Healthcare Services (HCSG) 23 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Theodore Wahl	executive
Matthew McKee	executive
Sean Dodge	analyst
Andrew J. Wittmann	analyst
William Sutherland	analyst
Jack Senft	analyst
Albert Rice	analyst

Call transcript

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Operator

Thank you for standing-by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the HCSG 2024 Third Quarter Conference Call. The matters discussed on today's conference call include forward-looking statements about the business prospects of Healthcare Services Group, Inc.

For Healthcare Services Group, Inc.'s most recent forward-looking statement notice, please refer to the press release issued this morning, which can be found on our website, www.hcsg.com. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties and important factors, including those discussed in the risk factors, MD&A and other sections of the annual report on Form 10-K and Healthcare Services Group, Inc.'s other SEC filings and as indicated in our most recent forward-looking statement.

discussing financial be will management certain measures. non-GAAP Additionally, to reconciliation of items these A U.S. found press this can in GAAP be morning's release. [Operator Instructions] I to over the turn would now Ted like Wahl. to conference

You may conference. begin your

Theodore Wahl

on paying Executing X results, good third released and year-over-year our very the into quarter I in and and Thank filing the McKee the earnings plan morning week. of which quarter pleased growth, third everyone. the our us We joining strategic sequential We're cash XX-Q revenue, positive carrying driving quarter. underscore priorities we're results and optimizing momentum fourth by collections you, off, and our managing today. appreciate costs flow. morning, and you in our is on this with growth clearly Matt of end resulting

fiscal year the positive became and pre-pandemic at under which CMS's XX.X%, XXXX, million which ended availability like continued occupancy, sits of state Medicare to which per trend from For by includes now net continued expectations; the million levels. low increase latest developments. continue operations reported the adding a and for we XX, September fundamentals adjusted X.X% just the over in million, XXXX, perspective the line share of Industry and environment, XXXX, rising X reimbursement the October and since industry trends $XX $XX beginning $XXX.X XXs the of with reported in to industry level. and months of $X.XX diluted EPS A stable with positively, workforce in income XXX,XXX jobs cash on our now and and at flow well Xst increase share; effective trends reimbursement revenue as as $X.X rates million. I'd highlighted

final On legislation potential pending especially phase-in change. front, or believe not during significant undergo continue and or revision the the CMS's for period litigation staffing implemented, given the that the extended we will minimum rule will either to regulatory be administration

head we into of the the strategic months year, final our unchanged. As priorities remain

focus fundamentals to these maximize supported enhance our are XXXX business profitability on priorities, enable our us that through flow strong beyond. by We and cash confident further accelerate and growth, will

those with Matt a over discussion on for detailed more the turn quarter. to I'll call the introductory So comments,

Matthew McKee

repurchased $XXX million morning, you, at was the or $XX.X Ted, compensation, to $X.X deferred to XX.X%, million and and was X.X% million company's diluted quarter range $X.XX, with Thank is of million, respectively. the services, $X.X and to million stock line million. actual in the of so during XX,XXX of shares, of the was in Revenue over Housekeeping million, million, and company's in its But manage Since was or and be and in EBITDA $XXX was have or adjusted compensation. million million, X.X% shares excluding range. after SG&A revenue X.X%. was goal we authorization, common repurchase $XX.X margin $X.X million. share reported under cost X.X reported million adjusting CECL, million expected deferred XXX,XXX Net share goal the reported good stock, expectation $XX $XXX revenue laundry company's and for a and remaining XX.X%. X.X% have & reported shares, company's over company income X.X of and everyone. or million X.X% includes or far $XXX.X million $XXX the was at to operations $XX.X $X.X in $XXX.X the million. Cost million flow authorization. income cash were company adjusted The the was reported continue million. And common of cash $XX to was The XXXX or in million $XX.X at $X revenue increase and income continues at per or X.X%. our at quarter. respectively. $X flow $XX SG&A from of repurchased XX% from its Dining XXXX flow and margin including shares, range other Adjusted operations Cash The million increase million or to February our earnings million XXXX, SG&A its to achieving $XXX.X was range. Other reaffirmed QX stock nutrition was we X.X%. $XX services common the million third $XXX the for million has the is

up with So the open those like to for now call opening questions. we'd remarks,

Operator

Sean question first line your of RBC from Capital the And from Instructions] [Operator Dodge comes Markets.

