITMENTS AND CONTINGENCIES (Note 3) STOCKHOLDERS' EQUITY: (Note 2) Common stock, $.01 par value: 22,500,000 shares authorized, 11,158,182 shares issued and outstanding in 1998 and 7,386,863 in 1997 111,582 73,869 Additional paid in capital 26,361,701 26,005,004 Retained earnings 52,713,441 46,148,047 ----------- ----------- Total stockholders' equity 79,186,724 72,226,920 ----------- ----------- $94,748,980 $84,889,739 =========== ===========
See accompanying notes. -2- Healthcare Services Group, Inc. Consolidated Income Statements (Unaudited) For the Three Months Ended September 30, 1998 1997 ----------- ----------- Revenues $54,038,751 $47,209,073 Operating costs and expenses: Costs of services provided 46,582,281 40,078,568 Selling general and administrative 4,554,448 4,259,971 Other Income: Interest Income 372,872 257,903 ----------- ----------- Income before income taxes 3,274,894 3,128,437 Income taxes 1,002,000 1,273,000 ----------- ----------- Net Income $ 2,272,894 $ 1,855,437 =========== =========== Earnings per share of common stock: (Notes 2 and 5) Basic earnings per common share $ 0.20 $ 0.17 =========== =========== Diluted earnings per common share $ 0.20 $ 0.16 =========== =========== Basic weighted average number of common shares outstanding 11,262,386 11,055,189 =========== =========== Diluted weighted average number of common shares outstanding 11,648,193 11,286,944 =========== =========== See accompanying notes -3- Healthcare Services Group, Inc. Consolidated Income Statements (Unaudited)
For the Nine Months Ended September 30, 1998 1997 ------------- ------------- Revenues $ 151,211,699 $ 134,160,823 Operating costs and expenses: Costs of services provided 129,042,608 114,190,260 Selling general and administrative 12,795,997 11,787,684 Other Income (Expense): Settlement of civil litigation ( Note 4) -- (1,800,000) Interest Income 1,091,301 1,099,123 ------------- ------------- Income before income taxes 10,464,395 7,482,002 Income taxes 3,899,000 3,560,000 ------------- ------------- Net Income $ 6,565,395 $ 3,922,002 ============= ============= Earnings per share of common stock: (Notes 2 and 5) Basic earnings per common share $ 0.59 $ 0.34 ============= ============= Diluted earnings per common share $ 0.57 $ 0.34 ============= ============= Basic weighted average number of common shares outstanding 11,203,919 11,438,280 ============= ============= Diluted weighted average number of common shares outstanding 11,554,287 11,636,508 ============= =============
See accompanying notes -4- HEALTHCARE SERVICES GROUP, INC. Statements of Cash Flows (Unaudited)
For the Nine Months Ended September 30, ---------------------------- 1998 1997 ------------ ------------ Cash flows from operating activities: Net Income $ 6,565,395 $ 3,922,002 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,512,199 1,598,078 Bad debt provision 1,840,000 1,125,000 Deferred income taxes (benefits) (1,487,040) 2,972 Tax benefit of stock option transactions 309,667 51,784 Changes in operating assets and liabilities: Accounts and notes receivable (6,628,734) (4,352,424) Prepaid income taxes 366,712 Inventories and supplies (292,775) (18,682) Changes to long term notes receivable 924,160 (114,509) Accounts payable and other accrued expenses (1,504,530) (758,263) Accrued payroll, accrued and withheld payroll taxes 3,035,809 2,817,145 Accrued insurance claims 67,596 446,773 Income taxes payable 1,300,561 1,491,119 Prepaid expenses and other assets (71,724) (196,399) ------------ ------------ Net cash provided by operating activities 5,937,296 6,014,596 ------------ ------------ Cash flows from investing activities: Disposals of fixed assets 122,659 162,452 Additions to property and equipment (1,589,002) (1,236,009) ------------ ------------ Net cash used in investing activities (1,466,343) (1,073,557) ------------ ------------ Cash flows from financing activities: Purchase of treasury stock (1,500,180) (9,147,680) Proceeds from the exercise of stock options 1,584,923 880,925 ------------ ------------ Net cash provided by (used in) financing activities 84,743 (8,266,755) ------------ ------------ Net increase (decrease) in cash and cash equivalents 4,555,696 (3,325,716) Cash and cash equivalents at beginning of the year 17,774,219 22,677,290 ------------ ------------ Cash and cash equivalents at end of the period $ 22,329,915 $ 19,351,574 ============ ============
