UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(MARK ONE)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2006
OR
TRANSISTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number 0-120152
HEALTHCARE SERVICES GROUP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania (State or other jurisdiction of incorporation or organization) | 23-2018365 (IRS Employer Identification number) |
3220 Tillman Drive-Suite 300, Bensalem, Pennsylvania (Address of principal executive office) | 19020 (Zip code) |
Registrant’s telephone number, including area code: 215-639-4274
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such returns), and (2) has been subject to such filing requirements for the past 90 days.
Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” as defined in Rule 12b-2 of the Exchange Act.
Large accelerated filer | Accelerated filer | Non-accelerated filer |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common Stock, $.01 Par Value: 27,452,000 shares outstanding as of October 25, 2006.
PAGE NO. | ||||
PART I. | FINANCIAL INFORMATION | |||
Item 1. | Financial Statements (Unaudited) | |||
Part II. | Other Information | |||
(Unaudited) September 30, 2006 | December 31, 2005 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 76,399,000 | $ | 91,005,000 | |||
Accounts and notes receivable, less allowance for doubtful | |||||||
accounts of $3,403,000 in 2006 and $2,275,000 in 2005 | 77,274,000 | 59,197,000 | |||||
Inventories and supplies | 12,421,000 | 11,729,000 | |||||
Deferred income taxes | 818,000 | 355,000 | |||||
Prepaid expenses and other | 4,026,000 | 3,330,000 | |||||
Total current assets | 170,938,000 | 165,616,000 | |||||
PROPERTY AND EQUIPMENT: | |||||||
Laundry and linen equipment installations | 1,785,000 | 2,416,000 | |||||
Housekeeping and office equipment | 17,834,000 | 15,141,000 | |||||
Autos and trucks | 79,000 | 79,000 | |||||
19,698,000 | 17,636,000 | ||||||
Less accumulated depreciation | 14,643,000 | 12,892,000 | |||||
5,055,000 | 4,744,000 | ||||||
GOODWILL AND OTHER INTANGIBLE ASSETS- Less accumulated amortization of $1,743,000 in 2006 and 2005 | 19,341,000 | 1,612,000 | |||||
NOTES RECEIVABLE- long term portion, net of discount | 4,856,000 | 4,555,000 | |||||
DEFERRED COMPENSATION FUNDING | 6,704,000 | 5,626,000 | |||||
DEFERRED INCOME TAXES- long term portion | 7,166,000 | 6,181,000 | |||||
OTHER NONCURRENT ASSETS | 104,000 | 96,000 | |||||
TOTAL ASSETS | $ | 214,164,000 | $ | 188,430,000 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 10,304,000 | $ | 8,760,000 | |||
Accrued payroll, accrued and withheld payroll taxes | 15,282,000 | 7,792,000 | |||||
Other accrued expenses | 1,799,000 | 657,000 | |||||
Income taxes payable | 276,000 | 1,467,000 | |||||
Accrued insurance claims | 4,809,000 | 4,405,000 | |||||
Total current liabilities | 32,470,000 | 23,081,000 | |||||
ACCRUED INSURANCE CLAIMS- long term portion | 11,220,000 | 10,277,000 | |||||
DEFERRED COMPENSATION LIABILITY | 8,604,000 | 6,909,000 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS' EQUITY: | |||||||
Common stock, $.01 par value: 30,000,000 shares authorized, | |||||||
28,931,000 shares issued in 2006 and 28,677,000 in 2005 | 289,000 | 287,000 | |||||
Additional paid in capital | 57,561,000 | 48,603,000 | |||||
Retained earnings | 121,818,000 | 112,299,000 | |||||
Common stock in treasury, at cost, 1,515,000 shares in 2006 and | |||||||
1,616,000 in 2005 | (17,798,000 | ) | (13,026,000 | ) | |||
Total stockholders’ equity | 161,870,000 | 148,163,000 | |||||
TOTAL LIABILITITIES AND STOCKHOLDERS’ EQUITY | $ | 214,164,000 | $ | 188,430,000 | |||
