America Service Group Inc. (NASDAQ:ASGR) announced today results
for the first quarter March 31, 2011, and maintained its guidance
for full-year 2011 results.
Income Statement Presentation Format as
a Result of United States Generally Accepted Accounting Principles
(“GAAP”) Related to Discontinued Operations
As noted in its 2010 annual report on Form 10-K, the Company is
applying the discontinued operations provisions of GAAP to all
service contracts that expire subsequent to January 1, 2002. In
accordance with GAAP, the results of operations of contracts that
expire, less applicable income taxes are classified on the
Company’s consolidated statements of operations separately from
continuing operations. The presentation prescribed for discontinued
operations requires the collapsing of healthcare revenues and
expenses, as well as other specifically identifiable costs, into
the income or loss from discontinued operations, net of taxes.
Items such as indirect selling, general and administrative expenses
or interest expense cannot be allocated to expired contracts. The
GAAP accounting presentation as it relates to discontinued
operations and the Company’s expired contracts has no impact on net
income, earnings per share, total cash flows or stockholders’
equity.
As a result of the application of GAAP related to discontinued
operations, “healthcare revenues” and “healthcare expenses” on the
Company’s consolidated statements of operations for any period
presented will only include revenues and expenses from continuing
contracts. The Company will also discuss “Total Revenues,” “Total
Healthcare Expenses,” and “Total Gross Margin,” which will include
all of the Company’s revenues and healthcare expenses for a period
(i.e., healthcare revenues plus revenues from expired service
contracts, or healthcare expenses plus expenses from expired
contracts less share-based compensation expense). Total Gross
Margin is defined as Total Revenues less Total Healthcare Expenses.
Total Gross Margin excludes share-based compensation expense.
Reconciliations of healthcare revenues to Total Revenues,
healthcare expenses to Total Healthcare Expenses and gross margin
to Total Gross Margin are found in the attached schedules.
Results for First Quarter Ended March
31, 2011
Healthcare revenues from continuing contracts for the first
quarter of 2011 were $153.9 million, a decrease of 3.8% over the
prior year quarter. Total Revenues, which include revenues from
continuing and discontinued contracts, for the first quarter of
2011 were $153.7 million, a decrease of 6.3% from the prior year
quarter.
Healthcare expenses from continuing contracts for the first
quarter of 2011 were $139.8 million, or 90.8% of healthcare
revenues, as compared with $144.6 million, or 90.4% of healthcare
revenues, in the prior year quarter. Total Healthcare Expenses,
which include expenses from continuing and discontinued contracts
but excludes share-based compensation expense, for the first
quarter of 2011 were $139.6 million, or 90.8% of Total
Revenues, as compared with $148.8 million, or 90.7% of Total
Revenues, in the prior year quarter. One of the most volatile
components of the Company’s Total Healthcare Expenses each period
relates to professional liability expenses. Total professional
liability expenses, which include policy premiums, current year
loss provision, adjustments to prior year loss provisions,
actuarial adjustments and administrative claim management expenses,
were 3.6% of Total Healthcare Expenses for the first quarter of
2011, as compared with 2.8% of Total Healthcare Expenses in the
prior year quarter.
Gross margin from continuing contracts for the first quarter of
2011 was $14.1 million, or 9.2% of healthcare revenues, as compared
with $15.3 million, or 9.6% of healthcare revenues, in the prior
year quarter. Total Gross Margin, which includes continuing and
discontinued contracts and excludes share-based compensation
expense, for the first quarter of 2011 was $14.1 million, or
9.2% of Total Revenues, as compared with $15.3 million, or 9.3% of
Total Revenues, in the prior year quarter.
Selling, general and administrative expenses for the first
quarter of 2011 were $8.7 million, or 5.7% of healthcare revenues,
as compared with $8.9 million, or 5.5% of healthcare revenues, in
the prior year quarter. Included in selling, general and
administrative expenses is accrued bonus expense related to the
Company’s 2011 incentive compensation plan of $451,000 for the
first quarter of 2011. This compares with accrued bonus expense
related to the Company’s 2010 incentive compensation plan of $1.5
million in the prior year quarter. Also, included in selling,
general and administrative expenses is share-based compensation
expense of $324,000 in the first quarter of 2011, compared with
$418,000 of share-based compensation expense for the first quarter
of 2010. Selling, general and administrative expenses, excluding
share-based compensation expense, as a percentage of Total Revenues
for the first quarter of 2011 were 5.4%, as compared with 5.1% in
the prior year quarter.
