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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Pennsylvania
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23-2018365
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(State or other jurisdiction of
incorporated or organization)
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(IRS Employer Identification No.)
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3220 Tillman Drive, Suite 300, Bensalem, PA
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19020
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(Address of principal executive offices)
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(Zip Code)
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Common Stock ($.01 par value)
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The NASDAQ Global Select Market
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Title of Class
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Name of each exchange on which securities registered
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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(Do not check if a smaller reporting company)
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PART I
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PART II
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PART III
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PART IV
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CEO & President/Chief Operating Officer
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å
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Executive Vice President & Senior Vice President
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å
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Divisional Vice President
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(10 Divisions)
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å
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Regional Vice President/Manager and Director
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(77 Regions)
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å
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District Manager
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(401 Districts)
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å
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Training Manager/Facility Manager and
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Assistant Facility Manager
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•
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the ability to retain a substantial number of Platinum's existing clients;
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•
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the unanticipated or excessive diversion of management's resources;
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•
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the integration of new operations and personnel and the disruption of, or the loss of momentum in, ongoing operations;
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•
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the failure to achieve expected financial results;
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•
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the inability to implement effective internal controls, procedures and policies for Platinum as required by the Sarbanes-Oxley Act of 2002 within the time periods prescribed thereby;
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•
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the inability to successfully integrate Platinum in a manner that permits us to achieve the full revenue and other benefits anticipated to result from our acquisition of its assets; and
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•
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the potential unknown liabilities and unforeseen incurred expenses or delays associated with the acquisition.
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2014
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||||||
Quarter Ended
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High
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Low
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||||
March 31, 2014
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$
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29.14
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$
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24.40
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June 30, 2014
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$
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30.58
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$
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28.12
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September 30, 2014
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$
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30.69
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$
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25.51
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December 31, 2014
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$
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31.96
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$
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26.54
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2013
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Quarter Ended
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High
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Low
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March 31, 2013
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$
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25.84
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$
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22.40
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June 30, 2013
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$
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25.95
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$
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21.60
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September 30, 2013
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$
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26.54
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$
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23.61
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December 31, 2013
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$
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29.53
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$
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24.80
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Quarter Ended
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March 31, 2014
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June 30, 2014
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September 30, 2014
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December 31, 2014
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Cash dividend per common share
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$
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0.17125
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$
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0.17250
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$
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0.17375
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$
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0.17500
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Total cash dividends paid
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$
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12,077,000
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$
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12,186,000
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$
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12,335,000
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$
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12,479,000
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Record date
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February 21, 2014
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May 23, 2014
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August 22, 2014
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November 21, 2014
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Payment date
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March 28, 2014
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June 27, 2014
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September 26, 2014
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December 26, 2014
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December 31,
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Company/Index
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2009
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2010
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2011
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2012
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2013
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2014
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Healthcare Services Group, Inc. ("HCSG")
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$
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100.00
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$
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118.35
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$
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133.62
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$
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180.83
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$
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226.98
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$
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253.57
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S&P 500
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$
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100.00
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$
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115.06
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$
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117.49
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$
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136.30
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$
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180.44
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$
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205.14
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S&P Health Care Distributors
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$
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100.00
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$
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119.43
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$
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130.63
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$
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152.53
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$
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250.11
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$
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317.69
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Years Ended December 31,
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2014
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2013
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2012
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2011
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2010
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(in thousands, except per share amounts)
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Selected Operating Results
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Revenues
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$
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1,293,183
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$
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1,149,890
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$
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1,077,435
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$
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889,065
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$
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773,956
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Net income
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$
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21,850
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$
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47,129
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$
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44,214
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$
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38,156
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$
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34,441
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Basic earnings per common share
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$
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0.31
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$
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0.68
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$
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0.65
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$
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0.57
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$
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0.52
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Diluted earnings per common share
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$
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0.31
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$
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0.67
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$
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0.65
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$
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0.56
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$
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0.51
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Selected Balance Sheet Date
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Total assets
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$
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469,579
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$
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425,342
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$
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331,183
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$
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289,695
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$
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277,934
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Stockholders’ equity
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$
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275,830
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$
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285,143
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$
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229,570
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$
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217,726
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$
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213,079
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Selected Other Financial Data
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Working capital
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$
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216,869
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$
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210,089
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$
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200,182
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$
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186,734
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$
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181,244
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Cash dividends per common share
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$
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0.69
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$
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0.67
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$
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0.65
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$
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0.63
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$
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0.60
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Weighted average number of common shares outstanding - basic EPS
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70,616
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69,206
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67,511
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66,637
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65,917
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Weighted average number of common shares outstanding - diluted EPS
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71,341
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70,045
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68,485
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67,585
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67,008
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Relation to Consolidated Revenues
Years Ended December 31, |
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2014
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2013
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2012
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Revenues
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100.0
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%
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100.0
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%
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100.0
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%
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Operating costs and expenses:
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Costs of services provided
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89.3
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%
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86.5
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%
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86.4
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%
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Selling, general and administrative
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8.3
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%
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8.0
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%
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7.4
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%
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Investment and interest income
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0.1
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%
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0.3
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%
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0.3
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%
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Income before income taxes
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2.5
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%
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5.8
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%
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6.5
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%
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Income taxes
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0.8
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%
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1.7
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%
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2.4
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%
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Net income
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1.7
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%
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4.1
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%
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4.1
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%
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Reportable Segments — For the Year Ended December 31, 2014
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Housekeeping
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Dietary
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|||||||||||||||
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Consolidated
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% Change
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Corporate and
Eliminations |
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Amount
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% Change
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Amount
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% Change
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|||||||||||
Revenues
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$
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1,293,183,000
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12.5
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%
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$
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—
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$
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846,610,000
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11.5
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%
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$
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446,573,000
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14.3
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%
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Cost of services provided
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1,155,293,000
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16.1
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(41,157,000
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)
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776,220,000
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12.5
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420,230,000
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13.7
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Selling, general and administrative
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107,810,000
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17.2
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107,810,000
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—
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—
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—
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|
—
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Investment and interest income
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1,628,000
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(56.0
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)
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|
1,628,000
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—
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—
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—
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—
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Income before income taxes
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$
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31,708,000
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(52.3
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)%
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$
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(65,025,000
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)
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$
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70,390,000
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2.2
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%
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$
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26,343,000
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24.0
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%
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Reportable Segments — For the Year Ended December 31, 2013
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||||||||||||||
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Consolidated
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Corporate & Eliminations
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Housekeeping
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Dietary
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||||||||
Revenues
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$
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1,149,890,000
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|
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$
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—
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$
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759,093,000
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|
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$
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390,797,000
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|
Cost of services provided
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995,104,000
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|
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(64,670,000
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)
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|
690,221,000
|
|
|
369,553,000
|
|
||||
Selling, general and administrative
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91,998,000
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|
|
91,998,000
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|
|
—
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|
|
—
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||||
Investment and interest income
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3,701,000
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|
3,701,000
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|
|
—
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|
|
—
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||||
Income before income taxes
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$
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66,489,000
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$
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(23,627,000
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)
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$
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68,872,000
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$
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21,244,000
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Cost of Services Provided-Key Indicators as % of Consolidated Revenue
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2014 %
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2013 %
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% Change
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Bad debt provision
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0.3
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|
0.2
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|
0.1
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Workers’ compensation and general liability insurance
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5.5
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|
3.2
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2.3
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Cost of Services Provided-Key Indicators as % of Segment Revenue
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2014 %
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|
2013 %
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% Change
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Housekeeping labor and other labor costs
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81.0
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|
80.4
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|
0.6
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Housekeeping supplies
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8.2
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|
8.0
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|
0.2
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Dietary labor and other labor costs
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51.0
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|
51.8
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(0.8)
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Dietary supplies
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40.7
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|
39.9
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|
0.8
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|
Year Ended December 31,
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|||||||||
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2014
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|
2013
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% Change
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|||||
Selling, general and administrative expense w/o deferred compensation change (a)
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$
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106,599,000
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$
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88,993,000
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|
19.8
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%
|
Deferred compensation fund gain
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1,211,000
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|
3,005,000
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(59.7
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)%
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Consolidated selling, general and administrative expense (b)
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$
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107,810,000
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|
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$
|
91,998,000
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|
17.2
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%
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(a)
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Selling, general and administrative expense excluding the change in the market value of the deferred compensation fund.
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(b)
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Consolidated selling, general and administrative expense reported for the period presented.
