Exhibit 99.1
Providence Service Corporation ReportsFirst Quarter 2016 Results
| | ● | First quarter revenue of $432.7 million |
| | ● | First quarter Adjusted EBITDA (non-GAAP) of $25.3 million |
| | ● | First quarter diluted EPS of $0.07, Adjusted EPS (non-GAAP) of $0.48 |
STAMFORD, CT–May 5, 2016– The Providence Service Corporation (the “Company”) (Nasdaq: PRSC), a holding company whose subsidiaries provide critical healthcare and workforce development services, today reported financial results for the first quarter ended March 31, 2016.
“We are pleased with our first quarter results and the progress made by our vertical leadership teams towards their strategic objectives,” said James Lindstrom, President and Chief Executive Officer. “Consistent with our goal of creating value for both clients and stockholders, we deployed significant resources in such areas as new contracts, service delivery optimization and business development as well as capital in share repurchases.”
FirstQuarter 2016 Results
For the first quarter of 2016, the Company reported consolidated revenue of $432.7 million, an increase of 3.1% from $419.8 million in the first quarter of 2015.
Income from continuing operations, net of tax, in the first quarter of 2016 was $2.1 million, or $0.07 per diluted common share, compared to $5.9 million, or $0.30 per diluted common share, in the first quarter of 2015. Adjusted Net Income (non-GAAP) in the first quarter of 2016 was $9.3 million, or $0.48 per diluted common share, compared to $14.2 million, or $0.78 per diluted common share, in the first quarter of 2015. Income from continuing operations, net of tax, in the first quarter of 2016 included a $2.7 million loss on WD Services’ equity investment in Mission Providence.
Adjusted EBITDA (non-GAAP) for the first quarter of 2016 was $25.3 million, compared to $33.0 million in the first quarter of 2015. The negative impact of Mission Providence to Adjusted EBITDA (non-GAAP) in the first quarter of 2016 was $3.1 million.
During the first quarter of 2016, the Company repurchased 435,735 common shares for $19.5 million, or for an average price of $44.71 per share. After giving effect to these repurchases, $45.4 million of additional repurchase capacity remains under the Company’s $70.0 million share repurchase program.
A reconciliation of Adjusted EBITDA and Adjusted Net Income to income from continuing operations, net of tax, and the calculation of Adjusted EPS are presented below.
Segment Results
For analysis purposes, we provide revenue, expenses, operating income (loss), income (loss) from continuing operations, net of taxes, and Adjusted EBITDA (non-GAAP) on a segment basis. Segment results include revenue and expenses incurred by the segment, as well as an allocation of direct expenses incurred by Corporate on behalf of the segment. Indirect expenses, including unallocated corporate functions and expenses, such as executive, finance, human resources, information technology and legal, as well as the results of our captive insurance company and elimination entries recorded in consolidation are reflected in Corporate and Other.
US Healthcare Services
NET Services
NET Services revenue was $291.0 million for the first quarter of 2016, an increase of 14.2% compared to the first quarter of 2015. Operating income was $18.3 million, or 6.3% of revenue, in the first quarter of 2016, compared to $20.7 million, or 8.1% of revenue, in the first quarter of 2015. Adjusted EBITDA (non-GAAP) was $21.2 million, or 7.3% of revenue, in the first quarter of 2016, compared to $23.0 million, or 9.0% of revenue, in the first quarter of 2015.
NET Services 2016 revenue was favorably impacted by new contracts that commenced in 2015 as well as increased membership and favorable rate adjustments in certain existing markets. Adjusted EBITDA (non-GAAP) as a percentage of revenue declined as a result of increased utilization and additional compensation expense related to historical and current long-term incentive plans tied to value creation.
HA Services
HA Services revenue was $50.6 million in the first quarter of 2016, a decrease of 11.9% compared to the first quarter of 2015. Operating income was $4.4 million, or 8.6% of revenue, in the first quarter of 2016, compared to $6.5 million, or 11.3% of revenue, in the first quarter of 2015. Adjusted EBITDA (non-GAAP) was $12.1 million, or 24.0% of revenue, in the first quarter of 2016, compared to $13.7 million, or 23.8% of revenue, in the first quarter of 2015.
The decrease in HA Services revenue in the first quarter of 2016 was primarily due to reduced annual volume demand from a single large client and a different quarterly phasing of demand in 2016 as compared to 2015. Partially offsetting this decline in revenue was increased demand from other clients. Adjusted EBITDA (non-GAAP) as a percentage of revenue increased primarily due to a decrease in direct costs per health assessment, partially offset by additional compensation related to a long-term incentive plan for management put into place in the fourth quarter of 2015.
