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America Service Group Announces Second Quarter Results
Company Also Increases Guidance for Full Year 2010 Pro Forma Net Income and Declares Regular Quarterly Dividend of $0.06 Per Diluted Share
BRENTWOOD, Tenn.--(BUSINESS WIRE)--July 29, 2010--America Service Group Inc. (NASDAQ:ASGR):
Second Quarter Highlights:
- Increase in gross margin from continuing contracts to 8.4% of healthcare revenues in the quarter, from 7.5% in the prior year quarter;
- Increase in Adjusted EBITDA to $5.7 million in the quarter, from $5.0 million in the prior year quarter;
- Increase in income from continuing operations before taxes to $3.6 million in the quarter from $3.2 million in the prior year quarter;
- Increase in guidance for full year 2010 pro forma net income to $11.5 million;
- Declared regular quarterly dividend of $0.06 per diluted share for the third quarter 2010;
- Days sales outstanding in accounts receivable of 27 days at June 30, 2010;
- Cash and cash equivalents of $29.7 million at June 30, 2010; and
- No debt outstanding at June 30, 2010.
America Service Group Inc. (NASDAQ:ASGR) announced today results for the second quarter ended June 30, 2010, and increased its guidance for full year 2010 pro forma net income.
Commenting on today’s announcement, Richard Hallworth, president and chief executive officer of America Service Group, said, “Through the first six months, our company has outperformed our internal expectations. Based upon our second quarter results, we are pleased to again raise pro forma net income guidance for 2010 to reflect the continued strong underlying performance of our continuing contracts. Despite significant expected uses of cash this quarter, we achieved a very solid cash balance by quarter end and our days sales outstanding in accounts receivable continue at historically low levels. The pipeline of potential new business opportunities remains very robust although the timing of several key opportunities lags original expectations.”
Income Statement Presentation Format as a Result of United States Generally Accepted Accounting Principles (“GAAP”) Related to Discontinued Operations
As noted in its 2009 annual report on Form 10-K, the Company is applying the discontinued operations provisions of GAAP to all service contracts that expire subsequent to January 1, 2002. In accordance with GAAP, the results of operations of contracts that expire, less applicable income taxes are classified on the Company’s consolidated statements of operations separately from continuing operations. The presentation prescribed for discontinued operations requires the collapsing of healthcare revenues and expenses, as well as other specifically identifiable costs, into the income or loss from discontinued operations, net of taxes. Items such as indirect selling, general and administrative expenses or interest expense cannot be allocated to expired contracts. The GAAP accounting presentation as it relates to discontinued operations and the Company’s expired contracts has no impact on net income, earnings per share, total cash flows or stockholders’ equity.
The following information was filed by America Service Group Inc De on Thursday, July 29, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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