BENSALEM, Pa., Jan. 19 /PRNewswire-FirstCall/ -- The Board of Directors of
Healthcare Services Group, Inc. (Nasdaq: HCSG) has declared a fourth quarter
2004 dividend of $.09 per common share, payable on February 11, 2005 to
shareholders of record at the close of business January 28, 2005. This
dividend represents a 13% increase over the dividend declared for the third
quarter and is the seventh consecutive quarterly dividend payment, as well as
the sixth consecutive increase since we have initiated a quarterly dividend
payment in 2003.
The Company has a Dividend Reinvestment Plan available for shareholders to
apply their dividends to the purchase of the Company's common stock.
The Company intends to release its results for the three months (unaudited)
and year ended (audited) December 31, 2004 during the week of February 21,
2005.
The Company announced that it will make a presentation on February 14,
2005 at 8:30 AM regarding the Company at the "UBS Warburg Global Healthcare
Services Conference" in New York City. Additionally, this presentation is
being audio webcast at http://www.ibb.ubs.com.
Forward-Looking Statements/Risk Factors
Certain matters discussed may include forward-looking statements that are
subject to risks and uncertainties that could cause actual results or
objectives to differ materially from those projected. The Company undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Such
risks and uncertainties include, but are not limited to, risks arising from
the Company providing its services exclusively to the health care industry,
primarily providers of long-term care; credit and collection risks associated
with this industry; one client accounting for approximately 20% of revenues in
2004; our claims' experience related to workers' compensation and general
liability insurance; the effects of changes in laws and regulations governing
the industry and risk factors described in our most recent Form 10-K filed
with the Securities and Exchange Commission for the year ended
December 31, 2003 in Part I thereof under "Government Regulation of Clients,"
"Competition" and "Service Agreements/Collections." Many of our clients'
revenues are highly reliant on Medicare and Medicaid reimbursement funding
rates, which have been and continue to be adversely affected by the change in
Medicare payments under the 1997 enactment of the Prospective Payment System.
That change, and lack of substantive reimbursement funding rate reform
legislation, as well as other trends in the long-term care industry have
resulted in certain of our clients filing for bankruptcy protection. Others
may follow. Any decisions by the government to discontinue or adversely modify
legislation related to reimbursement funding rates will have a material
adverse affect on our clients. These factors, in addition to delays in
payments from clients, have resulted in and could continue to result in
significant additional bad debts in the near future. Additionally, our
operating results would also be adversely affected if unexpected increases in
costs of labor and labor-related costs, materials, supplies and equipment used
in performing our services could not be passed on to our clients.
In addition, we believe that to further improve our future financial
performance we must continue to obtain service agreements with new clients,
provide new services to existing clients, achieve modest price increases on
current service agreements with existing clients and maintain internal cost-
reduction strategies at our various operational levels. Furthermore, we
believe that our ability to sustain the internal development of managerial
personnel is an important factor impacting future operating results and
successfully executing projected growth strategies.
Healthcare Services Group, Inc. is the largest national provider of
professional housekeeping, laundry and food services to long-term care and
related facilities.
SOURCE Healthcare Services Group, Inc.
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Related links:
http://www.hcsgcorp.com
CONTACT:
Daniel P. McCartney, Chairman and Chief
Executive Officer, +1-215-639-4274 or Thomas Cook, President and
Chief Operating Officer, +1-215-639-4274, both of Healthcare
Services Group
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