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|
Reportable Segments — For the Year Ended December 31, 2013
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|||||||||||||||||||||||
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|
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|
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|
Housekeeping
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Dietary
|
|||||||||||||||
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Consolidated
|
|
% Change
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|
Corporate and
Eliminations |
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Amount
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|
% Change
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|
Amount
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|
% Change
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|||||||||||
Revenues
|
$
|
1,149,890,000
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|
|
6.7
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%
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|
$
|
—
|
|
|
$
|
759,093,000
|
|
|
2.9
|
%
|
|
$
|
390,797,000
|
|
|
15.0
|
%
|
Cost of services provided
|
995,104,000
|
|
|
6.9
|
|
|
(64,670,000
|
)
|
|
690,221,000
|
|
|
3.3
|
|
|
369,553,000
|
|
|
15.0
|
|
||||
Selling, general and administrative
|
91,998,000
|
|
|
16.0
|
|
|
91,998,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Investment and interest income
|
3,701,000
|
|
|
26.7
|
|
|
3,701,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income before income taxes
|
$
|
66,489,000
|
|
|
(5.4
|
)%
|
|
$
|
(23,627,000
|
)
|
|
$
|
68,872,000
|
|
|
(0.8
|
)%
|
|
$
|
21,244,000
|
|
|
15.0
|
%
|
|
Reportable Segments — For the Year Ended December 31, 2012
|
||||||||||||||
|
Consolidated
|
|
Corporate & Eliminations
|
|
Housekeeping
|
|
Dietary
|
||||||||
Revenues
|
$
|
1,077,435,000
|
|
|
$
|
173,000
|
|
|
$
|
737,407,000
|
|
|
$
|
339,855,000
|
|
Cost of services provided
|
930,814,000
|
|
|
(58,545,000
|
)
|
|
667,978,000
|
|
|
321,381,000
|
|
||||
Selling, general and administrative
|
79,277,000
|
|
|
79,277,000
|
|
|
—
|
|
|
—
|
|
||||
Investment and interest income
|
2,920,000
|
|
|
2,920,000
|
|
|
—
|
|
|
—
|
|
||||
Income before income taxes
|
$
|
70,264,000
|
|
|
$
|
(17,639,000
|
)
|
|
$
|
69,429,000
|
|
|
$
|
18,474,000
|
|
Cost of Services Provided-Key Indicators as % of Consolidated Revenue
|
2013 %
|
|
2012 %
|
|
% Change
|
Bad debt provision
|
0.2
|
|
0.2
|
|
—
|
Workers’ compensation and general liability insurance
|
3.2
|
|
3.4
|
|
(0.2)
|
Cost of Services Provided-Key Indicators as % of Segment Revenue
|
2013 %
|
|
2012 %
|
|
% Change
|
Housekeeping labor and other labor costs
|
80.4
|
|
80.3
|
|
0.1
|
Housekeeping supplies
|
8.0
|
|
7.8
|
|
0.2
|
Dietary labor and other labor costs
|
51.8
|
|
52.3
|
|
(0.5)
|
Dietary supplies
|
39.9
|
|
39.3
|
|
0.6
|
|
Year Ended December 31,
|
|||||||||
|
2013
|
|
2012
|
|
% Change
|
|||||
Selling, general and administrative expense w/o deferred compensation change (a)
|
$
|
88,993,000
|
|
|
$
|
77,559,000
|
|
|
14.7
|
%
|
Deferred compensation fund gain
|
3,005,000
|
|
|
1,718,000
|
|
|
74.9
|
%
|
||
Consolidated selling, general and administrative expense (b)
|
$
|
91,998,000
|
|
|
$
|
79,277,000
|
|
|
16.0
|
%
|
(a)
|
Selling, general and administrative expense excluding the change in the market value of the deferred compensation fund.
|
(b)
|
Consolidated selling, general and administrative expense reported for the period presented.
|
Year Ended
|
Aggregate Account Balances of Clients in Bankruptcy or in/or Pending Collection/Litigation
|
|
Net Write-offs of Client Accounts
|
|
Bad Debt Provision
|
|
Allowance for Doubtful Accounts
|
||||||||
2012
|
$
|
6,273,000
|
|
|
$
|
2,697,000
|
|
|
$
|
2,160,000
|
|
|
$
|
3,970,000
|
|
2013
|
$
|
6,047,000
|
|
|
$
|
2,041,000
|
|
|
$
|
1,990,000
|
|
|
$
|
3,919,000
|
|
2014
|
$
|
14,903,000
|
|
|
$
|
2,253,000
|
|
|
$
|
4,470,000
|
|
|
$
|
6,136,000
|
|
|
Year Ended December 31,
|
||||||||||||
|
2014
|
|
|
|
2013
|
|
2012
|
||||||
Accrued insurance claims - January 1,
|
$
|
26,178,000
|
|
|
|
|
$
|
22,562,000
|
|
|
$
|
17,654,000
|
|
Claim payments
|
(24,879,000
|
)
|
|
|
|
(26,091,000
|
)
|
|
(25,154,000
|
)
|
|||
Reserve accruals:
|
|
|
|
|
|
|
|
||||||
Current year accruals
|
30,642,000
|
|
|
(1)
|
|
19,854,000
|
|
|
18,365,000
|
|
|||
Changes to the provision for prior years
|
36,321,000
|
|
|
(1)
|
|
9,853,000
|
|
|
11,697,000
|
|
|||
Change in accrued insurance claims
|
$
|
42,084,000
|
|
|
|
|
$
|
3,616,000
|
|
|
$
|
4,908,000
|
|
Accrued insurance claims - December 31,
|
$
|
68,262,000
|
|
|
|
|
$
|
26,178,000
|
|
|
$
|
22,562,000
|
|
(1)
|
During 2014, the Company recorded a one-time, non-cash adjustment of
$37,416,000
related to a change in estimate related to a change in reserve methodology through the utilization of a third party actuary. This change in estimate is included in the current year accruals and changes to the provision for prior years captions in the above table.
|
|
Quarter Ended
|
||||||||||||||
|
March 31, 2014
|
|
June 30, 2014
|
|
September 30, 2014
|
|
December 31, 2014
|
||||||||
Cash dividend per common share
|
$
|
0.17125
|
|
|
$
|
0.17250
|
|
|
$
|
0.17375
|
|
|
$
|
0.17500
|
|
Total cash dividends paid
|
$
|
12,077,000
|
|
|
$
|
12,186,000
|
|
|
$
|
12,335,000
|
|
|
$
|
12,479,000
|
|
Record date
|
February 21, 2014
|
|
|
May 23, 2014
|
|
|
August 22, 2014
|
|
|
November 21, 2014
|
|
||||
Payment date
|
March 28, 2014
|
|
|
June 27, 2014
|
|
|
September 26, 2014
|
|
|
December 26, 2014
|
|
|
Payments Due by Period
|
||||||||||||||||||
Year Ending
|
Total
|
|
Less Than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
After 5 Years
|
||||||||||
Operating Lease Obligations
|
$
|
7,422,000
|
|
|
$
|
879,000
|
|
|
$
|
1,372,000
|
|
|
$
|
1,364,000
|
|
|
$
|
3,807,000
|
|
Covenant Description and Requirement
|
Status at December 31, 2014
|
|
Funded debt
(1)
to EBITDA
(2)
ratio: less than 3.00 to 1.00
|
1.14
|
|
(1)
|
All indebtedness for borrowed money, including but not limited to capitalized lease obligations, reimbursement obligations in respect of letters of credit and guaranties of any such indebtedness.
|
(2)
|
Net income plus interest expense plus income tax expense plus depreciation plus amortization plus extraordinary non-recurring losses/gains.
|
|
Page
|
Consolidated Financial Statements
|
|
/s/ GRANT THORNTON LLP
|
|
|
|
New York, New York
|
|
February 19, 2015
|
|
1.
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Company;
|
2.
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
3.
