LOUISVILLE, Ky., May 7, 2009 (GLOBE NEWSWIRE) -- ResCare, Inc. (Nasdaq:RSCR) today announced results for the first quarter ended March 31, 2009.
First Quarter 2009 Financial Highlights
Revenues for the first quarter of 2009 increased 4.1% over the prior year period to $390.8 million. Income from continuing operations was $12.1 million, or $0.36 per diluted common share, compared with $12.1 million, or $0.36 per diluted common share, in the same period of 2008. EBITDA for the first quarter of 2009 was $30.2 million versus $28.9 million in the prior year quarter.
Ralph G. Gronefeld, Jr., president and chief executive officer said, "Our first quarter performance is consistent with our expectations. We continue to manage in a responsible manner, maintaining quality of services while controlling our expenses. There is strong demand for our services. Our acquisition pipeline is robust, and we are well positioned for continued growth."
2009 Guidance
The Company confirmed its 2009 guidance of diluted earnings per common share from continuing operations in the range of $1.52 to $1.58 and revenues of $1.61 billion to $1.67 billion. The 2009 guidance assumes a decrease of approximately one-half of one percent in aggregate reimbursement rates for the second half of 2009 within the Company's Community Services Group. Additionally, the guidance assumes an income tax rate of 37% and acquisition-related costs of approximately $0.03 per diluted common share associated with planned 2009 acquisitions over the remainder of the year, as a result of the adoption of a new accounting standard.
A listen-only simulcast of ResCare's first quarter 2009 conference call will be available on-line at www.rescare.com on May 8, 2009, beginning at 9:00 a.m. Eastern Time and a replay available at 11:00 a.m. Eastern Time.
ResCare, with 35 years of experience helping people reach their highest level of independence, is one of the largest providers of home care to the elderly and persons with disabilities. It also offers residential and support services to people with intellectual and developmental disabilities and provides education, vocational training and job placement for people of all ages and skill levels. Based in Louisville, Kentucky, ResCare and its more than 46,000 dedicated employees serve daily more than 65,000 people in 40 states, Washington, D.C., Puerto Rico and in a growing number of international locations. For more information about ResCare, please visit the Company's website at www.rescare.com.
From time to time, ResCare makes forward-looking statements in its public disclosures, including statements relating to expected financial results, revenues that might be expected from new or acquired programs and facilities, its development and acquisition activities, reimbursement under federal and state programs, financing plans, compliance with debt covenants and other risk factors, and various trends favoring privatization of government programs. In ResCare's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause its actual results to differ materially from those anticipated in forward-looking statements. Please refer to the discussion of those factors in the Company's filed reports. Statements related to expected financial results are as of this date only, and ResCare does not assume any responsibility to update these statements.
RESCARE, INC.
Unaudited Financial Highlights
(In thousands, except per share data)
Three Months Ended
March 31,
--------------------
2009 2008
-------- --------
Income Statement Data:
Revenues $390,827 $375,399
Facility and program expenses 351,929 337,175
-------- --------
Facility and program contribution 38,898 38,224
Corporate general and administrative 15,549 14,821
Other operating income, net (14) (246)
-------- --------
Operating income 23,363 23,649
Interest expense, net 4,323 4,594
-------- --------
Income from continuing operations before
income taxes 19,040 19,055
Income tax expense 6,969 6,955
-------- --------
Income from continuing operations 12,071 12,100
Loss from discontinued operations, net of tax -- (54)
-------- --------
Net income 12,071 12,046
Net income attributable to preferred
shareholders 1,733 1,738
-------- --------
Net income attributable to common shareholders $ 10,338 $ 10,308
======== ========
Basic earnings (loss) per common share:
From continuing operations $ 0.36 $ 0.36
From discontinued operations -- (0.00)
-------- --------
Basic earnings per common share $ 0.36 $ 0.36
======== ========
Diluted earnings (loss) per common share:
From continuing operations $ 0.36 $ 0.36
From discontinued operations -- (0.00)
-------- --------
Diluted earnings per common share $ 0.36 $ 0.36
======== ========
Weighted average number of common shares:
Basic 28,693 28,338
Diluted 28,693 28,528
EBITDA (1) $ 30,199 $ 28,880
----------
(1) EBITDA is defined as income from continuing operations before
depreciation and amortization, net interest expense and income
taxes. EBITDA should not be considered as a measure of financial
performance under accounting principles generally accepted in the
United States of America. The items excluded from EBITDA are
significant components in understanding and assessing financial
performance. Management routinely calculates and presents EBITDA
because it believes that EBITDA is useful to investors and is
commonly used as an analytical indicator within the industry to
evaluate performance, measure leverage capacity and debt service
ability, and to estimate current or prospective enterprise value.
