Full Press Release Details
HEALTHCARE SERVICES GROUP, INC.
DECLARES FOURTH QUARTER 2008 CASH DIVIDEND
Bensalem, PA January 20, 2009- Healthcare Services Group, Inc. (NASDAQ-HCSG)
Our Board of Directors has declared a regular quarterly cash dividend of $.17 per common
share, payable on February 20, 2009 to shareholders of record at the close of business February 6,
2009. This dividend represents a 6% increase over the dividend declared for the 2008 third quarter
and a 31% increase over the 2007 same period payment. It is the twenty-third consecutive regular
quarterly cash dividend payment, as well as the twenty-second consecutive increase since our
initiation of regular quarterly cash dividend payments in 2003
We intend to release our results for the three months (unaudited) and year ended (audited)
December 31, 2008 during the week of February 9, 2009, as well as to hold a conference call to
discuss our results after the release .
The Company also announces that it will make a presentation on February 11, 2009 regarding the
Company at the UBS Warburg Global Healthcare Services Conference at the Grand Hyatt in New York
City. Additionally, this presentation will be audio webcast at www.ibb.ubs.com.
Cautionary Statement Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 (the Exchange
Act ), as amended, are not historical facts but rather based on current expectations, estimates and
projections about our business and industry, our beliefs and assumptions. Words such as believes,
anticipates, plans, expects,
will, goal, and similar expressions are intended to identify forward-looking statements. The
inclusion of forward-looking statements should not be regarded as a representation by us that any
of our plans will be achieved. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
Such forward-looking information is also subject to various risks and uncertainties. Such risks and
uncertainties include, but are not limited to, risks arising from our providing 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 15% of
revenues in the year ended December 31, 2008; risks associated with our acquisition of Summit
Services Group, Inc.; our claims experience related to workers compensation and general liability
insurance; the effects of changes in, or interpretations of laws and regulations governing the
industry, including state and local regulations pertaining to the taxability of our services; and
the risk factors described in our Form 10-K filed with the Securities and Exchange Commission for
the year ended December 31, 2007, including Part I thereof under
Government Regulation of
Clients , Competition and Service Agreements/Collections ,
and under Part IA Risk Factors . Many of our clients
revenues are highly contingent on Medicare and Medicaid reimbursement funding rates, which Congress
has affected through the enactment of a number of major laws during the past decade. These laws
have significantly altered, or threatened to alter, overall government reimbursement funding rates
and mechanisms. The overall effect of these laws and trends in the long-term care industry have
affected and could adversely affect the liquidity of our clients, resulting in their inability to
make payments to us on agreed upon payment terms. These factors, in addition to delays in payments
resulted in, and could continue to result in, significant additional bad debts in the near
future. Additionally, our operating results would be adversely affected if unexpected increases in
the costs of labor and labor related costs, materials, supplies and equipment used in performing
services could not be passed on to our clients.
In addition, we believe that to improve our 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.