Healthcare Services Group Inc. (HCSG, Financial) filed Quarterly Report for the period ended 2009-09-30.
Healthcare Services Group Inc. provides housekeeping laundry linen facility maintenance and food services to the health care industry including nursing homes retirement complexes rehabilitation centers and hospitals. Healthcare Services Group Inc. has a market cap of $786.64 million; its shares were traded at around $18.75 with a P/E ratio of 27.42 and P/S ratio of 1.31. The dividend yield of Healthcare Services Group Inc. stocks is 4.2%. Healthcare Services Group Inc. had an annual average earning growth of 25.7% over the past 5 years.
Consolidated revenues increased 16.9% to $178,829,000 in the 2009 third quarter compared to $152,978,000 in the 2008 third quarter as a result of the factors discussed below under Reportable Segments.
Selling, general and administrative expenses (SG&A) increased in the 2009 third quarter to 6.7%, as a percentage of consolidated revenues, compared to 6.3% in the 2008 third quarter. The increase is primarily attributable to recognizing a net $1,654,000 increase change in compensation expense as a result of the increase in market value of the investments held in our Deferred Compensation Fund (in 2008 third quarter a $721,000 reduction in such expense was recorded). As further described below in Consolidated Investment and Interest Income, such expense was offset by the recording of a similar amount of income in that reporting caption. Excluding the Deferred Compensation Fund investment impact in both three month periods, SG&A, as percentage of consolidated revenues, would have decreased .6% in comparing the periods. Such decrease is primarily a result of our ability to control these expenses and comparing them to a greater revenue base in the current period.
Investment and interest income, as a percentage of consolidated revenues, increased to $1,709,000 or 1.0% as a percentage of 2009 third quarter consolidated revenues compared to a loss of $157,000 or negative .1% in the 2008 third quarter. The net increase is primarily attributable to increase in market value of the investments held in our Deferred Compensation Fund. Additionally, 2009 third quarter consolidated investment and interest income was favorably impacted by increased returns on our marketable securities as compared to 2008 third quarter returns.
Consolidated revenues increased 13.8% to $510,134,000 in the nine month period ended September 30, 2009 compared to $448,155,000 in the same 2008 period as a result of the factors discussed below under Reportable Segments.
compared to 6.8% in the 2008 nine month period. The increase is primarily attributable to the affect of recognizing a net $2,667,000 increase change in compensation expense as a result of the increase in market value of the investments held in our Deferred Compensation Fund ( in 2008 a $1,212,000 reduction is such expense was recorded). As further described below in Consolidated Investment and Interest Income, such expense was offset by the recording of a similar amount of income in that reporting caption. Excluding the Deferred Compensation Fund investment impact in both nine month periods, SG&A would decrease .2% in comparing the periods. Such decrease is primarily a result of our ability to control these expenses and comparing them to a greater revenue base in the current period.
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Healthcare Services Group Inc. provides housekeeping laundry linen facility maintenance and food services to the health care industry including nursing homes retirement complexes rehabilitation centers and hospitals. Healthcare Services Group Inc. has a market cap of $786.64 million; its shares were traded at around $18.75 with a P/E ratio of 27.42 and P/S ratio of 1.31. The dividend yield of Healthcare Services Group Inc. stocks is 4.2%. Healthcare Services Group Inc. had an annual average earning growth of 25.7% over the past 5 years.
Highlight of Business Operations:
On April 30, 2009, we executed an Asset Purchase Agreement to acquire essentially all of the assets of Contract Environmental Services, Inc. (CES), a South Carolina based corporation which is a provider of professional housekeeping, laundry and food services to long-term care and related facilities. We believe the acquisition of CES expands and compliments our position of being the largest provider of such services to long-term care and related facilities in the United States. The aggregate consideration, subject to future revision, was approximately $16,279,000 consisting of approximately: (i) $4,613,000 in cash, (ii) a current issuance of approximately 66,000 shares of our common stock (valued at approximately $1,183,000) and a future issuance of approximately 265,000 shares (valued at approximately $3,311,000) contingent upon the achievement of certain financial targets, and (iii) the repayment of approximately $4,718,000 of certain debt obligations of CES. Additionally, pursuant to the transaction we assumed approximately $2,454,000 of certain other liabilities of the seller. The allocation of such consideration has resulted in our recording in the accompanying September 30, 2009 consolidated balance sheet of the following assets; (i) approximately $8,845,000 consisting primarily of accounts receivable, (ii) $5,400,000 of amortizable intangible assets, and (iii) $2,034,000 of goodwill.Consolidated revenues increased 16.9% to $178,829,000 in the 2009 third quarter compared to $152,978,000 in the 2008 third quarter as a result of the factors discussed below under Reportable Segments.
Selling, general and administrative expenses (SG&A) increased in the 2009 third quarter to 6.7%, as a percentage of consolidated revenues, compared to 6.3% in the 2008 third quarter. The increase is primarily attributable to recognizing a net $1,654,000 increase change in compensation expense as a result of the increase in market value of the investments held in our Deferred Compensation Fund (in 2008 third quarter a $721,000 reduction in such expense was recorded). As further described below in Consolidated Investment and Interest Income, such expense was offset by the recording of a similar amount of income in that reporting caption. Excluding the Deferred Compensation Fund investment impact in both three month periods, SG&A, as percentage of consolidated revenues, would have decreased .6% in comparing the periods. Such decrease is primarily a result of our ability to control these expenses and comparing them to a greater revenue base in the current period.
Investment and interest income, as a percentage of consolidated revenues, increased to $1,709,000 or 1.0% as a percentage of 2009 third quarter consolidated revenues compared to a loss of $157,000 or negative .1% in the 2008 third quarter. The net increase is primarily attributable to increase in market value of the investments held in our Deferred Compensation Fund. Additionally, 2009 third quarter consolidated investment and interest income was favorably impacted by increased returns on our marketable securities as compared to 2008 third quarter returns.
Consolidated revenues increased 13.8% to $510,134,000 in the nine month period ended September 30, 2009 compared to $448,155,000 in the same 2008 period as a result of the factors discussed below under Reportable Segments.
compared to 6.8% in the 2008 nine month period. The increase is primarily attributable to the affect of recognizing a net $2,667,000 increase change in compensation expense as a result of the increase in market value of the investments held in our Deferred Compensation Fund ( in 2008 a $1,212,000 reduction is such expense was recorded). As further described below in Consolidated Investment and Interest Income, such expense was offset by the recording of a similar amount of income in that reporting caption. Excluding the Deferred Compensation Fund investment impact in both nine month periods, SG&A would decrease .2% in comparing the periods. Such decrease is primarily a result of our ability to control these expenses and comparing them to a greater revenue base in the current period.
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