LOUISVILLE, Ky., Oct. 21, 2009 (GLOBE NEWSWIRE) -- ResCare, Inc. (Nasdaq:RSCR), the nation's leading provider of residential, training, educational and support services for people with special needs, announced today that its subsidiary, PeopleServe, has been awarded five contracts by four prime contractors to operate job training and development programs serving adults in the United Kingdom. The prime contractors have agreements with the U.K. Department for Work and Pensions under its Flexible New Deal initiative to help the unemployed return to and remain in work. PeopleServe will provide workforce development services to job seekers, including dislocated workers and economically disadvantaged adults.
The contracts, which began October 5, 2009, and last for a five-year term with a two-year renewal option, are for 15 training centers in five regions: Coventry/Warwickshire; Staffordshire; Black Country; Birmingham/Solihull; and Manchester. Over the contract term, combined revenues are expected to be approximately $90 million. Revenues from the contracts will ramp up over the course of 2010, with annualized revenues of approximately $20 million anticipated in late 2010.
Ralph G. Gronefeld, Jr., president and chief executive officer of ResCare, said, "This is an important development for ResCare and our PeopleServe operations in the United Kingdom. Since entering the U.K., we have strengthened our team and invested in our workforce services so we were prepared to respond to anticipated needs under the Flexible New Deal initiative. Our workforce services are ideally suited for this market, and we are excited about our new opportunities."
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 39 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. Forward-looking Statements in this release related to expected financial results are as of this date only, and ResCare does not assume any responsibility to update these statements.