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For the Three Months Ended Sept 30, | |||||||
2006 | 2005 | ||||||
Revenues | $ | 130,083,000 | $ | 117,684,000 | |||
Operating costs and expenses: | |||||||
Costs of services provided | 112,195,000 | 102,884,000 | |||||
Selling, general and administrative | 8,767,000 | 8,024,000 | |||||
Other Income : | |||||||
Investment and interest income | 1,298,000 | 923,000 | |||||
Income before income taxes | 10,419,000 | 7,699,000 | |||||
Income taxes | 3,855,000 | 2,925,000 | |||||
Net Income | $ | 6,564,000 | $ | 4,774,000 | |||
Basic earnings per common share | $ | 0.24 | $ | 0.18 | |||
Diluted earnings per common share | $ | 0.23 | $ | 0.17 | |||
Cash dividends per common share | $ | 0.12 | $ | 0.08 | |||
Basic weighted average number of common shares outstanding | 27,460,000 | 27,079,000 | |||||
Diluted weighted average number of common shares outstanding | 28,760,000 | 28,414,000 | |||||
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For the Nine Months Ended September 30, | |||||||
2006 | 2005 | ||||||
Revenues | $ | 371,841,000 | $ | 348,426,000 | |||
Operating costs and expenses: | |||||||
Costs of services provided | 320,220,000 | 304,039,000 | |||||
Selling, general and administrative | 25,781,000 | 24,562,000 | |||||
Other Income : | |||||||
Investment and interest income | 3,617,000 | 2,142,000 | |||||
Income before income taxes | 29,457,000 | 21,967,000 | |||||
Income taxes | 10,900,000 | 8,347,000 | |||||
Net Income | $ | 18,557,000 | $ | 13,620,000 | |||
Basic earnings per common share | $ | 0.68 | $ | 0.51 | |||
Diluted earnings per common share | $ | 0.65 | $ | 0.48 | |||
Cash dividends per common share | $ | 0.33 | $ | 0.21 | |||
Basic weighted average number of common shares outstanding | 27,399,000 | 26,861,000 | |||||
Diluted weighted average number of common shares outstanding | 28,691,000 | 28,286,000 | |||||
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September 30, | |||||||
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net Income | $ | 18,557,000 | $ | 13,620,000 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 1,408,000 | 1,400,000 | |||||
Bad debt provision | 725,000 | 875,000 | |||||
Deferred income taxes benefits | (1,246,000 | ) | (616,000 | ) | |||
Unrealized gain on deferred compensation fund investments | (544,000 | ) | (469,000 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts and notes receivable | (8,714,000 | ) | (4,465,000 | ) | |||
Inventories and supplies | (622,000 | ) | (442,000 | ) | |||
Notes receivable- long term portion | (301,000 | ) | 1,472,000 | ||||
Deferred compensation funding | (534,000 | ) | (593,000 | ) | |||
Accounts payable and other accrued expenses | (755,000 | ) | 1,263,000 | ||||
Accrued payroll, accrued and withheld payroll taxes | 7,048,000 | 7,203,000 | |||||
Accrued insurance claims | 953,000 | 561,000 | |||||
Deferred compensation liability | 1,694,000 | 1,358,000 | |||||
Income taxes payable | (894,000 | ) | 136,000 | ||||
Prepaid expenses and other assets | (109,000 | ) | (582,000 | ) | |||
Net cash provided by operating activities | 16,666,000 | 20,721,000 | |||||
Cash flows from investing activities: | |||||||
Disposals of fixed assets | 122,000 | 40,000 | |||||
Cash paid for acquisition | (9,678,000 | ) | — | ||||
Additions to property and equipment | (1,458,000 | ) | (1,455,000 | ) | |||
Net cash used in investing activities | (11,014,000 | ) | (1,415,000 | ) | |||
Cash flows from financing activities: | |||||||
Treasury stock transactions in benefit plans | (164,000 | ) | (174,000 | ) | |||
Dividends paid | (9,038,000 | ) | (5,641,000 | ) | |||
Acquisition of treasury stock | (8,227,000 | ) | (3,857,000 | ) | |||
