Providence Service Corporation Completes Sale of Mission Providence Joint Venture to Konekt
29 September 2017 - 10:00PM
The Providence Service Corporation (“Providence”) (Nasdaq:PRSC)
today announced the completion of the sale of Mission Providence
Pty Ltd (“Mission Providence”) to Konekt Limited (“Konekt”), a
market leading provider of return to work solutions throughout
Australia. Mission Providence was formed in 2014 as a joint
venture between Providence and Mission Australia to provide
employment services under the Australian Government Department of
Employment’s jobactive programs.
Konekt has acquired 100% of Mission Providence for total
consideration of approximately USD $22 million. Providence received
75% of the total consideration for its ownership interest in the
joint venture, which, after deducting transaction expenses, equated
to approximately $16 million in net proceeds.
For the twelve months ended December 31, 2016, Mission
Providence generated revenues of USD $37 million and a net loss of
USD $11 million. Providence has historically accounted for
its joint venture interest in Mission Providence as an equity
method investment; thus, the joint ventures financial results are
not consolidated with Providence’s reported revenue, Adjusted
EBITDA, or Adjusted Net Income.
About Providence
The Providence Service Corporation owns interests in
subsidiaries and other companies that are primarily engaged in the
provision of healthcare and workforce development services for
public and private sector entities seeking to control costs and
promote positive outcomes. For more information, please visit
prscholdings.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as “believe,” “demonstrate,” “expect,” “estimate,”
“forecast,” “anticipate,” “should” and “likely” and similar
expressions identify forward-looking statements. In addition,
statements that are not historical should also be considered
forward-looking statements. Readers are cautioned not to place
undue reliance on those forward-looking statements, which speak
only as of the date the statement was made. Such forward-looking
statements are based on current expectations that involve a number
of known and unknown risks, uncertainties and other factors which
may cause actual events to be materially different from those
expressed or implied by such forward-looking statements. These
factors include, but are not limited to, our continuing
relationship with government entities and our ability to procure
business from them, our ability to manage growing and changing
operations, the implementation of healthcare reform law, government
budget changes and legislation related to the services that we
provide, our ability to renew or replace existing contracts that
have expired or are scheduled to expire with significant clients,
and other risks detailed in Providence’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K. Providence is under no obligation to (and
expressly disclaims any such obligation to) update any of the
information in this press release if any forward-looking statement
later turns out to be inaccurate whether as a result of new
information, future events or otherwise.
Investor Relations ContactLaurence Orton – VP
Finance (203) 307-2800
Providence Service (NASDAQ:PRSC)
Historical Stock Chart
From Apr 2024 to May 2024
Providence Service (NASDAQ:PRSC)
Historical Stock Chart
From May 2023 to May 2024