See accompanying notes. -5- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - Basis of Reporting The accompanying financial statements are unaudited and do not include certain information and note disclosures required by generally accepted accounting principles for complete financial statements. However, in the opinion of the Company, all adjustments considered necessary for a fair presentation have been included. The balance sheet shown in this report as of December 31, 1997 has been derived from, and does not include, all the disclosures contained in the financial statements for the year ended December 31, 1997. The financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1997. The results of operations for the three and nine month periods ended September 30, 1998 and 1997 are not necessarily indicative of the results that may be expected for the full fiscal year. Note 2 - Three-For-Two Stock Split On August 5, 1998, the Board of Directors declared a three-for-two stock split of the Company's Common Stock effected in the form of a 50% stock dividend payable on August 27, 1998 to Common Stock stockholders of record on August 17, 1998. An amount equal to the par value of the shares of Common Stock issued was transferred from additional paid in capital to common stock in the September 30, 1998 balance sheet and earnings per common share have been adjusted to reflect the three-for-two stock split. The effect of this action was to increase shares outstanding at August 27, 1998 by approximately 3,765,694 to approximately 11,297,082. Note 3 - Other Contingencies The Company has a $13,000,000 bank line of credit on which it may draw to meet short-term liquidity requirements or for other purposes, that expires on September 30, 1999. Amounts drawn under the line are payable upon demand. At both September 30, 1998 and December 31, 1997, there were no borrowings under the line. However at both September 30, 1998 and December 31, 1997, the Company had outstanding approximately $13,000,000 of irrevocable standby letters of credit, which relate to payment obligations under the Company's insurance program. As a result of letters of credit issued, there are no amounts available under the line at either September 30, 1998 and December 31, 1997. The Company is also involved in miscellaneous claims and litigation arising in the ordinary course of business. The Company believes that these matters, taken individually or in the aggregate, would not have a material adverse impact on the Company's financial position or results of operations. -6- Note 4 - Settlement of Civil Litigation On July 24, 1997, the Company and the U.S. Attorney for the Eastern District of Pennsylvania reached a settlement of the civil litigation commenced by the United States Attorney on or about May 24, 1996. This litigation was a result of and arose from (1) payments made by the Company for supplies which were allegedly furnished to clients of the Company and the actions of the Company after the payments were made and (2) payments made to certain clients of the Company in connection with the purchase of laundry installations from those clients. All claims described in the complaint were settled through the payment in July, 1997 of $1,225,000 to the United States government. The Company and its officers denied all allegations, and all allegations against the Company and its officers were dismissed with prejudice. The monetary impact of this settlement plus estimated related legal costs of $575,000, amounting to approximately $1,800,000 was accrued at June 30, 1997 and reduced the net income for the nine month period ended September 30, 1997, as a result of the settlement payment, by $1,577,000 or $.14 per basic and $.13 per diluted common share (after the effect of the August 5, 1998 three-for-two stock split). The Company has not recorded an income tax benefit in the accompanying financial statements for the settlement payment of $1,225,000 and therefore the effective tax rate of 47.6% for the nine month period ended September 30, 1997 is in excess of the statutory rate. Note 5 - Earnings Per Common Share In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 (SFAS No. 128) Earnings per Share, which is effective for financial statements for periods ending after December 15, 1997 and requires that all prior period earnings per share data be restated. The Company's financial statements reflect this adoption. The new standard eliminates primary and fully diluted earnings per common share and requires presentation of basic and, if applicable, diluted earnings per common share. Basic earnings per common share is computed by dividing income available to common shareholders by the weighted-average common shares outstanding for the period. Diluted earnings per common share reflects the weighted-average common shares outstanding and dilutive potential common shares, such as stock options. Earnings per common share reflect the three-for-two stock split described in Note 2. -7- Note 6 - Effect of Recently Issued Accounting Pronouncements Reporting Comprehensive Income In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income", which is effective for fiscal years beginning after December 15, 1997. The Statement addresses the reporting and displaying of comprehensive income and its components. Adoption of SFAS No. 130 relates to disclosure within the financial statements and did not impact the Company's financial statements. Disclosures about Segments of an Enterprise