Healthcare Services (HCSG) 15 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to the Healthcare Services Group 2022 Annual Earnings Call. [Operator Instructions].

The matters discussed on today's conference call include forward statements about the business prospects of Healthcare Services Group, Inc.

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. future based our that perceptions appropriate industry trends, conditions, are in have of under statements factors current of other light experience expected these forward-looking circumstances. on believe we assumptions made historical that The we and are developments, and our

of As projection anticipated as could results differ they from those or factors are uncertainty statements susceptible to various actual with changes Group, in forward-looking result not Inc. these the any in a forward-looking of and guarantees circumstances. forecast, statements inherently Healthcare and Services materially are performances.

the could in and and filings with in factors forward-looking Some prior earnings results Exchange of projected recent in our Commission. included are issued that call our to from materially this Securities differ statements those the press future or results release cause to

We obligation are a information, update otherwise. any or whether obligation of the disclaim subsequent such to expressly as forward-looking changes, new statements, or result under alter and events no

like to over I CEO. to Now and President turn would Wahl, Ted call the

everyone. good joining you today. Thank us you, appreciate I Matt and and morning,

results revenue morning net of We the million. fourth and share quarter by $XX.X of months or provided for We operations of XX, our the the million, $XX.X this released week. reported filing and plan December three $X.XX per ended of XX-K our $XXX by XXXX, on end million income cash flow

capital, a inorganic value invest our accelerate announced of flexibility, opportunities balanced of We to our rebalancing part to as managing allocation and creation. and also and enhance strategy. disciplined capital organic in financial To approach

X.X the and the suspended our quarterly common repurchase stock. Directors dividend such, As of of the of to up shares Board authorized million has cash

Matt strategy outlook. discuss for remarks, capital for Q&A. opening results, a accomplishments, discussion our our time detailed to the QX I be after I'll XXXX our and QX on will call rebalanced our over which available turn in more Today, will our then allocation

our with model of client business historical of bill operating of XXXX of and in collecting our which year and with our as cost a goal growing perseverance future XXXX. underscore QX achieved our pleased of we the our of results, QX we with the people goal We our continued exiting I'm challenging resilience in and head passion of services XX% have pipeline in partners then a line what target environment.

these they the proposition, Although these of resilience, value accomplishments. underscore together to the relationships each of of client business, of each I why our achievements aspects highway our each is and our business relate our strength put and stock in different enhanced which

like service and model scalability foundational completion highlight I'd The is This the our durability client outcome achievement, which our to of the first is of initiative. of partnerships. XXXX of our was the to massive accomplishment agreement a modification company-wide business

was relation extraordinary customer-related the this purpose well contractually many effort and initiative recall, bottoms you of of a labor collaboration. all significant This As half would by account labor client basis. deck of the more experienced adjust future of the the on hands during required of inflation XXXX, the and as inflation levels for as second was for very up to that on definition real-time client internal of

exiting initiatives our historical Today, is with achieved of line the with pleased work complete, for in report the I services and goal modification taken of to contract our am we cost of target that XX%. year

strong of well industry translate, XXXX. positive providing what validating accomplishment does is be of as this was although into a and in significant not a foundation the we to highlight that overall strategy collecting challenge landscape, what in collection our the of momentum to QX was bill collection continues met quarter like I'd accomplishment further goal and state year. one as what heading a strongest quarter cash our we our And second The

made we progress significant during the highlight notably to QX. second mostly our of in new replenishing during but the XXXX pipeline business like half I'd Lastly,

as remain would the [technical half As pandemic the time first throughout of many and for for you services high our XXXX. but recall, first we the and of the again through once difficulty], overall interest demand levels

to consistently prospect further ability overall a use partners open financial was let issues, scale type at opportunities, little any of business our and accurately extremely accessing However, and the considerations. clinical develop health limited facility asset of of potential and new challenges

pipeline months, of XXXX. Over replenishment of although of highly meaningfully business is diminished, new heading once into our a have and factors limiting has the And qualified the remained the those pipeline six timing we again encouraging. ongoing opportunities has dynamic, growing