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Daniel P. McCartney
|
|
/s/ John C. Shea
|
Daniel P. McCartney
|
|
John C. Shea
|
Chief Executive Officer
(Principal Executive Officer)
|
|
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
February 19, 2015
|
|
February 19, 2015
|
/s/ GRANT THORNTON LLP
|
|
|
|
New York, New York
|
|
February 19, 2015
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
ASSETS:
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
75,280,000
|
|
|
$
|
64,155,000
|
|
Marketable securities, at fair value
|
11,799,000
|
|
|
11,445,000
|
|
||
Accounts and notes receivable, less allowance for doubtful accounts of $6,136,000 in 2014 and $3,919,000 in 2013
|
198,128,000
|
|
|
189,107,000
|
|
||
Inventories and supplies
|
35,462,000
|
|
|
32,447,000
|
|
||
Deferred income taxes
|
3,455,000
|
|
|
2,339,000
|
|
||
Prepaid income taxes
|
912,000
|
|
|
—
|
|
||
Prepaid expenses and other
|
9,792,000
|
|
|
9,699,000
|
|
||
Total current assets
|
334,828,000
|
|
|
309,192,000
|
|
||
Property and equipment:
|
|
|
|
||||
Laundry and linen equipment installations
|
2,578,000
|
|
|
2,516,000
|
|
||
Housekeeping and office equipment and furniture
|
33,546,000
|
|
|
29,182,000
|
|
||
Autos and trucks
|
232,000
|
|
|
305,000
|
|
||
|
36,356,000
|
|
|
32,003,000
|
|
||
Less accumulated depreciation
|
23,584,000
|
|
|
20,699,000
|
|
||
|
12,772,000
|
|
|
11,304,000
|
|
||
Goodwill
|
44,438,000
|
|
|
40,183,000
|
|
||
Other intangible assets, less accumulated amortization of $16,232,000 in 2014 and $12,909,000 in 2013
|
20,349,000
|
|
|
23,372,000
|
|
||
Notes receivable — long term portion, net of reserve
|
5,179,000
|
|
|
5,779,000
|
|
||
Deferred compensation funding, at fair value
|
24,742,000
|
|
|
22,200,000
|
|
||
Deferred income taxes — long term portion
|
27,233,000
|
|
|
13,274,000
|
|
||
Other noncurrent assets
|
38,000
|
|
|
38,000
|
|
||
Total Assets
|
$
|
469,579,000
|
|
|
$
|
425,342,000
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY:
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
43,554,000
|
|
|
$
|
43,682,000
|
|
Accrued payroll, accrued and withheld payroll taxes
|
47,696,000
|
|
|
37,162,000
|
|
||
Other accrued expenses
|
8,961,000
|
|
|
8,528,000
|
|
||
Income taxes payable
|
—
|
|
|
1,878,000
|
|
||
Accrued insurance claims
|
17,748,000
|
|
|
7,853,000
|
|
||
Total current liabilities
|
117,959,000
|
|
|
99,103,000
|
|
||
Accrued insurance claims — long term portion
|
50,514,000
|
|
|
18,325,000
|
|
||
Deferred compensation liability
|
25,276,000
|
|
|
22,771,000
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY:
|
|
|
|
||||
Common stock, $.01 par value; 100,000,000 shares authorized; 72,878,000 shares issued and outstanding in 2014 and 71,868,000 shares issued and outstanding in 2013
|
729,000
|
|
|
719,000
|
|
||
Additional paid-in capital
|
186,022,000
|
|
|
168,329,000
|
|
||
Retained earnings
|
100,237,000
|
|
|
127,464,000
|
|
||
Accumulated other comprehensive income, net of taxes
|
25,000
|
|
|
49,000
|
|
||
Common stock in treasury, at cost, 1,821,000 shares in 2014 and 1,892,000 shares in 2013
|
(11,183,000
|
)
|
|
(11,418,000
|
)
|
||
Total stockholders’ equity
|
275,830,000
|
|
|
285,143,000
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
469,579,000
|
|
|
$
|
425,342,000
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Revenues
|
$
|
1,293,183,000
|
|
|
$
|
1,149,890,000
|
|
|
$
|
1,077,435,000
|
|
Operating costs and expenses:
|
|
|
|
|
|
||||||
Costs of services provided
|
1,155,293,000
|
|
|
995,104,000
|
|
|
930,814,000
|
|
|||
Selling, general and administrative
|
107,810,000
|
|
|
91,998,000
|
|
|
79,277,000
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Investment and interest
|
1,628,000
|
|
|
3,701,000
|
|
|
2,920,000
|
|
|||
Income before income taxes
|
31,708,000
|
|
|
66,489,000
|
|
|
70,264,000
|
|
|||
Income taxes
|
9,858,000
|
|
|
19,360,000
|
|
|
26,050,000
|
|
|||
Net income
|
$
|
21,850,000
|
|
|
$
|
47,129,000
|
|
|
$
|
44,214,000
|
|
|
|
|
|
|
|
||||||
Per share data:
|
|
|
|
|
|
||||||
Basic earnings per common share
|
$
|
0.31
|
|
|
$
|
0.68
|
|
|
$
|
0.65
|
|
Diluted earnings per common share
|
$
|
0.31
|
|
|
$
|
0.67
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
||||||
Weighted average number of common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
70,616,000
|
|
|
69,206,000
|
|
|
67,511,000
|
|
|||
Diluted
|
71,341,000
|
|
|
70,045,000
|
|
|
68,485,000
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
21,850,000
|
|
|
$
|
47,129,000
|
|
|
$
|
44,214,000
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Unrealized loss on available for sale marketable securities, net of taxes
|
(24,000
|
)
|
|
(78,000
|
)
|
|
(216,000
|
)
|
|||
Total comprehensive income
|
$
|
21,826,000
|
|
|
$
|
47,051,000
|
|
|
$
|
43,998,000
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
21,850,000
|
|
|
$
|
47,129,000
|
|
|
$
|
44,214,000
|
|
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
7,269,000
|
|
|
6,204,000
|
|
|
5,116,000
|
|
|||
Bad debt provision
|
4,470,000
|
|
|
1,990,000
|
|
|
2,160,000
|
|
|||
Deferred income tax benefits
|
(15,059,000
|
)
|
|
(4,922,000
|
)
|
|
(3,493,000
|
)
|
|||
Stock-based compensation expense
|
3,080,000
|
|
|
2,607,000
|
|
|
2,538,000
|
|
|||
Amortization of premium on marketable securities
|
354,000
|
|
|
537,000
|
|
|
654,000
|
|
|||
Unrealized loss on marketable securities
|
—
|
|
|
—
|
|
|
82,000
|
|
|||
Unrealized gain on deferred compensation fund investments
|
(1,216,000
|
)
|
|
(2,820,000
|
)
|
|
(1,871,000
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts and notes receivable
|
(13,492,000
|
)
|
|
(50,879,000
|
)
|
|
(11,634,000
|
)
|
|||
Prepaid income taxes
|
—
|
|
|
—
|
|
|
405,000
|
|
|||
Inventories and supplies
|
(3,015,000
|
)
|
|
(3,772,000
|
)
|
|
(3,531,000
|
)
|
|||
Notes receivable — long term
|
600,000
|
|
|
(3,956,000
|
)
|
|
(340,000
|
)
|
|||
Deferred compensation funding
|
(2,542,000
|
)
|
|
(4,369,000
|
)
|
|
(4,051,000
|
)
|
|||
Accounts payable and other accrued expenses
|
492,000
|
|
|
25,961,000
|
|
|
13,664,000
|
|
|||
Accrued payroll, accrued and withheld payroll taxes
|
11,813,000
|
|
|
6,349,000
|
|
|
6,142,000
|
|
|||
Accrued insurance claims
|
42,084,000
|
|
|
3,616,000
|
|
|
4,908,000
|
|
|||
Deferred compensation liability
|
4,248,000
|
|
|
7,721,000
|
|
|
6,337,000
|
|
|||
Income taxes payable
|
(2,789,000
|
)
|
|
(28,000
|
)
|
|
1,906,000
|
|
|||
Prepaid expenses and other assets
|
(417,000
|
)
|
|
790,000
|
|
|
(2,830,000
|
)
|
|||
Net cash provided by operating activities
|
57,730,000
|
|
|
32,158,000
|
|
|
60,376,000
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Disposals of fixed assets
|
83,000
|
|
|
158,000
|
|
|
26,000
|
|
|||
Additions to property and equipment
|
(5,795,000
|
)
|
|
(3,762,000
|
)
|
|
(3,484,000
|
)
|
|||
Purchases of marketable securities
|
(5,140,000
|
)
|
|
(6,598,000
|
)
|
|
(10,833,000
|
)
|
|||
Sales of marketable securities
|
4,392,000
|
|
|
15,807,000
|
|
|
19,978,000
|
|
|||
Cash paid for acquisition
|
—
|
|
|
(5,000,000
|
)
|
|
—
|
|
|||
Net cash (used in) provided by investing activities
|
(6,460,000
|
)
|
|
605,000
|
|
|
5,687,000
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(49,077,000
