AMERICA SERVICE GROUP POSTS SECOND QUARTER EARNINGS
AMERICA SERVICE GROUP POSTS SECOND QUARTER EARNINGS NEW CASTLE, Del., Aug. 4 /PRNewswire/ -- America Service Group Inc.
(NASDAQ-NMS: ASGR), a national provider of contracted health care services, today reported income of $427,600 or 12 cents per share, for the second quarter ended June 30, 1992.
This compares to prior year earnings of $539,000 or 14 cents per share before an extraordinary item. Net income, including a $103,000 benefit from the utilization of net operating loss carryforwards, was $642,000 or 17 cents per share for the 1991 second quarter. Income for the six months ended June 30, 1992, was $1,007,000 or 27 cents per share compared to prior year earnings of $1,266,000 or 33 cents per share before an extraordinary item. Net income, including a $574,000 benefit from the utilization of net operating loss carryforwards, was $1,840,000 or 48 cents for the same period in 1991. The company's president and chief executive officer, Jeffrey A. Reasons, stated, "Competitive industry conditions in regard to contract pricing, coupled with increases in medical services costs have contributed to the decrease in earnings per share for the quarter." For the quarter, revenues increased 46.5 percent to $18.9 million from $12.9 million last year. For the six months ended June 30, 1992, revenues increased 44.6 percent to $37.0 million from $25.6 million the previous year. Eight new contracts covering more than 9,100 inmates accounted for $5,570,000 of the increase. Revenues from contracts in force for both periods increased by over $812,000 as a result of contract renegotiations and price increases. Reasons noted, "We expect the growth in revenue to be bolstered by continuing interest in privatization of health care by various governmental agencies." Health care expenses increased to $16,019,000 or 84.9 percent of total revenue from $10,412,000 representing 80.4 percent in the prior period primarily due to increased utilization of health care services. Higher employee benefit costs for health care insurance, worker compensation, and unemployment insurance also contributed to the increase. For the six months ended June 30, 1992, health care expenses increased to $31.2 million or 84.5 percent of total revenue from $20.1 million represt?ing 78.6 percent in the prior period. Selling, general and administrative expenses increased to $2,347,000 from $1,780,000 in the second quarter of 1991 while the same expenses decreased as a percentage of total revenues from 13.7 percent in 1991 to 12.4 percent in 1992. For the six months ended June 30, 1992, these same expenses increased to $4,470,000 from $3,643,000 while decreasing as a percentage of total revenue from 14.2 percent in 1991 to 12.1 percent in 1992. America Service Group Inc. trades as "ASGR" on the NASDAQ National Market System. Through its 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. Through its subsidiary, ASG Management Company, Inc., the company provides contracted health care services to federal government agencies. AMERICA SERVICE GROUP INC. (Unaudited; in thousands, except per-share amounts) Periods ended Three months Six months June 30 1992 1991 1992 1991 Revenue $18,872 $12,951 $36,963 $25,640 Health care expense 16,019 10,412 31,233 20,145 Gross profit 2,853 2,539 5,730 5,495 SG & A expense 2,347 1,780 4,470 3,643 Income from operations 506 759 1,260 1,852 Other income 184 130 365 235 Income taxes (262) (247) (618) (247) Charge equivalent to benefit of loss carryforwards --- (103) --- (574) Income before extraordinary item 428 539 1,007 1,266 Extraordinary item: Tax benefit of NOL --- 103 --- 574 Net income 428 642 1,007 1,840 EPS before extraordinary item $.12 $.14 $.27 $.33 EPS after extraordinary item .12 .17 .27 .48 Common & common equivalent shares outstanding 3,708,952 3,776,470 3,780,314 3,852,429 /delval/ -0- 8/4/92 /CONTACT: Margaret O. Harrison, CFO of America Service Group, 302-888-0200/ (ASGR) CO: America Service Group Inc. ST: Delaware IN: HEA SU: ERN
MJ-MK -- PH011 -- 6619 08/04/92 11:43 EDT
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|Date:||Aug 4, 1992|
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