America Service Group Adjusts Guidance for the Third and Fourth Quarters.Business Editors, Health & Medical Writers NASHVILLE, Tenn.--(BW HealthWire)--Sept. 17, 2001 America Service Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASGR ASGR America Service Group Inc. ASGR Armed Services Graves Registration Office ) announced today that financial results for both the third and fourth quarters of this year will likely be less than the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become range of $4.0 million estimated in the Company's second quarter earnings release. The Company further announced that activities related to certain strategic initiatives, also referenced in the second quarter release, have been discontinued. Mr. Catalano, president and chief executive officer of America Service Group, said, "The likely shortfall is due to the unanticipated acceleration in the cost of providing healthcare services under certain contracts. However, it is important to understand that only five of our one hundred fifty-two contracts account for the principal variance from plan." Mr. Catalano continued, "Despite these challenges, we have every confidence in the value of our business model. We are executing a comprehensive action plan, as previously announced. While some improvements have been recognized in the early stages, these are not yet of sufficient magnitude to offset the increased cost being incurred under a limited number of contracts. We are focused on these contract situations and believe that our performance in 2002 will reflect the success of the operational initiatives we have in place." The Company expects to issue its third quarter earnings release during the last week of October. America Service Group Inc., based in Brentwood, Tennessee Brentwood is a city in Williamson County, Tennessee, United States. The population was 23,445 as of the U.S. Census Bureau's 2000 census, and as of 2007, Brentwood's population has increased to over 30,000. Brentwood is an affluent Nashville suburb. , is the leading provider of correctional healthcare services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . America Service Group Inc., through its subsidiaries, provides a wide range of healthcare and pharmacy programs for approximately 340,000 inmates. The Company employs over 7,000 medical, professional and administrative staff nationwide. This press release may contain "forward-looking" statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements. A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filings with the Securities and Exchange Commission. |
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