Healthcare Services 2Q profit grows 14 percent

Housekeeping services provider Healthcare Services' 2Q profit up 14 pct on facility adds

Associated Press

BENSALEM, Pa. (AP) -- Healthcare Services Group Inc., which provides housekeeping and food services to hospitals and nursing homes, said Tuesday that its net income rose 14 percent in the second quarter as it added more facilities.

The company said it added more facilities and revenue in June than any other month since 2011.

Profit grew to $12.9 million, or 19 cents per share, from $11.3 million, or 16 cents per share. Revenue rose 2 percent, to $273.6 million from $267.1 million.

Analysts were expecting net income of 19 cents per share and $282.7 million in revenue, according to FactSet.

The company said it expects double-digit revenue growth for the rest of 2013 and into 2014 as it expands to more facilities in the second half of the year.

The company also expects a pending acquisition to boost earnings per share. On Monday Healthcare Services Group said it agreed to buy Platinum Health Services, which provides professional housekeeping, laundry and maintenance services to health care facilities, for about $29 million. The company expects the deal will add about $60 million in annual revenue.

Healthcare Services Group posted $1.08 billion in sales last year.

Shares of Healthcare Services Group lost a penny to $24.74 on Tuesday and were unchanged in aftermarket trading.

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