The Providence Service Corp. (PRSC, Financial) filed Quarterly Report for the period ended 2009-09-30.
The Providence Service Corporation provides privatized social services to individuals and families in home and community based settings. Their services are reimbursed by government programs such as welfare juvenile justice Medicaid or corrections. They own no beds or facilities preferring to provide their client care in home and community based settings. The Providence Service Corp. has a market cap of $158.3 million; its shares were traded at around $12.3 with a P/E ratio of 8.6 and P/S ratio of 0.2. The Providence Service Corp. had an annual average earning growth of 24.6% over the past 5 years.
Management fees. Revenue for entities we manage but do not consolidate for financial reporting purposes (managed entity revenue) decreased to $52.4 million for the three months ended September 30, 2009 as compared to $61.6 million for the same three month period last year. The decrease of approximately $1.8 million in management fees for the three month period ended September 30, 2009 as compared to the three months ended September 30, 2008 was primarily attributable to the acquisition of assets from CCC (a managed entity) in September 2008 and the effect of changes made to management services arrangements with certain of our managed entities effective January 1, 2009.
Purchased services. We subcontract with a network of providers for a portion of the workforce development services we provide throughout British Columbia. In addition, we incur a variety of other support service expenses in the normal course of business. For the three months ended September 30, 2009, use of purchased services increased by approximately $357,000 as compared to the same three month period in 2008. The increase in purchased services for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008 was primarily related to increases in foster parent payments amounting to approximately $520,000. Significant increases in foster parent payments were attributable to the assets acquired from CCC in September 2008. The foster parent payment increases were partially offset by decreases in out-of-home placement charges. As a percentage of revenue, excluding NET Services revenue, purchased services decreased from 11.9% for the three months ended September 30, 2008 to 10.9% for the three months ended September 30, 2009 primarily due to the growth of revenue streams that do not depend on third-party purchased services.
Stock-based compensation. Stock-based compensation of approximately $108,000 for the three months ended September 30, 2009 represents the amortization of the fair value of stock options awarded to key employees since January 1, 2009 under our 2006 Long-Term Incentive Plan. All stock-based compensation expense for non-corporate employees for the three months ended September 30, 2009 was expensed as part of client service expense. Of the total stock-based compensation expense of approximately $913,000 for the three months ended September 30, 2008, approximately $273,000 was expensed as part of client service expense and the remainder as general and administrative expense.
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The Providence Service Corporation provides privatized social services to individuals and families in home and community based settings. Their services are reimbursed by government programs such as welfare juvenile justice Medicaid or corrections. They own no beds or facilities preferring to provide their client care in home and community based settings. The Providence Service Corp. has a market cap of $158.3 million; its shares were traded at around $12.3 with a P/E ratio of 8.6 and P/S ratio of 0.2. The Providence Service Corp. had an annual average earning growth of 24.6% over the past 5 years.
Highlight of Business Operations:
Foster care services. The acquisition of substantially all of the assets in Illinois and Indiana of Camelot Community Care, Inc., or CCC, in September 2008 added approximately $3.0 million to foster care services revenue for the three months ended September 30, 2009 as compared to the same three month period one year ago. Partially offsetting the increase in foster care services revenue for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008 was the impact of our exit from the foster care market in Kentucky in January 2009 and various state foster care program restructurings which resulted in a decrease in foster care services revenue of approximately $1.3 million. We continuously recruit additional foster care homes in many of our markets which we expect will increase our foster care service offerings.Management fees. Revenue for entities we manage but do not consolidate for financial reporting purposes (managed entity revenue) decreased to $52.4 million for the three months ended September 30, 2009 as compared to $61.6 million for the same three month period last year. The decrease of approximately $1.8 million in management fees for the three month period ended September 30, 2009 as compared to the three months ended September 30, 2008 was primarily attributable to the acquisition of assets from CCC (a managed entity) in September 2008 and the effect of changes made to management services arrangements with certain of our managed entities effective January 1, 2009.
Purchased services. We subcontract with a network of providers for a portion of the workforce development services we provide throughout British Columbia. In addition, we incur a variety of other support service expenses in the normal course of business. For the three months ended September 30, 2009, use of purchased services increased by approximately $357,000 as compared to the same three month period in 2008. The increase in purchased services for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008 was primarily related to increases in foster parent payments amounting to approximately $520,000. Significant increases in foster parent payments were attributable to the assets acquired from CCC in September 2008. The foster parent payment increases were partially offset by decreases in out-of-home placement charges. As a percentage of revenue, excluding NET Services revenue, purchased services decreased from 11.9% for the three months ended September 30, 2008 to 10.9% for the three months ended September 30, 2009 primarily due to the growth of revenue streams that do not depend on third-party purchased services.
Stock-based compensation. Stock-based compensation of approximately $108,000 for the three months ended September 30, 2009 represents the amortization of the fair value of stock options awarded to key employees since January 1, 2009 under our 2006 Long-Term Incentive Plan. All stock-based compensation expense for non-corporate employees for the three months ended September 30, 2009 was expensed as part of client service expense. Of the total stock-based compensation expense of approximately $913,000 for the three months ended September 30, 2008, approximately $273,000 was expensed as part of client service expense and the remainder as general and administrative expense.
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