The Company incurred $1.3 million of expenses in the first
quarter of 2011 related to the merger transaction announced by the
Company on March 3, 2011. For further information related to the
pending merger transaction, see the section titled “Merger Update”
below.
Expenses related to the Company’s Audit Committee investigation
into certain matters at Secure Pharmacy Plus, LLC, the findings of
which were reported in March 2006, for the quarters ended March 31,
2011 and 2010, were $43,000 and $153,000, respectively. The
expenses incurred in the quarters ended March 31, 2011 and March
31, 2010, are primarily due to legal expenses incurred as part of
the Company reaching a settlement in principle on February 19,
2010, regarding the shareholder litigation filed against the
Company and certain individual defendants on April 6, 2006, and
related litigation filed by the Company against one of its
insurance carriers discussed below.
The settlement regarding the shareholder litigation, which
received final Court approval on October 15, 2010, provided
for payment by the Company of $10.5 million and issuance by the
Company of 300,000 shares of common stock and led to a dismissal
with prejudice of all claims against all defendants in the
litigation. The final total value of the settlement, based upon the
Company’s closing share price for its common stock of $15.12 per
share on October 15, 2010, was approximately $15.0 million.
In addition to its primary directors and officers liability
(“D&O”) insurance carrier, with which the Company has settled
all claims, the Company also maintains D&O insurance with an
excess D&O carrier that provides for additional coverage of up
to $5.0 million for losses in excess of $10.0 million. To date, the
excess D&O carrier has denied coverage of this matter. After
failing to reach agreement with the excess D&O carrier
concerning the amount of their contribution to the settlement, the
Company filed suit against the excess D&O carrier in the second
quarter of 2010. This suit is currently in the discovery phase.
Adjusted EBITDA for the first quarter of 2011 was
$5.8 million, as compared with $6.8 million in the prior year
quarter. As reflected in the attached schedule, the Company defines
Adjusted EBITDA as earnings before interest expense or income,
income taxes, depreciation, amortization, merger expenses, Audit
Committee investigation and related expenses (including shareholder
litigation expenses) and share-based compensation expense. The
Company includes in Adjusted EBITDA the results of discontinued
operations under the same definition.
Depreciation and amortization expense for the first quarter of
2011 was $927,000, as compared with $769,000 in the prior year
quarter.
Income from operations for the first quarter of 2011 was $3.1
million, as compared with $5.6 million in the prior year
quarter.
Net interest income for the first quarter of 2011 was $5,000, as
compared with $20,000 in the prior year quarter.
Income from continuing operations before income taxes for the
first quarter of 2011 was $3.1 million, as compared with $5.6
million in the prior year quarter.
The income tax provision for the first quarter of 2011 was $1.4
million, as compared with $2.3 million in the prior year
quarter.
Income from continuing operations after taxes for the first
quarter of 2011 was $1.8 million, as compared with $3.3 million in
the prior year quarter.
Income from discontinued operations, net of taxes, for the first
quarter of 2011 was $5,000, as compared with a loss from
discontinued operations, net of taxes, of $53,000 in the prior year
quarter.
Net income for the first quarter of 2011 was $1.8 million, as
compared with $3.2 million in the prior year quarter.
Net income available to common shareholders represents the
Company’s net income excluding any amounts required to be allocated
to unvested restricted shares for purposes of calculating earnings
per share. Net income available to common shareholders for the
first quarter of 2011 was $1.7 million, or $0.19 per basic and
diluted common share, as compared with $3.1 million, or $0.36 per
basic common share and $0.35 per diluted common share, in the prior
year quarter.
Cash and cash equivalents were $41.6 million at March 31, 2011,
as compared with $39.6 million at December 31, 2010. There was no
debt outstanding at March 31, 2011 or December 31, 2010. Days sales
outstanding in accounts receivable were 32 days at March 31, 2011,
as compared with 30 days at December 31, 2010. Net cash provided by
operating activities for the first quarter of 2011 was $2.8
million, as compared with $4.9 million in the prior year
quarter.
Merger Update
On March 2, 2011, the Company entered into an Agreement and Plan
of Merger (the “Merger Agreement”) with Valitás Health Services,
Inc., a Delaware corporation (“Valitás”), and Whiskey Acquisition
Corp., a Delaware corporation and a wholly owned subsidiary of
Valitás (“Merger Sub”), providing for the acquisition of the
Company by Valitás. Subject to the terms and conditions of the
Merger Agreement, the Merger Sub will be merged with and into the
Company (the “Merger”), with the Company surviving the Merger as a
wholly owned subsidiary of Valitás.