on over and like to strategy. and And capital to total been objectives, Board support growth dividend on our strategy creating strategy operational The many years by the shareholders our the Board important an company's for our that reviews our period. the regularly for allocation discussion comprehensive time location returns on a of to on ensure has outlook. value allocation to move I'd dividends Now positive delivering on part shareholder rebalanced near-term capital impact recognizes capital

the recovery, coming But look and clear planning macroeconomic process shareholder future, ongoing as into through strategic especially challenges was ways years. lasting to maximize our value liquidity proactive, strong in given and are we as a the it they impactful and position work the more prolonged industry

accelerate allocation repurchases. financial allocation to opportunities spent is and framework flexibility and is value inorganic its opportunities to each quarterly The share opportunistic more designed dividend capital organic like enhance rebalanced describe to in new our support drivers, investments Now prioritize growth and growth future creation. these I'd detail the growth in strategy priorities. to capital cash of

and in continue organic drivers in capital by of and priority and enhanced the investment investments investment terms internal future. positioning be land development organic are to will highest to employee be in engagement, experience, talent Sustained R&D and customer allocation. foremost, our growth growth the at further business will and and First residual

allocation increase in inorganic earnings high-quality investment rebounded capacity opportunities our capital growth. Secondly, accelerate framework growth and prioritizes to

smaller market. more our in print. recently, our very developed a have of recall, exploration sector organically extension acquisition many further successful market premium [indiscernible] on done complement plan tuck-in the a past within the EBS to we over but As And of core education of acquisitions would decade you

If early returns pace is organic product, capital be proposition months education market. and and working We inorganic fast value continue active past with in and XX in margin the resonating and our remain our of a similar opportunities of profiles. positive, over as more this highly fragmented to within work pipeline developing the

opportunities investments offerings. our prioritize will emerging to market exploring from alliances service We strategic inorganic also within to in technology adjacent complementary core

dividend our overall repurchase of ways value. suspended shareholder to with authorized up of of Finally, and in return to enduring position, and capital proactive, an The shares keeping and impactful the capital allocation we common as create of the shareholders. Directors depend among tax-efficient a now. our more Opportunism and X.X stock use alternative shipment opportunistic other price million considerations, prioritize way upon to strategy, share liquidity to Board will

I'd turn to Matt, to few on I over the a call Before remarks for outlook like our make XXXX.

to While the industry supply steadily are to we gradual take inflation constraints, workforce related labor but the encouraged availability, continues improving headwinds by chain market trends. and and facilities

clear remains that closely being we prolonged industry not to are monitor confident the continue will industry dynamic towards a path recovery, a one. the on and We

forward our momentum positive business strong and We year ever. remain as this fundamentals this underlying which with a as foundation as entered moving to strong

compliance and have platforms to translated we our project regulatory execution, leadership into KPIs customer our and have systems business team, discipline, training Our management visibility adherence, our our experience, credit nearly for model and and and reduced and ahead. strong the recently position the business and $XXX cash a a liquidity and facility our development securities million million $XXX engagement, employee with opportunity [indiscernible] of lies growth that over marketable learning

for creating closing, XXXX, remain meaningful optimistic in our ahead. industry shareholder year controllables, to the realistic control our owner economy and ability challenges about value in that about in are So the confident we and ongoing the within

results. detailed those to for our the introductory with on comments, So call turn I'll more Matt discussion a QX over

morning, everyone. Thanks, Ted. Good

$XXX Revenue and housekeeping were & for on reported & nutrition & segment and dining respectively. nutrition was X.X%, million at dining & $XXX of Housekeeping respectively. laundry and laundry X.X% segment the revenues million, $XXX margins quarter and million

by a XX.X%. $X.X reserves. million at increase cost included benefit Direct development cost workers' to $X.X part, million services in compensation AR related Direct was in of an favorable loss trends offset, reported or million $XXX.X

opening of goal year with in facing As line historical of with services the his XX%. remarks, our target Ted we met in our positive highlighted

compensation, at SG&A was adjusting SG&A $XX.X was deferred reported million, X.X%. million; actual $XX.X after or in million $X.X for increase the

expect between SG&A X.X% We XXXX to X.X%.

