Providence Service Corporation Completes Sale of Mission Providence Joint Venture to Konekt
STAMFORD, Conn., Sept. 29, 2017 (GLOBE NEWSWIRE) -- 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.
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.
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 Contact
Laurence Orton – VP Finance
Source: Providence Service Corporation