|
)
|
|
(46,707,000
|
)
|
|
(44,093,000
|
)
|
|||
Reissuance of treasury stock pursuant to Dividend Reinvestment Plan
|
110,000
|
|
|
107,000
|
|
|
118,000
|
|
|||
Tax benefit from equity compensation plans
|
2,626,000
|
|
|
2,615,000
|
|
|
2,649,000
|
|
|||
Proceeds from the exercise of stock options
|
6,196,000
|
|
|
6,428,000
|
|
|
5,573,000
|
|
|||
Net cash used in financing activities
|
(40,145,000
|
)
|
|
(37,557,000
|
)
|
|
(35,753,000
|
)
|
|||
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
11,125,000
|
|
|
(4,794,000
|
)
|
|
30,310,000
|
|
|||
Cash and cash equivalents at beginning of the period
|
64,155,000
|
|
|
68,949,000
|
|
|
38,639,000
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
75,280,000
|
|
|
$
|
64,155,000
|
|
|
$
|
68,949,000
|
|
|
|
|
|
|
|
||||||
Supplementary Cash Flow Information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
156,000
|
|
|
$
|
4,000
|
|
|
$
|
3,000
|
|
Cash paid for income taxes, net of refunds
|
$
|
25,080,000
|
|
|
$
|
21,694,000
|
|
|
$
|
24,681,000
|
|
|
Years Ended December 31, 2014, 2013 and 2012
|
|||||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Income, net of taxes
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Stockholders’ Equity
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
Balances, December 31, 2011
|
69,473,000
|
|
|
695,000
|
|
|
105,727,000
|
|
|
343,000
|
|
|
126,921,000
|
|
|
(15,960,000
|
)
|
|
217,726,000
|
|
||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income for the period
|
|
|
|
|
|
|
|
|
44,214,000
|
|
|
|
|
44,214,000
|
|
|||||||||||
Unrealized loss on available for sale marketable securities, net of taxes
|
|
|
|
|
|
|
(216,000
|
)
|
|
|
|
|
|
(216,000
|
)
|
|||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
43,998,000
|
|
||||||||||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment
|
563,000
|
|
|
5,000
|
|
|
4,098,000
|
|
|
|
|
|
|
1,470,000
|
|
|
5,573,000
|
|
||||||||
Tax benefit from equity compensation plans
|
|
|
|
|
2,649,000
|
|
|
|
|
|
|
|
|
2,649,000
|
|
|||||||||||
Share-based compensation expense — stock options and restricted stock
|
|
|
|
|
1,897,000
|
|
|
|
|
|
|
|
|
1,897,000
|
|
|||||||||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions
|
|
|
|
|
394,000
|
|
|
|
|
|
|
59,000
|
|
|
453,000
|
|
||||||||||
Shares issued pursuant to Employee Stock Plans
|
|
|
|
|
1,278,000
|
|
|
|
|
|
|
(29,000
|
)
|
|
1,249,000
|
|
||||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
(44,093,000
|
)
|
|
|
|
(44,093,000
|
)
|
|||||||||||
Shares issued pursuant to Dividend Reinvestment Plan
|
|
|
|
|
85,000
|
|
|
|
|
|
|
33,000
|
|
|
118,000
|
|
||||||||||
Shares issued pursuant to prior year acquisition
|
|
|
|
|
(2,633,000
|
)
|
|
|
|
|
|
2,633,000
|
|
|
—
|
|
||||||||||
Balance, December 31, 2012
|
70,036,000
|
|
|
700,000
|
|
|
113,495,000
|
|
|
127,000
|
|
|
127,042,000
|
|
|
(11,794,000
|
)
|
|
229,570,000
|
|
||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income for the period
|
|
|
|
|
|
|
|
|
47,129,000
|
|
|
|
|
47,129,000
|
|
|||||||||||
Unrealized loss on available for sale marketable securities, net of taxes
|
|
|
|
|
|
|
(78,000
|
)
|
|
|
|
|
|
(78,000
|
)
|
|||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
47,051,000
|
|
||||||||||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment
|
617,000
|
|
|
7,000
|
|
|
6,381,000
|
|
|
|
|
|
|
40,000
|
|
|
6,428,000
|
|
||||||||
Tax benefit from equity compensation plans
|
|
|
|
|
2,615,000
|
|
|
|
|
|
|
|
|
2,615,000
|
|
|||||||||||
Share-based compensation expense — stock options and restricted stock
|
|
|
|
|
2,045,000
|
|
|
|
|
|
|
|
|
2,045,000
|
|
|||||||||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions
|
|
|
|
|
294,000
|
|
|
|
|
|
|
66,000
|
|
|
360,000
|
|
||||||||||
Shares issued pursuant to Employee Stock Plans
|
|
|
|
|
1,370,000
|
|
|
|
|
|
|
472,000
|
|
|
1,842,000
|
|
||||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
(46,707,000
|
)
|
|
|
|
(46,707,000
|
)
|
|||||||||||
Shares issued pursuant to Dividend Reinvestment Plan
|
|
|
|
|
309,000
|
|
|
|
|
|
|
(202,000
|
)
|
|
107,000
|
|
||||||||||
Shares issued pursuant to current year acquisition
|
1,215,000
|
|
|
12,000
|
|
|
41,820,000
|
|
|
|
|
|
|
—
|
|
|
41,832,000
|
|
||||||||
Balance, December 31, 2013
|
71,868,000
|
|
|
$
|
719,000
|
|
|
$
|
168,329,000
|
|
|
$
|
49,000
|
|
|
$
|
127,464,000
|
|
|
$
|
(11,418,000
|
)
|
|
$
|
285,143,000
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income for the period
|
|
|
|
|
|
|
|
|
21,850,000
|
|
|
|
|
21,850,000
|
|
|||||||||||
Unrealized loss on available for sale marketable securities, net of taxes
|
|
|
|
|
|
|
(24,000
|
)
|
|
|
|
|
|
(24,000
|
)
|
|||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
21,826,000
|
|
||||||||||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment
|
534,000
|
|
|
5,000
|
|
|
6,191,000
|
|
|
|
|
|
|
|
|
|
6,196,000
|
|
||||||||
Tax benefit from equity compensation plans
|
|
|
|
|
2,626,000
|
|
|
|
|
|
|
|
|
2,626,000
|
|
|||||||||||
Share-based compensation expense — stock options and restricted stock
|
|
|
|
|
2,705,000
|
|
|
|
|
|
|
|
|
2,705,000
|
|
|||||||||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions
|
|
|
|
|
459,000
|
|
|
|
|
|
|
57,000
|
|
|
516,000
|
|
||||||||||
Shares issued pursuant to Employee Stock Plans
|
|
|
|
|
1,457,000
|
|
|
|
|
|
|
394,000
|
|
|
1,851,000
|
|
||||||||||
Cash dividends
|
|
|
|
|
|
|
|
|
(49,077,000
|
)
|
|
|
|
(49,077,000
|
)
|
|||||||||||
Shares issued pursuant to Dividend Reinvestment Plan
|
|
|
|
|
326,000
|
|
|
|
|
|
|
(216,000
|
)
|
|
110,000
|
|
||||||||||
Adjustment to purchase price allocation
|
|
|
|
|
3,934,000
|
|
|
|
|
|
|
|
|
3,934,000
|
|
|||||||||||
Shares issued pursuant to prior year acquisition
|
476,000
|
|
|
5,000
|
|
|
(5,000
|
)
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Balance, December 31, 2014
|
72,878,000
|
|
|
$
|
729,000
|
|
|
$
|
186,022,000
|
|
|
$
|
25,000
|
|
|
$
|
100,237,000
|
|
|
$
|
(11,183,000
|
)
|
|
$
|
275,830,000
|
|
|
Purchase Price Allocation
|
||||||||||
|
Preliminary
|
|
Adjustments
|
|
Final
|
||||||
Fair value of assets acquired, net of liabilities assumed
|
$
|
2,604,000
|
|
|
$
|
(621,000
|
)
|
|
$
|
1,983,000
|
|
Goodwill
|
23,228,000
|
|
|
4,255,000
|
|
|
27,483,000
|
|
|||
Intangible assets
|
21,000,000
|
|
|
300,000
|
|
|
21,300,000
|
|
|||
Net assets acquired
|
$
|
46,832,000
|
|
|
$
|
3,934,000
|
|
|
$
|
50,766,000
|
|
|
Unrealized Gains and Losses on Available for Sale Securities (1)
|
||
Accumulated other comprehensive income — December 31, 2013
|
$
|
49,000
|
|
Other comprehensive income (loss) before reclassifications
|
(16,000
|
)
|
|
Amounts reclassified from accumulated other comprehensive income (2)(3)
|
(8,000
|
)
|
|
Net current period change in other comprehensive income
|
(24,000
|
)
|
|
Accumulated other comprehensive income — December 31, 2014
|
$
|
25,000
|
|
(1)
|
All amounts are net of tax.
|
(2)
|
Realized gains and losses are recorded pre-tax in the other income - investment and interest caption on our consolidated statements of comprehensive income.
|
(3)
|
The Company recorded
$12,000
of realized gains from the sale of available for sale securities. Refer to Note 5 herein for further information.