of The XXXX. XXXX quarter year effective tax fourth and XX%. tax expects to for a the XX% XX.X% rate XX.X% full was rate The the for company of

second payment. from the operations $X.X million decrease for was of $XX.X accrued Cash for impact the million, the of was half, flow XX including the million impacted quarter was or days. $XX.X DSO and FICA in a payroll, by the deferred quarter

we the the only six year. is accrual in payroll QX to had the during the that XX and corresponding that impact through out out payroll the to point days the the in QX but period, days full would we ultimately and XXXX washes timing Also days compares relates X

opening So remarks, open those up for we'd like questions. the now call with to

the Dodge comes Your from first line question Sean Capital RBC Instructions] of [Operator with Markets.

congratulations and the strong fourth morning - and year good strong strong quarter. on and Thanks quarter fourth

Can sense contributing sounds pursuing how on only us and think months some the of - - mentioned still it's market. you're you in it education. Ted, rebalanced education like allocation that opportunities, now? XX and like So early know revenue you strategy, inorganic I give a said, potentially capital I much specifically exploring you

how SNFs? long-term. what versus market less contrast be think big that maybe think and is the then seems you next for historically over in of probably compare in And couple that maybe where you? generated end And education the [SNF] the it in margins do be And could you education like it you've versus the challenged then could structurally years market

first believe us, makes it's exploration, highlighted, so. stage, an than to revenue. that the months commit we'll opportunity to question, of sense and terms less we do around that. beyond and think than Currently, Certainly, it's clearly, in, it's still further you really I we're it X% share less warrants but XX for your specifics that, further of when in of the Sean, we're more and to pilot willing

possibility positive. to really lot and efforts XX/X the of purpose concentrating be we're about again, of think when players And kind where space. a very and really our private about really we're of more continue independent you our the optimistic - that in within niche returns the school vision and the It values, the future. provides mindset, But big

a perspective, as address think we what think greater that question, So our market. core not in great, than have I if just to I it's from possibility

number look you the of the at When of offering. be services types we would for candidates

as of terms facility attractive profile, work of janitorial is certainly well management, working our offerings the it well profile custodial as the part type in of other the capital components i.e., The product as other and similar - as margin dining. business,

an as it and are excited future. view those really we about opportunity So the in possibilities

then accelerated the to a great. to authorization, of to share you a Okay repurchase us can unfold? sense on give how there opportunistic plan expect more do And buyback? something of Is the or just of bit little gradual is be or kind a this going just that you

of - at our year. opportunism. factors to in least thinking in clearly mentioned any items is my it's position terms liquidity given - creep we're price. look to like which determine it We'll be of really in expected share different not dilution determined our cash our remarks share rates going and by of via free the of going Yes, flow, I opening be And it variety a

capital vis-a-vis of And what's of use alternate highest course, use analysis. the best and

look to with committed holistically, being at that opportunistic going we're but So forward. - going it to we're

Okay, thanks again.

Sean. you, Thank

comes question the Tao Stifel. Qiu with line of next from Your

guys. Hi, morning, good

around So in Could like of [ph] there? home future the I'd dissipating. pipeline. is? idea about XXXX. I side. nursing into heading the to provide talk Could on of kind color client give development you sounds you. you constraints platform you the - comments you like the focus think hear the of any of growth recent any some pipeline on opportunity It the large partners an Thank how us set what's didn't are and leadership terms

