Providence Service Corporation Reports Second Quarter 2015 Results

Second Quarter 2015 Financial Highlights:

- Revenue of $508.3 million

- Diluted earnings per common share of $0.26, Adjusted diluted earnings per common share (non-GAAP) of $0.67

- Adjusted EBITDA (non-GAAP) of $36.0 million

- Cash flow from operations of $4.7 million

Aug 06, 2015, 16:41 ET from Providence Service Corporation

TUCSON, Ariz., Aug. 6, 2015 /PRNewswire/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced its financial results for the second quarter and six months ended June 30, 2015.  Included in the results are results of the operations of Ingeus and Matrix Medical Network acquired on May 31, 2014 and October 24, 2014, respectively. 

Second Quarter 2015 Results

For the second quarter of 2015, the Company reported consolidated revenue of $508.3 million, an increase of 47.8% from $344.0 million in the comparable period of 2014.  The 2015 results included $140.7 million of revenue contributed by Ingeus and Matrix in the second quarter of 2015.  The second quarter of 2014 included $28.8 million in revenue from Ingeus.  Excluding revenue attributable to these acquired businesses, consolidated revenue was $367.6 million in the second quarter of 2015, an increase of 16.6% from the comparable period of 2014. 

Service expense as a percentage of revenue was 88.6% in the second quarter of 2015 compared to 89.9% in the second quarter of 2014.  Second quarter 2015 and 2014 service expense included a $1.5 million and $0.5 million charge, respectively, related to the amortization of the fair value of restricted stock awards issued in connection with the acquisition of Ingeus.  General and administrative (G&A) expense as a percentage of revenue was 4.6% in the second quarter of 2015 compared to 4.7% in the second quarter of 2014.  Second quarter 2015 G&A expense included a $0.7 million charge related to stock award modifications related to a separation agreement with our former chief executive officer.  The Company also reported a loss on equity investment of $1.1 million in the quarter related to the Company's investment in Mission Providence, a joint venture in Australia, which continued to incur start-up costs during the second quarter of 2015.

The Company reported net income available to common shareholders of $4.2 million, or $0.26 per diluted common share, in the second quarter of 2015 compared to net income available to common shareholders of $6.7 million, or $0.46 per diluted common share, in the prior year period.  Adjusted net income available to common shareholders (non-GAAP) in the second quarter of 2015 was $10.8 million, or $0.67 per diluted common share, versus second quarter 2014 adjusted net income available to common shareholders (non-GAAP) of $10.7 million, or $0.74 per diluted common share.  A reconciliation of net income to adjusted net income available to common shareholders (non-GAAP) and the calculation of adjusted diluted earnings per common share is presented below.

Adjusted EBITDA (non-GAAP) for the second quarter of 2015 was $36.0 million compared to $22.5 million in the same period last year.  Adjusted EBITDA for the second quarter of 2015 includes the loss on equity investment of $1.1 million related to Mission Providence.  A reconciliation of net income to EBITDA and Adjusted EBITDA is presented below.   

James Lindstrom, Chief Executive Officer, stated, "Our financial results in the second quarter benefited from strong volumes in HA Services, execution on operational improvement and organic growth initiatives in Human Services, and increased membership and new contracts in NET Services. In our WD Services segment, management remained focused on launching large, recently won contracts.  Partially due to delayed start-up expenses and additional complementary revenue sources associated with these new contracts, the financial performance of WD Services exceeded our internal expectations for the second quarter.  While we are pleased with our strong second quarter and first half performance, quarterly volatility exists across our segments due to a variety of factors including, but not limited to, seasonality and the timing of contract start-up expenses.  Thus, we remain focused on our annual performance as previously communicated as well as delivering unique, value-add solutions for our clients and generating long term intrinsic value per share."

Year to Date 2015 Results

For the first six months of 2015, the Company reported consolidated revenue of $1.0 billion, an increase of 60.1% from $633.4 million in the comparable period of 2014.  The 2015 results included $299.1 million of revenue contributed by Ingeus and Matrix during the first half of 2015.  The first half of 2014 included $28.8 million in revenue from Ingeus.  Excluding revenue attributable to these acquired businesses, consolidated revenue was $715.0 million, an increase of 18.3% from the comparable period of 2014. 

