0000950116-01-501021.txt : 20011031 0000950116-01-501021.hdr.sgml : 20011031 ACCESSION NUMBER: 0000950116-01-501021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011029 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: 1934 Act SEC FILE NUMBER: 000-12015 FILM NUMBER: 1768384 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 tenq.txt FORM 10-Q ================================================================================ 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, 2001 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) 3220 Tillman Drive-Suite 300, Bensalem, Pennsylvania 19020 -------------------------------------------------------------------------------- (Address of principal executive office) (Zip code) Registrant's telephone number, including area code: 215-639-4274 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 October 29, 2001 is 10,910,919 Total of 16 Pages INDEX
PART I. FINANCIAL INFORMATION PAGE NO. -------- Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets as of 2 September 30, 2001 and December 31, 2000 Consolidated Statements of Income for the Three Months Ended 3 September 30, 2001 and 2000 Consolidated Statements of Income for the Nine Months Ended September 30, 2001 and 2000 4 Consolidated Statements of Cash Flows for the Nine Months 5 - 6 ended September 30, 2001 and 2000 Notes To Consolidated Financial Statements 7 - 10 Item 2. Management's Discussion and Analysis of Financial Condition 10 - 13 and Results Of Operations Item 3. Quantitative and Qualitative Disclosure of 13 - 14 Market Risks Part II. Other Information 15 Signatures 16
Balance Sheet Consolidated Balance Sheets
(Unaudited) September 30, December 31, 2001 2000 ----------------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 25,690,195 $ 22,841,618 Accounts and notes receivable, less allowance for doubtful accounts of $5,662,000 in 2001 and $4,914,000 in 2000 52,798,993 52,744,352 Prepaid income taxes 424,534 1,128,624 Inventories and supplies 7,892,487 8,383,963 Deferred income taxes 1,233,831 839,103 Prepaid expenses and other 2,057,228 2,184,141 ------------- ------------- Total current assets 90,097,268 88,121,801 PROPERTY AND EQUIPMENT: Laundry and linen equipment installations 6,802,557 7,303,508 Housekeeping and office equipment 10,475,730 9,696,825 Autos and trucks 30,342 21,329 ------------- ------------- 17,308,629 17,021,662 Less accumulated depreciation 12,457,321 11,863,635 ------------- ------------- 4,851,308 5,158,027 COST IN EXCESS OF FAIR VALUE OF NET ASSETS ACQUIRED less accumulated amortization of $1,716,249 in 2001 and $1,635,531 in 2000 1,639,228 1,719,946 DEFERRED INCOME TAXES 2,044,958 1,366,186 OTHER NONCURRENT ASSETS 12,717,104 11,976,905 ------------- ------------- $111,349,866 $108,342,865 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 4,442,895 $ 4,829,183 Accrued payroll, accrued and withheld payroll taxes 5,130,379 8,209,344 Other accrued expenses 131,271 181,466 Accrued insurance claims 1,223,954 906,699 ------------- ------------- Total current liabilities 10,928,499 14,126,692 ACCRUED INSURANCE CLAIMS 4,604,400 3,410,916 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, $.01 par value: 30,000,000 shares authorized, 11,168,969 shares issued in 2001 and 11,066,591 in 2000 111,690 110,666 Additional paid in capital 25,980,145 25,315,753 Retained earnings 71,311,945 66,140,713 Common stock in treasury, at cost, 262,500 shares in 2001 and 127,500 shares in 2000 (1,586,813) (761,875) ------------- ------------- Total stockholders' equity 95,816,967 90,805,257 ------------- ------------- $111,349,866 $108,342,865 ============= ============= See accompanying notes.