and Related Information In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information" which is effective for fiscal years beginning after December 15, 1997. The Statement changes the way public companies report information about segments of their business in their annual financial statements and requires them to report selected segment information in their quarterly reports. Adoption of SFAS No. 131 is not expected to have a material effect on the Company's financial statements. Employers' Disclosure About Pensions and Postretirement Benefits In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosure About Pensions and Other Postretirement Benefits." SFAS No. 132, effective for the year ending December 31, 1998, requires additional disclosures and eliminates certain existing disclosures, but does not affect recognition or measurement of net pension or postretirement benefit cost. Restatement of financial statement disclosures for prior periods is required. Adoption of SFAS No. 132 is not expected to have a material effect on the Company's financial statements. -8- PART I. ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the financial statements and notes thereto. RESULTS OF OPERATIONS Revenues for the third quarter of 1998 increased by 14.5% over revenues in the corresponding 1997 quarter. Revenues for the nine months ended September 30, 1998 increased by 12.7 % over the corresponding 1997 period. The following factors contributed to the increase in 1998 third quarter and nine months period revenues as compared to the corresponding 1997 periods: service agreements with new clients increased revenues by 23.6 % for the third quarter and 19.4 % for the nine month period; providing new services to existing clients increased revenues 3.3 % for the third quarter and 6.5% for the nine month period; and cancellations and other minor changes decreased revenues 12.4 % for the third quarter and 13.2 % for the nine month period. Cost of services provided as a percentage of revenues increased to 86.2% for the third quarter of 1998 from 84.9 % in the corresponding 1997 quarter. In addition, cost of services as a percentage of revenue increased slightly to 85.3% for the nine month period ending September 30, 1998 from 85.1% in the same 1997 period. The primary factors affecting specific variations in the 1998 third quarter and nine month periods' cost of services provided as a percentage of revenue and their effects on the respective 1.3% and .2 % increases are as follows: in the third quarter an increase of 1.0% in labor costs and payroll related taxes, an increase of .8% in the allowance for doubtful accounts and an increase of .6% in the cost of supplies consumed in performing services; and offsetting these increases was a decrease of .7% in workers' compensation, general liability and other insurance; in the nine month period an increase of 1.1% in the cost of supplies consumed in performing services and an increase of .4% in the allowance for doubtful accounts; offsetting these increases was a decrease of .5% in labor costs and payroll related taxes and a decrease of .5% in workers' compensation, general liability and other insurance. Selling, general and administrative expenses as a percentage of revenue decreased in the third quarter of 1998 to 8.4% as compared to 9.0% in the corresponding 1997 three month period. Additionally, during the nine month period ended September 30, 1998 selling, general and administrative expenses as -9- a percentage of revenue decreased to 8.5% as compared to 8.8% in the corresponding 1997 period. The three and nine month decreases are primarily attributable to the Company's ability to control certain selling, general and administrative expenses while also comparing them to a greater revenue base. The effective tax rate for the third quarter 1998, as well as the nine month period ended September 30, 1998 was positively impacted by the reversal of prior years' over accruals for income taxes. Liquidity and Capital Resources At September 30, 1998 the Company had working capital and cash of $62,141,458 and $22,329,915 respectively as compared to December 31, 1997 working capital and cash of $55,705,917 and $17,774,219, respectively. The Company's current ratio at September 30, 1998 is 5.9 to 1 compared to 6.7 to 1 at December 31, 1997. The net cash provided by the Company's operating activities was $5,937,296 for the nine month period ended September 30, 1998 as compared to net cash provided of $6,014,596 in the same 1997 period. The principle sources of cash flows from operating activities for the nine month periods ended September 30, 1998 and 1997 were net income, timing of payments for payroll, payroll related taxes, depreciation and amortization and charges to operations for bad debt provisions. The operating activity that used the largest amount of cash was a $5,704,574 and $4,466,933 net increase in accounts and current and long term notes