|
|
Reportable Segments
|
||||||||||
|
Housekeeping
|
|
Dietary
|
|
Total
|
||||||
December 31, 2013
|
$
|
38,122,000
|
|
|
$
|
2,061,000
|
|
|
$
|
40,183,000
|
|
Adjustment to purchase price allocation
|
4,255,000
|
|
|
—
|
|
|
4,255,000
|
|
|||
December 31, 2014
|
$
|
42,377,000
|
|
|
$
|
2,061,000
|
|
|
$
|
44,438,000
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Customer relationships
|
$
|
35,781,000
|
|
|
$
|
35,481,000
|
|
Non-compete agreements
|
800,000
|
|
|
800,000
|
|
||
Total other intangibles, gross
|
36,581,000
|
|
|
36,281,000
|
|
||
Less accumulated amortization
|
16,232,000
|
|
|
12,909,000
|
|
||
Other intangibles, net
|
$
|
20,349,000
|
|
|
$
|
23,372,000
|
|
Period/Year
|
Customer
Relationships |
|
Total
|
||||
2015
|
$
|
3,241,000
|
|
|
$
|
3,241,000
|
|
2016
|
2,698,000
|
|
|
2,698,000
|
|
||
2017
|
2,427,000
|
|
|
2,427,000
|
|
||
2018
|
2,328,000
|
|
|
2,328,000
|
|
||
2019
|
2,130,000
|
|
|
2,130,000
|
|
||
Thereafter
|
7,525,000
|
|
|
7,525,000
|
|
|
As of December 31, 2014
|
||||||||||||||||||
|
|
|
|
|
Fair Value Measurement Using:
|
||||||||||||||
|
Carrying
Amount |
|
Total Fair
Value |
|
Quoted
Prices in Active Markets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal bonds — available for sale
|
$
|
11,799,000
|
|
|
$
|
11,799,000
|
|
|
$
|
—
|
|
|
$
|
11,799,000
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred compensation fund
|
|
|
|
|
|
|
|
|
|
||||||||||
Money Market
|
$
|
4,278,000
|
|
|
$
|
4,278,000
|
|
|
$
|
—
|
|
|
$
|
4,278,000
|
|
|
$
|
—
|
|
Balanced and Lifestyle
|
8,885,000
|
|
|
8,885,000
|
|
|
8,885,000
|
|
|
—
|
|
|
—
|
|
|||||
Large Cap Growth
|
4,856,000
|
|
|
4,856,000
|
|
|
4,856,000
|
|
|
—
|
|
|
—
|
|
|||||
Small Cap Value
|
2,392,000
|
|
|
2,392,000
|
|
|
2,392,000
|
|
|
—
|
|
|
—
|
|
|||||
Fixed Income
|
2,081,000
|
|
|
2,081,000
|
|
|
2,081,000
|
|
|
—
|
|
|
—
|
|
|||||
International
|
1,097,000
|
|
|
1,097,000
|
|
|
1,097,000
|
|
|
—
|
|
|
—
|
|
|||||
Mid Cap Growth
|
1,153,000
|
|
|
1,153,000
|
|
|
1,153,000
|
|
|
—
|
|
|
—
|
|
|||||
Deferred compensation fund
|
$
|
24,742,000
|
|
|
$
|
24,742,000
|
|
|
$
|
20,464,000
|
|
|
$
|
4,278,000
|
|
|
$
|
—
|
|
|
As of December 31, 2013
|
||||||||||||||||||
|
|
|
|
|
Fair Value Measurement Using:
|
||||||||||||||
|
Carrying
Amount |
|
Total Fair
Value |
|
Quoted
Prices in Active Markets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal bonds — available for sale
|
$
|
11,445,000
|
|
|
$
|
11,445,000
|
|
|
$
|
—
|
|
|
$
|
11,445,000
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred compensation fund
|
|
|
|
|
|
|
|
|
|
||||||||||
Money Market
|
$
|
3,592,000
|
|
|
$
|
3,592,000
|
|
|
$
|
—
|
|
|
$
|
3,592,000
|
|
|
$
|
—
|
|
Balanced and Lifestyle
|
8,174,000
|
|
|
8,174,000
|
|
|
8,174,000
|
|
|
—
|
|
|
—
|
|
|||||
Large Cap Growth
|
4,292,000
|
|
|
4,292,000
|
|
|
4,292,000
|
|
|
—
|
|
|
—
|
|
|||||
Small Cap Value
|
2,173,000
|
|
|
2,173,000
|
|
|
2,173,000
|
|
|
—
|
|
|
—
|
|
|||||
Fixed Income
|
1,962,000
|
|
|
1,962,000
|
|
|
1,962,000
|
|
|
—
|
|
|
—
|
|
|||||
International
|
1,079,000
|
|
|
1,079,000
|
|
|
1,079,000
|
|
|
—
|
|
|
—
|
|
|||||
Mid Cap Growth
|
928,000
|
|
|
928,000
|
|
|
928,000
|
|
|
—
|
|
|
—
|
|
|||||
Deferred compensation fund
|
$
|
22,200,000
|
|
|
$
|
22,200,000
|
|
|
$
|
18,608,000
|
|
|
$
|
3,592,000
|
|
|
$
|
—
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Estimated Fair Value
|
|
Other-than-temporary Impairments
|
||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Type of security:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal bonds — available for sale
|
11,758,000
|
|
|
48,000
|
|
|
(7,000
|
)
|
|
11,799,000
|
|
|
—
|
|
|||||
Total debt securities
|
$
|
11,758,000
|
|
|
$
|
48,000
|
|
|
$
|
(7,000
|
)
|
|
$
|
11,799,000
|
|
|
$
|
—
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Type of security:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal bonds — available for sale
|
11,364,000
|
|
|
83,000
|
|
|
(2,000
|
)
|
|
11,445,000
|
|
|
—
|
|
|||||
Total debt securities
|
$
|
11,364,000
|
|
|
$
|
83,000
|
|
|
$
|
(2,000
|
)
|
|
$
|
11,445,000
|
|
|
$
|
—
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Type of security:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal bonds — available for sale
|
21,111,000
|
|
|
220,000
|
|
|
(9,000
|
)
|
|
21,322,000
|
|
|
—
|
|
|||||
Total debt securities
|
$
|
21,111,000
|
|
|
$
|
220,000
|
|
|
$
|
(9,000
|
)
|
|
$
|
21,322,000
|
|
|
$
|
—
|
|
|
Municipal Bonds — Available for Sale
|
||||||
Contractual maturity:
|
December 31, 2014
|
|
December 31, 2013
|
||||
Maturing in one year or less
|
$
|
4,343,000
|
|
|
$
|
1,846,000
|
|
Maturing after one year through three years
|
4,041,000
|
|
|
7,113,000
|
|
||
Maturing after three years
|
3,415,000
|
|
|
2,486,000
|
|
||
Total debt securities
|
$
|
11,799,000
|
|
|
$
|
11,445,000
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Bad debt provision
|
$
|
4,470,000
|
|
|
$
|
1,990,000
|
|
|
$
|
2,160,000
|
|
|
Impaired Notes Receivable
|
||||||||||||||||||
Year ended December 31,
|
Balance Beginning of Year
|
|
Additions
|
|
Deductions
|
|
Balance End of Year
|
|
Average Outstanding Balance
|
||||||||||
2014
|
$
|
2,892,000
|
|
|
$
|
9,124,000
|
|
|
$
|
1,808,000
|
|
|
$
|
10,208,000
|
|
|
$
|
6,550,000
|
|
2013
|
$
|
1,639,000
|
|
|
$
|
1,267,000
|
|
|
$
|
14,000
|
|
|
$
|
2,892,000
|
|
|
$
|
2,266,000
|
|
2012
|
$
|
1,855,000
|
|
|
$
|
—
|
|
|
$
|
216,000
|
|
|
$
|
1,639,000
|
|
|
$
|
1,747,000
|
|
|
Reserve for Impaired Notes Receivable
|
||||||||||||||
Year ended December 31,
|
Balance Beginning of Year
|
|
Additions
|
|
Deductions
|
|
Balance End of Year
|
||||||||
2014
|
$
|
2,019,000
|
|
|
$
|
2,489,000
|
|
|
$
|
1,477,000
|
|
|
$
|
3,031,000
|
|
2013
|
$
|
958,000
|
|
|
$
|
1,072,000
|
|
|
$
|
11,000
|
|
|
$
|
2,019,000
|
|
2012
|
$
|
1,066,000
|
|
|
$
|
108,000
|
|
|
$
|
216,000
|
|
|
$
|
958,000
|
|
Period/Year
|
Operating
Leases |
||
2015
|
$
|
879,000
|
|
2016
|
713,000
|
|
|
2017
|
659,000
|
|
|
2018
|
674,000
|
|
|
2019
|
690,000
|
|
|
Thereafter
|
3,807,000
|
|
|
Total minimum lease payments
|
$
|
7,422,000
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Operating lease expense
|
$
|
1,210,000
|
|
|
$
|
1,239,000
|
|
|
$
|
1,451,000
|
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Stock Options
|
$
|
2,596,000
|
|
|
$
|
2,017,000
|
|
|
$
|
1,897,000
|
|
Restricted Stock
|
109,000
|
|
|
28,000
|
|
|
—
|
|
|||
Employee Stock Purchase Plan ("ESPP")
|
375,000
|
|
|
562,000
|
|
|
641,000
|
|
|||
Total pre-tax stock-based compensation expense charged against income (1)
|
$
|
3,080,000
|
|
|
$
|
2,607,000
|
|
|
$
|
2,538,000
|
|
(1)
|
Stock-based compensation expense is recorded in the selling, general and administrative caption in our consolidated statements of comprehensive income.
