Tucson-based social services provider Providence Service Corp. on Wednesday reported slightly lower fourth-quarter profits, partly because of payments to two executives who left the company, but revenues beat Wall Street estimates.
The company posted quarterly net income of $2.9 million, or 22 cents per share, compared with net income of $3 million and 22 cents in the fourth quarter of 2011.
Fourth-quarter revenues rose more than 17 percent from the prior year, to $286.5 million, the company said in a news release after the close of trading Wednesday.
Wall Street analysts on average had expected Providence to earn 24 cents per share on revenues of $284 million, according to Thomson Financial.
The fourth-quarter results included net payments of about $1.3 million prompted by the retirement of two executive officers, founder and former CEO Fletcher McCusker and former Chief Financial Officer Michael Deitch.
Warren Rustand, former CEO of Rural/Metro Corp. and formerly Providence's lead director, is now interim CEO of Providence.
Revenue from Providence's non-emergency transportation services segment grew nearly 30 percent, to $200.8 million in the fourth quarter.
But revenue from social services fell 4.5 percent to $85.7 million, due to the loss of workforce-development contracts in certain markets and expiration of contracts for home-based tutoring, the company said.
For all of 2012, Providence reported revenue of $1.1 billion, an increase of 17.3 percent from 2011.
Net income in 2012 was $8.5 million, or 64 cents per share, compared with $16.9 million, or $1.27 per share in 2011. The 2012 results included a one-time impairment charge of $2.5 million related to a Canadian subsidiary.