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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