EBITDA is also used in measurements under certain covenants
contained in the Company's credit agreement. A reconciliation of
income from continuing operations to EBITDA is included on the
next page of this release.
RESCARE, INC.
Unaudited Financial Highlights (continued)
(In thousands)
Three Months Ended
March 31,
--------------------
2009 2008
-------- --------
Reconciliation of Income from Continuing
Operations to EBITDA:
Income from continuing operations $ 12,071 $ 12,100
Add: Interest, net 4,323 4,594
Depreciation and amortization (from
continuing operations) 6,836 5,231
Income tax expense 6,969 6,955
-------- --------
EBITDA $ 30,199 $ 28,880
======== ========
March 31, Dec. 31,
2009 2008
-------- --------
Balance Sheet Data:
ASSETS
Cash and cash equivalents $ 14,243 $ 13,594
Accounts receivable, net 230,677 230,976
Other current assets 42,302 46,913
-------- --------
Total current assets 287,222 291,483
Property and equipment, net 83,477 84,157
Goodwill 473,802 476,196
Other assets 61,732 62,307
-------- --------
$906,233 $914,143
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $156,871 $155,921
Other long-term liabilities 67,686 65,959
Long-term debt 234,155 255,386
Shareholders' equity 447,521 436,877
-------- --------
$906,233 $914,143
======== ========
RESCARE, INC.
Unaudited Financial Highlights (continued)
(In thousands)
Three Months Ended
March 31,
--------------------
2009 2008
-------- --------
Cash Flow Data:
Net income $ 12,071 $ 12,046
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 6,836 5,236
Amortization of discount 302 292
Share-based compensation 1,271 1,096
Deferred income taxes, net 1,025 1,969
Excess tax benefits from share-based
compensation -- (738)
Provision for losses on accounts receivable 1,658 1,569
Gain on purchase of business (562) --
Changes in operating assets and liabilities 4,963 (673)
-------- --------
Cash provided by operating activities 27,564 20,797
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (3,213) (3,969)
Acquisitions of businesses (1,711) (10,400)
Proceeds from sale of assets 120 25
-------- --------
Cash used in investing activities (4,804) (14,344)
-------- --------
Cash flows from financing activities:
Debt borrowings, net (21,526) (1,088)
Debt issuance costs (14) (99)
Excess tax benefits from share-based
compensation -- 738
Proceeds received from exercise of stock
options 168 730
Employee withholding payments on share-based
compensation (506) (779)
-------- --------
Cash used in financing activities (21,878) (498)
-------- --------
Effect of exchange rate on cash and cash
equivalents (233) --
-------- --------
Increase in cash and cash equivalents $ 649 $ 5,955
======== ========
RESCARE, INC.
Unaudited Financial Highlights (continued)
(Dollars in thousands)
Three Months Ended
March 31,
--------------------
2009 2008
-------- --------
Segment Data:
Revenues:
Community Services $281,423 $268,872
Job Corps Training Services 40,587 41,695
Employment Training Services 55,066 53,075
Other 13,751 11,757
-------- --------
Consolidated $390,827 $375,399
======== ========
Operating Income (Loss):
Community Services $ 32,107 $ 29,583
Job Corps Training Services 3,176 3,085
Employment Training Services 4,603 4,918
Other (881) 835
Corporate general and administrative (15,642) (14,772)
-------- --------
Consolidated $ 23,363 $ 23,649
======== ========
Operating Margin:
Community Services 11.4% 11.0%
Job Corps Training Services 7.8% 7.4%
Employment Training Services 8.4% 9.3%
Other (6.4%) 7.1%
Corporate general and administrative (4.0%) (3.9%)
Consolidated 6.0% 6.3%