TUCSON, Ariz., Oct. 8 The Providence ServiceCorporation (Nasdaq: PRSC) today announced that its wholly owned subsidiary,Children's Behavioral Health, Inc. (CBH) has acquired substantially all theassets of Family and Children's Services, Inc. (FCS) located in Sharon,Pennsylvania. FCS' staff provides home and school based behavioral healthrehabilitation services to adolescents under a Commonwealth of PennsylvaniaDepartment of Public Welfare program in Mercer, Venango, Crawford and Eriecounties. The acquisition's effective date is October 1, 2007.
The purchase price consisted of approximately $8.2 million in cash and thebalance in a $1.8 million note. Under the terms of the note, $0.3 million isdue in 6 months and the remaining $1.5 million is due in 30 months.
In 2008, Providence expects the FCS acquisition to add approximately $8.5million in revenue and be accretive by approximately $0.04 cents per share.Providence does not expect any material impact to diluted earnings per sharein 2007.
"FCS is an excellent strategic fit for Providence and is highlycomplimentary to the services we acquired in 2005 through our Children'sBehavioral Health acquisition," said Fletcher J. McCusker, Chairman and CEO."The Commonwealth of Pennsylvania is committed to home and school basedsolutions under its Child Welfare System of Care Initiative and theacquisition represents geographic expansion into northwest Pennsylvania, wherewe currently do not have operations. Providence has developed a solidreputation in Pennsylvania and we are pleased that we are being recognized forour work and being looked upon to help regional businesses thrive."
Providence Service Corporation, through its owned and managed entities,provides home and community based social services to government sponsoredclients under programs such as welfare, juvenile justice, Medicaid andcorrections. Providence operates no beds, treatment facilities, hospitals, orgroup homes preferring to provide services in the client's own home or othercommunity setting. Through its owned and managed entities, Providencemaintains 838 government contracts in 35 states and the District of Columbiaas of June 30, 2007.
Certain statements herein, such as any statements about Providence'sconfidence or strategies or its expectations about revenues, results ofoperations, profitability, earnings per share, contracts, collections, awardof contracts, acquisitions and related growth, growth resulting frominitiatives in certain states, effective tax rate or market opportunities,constitute "forward-looking statements" within the meaning of the privateSecurities Litigation Reform Act of 1995. Such forward-looking statementsinvolve a number of known and unknown risks, uncertainties and other factorswhich may cause Providence's actual results or achievements to be materiallydifferent from those expressed or implied by such forward-looking statements.These factors include, but are not limited to, reliance on government-fundedcontracts, risks associated with government contracting, risks involved inmanaging government business, legislative or policy changes, challengesresulting from growth or acquisitions, adverse media and legal, economic andother risks detailed in Providence's filings with the Securities and ExchangeCommission. Words such as "believe," "demonstrate," "expect," "estimate,""anticipate," "should" and "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on thoseforward-looking statements, which speak only as of the date the statement wasmade. Providence undertakes no obligation to update any forward-lookingstatement contained herein.
SOURCE Providence Service Corporation