Healthcare Services Group, Inc. reported a consolidated revenue of $1.72 billion for the fiscal year ending December 31, 2024, reflecting a 2.7% increase from $1.67 billion in 2023. The company's profitability also improved, with net income rising to $39.5 million, up 2.8% from $38.4 million in the previous year. The increase in revenue was primarily driven by a 5% rise in the Dietary segment, which generated $950.3 million, while the Housekeeping segment saw a slight decline of 0.2%, contributing $765.4 million.
The company experienced notable changes in its operational metrics compared to the previous fiscal year. The allowance for doubtful accounts increased to $46.8 million, representing 2.7% of total revenues, up from 2.1% in 2023. This increase was attributed to heightened credit risks associated with certain customers, including LaVie Care Centers, which filed for Chapter 11 bankruptcy. The company continues to provide services to LaVie while deferring revenue recognition until cash is received.
In terms of strategic developments, Healthcare Services Group did not engage in any acquisitions during 2024 but focused on enhancing its service offerings. The company serves approximately 2,600 facilities across the United States, maintaining its position as the largest provider of housekeeping, laundry, and dietary management services in the long-term care industry. The workforce comprised about 35,300 employees as of December 31, 2024, with a commitment to diversity, as 69% of employees are women and 62% are from BIPOC communities.
Looking ahead, the company anticipates continued growth driven by an aging population and increasing demand for long-term care services. However, it faces challenges from inflationary pressures affecting labor and supply costs, which could impact profitability. The management aims to secure new service agreements and retain existing customers while implementing cost control measures to navigate these challenges. The company remains optimistic about its ability to adapt to market conditions and maintain its financial performance in the coming year.
About HEALTHCARE SERVICES GROUP INC
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