AMERICA SERVICE GROUP POSTS THIRD QUARTER EARNINGS
AMERICA SERVICE GROUP POSTS THIRD QUARTER EARNINGS NEW CASTLE, Del., Nov. 9 /PRNewswire/ -- America Service Group Inc.
(NASDAQ-NMS: ASGR), a national provider of contracted health care services, today reported that revenues for the quarter ended Sept. 30, 1992, increased 11.2 percent to $19.0 million from $17.1 million last year.
For the nine months ended Sept. 30, 1992, revenues increased 31 percent to $56.0 million from $42.7 million the previous year. Eight new contracts since the third quarter of 1991 covering more than 3,400 inmates accounted for $4,045,000 of the increase. Revenues from contracts in force for both periods increased by more than $1.9 million as a result of contract renegotiations and price increases. Revenue for the nine months increased by $9.7 million as a result of a full nine months of operations at five contracts that began during 1991. Company President and Chief Executive Officer Jeffrey A. Reasons, noted, "America Service Group continues to experience substantial revenue growth, even though the growth from continuing contracts has slowed due to lower inflation adjustments and pricing competition." The company reported income of $264,000 or $.08 per share for the third quarter ended Sept. 30, 1992. This compares to prior year earnings of $820,000 or $.25 per share before an extraordinary item. Third quarter 1991 net income of $851,000 or $.27 a share included a $31,000 benefit from the utilization of net operating loss carryforwards. Income for the nine months ended Sept. 30, 1992, was $1,272,000 or $.35 per share compared to prior year earnings of $2,086,000 or $.57 per share before an extraordinary item. Net income for the nine-month period in 1991 of $2,691,000 or $.74 a share included a $605,000 benefit from the utilization of net operating loss carryforwards. Health care expenses increased to $16.6 million or 87.5 percent of total revenue from $13.8 million representing 80.8 percent in the prior period. For the nine months ended Sept. 30, 1992, health care expenses increased to $47.9 million or 85.5 percent of total revenue from $33.9 million representing 79.4 percent in the prior period. Reasons stated, "Expenses continue to reflect the increased use of outside health care services required by inmates of correctional facilities served by our Prison Health Services subsidiary." Selling, general and administrative expenses increased to $2.1 million from $2.0 million in the third quarter of 1991 while the same expenses decreased as a percentage of total revenue from 11.9 percent in 1991 to 11.2 percent in 1992. For the nine months ended Sept. 30, 1992, these same expenses increased to $6.6 million from $5.7 million while decreasing as a percentage of total revenue from 13.3 percent in 1991 to 11.8 percent in 1992. America Service Group Inc. trades as "ASGR" on the NASDAQ National Market System. Through its subsidiary, Prison Health Services, Inc. (PHS), and ASG Management Company, Inc. (ASGM), ASGR contracts to provide comprehensive health care services to correctional facilities throughout the United States and to federal governmental agencies. Through its newest subsidiary, UniSource, ASGR packages and sells pharmaceutical and related products to physicians, maritime vessels and institutions where health care services are currently being delivered through PHS and ASGM. AMERICA SERVICE GROUP INC. Results of Operations (Unaudited; in thousands, except per-share amounts) Periods ended Quarter Nine months Sept. 30 1992 1991 1992 1991 Revenue $19,006 $17,091 $55,969 $42,731 Health care expense 16,628 13,803 47,861 33,948 Gross profit 2,378 3,288 8,108 8,783 S G & A expense 2,128 2,033 6,598 5,675 Income from operations 250 1,255 1,510 3,108 Other income 176 124 541 358 Income taxes 162 528 779 775 Charge equivalent to benefit of loss carryforwards --- 31 --- 605 Income before extraordinary item 264 820 1,272 2,086 Extraordinary item: Tax benefit of loss carryforward --- 31 --- 605 Net income 264 851 1,272 2,691 EPS before extraordinary item $.08 $.25 $.35 $.57 EPS after extraordinary item .08 .27 .35 .74 Common & common equivalent shares outstanding 3,422 3,152 3,688 3,636 /delval/ -0- 11/9/92 /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: ERN
CC-MK -- PH019 -- 8714 11/09/92 12:39 EST
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|Date:||Nov 9, 1992|
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