Repayments of debt assumed in acquisition | (6,163,000 | ) | — | ||||
Reissuance of treasury stock pursuant to Dividend | |||||||
Reinvestment Plan | 31,000 | 24,000 | |||||
Proceeds from the exercise of stock options | 2,296,000 | 4,278,000 | |||||
Tax benefit of stock option transactions | 1,007,000 | 2,920,000 | |||||
Net cash used in financing activities | (20,258,000 | ) | (2,450,000 | ) | |||
Net increase (decrease) in cash and cash equivalents | (14,606,000 | ) | 16,856,000 | ||||
Cash and cash equivalents at beginning of the period | 91,005,000 | 74,847,000 | |||||
Cash and cash equivalents at end of the period | $ | 76,399,000 | $ | 91,703,000 | |||
Supplementary Cash Flow Information: | |||||||
Income taxes cash payments, net of refunds | $ | 11,966,000 | $ | 4,908,000 | |||
Issuance of 369,000 shares of Common Stock related to acquisition | $ | 8,517,000 | $ | — | |||
Issuance of 64,000 shares of Common Stock in 2006 and 90,000 shares of Common Stock in 2005 pursuant to Employee Stock Plans | $ | 728,000 | $ | 643,000 | |||
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For the Nine Months Ended September 30, 2006 | |||||||||||||||||||
Common Stock | Additional Paid-in | Retained | Treasury | Stockholders' | |||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Equity | ||||||||||||||
Balance, December 31, 2005 | 28,677,000 | $ | 287,000 | $ | 48,603,000 | $ | 112,299,000 | ($13,026,000 | ) | $ | 148,163,000 | ||||||||
Net income for the period | 18,557,000 | 18,557,000 | |||||||||||||||||
Exercise of stock options and other share-based compensation, net of 3,000 shares tendered for payment | 254,000 | 2,000 | 2,294,000 | 2,296,000 | |||||||||||||||
Tax benefit arising from stock option transactions | 1,007,000 | 1,007,000 | |||||||||||||||||
Acquisition of treasury stock (335,000 shares) | (8,227,000 | ) | (8,227,000 | ) | |||||||||||||||
Shares issued pursuant to acquisition (369,000 shares) | 5,430,000 | 3,087,000 | 8,517,000 | ||||||||||||||||
Shares purchased and shares sold in employee Deferred | |||||||||||||||||||
Compensation Plan and other benefit plans (2,000 shares) | (164,000 | ) | (164,000 | ) | |||||||||||||||
Shares issued pursuant to Employee Stock Plans (64,000 shares) | 209,000 | 519,000 | 728,000 | ||||||||||||||||
Cash dividends - $.33 per common share | (9,038,000 | ) | (9,038,000 | ) | |||||||||||||||
Shares issued pursuant to Dividend Reinvestment Plan (2,000 shares) | 18,000 | 13,000 | 31,000 | ||||||||||||||||
Balance, September 30, 2006 | 28,931,000 | $ | 289,000 | $ | 57,561,000 | $ | 121,818,000 | ($17,798,000 | ) | $ | 161,870,000 | ||||||||
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Accounts and notes receivable, net | $ | 10,441,000 | ||
Other assets | 742,000 | |||
Fixed assets and inventory | 452,000 | |||
Goodwill and Other Intangible Assets | 17,728,000 | |||
Total assets acquired | 29,363,000 | |||
Accounts payable, accrued expenses and other liabilities | ( 3,776,000 | ) | ||
Loans payable | ( 7,393,000 | ) | ||
Total purchase price | $ | 18,194,000 | ||
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Housekeeping services | Food services | Corporate and eliminations | Total | ||||||||||
Quarter Ended Sept 30, 2006 | |||||||||||||
Revenues | $ | 105,053,000 | $ | 26,403,000 | $ | ( 1,373,000 | ) | $ | 130,083,000 | ||||
Income before income taxes | $ | 9,282,000 | $ | 795,000 | $ | 342,000 | (1) | $ | 10,419,000 | ||||
Quarter Ended Sept 30, 2005 | |||||||||||||
Revenues | $ | 95,155,000 | $ | 23,772,000 | $ | ( 1,243,000 | ) | $ | 117,684,000 | ||||
Income before income taxes | $ | 7,738,000 | $ | 477,000 | $ | ( 516,000 | )(1) | $ | 7,699,000 | ||||