Sean Dodge

made Yes. for just have share to you year the you can anything during Ted, the you there I progress on flow, at there around know strong you. the into visibility good full tend point else seasonally this be Is the target? really QX very cash quarter.

You up that's mentioned there macro payments posted the with the kind outage? of at the top some guess, still catching of too happening the change the backdrop. is call, all improving of I

Theodore Wahl

the Sean, Yes, question. the which higher for did that to posted, was line with and in and helped collections period adjusted over targeted XX.X% that that year. quarter, you compared $XX for range We our we thank drive quarter million same really and the last achieve cash last and flow

positive QX into We the that October. in our we're have fourth results So also gotten we've evidenced accomplishment. of by positive the do off heading very start and momentum to quarter, proud

the then makeup So in had cited periods, working But mentioned prior year-end. an as the favor collections all you of QX and strongest benefit from that our of we has Healthcare of seasonality Change We example. been it. our favor. payments also Historically, our The in you works had tension quarter.

then delays in have do taxpayers. we've in respect basis on what collected yes, So in QX. And QX, we to delays in Change as we with highlighted we some those years, collections year-end to expect do before we past continued expect do Healthcare addition cash those

and ahead in So quarter our optimizing be to XXXX. the goal overall continues collections cash

next and/or again, we're our that on increasing And taking our highlighted. focus stick to expect to continue macro to to going our year using to a into biweekly, for continue backdrop that of to and -- continuing protective We proactively promissory business monthly weekly our customers clients gain proactive ultimately both course, and decision-making new business. frequency, measure, you our on and existing strength focus improving in then notes payment and, collections with as disciplined remaining from

Sean Dodge

there can And in fourth will Matt, of for quarter? then quarter? that how then, give Great. days Okay. third what many were payroll accrual be days the in And the us the quarter you in

Matthew McKee

Yes, Sean.

it was days. X So quarter X the will days. then third be for quarter, the fourth And

Sean Dodge

acceleration what rate just year? exiting continue that is the pacing revenue the we kind some And thinking a run me. to that way see Okay. such share roll was we QX the think growth kind for then the And about the about last annualizing then here? revenue, we conditions dining If to start the you how heading of is quarter? can next Is just be anything into are cross-sell about could fair of should think of XXXX? now guidance, in to Or on quarter's on

Theodore Wahl

I management pipeline for indicators positively. from optimistic trending Well, those a all heading XXXX. services, development, -- We really into very are picture, of the perspective, demand very think big

the was into the shared to even thinking run. the and customer was coming were aligned crawl, the line Sean, client the about growing compared more growth I and what the And half the expectations we future year. year and a our ultimately, of we with second environment around operating base recall, recovery year, walk, our if the the of at how that then we of zoom in that of to strength out anticipated as moment, We you time, existed And goal partners. the growth. financial recovery, the that of at that think, really we growth revenue half spirit really saw that rounding for cadence improving had first turn top of industry of it time final that and in

coming So beginning months going set the hit goal the that think confident year. of into we we're at the that of XXXX, to that we're I final

midst more the We're added prospect in adds the quarters, specific if are meaningful the discussions more ahead. XXXX, coming I to QX think quarter. in evenly the to to that pretty know amount certainly business we going and quarter we of not throughout in

signed are started. and those already of Some

pool future And have We less or and spirit X again, we than overall, bullish but be in on final the precision, are really of But accuracy mentioned ago. not the pushed know we of yet could few group where QX pulled improving year visibility that customers we a then confident we were feeling next growth. I to the compared a pipeline have quarters started. signed customers the in into stages more that that QX. we're out or or have of rather contracting of are or a into into forward that

