Providence Service (PRSC) Tops Q3 EPS by 4c, Revenues Beat

Providence Service (NASDAQ: PRSC) reported Q3 EPS of $0.37, $0.04 better than the analyst estimate of $0.33. Revenue for the quarter came in at $421.3 million versus the consensus estimate of $404.9 million.

• Revenue from continuing operations of $421.3 million, a 2.9% increase from the third quarter of 2017
• LogistiCare revenues increased by 5.8%
• Income from continuing operations, net of tax, of $6.8 million, or $0.37 per diluted common share,
• Adjusted Net Income of $10.5 million, a 68.8% increase from the third quarter of 2017; Adjusted EPS of $0.63, a 90.9% increase from the third quarter of 2017
• Adjusted EBITDA of $20.6 million a 31.5% increase from the third quarter of 2017
• LogistiCare completed its acquisition of Circulation
• Signed a share purchase agreement to sell substantially all of the WD Services segment with the exception of our operations in Saudi Arabia

“This was an extremely positive quarter, both from the perspective of significantly improved earnings and on the strategy front. First on earnings, we delivered an Adjusted EPS growth of 91% compared to the same quarter of last year and year to date we are 41% ahead. On the strategic side, we have accomplished a significant amount, having very recently signed an agreement to sell our WD Services segment with the exception of our operations in Saudi Arabia as well as completing the acquisition of Circulation, which presents us with a unique opportunity to accelerate the deployment of industry leading technology across our business, driving margin improvement." stated Carter Pate, Interim Chief Executive Officer. He continued, "Our NET Services segment delivered headline revenue growth of almost 6%, including the new West Virginia contract where we got off to a great start, and margins that were much more in line with our normal expectations. During the quarter we focused on identifying the root causes of the increased transportation costs we saw last quarter and the next step will be to seek to realign rates with those costs which may take a number of quarters to fully recoup, while continuing our ongoing efforts to drive down overall transportation cost."

For earnings history and earnings-related data on Providence Service (PRSC) click here.

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