Providence Service Corporation Announces Board Authorization of Additional Voluntary Senior Debt Prepayment of $5 Million
TUCSON, Ariz., Jan. 7 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced that its Board of Directors has authorized the Company to make an additional voluntary prepayment on its senior debt of $5 million, which will be paid on January 11, 2010. This follows a $20 million voluntary prepayment announced in the fourth quarter of 2009, as well as 2009 regularly scheduled principal payments of approximately $13 million.
"Calendar 2009 is expected to produce record revenue, earnings and cash provided by operations, a significant turnaround from a year ago when we were struggling with our bank covenants," said Fletcher McCusker, Chairman and CEO. "We have remained committed to de-levering the Company, a strategy we announced in November 2008, and have reduced our consolidated total leverage ratio from 5.1 times at the end of 2008, to a projected 3.2 times at the end of 2009, a significant achievement."
The $5 million voluntary prepayment will further improve our leverage ratios and bring the balance of the Company's senior debt to approximately $127 million, from approximately $132 million at December 31, 2009. This is down from $173 million at December 31, 2007.
The Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to over 74,000 clients through 843 active contracts at September 30, 2009, with an estimated 7.3 million individuals eligible to receive the Company's non-emergency transportation services. Combined, the Company has a nearly $1 billion book of business including managed entities.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
SOURCE The Providence Service Corporation