Tucson's Providence Service posts higher revenues, profit slips

2013-03-13T15:39:00Z Tucson's Providence Service posts higher revenues, profit slipsArizona Daily Star Arizona Daily Star
March 13, 2013 3:39 pm  • 

Tucson-based social services provider Providence Service Corp. today 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.

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, was named interim CEO.

Revenue from Providence’s non-emergency transportation services segment grew nearly 30 percent, to $200.8 million in the fourth quarter. More than 15 million people were eligible to receive transportation services under the company’s contracts at the end of 2012, up 33 percent from the end of 2011, the company said

But revenue from social services fell 4.5 percent to $85.7 million, due to the loss 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.

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