HCSG - 'Strategic Rounding' At Healthcare Services Group: A Subpoena From The SEC And An Internal Investigation
In March 2017, we published our initial article about outsourced healthcare services company Healthcare Services Group (HCSG), and how it appeared that the company had been actively engaging FOR OVER A DECADE in aggressive accounting by fiddling with its revenues and/or expenses in order to ensure that its earnings per share rounded up to the nearest penny every quarter. This helped enable the company to meet or beat the consensus sell-side earnings expectation most quarters, which in turn helped the company achieve a premium earnings multiple for the stock. Arguably, this allowed founder