YSI hires consultant to help enhance value

Maryland Watch

June 20, 1998

Less than a month after Youth Services International Inc.'s stock plummeted on the announcement that earnings would fall far below expectations, the company said yesterday that it has hired a consultant to evaluate ways to enhance shareholder value.

YSI, an Owings Mills-based operator of facilities for juvenile offenders, said SunTrust Equitable Securities would study a number of possible actions, including joint ventures, mergers, acquisitions and strategic alliances.

YSI's stock rose 50 cents a share to $8 yesterday, but that is still down considerably from the 52-week high of $20.375 reached April 3.

"Opportunities in the juvenile justice industry remain strong, and we believe YSI's leadership position in the industry is not currently reflected in the company's valuation," said Timothy P. Cole, YSI's chairman and chief executive officer.

The company announced May 28 that it expects earnings to be substantially below expectations of 12 cents a share for the quarter ending June 30 and below expectations of 53 cents a share for the year.

Pub Date: 6/20/98

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