Providence Service Corporation Raises Third Quarter and Annual 2010 Guidance
TUCSON, Ariz., Sept. 21 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced that it is raising its third quarter and annual 2010 guidance due to continued increases in Medicaid eligibility as well as growing referrals away from out-of-home providers in favor of in-home services.
While the third quarter is not yet complete, based on results from July and August and early indications from September, Providence now anticipates revenue of $211 to $215 million and earnings per diluted share of $0.20 to $0.22 for the third quarter ended September 30, 2010. This compares to previously issued revenue guidance of approximately $210 million and earnings per diluted share guidance of between $0.04 and $0.06 issued when the Company reported second quarter results in early August.
For 2010, the Company now anticipates earnings per diluted share of $1.71 to $1.75. Prior expectations were for earnings per diluted share of approximately $1.55 to $1.59. The Company anticipates revenue to be towards the high end of its previously announced range of $870 to $900 million.
"Poverty levels, unemployment and Medicaid eligibility continue to trend up, beyond levels anticipated in our prior guidance and are producing unprecedented demand for our services," commented Fletcher McCusker, Chairman and CEO. "In addition, federal support for Medicaid remains stronger than ever and referral patterns continue to favor our home and community based alternatives. In addition, our management and staff continue to focus on expense control, which is also contributing to our solid results."
Providence expects to report results for its third quarter ended September 30, 2010 in early November.
About Providence
The Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide social services in the client's own home or other community setting. It provides its non-emergency transportation services management through local transportation providers rather than owning its own fleet of vehicles. The Company provides a range of services through its direct entities to approximately 60,700 clients through 633 active contracts at June 30, 2010, with an estimated nearly eight million individuals eligible to receive the Company's non-emergency transportation services. Combined, the Company has an approximately $1 billion book of business including managed entities.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2009. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
SOURCE The Providence Service Corporation
Share this article