In This Story
Healthcare Services Group, Inc. has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports that Healthcare Services Group, Inc. provides management, administrative, and operational services to housekeeping, laundry, linen, facility maintenance, and dietary departments in healthcare facilities across the United States.
For the year ended December 31, 2024, the company reported consolidated revenues of $1.7 billion, an increase of 2.7% from the previous year. The increase was driven by a 5.0% rise in Dietary segment revenues, while Housekeeping segment revenues saw a slight decline of 0.2%.
The company's costs of services provided increased by 2.1% to $1.5 billion, with costs of labor and supplies being significant factors. The cost of labor represented 78.4% of Housekeeping revenues and 56.6% of Dietary revenues.
Healthcare Services Group, Inc. reported a net income of $39.5 million for 2024, up from $38.4 million in the previous year. The effective tax rate for the year was 25.4%, compared to 27.7% in 2023.
The company continues to focus on managing labor costs and supply expenses to maintain profitability. It also highlights its dependence on government reimbursement programs like Medicare and Medicaid, which affect its customers' cash flows.
The filing notes that the company has a $300 million line of credit, with no borrowings under the line as of December 31, 2024. The company also repurchased 0.4 million shares of its common stock during the year.
Healthcare Services Group, Inc. identified a material weakness in its internal controls over financial reporting in 2023, which has since been remediated. The company continues to evaluate its internal controls to ensure compliance with applicable laws and regulations.
The filing also discusses various risks, including those related to macroeconomic conditions, customer concentration, and regulatory changes, which could impact the company's financial performance.
Healthcare Services Group, Inc. does not anticipate cash dividend payments to common stockholders in the near future, as it focuses on maintaining financial flexibility and investing in growth opportunities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Healthcare Services Group Inc. annual 10-K report dated February 14, 2025. To report an error, please email earnings@qz.com.