NASDAQ$HCSG

Healthcare Services Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported revenue of $420.4 million and net income of $2.1 million.

Healthcare Services Group reported Q4 2021 results with revenue of $420.4 million and net income of $2.1 million, or $0.03 per basic and diluted common share. The company is actively modifying service agreements to adjust for inflation and expects these modifications to be completed throughout the first half of 2022.

  • Revenue for the quarter was $420.4 million.
  • Net income was $2.1 million, or $0.03 per basic and diluted common share.
  • The Board of Directors declared a quarterly cash dividend of $0.21125 per common share.
  • Direct cost of services was reported at $377.2 million, or 89.7%.

Headline financials

Total Revenue

$420M

Previous: $423M-0.6%
EPS (adj)

$0.03

Previous: $0.37-91.9%
Capital Expenditures

$1.49M

Previous: $1.27M+17.2%
Free Cash Flow

$29.9M

Previous: $74.4M-59.8%
Net Income

$2.11M

Previous: $27.7M-92.4%
Operating Income

-$1.07M

Previous: $29M-103.7%
Gross Profit

$43.2M

Previous: $71M-39.1%
Cash & Equivalents

$70.8M

Previous: $139M-49.2%
Total Assets

$778M

Previous: $785M-1.0%
Stock-Based Comp

$1.86M

Previous: $1.96M-4.9%

Revenue & EPS history

HCSG · Revenue · Quarterly

$420M

Q4 2021-0.6%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The Company expects service agreement modifications to be completed throughout the first half of 2022, with a goal of exiting the year with cost of services in line with its historical target of 86%. The Company expects SG&A to approximate 8.5% to 9.5% in the year ahead. The Company expects a 2022 tax rate of 24% to 26%.

Tailwinds

  • Operators have worked through the clinical challenges of both the Delta and Omicron strains, leading to relative stability in industry census since August.
  • There is cautious optimism that the availability of staff improves.
  • Labor market pressure is expected to stabilize.
  • Operators are expected to be able to build back their census in the year ahead.
  • The long-term growth outlook for the Company remains strong given market leadership, efficient operating model and attractive demographics.

Headwinds

  • Continued margin pressures resulting from workforce availability.
  • Inflation.
  • Supply chain disruption.
  • Increases in labor and supply costs impacted cost of services.
  • Q4 effective tax rate was impacted by lower income before taxes and other discrete items related to the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+1.0%

Avg return

Earnings day

+1.5%

Avg return

5 days after

-2.3%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+31.3%

Q4 2023

Best reaction

-23.2%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+18.4%+12.1%+5.6%
Q4 2025+15.8%+12.2%+1.6%
Q3 2025+13.6%+14.3%+8.4%
Q2 2025-1.2%+0.8%+4.9%
Q1 2025+29.5%+46.5%+50.9%
Q4 2024-1.8%-0.6%+0.1%
Q3 2024+4.0%+6.4%+13.5%
Q2 2024-9.1%-2.6%-8.1%
Q1 2024-7.9%-9.1%-9.6%
Q4 2023+31.3%+28.6%+27.9%
Q3 2023-1.9%-6.3%+1.0%
Q2 2023-14.9%-14.2%-20.4%
Q1 2023+9.6%+10.2%+2.3%
Q4 2022+7.1%+13.4%+1.1%
Q3 2022-2.5%-2.8%+2.8%
Q2 2022-23.2%-23.2%-20.3%
Q1 2022+19.2%+10.1%+1.1%
Q4 2021-0.9%-3.6%+4.3%
Q3 2021-13.7%-14.3%-20.2%
Q2 2021-12.4%-13.7%-17.4%
Q1 2021+11.6%+13.5%+9.5%
Q4 2020-7.8%-9.4%-13.0%
Q3 2020+2.5%-0.2%-1.8%
Q2 2020-3.0%-2.9%-19.2%
Q1 2020+9.2%+8.5%+0.6%
Q4 2019+9.0%+10.6%-24.6%
Q3 2019-5.6%-4.1%-3.3%
Q2 2019-21.9%-17.5%-26.4%
Q1 2019-4.9%+1.4%-6.7%
Q4 2018-6.1%-6.7%-18.9%
Q3 2018+4.3%+5.6%+9.1%
Q2 2018-9.9%-7.7%-3.8%
Q1 2018-5.3%-2.8%-8.9%
Q4 2017-1.5%-4.0%-19.0%
Q3 2017-4.6%-3.4%-8.5%
Q2 2017+12.2%+14.1%+10.7%
Q1 2017+10.1%+8.5%+10.8%
Q4 2016+0.1%+3.4%+6.1%
Q3 2016-3.5%-4.7%-8.4%
Q2 2016-6.2%-7.2%-5.3%
Q1 2016+2.2%
Q4 2015-1.9%
Q3 2015-2.4%
Q2 2015-0.3%
Q1 2015+2.8%
Q4 2014+1.3%
Q3 2014+2.8%
Q2 2014-4.2%
Q1 2014+4.8%
Q4 2013+0.0%
Q3 2013-2.0%
Q2 2013+0.4%
Q1 2013+0.7%
Q4 2012-0.8%
Q3 2012-3.9%
Q2 2012+6.7%
Q1 2012+6.0%
Q4 2011+0.0%
Q3 2011+4.2%
Q2 2011-3.3%
Q1 2010-0.2%
Q1 2011+2.0%
Q4 2008+0.9%
Q4 2010+0.9%
Q3 2009-0.2%
Q3 2010-0.2%
Q2 2009+4.1%
Q2 2010+4.1%
Q4 2009+4.1%

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