Q2 2024 Healthcare Services Group Inc Earnings Call Transcript
Key Points
- Healthcare Services Group Inc (HCSG) reported revenue of $426.3 million, in line with expectations.
- The company achieved over 96% cash collections during the quarter, showing improvement compared to last quarter and the same period last year.
- HCSG is raising its Q3 and Q4 revenue estimates to $425 to $435 million and $430 to $440 million, respectively.
- The industry fundamentals are trending positively, with a slow but steady increase in workforce availability and rising occupancy levels.
- HCSG remains confident in its ability to deliver meaningful long-term shareholder value, supported by strong business fundamentals and strategic priorities.
- HCSG reported a net loss and diluted loss per share of $1.8 million and $0.02, respectively, including the impact of client restructuring charges.
- Cash collections fell short of the Q2 target, although they showed improvement compared to previous periods.
- The company faced delays in receiving supplemental funding for clients affected by the Change Healthcare cyber attack, impacting cash flow.
- The LaVie Care Centers' Chapter 11 filing negatively impacted HCSG's second-quarter results.
- Cost of services was reported at 90.2%, above the company's targeted range, indicating higher operational costs.
Good morning, and welcome to HCSG Inc's second-quarter 2024 earnings call. (Operator instructions)
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 statements notice.
Additionally, management will be discussing certain non-GAAP financial measures. A reconciliation of these items to US GAAP can be found this morning's press release.
At this time, I would like to turn the call over to
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