Providence Service (NASDAQ: PRSC) reported Q2 EPS of $0.13, $0.08 better than the analyst estimate of $0.05. Revenue for the quarter came in at $411.8 million versus the consensus estimate of $416.5 million.

• Revenue from continuing operations of $411.8 million, a 0.9% increase from the second quarter of 2017
• Loss from continuing operations, net of tax, of $11.4 million, or $0.94 per diluted common share, includes impairment charges of $9.9 million, or $0.75 per diluted common share
• Adjusted Net Income of $3.1 million; Adjusted EPS of $0.13
• Segment level Adjusted EBITDA of $18.0 million
• Repurchased 256 thousand shares during the second quarter of 2018

“Our year over year revenue grew in the second quarter although we gave back a little of the positive earnings momentum we had been building over the last several quarters,” stated Carter Pate, Interim Chief Executive Officer. He continued, “NET Services was impacted by higher transportation costs as we witnessed a shift in mix to some of our higher cost service offerings and an increase in distance traveled per trip. Historically, the nature of the NEMT transport business can lead to periods of higher costs, as public policy decisions and other influences can drive a change in member behavior. Our network is uniquely qualified to quickly respond to these changes, and to provide the critical transportation benefit to help improve member quality of life outcomes. While these higher costs adversely impact profitability in the short-term, once a trend fully emerges we generally are able to bring our contractual rates back in line with costs. This adjustment may take a number of quarters, which is why we feel that the business should be measured over the long-term, and we still feel both confident and positive in our long-term view of NET Services. During the second quarter we laid the groundwork for our organizational consolidation and feel confident in our ability to execute this plan and achieve the savings. In addition, we are pleased with the close of the sale of the Ingeus French operations. As part of the overall review of the strategic options for WD Services, this was an important first step to provide flexibility in our options to achieve the best outcome for our shareholders. In addition, we were very encouraged by the recent announcements from the UK Ministry of Justice on our probation services contract, as we now feel we have a clear line of sight and a viable path forward on this contract."

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