Youth Services acquires Community Corrections

MARYLAND WATCH

July 02, 1998

Youth Services International of Owings Mills says it has completed its purchase of Community Corrections Inc., based in Hondo, Texas, in a stock swap valued at $6.75 million.

TC Youth Services operates juvenile-offender facilities in 12 states. The acquisition of Community Corrections will more than double its presence in Texas and take it into Georgia, where Community Corrections has an after-care program for juveniles who have been through the justice system.

Kim Nichols, Youth Services' vice president for finance and investor relations, said the addition of privately held Community Corrections is expected to add up to 6 cents in earnings per share.

In May, after Youth Services announced that its earnings for the quarter that ended June 30 would be far lower than projected, its stock dropped 54 percent, closing at $7.7813. It closed at $8.06 yesterday, down from its 52-week high of $20.375 on April 3.

The company has hired SunTrust Equitable Securities to study ways to boost shareholder value. Possibilities include joint ventures, mergers, acquisitions and strategic alliances.

Pub Date: 7/02/98

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