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Providence Service Corporation Announces 35% Revenue Growth with Third Quarter Results; Increases Revenue Guidance for 2007
Date:11/6/2007

Third Quarter Highlights:

- Total revenue grew 35% to $63.7 million

- 100% contract renewal for 11 consecutive annual cycles

- Entered Canada with workforce initiative acquisition

- Diluted earnings per share of $0.27 in line with guidance

TUCSON, Ariz., Nov. 6 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced financial results for the third quarter ended September 30, 2007.

For the third quarter of 2007, the Company reported revenue of $63.7 million, an increase of 35% from $47.1 million for the comparable period in 2006 and up sequentially from $62.3 million in the second quarter of 2007 despite the seasonal loss of approximately $1.0 million per month of school based revenue. Operating income was $5.5 million in the quarter, a 27% increase over $4.3 million in the year ago period. Net income was $3.2 million, or $0.27 per diluted share, in the quarter ended September 30, 2007, in line with guidance issued in conjunction with the release of second quarter results. In the year ago quarter ended September 30, 2006, net income was $2.7 million, or $0.22 per diluted share. Providence's direct client census grew to over 46,000 at September 30, 2007 from nearly 22,000 at September 30, 2006. The number of direct contracts increased to 455 at September 30, 2007 from 341 at September 30, 2006. The Company continued to report 100% contract renewal for the period, although certain contracts that renewed beginning on July 1 were consolidated, leading to the decline in the number of direct contracts from June 30, 2007, but not the associated census.

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SOURCE Providence Service Corporation
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