Youth Services records loss for quarter Owings Mills firm blames acquisition expenses

September 13, 1996|By Bill Atkinson | Bill Atkinson,SUN STAFF

Youth Services International Inc. posted a loss of $238,000, or 2 cents a share, for the fourth quarter because of acquisition-related expenditures, the Owings Mills-based company said yesterday.

The loss compares to an $860,000 profit, or 10 cents a share, for the same quarter a year ago.

Timothy P. Cole, Youth Services' chief executive, said the results for the period ended June 30 were "short of expectations." But he noted that the company's performance is on target if the one-time charges are excluded.

"With the charges we took this quarter the company is in great position," Cole said. "As we move forward, this company has never had the number of opportunities that it has today."

Youth Services operates 18 residential and community-based facilities for about 4,500 troubled youths in 11 states.

The company's stock closed yesterday at $16 a share, down 25 cents.

For all of fiscal 1996, Youth Services earned $2.3 million, or 25 cents a share, up 4.5 percent from the same time in 1995.

Revenues for the year totaled $84.2 million, up nearly 60 percent from the same time in 1995. In the fourth quarter, the company had $22.9 million in revenues, up 49 percent from the same period a year ago.

Fourth-quarter earnings sagged because the company exercised its option to acquire Tucson, Ariz.-based Introspect HealthCare Corp., which had $10.3 million in debt on its books, said William Mooney, Youth Services' chief financial officer.

Mooney said Youth Services paid off the debt, and closed the acquisition Wednesday. As a result of wiping out the debt, Introspect will save $1.2 million in annual interest expenses, Mooney said.

Youth Services also paid $564,000 in fees related to the uncompleted acquisition of Alabama's Three Springs Inc., Mooney said.

Pub Date: 9/13/96

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