XX% calculations, than are absolutely are remains only glad massive you and because long-term care We currently so Tao, outsourcing. play services. The and opportunity they're we that our the think services no whom housekeeping I'm opportunity that space to about or by Yes, to within market, make outsourcing, in are continuing committed dining post-acute is being XX% facilities and nutrition less there. the about core defining question, XX,XXX asked laundry and of mistake,

our considerations, runway top that that business retaining line saying, remain may So market certainly business. everyone of core only but the to that significant considerations new to respect much and very existing we reminding opportunity in but with that it's revenue worth space, committed go exists not this without include also additions,

to that's remain certainly for that nimble our we remain if the of we've it's whether distressed cavalier sometimes uncooperative best client, of and We company, certainly ownership own the execute and the or industry business recovery an course the business, And change. fact not or about ability makes operationally bullish leaving operator if is a that always about administrator or result exiting the allowed while or sense. though action

course business the this offset completion contract kicking that in, to benefit will said as related having So, for of revenue get by QX, well of sequential normal range. modification of the bit We'll flat be price increases $XXX would looking as facility a but type that exits the from to relatively It's exit. $XXX anticipate exercise be in by revenue. forward we'd million likely that essentially allowing projecting million new

certainly we're to anticipating quite very add earnest cultivation facility pipeline, are our further growing committed not to and much while enough of So, the and QX. that pipeline onboard that is in in new mature robust we're

So would occur on new on-boarding but facilities development and in QX. Tao focus growth likely to resume we'll meaningful our more beyond to positioning way posture, to management ourselves a continue

the And housekeeping? AR down $X.X you some you into of and Got could on understood. dining just increase that point clarification break million kind reserve, in

Tao, of irrespective customer-driven we typically, at based it's AR customer And that Yes, not it. it and of specific are is bad reserves more don't The debt information - services. driven. is have how that's look service than more off the calculated we each available.

is it spread clients or is a multiple So concentrating across few? it out

It's driven. that's really And spread across multiple clients.

buckets and If qualitative you quantitative analysis really was that's as introduced has aging recall, off a based it bad would CECL approach aging. specific pre-CECL, I there was - customer a describe review. of highly debt what approach taken towards and highly

and pre-XXXX conducted, that. it's pre-XXXX, just year different So required say, - we're had we're it's that been to or the two, guidance than obviously it but accounting doing

helpful, thank you. That's

Thank you, Tao.

Your the question Wittmann Baird. from comes next of line with Andy

I to workers' sorry guys bit having injuries noise here. thanks your dig guess $X.X Great, back want years? do I benefit is from trending for the a million thing, there's have number accounting of no doubt actuarial on annually that the little that the suspect comp. understand downwards about employees just background good some in is Certainly, a that. But this that here. I to the to guys review I look a wanted you

you our majority and majority have trends that - it yes, would a Andy, experience of actuarial related as well that's there? the that right. moment. I'm related vast of the was - it off XXXX right of you XXXX of that That's where benefit majority to benefit the majority the review - are sorry. portion and for of of It XXXX, you're We for a But lost and and for related claims to. annual but as based

Okay, here. sorry noise background about the

reserves, can can is on for know, qualitative overall thank quantitative. AR us CECL you getting assessment the your fees Ted, since you about reduced? more about, and I don't Just just What the you that maybe tell clarifying talk

performance one? this things of all of portfolio, of unpredictable, you've to obviously here I back They've AR kind - blemishes. gone are you working feeling where these had the through just you customers, are of after kind you've And couple but on up talked just I some years mean, XXXX? your on about a know more are whole I the always 'XX And how better

the always through the half I industry of recovery, but Well, the we to It's to say. year, never difficult improving But It's steadily on. in collect easy more been think a is in challenges towards going expect bill, XXXX, we what industry its the as execute recovered. positive trend terms right? of look, first would it's ongoing not prolonged, and still on clear recovery, it's easy is to but

