Healthcare Services Group, Inc. Reports Results For The Three And Six Months Ended June 30, 2013, Provides Update On Revenue Expectations For Remainder Of Year & Increases Second Quarter 2013 Cash Dividend
BENSALEM, Pa., July 16, 2013 (GLOBE NEWSWIRE) -- Healthcare Services Group, Inc. (Nasdaq:HCSG) reported that revenues for the three months ended June 30, 2013 increased over 2% to $273,604,000 compared to $267,108,000 for the same 2012 period. Net income for the three months ended June 30, 2013 increased over 14% to $12,933,000 or $0.19 per basic and per diluted common share, compared to the three months ended June 30, 2012 net income of $11,320,000 or $0.17 per basic and per diluted common share.
Revenues for the six months ended June 30, 2013 increased approximately 4% to $547,508,000 compared to $527,715,000 for the same 2012 period. Net income for the six months ended June 30, 2013 increased over 40% to $27,887,000 or $0.41 per basic and $0.40 per diluted common share, compared to the six months ended June 30, 2012 net income of $19,899,000 or $0.30 per basic and $0.29 per diluted common share.
In June, the Company added more facilities and revenue than any other month since 2011 and will fully reflect that organic expansion in the third quarter results. We expect to continue our accelerated facility expansion into the second half of 2013. The first quarter relationship modifications notwithstanding, we expect our revenues for the remainder of 2013 and 2014 to return to our historical long term target of double digit revenue growth. The Company also announced that yesterday it entered into an asset purchase agreement with Platinum Health Services, LLC ("Platinum") to acquire substantially all of its operating assets. Platinum is a privately-held provider of professional housekeeping, laundry and maintenance services to long-term and post-acute care facilities. We expect the transaction to add more than $60,000,000 in annualized revenues and be accretive to future earnings per share.Additionally, on July 9, 2013, our Board of Directors declared a quarterly cash dividend of $0.16875 per common share, payable on September 20, 2013 to shareholders of record at the close of business on August 16, 2013. This represents the 41st consecutive quarterly cash dividend payment, as well as the 40th consecutive increase since our initiation of quarterly cash dividends in 2003.
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