Youth Services International, Inc.
Announces Third Quarter Results
OWINGS MILLS, Md., May 6, 1997 - Youth Services International,
Inc. (Nasdaq: YSII) announced today results for the third quarter
and nine months ended March 31, 1997. Net loss for the quarter
was $21.4 million, or $2.19 per share, compared to net income of
$635,000, or $.07 per share, for the third quarter of the prior
year. Net loss for the nine months ended March 31, 1997 was $19.8
million or $2.12 per share, compared to net income of $1.9
million, or $.21 per share, for the comparable nine month period
of fiscal 1996.
Included in the results for the quarter and the nine months
ended March 31, 1997 is the previously announced one-time
restructuring charge of $27.0 million incurred in connection with
the Company's decision to dispose of its behavioral health
businesses. Without the charge, the Company would have incurred a
loss of $454,000, or $.05 per share for the quarter, and income
of $1.1 million, or $.11 per share, for the nine months ended
March 31, 1997.
"These results are in line with our previously announced
expectations," stated Timothy P. Cole, Chairman and Chief
Executive Officer of Youth Services International. "The
Company's core business of juvenile justice programs continues to
perform to our expectations. We have begun the process of
disposing of the behavioral health programs and hope to conclude
the disposition quickly."
Revenues increased 7.9% to $27.3 million for the third quarter
of fiscal year 1997, compared to $25.3 million for the third
quarter of fiscal 1996. Revenues for the nine month period ended
March 31, 1997 totaled $84.3 million compared with $72.3 million
in the prior fiscal year nine month period, an increase of 16.6%.
For the third quarter of fiscal year 1997 the juvenile justice
programs generated revenues of $16.5 million compared to $13.8
million for the third quarter of fiscal year 1996, an increase of
19.6%. For the nine months ended March 31, 1997, the juvenile
justice programs generated revenues of $48.7 million compared to
$40.6 million for the nine months ended March 31, 1996, an
increase of 19.9%. Operations for the juvenile justice programs
resulted in direct program contribution of $2.9 million for the
third quarter of fiscal year 1997 compared to $1.7 million for
the third quarter offiscal year 1996, an increase of 70.6%.
Operations of the juvenile justice program resulted in direct
program contribution of $8.8 million for the nine months ended
March 31, 1997 compared to $6.8 million for the nine months ended
March 31, 1996, an increase of 29.4%.
The increase in juvenile justice revenues principally reflects
the increases in residential populations in the Company's
programs and the opening of Everglades Academy in Dade County,
Florida in December 1996 and Keweenaw Academy in Michigan in
January, 1997. The youth population at YSI's thirteen residential
juvenile justice facilities was 1,698 as of March 31, 1997,
compared to a total population of 1,399 as of March 31, 1996,
reflecting a 21.4% increase in enrollment. Licensing for
residential juvenile justice students increased to 1,773 as of
March 31, 1997, as compared to 1,505 as of March 31, 1996, an
increase of 17.8%.
Youth Services International, Inc. is headquartered in Owings
Mills, Maryland. For more information on YSII at no cost via
facsimile, please dial 1-800-PRO-INFO and enter code 125 or stock
ticker YSII. You may also visit us on the Net at
This press release contains certain forward-looking statements
which involve known and unknown risks, uncertainties or other
factors not under the Company's control which may cause actual
results, performance or achievements of the Company to be
materially different from the result, performance, or other
expectations implied by these forward-looking statements.
YOUTH SERVICES INTERNATIONAL, INC.
