Providence Service Corporation to Utilize Excess Free Cash for $20 Million Voluntary Prepayment of Senior Debt
October 08 2009 - 8:30AM
PR Newswire (US)
TUCSON, Ariz., Oct. 8 /PRNewswire-FirstCall/ -- The Providence
Service Corporation (NASDAQ:PRSC) today announced that given the
substantial free cash generated in the Company's record operating
performance in the first half of 2009, as well as its expectations
of additional free cash generation for the remainder of the year,
the Board of Directors has authorized a total voluntary prepayment
on its senior debt of $20 million. The $20 million voluntary
prepayment, in addition to regularly scheduled amortization of $13
million in 2009, is expected to bring the balance of the Company's
senior debt to approximately $131 million at December 31, 2009,
down from $173 million at December 31, 2007. Including outstanding
convertible indentures, total debt at December 31, 2009 is expected
to be approximately $204 million. "With the strong turnaround in
our operating results and the voluntary debt prepayment, we expect
to see a significant improvement in the Company's leverage ratio by
the end of 2009," said Fletcher McCusker, Chairman and CEO. About
Providence 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 78,000 clients through 925
contracts at June 30, 2009, with an estimated 6.7 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.
Forward-Looking Statements 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. DATASOURCE: The Providence
Service Corporation CONTACT: Fletcher McCusker, Chairman and CEO,
or Kate Blute, Director of Investor and Public Relations, both of
The Providence Service Corporation, +1-520-747-6600; or Alison
Ziegler of Cameron Associates, +1-212-554-5469, for The Providence
Service Corporation Web Site: http://www.provcorp.com/
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