revenue is new the I'd we've growth I given in existing relative nimble add think concerns. is Matt if a group but we past or near-term disciplined piece the The have whom I client and going to expect exits impact to in it's adds, is the importance highlighting interest the financial-related I'd those years best drives we the few we be as We in business timing decision-making on always mentioned, estimated to the, of only remain that say, forward, our really ranges. interest and any opportunities. other we have recovery, our are subside of some to of over I expect quarter post-COVID long-term had the do what industry retention through believe exit to with

XXXX as But line set compared our we're half. year think growing we the more a top we're February beginning of certainly going growth, of talk that confident on tale expectations a year, be specifically feel half that's to we're So the the really second the expectations that about first position about. goal this to be revenue. that in confident call, about again, And to beyond hit together in think when we overall, going of had we'll XXXX our to at growth we I tape is growth which

Operator

Andy from Your Wittmann the of question comes next Baird. with line

Andrew J. Wittmann

hypothetical follow guys, here, me, including results, could picture one your quarter. can given between about you difference that question. past either quarters. a in difference CECL, in or was kind and lumpy, compared of just out have per excuse talked question, this that hypothetical adjustments on share GAAP have -- on accounting results that like your other Obviously, the or would the any you the past, on legacy recognizing tell CECL GAAP here, how just I'm I to But positive under you've credit technical versus the negative basis? just kind pretax quantify the between in those up if a be then with what a here, the could I standard start accounting to us of hoping going broader

for informative contributed quarter. what of just You're be was to and results us the to difference all how understand not I it here, but thought it'd that this

Matthew McKee

Yes.

So debt an prior booked So compared comparable to Andy. quite the right? standard. to bad was said to would have standard it known, debt to this I bridge quarter trying CECL bad or looked standard, as But previous under as CECL really that the we you're incurred really, adjustment,

So of revenue. recent discussed debt kind the prior way we've bad is XX previously was averaging that CECL, years, in points it to around that of basis

average an that's So number.

year-to-year. certainly bankruptcy debt would noting and worth or and lead see quarter, the and was client it we bad you'd a have even a in mark. But certain quarter-to-quarter to quarters ultimately which some So variability that below for could then and of that a were years specific then well you elevated that restructuring

So in averaging really revenue, referred debt offer that any to inserting plug, since what comparison a Andy, CECL, would what versus of standard. XX we a as were quarter as using you bad legacy accounting introduced really we bps

Andrew J. Wittmann

All it. right. Got right. All Okay.

guess, from just facilities that kind of are what of increasingly that these the used These living assisted bit, structural or could being seem of facilities into as and like I are how to. just places room locations. expand for what -- pathway all? stepping to are you talk demand living -- acuity at you in company's SNF you addressing precluding is. just little curious, those way locations just of seeing assisted living the to Ted, functioning And be from higher you the managed here addressing mean and levels in was higher So I'm seeing then was barriers assisted either SNFs a wondering acuity increasing assisted I about you're you or like, acuity potential what that it, business opportunity? or Are I'm just back terms you if at a if curious these living there prevents your market the elements

Theodore Wahl

Andy. And Yes. great a question, it's

picture, big the think XXXX right, I when problem think you is real.

as to companies in the You service companies, long-term ongoing all space senior that trends demographic continue care ours the living whether through, nursing that through continue and/or assisted those trends operate to and provider improve, in living, hospice. that space, operate opportunities independent right as living continuum the highlighted, like care traditional so homes macro do across living in tailwind as senior the it's idea ultimately opportunities and from parts long-term more have or of all macro then for those that the the the of on work companies the you

a XX% of So roughly nursing see rapidly education moving opportunity core when acuity living company less think traditional We i.e., facility, and they company. Today, a in to make entire living, of XX% care health, assisted focus great has of you mentioned the that in well level makes those in opportunities. tremendous you been opportunities But assisted Obviously, well playing our and positioned ourselves very post-acute we up that around for still revenues, a the business. our take is as advantage about, that than highlighted, of role growing has opportunity. abuse other long-term all the the that centers, more But our as attractive historically, is up as but part continuum. home. behavioral substance facilities the X% or forward. We're higher

under be calls market. We recently HCSG opportunities brand. talked that that one expand umbrella, existing about clear runway this. have growth there's complementary eye haven't and to for in But we a to even always we the think different But brands continue to grow our inorganic could open on like