receivable at September 30, 1998 and 1997, respectively. The increases in these amounts resulted primarily from the growth in the Company's revenues. Additionally, operating activities' cash flows for the nine month period ended September 30, 1998 was decreased by $1,504,530 as a result of the timing of payments to vendors. The Company's principle use of cash in investing activities for the nine month periods ended September 30, 1998 and 1997 was the purchase of housekeeping equipment and laundry equipment installations. The Company expends considerable effort to collect the amounts due for its services on the terms agreed upon with its clients. Many of the Company's clients participate in programs funded by federal and state governmental agencies which historically have encountered delays in making payments to its program participants. Whenever possible, when a client falls behind in making agreed-upon payments, the Company converts the unpaid accounts receivable to interest bearing promissory notes. The promissory notes receivable provide a means by which to further evidence the amounts owed, provide a definitive repayment plan and therefore may enhance the ultimate collectibility of the amounts due. In some instances the Company obtains a security interest in certain of the debtors' assets. The Company encounters difficulty in collecting amounts due from certain of its clients, including those in bankruptcy, those turned over to collection attorneys, those which have terminated service agreements and slow payers experiencing financial difficulties. In order to provide for these -10- collection problems and the general risk associated with the granting of credit terms, the Company has increased its bad debt provision by approximately $1,840,000 in the nine month period ended September 30, 1998. In making its evaluation, in addition to analyzing and anticipating, where possible, the specific cases described above, management considers the general collection risk associated with trends in the long-term care industry. The Company has a $13,000,000 bank line of credit on which it may draw to meet short-term liquidity requirements in excess of internally generated cash flow, that expires on September 30, 1999. Amounts drawn under the line are payable on demand. At September 30, 1998, there were no borrowings under the line. However, at such date, the line was fully used as a result of contingent liabilities of the Company to the lender relating to letters of credit issued for the Company (See Note 3 of Notes to Financial Statements). In light of its existing working capital balances, the Company does not believe it will need to currently increase its bank line of credit. At September 30, 1998, the Company had $22,329,915 of cash and cash equivalents, which it views as its principal measure of liquidity. The level of capital expenditures by the Company is generally dependent on the number of new clients obtained. Such capital expenditures primarily consist of housekeeping equipment and laundry and linen equipment installations. Although the Company has no remaining specific material commitments for capital expenditures during calendar year 1998, it estimates that it will have incurred capital expenditures of approximately $2,000,000 during this year in connection with housekeeping equipment and laundry and linen equipment installations in its clients' facilities, as well as hardware and software expenditures relating to the implementation of a new computerized financial reporting system. The Company believes that its cash from operations, existing balances and credit line will be adequate for the foreseeable future to satisfy the needs of its operations and to fund its continued growth. However, if the need arose, the Company would seek to obtain capital from such sources as long-term debt or equity financing. In accordance with the Company's previously announced authorizations to purchase its outstanding common stock, the Company expended approximately $1,500,000 to purchase 150,000 shares of its common stock in September 1998 at an average price of $10.00 per common share and $10,900,000 during 1997 to purchase 1,413,750 shares of its common stock at an average price of $7.73 per common share. The Company remains authorized to purchase approximately 613,500 shares pursuant to previous Board of Directors' action (in each case after giving effect to the 50% stock dividend described below). The Company's Board of Directors declared a three-for-two stock split in the form of a 50% stock dividend payable August 27, 1998, in shares of the Company's Common Stock to the owners of its Common Stock of record at the close of business August 17, 1998. The effect of this action was to increase shares outstanding by approximately 3,765,694 to approximately 11,297,082. The three-for-two stock split has been reflected in the September 30, 1998 balance sheet and earnings per common share have been adjusted