Summary Consolidated Statements of Operations
Condensed Balance Sheets and Program Highlights (Unaudited)
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months
Ended
March 31, March 31,
1997 1996 (a) 1997
1996 (a)
Revenues $27,250 $25,309 $84,293
$72,301
Program expenses:
Direct operating 24,151 21,838 72,151
61,850
Amortization of goodwill 596 271 1,606
749
Start-up costs 0 28 142
58
Restructuring charge 27,000 0 27,000
0
Contribution from
operations (24,497) 3,172 (16,606)
9,644
Selling, general and
administrative 2,376 1,246 6,137
4,047
Income (loss) from
operations (26,873) 1,926 (22,743)
5,597
Interest/other expenses (866) (746) (2,516)
(2,169)
Income (loss) before
income taxes (27,739) 1,180 (25,259)
3,428
Net income (loss) (21,359) 635 (19,828)
1,905
Earnings (loss)
per share (b) ($2.19) $0.07 ($2.12)
$0.21
Weighted average
shares outstanding (b) 9,769 9,350 9,333
8,951
CONDENSED BALANCE SHEETS
(in thousands)
As of March 31,
1997 1996
Cash and cash equivalents $7,778 $14,970
Total assets $72,450 $79,792
Long-term debt, capital leases
and subordinated debentures,
net of current maturities $47,108 $46,950
Total liabilities $60,566 $58,494
Shareholders' equity $11,884 $21,298
(a) As restated.
(b) Fully diluted EPS has not been presented as impact is anti-
dilutive.
PROGRAM HIGHLIGHTS
As of and for the As of and
for the
three months ended nine months
ended
March 31, March
31,
1997 1996 1997
1996
Compensated student days
(residential) 210,132 172,215 605,563
501,123
Available student days
(residential) 227,760 198,853 662,620
551,417
Average percent of occupancy 92% 87% 91%
91%
Student census (residential) 2,439 2,090
-- --
Program licensed capacity
(residential) 2,576 2,260
-- --
Occupancy percentage 94.7% 92.5%
-- --
YOUTH SERVICES INTERNATIONAL, INC.
Core Business/Behavioral Health Performance (Fully Loaded)
Fiscal Year 1997 (Through March)
UNAUDITED SELECTED PRO FORMA STATEMENT OF OPERATIONS:
(In thousands, except per share data)
Month of
March 1997
Core Business Beh. Health (a)
Total
Revenues $5,807 $3,617
$9,424
Program Contribution 1,135 217
1,352
% 19.5% 6.0%
14.3%
Income (loss) from operations (b) 568 (27,268)
(26,700)
Net income (loss) (c) 385 (21,406)
(21,018)
Primary earnings (loss) per share $0.04 ($2.15)
($2.11)
EPS Without Restructure
-- -- ($0.01)
Three Months Ended
March 31, 1997
Core Business Beh. Health (a)
Total
Revenues $16,519 $10,731
$27,250
Program Contribution 2,866 233
3,099
% 17.3% 2.2%
11.4%
Income (loss) from operations (b) 879 (27,752)
(26,879)
Net income (loss) (c) 632 (23,507)
(21,359)
Primary earnings (loss) per share $0.06 ($2.41)
($2.19)
EPS Without Restructure
-- -- ($0.05)
Nine Months Ended
March 31, 1997
Core Business Beh. Health (a)
Total
Revenues $48,694 $35,599
$84,293
Program Contribution 8,786 3,356
12,142
% 18.0% 9.4%
14.4%
Income (loss) from operations (b) 3,346 (26,089)
(22,743)
Net income (loss) (c) 2,458 (22,286)
(19,828)
Primary earnings (loss) per share $0.26 ($2.39)
($2.12)
EPS Without Restructure
-- -- $0.11
(a) Includes results (direct & estimated indirect) of nine
programs which
are in the process of being sold.
(b) Includes $27 million restructuring charge
(c) Includes certain assumptions regarding the allocation of S,G
& A and
other non-operating expenses
MARCH 1997 PROGRAM HIGHLIGHTS
Compensated student days 52,689 21,990
74,679
Available student days (residential) 54,963 24,693
79,856
Average percent of occupancy 95.9% 88.3%
93.5%
Student census (residential) 1,698 741
2,439
Program licensed capacity (residential) 1,773 803
2,576
95.8% 92.3%
94.7%
SOURCE Youth Services International, Inc./CONTACT: Joan S.
Stephens, Vice President, Corporate
Relations of Youth Services International, 410-356-8600/