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Providence Service Corporation Releases Fourth Quarter and Year End 2009 Results
Date:3/10/2010

ng to restrict states from cutting Medicaid services.  While our expense structure should return to more normal levels in 2010, we anticipate that positive Medicaid and home based enrollment trends will benefit our business.  

"Our business turnaround in 2009 also enabled us to generate significant cash flow during the year, over $61 million, much of which was used to reduce our debt.  In total we repaid $32.6 million in senior debt in 2009 including voluntary prepayments and prepaid an additional $5 million on our senior debt in January 2010.  We are pleased to report that our covenant issues of a year ago are resolved.  Our improved financial picture also should facilitate our strategy of making strategic acquisitions in 2010.

"Finally, should health care reform move ahead, we believe we are well positioned to benefit.  The plan currently under discussion dramatically increases Medicaid eligibility, adding approximately 12 million new enrollees.  Even without reform, the President's budget contemplates federal funding for Medicaid to continue at stimulus levels, which combined with the growing preference for home based services should provide for continued organic growth."  

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SOURCE The Providence Service Corporation
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