Matthew McKee

few that we environment. X And today levels living we assisted correct ago, your assessment living increasing years who assisted as your specifically, component at as I would have skilled relative in question in assisted are sense one in just as distinguish, off, absolutely that There Andy, you're been folks to market would of look acuity living. that in first in the see even a absolutely

that of that in evolving own model, clean though, sure. I apartment, for be almost facilities space. most demand housekeeping So tends residents a just dynamic services is relative laundry are able even own still from out, and model generally aid You a services right? the a their speaking, their assisted more to that's point living to still have, would perspective, to universal

facility common other may component a employment. performing a cleaning aid their random have functions be universal to you So who facility of as contributing areas the in and

and You at facility. contrast experience a though, that, dining component a absolutely resident with dining, is massive the where assisted living significant area an of focus of

living end we So relative was as for acquisition but expand also remains certainly that the into services the footprint higher-end an education our to virtue by of is made look intended transferable we further market, the that to it that assisted market, dining us. in opportunity

in environmental assisted near So compared I would greater opportunity as a dining perspective the to in least, say a living term, services. Andy, at from

Operator

Bill of with the comes Benchmark. from question line next Sutherland Your

William Sutherland

question, Just experiencing in your thinking. skill me you mix? declines Are of to SNF follow got it clients up seeing on any the Andy's

Matthew McKee

Certainly, a mix. Bill, -- long-term for client who client. occurs to certain resident that who patient catering versus the care type within stay more clients post-acute on are operators the rehab there's more and are variability others their driving, short-term focused care are true the instance, to of long-term There

relative seeing, could end Bill, So or variability. definitely offer it's any but particular see within client I'd any to specifics, you to hard say what we're market,

William Sutherland

Okay.

also and On spoken the do sales. even various to this the better And to about there technology to is which approaches cost right of line SG&A number, quarter. and in potential in use efficiencies you've

even against base wondering, basis, as SG&A on lower? get dollar want you we range that is you revenue? the something into just an Or of revenue manage absolute just growing percent in should think So maybe can managed a it flat as far about being I'm it it to

Theodore Wahl

two, a actually the of It's mix Bill.

investments a higher we years. from continue percentage And Obviously, quarter-to-quarter to make to as be of you targeted relative manage our that relatively the past top as to X.X% I of think -- but the SG&A. a range. we're to to flat term, when today made is We it's we've than grow going that growth. line on past think portion been has a SG&A the X.X% as we XX that of in opportunity and revenue, look percentage of the that leverage further over top SG&A able expect that basis. goal over it the to line, couple really it scale Longer fixed months, to

as items drive So We're we've midst company-wide to and as we're is continue item. Similar, like initiative talked engagement you the and employees. but going which of their before, brand you invest stakeholders cost which employee burnishing external oftentimes performance, to that service critical brand well technology the reflected going and line view and which better those obviously, continue walls i.e., to for overall working of mentioned that's with in retention some of pride of in technology the both we experience, X which HCSG in the really continue I mentioned employees to engagement and in community to for to offerings leverage operating on, the image a which marketing positioning, services the and alluded investments, continuing company we're about to, touched excited as correlation in more internal we investments. then to the and our within about efficient of

same grow fixed do expect, SG&A So line. that to to all we I at of as be while and as of the top the time, we the portion the mentioned, able above, leveraging

William Sutherland

One more about Education is thinking was I the it. Got segment.

see to fourth the quarter quarter? some Curious Now school year with than first benefit, if some or and but it's benefit your seasonality starting less not in you're still X%.