At the effective time of the Merger (the “Effective Time”), each
share of common stock of the Company that is issued and outstanding
as of immediately prior to the Effective Time (other than shares
held by the Company, Valitás or any of their respective
subsidiaries or shares held by stockholders who have properly
exercised and perfected appraisal rights under Delaware law) will
be automatically converted into the right to receive $26.00 in
cash, without interest (such per share amount, the “Merger
Consideration”). As of the Effective Time, all such converted
shares of common stock of the Company shall no longer be
outstanding and shall automatically be canceled and shall cease to
exist.
The consummation of the Merger is subject to certain customary
conditions, including, without limitation: (i) the approval by the
holders of at least a majority of the outstanding shares of Company
common stock entitled to vote on the Merger Agreement and the
transactions contemplated thereby, including the Merger; (ii)
receipt of any required approvals or expiration or termination of
the applicable waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the “HSR Act”); and (iii) the
absence of any law or order prohibiting or otherwise making illegal
the Merger. Moreover, each party’s obligation to consummate the
Merger is subject to certain other conditions, including, without
limitation: (i) the accuracy of the representations and warranties
made by the other party to the Merger Agreement, subject to
customary materiality qualifiers; and (ii) the compliance by the
other party with its obligations and preclosing covenants
thereunder, subject to customary materiality qualifiers.
Declaration of Quarterly
Dividend
Under the terms of the Merger Agreement discussed above, the
Company is prohibited from paying any additional dividends until
the Merger closes or the Merger Agreement is terminated.
Stock Repurchase Program
On March 4, 2008, the Company announced that its Board of
Directors had approved a stock repurchase program to repurchase up
to $15 million of the Company’s common stock through the end of
2009. On July 28, 2009, the Company’s Board of Directors authorized
the extension of the stock repurchase program by two years through
the end of 2011.
There were no repurchases of common stock during the first
quarter of 2011. Since the inception of the repurchase program, the
Company has repurchased and retired 891,850 shares of its common
stock under the repurchase program for approximately $11.2 million.
The Company is prohibited under the terms of the Merger Agreement,
discussed above, from making any additional repurchases of its
common stock until the Merger closes or the Merger Agreement is
terminated.
As of April 27, 2011, the Company had approximately 9.3 million
shares outstanding.
2011 Guidance
The Company is maintaining its guidance for full-year 2011
results summarized below:
Guidance
For Full Year
2011 Results
Total Revenues (1) $635.0 – $645.0 million Healthcare expenses (2)
$576.5 – $586.5 million Gross margin (2) $58.5 million Selling,
general and administrative expenses (3) $34.0 million Depreciation,
amortization and interest expense (1) $4.0 million Pre-tax income
(1)(2)(3)(4) $20.5 million Income tax provision (1)(4) $8.7 million
Net income (4) $11.8 million
(1)
From continuing and discontinued
contracts.
(2)
From continuing and discontinued
contracts, including share-based compensation expense allocated to
healthcare expenses of $0.1 million estimated for 2011.
(3)
Including share-based compensation expense
allocated to selling, general and administrative expenses of $1.4
million estimated for 2011.
(4)
Excluding any 2011 expenses related to
merger expenses or Audit Committee investigation and related
expenses.
Consistent with past practice, the Company’s guidance for
full-year 2011 results does not consider the impact of any
contracts with potential new customers that have not yet been
signed including the Company’s potential new contract with Public
Health Trust/Jackson Health System for correctional healthcare
services for inmates in Miami-Dade County, Florida. Contracts
currently in operation are included in the guidance for full-year
2011 results through the end of the year, unless the Company has
previously been notified otherwise by the client.
Conference Call
Due to the pending Merger discussed above, the Company will not
be holding a conference call with respect to first quarter 2011
financial results.
America Service Group Inc., based in Brentwood, Tennessee, is a
leading provider of correctional healthcare services in the United
States. America Service Group Inc., through its subsidiaries,
provides a wide range of healthcare programs to government agencies
for the medical care of inmates. More information about America
Service Group can be found on the Company’s website at
www.asgr.com.
This release contains certain financial information not derived
in accordance with GAAP. The Company believes this information is
useful to investors and other interested parties. Such information
should not be considered as a substitute for any measures derived
in accordance with GAAP and may not be comparable to other
similarly titled measures of other companies. A discussion of the
Company’s definition of such information and reconciliation to the
most comparable GAAP measure is included below.