Global Workforce Development
WD Services
WD Services revenue for the first quarter of 2016 was $91.0 million, a decrease of 15.4% compared to the first quarter of 2015. WD Services incurred an operating loss of $2.1 million in the first quarter of 2016, compared to operating income of $2.8 million in the first quarter of 2015. The operating loss in the first quarter of 2016 included $1.4 million of redundancy costs related to service delivery redesigns and the anticipated closure of the segment’s operations in Poland. Redundancy costs are excluded from the calculation of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS.
Prior to the impact of the Mission Providence joint venture, WD Services Adjusted EBITDA (non-GAAP) was $2.9 million, or 3.2% of revenue, in the first quarter of 2016 compared to $8.9 million, or 8.3% of revenue, in the first quarter of 2015. The Adjusted EBITDA (non-GAAP) associated with Mission Providence was negative $3.1 million in the first quarter of 2016 and negative $3.5 million in the first quarter of 2015.
The decrease in WD Services revenue for the first quarter of 2016 was primarily due to an anticipated decline in referrals and an altered pricing structure under the segment’s primary employability program in the United Kingdom. The decline in Adjusted EBITDA (non-GAAP) at WD Services in the first quarter of 2016 was due to these referral declines and pricing changes as well as the timing of recognition of an annual incentive fee under this same employability program. This incentive fee was recognized in the first quarter of 2015 but is expected to be recognized in a later quarter in 2016.
Corporate and Other
Corporate and Other incurred an operating loss of $7.9 million in the first quarter of 2016 compared to an operating loss of $9.3 million in the first quarter of 2015. Adjusted EBITDA (non-GAAP) was negative $7.8 million in the first quarter of 2016 compared to negative $9.0 million in the first quarter of 2015. This improvement in Adjusted EBITDA (non-GAAP) was primarily due to decreased stock-based compensation and insurance expense, partially offset by $1.2 million of non-recurring expenses resulting from the sale of the Human Services segment in 2015.
Conference Call
Providence will hold a conference call at 8:00 a.m. EST Friday, May 6, 2016 to discuss its financial results and corporate developments. Interested parties are invited to listen to the call live at http://investor.prscholdings.com or by dialing(855) 548-8661, or for international callers (412) 455-6143, and using the passcode 1349659. A replay of the teleconference will be available on http://investor.prscholdings.com. A replay will also be available until May 20, 2016 by dialing (855) 859-2056 or (404) 537-3406 and using passcode 1349659.
About Providence
The Providence Service Corporation is a holding company whose subsidiaries provide critical healthcare and workforce development services, comprised of non-emergency transportation services, workforce development services, legal offender rehabilitation services, health assessment services, and care management services in the United States and abroad. For more information, please visit prscholdings.com.
Non-GAAPFinancial Measures and Adjustments
In addition to the financial results prepared in accordance with US generally accepted accounting principles (GAAP), this press release includes EBITDA and Adjusted EBITDA for the Company and our operating segments and Adjusted Net Income and Adjusted EPS for the Company, which are financial measures that are not recognized under GAAP. EBITDA is defined as income (loss) from continuing operations, before: (1) interest expense, net, (2) provision (benefit) for income taxes and (3) depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before certain infrequently occurring items, including restructuring and termination costs and foreign currency adjustments. Adjusted Net Income is defined as income from continuing operations, net of tax before: (1) net loss (income) attributable to non-controlling interests, (2) certain infrequently occurring items, including restructuring and termination costs, and foreign currency adjustments, (3) intangible amortization expense and (4) the income tax impact of such adjustments. Adjusted EPS is calculated as Adjusted Net Income less (as applicable): (1) dividends on convertible preferred stock, (2) accretion of convertible preferred stock discount and (3) income allocated to participating stockholders, divided by the diluted weighted-average number of common shares outstanding. We utilize these non-GAAP measurements, which exclude certain expenses, because we believe the timing of such expenses is unpredictable and not driven by our core operating results, and therefore render comparisons with prior periods as well as with other companies in our industry less meaningful. We believe such measures allow investors to gain a better understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, for which capital investments are made and debt is serviced.
Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on our reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation from or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. We urge you to review the reconciliations of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
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 the healthcare reform law, state budget changes and legislation and other risks detailed in Providence’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and subsequent filings. 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
David Shackelton – Chief Financial Officer
(520) 747-6600
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Providence Service Corporation
Page 4
The Providence Service Corporation
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(Unaudited)
| | | Three months ended | |
| | | March 31, | |
| | | 2016 | | | 2015 | |
| | | | | | | | | |
Service revenue, net | | $ | 432,650 | | | $ | 419,829 | |
| | | | | | | | | |
Operating expenses: | | | | | | | | |
Service expense | | | 386,488 | | | | 366,537 | |
General and administrative expense | | | 19,172 | | | | 19,466 | |
Depreciation and amortization | | | 14,336 | | | | 13,053 | |
| | | | | | | | | |
Total operating expenses | | | 419,996 | | | | 399,056 | |
| | | | | | | | | |
Operating income | | | 12,654 | | | | 20,773 | |
| | | | | | | | | |
Other expenses: | | | | | | | | |
Interest expense, net | | | 3,635 | | | | 5,195 | |
Equity in net loss of investee | | | 2,717 | | | | 2,483 | |
Loss (gain) on foreign currency transactions | | | (75 | ) | | | 319 | |
Income from continuing operationsbefore income taxes | | | 6,377 | | | | 12,776 | |
Provision for income taxes | | | 4,248 | | | | 6,921 | |
Income from continuing operations, net of tax | | | 2,129 | | | | 5,855 | |
Discontinued operations, net of tax | | | - | | | | 394 | |
Net income | | | 2,129 | | | | 6,249 | |
Net loss (income) attributable to noncontrolling interests | | | 106 | | | | (12 | ) |
Net income attributable to Providence | | $ | 2,235 | | | $ | 6,237 | |
| | | | | | | | | |
Net income available to common stockholders | | $ | 1,002 | | | $ | 5,092 | |
| | | | | | | | | |
Basic earnings per common share: | | | | | | | | |
Continuing operations | | $ | 0.07 | | | $ | 0.30 | |
Discontinued operations | | | - | | | | 0.02 | |
Basic earnings per common share | | $ | 0.07 | | | $ | 0.32 | |
| | | | | | | | | |
Diluted earnings per common share: | | | | | | | | |
Continuing operations | | $ | 0.07 | | | $ | 0.30 | |
Discontinued operations | | | - | | | | 0.02 | |
Diluted earnings per common share | | $ | 0.07 | | | $ | 0.32 | |
| | | | | | | | | |
Weighted-average number of commonshares outstanding: | | | | | | | | |
Basic | | | 15,057,598 | | | | 15,976,050 | |
Diluted | | | 15,185,548 | | | | 16,145,176 | |
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Providence Service Corporation
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The Providence Service Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
| | | March 31,
2016 | | | December 31,
2015 | |
Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 95,217 | | | $ | 84,770 | |
Accounts receivable, net of allowance | | | 153,940 | | | | 178,049 | |
Other current assets (1) | | | 56,330 | | | | 56,905 | |
Total current assets | | | 305,487 | | | | 319,724 | |
Property and equipment, net | | | 61,419 | | | | 57,787 | |
Goodwill and intangible assets, net | | | 614,955 | | | | 625,980 | |
Other long-term assets (2) | | | 43,990 | | | | 46,711 | |
Total assets | | $ | 1,025,851 | | | $ | 1,050,202 | |
Liabilities and stockholders' equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Current portion of long-term obligations | | $ | 33,313 | | | $ | 31,375 | |
Other current liabilities (3) | | | 250,273 | | | | 263,897 | |
Total current liabilities | | | 283,586 | | | | 295,272 | |
Long-term obligations, less current portion | | | 274,540 | | | | 268,696 | |
Other long-term liabilities (4) | | | 119,216 | | | | 118,526 | |
Total liabilities | | | 677,342 | | | | 682,494 | |
Mezzanine and stockholders' equity | | | | | | | | |
Convertible preferred stock, net | | | 77,576 | | | | 77,576 | |
Stockholders' equity | | | 270,933 | | | | 290,132 | |
Total liabilities and stockholders' equity | | $ | 1,025,851 | | | $ | 1,050,202 | |
(1) Comprised of other receivables, restricted cash, deferred tax assets and prepaid expenses and other.
(2) Comprised of restricted cash less current portion, deferred tax assets and other assets.
(3) Comprised of accounts payable, accrued expenses, accrued transportation costs, deferred revenue and reinsurance liability reserves.