Nine Months Ended Sept 30, 2006 | |||||||||||||
Revenues | $ | 298,203,000 | $ | 74,115,000 | $ | ( 477,000 | ) | $ | 371,841,000 | ||||
Income before income taxes | $ | 28,133,000 | $ | 2,411,000 | $ | ( 1,087,000 | )(1) | $ | 29,457,000 | ||||
Nine Months Ended Sept 30, 2005 | |||||||||||||
Revenues | $ | 279,519,000 | $ | 69,310,000 | $ | ( 403,000 | ) | $ | 348,426,000 | ||||
Income before income taxes | $ | 24,171,000 | $ | 1,907,000 | $ | ( 4,111,000 | )(1) | $ | 21,967,000 |
(1) | represents primarily corporate office cost and related overhead, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments. |
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For the Quarter Ended Sept 30, | |||||||
2006 | 2005 | ||||||
Housekeeping services | $ | 74,352,000 | $ | 66,291,000 | |||
Laundry and linen services | 29,382,000 | 27,588,000 | |||||
Food Services | 25,727,000 | 23,245,000 | |||||
Maintenance services and Other | 622,000 | 560,000 | |||||
$ | 130,083,000 | $ | 117,684,000 | ||||
For the Nine Months Ended Sept 30, | |||||||
2006 | 2005 | ||||||
Housekeeping services | $ | 210,699,000 | $ | 196,235,000 | |||
Laundry and linen services | 86,353,000 | 82,047,000 | |||||
Food Services | 72,937,000 | 68,312,000 | |||||
Maintenance services and Other | 1,852,000 | 1,832,000 | |||||
$ | 371,841,000 | $ | 348,426,000 | ||||
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Quarter Ended Sept 30, 2006 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per-share Amount | ||||||||
Net income | $ | 6,564,000 | ||||||||
Basic earnings per common share | $ | 6,564,000 | 27,460,000 | $ | .24 | |||||
Effect of dilutive securities: | ||||||||||
Options | 1,300,000 | (.01 | ) | |||||||
Diluted earnings per common share | $ | 6,564,000 | 28,760,000 | $ | .23 | |||||
Quarter Ended Sept 30, 2005 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per-share Amount | ||||||||
Net income | $ | 4,774,000 | ||||||||
Basic earnings per common share | $ | 4,774,000 | 27,079,000 | $ | .18 | |||||
Effect of dilutive securities: | ||||||||||
Options | 1,335,000 | (.01 | ) | |||||||
Diluted earnings per common share | $ | 4,774,000 | 28,414,000 | $ | .17 | |||||
Nine Months Ended Sept 30, 2006 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per-share Amount | ||||||||
Net income | $ | 18,557,000 | ||||||||
Basic earnings per common share | $ | 18,557,000 | 27,399,000 | $ | .68 | |||||
Effect of dilutive securities: | ||||||||||
Options | 1,292,000 | (.03 | ) | |||||||
Diluted earnings per common share | $ | 18,557,000 | 28,691,000 | $ | .65 | |||||
Nine Months Ended Sept 30, 2005 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per-share Amount | ||||||||
Net income | $ | 13,620,000 | ||||||||
Basic earnings per common share | $ | 13,620,000 | 26,861,000 | $ | .51 | |||||
Effect of dilutive securities: | ||||||||||
Options | 1,425,000 | (.03 | ) | |||||||
Diluted earnings per common share | $ | 13,620,000 | 28,286,000 | $ | .48 | |||||
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1st Quarter | 2nd Quarter | 3rd Quarter | ||||||||
Cash dividend per common share | $ | .10 | $ | .11 | $ | .12 | ||||
Total cash dividends paid | $ | 2,730,000 | $ | 3,015,000 | $ | 3,293,000 | ||||
Record date | February 3 | April 28 | July 28 | |||||||
Payment date | February 13 | May 10 | August 11 |
Weighted Average Price | Number of Shares | Weighted Average Remaining Contractual Life ( In Years) | Aggregate Intrinsic Value | ||||||||||
Outstanding, January 1, 2006 | $ | 8.91 | 2,843,000 | ||||||||||
Granted | — | — | |||||||||||
Cancelled | 11.35 | ( 29,000 | ) | ||||||||||
Exercised | 9.03 | ( 257,000 | ) | ||||||||||