- heightened on election geared you always But up we're where in compare experienced three, quarters had if have one So, New environment. in place bill been, into the collecting really optimistic it year Year. this to but We heading is, we our $XX and sense our as last in particular, QX. still we're took what our strong all challenging through that a where in momentum we're we do shortfall million we have

experience was the success in our did XXXX, driven an by QX. QX which add it, - only we quarter benefit softer end better Andy, improving would continued that collection expecting quarter said, QX tension, of the where we're that historically been have coupled previous a has collection having we're I a bit with continued environment. in That strategy, its our with year or the always largely than preceding

we've had million half $XX into that - $XX that more And success the notes. promissory the referenced of majority of I organizing in than million

that a So will be to well relative XXXX collections. - as tailwind

thanks guys. great right, All

Andy. you, Thank

question Suisse. from A.J. Rice Credit next Your of the comes line with

Hi at everybody. us I the that on Maybe contract modification, is the this increase or point? realized could you've roughly a anticipate if you that X January what couple price - of price questions, just remind

in sense right? the facility of date difficult previously, that, real the upon increases considerations. described with very of bottoms as board of a we variety an Yes, kind of exercise It to based the increase this wasn't the the specific customer-by-customer specified and amount. quantify much along A.J., It was up sort timing, across certain also that a, was,

as We a so, of of in sort results running half A.J., of too specific to we increases. any the as more of near give meaningful QX a, talked get moving number about certainly back some But year. earnest effect of much those the the the to the to negotiations target through in

lot a commentary. it's of QX Okay. helpful so to on down I income parts revenue. the appreciate moving that statement, are comments going get There the the

out comp the had the income AR, of some in side called incremental $X.X million accrual? of, million you've $X.X also workers' operating of - You obviously,

Any would number give items sense you your quarter as of comments items. where would guess, of sort us - normalized for these that you rate unusual that even, margin quarter the for operating arrange income us for have run or ex give the about first just can fourth these first the for of normalize I been quarter

exited of AR-related well, Yes, CECL significant fourth I XXXX, with unpredictable. year. QX alluded the a maybe Last or we're that most past the That's had you XXXX, both in looking just actually what pickup XX% prospectively two bit entering as at we two of run with we point more year and we cost QX. being, built QX We really A.J., it think in $X,XXX variable reserves. our services, our quarters, rate I to, illustratively out past - quarters, of the collected a under CECL. XXXX

And in million we an $X.X charge. QX had XXXX, of

a, would past even collection out CECL we indicator performance. it's what collecting So, bill expect let's of that know future more that normalizes experience do it's based that our the of say, sense collection expected more into than as a rather category. way performance we off to I in the lagging works, a

get expecting XXXX, we're as certainly collection much with that So XXXX, into I more that's we expense what I Andy, and predictable. to expect in and think normalize to as better bad our CECL alluded experience we would debt become

with some is, up I particularly the you've generally and nursing Okay. how a it's you further I - occupancy sense of you pace things sort where know of customer given comments underlying of made homes. step-ups? you've in the think stepped base, traditionally, and know improving about

lines? any as as update? you along therefore, your on And comment customers level food well underlying availability inflation labor update any anything the about to hourly those have you Do at and to

occupancy XX.X%, from are the look, industry most the and occupancy sits today - at are data perspective. recent which guess that suggesting A.J., the overall, data The Yes national I encouraging what higher was points higher than when spoke what last months ago X.X X.X% than slow and three steady we about when an improvement it and so, we there. reported was is it February

know ask interplay the occupancy key than on remain recovery as I'll - significant. to staffing touch anyone, the better more labor but Matt and side, is two and - availability Clearly between the really you to those Matt

labor it's environment labor - as environment. So overall no that the surprise the

slowly improving force a been some difficult driving and seen remains front. of that to encouraging historical the has it relative we've census and challenging trends certainly it Although perspective, recent is on behind the

to situation levels high final staffing remains A.J., the on providers industry, hiring then of components nearly even where has staffing a just your certainly staff XXXX. midpoint in was half and them of question there two report market, significant overwhelmingly challenges. and of to the reported shortages And last the within of difficulty moderate There general, the recent address labor deteriorated that since year survey

or that nots, third the what obstacle hiring interested frame. the candidates, time of had So - that a reported of about but is and better during indicating overall have qualified have of respondents workforce remains operators that theme a those are of biggest and lack situation gotten the

