Tuesday, housekeeping service provider Healthcare Services Group Inc. (HCSG) reported a 13% rise in the first-quarter net income from the year-ago period primarily due to higher revenues and investment and interest income. The company declared a first quarter 2009 regular quarterly cash dividend of $0.18 per common share.
The Bensalem, Pennsylvania-based company reported a first-quarter net income of $7.74 million or $0.18 per share, up from $6.86 million or $0.16 per share in the corresponding quarter last year. On average, seven analysts polled by Thomson Reuters estimated earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 9% to $160.41 million from $147.26 million in the prior-year similar period. Analysts estimated revenues of $158.36 million for the quarter.
Investment and interest income for the first-quarter of fiscal 2009 increased to $0.94 million from $0.32 million in the comparable period of fiscal 2008.
The Board of Directors declared the 24th consecutive regular quarterly cash dividend of $0.18 per common share, payable on May 15, 2009 to shareholders of record at the close of business April 24, 2009. The dividend, a 23rd consecutive increase since the initiation of regular quarterly cash dividend payments in 2003, represents a 29% increase over the 2008 same period payment.
On April 13, 2009, the company entered into a definitive asset purchase agreement with Contract Environmental Services, Inc. to acquire substantially all of its assets. Contract Environmental Services, Inc is a provider of professional housekeeping, laundry and food services to long-term care and related facilities. Healthcare, without assurance, expects the transaction to add more than $40.0 million to its annualized revenues, as well as being accretive to future earnings per share.
The transaction is anticipated to close on or about May 1, 2009. Healthcare Services Group indicated that the proposed purchase price includes, among others, an issue of approximately 65,000 shares of the company's common stock apart from a future issue of approximately 265,000 shares contingent upon the achievement of certain financial targets.
The proposed purchase price also includes a cash payment of approximately $5.0 million and the company's assumption of approximately $5.5 million of certain debt obligations of the sellers.
Healthcare Services Group closed Tuesday's regular trading at $15.91, down $0.02 or 0.13% on a volume of 143,187 shares on the Nasdaq. In after-hours, the stock gained 4 cents trading at $15.95.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.