Service expense as a percentage of revenue was 88.2% in the first half of 2015 compared to 89.8% in the first half of 2014.  First half 2015 and 2014 service expense included a $3.1 million and $0.5 million charge, respectively, related to the amortization of the fair value of restricted stock awards issued in connection with the acquisition of Ingeus.  G&A expense as a percentage of revenue was 4.7% in the first half of 2015 and 2014. First half 2015 and 2014 G&A expense included a $0.7 million and $0.5 million charge, respectively, related to separation arrangements with certain former executive officers. The Company also reported a loss on equity investment of $3.5 million in the first half of 2015 related to the Company's investment in Mission Providence, which incurred start-up costs during the first half of 2015 related to successful bidding activity.

The Company reported net income available to common shareholders of $9.2 million, or $0.57 per diluted common share, in the first half of 2015 compared to net income available to common shareholders of $13.0 million, or $0.91 per diluted common share, in the prior year period.  Adjusted net income available to common shareholders (non-GAAP) in the first half of 2015 was $23.2 million, or $1.44 per diluted common share, versus first half 2014 adjusted net income available to common shareholders (non-GAAP) of $19.4 million, or $1.36 per diluted common share.  A reconciliation of net income to adjusted net income available to common shareholders (non-GAAP) and the calculation of adjusted earnings per diluted common share is presented below.

Adjusted EBITDA (non-GAAP) for the first half of 2015 was $72.3 million compared to $40.7 million in the same period last year.  Adjusted EBITDA for the first half of 2015 includes the loss on equity investment of $3.5 million related to Mission Providence.  A reconciliation of net income to EBITDA and Adjusted EBITDA is presented below.    

Segment Results

For analysis purposes, revenue, expenses, operating income, net income, EBITDA (non-GAAP), and Adjusted EBITDA (non-GAAP) on a comparable basis are provided for Providence's four segments for the three and six month periods ended June 30, 2015 and 2014.  As previously disclosed, beginning in 2015, the Company began analyzing the results of the segments without the historical allocation of indirect corporate costs.  Only corporate costs that represent expenses directly attributable to specific segments are allocated to the respective segment.  Additionally, in 2015, the Company's legacy workforce development businesses were transferred to the management team of the WD Services segment.  As such, the operating segment results for 2014 have been recast. 

Non-emergency Transportation (NET) Services

Revenue from the NET Services segment increased 25.1% to $270.7 million in the second quarter of 2015 from $216.3 million in the prior year period.  Service expense for the segment increased to $246.9 million, or 91.2% of NET Services revenue, in the second quarter of 2015 compared to $196.5 million or 90.8% of NET Services revenue in the second quarter of 2014.  NET Services operating income increased 18.5% to $18.9 million in the second quarter from $15.9 million in the prior year period.  NET Services Adjusted EBITDA (non-GAAP) increased $3.4 million, or 19.2%, to $21.2 million in the second quarter from $17.8 million in the prior year period.   

In the first half of 2015, revenue from the NET Services segment increased 26.8% to $525.5 million from $414.4 million in the prior year period.  Service expense for the segment increased to $476.2 million, or 90.6% of NET Services revenue, in the first half of 2015 compared to $371.7 million or 89.7% of NET Services revenue in the first half of 2014.  NET Services operating income increased 13.0% to $39.6 million in the first half of 2015 from $35.1 million in the prior year period.  NET Services Adjusted EBITDA (non-GAAP) increased $5.5 million, or 14.3%, to $44.2 million in the first half of 2015 from $38.7 million in the prior year period.  

Revenue for the NET Services segment was favorably impacted by new contracts in Rhode Island, Maine, and Texas and increased membership in certain states, partially offset by the elimination of contracts in Mississippi and Connecticut.  As anticipated, service costs as a percentage of revenue continued to increase due to higher utilization related to increased usage by expansion and woodwork populations in addition to covered members becoming more aware of their NET benefits.