2 Consolidated Income Statements (Unaudited)
For the Three Months Ended September 30, 2001 2000 ------------- ------------- Revenues $ 72,500,363 $ 65,210,687 Operating costs and expenses: Costs of services provided 64,157,195 57,374,336 Selling, general and administrative 5,610,918 5,138,984 Other Income : Interest Income 280,132 265,468 ------------- ------------- Income before income taxes 3,012,382 2,962,835 Income taxes 1,175,400 1,155,000 ------------- ------------- Net Income $ 1,836,982 $ 1,807,835 ============= ============= Basic earnings per common share $ 0.17 $ 0.17 ============= ============= Diluted earnings per common share $ 0.17 $ 0.17 ============= =============
See accompanying notes 3 Healthcare Services Group, Inc. Consolidated Income Statements (Unaudited)
For the Nine Months Ended September 30, 2001 2000 -------------- -------------- Revenues $ 208,393,882 $ 189,188,381 Operating costs and expenses: Costs of services provided 184,642,038 166,863,415 Selling, general and administrative 16,117,233 14,749,220 Other Income : Interest Income 844,622 702,489 ------------- ------------ Income before income taxes 8,479,233 8,278,235 Income taxes 3,308,000 3,215,000 ------------- ------------ Net Income $ 5,171,233 $ 5,063,235 ============= ============ Basic earnings per common share $ 0.47 $ 0.46 ============= ============ Diluted earnings per common share $ 0.47 $ 0.46 ============= ============
See accompanying notes 4 Consolidated Statements of Cash Flows (Unaudited)
For the Nine Months Ended September 30, ---------------------------- 2001 2000 ------------ ------------ Cash flows from operating activities: Net Income $ 5,171,233 $ 5,063,235 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 1,665,854 1,640,297 Bad debt provision 3,350,000 2,250,000 Deferred income taxes (1,073,500) 93,200 Tax benefit of stock option transactions 64,261 832 Changes in operating assets and liabilities: Accounts and notes receivable (3,404,641) (6,758,625) Prepaid income taxes 704,090 543,304 Inventories and supplies 491,476 92,389 Long-term notes receivable (492,278) (1,336,356) Accounts payable and other accrued expenses (436,483) 1,252,601 Accrued payroll, accrued and withheld payroll taxes (2,868,973) (1,208,809) Accrued insurance claims 1,510,739 41,728 Prepaid expenses and other assets (121,010) (195,028) ------------ ------------ Net cash provided by operating activities 4,560,768 1,478,768 ------------ ------------ Cash flows from investing activities: Disposals of fixed assets 178,470 355,732 Additions to property and equipment (1,456,886) (1,322,817) ------------ ------------ Net cash used in investing activities (1,278,416) (967,085) ------------ ------------ Cash flows from financing activities: Purchase of treasury stock (824,938) (761,875) Proceeds from the exercise of stock options 391,163 18,302 ------------ ------------ Net cash used in financing activities (433,775) (743,573) ------------ ------------ Net increase (decrease) in cash and cash equivalents 2,848,577 (231,890) Cash and cash equivalents at beginning of the year 22,841,618 17,198,687 ------------ ------------ Cash and cash equivalents at end of the period $ 25,690,195 $ 16,966,797 ============ ============
See accompanying notes. 5 For the Nine Months Ended September 30, --------------------------- 2001 2000 -------- --------- Supplementary Cash Flow Information: Issuance of 38,753 shares of common stock Pursuant to Employee Stock Purchase Plan $209,993 $ -0- ======== ========= 6 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 (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The balance sheet shown in this report as of December 31, 2000 has been derived from, and does not include, all the disclosures contained in the financial statements for the year ended December 31, 2000. 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, 2000. The results of operations for the three and nine month periods ended September 30, 2001 and 2000 are not necessarily indicative of the results that may be expected for the full fiscal year. Note 2 - Other Contingencies The Company has an $18,000,000 bank line of credit under which it may draw to meet short-term liquidity requirements or for other purposes, that expires on September 30, 2002. Amounts drawn under the line are payable upon demand. At both September 30, 2001 and December 31, 2000, there were no borrowings under the line. However, at such dates, 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 the letters of credit issued, the amount available under the line was reduced by approximately $13,000,000 at both September 30, 2001 and December 31, 2000. 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. Federal legislation enacted in August 1997 changed Medicare policy in a number of ways, most notably the phasing in, effective July 1, 1998, of a Medicare Prospective Payment System ("PPS") for skilled nursing facilities which significantly changed the manner and the amounts of reimbursement they receive. The Company's clients have been adversely affected by PPS, as well as other trends in the long-term care industry resulting in certain of the Company's clients filing for bankruptcy. Others may follow. These factors, in addition to delays in payments from clients, have resulted in and could result in significant additional bad debts in the near future. 