LOUISVILLE, Ky., Nov. 4, 2010 (GLOBE NEWSWIRE) -- ResCare, Inc. (Nasdaq:RSCR) today announced results for the third quarter and nine months ended September 30, 2010.
Third Quarter 2010 Financial Results
Revenues for the third quarter of 2010 were $403.7 million, an increase of 2% over revenues of $395.8 million for the same period in 2009. During the third quarter of 2010, the Company recorded an estimated pre-tax, non-cash charge of $65.6 million ($50.1 million, net of tax, or $1.73 per diluted common share) as a result of the impairment of goodwill at three of its reporting units. The Company also incurred pre-tax costs of approximately $2.0 million ($1.2 million, net of tax, or $0.04 per diluted share) related to the pending transaction with an affiliate of Onex Corporation. Net loss attributable to common shareholders was $41.9 million, or $1.45 per diluted common share, for the third quarter of 2010, compared with net income attributable to common shareholders of $10.0 million, or $0.35 per diluted common share, in the same period of 2009.
Adjusted net income attributable to common shareholders, which excludes the aforementioned impairment charge and transaction costs, was $8.1 million, or $0.28 per diluted common share, in the third quarter of 2010. Adjusted EBITDA for the third quarter of 2010 was $26.6 million compared with $29.1 million in the prior year quarter.
Ralph G. Gronefeld, Jr., president and chief executive officer, said, "We made progress in the reorganization of our business lines to better reflect our company's growth initiatives, but it is an ongoing process. We stood our ground financially in one of the most challenging economic times that has brought news just about every week this year of proposed state budget or service cuts. I must commend our leadership and all our employees for their continued focus on our mission. We are committed to being a partner with our customers and to finding the most effective, efficient ways to provide the much needed services our constituencies rely upon."
Although operations continue to perform in line with ResCare's expectations, the Company announced that, based on the uncertainty of potential adjustments to the goodwill impairment charge in the fourth quarter, it is withdrawing its previously issued earnings guidance for 2010.
A listen only simulcast of ResCare's third quarter 2010 conference call will be available online at on November 5, 2010, beginning at 9:00 a.m. Eastern Time and a replay available at 11:00 a.m. Eastern Time.
ResCare, with more than 35 years of experience helping people reach their highest level of independence, is one of the largest providers of home care to the elderly and persons with disabilities. It also offers residential and support services to people with intellectual and developmental disabilities and provides education, vocational training and job placement for people of all ages and skill levels. Based in Louisville, Kentucky, ResCare and its nearly 50,000 dedicated employees serve more than a million people a year in 41 states, Washington, D.C., Puerto Rico and a number of international locations. For more information about ResCare, please visit the Company's website at .
From time to time, ResCare makes forward-looking statements in its public disclosures, including statements relating to expected financial results, revenues that might be expected from new or acquired programs and facilities, its development and acquisition activities, reimbursement under federal and state programs, financing plans, compliance with debt covenants and other risk factors, and various trends favoring privatization of government programs. In ResCare's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause its actual results to differ materially from those anticipated in forward-looking statements. Please refer to the discussion of those factors in the Company's filed reports. Statements related to expected financial results are as of this date only, and ResCare does not assume any responsibility to update these statements.
This announcement and the description contained herein are for informational purposes only and are not an offer to purchase or a solicitation of an offer to sell securities of the Company. The tender offer in connection with the Onex transaction is being made only pursuant to the Offer to Purchase, Letter of Transmittal and related materials that Onex Rescare Acquisition, LLC filed with the SEC on a combined Tender Offer Statement on Schedule TO and Transaction Statement on Schedule 13E‑3 on October 7, 2010, as amended. In addition, ResCare filed a Solicitation/Recommendation Statement on Schedule 14D‑9 and Transaction Statement on Schedule 13E-3 with respect to the tender offer on October 7, 2010. ResCare shareholders should read these materials and any related amendments carefully because these documents contain important information, including the terms and conditions of the offer. These documents may be obtained for free at the SEC's website at . ResCare shareholders may also obtain these documents for free by calling Georgeson Inc., the information agent for the tender offer, at 1-866-203-9357. Shareholders can obtain these documents when they are filed and become available free of charge from the SEC's website at . In addition, copies of the solicitation/recommendation statement, the proxy statement and other filings containing information about the Company, the tender offer and the share exchange may be obtained, if and when available, without charge, by directing a request to Res-Care, Inc. Attention: David Miles, Chief Financial Officer at 502-394-2137, or on the Company's corporate website at .
CONTACT: ResCare, Inc. David W. Miles, Chief Financial Officer 502-394-2137