Healthcare Services Group, Inc. (HCSG) reported a solid performance for the three and nine months ended September 30, 2024, with consolidated revenues reaching $428.1 million for the third quarter, a 4.1% increase from $411.4 million in the same period of 2023. For the nine months, revenues totaled $1.278 billion, up 2.4% from $1.248 billion year-over-year. The growth was primarily driven by the Dietary segment, which saw revenues rise by 4.9% to $705.2 million, while Housekeeping revenues slightly decreased by 0.5% to $572.7 million.
The company reported a significant turnaround in profitability, with net income for the third quarter of 2024 at $14.0 million, compared to a net loss of $5.0 million in the same quarter of 2023. For the nine-month period, net income was $27.6 million, up from $14.9 million in the prior year. Basic earnings per share for the third quarter improved to $0.19 from a loss of $0.07 in the same period last year.
Investment and other income also saw a notable increase, reaching $3.8 million in the third quarter of 2024, compared to $394,000 in the same quarter of 2023. This increase was influenced by favorable market conditions affecting trading securities. However, selling, general, and administrative expenses rose by 10.4% to $44.5 million, driven by higher payroll, legal, travel, and fleet-related costs.
On the balance sheet, total assets increased to $805.8 million as of September 30, 2024, up from $790.7 million at the end of 2023. Cash and cash equivalents decreased significantly to $27.1 million from $54.3 million, while marketable securities also fell to $76.8 million from $93.1 million. Accounts receivable rose to $406.5 million, reflecting an increase in the allowance for doubtful accounts due to LaVie Care Centers, LLC's Chapter 11 bankruptcy filing.
Strategically, HCSG amended its Restated Articles of Incorporation in June 2024 to increase the number of authorized shares of common stock from 100 million to 200 million. The company also made a $2.8 million investment for a 25% ownership share in a healthcare technology company during the nine months ended September 30, 2024.
Overall, HCSG's financial results indicate a recovery in profitability and revenue growth, particularly in its Dietary segment, despite challenges in the Housekeeping segment and increased operational costs.
About HEALTHCARE SERVICES GROUP INC
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