Human Services

Revenue from the Human Services segment decreased 1.2% to $90.2 million in the second quarter of 2015, compared to $91.3 million in the second quarter of 2014.  Both periods exclude revenue related to the legacy workforce development services business that was transitioned to the WD Services segment at the beginning of 2015.  Service expense for the segment was $78.7 million, or 87.2% of Human Services revenue, in the second quarter of 2015 compared to $82.6 million, or 90.4% of Human Services revenue in 2014.  Human Services operating income was $4.8 million in the second quarter compared to $2.0 million in the prior year period.  Human Services Adjusted EBITDA (non-GAAP) increased $2.7 million to $6.6 million in the second quarter of 2015 from $3.8 million in the prior year period. 

In the first half of 2015, revenue from the Human Services segment increased 0.6% to $176.4 million, compared to $175.4 million in the first half of 2014.  Both periods exclude revenue related to the legacy workforce development services business that was transitioned to the WD Services segment at the beginning of 2015.  Service expense for the segment was $156.3 million, or 88.6% of Human Services revenue, in the first half of 2015 compared to $161.5 million, or 92.1% of Human Services revenue in 2014.  Human Services operating income was $6.6 million in the first half of the year compared to $0.7 million in the prior year period.  Human Services Adjusted EBITDA (non-GAAP) increased $5.6 million to $10.2 million in the first half of 2015 from $4.6 million in the prior year period. 

Revenue in the Human Services segment was positively impacted by two acquisitions that occurred in 2014 and organic expansion in certain markets, and negatively impacted by the termination of the Texas foster care contract and the exiting of certain underperforming services and offices.  Service costs as a percentage of revenue benefited from the termination of the Texas foster care contract and several business improvement and streamlining initiatives executed throughout the organization.

Workforce Development (WD) Services

WD Services revenue was $92.2 million in the second quarter of 2015 and relates primarily to the Ingeus business that was acquired on May 30, 2014.  In the second quarter of 2014, WD Services revenue was $36.6 million and represents the legacy workforce development services business that had historically been part of Human Services as well as one month of operations of Ingeus.  Service expense for the segment was $83.2 million, or 90.3% of WD revenue, in the second quarter of 2015.  WD Services operating loss was $2.4 million in the second quarter of 2015 and included a $1.5 million expense related to the amortization of the fair value of restricted stock awards issued in connection with the acquisition of Ingeus.  WD Services Adjusted EBITDA (non-GAAP) was $1.4 million in the second quarter of 2015 and included a loss on equity investment of $1.1 million related to Mission Providence.  In the second quarter of 2014, service expense was $30.5 million, or 83.2% of WD revenue, operating income was $2.6 million, and Adjusted EBITDA (non-GAAP) was $5.1 million.

In the first half of 2015, WD Services revenue, related primarily to the acquired Ingeus operations, was $199.8 million.  In the first half of 2014, WD Services revenue was $44.1 million and represents the legacy workforce development services business that had historically been part of Human Services as well as one month of operations of Ingeus.  Service expense for the segment was $177.5 million, or 88.8% of WD revenue, in the first half of 2015.  WD Services operating income was $0.4 million in the first half of 2015 and included a $3.1 million expense related to the amortization of the fair value of restricted stock awards issued in connection with the acquisition of Ingeus.  WD Services Adjusted EBITDA (non-GAAP) was $6.6 million in the first half of 2015 and included a loss on equity investment of $3.5 million related to Mission Providence.  In the first half of 2014, service expense was $36.9 million, or 83.7% of WD revenue, operating income was $3.0 million, and Adjusted EBITDA (non-GAAP) was $5.7 million

Health Assessment (HA) Services

HA Services revenue, primarily derived from providing comprehensive health assessments, was $55.4 million in the second quarter of 2015 and is comprised of revenue from Matrix, acquired on October 23, 2014.  Service expense for the segment was $41.2 million, or 74.4% of HA Services revenue.  HA Services operating income was $6.3 million in the second quarter of 2015, and HA Services Adjusted EBITDA (non-GAAP) was $13.5 million for the same period.   

