Profit is up for Youth Services 1st-quarter earnings more than doubled

November 09, 1995|By Ellen James Martin | Ellen James Martin,SUN STAFF

With states more willing to place troubled youths in for-profit centers, first-quarter earnings rose for Youth Services International Inc., the Owings Mills company reported yesterday.

"We're certainly having a lot of success in marketing our services," said Joan Stephens, a Youth Services vice president.

Net income for the quarter ended Sept. 30 was $635,000 or 11 cents per share. That compared with $314,000, or 6 cents per share, for the same period last year.

Operating revenues rose 74 percent to $19.3 million for the quarter, compared with $11.1 million for the same period last year.

The company's programs primarily serve young people ages 10 to 18 who have committed juvenile offenses, have behavioral problems or have other needs.

During the fiscal year ended June 30, the company served 2,500 young people compared with 4,000 students at present.

The company now operates residential and nonresidential facilities for students from 35 states.

During the past fiscal year, it acquired five facilities for troubled youth in the southwestern part of the United States, said William P. Mooney, the company's chief financial officer.

Youth Services International Inc. now runs 18 programs in Arizona, Iowa, Maryland, Missouri, Nevada, New Mexico, South Dakota, Tennessee, Texas and Utah. One of its local programs is the Charles H. Hickey Jr. School, a residential center for juvenile offenders, in the Parkville area of Baltimore County.

Like many of the company's residential programs, the Hickey school serves "adjudicated" youth who have gone through the juvenile court system and been placed there by the state.

"We're seeing more and more judges making placements to our facilities vs. state-run or nonprofit facilities," said Ms. Stephens.

Yesterday, the company's stock closed at $13.625, up 62.5 cents on the Nasdaq stock market.

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