AMERICA SERVICE GROUP LOWERS EARNINGS EXPECTATIONS
AMERICA SERVICE GROUP LOWERS EARNINGS EXPECTATIONS NEW CASTLE, Del., April 9 /PRNewswire/ -- America Service Group Inc.
(NASDAQ-NMS: ASGR) announced today the company expects earnings for the first quarter of 1992 to be in the range of $.15 to $.17 per share compared to $.19 per share in the first quarter of 1991.
The company attributed these lower earnings to higher usage of health care services and higher selling, general and administrative expenses. Jeffrey A. Reasons, president and chief executive officer, noted that the company expects fluctuations in earnings on a quarterly basis and that lower operating margins were experienced in several of the company's contracts in the first two months of 1992. Lower margins are anticipated in the foreseeable future due to budgetary constraints at the state and local government level. These lower margins are likely to continue for the remainder of the year. America Service Group Inc. trades as "ASGR" on the NASDAQ National Market System. Through its primary subsidiary, Prison Health Services, Inc., the company contracts with state, county and local governmental agencies to provide comprehensive health care services to inmates of prisons and jails throughout the United States. /delval/ -0- 4/9/92 /CONTACT: Margaret O. Harrison, chief financial officer of America Service Group, 302-888-0200/ (ASGR) CO: America Service Group Inc. ST: Delaware IN: HEA SU: ERP
MK-MP -- PH003 -- 6605 04/09/92 09:04 EDT
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|Date:||Apr 9, 1992|
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