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
Weighted Average Exercise Price
|
|
Number of Shares
|
|
Weighted Average Exercise Price
|
|
Number of Shares
|
|
Weighted Average Exercise Price
|
|
Number of Shares
|
|||||||||
Beginning of period
|
$
|
16.05
|
|
|
2,483,000
|
|
|
$
|
13.18
|
|
|
2,632,000
|
|
|
$
|
10.97
|
|
|
2,912,000
|
|
Granted
|
28.02
|
|
|
535,000
|
|
|
23.50
|
|
|
564,000
|
|
|
17.50
|
|
|
601,000
|
|
|||
Cancelled
|
21.95
|
|
|
(122,000
|
)
|
|
18.18
|
|
|
(88,000
|
)
|
|
14.53
|
|
|
(134,000
|
)
|
|||
Exercised
|
11.66
|
|
|
(534,000
|
)
|
|
10.37
|
|
|
(625,000
|
)
|
|
7.81
|
|
|
(747,000
|
)
|
|||
End of period
|
$
|
19.45
|
|
|
2,362,000
|
|
|
$
|
16.05
|
|
|
2,483,000
|
|
|
$
|
13.18
|
|
|
2,632,000
|
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
Weighted Average Grant Date Fair Value
|
|
Number of Non-vested Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Number of Non-vested Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Number of Non-vested Shares
|
|||||||||
Beginning of period
|
$
|
4.72
|
|
|
1,559,000
|
|
|
$
|
3.45
|
|
|
1,592,000
|
|
|
$
|
2.69
|
|
|
1,489,000
|
|
Granted
|
8.24
|
|
|
535,000
|
|
|
6.81
|
|
|
564,000
|
|
|
4.74
|
|
|
601,000
|
|
|||
Vested
|
3.90
|
|
|
(517,000
|
)
|
|
3.09
|
|
|
(518,000
|
)
|
|
2.61
|
|
|
(423,000
|
)
|
|||
Forfeited
|
6.05
|
|
|
(112,000
|
)
|
|
4.77
|
|
|
(79,000
|
)
|
|
2.92
|
|
|
(75,000
|
)
|
|||
End of period
|
$
|
6.17
|
|
|
1,465,000
|
|
|
$
|
4.72
|
|
|
1,559,000
|
|
|
$
|
3.45
|
|
|
1,592,000
|
|
Stock Options
|
|
2014
|
|
2013
|
|
2012
|
||||||
Range of exercise prices
|
|
$10.39 - $28.02
|
|
|
$6.07 - 23.50
|
|
|
$3.68 - 17.50
|
|
|||
Outstanding:
|
|
|
|
|
|
|
||||||
Weighted average remaining contractual life (years)
|
|
6.7
|
|
|
6.5
|
|
|
6.3
|
|
|||
Aggregate intrinsic value
|
|
$
|
27,118,000
|
|
|
$
|
30,599,000
|
|
|
$
|
26,472,000
|
|
Exercisable:
|
|
|
|
|
|
|
||||||
Number of shares
|
|
895,000
|
|
|
922,000
|
|
|
1,040,000
|
|
|||
Weighted average remaining contractual life (years)
|
|
5.1
|
|
|
4.5
|
|
|
4.2
|
|
|||
Aggregate intrinsic value
|
|
$
|
14,457,000
|
|
|
$
|
15,053,000
|
|
|
$
|
13,934,000
|
|
Exercised:
|
|
|
|
|
|
|
||||||
Aggregate intrinsic value
|
|
$
|
9,303,000
|
|
|
$
|
9,139,000
|
|
|
$
|
10,465,000
|
|
|
2014
|
|
2013
|
|
2012
|
Risk-free interest rate
|
1.90%
|
|
1.50%
|
|
1.30%
|
Weighted average expected life in years
|
5.9 years
|
|
6.0 years
|
|
6.8 years
|
Expected volatility
|
36.9%
|
|
38.9%
|
|
39.2%
|
Dividend yield
|
2.40%
|
|
2.80%
|
|
3.60%
|
Forfeiture rate
|
3.00%
|
|
3.00%
|
|
2.90%
|
|
2014
|
|
2013
|
|
2012
|
||||||
Total grant-date fair value of stock awards granted
|
$
|
4,268,000
|
|
|
$
|
3,412,000
|
|
|
$
|
2,438,000
|
|
Total fair value of stock awards vested during period
|
$
|
2,051,000
|
|
|
$
|
1,897,000
|
|
|
$
|
1,409,000
|
|
Total unrecognized compensation expense related to non-vested stock awards
|
$
|
6,492,000
|
|
|
$
|
4,963,000
|
|
|
$
|
3,999,000
|
|
|
ESPP Annual Offering
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Common shares purchased
|
55,000
|
|
|
65,000
|
|
|
79,000
|
|
|||
Per common share purchase price
|
$
|
24.11
|
|
|
$
|
19.75
|
|
|
$
|
15.04
|
|
Amount expensed under ESPP
|
$
|
375,000
|
|
|
$
|
562,000
|
|
|
$
|
641,000
|
|
Net proceeds from issuance
|
$
|
1,326,000
|
|
|
$
|
1,288,000
|
|
|
$
|
1,192,000
|
|
Common shares date of issue
|
Jan 7, 2015
|
|
|
Jan 3, 2014
|
|
|
Jan 4, 2013
|
|
|
SERP Plan Year
|
||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Amount of company match expensed under SERP
|
$
|
497,000
|
|
|
|
|
$
|
538,000
|
|
|
|
|
$
|
560,000
|
|
|
|
Treasury shares issued to fund SERP expense
|
16,000
|
|
|
|
|
19,000
|
|
|
|
|
24,000
|
|
|
|
|||
SERP trust account balance at December 31
|
$
|
35,310,000
|
|
|
(1)
|
|
$
|
31,415,000
|
|
|
(1)
|
|
$
|
24,997,000
|
|
|
(1)
|
Unrealized gain (loss) recorded in SERP liability account
|
$
|
1,211,000
|
|
|
|
|
$
|
3,005,000
|
|
|
|
|
$
|
1,718,000
|
|
|
|
(1)
|
SERP trust account investments are recorded at their fair value which is based on quoted market prices. Differences between such amounts in the table above and the deferred compensation funding asset reported on our Consolidated Balance Sheets represent the value of our Common Stock held in the Plan’s participants’ trust account and reported by us as treasury stock in our Consolidated Balance Sheets.
|
|
Quarter Ended
|
||||||||||||||
|
March 31, 2014
|
|
June 30, 2014
|
|
September 30, 2014
|
|
December 31, 2014
|
||||||||
Cash dividend per common share
|
$
|
0.17125
|
|
|
$
|
0.17250
|
|
|
$
|
0.17375
|
|
|
$
|
0.17500
|
|
Total cash dividends paid
|
$
|
12,077,000
|
|
|
$
|
12,186,000
|
|
|
$
|
12,335,000
|
|
|
$
|
12,479,000
|
|
Record date
|
February 21, 2014
|
|
|
May 23, 2014
|
|
|
August 22, 2014
|
|
|
November 21, 2014
|
|
||||
Payment date
|
March 28, 2014
|
|
|
June 27, 2014
|
|
|
September 26, 2014
|
|
|
December 26, 2014
|
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Cash dividends per common share
|
$
|
0.69
|
|
|
$
|
0.67
|
|
|
$
|
0.65
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
21,030,000
|
|
|
$
|
19,045,000
|
|
|
$
|
24,350,000
|
|
State
|
4,095,000
|
|
|
5,381,000
|
|
|
5,373,000
|
|
|||
|
25,125,000
|
|
|
24,426,000
|
|
|
29,723,000
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(12,708,000
|
)
|
|
(4,172,000
|
)
|
|
(3,048,000
|
)
|
|||
State
|
(2,559,000
|
)
|
|
(894,000
|
)
|
|
(625,000
|
)
|
|||
|
(15,267,000
|
)
|
|
(5,066,000
|
)
|
|
(3,673,000
|
)
|
|||
Tax Provision
|
$
|
9,858,000
|
|
|
$
|
19,360,000
|
|
|
$
|
26,050,000
|
|
|
Years Ended December 31,
|
||||||
|
2014
|
|
2013
|
||||
Net current deferred assets (liabilities):
|
|
|
|
||||
Allowance for doubtful accounts
|
$
|
2,427,000
|
|
|
$
|
1,560,000
|
|
Accrued insurance claims — current
|
5,974,000
|
|
|
3,574,000
|
|
||
Expensing of housekeeping supplies
|
(6,622,000
|
)
|
|
(5,059,000
|
)
|
||
Other
|
1,676,000
|
|
|
2,264,000
|
|
||
|
$
|
3,455,000
|
|
|
$
|
2,339,000
|
|
Net noncurrent deferred assets (liabilities):
|
|
|
|
||||
Deferred compensation
|
$
|
8,681,000
|
|
|
$
|
7,987,000
|
|
Non-deductible reserves
|
5,000
|
|
|
5,000
|
|
||
Depreciation of property and equipment
|
(3,160,000
|
)
|
|
(2,933,000
|
)
|
||
Accrued insurance claims — noncurrent
|
19,982,000
|
|
|
6,848,000
|
|
||
Amortization of intangibles
|
1,229,000
|
|
|
1,015,000
|
|
||
Other
|
496,000
|
|
|
352,000
|
|
||
|
$
|
27,233,000
|
|
|
$
|
13,274,000
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Tax expense computed at statutory rate
|
$
|
11,098,000
|
|
|
$
|
23,271,000
|
|
|
$
|
24,592,000
|
|
Increases (decreases) resulting from:
|
|
|
|
|
|
||||||
State income taxes, net of federal tax benefit
|
998,000
|
|
|
2,916,000
|
|
|
3,086,000
|
|
|||
Federal jobs credits
|
(2,925,000
|
)
|
|
(7,121,000
|
)
|
|
(1,110,000
|
)
|
|||