The most directly comparable GAAP measures for the guidance
provided by the Company are: healthcare revenues; healthcare
expenses; gross margin; income from continuing operations before
income taxes; income tax provision; depreciation and amortization;
and interest, each of which will only include results from
continuing contracts. Because it is not possible to reliably
forecast discontinued operations, reconciliation of the Company’s
guidance to the most directly comparable GAAP measure cannot be
estimated on a forward-looking basis.
Cautionary Statement
This press release contains “forward-looking” statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements in this release that are
not historical facts, including statements about the Company’s or
management’s beliefs and expectations, including 2011 guidance,
constitute forward-looking statements and may be indicated by words
or phrases such as “anticipate,” “estimate,” “plans,” “expects,”
“projects,” “should,” “will,” “believes” or “intends” and similar
words and phrases. Forward-looking statements involve inherent
risks and uncertainties. A number of important factors could cause
actual results to differ materially from those contained in any
forward-looking statement. Such factors include, but are not
limited to, the following:
- the Company’s ability to retain
existing client contracts and obtain new contracts at acceptable
pricing levels;
- whether or not government agencies
continue to privatize correctional healthcare services;
- risks arising from governmental
budgetary pressures and funding;
- the possible effect of adverse
publicity on the Company’s business;
- increased competition for new contracts
and renewals of existing contracts;
- risks arising from the possibility that
the Company may be unable to collect accounts receivable or that
accounts receivable collection may be delayed;
- the Company’s ability to limit its
exposure for inmate medical costs, catastrophic illnesses, injuries
and medical malpractice claims in excess of amounts covered under
contracts or insurance coverage;
- the Company’s ability to maintain and
continually develop information technology and clinical
systems;
- the outcome or adverse development of
pending litigation, including professional liability
litigation;
- the Company’s determination whether to
continue the payment of quarterly cash dividends, and if so, at the
current amount;
- the Company’s determination whether to
repurchase shares under its stock repurchase program;
- the Company’s dependence on key
management and clinical personnel;
- risks arising from potential weaknesses
or deficiencies in the Company’s internal control over financial
reporting;
- risks associated with the possibility
that the Company may be unable to satisfy covenants under its
credit facility;
- the risk that government or municipal
entities (including the Company’s government and municipal
customers) may bring enforcement actions against, seek additional
refunds from, or impose penalties on, the Company or its
subsidiaries as a result of the matters investigated by the Audit
Committee in prior years;
- the Company’s ability to expand its
products beyond its traditional correctional health client
base;
- the Company’s ability to obtain
shareholder approval, regulatory approval and close the merger
transaction;
- the inability to complete the merger in
a timely fashion;
- the effect of the announcement of the
merger transaction on the Company’s business relationships,
operating results and business generally; and
- the diversion of management’s attention
from ongoing business concerns as a result of the pendency or
consummation of the merger.
A discussion of important factors and assumptions regarding
certain statements and risks involved in an investment in the
Company is contained in the Company’s Annual Report on Form 10-K
and other filings it makes with the Securities and Exchange
Commission. These forward-looking statements are made as of the
date of this release. The Company assumes no obligations to update
or revise them or provide reasons why actual results may
differ.