In the first half of 2015, HA Services revenue was $112.8 million.  Service expense for the segment was $84.4 million, or 74.8% of HA Services revenue.  HA Services operating income was $12.8 million in the first half of 2015, and HA Services Adjusted EBITDA (non-GAAP) was $27.1 million for the same period.  

Conference Call

Providence will hold a conference call at 11:00 a.m. EDT (8:00 a.m. PDT/MST) Friday, August 7, 2015 to discuss its financial results and corporate developments. Interested parties are invited to listen to the call live over the Internet at http://investor.provcorp.com.  The call is also available by dialing (866) 515-2912, or for international callers (617) 399-5126, and by using the passcode 83463896.  A replay of the teleconference will be available on http://investor.provcorp.com.  A replay will also be available until August 14, 2015 by dialing (888) 286-8010 or (617) 801-6888 and using passcode 80558015.

About Providence

Providence is a Tucson, Arizona-based company that provides and manages government sponsored human services, innovative global employment services, comprehensive health assessment and care management services, and non-emergency transportation services.  It offers: (1) non-emergency transportation management services to state Medicaid programs, local government agencies, hospital systems, health maintenance organizations, private managed care organizations and commercial insurers, as well as to individuals with limited mobility, people with limited means of transportation, people with disabilities and Medicaid members; (2) home- and community-based counseling services, which include home-based and intensive home-based counseling, workforce development, substance abuse treatment services, school support services and correctional services; (3) foster care and therapeutic foster care services; (4) case management, referral and monitoring services; (5) social improvement, employment and welfare services to various international government bodies and corporations; and (6) in-home comprehensive health assessment and care management services primarily to Medicare Advantage programs.  Providence is unique in that it provides and manages its human services primarily in the client's own home or in community based settings, rather than in hospitals or treatment facilities and provides its non-emergency transportation services clients through local transportation providers rather than an owned fleet of vehicles.

Non-GAAP Presentation

In addition to the financial results prepared in accordance with US generally accepted accounting principles (GAAP) provided throughout this press release, the Company has provided EBITDA, Adjusted EBITDA, Adjusted net income, and Adjusted diluted EPS, non-GAAP measurements. Providence's management utilizes these non-GAAP measurements as a means to measure overall operating performance and to better compare current operating results with other companies within its industry.  Details of the excluded items and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measure are presented in the table below. The non-GAAP measures do not replace the presentation of our GAAP financial results. The Company has provided this supplemental non-GAAP information because the Company believes it provides meaningful comparisons of the results of Providence's operations for the periods presented in this press release. The non-GAAP measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by some other companies.

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," "forecast," "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, our continuing relationship with government entities and our ability to procure business from them, our ability to manage growing and changing operations, the implementation of the healthcare reform law, state budget changes and legislation 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, 2014 and subsequent filings.  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.

--financial tables to follow--

 

The Providence Service Corporation

Unaudited Condensed Consolidated Statements of Income

(in thousands except share and per share data)

Three months ended

Six months ended

June 30,

June 30,

2015

2014

2015

2014

Service revenue

$    508,251

$    343,953

$ 1,014,046

$    633,356

Operating expenses:

    Service expense

450,058

309,130

893,926

569,066

    General and administrative expense 

23,316

16,156

48,000

29,775

    Depreciation and amortization

14,957

5,143

29,857

8,871

Total operating expenses

488,331

330,429

971,783

607,712

Operating income 

19,920

13,524

42,263

25,644

Other expenses:

    Interest expense, net

4,545

1,261

10,552

2,846

    Loss on equity investment

1,059

-

3,542

-

    (Gain) Loss on foreign currency translation

(714)

61

(395)

101

Income before income taxes

15,030

12,202

28,564

22,697

Provision for income taxes

8,396

5,530

15,693

9,738

Net income 

$        6,634

$        6,672

$      12,871

$      12,959

Net income available to common stockholders

$        4,181

$        6,672

$        9,243

$      12,959

Earnings per common share:

