States are looking for ways to get steady flows of income and not be subject to managing various state agencies. For example, many states and local municipalities are selling off their toll roads(interestingly it is foreign entities buying them up)to get a income flow, but not the responsibility to maintain these roads. But this isn't the way to play this trend IMO! Sadly, one of the largest growth areas for state funding and management is the child welfare system. With the economy slowing and wages not growing....the end result will be that this area will have added enrollment, thus in a paradoxical way it is a true growth opportunity for companies that are taking over this responsibility from state government. I'm sure there might be several such operations, but the one that is publicly traded and is buying up small mom & pop operations is PRSC. The following is a highlight of their last Q results:
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Providence Service Corporation Announces 30% Revenue Growth in its Second Quarter
Wednesday August 9, 4:05 pm ET
Second Quarter Highlights:
* Total revenue grew 30% to a record $45.8 million
* Organic growth in total revenue of 14%
* Managed entity revenue grew 30% to $48.7 million
* Diluted earnings per share of $0.28 including stock-based compensation and unbudgeted costs associated with a bid on a major new potential contract
* Total client census increased 36% to 43,425 from 31,961
* Sequential growth in net income, total revenue and census was 27%, 6.5%, and 7.6% respectively
* 100% of July 1 contracts offered for renewal |