AMERICA SERVICE GROUP
INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited, in
thousands, except per share data)
Three Months Ended March 31, 2011
% ofRevenue
2010
% ofRevenue
Healthcare revenues $ 153,865 100.0 $ 159,960 100.0 Healthcare
expenses 139,761 90.8 144,628 90.4 Gross
margin 14,104 9.2 15,332 9.6 Selling, general and administrative
expenses 8,682 5.7 8,852 5.5 Merger expenses 1,339 0.9 - - Audit
Committee investigation and related expenses 43 - 153 0.1
Depreciation and amortization 927 0.6 769 0.5
Income from operations 3,113 2.0 5,558 3.5 Interest income 5
- 20 -
Income from continuing operations before
income tax provision
3,118 2.0 5,578 3.5 Income tax provision 1,365 0.9
2,328 1.5 Income from continuing operations 1,753 1.1 3,250
2.0
Income (loss) from discontinued
operations, net of taxes
5 - (53 ) - Net income $ 1,758 1.1 $ 3,197 2.0
Net income available to common shareholders for purposes of
calculating earnings per share $ 1,741 $ 3,092 Income
(loss) available to common shareholders per common share – basic:
Continuing operations $ 0.19 $ 0.36 Discontinued operations, net of
taxes - - Net income (loss) available to
common shareholders per common share $ 0.19 $ 0.36
Income (loss) available to common shareholders per common share –
diluted: Continuing operations $ 0.19 $ 0.36 Discontinued
operations, net of taxes - (0.01 ) Net income (loss)
available to common shareholders per common share $ 0.19 $ 0.35
Weighted average common shares outstanding: Basic
9,195 8,660 Diluted 9,323 8,744
AMERICA SERVICE GROUP
INC.CONSOLIDATED BALANCE SHEETS(Unaudited, in
thousands)
Mar. 31,2011
Dec. 31,2010
ASSETS Current assets: Cash and cash
equivalents $ 41,606 $ 39,584 Accounts receivable: healthcare and
other, less allowances 54,054 52,481 Inventories 2,870 2,868
Prepaid expenses and other current assets 14,048 13,750 Current
deferred tax assets - 3,359 Total current assets
112,578 112,042 Property and equipment, net 11,163 11,040 Goodwill
40,772 40,772 Contracts, net 1,588 1,658 Other assets 11,776 11,852
Noncurrent deferred tax assets 244 - Total assets $
178,121 $ 177,364
LIABILITIES AND EQUITY
Current liabilities: Accounts payable $ 23,051 $ 23,691 Accrued
medical claims liability 20,310 23,750 Accrued expenses 42,561
38,810 Deferred revenue 12,377 10,053 Current deferred tax
liabilities 1,576 - Total current liabilities 99,875
96,304 Noncurrent portion of accrued expenses 20,744 20,460
Noncurrent deferred tax liabilities - 4,836 Total
liabilities 120,619 121,600 Stockholders’ equity:
Common stock 93 93 Additional paid-in capital 40,553 40,015
Retained earnings 16,856 15,656 Total stockholders’
equity 57,502 55,764 Total liabilities and equity $
178,121 $ 177,364
AMERICA SERVICE GROUP
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in
thousands)
Three Months Ended
March 31,
2011 2010 Cash Flows from Operating
Activities Net income $ 1,758 $ 3,197 Adjustments to reconcile
net income to net cash provided by operating activities:
Depreciation and amortization 928 771 Loss on retirement of fixed
assets - 1 Finance cost amortization 8 8 Deferred income taxes (145
) 2,243 Share-based compensation expense 338 432 Changes in
operating assets and liabilities: Accounts receivable, net (1,573 )
(6,023 ) Inventories (2 ) 141 Prepaid expenses and other current
assets (298 ) 474 Other assets 69 1,355 Accounts payable (640 )
6,019 Accrued medical claims liability (3,440 ) 1,542 Accrued
expenses 3,477 (4,560 ) Deferred revenue 2,324
(665 ) Net cash provided by operating activities 2,804
4,935
Cash Flows from Investing
Activities Capital expenditures (982 ) (1,319 )
Net cash used in investing activities (982 ) (1,319 )
Cash Flows from Financing Activities Share
repurchases - (544 ) Issuance of common stock 200 186 Exercise of
stock options - 591
Net cash provided by financing
activities
200 233 Net increase in cash and
cash equivalents 2,022 3,849 Cash and cash equivalents at beginning
of period 39,584 37,655 Cash and cash
equivalents at end of period $ 41,606 $ 41,504
AMERICA SERVICE GROUP
INC.SCHEDULES OF INCOME (LOSS) FROM DISCONTINUED OPERATIONS,
NET OF TAXES(Unaudited, in thousands)
Three Months Ended
March 31,
2011 2010 Healthcare revenues $ (139 ) $ 4,121
Healthcare expenses (149 ) 4,209 Gross margin
10 (88 ) Depreciation and amortization 1 2
Income (loss) from discontinued operations before income
taxes 9 (90 ) Income tax provision (benefit) 4
(37 ) Income (loss) from discontinued operations, net of taxes $ 5
$ (53 )
AMERICA SERVICE GROUP INC.
DISCUSSION AND RECONCILIATIONS OF
NON-GAAP MEASURES
(Unaudited, in thousands)
This release contains certain financial information not derived
in accordance with GAAP. The Company believes this information is
useful to investors and other interested parties. Such information
should not be considered as a substitute for any measures derived
in accordance with GAAP and may not be comparable to other
similarly titled measures of other companies. A discussion of the
Company’s definition of such information and reconciliations to the
most comparable GAAP measures (net income, healthcare revenues,
healthcare expenses and gross margin) are included below.
