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America Service Group Announces Third Quarter Results
Company Also Increases Guidance for Full Year 2010 Earnings Per Share and Declares Regular Quarterly Dividend of $0.06 Per Diluted Share
BRENTWOOD, Tenn.--(BUSINESS WIRE)--October 28, 2010--America Service Group Inc. (NASDAQ:ASGR):
Third Quarter Highlights:
- Increase in net income to $2.8 million in the quarter, from $716,000 in the prior year quarter;
- Increase in Adjusted EBITDA to $6.1 million in the quarter, from $3.4 million in the prior year quarter;
- Increase in gross margin from continuing contracts to 8.7% of healthcare revenues in the quarter, from 5.9% in the prior year quarter;
- Increase in income from continuing operations before taxes to $5.0 million in the quarter from $870,000 in the prior year quarter;
- Declared regular quarterly dividend of $0.06 per diluted share for the fourth quarter 2010;
- Cash and cash equivalents of $15.4 million at September 30, 2010;
- No debt outstanding at September 30, 2010; and
- Increases guidance for full year 2010 earnings per share from $1.16 to $1.19.
America Service Group Inc. (NASDAQ:ASGR) announced today results for the third quarter ended September 30, 2010, increased its guidance for estimated full year 2010 GAAP net income and earnings per share and reaffirmed its guidance for estimated full year 2010 pro forma net income.
Commenting on today’s announcement, Richard Hallworth, president and chief executive officer of America Service Group, said, “We are pleased with our third quarter results and to be once again increasing our earnings per share guidance, especially in light of continued professional liability volatility. Gross margins on continuing contracts again improved beyond our internal expectations. Our significantly lower cash balance at quarter end reflects a timing issue only as collections in October produced cash on hand at levels more similar to what we have reported in the past few quarters.”
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, October 28, 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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