America Service Group Announces First Quarter Results.Business Editors & Health/Medical Writers NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BW HealthWire)--April 22, 2002 America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. 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 ) First Quarter Highlights: -- Continued improvements in all income statement categories over the prior quarter -- Debt levels reduced from year-end level by $9 million to $49.1 million -- New bank amendment completed March 15, 2002 America Service Group Inc. (NASDAQ:ASGR) announced today results for the first quarter ended March 31, 2002. Commenting on first quarter results, Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Catalano Catalano, originally an adjective or derived substantive indicating something or someone Catalan, can refer to the following persons:
Healthcare revenues for the first quarter of 2002 were $137.9 million, an increase of approximately 3.2% from the fourth quarter of 2001 and consistent with the prior year first quarter. Healthcare expenses for the first quarter of 2002 were $129.3 million, or 93.8% of revenue, as compared with $126.6 million, or 91.8% of revenue, in the prior year quarter. In the fourth quarter of 2001, healthcare expenses were 94.6% of revenue. Gross margin for the first quarter of 2002 was $8.6 million, or 6.2% of revenue, as compared with $11.3 million, or 8.2% of revenue, in the prior year quarter. In the fourth quarter of 2001, gross margin was $7.3 million, or 5.4% of revenue. Selling, general and administrative expenses for the first quarter of 2002 were $4.1 million, or 3.0% of revenue, essentially flat with the prior year quarter. In the fourth quarter of 2001, selling, general and administrative expenses were $4.6 million, or 3.5% of revenue. 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 for the first quarter of 2002 was $4.5 million as compared with $7.2 million in the prior year quarter. In the fourth quarter of 2001, EBITDA was $3.2 million, excluding certain non-recurring charges. Depreciation and amortization expense was $1.2 million, or 0.8% of revenue, as compared with $2.0 million, or 1.4% of revenue, in the prior year quarter. In the fourth quarter of 2001, amortization and depreciation expense was $1.8 million, or 1.3% of revenue. The decrease in depreciation and amortization expense from the prior year is the result of the Company's adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ," effective January January: see month. 1, 2002. SFAS No. 142 eliminates the amortization of the Company's existing goodwill. Net interest expense was $1.5 million, or 1.1% of revenue, as compared with $1.3 million, or 0.9% of revenue, in the prior year quarter. In the fourth quarter of 2001, net interest expense was $1.8 million, or 1.3% of revenue. Tax expense was a benefit of $170,000 for the first quarter of 2002, or 0.1% of revenue, as compared with expense of $1.6 million, or 1.2% of revenue, in the prior year quarter. In the fourth quarter of 2001, tax expense was $8.5 million, or 6.4% of revenue, as a result of the Company's establishment of a full valuation allowance related to its gross deferred tax assets at December December: see month. 31, 2001. Due to the Company's profitability in the first quarter of 2002 and recently extended loss carryback Loss Carryback An accounting technique with which a company retroactively applies net operating losses to a preceding year's income in order to reduce tax liabilities present in that previous year. periods, the valuation allowance was reduced $1.1 million. Net income was $2.0 million for the first quarter of 2002, or 1.4% of revenue, as compared with net income attributable to common shares of $2.2 million, or 1.6% of revenue, in the prior year quarter. Earnings per share for the first quarter of 2002 were $0.36 basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , as compared with $0.44 basic and $0.40 diluted in the prior year quarter. Total debt outstanding was $49.1 million at March 31, 2002, as compared with $58.1 million at December 31, 2001. As previously reported, the Company amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with its syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism of bank lenders, effective March 15, 2002. A listen-only simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and 30-day replay of America Service Group's first quarter conference call will be available online at www.asgr.com, or www.companyboardroom.com on April 23, 2002, beginning at 11:00 a.m. Eastern time. 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 pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. programs to government agencies for the medical care of inmates. This press release may contain "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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. 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 INCOME STATEMENT
(In thousands, except per share data)
Three Months Ended
March 31, % of March 31, % of
2002 Revenue 2001 Revenue
Healthcare revenues $137,855 100.0 $137,941 100.0
Healthcare expenses 129,279 93.8 126,598 91.8
--------- ------ --------- ------
Gross margin 8,576 6.2 11,343 8.2
Selling, general and
administrative expenses 4,085 3.0 4,142 3.0
Depreciation and amortization 1,183 0.8 1,983 1.4
--------- ------ --------- ------
Income from operations 3,308 2.4 5,218 3.8
Interest, net 1,499 1.1 1,288 0.9
--------- ------ --------- ------
Income before income
tax provision (benefit) 1,809 1.3 3,930 2.9
Income tax provision (benefit) (170) (0.1) 1,592 1.2
--------- ------ --------- ------
Net income 1,979 1.4 2,338 1.7
Preferred stock dividends -- -- 163 0.1
--------- ------ --------- ------
Net income attributable
to common shares $1,979 1.4 2,175 1.6
========= ====== ========= ======
Net income per common share:
Basic $0.36 $0.44
========= =========
Diluted $0.36 $0.40
========= =========
Weighted average common shares outstanding:
Basic 5,440 4,887
========= =========
Diluted 5,526 5,913
========= =========
AMERICA SERVICE GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, Dec. 31,
2002 2001
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $2,982 $10,382
Accounts receivable, healthcare
and other less allowances 68,628 64,691
Inventories 7,933 7,747
Prepaid expenses and other
current assets 10,774 6,984
--------- ---------
Total current assets 90,317 89,804
Property and equipment, net 7,407 7,827
Goodwill, net 44,566 44,566
Contracts, net 12,809 13,242
Other intangibles, net 1,633 1,683
Other assets 1,302 1,172
--------- ---------
Total assets $158,034 $158,294
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $32,726 $31,159
Medical claims liability 14,846 15,238
Accrued expenses 33,982 28,062
Deferred revenue 4,777 4,161
Current portion of loss
contract reserve 3,797 4,310
Current portion of long-term debt 3,731 10,700
--------- ---------
Total current liabilities 93,859 93,630
Noncurrent portion of
accrued expenses 7,493 6,810
Noncurrent portion of loss
contract reserve 12,616 14,008
Long-term debt, net of
current portion 45,400 47,400
--------- ---------
Total liabilities 159,368 161,848
Common stock 55 54
Additional paid-in capital 31,457 31,377
Stockholders' notes receivable (1,403) (1,383)
Accumulated other comprehensive
income (465) (645)
Retained earnings (deficit) (30,978) (32,957)
--------- ---------
Total liabilities and
stockholders' equity (deficit) $158,034 $158,294
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