Outstanding, Sept 30, 2006 | $ | 8.87 | 2,557,000 | 5.52 | $ | 41,660,000 | |||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Exercise Price Range | Number Outstanding | Average Remaining Contractual Life | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||
$ 2.25 - 3.75 | 512,000 | 3.11 | $ | 3.08 | 512,000 | $ | 3.08 | |||||||||
$ 4.11 - 5.62 | 822,000 | 5.45 | 4.67 | 822,000 | 4.67 | |||||||||||
$ 8.29 - 8.29 | 427,000 | 7.24 | 8.29 | 427,000 | 8.29 | |||||||||||
$13.65 - 13.65 | 391,000 | 8.24 | 13.65 | 391,000 | 13.65 | |||||||||||
$20.71 - 20.71 | 405,000 | 4.25 | 20.71 | 405,000 | 20.71 | |||||||||||
2,557,000 | 5.52 | $ | 8.87 | 2,557,000 | $ | 8.87 | ||||||||||
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September 30, 2006 | September 30, 2005 | ||||||
Weighted average grant-date fair value of stock options granted: | Not applicable | Not applicable | |||||
Total pre-tax fair value of stock options vested: | Not applicable | $ | 2,294,000 | ||||
Total pre-tax intrinsic value of stock options exercised: | $ | 2,924,000 | $ | 8,377,000 |
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Risk-free interest rate | 4.6 | % | ||
Expected volatility | 34.5 | % | ||
Weighted average expected life (in years) | .25 | |||
Dividend yield | 2.0 | % |
Quarter Ended Sept 30, 2005 | Nine Months Ended Sept 30, 2005 | ||||||
Net Income | |||||||
As reported | $ | 4,774,000 | $ | 13,620,000 | |||
Deduct: Total share-based employee compensation expense determined under fair value based method for all awards, net of related tax effects: | |||||||
Stock Option Plans | (1,699,000 | ) | |||||
ESPP | (151,000 | )(1) | (453,000 | ) (1) | |||
Pro forma net income | $ | 4,623,000 | $ | 11,468,000 | |||
Basic Earnings Per Common Share | |||||||
As reported | $ | .18 | $ | .51 | |||
Pro forma | $ | .17 | $ | .43 | |||
Diluted Earnings Per Common Share | |||||||
As reported | $ | .17 | $ | .48 | |||
Pro forma | $ | .16 | $ | .41 |
(1) | Represents actual 2005 share-based compensation applicable to the ESPP allocated to the three and nine month periods ended September 30, 2005, respectively. |
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Relation to Consolidated Revenues | |||||||||||||
For the Quarter Ended Sept 30, | For the Nine Months Ended Sept 30, | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
Operating costs and expenses: | |||||||||||||
Costs of services provided | 86.3 | 87.4 | 86.1 | 87.3 | |||||||||
Selling, general and | |||||||||||||
administration | 6.7 | 6.8 | 6.9 | 7.0 | |||||||||
Investment and interest income | 1.0 | .8 | .9 | .6 | |||||||||
Income before income taxes | 8.0 | 6.6 | 7.9 | 6.3 | |||||||||
Income taxes | 3.0 | 2.5 | 2.9 | 2.4 | |||||||||
Net income | 5.0 | % | 4.1 | % | 5.0 | % | 3.9 | % | |||||
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Reportable Segments | ||||||||||||||||||||||
Housekeeping | Food | |||||||||||||||||||||
Consolidated | Percent increase | Corporate and eliminations | Amount | %incr | Amount | %incr | ||||||||||||||||
Revenues | $ | 130,083,000 | 10.5 | % | $ | (1,373,000 | ) | $ | 105,053,000 | 10.4 | % | $ | 26,403,000 | 11.1 | % | |||||||
Cost of services provided | 112,195,000 | 9.0 | 9,184,000 | 95,771,000 | 9.6 | 25,608,000 | 9.9 | |||||||||||||||
Selling, general and administrative expense | 8,767,000 | 9.3 | (8,767,000 | ) | — | — | ||||||||||||||||
Investment and interest Income | 1,298,000 | 40.6 | 1,298,000 | — | — | |||||||||||||||||
Income before income taxes | $ | 10,419,000 | 35.3 | % | $ | 342,000 | $ | 9,282,000 | 20.0 | % | $ | 795,000 | 66.5 | % |