Tax exempt interest
|
(13,000
|
)
|
|
(29,000
|
)
|
|
(99,000
|
)
|
|||
Other, net
|
700,000
|
|
|
323,000
|
|
|
(419,000
|
)
|
|||
|
$
|
9,858,000
|
|
|
$
|
19,360,000
|
|
|
$
|
26,050,000
|
|
|
Housekeeping
Services |
|
Dietary
Services |
|
Corporate and
Eliminations |
|
|
|
Total
|
||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
846,610,000
|
|
|
$
|
446,573,000
|
|
|
$
|
—
|
|
|
|
|
$
|
1,293,183,000
|
|
Income before income taxes
|
70,390,000
|
|
|
26,343,000
|
|
|
(65,025,000
|
)
|
|
(1)
|
|
31,708,000
|
|
||||
Depreciation and amortization
|
6,114,000
|
|
|
662,000
|
|
|
493,000
|
|
|
|
|
7,269,000
|
|
||||
Total assets
|
223,440,000
|
|
|
95,861,000
|
|
|
150,278,000
|
|
|
(2)
|
|
469,579,000
|
|
||||
Capital expenditures
|
$
|
4,375,000
|
|
|
$
|
391,000
|
|
|
$
|
1,029,000
|
|
|
|
|
$
|
5,795,000
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
759,093,000
|
|
|
$
|
390,797,000
|
|
|
$
|
—
|
|
|
|
|
$
|
1,149,890,000
|
|
Income before income taxes
|
68,872,000
|
|
|
21,244,000
|
|
|
(23,627,000
|
)
|
|
(1)
|
|
66,489,000
|
|
||||
Depreciation and amortization
|
5,105,000
|
|
|
693,000
|
|
|
406,000
|
|
|
|
|
6,204,000
|
|
||||
Total assets
|
213,397,000
|
|
|
92,424,000
|
|
|
119,521,000
|
|
|
(2)
|
|
425,342,000
|
|
||||
Capital expenditures
|
$
|
2,726,000
|
|
|
$
|
460,000
|
|
|
$
|
576,000
|
|
|
|
|
$
|
3,762,000
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
737,407,000
|
|
|
$
|
339,855,000
|
|
|
$
|
173,000
|
|
|
(1)
|
|
$
|
1,077,435,000
|
|
Income before income taxes
|
69,429,000
|
|
|
18,474,000
|
|
|
(17,639,000
|
)
|
|
(1)
|
|
70,264,000
|
|
||||
Depreciation and amortization
|
4,069,000
|
|
|
676,000
|
|
|
371,000
|
|
|
|
|
5,116,000
|
|
||||
Total assets
|
144,412,000
|
|
|
62,263,000
|
|
|
124,508,000
|
|
|
(2)
|
|
331,183,000
|
|
||||
Capital expenditures
|
$
|
2,765,000
|
|
|
$
|
453,000
|
|
|
$
|
266,000
|
|
|
|
|
$
|
3,484,000
|
|
(1)
|
Represents primarily corporate office cost and related overhead, recording of transactions at the reportable segment level which use methods other than generally accepted accounting principles, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. Additionally, during 2014, the Company recorded a one-time, non-cash change in estimate related to our self-insurance liability which was not allocated to the reportable segments.
|
(2)
|
Represents primarily cash and cash equivalents, marketable securities, deferred income taxes and other current and noncurrent assets.
|
|
Year Ended December 31,
|
||||||||||
2014
|
|
2013
|
|
2012
|
|||||||
Housekeeping services
|
$
|
589,820,000
|
|
|
$
|
514,180,000
|
|
|
$
|
492,319,000
|
|
Laundry and linen services
|
254,777,000
|
|
|
241,540,000
|
|
|
240,670,000
|
|
|||
Dietary services
|
446,573,000
|
|
|
390,797,000
|
|
|
339,867,000
|
|
|||
Maintenance services and other
|
2,013,000
|
|
|
3,373,000
|
|
|
4,579,000
|
|
|||
|
$
|
1,293,183,000
|
|
|
$
|
1,149,890,000
|
|
|
$
|
1,077,435,000
|
|
|
Year ended December 31, 2014
|
||||||||||
Income
(Numerator) |
|
Shares
(Denominator) |
|
Per-share
Amount |
|||||||
Net income
|
$
|
21,850,000
|
|
|
|
|
|
||||
Basic earnings per common share
|
$
|
21,850,000
|
|
|
70,616,000
|
|
|
$
|
0.31
|
|
|
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Stock options and restricted stock
|
|
|
725,000
|
|
|
—
|
|
||||
Diluted earnings per common share
|
$
|
21,850,000
|
|
|
71,341,000
|
|
|
$
|
0.31
|
|
|
|
|
||||||||||
|
Year ended December 31, 2013
|
||||||||||
Income
(Numerator) |
|
Shares
(Denominator) |
|
Per-share
Amount |
|||||||
Net income
|
$
|
47,129,000
|
|
|
|
|
|
||||
Basic earnings per common share
|
$
|
47,129,000
|
|
|
69,206,000
|
|
|
$
|
0.68
|
|
|
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Stock options and restricted stock
|
|
|
839,000
|
|
|
(0.01
|
)
|
||||
Diluted earnings per common share
|
$
|
47,129,000
|
|
|
70,045,000
|
|
|
$
|
0.67
|
|
|
|
|
||||||||||
|
Year ended December 31, 2012
|
||||||||||
Income
(Numerator) |
|
Shares
(Denominator) |
|
Per-share
Amount |
|||||||
Net income
|
$
|
44,214,000
|
|
|
|
|
|
||||
Basic earnings per common share
|
$
|
44,214,000
|
|
|
67,511,000
|
|
|
$
|
0.65
|
|
|
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Stock options and restricted stock
|
|
|
974,000
|
|
|
—
|
|
||||
Diluted earnings per common share
|
$
|
44,214,000
|
|
|
68,485,000
|
|
|
$
|
0.65
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
2014
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
312,165,000
|
|
|
$
|
319,295,000
|
|
|
$
|
320,099,000
|
|
|
$
|
341,624,000
|
|
Operating costs and expenses
|
$
|
289,417,000
|
|
|
$
|
298,055,000
|
|
|
$
|
355,132,000
|
|
|
$
|
320,499,000
|
|
Income before income taxes
|
$
|
23,129,000
|
|
|
$
|
22,043,000
|
|
|
$
|
(35,083,000
|
)
|
|
$
|
21,619,000
|
|
Net income
|
$
|
14,639,000
|
|
|
$
|
13,921,000
|
|
|
$
|
(22,182,000
|
)
|
|
$
|
15,472,000
|
|
Basic earnings per common share
(1)
|
$
|
0.21
|
|
|
$
|
0.20
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.22
|
|
Diluted earnings per common share
(1)
|
$
|
0.21
|
|
|
$
|
0.20
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.22
|
|
Cash dividends per common share
(1)
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.18
|
|
2013
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
273,904,000
|
|
|
$
|
273,604,000
|
|
|
$
|
298,549,000
|
|
|
$
|
303,833,000
|
|
Operating costs and expenses
|
$
|
255,981,000
|
|
|
$
|
253,965,000
|
|
|
$
|
278,540,000
|
|
|
$
|
298,616,000
|
|
Income before income taxes
|
$
|
18,957,000
|
|
|
$
|
19,858,000
|
|
|
$
|
21,193,000
|
|
|
$
|
6,481,000
|
|
Net income
|
$
|
14,954,000
|
|
|
$
|
12,933,000
|
|
|
$
|
13,790,000
|
|
|
$
|
5,452,000
|
|
Basic earnings per common share
(1)
|
$
|
0.22
|
|
|
$
|
0.19
|
|
|
$
|
0.20
|
|
|
$
|
0.08
|
|
Diluted earnings per common share
(1)
|
$
|
0.22
|
|
|
$
|
0.19
|
|
|
$
|
0.20
|
|
|
$
|
0.08
|
|
Cash dividends per common share
(1)
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
(1)
|
Year-to-date earnings and cash dividends per common share amounts may differ from the sum of quarterly amounts due to rounding.
|
•
|
Article III has been amended to replace Section 7 and 8 with a new Section 7 to clarify the proper form and procedures for shareholder requests to (a) propose business to be brought before a special meeting, (b) have the Board call a special meeting or (c) have the Board fix a record date, and to replace Sections 11 and 12 with a new Section 10 regarding the procedures for shareholder proposals and nominations.
|
•
|
Section 1 of Article IV has been amended to increase the minimum number of directors from three to six and increase the maximum number of directors from nine to twelve.
|
•
|
Article XI has been amended primarily to reflect certain changes to the Business Corporation Law of the Commonwealth of Pennsylvania with respect to indemnification.