Matthew McKee

Yes.

reallocation the not of headcount, in during sort is the in in hours there year, of that market. entree distinguish, into a So work lull. the the ramping some bit and in little I services business, guess the to and the provide that academic kind just selling summer only a right, to seasonality absolutely labor Bill, of seasonality There's in months. administratively project of of of there's also But the

of translate quarter? is total enough and impact that any meaningful it that fourth of -- Does impact Bill, where on there company. impact business. the absolutely an results relative that a to total there answer not you the at seasonality short the sort sort revenue to that an see yet should on is spot, We're company So applies would have answer there's yes, into

William Sutherland

actually, Okay, then kind hurricane North that. on all sneak the the Carolina? even or of And Any guess let question. me Western in Florida comment issues

Matthew McKee

would the Certainly, to Yes. we who Southeast. in clients Bill, sympathies want who offer suffered employees had the everybody losses. affected events to weather by and first down we our off, recent was And

our helped unbelievable very to And Florida in services that to we're demonstrating in Florida preparation, your North to disruptions that value an mitigate clients storms good teams both we major one had events our So our It's challenges our could track our us in those record luck. and the residents and of -- expert have just fortunately, challenges. team it's and handling our of fortunate. serve. the weather-related Carolina hand, fan those supply planning that created. And or have sensitive we Bill, out, than potential is execution really on more in really to as But it's But question, the no and chains. that's you

of were facilities. storms on in hours that X,XXX remained in And sure managers the after adjacent were residents of the up over properly evacuations facilities for to evacuated, So that presence continuous XX Florida, XX/X geographies That's to that cleared. had our assisted we XX call even the we residents cared to specifically providing relocate. then and help weren't make in even with

bit efforts storm and flow of geography areas. a facilitate was are Carolina in leveraging our the jumped some really of up have North and the into rural affected cleanup unique have pathways, teams that affected those don't to supplies the vendor of mostly concentration typically our outside mountainous, where that's rolled partners sleeves their into help affected facilities. So we Helene little But large of areas

it's So incidents, utmost can storms know sensitivity for silver and our these of it's that client that we're the have see devastation we partners heartbreaking terrible type But if lining, to with the modestly them. offer there caused. that any

expertise have plan the to execute and highly effective the We a and in manner. resources

further it of value those resonance strengthen So bolster an the client really offers really and relationships proposition. us opportunity our to

Operator

Your next with Ryan line Daniels comes of question from William the Blair.

Jack Senft

Yes. Jack Senft This on Ryan. for is

really like has your I think previous in think to on I this growth answer environmental cross-sell too going if of the think update was of wondering are services an kind in of how about and But on sounded you're opportunity. just give you to demand just much some driven touched it up I how the education in and these But opportunities XXXX? Sean's into the question, here you been answers. -- maybe guiding forward could shaping we by the of terms should and

Theodore Wahl

education the environmental think but then very breakup side, the a for environmental about strong services, opportunity. would mirror for is we is in the the growth demand the you fronts. what expect certainly you in both greenfield cross-sell, demand I revenues. services on When specifically, XXXX to current think stand-alone mentioned both And as

[ more ] dining. think services environmental XX, XX-ish and So

only the primed that but ready as create you customer existing opportunity, we alluded grow to in and expect that we that greenfield would dining, is nutrition cross-sell the EVS not we cross-sell. for that have and As dining EVS to,

moving part prior to forward. And on the continues of in touched I that X% be education a lowest it the hanging questions, of less the know front, So demand. still strategy than our on fruit of growth key our high revenues. Matt It's and one but

strategy a company. prospects to there stand-alone continue opportunity but growth So heading about the a the we for to division, we're our as and presents than specific -- longer-term be very of we XXXX think excited it that more of complement into overall the

