Wackenhut prison official to be Youth Services' CEO Cole is replacing company's founder

July 12, 1996|By Kevin L. McQuaid | Kevin L. McQuaid,SUN STAFF

Youth Services International Inc. yesterday named as its chief executive officer a top official of a company that operates prisons. He replaces the founder of the Owings Mills-based firm.

The appointment of Timothy P. Cole to supplant founder W. James Hindman comes after a recent plunge in YSI's common stock, from a high of $39.50 per share in April to a closing price yesterday of $17.50 per share.

Five-year-old Youth Services operates 18 residential and community-based centers for 4,000 troubled youths in 11 states.

"I believe Tim Cole demonstrates the ability to lead our company forward and adjust to the challenges presented in today's rapidly changing youth care industry," said Hindman, 60, in a prepared statement.

Hindman will continue as the company's chairman and chair the executive committee of YSI.

Late last month, Youth Services terminated a deal to buy Three Springs Inc. for $14.2 million in stock, after YSI decided the Alabama company's projected earnings did not meet its expectations.

Three Springs, which operates programs for emotionally troubled youths, would have boosted YSI's annual revenues by about $20 million.

In its fiscal third quarter ended in March, YSI reported net income jumped 63 percent to $1.1 million, while sales rose 57 percent to $21.6 million.

Cole joins YSI from Wackenhut Corrections Corp., where he was chairman. He will be succeeded there by George Wackenhut, Wackenhut Corp.'s chairman and chief executive.

Wackenhut Corrections operates prisons for governments in North America, Europe and Australia.

Cole, who will join YSI on Aug. 5, also was named vice chairman of its board.

Neither Hindman nor Cole could be reached for comment on the appointment yesterday.

Pub Date: 7/12/96

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