Healthcare Services Group Inc. (NASDAQ:HCSG) Q4 2016 Earnings Conference Call - Final Transcript
Feb 08, 2017 • 08:30 am ET
Good day, ladies and gentlemen. And welcome to the Healthcare Services Group, Inc. 2016 Fourth Quarter Conference Call. [Operator Instructions].
The matters discussed on today's conference call include forward-looking statements about the business prospects of Healthcare Services Group, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often preceded by words such as believes, expects, anticipates, plans, will, goal, may, intends, assumes or similar expressions. Forward-looking statements reflect management's current expectations as of the date of this conference call and involve certain risks and uncertainties.
The forward-looking statements are based on assumption that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances.
As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances. Healthcare Services Group's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors and the forward-looking statements are not guarantees of performance.
Some of the factors that could cause future results to materially differ from recent results or those projected in forward-looking statements are included in our earnings press release issued prior to this call and in our filings with the Securities and Exchange Commission. We are under no obligation and expressly disclaim any obligations to update or alter the forward-looking statements, whether as a result of such changes, new information, subsequent events or otherwise.
I would now like to introduce your host for today's conference, Mr. Ted Wahl, President and CEO. You may begin.
Thank you, Sondra. And good morning, everyone. Matt McKee and I appreciate all of you joining us for today's conference call. We released our fourth quarter results yesterday after the close and plan on filing our 10-K the week of February 20. For the fourth quarter, revenues were up 9% to $399 million. Housekeeping and laundry grew at 6%, dining and nutrition was up 14% for the quarter. Revenues for the year increased 9% to $1.56 billion. Earnings from operations increased to $31 million in Q4 and $122 million for the year after adjusting for the change in deferred comp. Both revenues and earnings from ops for the quarter and year were company records.
As we look towards 2017, the demand for our services is as strong as ever. The demand will present significant opportunities in the years ahead as we truly have positioned ourselves as a strategic partner of the provider community. Our primary operational goal is to provide an extraordinary service and experience to our customers by executing on our systems implementation and adherence and people development strategies. These are the key ingredients that will ensure double-digit profitable growth over the long term. With the Trump administration taking shape, our eighth administration since the company's founding, we do expect a more friendly tone and tenor towards the business community at large, although we've managed to thrive in all sorts