7 Note 3 - Segment Information The Company provides housekeeping, laundry, linen, facility maintenance and food services to the healthcare industry. Although there are several service categories, the Company considers its business to consist of one reportable operating segment, by reason of the similarities of the economic characteristics of such services, the methods of delivering such services and the commonality of the overall client base. Although the Company does provide services in Canada, essentially all of its revenue and net income, approximately 99% in each case, is earned in one geographic area, the United States. The Company earned revenue in the following service business categories: For the three month period ended September 30, ---------------------------------------------- 2001 2000 ----------- ----------- Housekeeping services $43,306,942 $41,678,910 Laundry & linen services 17,866,018 17,103,752 Food Services 10,566,023 5,777,386 Maintenance services & Other 761,380 650,639 ----------- ----------- $72,500,363 $65,210,687 =========== =========== For the nine month period ended September 30, --------------------------------------------- 2001 2000 ------------ ------------ Housekeeping services $125,594,493 $121,223,156 Laundry & linen services 51,599,357 51,309,572 Food Services 28,981,554 14,462,299 Maintenance services & Other 2,218,478 2,193,354 ------------ ------------ $208,393,882 $189,188,381 ============ ============ 8 Note 4 - Earnings Per Common Share
Three Months Ended September 30, 2001 ---------------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------ ----------- Net income $1,836,982 ========== Basic earnings per common share $1,836,982 10,916,889 $ .17 Effect of dilutive securities: Options 207,370 ---------- ---------- --------- Diluted earnings per Common share $1,836,982 11,124,259 $ .17 ========== ========== ========= Three Months Ended September 30, 2000 ---------------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------ ----------- Net income $1,807,835 ========== Basic earnings per common share $1,807,835 10,939,057 $ .17 Effect of dilutive securities: Options ---------- ---------- --------- Diluted earnings per Common share $1,807,835 10,939,057 $ .17 ========== ========== ======== Nine Months Ended September 30, 2001 ---------------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------ ----------- Net income $5,171,233 ========== Basic earnings per common share $5,171,233 10,916,253 $ .47 Effect of dilutive securities: Options 106,749 ---------- ---------- --------- Diluted earnings per Common share $5,171,233 11,023,002 $ .47 ========== ========== ======== Nine Months Ended September 30, 2000 ---------------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------ ----------- Net income $5,063,235 ========== Basic earnings per common share $5,063,235 10,972,092 $ .46 Effect of dilutive securities: Options 24,899 ---------- ---------- --------- Diluted earnings per Common share $5,063,235 10,996,991 $ .46 ========== ========== ========
9 Note 5 - Effect of Recently Issued Accounting Pronouncements Business Combinations and Intangible Assets - Accounting for Goodwill On July 20, 2001 the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS ) 141, Business Combinations, and SFAS 142, Goodwill and Intangible Assets. SFAS 141 is effective for all business combinations completed after June 30, 2001. SFAS 142 is effective for fiscal years beginning after December 15, 2001; however, certain provisions of this Statement apply to goodwill and other intangible assets acquired between July 1, 2001 and the effective date of SFAS 142. Effective January 1, 2002, goodwill and intangible assets with indefinite lives will be tested for impairment annually and whenever there is an impairment. Although it is still reviewing the provisions of these Statements, management's preliminary assessment is that these Statements will not have a material impact on the Company's financial position or results of operations. PART I. ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenues for the third quarter of 2001 increased 11.2% compared to the corresponding 2000 quarter. Revenues for the nine months ended September 30, 2001 increased by 10.2% over the corresponding 2000 nine month period. The increase primarily results from new food service agreements obtained from existing clients, as well as increases in other services provided to new clients. Cost of services provided as a percentage of revenues increased to 88.5% for the third quarter of 2001 from 88.0% in the corresponding 2000 quarter. In addition, cost of services as a percentage of revenue increased to 88.6% for the nine month period ended September 30, 2001 from 88.2% in the same 2000 period. The primary factors affecting specific variations in the 2001 third quarter and nine month period's cost of services provided as a percentage of revenue and their effects on the respective .5% and .4% increases are as follows: in the third quarter an increase of 1.4% in the cost of supplies consumed in providing services which is primarily attributable to increased food costs associated with food service clients; an increase of 1.3% in workers' compensation, general liability and other insurance; offsetting these increases were decreases of 2.0% in labor costs and a .3% in health insurance and employee benefits; in the nine month period an increase of 2.2% in the cost of supplies consumed in providing services which is primarily attributable to increased food costs associated with food service clients; an increase of 1.0% in workers' compensation, general liability and other insurance; and an increase of .4% in bad debt expense; offsetting these increases were decreases of 2.6% in labor costs and .4% in health insurance and employee benefits. 