BENSALEM, Pa., Jan. 21 /PRNewswire-FirstCall/ -- Healthcare Services
Group, Inc. (Nasdaq: HCSG) -- Our Board of Directors has declared a fourth
quarter 2003 dividend of $.08 per common share, payable on February 14, 2004
to shareholders of record at the close of business January 31, 2004. This
dividend represents a 13% increase over the dividend declared for the third
quarter.
The Company intends to release its results for the three months
(unaudited) and year ended (audited) December 31, 2003 during the week of
February 20, 2004.
The Company has a Dividend Reinvestment Plan available for shareholders to
apply their dividends to the purchase of the Company's common stock.
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 23% of revenues in
2003; the Company's 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 the Company's most recent
Form 10-K filed with the Securities and Exchange Commission for the year ended
December 31, 2002 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
("PPS"). 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 the Company's 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 the Company's 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, the Company's 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 its services could not be
passed on to clients.
In addition, we believe 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 the various operational levels of the Company.
Furthermore, the Company believes that its 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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