to reflect the three-for-two stock split. -11- Other Matters - Year 2000 Compliance The Company is in the process of implementing new operating and application software which it believes will be fully operational during 1998. The Company has been notified by its software manufacturer, as well as the firm providing installation support, that the new applications have functionality for the year 2000. The Company does not believe it will incur any material expense, beyond the new systems installation costs, with respect to year 2000 issues. Additionally, the Company utilizes an independent service bureau for the processing of payroll and payroll tax related operations. Many of the Company's clients participate in programs funded by federal and state governmental agencies which may be affected by year 2000 issue. The Company has been notified by its payroll processing company that all of its systems will be fully compliant with year 2000 requirements. Any failure by the Company, its outside processing company, its clients or the federal and state governmental agencies to effectively monitor or implement the above referenced operational, financial, management and technical support systems with reference to year 2000 compliance could have a material adverse effect on the Company's business and consolidated results of operations. Effects of Inflation All of the Company's service agreements allow it to pass through to its clients increases in the cost of labor resulting from new wage agreements. The Company believes that it will be able to recover increases in costs attributable to inflation by continuing to pass through cost increases to its clients. Cautionary Statements Regarding Forward Looking Statements Certain matters discussed may include forward-looking statements that are subject to risks and uncertainties that could cause actual results or objectives to differ materially from those projected. Such risks and uncertainties include, but are not limited to, risks arising from the Company providing its services exclusively to the healthcare industry and credit and collection risks associated with this industry. Additionally, the Company's operating results would be adversely effected if unexpected increases in the costs of labor, materials, supplies and equipment used in performing its services could not be passed on to clients. In addition, the Company believes that in order to improve its financial performance it must continue to obtain service agreements with new clients, as well as providing new services to existing clients, achieve modest price increases on current service agreements with existing clients and maintain internal cost reduction strategies at the various operational levels of the Company. Furthermore, the Company believes that its ability to sustain the internal development of managerial personnel is an important factor impacting future operating results and successfully executing projected growth strategies. -12- PART II. Other Information Item 1. Legal Proceedings. Not Applicable Item 2. Changes in Securities. Not Applicable Item 3. Defaults under Senior Securities. Not Applicable Item 4. Submission of Matters to a Vote of Security Not Applicable Holders Item 5. Other Information. a) The Company's Board of Directors declared a three-for-two stock split in the form of a 50% stock dividend payable August 27, 1998, in shares of the Company's Common Stock to the owners of its Common Stock of record at the close of business August 17, 1998. The effect of this action was to increase shares outstanding by approximately 3,765,694 to approximately 11,297,082 shares. Item 6. Exhibits and Reports on Form 8-K. a) Exhibits - 27 - Financial data schedule b) Reports on Form 8-K - None -13- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant had duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HEALTHCARE SERVICES GROUP, INC. November 12, 1998 /s/ Daniel P. McCartney - --------------------- --------------------------------------------- Date DANIEL P. McCARTNEY, Chief Executive Officer November 12, 1998 /s/ Thomas A. Cook - --------------------- ---------------------------------------------- Date THOMAS A. COOK, President and Chief Operating Officer November 12, 1998 /s/ James L. DiStefano - --------------------- --------------------------------------------- Date JAMES L. DiSTEFANO, Chief Financial Officer and Treasurer November 12, 1998 /s/ Richard W. Hudson - --------------------- --------------------------------------------- Date RICHARD W. HUDSON, Vice President-Finance, Secretary and Chief Accounting Officer -14- EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1998 SEP-30-1998 22,329,915 0 45,445,879 4,096,000 7,632,703 74,749,348 18,131,263 12,459,260 94,748,980 12,607,891 0 111,582 0 0 79,075,142 94,748,980 0 151,211,699 129,042,608 141,838,605 0 0 0 10,464,395 3,899,000 6,565,395 0 0 0 6,565,395 .59 .57
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