to So in dramatically the while XXXX. slowed industry, of wages X.X% nursing rise the increases in those home from continue has fairly X.X% XXXX pace to in

industry we employees though in than So wage retaining Services as is better and Group continue to a hiring increases the company, experience our challenges, rate and see modestly averages. Healthcare managing

encouraging So labor speaking, so that's differences story improvement. seeing but employees, But front. challenges, trends same-store we positive our 'XX there's an a versus of of a summary, And and number basis, in generally market-to-market. the net on improvement increasing ongoing ongoing and were similar in certainly 'XX on we're notable

And increase was QX food of QX both spend overall the items then was so quarter for what environment, the X.X% compares of your And in inflationary sort just to at X.X% that X.X% for respect since favorably XXXX. in final CPI QX context, More a specifically, all question that and was X.X% there for QX you was with to the that recall improvement QX. for XXXX lowest might to inflation of there. was and home

average as eye bit, spoke in modest that. nursing keep context, that on for wage And an on we'll a inflation in certainly for continues COVID annual wage that it facilities, was five in the care QX preceding we inflation even maybe residential further X.X% again, saw was the specifically and to down annually. X% And then whether but improvement directionally, around the we that's years wage some So well, just there the inflation X.X%, QX. from and

seen and then since substantial increases in certainly X.X% in we've X.X% in XXXX, And XXXX with XXXX. X%

clearly, best our requisite have the the our to the and customers we various get capture state-based out capture better lobby costs. agencies noted all to reimbursement to gone doing increases above been So have to way better of of increases those their specifically

So improvement I summarize. how directional is of would sort

And gave I stick to A.J., and the XXXX. to adjustment one last would trend on add he underscore of labor inflationary final would only Matt's the then trends thing, that remarks, - be the side, and hockey XXXX kind where between the

achievements underscore of to more our our clients, now Just the the modification more time majority actual reflective labor a one of kind significant of was contract that's experience. of much how and initiative the adjustment conclusion data-driven for mechanical having

underscores That's we to what and information further the a shared - company for big served including the achievement. contractually what opposed but well the just reason up - just why. to I XXXX required, so Matt think as decades, And Matt's

lot. a thanks great, Okay

Thank you, A.J.

comes [Jack Your next question from William with Malik] Blair.

And taking for my the nice congrats thanks on hi Yes, question. here? quarter

Thank you.

a better XXXX? respect margins - in flexible Thank strategy, With least quick opportunities more or help allocation or for near-term in other growth instances drive tech, what of could are investments at capital wins adhering that for you any sort to tuck-in you. investments

growth a some higher to continue know to on wanted that a great I in of it these it's it in touched And but part prepared I remarks, and And the internal organic No, be of obviously I but at of increased level organic emphasize investment we'll the sustained as making to and earlier some investments, growth in question, investments again priority. of questions. Matt answer an cases, one the highest mentioned be drivers.

EVS have market, XX% again, and using market, within is in - grow years. the opportunity long with about come. with demographic think the to pipeline the over certainly, many than you the we're and beyond, the and position, optimistic past that company, how third-party growing in trends the it's core strong easy dining less market-leading our than of forget to than year to in a business contract few we when be challenges - ahead we're years going our and light that XX% But ever more the less for in to untapped But core runway the able our and

the But the I customer development more internal environment. way and level initiative leadership And terms from certainly, and mentioned resident a around our competitive in investments, level been what all investments this in to and almost fiercely engagement, resident preparing will coming of I moon-shot I launch ever mentioned customer would today those employees. employee experience, we're and talent consider important type than in the it's continue months. associate labor through like experience

not Brand environment. this stakeholders We think it's from customers stakeholders, be future. that labor the and into customer, our well further just our but is positioning us experience internal really going to external and transformational the in another to as view, one, resident for of competitive again, ultimate the much our differentiate increasingly critical - in

that a going what to moving neutral strength. we're today core a describe I be company So from as would to more

a as playbook. hear big rewrite R&D, point things be about COVID us innovation in emphasis then talk us and you will exploring, a for don't we post future the - we're where lot And that of invention other but of the and

on few transparent examples platform a of integrated creates think client right that have we I an partners. client and side, the underway between us and now portal, our R&D a which

programs underway. type pilot have central kitchen We

We're of robotics more EVS in and in way both a also exploring dining. intentional type