Jack Senft

Okay. Understood. sense. Makes perfect

standpoint? you this start you bolster to and as Are QX Or fill to in continue quick in a are look into we you drive be a staffing of growth the Where we will manager XXXX? order out? to into at guys good follow-up, even kind manager area too. Just facilities of that see an terms training level -- a from to

Theodore Wahl

a XXXX can and to in a I is Very a depth XXXX. about management sure given refine talent. No most would that cadence pairing critical greatest we with does hire, quickly the enter but to good services it one as us. that is demand on develop But better then grow part level and be my the the have the to management management and of earlier, the leadership typically, alluded and up of of And and comfortable make be when in that growth follow, geography, our leadership, -- to being strategy. then range. years mentioned of where to position. it times we where Sean able able generally to at past mid, and as deploy grow up we're we ability to speaking, be spot before, just talent single-digit you need that continues those give our demand we the and at number we our we're more much managers how accounts. gating factor development. We in a in growing gating service requisite look to to It's growth develop we'd in more in years I an for better or February But of as line mentioned than expect in 'XX absolute as normal the in it today, the that so conversation to to look sense not here be train high going factor that our at local we with top ability going that significant on but part begin maybe

our We are have very of district management believe, More itself. the a difficult part we make opportunity that best a future program. growth management self-sustaining But continue candidates way done although way candidate model training that very when that's hire their training we than prepared by out sure don't the of given and X/X to district up a our design. in and the have candidates not that centers presents and way approach It's is of that's still in that job. where hands-on, making to able only train the

Jack Senft

of Perfect. this final but can opportunities wouldn't into kind curious down if what know just of look dive opportunity what question, as just be deeper segments. like can and for road. abuse substance like a both these if for sort just disorders longer-term And and I while, sneak health bit in the previously the you look of I'm one but for you full a mentioned little these And mental of I company kind the possible would

Matthew McKee

type Yes, Jack, that end nursing rehab I behavioral market of inpatient skilled comparability facilities. from to lot the the would say and certainly, a compared there's as specifically

financially having on-site environment, we that so we services, support when attractive an what about So and think manager. an makes candidate about an inpatient can for our typically, you're that's talking

a in an inpatient an provide to Our environment manager. to it's be sufficient that certainly preference able is of scale on-site

the growing finding first demand beyond services, increasing we're and for appetite both qualifier. But that, dining environmental those to that's outsource a services. So services and levels

specifically. as grow And leverage you develop our the that in to in So services markets markets end in advantage. of made provision inroads expertise continued has networking into and to we've end certain that geographies specifically, and certain your can those

quantified So offering, long an as in as the lot opportunity additive market we end it. term. about we haven't term or But the really near yet qualified a rather -- there's that that like or either service

Operator

from Your UBS. of with line comes next question A.J. Rice the

Albert Rice

know of they time there needed last you the workforce. nursing side the I years, hourly labor, felt other the when to that few at looking rates maybe the was the homes a to. the over First, updates weren't giving

across are the What need to you that I in of you hourly adequate about increase the you facilities? Is think staff seeing? of for the the positions that's are talked we you sort kind But that? client increases people at get normalizing employment the with that on where to industry.

Matthew McKee

Yes.

growth created A.J., back economy your a Unemployment in appears I million that More But if think are conditions. trend. think, sort or rate in general has U.S. longer stabilization Job were surprise more returned of to you just the to new wage postings look less from at talking wage say September, was seeing It's no and I'm to increasing that we're question, fallen And and upside. growth, recent the X.XX the market, X.X%. And stabilized. slightly, jobs here. has certainly X.X% about labor I'd declining. improving its A.J., to than I a which have pre-pandemic back to of definitely modestly. high broader

we're levels, short you to about million almost pre-pandemic Our X.XX that care, This but still long-term market post-acute relative end and specifically, XXX,XXX think lost -- had an jobs. it's jobs was sorry, if industry improving. XXX,XXX I'm