10 Selling, general and administrative expenses as a percentage of revenue decreased in the third quarter of 2001 to 7.7% compared to 7.9% in the corresponding 2000 three month period. Additionally, during the nine month period ended September 30, 2001 selling, general and administrative expenses as a percentage of revenue decreased slightly to 7.7% as compared to 7.8% in the corresponding 2000 period. The three and nine month periods' decreases are primarily attributable to the Company's ability to control certain selling, general and administrative expenses while comparing them to a greater revenue base. Liquidity and Capital Resources At September 30, 2001 the Company had working capital and cash of $79,168,769 and $25,690,195, respectively, representing increases of 7.0% and 12.5%, respectively, compared to December 31, 2000 working capital and cash and cash equivalents of $73,995,109 and $22,841,618. The net cash provided by the Company's operating activities was $4,560,768 for the nine month period ended September 30, 2001 as compared to net cash provided by operating activities of $1,478,768 in the same 2000 period. The principal sources of net cash flows from operating activities for the nine month periods ended September 30, 2001 and 2000 were net income, charges to operations for bad debt provisions and depreciation and amortization. Additionally, operating activities' cash flows were increased by the timing of payments under the Company's various insurance plans of $1,510,739 in the nine month period ended September 30, 2001 and by $1,252,601 in the 2000 nine month period from the timing of payments related to accounts payable and other accrued expenses. The operating activity that used the largest amount of cash during each of the nine month periods ended September 30, 2001 and 2000 were net increases in accounts and notes receivable and long term notes receivable of $3,896,919 in 2001 and $8,094,981 in 2000. The net increases in these amounts resulted primarily from the growth in the Company's revenues, as well as the timing of collections from clients. Additionally, operating activities' cash flows for the nine month period ended September 30, 2001 and 2000 were decreased by the timing of payments for payroll and payroll related taxes of $2,869,973 and $1,208,809, respectively. In addition, the 2001 nine month period operating activities' cash flows were negatively impacted by a $1,073,500 decrease in income taxes resulting from the timing of such payments. 11 The Company's principal use of cash in investing activities in each of the nine month periods ended September 30, 2001 and 2000 was the purchase of personal property and equipment. 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. Additionally, legislation enacted in August 1997 changed Medicare policy in a number of ways, most notably the phasing in, effective July 1, 1998 of a Medicare Prospective Payment System ("PPS") for skilled nursing facilities which significantly changed the manner and amount of reimbursements they receive. The Company's clients have been adversely affected by PPS, as well as other trends in the long-term care industry resulting in certain of the Company's clients filing for voluntary bankruptcy protection. Others may follow. These factors, in addition to delays in payments from clients, has resulted in and could result in significant additional bad debts in the near future. 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 and provide a definitive repayment plan and therefore may ultimately enhance the Company's ability to collect the amounts due. In some instances the Company obtains a security interest in certain of the debtors' assets. Additionally, the Company considers restructuring service agreements from full service to management-only service in the case of certain clients experiencing financial difficulties. The Company believes that the restructuring provides it with a means to maintain a relationship with the client while at the same time minimizing collection exposure. The Company encounters difficulty in collecting amounts due from certain of its clients, including those in bankruptcy, those which have terminated service agreements and slow payers experiencing financial difficulties. In order to provide for these collection problems and the general risk associated with the granting of credit terms, the Company has recorded bad debt provisions of $ 3,350,000 and $2,250,000 in the nine month periods ended September 30, 2001 and 2000, respectively. 