ADJUSTED EBITDA
The Company defines Adjusted EBITDA as earnings before interest
expense or income, income taxes, depreciation, amortization, merger
expenses, Audit Committee investigation and related expenses
(including shareholder litigation expenses) and share-based
compensation expense. The Company includes in Adjusted EBITDA the
results of discontinued operations under the same definition.
The Company believes that Adjusted EBITDA is an important
operating measure that supplements discussions and analysis of the
Company’s results of operations. The Company believes that it is
useful to investors to provide disclosures of its results of
operations on the same basis as that used by management, credit
providers and analysts. The Company’s management, credit providers
and analysts rely upon Adjusted EBITDA as a key measure to review
and assess operating performance. Adjusted EBITDA is utilized by
management, credit providers and analysts to compare the Company’s
current operating results with the corresponding periods in the
previous year and to compare the Company’s operating results with
other companies in the healthcare industry.
Adjusted EBITDA is not a measure of financial performance under
United States generally accepted accounting principles and should
not be considered an alternative to net income as a measure of
operating performance or to cash flows from operating, investing
and financing activities as a measure of liquidity. Because
Adjusted EBITDA is not a measurement determined in accordance with
generally accepted accounting principles and is susceptible to
varying calculations, Adjusted EBITDA, as presented, may not be
comparable to other similarly titled measures presented by other
companies.
AMERICA SERVICE GROUP INC.
DISCUSSION AND RECONCILIATIONS OF
NON-GAAP MEASURES (Continued)
(Unaudited, in thousands)
RECONCILIATIONS OF NET INCOME TO
ADJUSTED EBITDA
Three Months Ended
March 31,
2011 2010 Net income $ 1,758 3,197
Depreciation and taxes included in income
(loss) from discontinued operations, net of taxes
5 (35 ) Income tax provision 1,365 2,328 Interest income (5 ) (20 )
Depreciation and amortization 927 769 Merger expenses 1,339 - Audit
Committee investigation and related expenses 43 153 Share-based
compensation expense included in healthcare expenses 14 14
Share-based compensation expense included
in selling, general and administrative expenses
324 418 Adjusted EBITDA $ 5,770
$ 6,824
TOTAL REVENUES, TOTAL HEALTHCARE EXPENSES
AND TOTAL GROSS MARGIN
The Company defines Total Revenues as healthcare revenues plus
revenues from expired service contracts classified as discontinued
operations. The Company defines Total Healthcare Expenses as
healthcare expenses plus expenses from expired contracts classified
as discontinued operations, less share-based compensation expense.
The Company defines Total Gross Margin as Total Revenues less Total
Healthcare Expenses.
The Company believes that Total Revenues, Total Healthcare
Expenses and Total Gross Margin are useful measurements when
comparing the Company’s performance for such items as selling,
general and administrative expenses, interest expense or tax
expense as a percentage of revenue between periods. As a result of
the application of GAAP, “healthcare revenues,” “healthcare
expenses,” and “gross margin” on the Company’s consolidated
statements of operations for any period presented will only include
revenues and expenses from continuing contracts.
RECONCILIATIONS OF HEALTHCARE REVENUES
TO TOTAL REVENUES
Three Months Ended
March 31,
2011 2010 Healthcare revenues $
153,865 $ 159,960
Healthcare revenues included in income
(loss) from discontinued operations, net of taxes
(139 ) 4,121 Total Revenues $ 153,726 $
164,081
AMERICA SERVICE GROUP
INC.DISCUSSION AND RECONCILIATIONS OF NON-GAAP MEASURES
(Continued)(Unaudited, in thousands)
RECONCILIATIONS OF HEALTHCARE EXPENSES
TO TOTAL HEALTHCARE EXPENSES
Three Months Ended
March 31,
2011 2010 Healthcare
expenses $ 139,761 $ 144,628
Healthcare expenses included in income
(loss) from discontinued operations, net of taxes
(149 ) 4,209 Share-based compensation expense included in
healthcare expenses (14 ) (14 ) Total Healthcare
Expenses $ 139,598 $ 148,823
RECONCILIATIONS OF GROSS MARGIN TO
TOTAL GROSS MARGIN
Three Months Ended
March 31,
2011 2010 Gross margin $
14,104 $ 15,332 Gross margin included in income (loss) from
discontinued operations, net of taxes 10 (88 ) Share-based
compensation expense included in gross margin 14 14
Total Gross Margin $ 14,128 $ 15,258
America Service (NASDAQ:ASGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
America Service (NASDAQ:ASGR)
Historical Stock Chart
From Apr 2023 to Apr 2024