Sun, Jul 05, 2009

Business

Providence Service's revenues up sharply

Arizona Daily Star
Tucson, Arizona | Published: 05.08.2008
Tucson-based social services provider Providence Service Corp. reported higher first-quarter earnings as revenues grew 187 percent, thanks to a major acquisition.
Net income was $3.7 million, or 29 cents per share, in the quarter ended March 31, compared with earnings of $3.3 million, or 28 cents per share in the same quarter a year ago.
Revenue was $173.7 million, up from $60.5 million a year ago and beating the company's forecast of $170 million.
Revenue from Providence's base social-services segment grew 29.2 percent to $78.1 million in the first quarter.
Revenue from non-emergency transportation services — a business Providence entered with its November acquisition of Atlanta-based LogistiCare Inc. — totaled $95.6 million.
Also on Wednesday, Providence announced that LogistiCare has been notified by the Connecticut Department of Social Services that it would award the company an $18 million annual contract to manage non-emergency transportation program for Medicaid recipients.
The company had a prior annual contract with the state valued at $15 million.