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HEALTHCARE SERVICES GROUP, INC. REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1995



HUNTINGDON
This article is about the English town of Huntingdon. .
Coordinates:  Huntingdon is a town in the county of Cambridgeshire in East Anglia, England.
 VALLEY, Pa., Aug. 4 /PRNewswire/ -- Healthcare Services Group, Inc. (Nasdaq-NNM: HCSG HCSG Healthcare Services Group Incorporated (Bensalem, PA) ) reported revenues for the three months ended June 30, 1995, of $36,625,000 compared to $32,923,000 for the same 1994 quarter, representing over an 11% increase. Net income for the three months ended June 30, 1994, was $17,000 compared to 1994 second quarter net income of $1,689,000 or $.21 per common share. The 1995 second quarter net income was reduced by approximately $1,594,000 or $.20 per common share to reflect the effect of recording a provision for the estimated costs related to a Securities and Exchange Commission (SEC) non-public investigation and other matters previously reported on in the Company's financial statements. The Company has been cooperating fully with the SEC inquiry on a voluntary basis. Although the Company and its officers deny any wrongdoing in connection with certain allegations of violations of Federal securities laws being considered by the SEC Staff with respect to periods ended on or before December December: see month.  31, 1991, it anticipates that it will incur To become subject to and liable for; to have liabilities imposed by act or operation of law.

Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court.
 a significant amount of legal and related costs in connection with these matters.

Revenues for the six months ended June 30, 1995, were $73,011,000 compared to $64,518,000 for the same 1994 period representing over a 13% increase. Net income for the six months ended June 30, 1995, was $1,826,000 or $.22 per common share, compared to the 1994 six-month period net income of $3,273,000 or $.41 per common share. The effect of the Company's recording of a provision for estimated cost related to SEC inquiry and other matters reduced six-month net income by approximately $1,594,000 or $.20 per common share.

On August 1, 1995, the Company issued 180,851 shares of its common stock representing its payment obligation under the 1993 settlement of the consolidated class action complaints filed against it in 1991 and 1992. Accordingly, the effect of issuing these shares is reflected in the per-share amounts reported for the three- and six-month periods ended June 30, 1995. The June 30, 1995, Balance Sheet also reflects the payment of the previously recorded Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 Liability of $2,125,000 by increasing stockholders' equity in the same amount.

The Company's Board of Directors has again authorized the purchase of its common stock. The shares will be purchased from time to time on the open market. Although the Company has not determined how many shares may be purchased, it is not expected that purchases in the aggregate would exceed 5% of the Company's outstanding shares of common stock.

Healthcare Services Group, Inc. is the largest national provider of professional housekeeping A set of instructions that are executed at the beginning of a program. It sets all counters and flags to their starting values and generally readies the program for execution.  and laundry Laundry can be:
  • items of clothing and other textiles that require washing
  • the act of washing clothing and textiles
  • the room of a house in which this is done
History of laundry
Before industrialization
 services to long-term care facilities.
                      HEALTHCARE SERVICES GROUP, INC.
                          Statements of Income
                              (Unaudited)
                                   For the Three Months Ended June 30
                                          1995             1994
    Revenues                          $36,625,000      $32,923,000


Operating costs operating costs nplgastos mpl operacionales  and expenses:
     Cost of services provided         30,851,000       27,462,000


Selling, general and
      administrative                    3,327,000        2,765,000


Recovery of contingent losses on
      promissory notes sold               (50,000)         (75,000)


Other income (expense):

Provision for estimated cost

related to SEC inquiry and
      other matters                    (2,400,000)             ---
     Interest income                      234,000          141,000
    Income before income taxes            331,000        2,912,000
    Income taxes                          314,000        1,223,000
    Net income                            $17,000       $1,689,000
    Earnings per common share                $.00             $.21


Weighted average number of
     common shares outstanding          8,212,021        8,187,756
                                    For the Six Months Ended June 30
                                          1995             1994
    Revenues                          $73,011,000      $64,518,000


Operating costs and expenses:
     Cost of services provided         61,617,000       54,066,000


Selling, general and
      administrative                    6,254,000        5,157,000


Recovery of contingent losses on
      promissory notes sold              (200,000)        (125,000)


Other income (expense):

Provision for estimated cost

related to SEC inquiry and
      other matters                    (2,400,000)             ---
     Interest income                      433,000          223,000
    Income before income taxes          3,373,000        5,643,000
    Income taxes                        1,547,000        2,370,000
    Net income                         $1,826,000       $3,273,000
    Earnings per common share                $.22              .41


Weighted average number of
     common shares outstanding          8,261,678        8,169,432
                       Condensed Balance Sheets
                                           June 30,         Dec. 31,
                                            1995             1994
    Cash and cash equivalents           $14,002,000      $11,230,000
    Accounts receivable, net             33,111,000       32,773,000
    Deferred income taxes                 1,146,000        1,435,000
    Other current assets                  8,819,000        9,090,000
    Property and equipment                6,308,000        5,943,000
    Intangible assets                       396,000        1,107,000


Cost in excess of fair value of
     net assets acquired                  2,312,000        2,367,000


Certificates of deposit pledged for
     loan guarantees                            ---        1,500,000
    Deferred income taxes                 2,345,000        2,207,000
    Other assets                          8,836,000        8,163,000
    Total                               $77,275,000      $75,815,000
    Accrued insurance claims current       $900,000       $1,357,000
    Other current liabilities             4,538,228        7,025,000
    Accrued insurance claims              3,387,000        2,884,000


Reserve for contingent losses on
     promissory notes                       100,000          300,000
    Litigation settlement liability             ---        2,125,000


Reserve for estimated cost related
     to SEC inquiry and other matters     1,991,000              ---
    Stockholders' equity                 66,358,772       62,124,000
    Total                               $77,275,000      $75,815,000


/delval/
    -0-                    8/4/95


/CONTACT: Daniel Daniel, book of the Bible
Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C.
 P. McCartney, Chairman and Chief Executive Officer, or Thomas Cook, President and Chief Operating Officer Chief Operating Officer (COO)

The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president.
, of Healthcare Services Group, 215-938-1661/

(HCSG)

CO: Healthcare Services Group, Inc. ST: Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York  IN: SU: ERN

MK-MP -- PH001 -- 1761 08/04/95 08:20 EDT EDT
abbr.
Eastern Daylight Time


EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

EDT 
 
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Date:Aug 4, 1995
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