-----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, OSMIp5kvaywbdJKEEJyPyvgt8xEZbepwSNxu1onz9uMwZBypj/tYiHk3HRBN4dFr r3kgkm8UOZhDUbn3kE0dBQ== 0000950116-05-002487.txt : 20050720 0000950116-05-002487.hdr.sgml : 20050720 20050720112249 ACCESSION NUMBER: 0000950116-05-002487 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050719 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050720 DATE AS OF CHANGE: 20050720 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12015 FILM NUMBER: 05963157 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 8-K 1 eight-k.txt 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported)...............July 19, 2005 HEALTHCARE SERVICES GROUP, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 0-120152 23-2018365 - -------------------------------- ------------ --------------- (State or other jurisdiction of (Commission (IRS Employer Incorporation or organization) File Number) Identification number) 3220 Tillman Drive-Suite 300, Bensalem, Pennsylvania 19020 ---------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: 215-639-4274 ------------ Item 2.02. Results of Operations and Financial Condition. On July 19, 2005, Healthcare Services Group, Inc. issued a press release announcing its earnings for the three and six month periods ended June 30, 2005, as well as a quarterly cash dividend declaration. A copy of the press release and cash dividend declaration is attached hereto as Exhibit (99) and hereby incorporated by reference. The information in this Current Report is being furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended. 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. July 19, 2005 /s/ Daniel P. McCartney - ------------- -------------------------- Date DANIEL P. McCARTNEY, Chief Executive Officer EX-99 2 ex99-1.txt EXHIBIT 99.1 [LOGO OMITTED] HEALTHCARE SERVICES GROUP, INC. HEALTHCARE SERVICES GROUP, INC. REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2005 SECOND QUARTER CASH DIVIDEND o SECOND QUARTER NET INCOME UP 30% OVER 2004 SECOND QUARTER o SIX MONTH PERIOD NET INCOME UP 29% OVER 2004 SIX MONTH PERIOD o QUARTERLY CASH DIVIDEND RAISED 14% OVER PRIOR QUARTER PAYMENT Bensalem, PA - July 19, 2005, Healthcare Services Group, Inc. (NASDAQ-HCSG) reported that revenues for the three months ended June 30, 2005 increased 5% to $116,048,000 compared to $110,489,000 for the same 2004 period. Net income increased 30% for the three months ended June 30, 2005 to $4,584,000 or $.17 per basic and $.16 per diluted common share, compared to the 2004 second quarter net income of $3,530,000 or $.13 per basic and per diluted common share. The earnings per common share data ( as well as the cash dividend data described below) has been adjusted to reflect the three-for-two stock split paid in the form of a 50% stock dividend on May 2, 2005. Revenues for the six months ended June 30, 2005 increased 6% to $230,743,000 compared to $217,111,000 for the same 2004 period. Net income for the six months ended June 30, 2005 increased by 29% to $8,847,000 or $.33 per basic and $.31 per diluted common share compared to the 2004 six month period net income of $6,849,000 or $.26 per basic and $.25 per diluted common share. Our Board of Directors has declared a quarterly cash dividend of $.08 per common share, payable on August 12, 2005 to shareholders of record at the close of business July 29, 2005. This represents a 14% increase over the dividend declared for the 2005 first quarter and is the ninth consecutive quarterly dividend payment, as well as the eighth consecutive increase since our initiation of quarterly cash dividend payments in 2003. Corporate Office: 3220 Tillman Drive o Glenview Corporate Center o Suite 300 o Bensalem, PA 19020 (215) 639-4274 o (800) 523-2248 o Fax: (215) 639-2152 o http://www.hcsgcorp.com
- -------------------------------------------------------------------------------- [LOGO OMITTED] Earnings Release July 19, 2005 Page 2 FORWARD LOOKING STATEMENTS/RISK FACTORS This report includes forward-looking statements that are subject to risks and uncertainties that could cause actual results or objectives to differ materially from those projected. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such risks and uncertainties include, but are not limited to, risks arising from our providing services exclusively to the health care industry, primarily providers of long-term care; credit and collection risks associated with this industry; one client accounting for approximately 19% of 2005 six month period revenues ( such client's Board of Directors voted to conduct an auction to sell the company, which is anticipated to be completed by year-end); our claims' experience related to workers' compensation and general liability insurance; the effects of changes in, or interpretations of laws and regulations governing the industry, including state and local regulations pertaining to the taxability of our services; and risk factors described in our Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2004 and in Part I thereof under "Government Regulation of Clients", "Competition" and "Service Agreements/Collections". Many of our clients' revenues are highly contingent on Medicare and Medicaid reimbursement funding rates, which have been and continue to be adversely affected by the change in Medicare payments under the 1997 enactment of Medicare Prospective Payment System. That change, and the lack of