Healthcare Services Group, Inc. HCSG reported first-quarter 2016 net income of 26 cents per share, in line with the Zacks Consensus Estimate. Earnings increased 18% year on year. The bottom-line growth was driven by an increase in revenues.Healthcare Services Group Inc. (HCSG) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyBehind the HeadlinesHealthcare Services’ revenues for the first quarter improved 8% year over year to $384.8 million. The top line also beat the Zacks Consensus Estimate by 2%.On a year-over-year basis, cost of services provided increased 9% to $330 million during the reported quarter. However, selling, general and administrative expenses declined by 5%.Higher revenues offset the increase in expenses. The company also witnessed a 20% surge in income from operations.Financial UpdateHealthcare Services exited the quarter with cash and cash equivalents of $29.1 million, down 12% from $33.2 million at year-end 2015.Total assets came in at $503 million as of Mar 31, 2016, up 5% from $481 million as of Dec 31, 2015.Stockholders' equity was $313 million as of Mar 31, 2016, up 6% from $296 million at the end of last December.Dividend UpdateThe board of directors of Healthcare Services declared a cash dividend of 18.25 cents per common share, up 0.7% from the previous payout of 18 cents. This is the 51st consecutive quarterly increase approved by the board since the company initiated the payout in 2003.The dividend is payable on Jun 24, 2016 to shareholders on record as of May 20, 2016.Zacks Rank and Stocks to ConsiderCurrently, Healthcare Services has a Zacks Rank #3 (Hold). Some better-ranked players from the business service industry are Acacia Research ACTG, PRGX Global Inc. PRGX and Vectrus Inc. VEC. Each of these stocks sports a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HEALTHCARE SERV (HCSG): Free Stock Analysis Report PRGX GLOBAL INC (PRGX): Free Stock Analysis Report ACACIA RESEARCH (ACTG): Free Stock Analysis Report VECTRUS INC (VEC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research