Healthcare Services Group, Inc. (NASDAQ:HCSG) Q2 2024 Earnings Conference Call July 24, 2024 8:30 AM ET

Company Participants

Ted Wahl – President and Chief Executive Officer
Matt McKee – Chief Communication Officer

Conference Call Participants

Sean Dodge – RBC
Bill Sutherland – Benchmark
Andrew Wittmann – Baird
A.J. Rice – UBS
Jack Senft – William Blair

Operator

Good morning and welcome to HCSG Inc's Second Quarter 2024 Earnings Call. All participants are now in a listen-only mode. After the speakers' remarks, we will have a question-and-answer session. [Operator Instructions]

The matters discussed on today's conference call include forward-looking statements about the business prospects of Healthcare Services Group, Inc. For Healthcare Services Group Inc.'s most recent forward-looking statement notice, please refer to the press release issued this morning which can be found on our website, www.hcsg.com. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties and important factors, including those discussed in the Risk Factors MD&A and other sections of the annual report on Form 10-K and Healthcare Services Group Inc.'s other SEC filings and as indicated in our most recent forward-looking statement notice. Additionally, management will be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP can be found in this morning's press release.

At this time I would like to turn the call over to Ted Wahl, President and Chief Executive Officer. Please go ahead.

Ted Wahl

Thank you and good morning everyone. Matt McKee and I appreciate you joining us today. We released our second quarter results this morning and plan on filing our 10-Q by the end of the week. Today, in my opening remarks, I'll first discuss our Q2 financial highlights and key accomplishments. I'll then share our perspective on the latest industry trends and developments, and then lastly I'll provide an update on our second half of the year priorities and outlook for the rest of the year. I'll then turn the call over to Matt to provide a more detailed discussion on the quarter.

So with that overview, I'd like to now discuss our Q2 financial highlights and key accomplishments. For the three months ended June 30, 2024, we reported revenue of $426.3 million in line with expectations, net loss and diluted loss per share of $1.8 million and $0.02, which includes the $0.22 impact of client restructuring charges and reported cash flow from operations of $16.3 million and adjusted cash flow used in operations of $2.4 million. Our field-based team delivered strong service execution leading to another successful quarter of managing cost of services, excluding CECL within our targeted range. Additionally, we achieved over 96% cash collections during the quarter, which fell short of our Q2 target but showed improvement compared to last quarter and the same period last year, and importantly keeps us on track to meet our 2024 adjusted cash flow objectives.