Ingeus (ProvidenceService Corporation) Second Quarter financial results

The Providence Service Corporation, which owns Ingeus, announced its second quarter results on 6 Aug 2015.

There was an investor conference call on Friday 7th August. The press release and a replay of the conference call are available from http://investor.provcorp.com/

Workforce Development (WD) Services

WD Services revenue was $92.2 million in the second quarter of 2015 and relates primarily to the Ingeus business that was acquired on May 30, 2014.  In the second quarter of 2014, WD Services revenue was $36.6 million and represents the legacy workforce development services business that had historically been part of Human Services as well as one month of operations of Ingeus.  Service expense for the segment was $83.2 million, or 90.3% of WD revenue, in the second quarter of 2015.  WD Services operating loss was $2.4 million in the second quarter of 2015 and included a $1.5 million expense related to the amortization of the fair value of restricted stock awards issued in connection with the acquisition of Ingeus.  WD Services Adjusted EBITDA (non-GAAP) was $1.4 million in the second quarter of 2015 and included a loss on equity investment of $1.1 million related to Mission Providence.  In the second quarter of 2014, service expense was $30.5 million, or 83.2% of WD revenue, operating income was $2.6 million, and Adjusted EBITDA (non-GAAP) was $5.1 million.

In the first half of 2015, WD Services revenue, related primarily to the acquired Ingeus operations, was $199.8 million.  In the first half of 2014, WD Services revenue was $44.1 million and represents the legacy workforce development services business that had historically been part of Human Services as well as one month of operations of Ingeus.  Service expense for the segment was $177.5 million, or 88.8% of WD revenue, in the first half of 2015.  WD Services operating income was $0.4 million in the first half of 2015 and included a $3.1 million expense related to the amortization of the fair value of restricted stock awards issued in connection with the acquisition of Ingeus.  WD Services Adjusted EBITDA (non-GAAP) was $6.6 million in the first half of 2015 and included a loss on equity investment of $3.5 million related to Mission Providence.  In the first half of 2014, service expense was $36.9 million, or 83.7% of WD revenue, operating income was $3.0 million, and Adjusted EBITDA (non-GAAP) was $5.7 million.

Translation for non-finance people: EBITDA is Earnings Before Interest, Depreciation, Taxes and Amortization. GAAP is a US accounting standard.