substantive reimbursement funding rate reform legislation, as well as other trends in the long-term care industry have resulted in certain of our clients filing for bankruptcy protection. Others may follow. Any decisions by the government to discontinue or adversely modify legislation related to reimbursement funding rates will have a material adverse affect on our clients. These factors, in addition to delays in payments from - -------------------------------------------------------------------------------- [LOGO OMITTED] Earnings Release July 19, 2005 Page 3 clients, have resulted in and could continue to result in significant additional bad debts in the near future. Additionally, our operating results would also be adversely affected if unexpected increases in the costs of labor and labor related costs, materials, supplies and equipment used in performing our services could not be passed on to clients. In addition, we believe that to improve our financial performance we must continue to obtain service agreements with new clients, provide new services to existing clients, achieve modest price increases on current service agreements with existing clients and maintain internal cost reduction strategies at our various operational levels. Furthermore, we believe that our ability to sustain the internal development of managerial personnel is an important factor impacting future operating results and successfully executing projected growth strategies. Healthcare Services Group, Inc. is the largest national provider of professional housekeeping, laundry and food services to long-term care and related facilities. Company Contacts: Daniel P. McCartney Thomas Cook Chairman and Chief Executive Officer President and Chief Operating Officer 215-639-4274 215-639-4274 - -------------------------------------------------------------------------------- [LOGO OMITTED] HEALTHCARE SERVICES GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2005 December 31, 2004 ------------- ----------------- Cash and cash equivalents $ 82,533,000 $ 74,847,000 Accounts receivable, net 59,458,000 55,725,000 Deferred income taxes 709,000 574,000 Other current assets 15,532,000 14,125,000 ------------ ------------ Total current assets 158,232,000 145,271,000 Property and equipment, net 4,786,000 4,804,000 Notes receivable- long term, net 3,853,000 5,557,000 Deferred compensation funding 4,838,000 4,062,000 Deferred income taxes- long term 6,167,000 5,563,000 Other assets 1,708,000 1,707,000 ------------ ------------ $179,584,000 $166,964,000 ============ ============ Accrued insurance claims- current $ 4,670,000 $ 4,169,000 Other current liabilities 15,023,000 16,090,000 ------------ ------------ Total current liabilities 19,693,000 20,259,000 Accrued insurance claims- long term 10,896,000 10,227,000 Deferred compensation liability 6,023,000 5,018,000 Stockholders' equity 142,972,000 131,460,000 ------------ ------------ $179,584,000 $166,964,000 ============ ============ - -------------------------------------------------------------------------------- [LOGO OMITTED] HEALTHCARE SERVICES GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended June 30, 2005 2004 ------------ ------------ Revenues $116,048,000 $110,489,000 Operating costs and expenses: Cost of services provided 101,385,000 97,340,000 Selling, general and administrative 8,109,000 7,761,000 Other income: Investment and interest income 839,000 306,000 ------------ ------------ Income before income taxes 7,393,000 5,694,000 Income taxes 2,809,000 2,164,000 ------------ ------------ Net income $ 4,584,000 $ 3,530,000 ============ ============ Basic earnings per common share $ .17 $ .13 ============ ============ Diluted earnings per common share $ .16 $ .13 ============ ============ Cash dividends per common share $ .07 $ .04 ============ ============ Basic weighted average number of common shares outstanding 26,878,000 26,255,000 ============ ============ Diluted weighted average number of common shares outstanding 28,404,000 27,701,000 ============ ============ Common shares and per share data adjusted to reflect the three-for-two stock split paid in the form of a 50% stock dividend on May 2, 2005 - -------------------------------------------------------------------------------- [LOGO OMITTED] HEALTHCARE SERVICES GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Six Months Ended June 30, 2005 2004 ------------ ------------ Revenues $230,743,000 $217,111,000 Operating costs and expenses: Cost of services provided 201,155,000 190,789,000 Selling, general and administrative 16,538,000 15,775,000 Other income: Investment and interest income 1,219,000 500,000 ------------ ------------ Income before income taxes 14,269,000 11,047,000 Income taxes 5,422,000 4,198,000 ------------ ------------ Net income $ 8,847,000 $ 6,849,000 ============ ============ Basic earnings per common share $ .33 $ .26 ============ ============ Diluted earnings per common share $ .31 $ .25 ============ ============ Cash dividends per common share $ .13 $ .07 ============ ============ Basic weighted average number of common shares outstanding 26,750,000 26,226,000 ============ ============ Diluted weighted average number of common shares outstanding 28,221,000 27,679,000 ============ ============ Common shares and per share data adjusted to reflect the three-for-two stock split paid in the form of a 50% stock dividend on May 2, 2005 -----END PRIVACY-ENHANCED MESSAGE-----