    Basic

$          0.26

$          0.47

$          0.58

$          0.93

    Diluted

$          0.26

$          0.46

$          0.57

$          0.91

Weighted-average number of common

  shares outstanding:

    Basic

16,097,198

14,171,013

16,036,959

14,006,944

    Diluted

16,240,898

14,453,964

16,193,372

14,306,898

 

The Providence Service Corporation

Condensed Consolidated Balance Sheets

(in thousands except share and per share data)

June 30,

December 31,

2015

2014

Assets

(Unaudited)

Current assets:

    Cash and cash equivalents

$    145,161

$       160,406

    Accounts receivable, net of allowance of 

      $6,893 in 2015 and $6,034 in 2014

211,741

151,344

    Other receivables

15,131

6,866

    Prepaid expenses and other

42,149

46,157

    Restricted cash

3,641

3,807

    Deferred tax assets

998

6,066

Total current assets

418,821

374,646

Property and equipment, net

62,127

57,148

Goodwill

358,483

355,641

Intangible assets, net

321,535

340,673

Other assets

40,803

22,373

Restricted cash, less current portion

15,275

14,764

Total assets

$ 1,217,044

$    1,165,245

Liabilities and stockholders' equity 

Current liabilities:

    Current portion of long-term obligations

$      29,663

$         25,188

    Note payable to related party

-

65,500

    Accounts payable

56,441

48,061

    Accrued expenses

127,722

121,857

    Accrued transportation costs

61,514

55,492

    Deferred revenue

27,733

12,245

    Reinsurance liability reserve

17,861

11,115

Total current liabilities

320,934

339,458

Long-term obligations, less current portion

458,667

484,525

Other long-term liabilities

30,204

26,609

Deferred tax liabilities

86,432

93,239

Total liabilities

896,237

943,831

Commitments and contingencies 

Mezzanine equity

    Preferred stock:  Authorized 10,000,000 shares; $0.001 par value;

       805,000 and 0 issued and outstanding; 5.5%/8.5% dividend rate 

77,719

-

Stockholders' equity

    Common stock:  Authorized 40,000,000 shares; $0.001 par

       value; 17,081,535 and 16,870,285 issued and outstanding 

       (including treasury shares) 

17

17

    Additional paid-in capital

270,027

261,155

    Accumulated deficit

(495)

(13,366)

    Accumulated other comprehensive loss, net of tax

(8,045)

(8,756)

    Treasury shares, at cost, 1,029,557 and 1,014,108 shares

(18,420)

(17,686)

  Total Providence stockholders' equity

243,084

221,364

    Non-controlling interest

4

50

Total stockholders' equity 

243,088

221,414

Total liabilities and stockholders' equity

$ 1,217,044

$    1,165,245

 

The Providence Service Corporation

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

Six months ended June 30, 

2015

2014

Operating activities

Net income 

$   12,871

$   12,959

Adjustments to reconcile net income to net cash 

  provided by operating activities:

  Depreciation 

10,165

4,908

  Amortization

19,692

3,963

  Provision for doubtful accounts

1,369

1,089

  Stock based compensation

6,058

1,400

  Deferred income taxes

(4,815)

207

  Amortization of deferred financing costs 

1,071

410

  Excess tax benefit upon exercise of stock options

(2,239)

(2,346)

  Loss on equity investments

3,542

-

  Other non-cash charges

(225)

(40)

  Changes in operating assets and liabilities:

    Accounts receivable

(60,908)

(21,736)

    Other receivables

(2,617)

487

    Restricted cash

69

205

    Prepaid expenses and other

(12,234)

(4,544)

    Reinsurance liability reserve

9,691

4,648

    Accounts payable and accrued expenses

17,755

7,172

    Accrued transportation costs

6,022

13,554

    Deferred revenue

14,555

(52)

    Other long-term liabilities

281

(4,009)

Net cash provided by operating activities

20,103

18,275

Investing activities

Purchase of property and equipment

(13,122)

(8,267)

Acquisitions, net of cash acquired

(1,665)

(59,666)

Equity investments

(10,284)