our way nursing that to space. per seeing back. jobs return a about month clawing we're pace we're skilled It's of So X,XXX the

more So I rate, kind It we're rural that there, more that facilities. workforce remain specifically, uneven others. if business remains do rural if suburban and still recovery XXXX. On though, and to remains them levels staff, I urban the stabilization. rural A.J., in retain of we're dare in recovery typically but of and pre-pandemic we're we're stabilization, employees, certain of say late sense be geographies what I and with not them. broadly markets, the It ultimately at way the complete, suburban able are seeing markets in along the back would the a would in it's more train our the But clients, lines than to speaking, the is specifically, and completely say where markets markets, in able that certain the specific and more should fully challenge, there certain recovery the ongoing to metro hire the challenges this all a say markets, challenged almost

Albert Rice

we call other the what's Or often trends the ask related food to to the there? Anything dining area side. then out and seeing And Great. there? you're about Okay. latest inflationary is

Matthew McKee

Food deflation back Yes. sequentially, was to up inflation compared was basis saw It QX. of for actually point That basis the X points that quarter. X in we inflation A.J. of

which month trends, August that was X if seen looking January. was the the highest of we've So you're points, at the since inflation monthly basis

on keep want an So that. XX food to inflation. broadly bps definitely speaking, eye of But

by just first recent kind way norm would of reminder, the of outside really through billings. that, nothing be And So passed in in quarter quarters. our

Albert Rice

Right.

know are -- that's just Any there's in last, opportunities there? thinking pipeline inorganic pursued just there? the then of on that developed that a Okay. Or you wasn't uneven did Is somewhat And you and seeing you've mention your capital quarters. And growth before? between buyback that always potential. the I deployment, then update there

Theodore Wahl

Yes.

pretty we well because we a operating position there. we believe players. in question, the but over outsourced and to model a as I'd always part have that On the more -- with We're course the say, about done past types second very we've A.J., XX XX% share. been in really XX% opportunities we opportunities always in less, been history, the of over the of fact upon think couple as since have regional we're improve opportunities even we selective, best good the our the those but enthused it, of out -- of it's service type There's mousetrap opportunity market our tuck-in we years, have terms there, over

there's the play, opportunities, we or have just is reality it market education out be the many within not education-related that eye space opportunities. in complementary you investment as well if opportunities, acquisition those on attractive other type our certainly, there. But core our candidates as whether will, other or pure as So

the that the the see always on is there, future, in some interest and ahead. projected that's those year out see more we we being and potentially So opportunities activity with rate do of more fronts more in certainty

excited So that. we're about

bridging at we existed. capital that shareholders. And alternative analysis conversation share talked and repurchases consideration. of be any those part have at creep, of the a to of timing just where really can otherwise That specifically to pace we're on and repurchase the dependent we've couple from cash opportunities annual past about back return. view growth the could rates as It's little time present our the way be creep when we and or use about be on a tax-efficient inorganic think always or via framework, is themselves share think had whether eliminated We opportunism that factors execution. certainly share give when more opportunistic. we really buyback capital years, we return opportunities, being just the looking I And to organic color, to expected to that allocation continues as continue exist the perspective, the position may liquidity a price of deliver then about look you over flow. We've the being our which obviously at look dilution highest to a at it our

view of a those considerations holistic we all that decision. and into it's are take So the factored

Operator

to now conference session. the back Ted remarks. for our concludes over I Q&A Wahl closing That turn will

Theodore Wahl

Thank exciting the Okay. company. for Great. an It's you. time incredibly

the And tailwind, deliver multi-decade of stronger shareholder are on fundamentals favorably at meaningful a to the long-term positioned with underlying ahead value. demographic very the Our capitalize industry are ever. we than beginning opportunities and

all and you at wanted Healthcare you and to everyone thank we hosting call for for thank Services to Matt Group, joining of of us. today, behalf on the So Jeannie, us

Operator

call. concludes This today's

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