Healthcare Services Group, Inc. (NASDAQ:HCSG) Q3 2024 Earnings Conference Call October 23, 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 Capital Markets
Andy Wittmann - Baird
Bill Sutherland - Benchmark
Jack Senft - William Blair
A.J. Rice - UBS

Operator

Thank you, for standing by. My name is Jeanne, and I will be your conference operator today. At this time, I would like to welcome everyone to the HCSG 2024 Third Quarter Conference Call.

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.

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. All lines have been placed on mute, to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to turn the conference over to Ted Wahl. You may begin, your conference.

Ted Wahl

Thank you, and good morning everyone. Matt McKee and I appreciate you joining us today. We released our third quarter results this morning, and plan on filing our 10-Q by the end of the week.

We're very pleased with our third quarter results, which underscore the positive momentum, we're carrying into the fourth quarter. Executing on our three strategic priorities of driving growth, managing costs and optimizing collections, is clearly paying off, resulting in sequential and year-over-year growth in revenue, earnings and cash flow.

For the three months ended September 30, 2024, we reported revenue of $428.1 million in line with expectations, net income and diluted EPS of $14 million and $0.19 per share and reported and adjusted cash flow from operations of $4.3 million and $19 million.

I'd like to now share our perspective, on the latest industry trends and developments. Industry fundamentals continue to trend positively, highlighted by rising occupancy, which now sits at 79.8% just under the low 80s pre-pandemic levels. A continued increase in workforce availability, with the industry adding over 100,000 jobs since the beginning of 2023.