-

Net decrease in short-term investments

(9)

(9)

Restricted cash for reinsured claims losses

(413)

(4,744)

Net cash used in investing activities

(25,493)

(72,686)

Financing activities

Proceeds from issuance of preferred stock, net of issuance costs

80,667

-

Preferred stock dividends

(1,698)

-

Repurchase of common stock, for treasury

(734)

(501)

Proceeds from common stock issued pursuant to stock 

  option exercise

2,377

9,150

Excess tax benefit upon exercise of stock options

2,239

2,346

Proceeds from long-term debt

-

115,000

Repayment of long-term debt

(87,125)

(47,500)

Payment of contingent consideration

(7,496)

-

Debt financing costs

(30)

(700)

Other

(46)

(8)

Net cash (used in) provided by financing activities

(11,846)

77,787

Effect of exchange rate changes on cash

1,991

629

Net change in cash

(15,245)

24,005

Cash at beginning of period

160,406

98,995

Cash at end of period

$ 145,161

$ 123,000

 

The Providence Service Corporation

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

(in thousands)

(Unaudited)

Three Months Ended June 30, 2015

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Net income

$ 11,693

$  2,804

$ (1,905)

$         3,749

$    (9,707)

$   6,634

Interest expense, net

-

(9)

(43)

(5)

4,602

4,545

Provision for income taxes

7,183

1,992

(786)

2,522

(2,515)

8,396

Depreciation and amortization

2,329

1,767

3,332

7,185

344

14,957

EBITDA

21,205

6,554

598

13,451

(7,276)

34,532

Ingeus acquisition related equity compensation

-

-

1,524

-

-

1,524

Gain on foreign currency translation

-

-

(714)

-

-

(714)

Charges related to the separation of an executive officer, net

-

-

-

-

695

695

Adjusted EBITDA

$ 21,205

$  6,554

$  1,408

$       13,451

$    (6,581)

$ 36,037

Three Months Ended June 30, 2014

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Net income

$   9,545

$  1,182

$  2,321

$              -

$    (6,376)

$   6,672

Interest expense, net

(2)

(8)

(228)

-

1,499

1,261

Provision for income taxes

6,381

876

503

-

(2,230)

5,530

Depreciation and amortization

1,865

1,745

1,261

-

272

5,143

EBITDA

17,789

3,795

3,857

-

(6,835)

18,606

Acquisition costs

-

-

-

-

2,496

2,496

Integration and restructuring charges

-

15

732

-

97

844

Ingeus acquisition related equity compensation

-

-

486

-

-

486

Loss on foreign currency translation

-

-

54

-

7

61

Adjusted EBITDA

$ 17,789

$  3,810

$  5,129

$              -

$    (4,235)

$ 22,493

 

The Providence Service Corporation

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

(in thousands)

(Unaudited)

Six Months Ended June 30, 2015

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Net income

$ 24,305

$   3,840

$ (4,286)

$         7,595

$  (18,583)

$ 12,871

Interest expense, net

(1)

(29)

(58)

(9)

10,649

10,552

Provision for income taxes

15,312

2,798

1,640

5,193

(9,250)

15,693

Depreciation and amortization

4,606

3,614

6,648

14,367

622

29,857

EBITDA

44,222

10,223

3,944

27,146

(16,562)

68,973

Ingeus acquisition related equity compensation

-

-

3,057

-

-

3,057

Gain on foreign currency translation

-

-

(395)

-

-

(395)

Charges related to the separation of an executive officer, net

-

-

-

-

695

695

Adjusted EBITDA

$ 44,222

$ 10,223

$  6,606

$       27,146

$  (15,867)

$ 72,330

Six Months Ended June 30, 2014

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Net income

$ 20,954

$      380

$  2,530

$              -

$  (10,905)

$ 12,959

Interest expense, net

(6)

(20)

(243)

-

3,115

2,846

Provision for income taxes

14,114

369

660

-

(5,405)

9,738

Depreciation and amortization

3,626

3,324

1,392

-

529

8,871

EBITDA

38,688

4,053

4,339

-

(12,666)

