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Providence Service Corporation Releases Second Quarter Results
Date:8/6/2008

TUCSON, Ariz., Aug. 6 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced results for the second quarter of 2008 ended June 30, 2008.

For the second quarter of 2008, the Company reported revenue of $173 million, an increase of approximately 178% from $62.3 million for the comparable period in 2007. Revenue from Providence's social services segment grew approximately 26% to $78.4 million in the second quarter from the prior year period and the revenue from its non-emergency transportation (NET) services segment, which the Company acquired in December 2007, totaled $94.6 million. Operating income grew approximately 68% to $10.1 million in the second quarter as compared to $6.0 million recorded in the year ago period. Net income was $3.4 million, or $0.27 per diluted share, in the quarter ended June 30, 2008, in line with the Company's recently revised guidance. In the year ago quarter, net income was $3.6 million, or $0.30 per diluted share. As stated in the Company's release on July 29, 2008, lower than expected revenue and earnings per diluted share was largely due to delays related to payer concerns over their 2008-2009 fiscal budgets. Providence's direct client census was approximately 52,000 at June 30, 2008, up from approximately 46,000 at June 30, 2007, and the Company had over six million individuals eligible to receive services under its NET contracts at June 30, 2008. The Company had 531 direct contracts at June 30, 2008 up from 515 at June 30, 2007.

Managed entity revenue, which represents revenue of the not-for-profit social services organizations the Company provides management and/or administrative services to in return for a negotiated management fee, increased 9.2% to $62
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