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 an $18,000,000 bank line of credit on which it may draw to meet short-term liquidity requirements in excess of internally generated cash flow. This facility expires on September 30, 2002. Amounts drawn under the line are payable on demand. At September 30, 2001, there were no borrowings under the line. However, at such date, 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 the letters of credit issued, the amount available under the line was reduced by approximately $13,000,000 at September 30, 2001. At September 30, 2001, the Company had $25,690,195 of cash and cash equivalents, which it views as its principal measure of liquidity. 12 The level of capital expenditures incurred 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 specific material commitments for capital expenditures through the end of calendar year 2001, it estimates that it will incur capital expenditures of approximately $2,000,000 during this period in connection with housekeeping equipment and laundry and linen equipment installations in its clients' facilities, as well as expenditures relating to internal data processing hardware and software requirements. 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 $825,000 to purchase 135,000 shares of its common stock during the nine month period ended September 30, 2001 at an average price of $6.11 per common share. Pursuant to previous Board of Directors' actions, the Company remains authorized to purchase an additional 786,450 shares. Effect of Recently Issued Accounting Pronouncements Business Combinations and Intangible Assets - Accounting for Goodwill On July 20, 2001 the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS ) 141, Business Combinations, and SFAS 142, Goodwill and Intangible Assets. SFAS 141 is effective for all business combinations completed after June 30, 2001. SFAS 142 is effective for fiscal years beginning after December 15, 2001; however, certain provisions of this Statement apply to goodwill and other intangible assets acquired between July 1, 2001 and the effective date of SFAS 142. Effective January 1, 2002, goodwill and intangible assets with indefinite lives will be tested for impairment annually and whenever there is an impairment. Although it is still reviewing the provisions of these Statements, management's preliminary assessment is that these Statements will not have a material impact on the Company's financial position or results of operations. ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK The Company's exposure to market risk is not significant. 13 Cautionary Statements Regarding Forward Looking Statements Certain matters discussed in this report 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 health care industry, primarily providers of long-term care; credit and collection risks associated with this industry; the effects of changes in regulations governing the industry and risk factors described in the Company's Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2000 in Part I thereof under "Government Regulation of Clients", "Competition" and "Service Agreements/Collections". The Company's clients have been adversely affected by the change in Medicare payments under the 1997 enactment of Prospective Payment System ("PPS"), as well as other trends in the long-term care industry resulting in certain of the Company's clients filing voluntary bankruptcy petitions. Others may follow. These factors, in addition to delays in payments from clients has resulted in and could result in significant additional bad debts in the near future. Additionally, the Company's operating results would be adversely affected if unexpected increases in labor and labor related costs, materials, supplies and equipment used in performing its services could not be passed on to clients. In addition, the Company believes that to improve its financial performance it must continue to obtain service agreements with new clients, provide new services to existing clients, achieve modest price increases on current service agreements with existing clients and maintain internal cost reduction strategies at 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. 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. 14 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) None Item 6. Exhibits and Reports on Form 8-K. a) Exhibits - None b) Reports on Form 8-K - None
15 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. October 29, 2001 /s/ Daniel P. McCartney ---------------- --------------------------------------- Date DANIEL P. McCARTNEY, Chief Executive Officer October 29, 2001 /s/ Thomas A. Cook ---------------- --------------------------------------- Date THOMAS A. COOK, President and Chief Operating Officer October 29, 2001 /s/ James L. DiStefano ---------------- --------------------------------------- Date JAMES L. DiSTEFANO, Chief Financial Officer and Treasurer October 29, 2001 /s/ Richard W. Hudson ---------------- --------------------------------------- Date RICHARD W. HUDSON, Vice President-Finance, Secretary and Chief Accounting Officer 16