RTTNews | Jul 21, 2021 08:01AM EDT

08:00 Wednesday, July 21, 2021 (RTTNews.com) - Shares of Healthcare Services Group, Inc. (HCSG) are down more than 5% in pre-market on Wednesday following second-quarter results.

Healthcare Services Group provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals.

The company reported net income of $9.57 million, or $0.13 per share in the second quarter, lower than $23.1 million or $0.31 per share in the same quarter a year ago.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share in the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter decreased to $398.17 million from $452.03 million last year. The consensus estimate was for $407.46 million.

The temporary adjustments with the company's largest customer, Genesis Healthcare to modify pricing through December 2021 and payment terms through December 2022, have negatively impacted the Healthcare Services' revenue and earnings in the second quarter, the company said.

Looking forward, the company expects more than $12.5 million revenue growth in the third quarter, consisting primarily of new dining & nutrition service agreements with existing housekeeping & laundry customers.

Healthcare Services 's Board declared a quarterly dividend of $0.20875 per share, payable on September 24, to shareholders of record on August 20.

HCSG closed Tuesday's trade at $30.72, up 0.89%. The stock is currently at $29.05.

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