34,414

Acquisition costs

-

-

-

-

4,325

4,325

Integration and restructuring costs

-

29

732

-

97

858

Ingeus acquisition related equity compensation

-

-

486

-

-

486

Loss on foreign currency translation

-

-

95

-

6

101

Charges related to the separation of an executive officer, net

-

511

-

-

-

511

Adjusted EBITDA

$ 38,688

$   4,593

$  5,652

$              -

$    (8,238)

$ 40,695

 

The Providence Service Corporation

Adjusted Earnings Per Share

(in thousands, except share and per share data)

(Unaudited)

Three months ended June 30,

Six months ended June 30,

2015

2014

2015

2014

Net income

$        6,634

$        6,672

$      12,871

$      12,959

Acquisition costs

-

2,496

-

4,325

Integration and restructuring costs

-

844

-

858

Ingeus acquisition related equity compensation

1,524

486

3,057

486

(Gain) Loss on foreign currency translation

(714)

61

(395)

101

Payments related to separation arrangements with certain former executive officers, net

695

-

695

511

Intangible amortization expense

9,881

2,338

19,692

3,963

Tax effected impact of adjustments

(3,927)

(2,157)

(7,754)

(3,759)

Adjusted net income

14,093

10,740

28,166

19,444

Dividends on preferred stock

(1,104)

-

(1,698)

-

Amortization of preferred stock discount

(825)

-

(1,071)

-

Income allocated to participating securities

(1,355)

-

(2,159)

-

Adjusted net income available to common stockholders, diluted

10,809

10,740

23,238

19,444

Adjusted diluted earnings per common share

$          0.67

$          0.74

$          1.44

$          1.36

Diluted weighted-average number of common shares outstanding

16,240,898

14,453,964

16,193,372

14,306,898

 

The Providence Service Corporation

Segment Information

(in thousands)

(Unaudited)

Three Months Ended June 30, 2015

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Revenues

$ 270,690

$   90,222

$        92,175

$       55,404

$       (240)

$    508,251

Operating income (loss)

18,876

4,787

(2,389)

6,266

(7,620)

19,920

Depreciation and amortization

2,329

1,767

3,332

7,185

344

14,957

Net Income

11,693

2,804

(1,905)

3,749

(9,707)

6,634

Adjusted EBITDA (Non-GAAP)

21,205

6,554

1,408

13,451

(6,581)

36,037

Three Months Ended June 30, 2014

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Revenues

$ 216,296

$   91,333

$        36,617

$              -

$       (293)

$    343,953

Operating income (loss)

15,925

2,049

2,649

-

(7,099)

13,524

Depreciation and amortization

1,865

1,745

1,261

-

272

5,143

Net Income

9,545

1,182

2,321

-

(6,376)

6,672

Adjusted EBITDA (Non-GAAP)

17,789

3,810

5,129

-

(4,235)

22,493

Six Months Ended June 30, 2015

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Revenues

$ 525,450

$ 176,409

$      199,793

$     112,836

$       (442)

$ 1,014,046

Operating income (loss)

39,615

6,607

444

12,781

(17,184)

42,263

Depreciation and amortization

4,606

3,614

6,648

14,367

622

29,857

Net Income

24,305

3,840

(4,286)

7,595

(18,583)

12,871

Adjusted EBITDA (Non-GAAP)

44,222

10,223

6,606

27,146

(15,867)

72,330

Six Months Ended June 30, 2014

NET Services

Human Services

WD Services

HA Services

Corporate and Other

Total

Revenues

$ 414,373

$ 175,435

$        44,065

$              -

$       (517)

$    633,356

Operating income (loss)

35,061

729

3,043

-

(13,189)

25,644

Depreciation and amortization

3,626

3,324

1,392

-

529

8,871

Net Income

20,954

380

2,530

-

(10,905)

12,959

Adjusted EBITDA (Non-GAAP)

38,688

4,593

5,652

-

(8,238)

40,695

Logo - http://photos.prnewswire.com/prnh/20140331/LA92965LOGO

 

 

SOURCE Providence Service Corporation