-----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, TpDOtnPhQbopBbLPG9dcxLl8cTXS7xq+3MHzhUapX1Lz50IKMNbKv13nyDn0K+ii FETkIlO4MTKwwVsL2WzqPw== 0000950116-04-002169.txt : 20040721 0000950116-04-002169.hdr.sgml : 20040721 20040721085949 ACCESSION NUMBER: 0000950116-04-002169 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040720 ITEM INFORMATION: FILED AS OF DATE: 20040721 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: 04923127 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 eightk.htm 8-K Prepared and filed by St Ives Burrups

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 20, 2004

HEALTHCARE SERVICES GROUP, INC.
(Exact name of registrant as specified in its charter)

Pennsylvania   0-120152   23-2018365
(State or other jurisdiction of Incorporation or organization)   (Commission File Number)   (IRS Employer 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 12.      Results of Operations and Financial Condition.

On July 20, 2004, Healthcare Services Group, Inc. issued a press release announcing its earnings for the three and six month periods ended June 30, 2004, as well as a quarterly dividend declaration. A copy of the press release and 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 12, “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 20, 2004   /s/ Daniel P. McCartney
Date   DANIEL P. McCARTNEY,
    Chief Executive Officer

 

 EX-99 2 ex99-1.txt EXHIBIT 99.1 HEALTHCARE SERVICES GROUP, INC. REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND DIVIDEND INCREASE o SIX MONTH PERIOD NET INCOME UP 32% ON A 19% INCREASE IN REVENUES o QUARTERLY CASH DIVIDEND RAISED 17% OVER PRIOR QUARTER PAYMENT Bensalem, PA - July 20, 2004, Healthcare Services Group, Inc. (NASDAQ-HCSG) reported that revenues for the three months ended June 30, 2004 increased by 19% to $110,489,000 compared to $92,806,000 for the same 2003 period. Net income increased 33% for the three months ended June 30, 2004 to $3,530,000 or $.20 per basic and $.19 per diluted common share, compared to the 2003 second quarter net income of $2,661,000 or $.16 per basic and $.15 per diluted common share. The earnings per common share data has been adjusted to reflect the three-for-two stock split paid in the form of a 50% stock dividend on March 1, 2004. Revenues for the six months ended June 30, 2004 increased by 19% to $217,111,000 compared to $182,337,000 for the same 2003 period. Net income for the six months ended June 30, 2004 increased by 32% to $6,849,000 or $.39 per basic and $.37 per diluted common share compared to the 2003 six month period net income of $5,206,000 or $.31 per basic and $.30 per diluted common share. Our Board of Directors has declared a quarterly dividend of $.07 per common share, payable on August 13, 2004 to shareholders of record at the close of business July 30, 2004. This represents a 17% increase over the dividend declared for the 2004 first quarter and is the fifth consecutive quarterly dividend increase since the Company initiated a quarterly dividend payment on September 29, 2003. Earnings Release July 20, 2004 Page 2 FORWARD LOOKING STATEMENTS/RISK FACTORS Certain matters discussed include 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 21% of 2004 six month period revenues; our claims' experience related to workers' compensation and general liability insurance; the effects of changes in laws and regulations governing the industry and risk factors described in our Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2003 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 the 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 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 Earnings Release July 20, 2004 Page 3 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 our 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 the various operational levels of the Company. Furthermore, we believe 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. 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 HEALTHCARE SERVICES GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, 2004 December 31, 2003 --------------- ----------------- Cash and cash equivalents $ 74,727,000 $ 64,181,000 Accounts receivable, net 54,389,000 58,145,000 Deferred income taxes 1,812,000 2,017,000 Other current assets 14,583,000 13,768,000 -------------- -------------- Total current assets 145,511,000 138,111,000 Property and equipment, net 4,681,000 4,612,000 Notes receivable- long term, net 5,733,000 7,904,000 Deferred compensation funding 3,458,000 2,847,000 Deferred income taxes- long term 3,671,000 3,135,000 Other assets 1,719,000 1,719,000 -------------- -------------- $ 164,773,000 $ 158,328,000 ============== ============== Accrued insurance claims- current $ 3,202,000 $ 2,979,000 Other current liabilities 24,873,000 21,717,000 -------------- -------------- Total current liabilities 28,075,000 24,696,000 Accrued insurance claims- long term 9,607,000 8,937,000 Deferred compensation liability 4,245,000 3,497,000 Stockholders' equity 122,846,000 121,198,000 -------------- -------------- $ 164,773,000 $ 158,328,000 ============== ==============
HEALTHCARE SERVICES GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Six Months Ended June 30, 2004 2003 ------------- ------------- Revenues $ 217,111,000 $ 182,337,000 Operating costs and expenses: Cost of services provided 190,789,000 160,327,000 Selling, general and administrative 15,775,000 13,873,000 Other income: Investment and interest income 500,000 390,000 ------------- ------------- Income before income taxes 11,047,000 8,527,000 Income taxes 4,198,000 3,321,000 ------------- ------------- Net income $ 6,849,000 $ 5,206,000 ============= ============= Basic earnings per common share $ .39 $ .31 ============= ============= Diluted earnings per common share $ .37 $ .30 ============= ============ Cash dividends per common share $ .113 $ -- ============= ============= Basic weighted average number of common shares outstanding 17,483,836 16,912,637 ============= ============= Diluted weighted average number of common shares outstanding 18,452,458 17,544,844 ============= =============
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 March 1, 2004 HEALTHCARE SERVICES GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Three Months Ended June 30, 2004 2003 -------------- ------------- Revenues $ 110,489,000 $ 92,806,000 Operating costs and expenses: Cost of services provided 97,340,000 81,636,000 Selling, general and administrative 7,761,000 7,076,000 Other income: Investment and interest income 306,000 191,000 -------------- ------------- Income before income taxes 5,694,000 4,285,000 Income taxes 2,164,000 1,624,000 -------------- ------------- Net income $ 3,530,000 $ 2,661,000 ============== ============= Basic earnings per common share $ .20 $ .16 ============== ============= Diluted earnings per common share $ .19 $ .15 ============== ============= Cash dividends per common share $ .06 $ -- ============== ============= Basic weighted average number of common shares outstanding 17,483,148 16,956,909 ============== ============= Diluted weighted average number of common shares outstanding 18,467,080 17,577,611 ============== =============
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 March 1, 2004 -----END PRIVACY-ENHANCED MESSAGE-----