TCR_Public/970506.MBX



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InterNet Bankruptcy Library - News for May 6, 1997







Bankruptcy News For May 6, 1997




        
  1. Youth Services International, Inc.
            Announces Third Quarter Results






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 href="www.ysii.com." target=_new>http://www.ysii.com">www.ysii.com.



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/