|
|
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
|
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
|
||||
Plan Category
|
(a)
|
|
(b)
|
|
(c)
|
|
||||
Equity compensation plans approved by security holders
|
2,362,000
|
|
(1)
|
$
|
19.45
|
|
|
5,172,000
|
|
(2)
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
2,362,000
|
|
|
$
|
19.45
|
|
|
5,172,000
|
|
|
(1)
|
Represents shares of Common Stock issuable upon exercise of outstanding stock awards granted under the 2012 Equity Incentive Plan and carryover shares from Pre-existing Plans.
|
|
|
(2)
|
Includes stock awards to purchase 2,315,000 shares available for future grant under the Company’s 2012 Equity Incentive Plan and carryover shares from Pre-existing Plans. Also includes 2,421,000 and 436,000 shares available for issuance under the Company’s 1999 Employee Stock Purchase Plan as amended and 1999 Deferred Compensation Plan, respectively (collectively, the “1999 Plans”). Treasury shares may be issued under the 1999 Plans.
|
(a)
|
The following financial statements, schedules and exhibits are filed as part of this report:
|
1.
|
Index to Consolidated Financial Statements
— The Financial Statements required by this item are listed on the Index to Financial Statements in Part II, Item 8 of this report.
|
2.
|
Index to Financial Statement Schedules
—
|
a.
|
Schedule II—Valuation and Qualifying Accounts and Reserves; and
|
b.
|
Other financial statement schedules are not included because they are not required or the information is otherwise shown in the financial statements or notes thereto.
|
3.
|
Index to Exhibits
—
|
a.
|
The exhibits listed below are filed as part of, or are incorporated by reference into, this report.
|
(b)
|
See Item 15(a)(3) above.
|
(c)
|
See Item 15(a)(2) above.
|
|
|
|
Additions
|
|
|
|
|
||||||||||||
Description
|
Beginning Balance
|
|
Charged to Costs and Expenses
|
|
Charged to Other Accounts
|
|
Deductions (A)
|
|
Ending Balance
|
||||||||||
2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Doubtful Accounts
|
$
|
3,919,000
|
|
|
$
|
4,470,000
|
|
|
$
|
—
|
|
|
$
|
2,253,000
|
|
|
$
|
6,136,000
|
|
2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Doubtful Accounts
|
$
|
3,970,000
|
|
|
$
|
1,990,000
|
|
|
$
|
—
|
|
|
$
|
2,041,000
|
|
|
$
|
3,919,000
|
|
2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Doubtful Accounts
|
$
|
4,506,000
|
|
|
$
|
2,160,000
|
|
|
$
|
—
|
|
|
$
|
2,696,000
|
|
|
$
|
3,970,000
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit Number
|
|
Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit Number
|
|
Filed Herewith
|
2.1
|
|
Asset Purchase Agreement, dated July 11, 2013, among Healthcare Services Group, Inc., Platinum Health Services, LLC, Platinum Health Services PEO, LLC, Joseph Foy, Platinum SG Equities LLC, Walnut Court Capital Advisors, LLC, Z Capital LLC, Simon Ganz and Seth E. Gribetz
|
|
8-K
|
|
0-12015
|
|
7/16/2013
|
|
2.1
|
|
—
|
3.1
|
|
Amended and Restated Articles of Incorporation of the Registrant as of May 30, 2000
|
|
10-K
|
|
0-12015
|
|
3/21/2001
|
|
3.2
|
|
—
|
3.2
|
|
Amendment to the Amended and Restated Articles of Incorporation of the Registrant as of May 22, 2007
|
|
8-K
|
|
0-12015
|
|
5/24/2007
|
|
3.1
|
|
—
|
3.3
|
|
Second Amended and Restated Bylaws of the Registrant as of February 17, 2015
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
4.1
|
|
Specimen Certificate of the Common Stock, $.01 par value, of the Registrant
|
|
S-18
|
|
2-87625-W
|
|
—
|
|
4.1
|
|
—
|
4.2†
|
|
Healthcare Services Group, Inc. Employee Stock Purchase Plan
|
|
S-8
|
|
333-92835
|
|
12/15/1999
|
|
4(a)
|
|
—
|
4.3†
|
|
Healthcare Services Group, Inc. Amendment to Employee Stock Purchase Plan
|
|
S-8
|
|
333-107467
|
|
7/30/2003
|
|
—
|
|
—
|
4.4†
|
|
Healthcare Services Group, Inc. Deferred Compensation Plan
|
|
S-8
|
|
333-92835
|
|
12/15/1999
|
|
4(b)
|
|
—
|
4.5†
|
|
Healthcare Services Group, Inc. Amended and Restated Deferred Compensation Plan
|
|
10-Q
|
|
0-12015
|
|
10/22/2012
|
|
10.1
|
|
—
|
10.1†
|
|
Healthcare Services Group, Inc. 2012 Equity Incentive Plan
|
|
10-Q
|
|
0-12015
|
|
7/27/2012
|
|
10.1
|
|
—
|
10.2
|
|
Healthcare Services Group, Inc. Dividend Reinvestment Plan
|
|
S-3D
|
|
333-108182
|
|
8/22/2003
|
|
—
|
|
—
|
10.3
|
|
Amended and Restated Loan Agreement dated as of December 18, 2013
|
|
8-K
|
|
0-12015
|
|
12/19/2013
|
|
99.2
|
|
—
|
10.4
|
|
Amended and Restated Committed Line of Credit Note dated as of December 18, 2013
|
|
8-K
|
|
0-12015
|
|
12/19/2013
|
|
99.3
|
|
—
|
21
|
|
Subsidiaries of Healthcare Services Group, Inc.
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
23
|
|
Consent of Independent Registered Public Accounting Firm
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
31.1
|
|
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
31.2
|
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
32.1
|
|
Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
32.2
|
|
Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
101
|
|
The following financial information from the Company's Form 10-K for the fiscal year ended December 31, 2014 formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Stockholders' Equity, and (v) Notes to Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
†
|
|
Indicates a management plan or compensatory plan or arrangement.
|
|
|
|
|
Dated: February 19, 2015
|
|
HEALTHCARE SERVICES GROUP, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
By:
|
/s/ Daniel P. McCartney
|
|
|
|
Daniel P. McCartney
|
|
|
|
Chief Executive Officer and Chairman of the Board
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Daniel P. McCartney
|
|
Chief Executive Officer and Chairman
|
|
February 19, 2015
|
Daniel P. McCartney
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ John C. Shea
|
|
Chief Financial Officer
|
|
February 19, 2015
|
John C. Shea
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Theodore Wahl
|
|
Director and President and Chief Operating Officer
|
|
February 19, 2015
|
Theodore Wahl
|
|
|
|
|
|
|
|
|
|
/s/ Michael E. McBryan
|
|
Director and Executive Vice President
|
|
February 19, 2015
|
Michael E. McBryan
|
|
|
|
|
|
|
|
|
|
/s/ Robert L. Frome
|
|
Director
|
|
February 19, 2015
|
Robert L. Frome
|
|
|
|
|
|
|
|
|
|
/s/ Diane S. Casey
|
|
Director
|
|
February 19, 2015
|
Diane S. Casey
|
|
|
|
|
|
|
|
|
|
/s/ John M. Briggs
|
|
Director
|
|
February 19, 2015
|
John M. Briggs
|
|
|
|
|
|
|
|
|
|
/s/ Robert J. Moss
|
|
Director
|
|
February 19, 2015
|
Robert J. Moss
|
|
|
|
|
|
|
|
|
|
/s/ Dino D. Ottaviano
|
|
Director
|
|
February 19, 2015
|
Dino D. Ottaviano
|
|
|
|
|
|
|
|
|
|
/s/ John J. McFadden
|
|
Director
|
|
February 19, 2015
|
John J. McFadden
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Entity Name
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Year Formed
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Jurisdiction
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Description
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Huntingdon Holdings Inc. ("Huntingdon")
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1998
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Delaware
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Huntingdon invests our cash and cash equivalents and manages our portfolio of available-for-sale marketable securities.
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HCSG Staff Leasing Solutions, LLC ("Staff Leasing")
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2011
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Pennsylvania
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Staff Leasing offers professional employer organization services to clients in the health care industry.
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HCSG Insurance Corp.
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2014
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New Jersey
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HCSG Insurance Corp. is a captive insurance company which provides the Company with certain insurance-related services.
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HCSG Labor Supply, LLC ("Labor Supply")
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2014
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Pennsylvania
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Labor Supply offers personnel solutions on an indefinite basis in specific job classifications to clients in the health care industry.
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Date:
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February 19, 2015
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/s/ Daniel P. McCartney
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Daniel P. McCartney
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Chief Executive Officer
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(Principal Executive Officer)
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Date:
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February 19, 2015
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/s/ John C. Shea
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John C. Shea
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Chief Financial Officer
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(Principal Financial and Accounting Officer)
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Date:
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February 19, 2015
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/s/ Daniel P. McCartney
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Daniel P. McCartney
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Chief Executive Officer
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(Principal Executive Officer)
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Date:
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February 19, 2015
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/s/ John C. Shea
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John C. Shea
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Chief Financial Officer
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(Principal Financial and Accounting Officer)
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