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Cost of Services Provided-Key Indicators | 2006 % | 2005 % | (Decr) % | |||||||
Bad debt provision | .1 | .2 | (.1 | ) | ||||||
Workers’ compensation and general liability insurance | 3.4 | 3.6 | (.2 | ) |
Cost of Services Provided-Key Indicators | 2006 % | 2005 % | (Decr) % | |||||||
Housekeeping labor and other labor costs | 81.6 | 82.9 | (1.3 | ) | ||||||
Housekeeping supplies | 5.6 | 5.7 | (.1 | ) | ||||||
Food labor and other labor costs | 54.7 | 55.7 | (1.0 | ) | ||||||
Food supplies | 37.4 | 37.5 | (.1 | ) |
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Reportable Segments | ||||||||||||||||||||||
Housekeeping | Food | |||||||||||||||||||||
Consolidated | Percent increase | Corporate and eliminations | Amount | %incr | Amount | %incr | ||||||||||||||||
Revenues | $ | 371,841,000 | 6.7 | % | $ | (477,000 | ) | $ | 298,203,000 | 6.7 | % | $ | 74,115,000 | 6.9 | % | |||||||
Cost of services provided | 320,220,000 | 5.3 | 21,554,000 | 270,070,000 | 5.8 | 71,704,000 | 6.4 | |||||||||||||||
Selling, general and administrative expense | 25,781,000 | 5.0 | ( 25,781,000 | ) | — | — | ||||||||||||||||
Investment and interest Income | 3,617,000 | 68.9 | 3,617,000 | — | — | |||||||||||||||||
Income before income taxes | $ | 29,457,000 | 34.1 | % | $ | (1,087,000 | ) | $ | 28,133,000 | 16.4 | % | $ | 2,411,000 | 26.5 | % |
Cost of Services Provided-Key Indicators | 2006 % | 2005 % | (Decr) % | |||||||
Bad debt provision | .2 | .3 | (.1 | ) | ||||||
Workers’ compensation and general | ||||||||||
liability insurance | 3.7 | 4.1 | (.4 | ) |
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Cost of Services Provided-Key Indicators | 2006 % | 2005 % | Incr (Decr) % | |||||||
Housekeeping labor and other labor costs | 81.4 | 82.3 | ( .9 | ) | ||||||
Housekeeping supplies | 5.5 | 5.3 | .2 | |||||||
Food labor and other labor costs | 54.5 | 55.0 | ( .5 | ) | ||||||
Food supplies | 37.4 | 38.9 | (1.5 | ) |
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1st Quarter | 2nd Quarter | 3rd Quarter | ||||||||
Cash dividend per common share | $ | .10 | $ | .11 | $ | .12 | ||||
Total cash dividends paid | $ | 2,730,000 | $ | 3,015,000 | $ | 3,293,000 | ||||
Record date | February 3 | April 28 | July 28 | |||||||
Payment date | February 13 | May 10 | August 11 |
Covenant Description and Requirement | Status at September 30, 2006 | |
Commitment coverage ratio: cash and cash equivalents must equal or exceed outstanding obligations under the line by a multiple of 2. | Commitment coverage is 3.1 | |
Tangible net worth: must exceed $122,000,000. | Tangible net worth is $142,106,000 |
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2006 Period | (a) Total number ofShares purchased | (b) Average pricepaid per share | (c) Total number ofshares purchased as part of publicly announced plans or programs | (d) Maximumnumber of shares that may yet be purchased under the plans or programs | |||||||||
July 1 to July 31 | none | ||||||||||||
Aug 1 to Aug 31 | none | ||||||||||||
Sept 1 to Sept 30 | 301,218 | $ | 25.28 | 301,218 | 946,456 |
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HEALTHCARE SERVICES GROUP, INC. | |||
October 25, 2006 | /s/ Daniel P. McCartney | ||
Date | DANIEL P. McCARTNEY, Chief Executive Officer |
October 25, 2006 | /s/ Thomas A. Cook | ||
Date | THOMAS A. COOK, President and Chief Operating Officer |
October 25, 2006 | /s/ James L. DiStefano | ||
Date | JAMES L. DiSTEFANO, Chief Financial Officer and Treasurer |
October 25, 2006 | /s/ Richard W. Hudson | ||
Date | RICHARD W. HUDSON, Vice President-Finance, Secretary and Chief Accounting Officer |
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