And course, just we in our enhance talked and opportunities the So tapping business. future. we're items in the in into call, more super that inorganic to that tapping about what power, of intention and again, central all I the leveraging further business our to And these i.e., believe like those - on resilience are going - already organizational future. an is with the of

had more that buybacks above, obviously, past, we've what some are it then and strategy we so, but in are inorganic the that the tell highly In I to excited opportunity you. holistic all of can attractive light, opportunistic bring than to

the there, color thank you. all appreciate Great,

from Jefferies. Your comes Tanquilut with Brian question next

[Tazzi] question. you, Thank is taking my for on This for Brian.

go to want commentary. back start, the I to to just gross margin So

X%. down brought cost than You more by

just So that comp And can the workers' - other sustainability margin I favorable drove out levers gross operating in but you reserves, discuss know comment can of AR you and you that change? any called curious, the current environment? that

see benefit. inflation was the to ultimately, full Well, Matt the modification lever but we which I cost the ongoing trends are the work, related reflected of did, contract XX% line We think that it benefit run service exit saw highlighted, we completion target. of ultimate The in of. didn't historical with the be that of year will But labor positive incremental the QX. modest fact, some full with rate in of run rate in that the

that, think is is annually, let's actuarial trends Beyond depending - on review, and how insurance which you'd there where we're and call see property the - some, our I casualty variability it, an trending in business enough talk from today, to we perspective. management business. It's obviously, as claims quarter-to-quarter, about sit this don't that. But execute difficult day-to-day execution, it's on we a here the -

our be would services to our with thereof in that So relative the or impact line that one budgets. lack potential success factor managing could

prospect is CECL, historical I other be off based - about performance. which The spoke would which earlier, rather than

good conviction otherwise, perspective, some it that an from have So heading we're business underlying a that place we into variability But well. XXXX. in could had as to

maybe know And and we in in that's bit and year? throughout size that just hires Can trended what the me. the you guess, of kind I labor a of how improvement just like about I more terms year. net one question QX, talked from looks Great. like had throughout quite this

to board fill QX, have saw but from to Yes, importantly, specifically employees, data them as to positions, relates as hire appropriately. current employees. And those trends train ability improved we a just respect our just then retain we directional don't perspective, to across our to to certainly vacant the with it

lot put our it. a between So certainly into leveraged - supporting field-based representatives. we technology of Pennsylvania, significant resources our in office We've partnership here home

offering progress, the effect to the So flexibility trickle-down receiving certainly, has that applicants significant staff, management there to - folks facilities that and in to number deliver retain employees really level, required. appropriately were into services the ability our as a to our of we facility

Thank you.

Wahl. Ted the now questions. I turn further There to are back no will call

great. call continue excellence Thank adherence, imperative with Angela, adding goal execution the our you, operational growth of delivering our cash hosting be goal and our to year business for customer on In of budget focus what well, today. bill of will experience, we regulatory discipline, with with the operational pipeline goal Okay opportunistically growing day-to-day systems ahead, on our of future and client collections collecting from compliance the and new of partners. the

We're value. allocation to proactive, create ways excited more enduring rebalanced prioritizes which impactful shareholder our strategy, about and capital

but over not best drivers, growth accelerate opportunistic share Our opportunities deliver future in the creation, investments importantly, organic position growth company long-term. repurchases profitable sustainable, and inorganic value most will the growth to only

So of on, call. you the joining behalf of thank for again Matt and at Services Group, us all Healthcare

call. today's This concludes

disconnect. may You now