(4) Includes deferred tax liabilities and other long-term liabilities.
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Providence Service Corporation
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The Providence Service Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
| | | Three months ended March 31, | |
| | | 2016 | | | 2015(1) | |
Operating activities | | | | | | | | |
Net income | | $ | 2,129 | | | $ | 6,249 | |
Depreciation and amortization | | | 14,336 | | | | 14,900 | |
Stock based compensation | | | 612 | | | | 2,864 | |
Equity in net loss of investee | | | 2,717 | | | | 2,483 | |
Other non-cash charges | | | (3,012 | ) | | | (2,044 | ) |
Changes in working capital (2) | | | 46,189 | | | | (9,062 | ) |
Income taxes payable on sale of business | | | (28,337 | ) | | | - | |
Net cash provided by operating activities | | | 34,634 | | | | 15,390 | |
Investing activities | | | | | | | | |
Purchase of property and equipment | | | (9,814 | ) | | | (6,394 | ) |
Acquisition of businesses, net of cash acquired | | | - | | | | (1,665 | ) |
Equity investments | | | (3,229 | ) | | | - | |
Other investing activities | | | 2,509 | | | | 689 | |
Net cash used in investing activities | | | (10,534 | ) | | | (7,370 | ) |
Financing activities | | | | | | | | |
Proceeds from issuance of preferred stock, net of issuance costs | | | - | | | | 80,667 | |
Preferred stock dividends | | | (1,099 | ) | | | (594 | ) |
Repurchase of common stock, for treasury | | | (19,579 | ) | | | (721 | ) |
Net, proceeds (repayment) of long-term debt | | | 7,250 | | | | (71,312 | ) |
Other financing activities | | | 217 | | | | (3,307 | ) |
Net cash (used in) provided by financing activities | | | (13,211 | ) | | | 4,733 | |
Effect of exchange rate changes on cash | | | (442 | ) | | | (3,029 | ) |
Net change in cash | | | 10,447 | | | | 9,724 | |
Cash at beginning of period | | | 84,770 | | | | 160,406 | |
Cash at end of period | | $ | 95,217 | | | $ | 170,130 | |
(1) Includes both continuing and discontinued operations.
(2) Comprised of changes in accounts receivable, other receivables, restricted cash, prepaid expenses, accounts payable, accrued expenses, accrued transportation costs, deferred revenue and other liabilities.
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Providence Service Corporation
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The Providence Service Corporation
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA and Segment Information
(in thousands)
(Unaudited)
| | | Three Months Ended March 31, 2016 | |
| | | NET Services | | | WD Services | | | HA Services | | | Corporate and Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | |
Service revenue, net | | $ | 290,984 | | | $ | 91,043 | | | $ | 50,592 | | | $ | 31 | | | $ | 432,650 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Service expense | | | 266,969 | | | | 81,672 | | | | 37,790 | | | | 57 | | | | 386,488 | |
General and administrative expense | | | 2,837 | | | | 7,871 | | | | 656 | | | | 7,808 | | | | 19,172 | |
Depreciation and amortization | | | 2,877 | | | | 3,579 | | | | 7,796 | | | | 84 | | | | 14,336 | |
Total operating expenses | | | 272,683 | | | | 93,122 | | | | 46,242 | | | | 7,949 | | | | 419,996 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 18,301 | | | | (2,079 | ) | | | 4,350 | | | | (7,918 | ) | | | 12,654 | |
| | | | | | | | | | | | | | | | | | | | | |
Other expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (1 | ) | | | 33 | | | | (2 | ) | | | 3,605 | | | | 3,635 | |
Equity in net loss of investee | | | - | | | | 2,717 | | | | - | | | | - | | | | 2,717 | |
Loss (gain) on foreign currency transactions | | | - | | | | (75 | ) | | | - | | | | - | | | | (75 | ) |
Income (loss) from continuing operations,before income tax | | | 18,302 | | | | (4,754 | ) | | | 4,352 | | | | (11,523 | ) | | | 6,377 | |
Provision (benefit) for income taxes | | | 7,150 | | | | (181 | ) | | | 1,684 | | | | (4,405 | ) | | | 4,248 | |
Income (loss) from continuing operations, net of taxes | | | 11,152 | | | | (4,573 | ) | | | 2,668 | | | | (7,118 | ) | | | 2,129 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (1 | ) | | | 33 | | | | (2 | ) | | | 3,605 | | | | 3,635 | |
Provision (benefit) for income taxes | | | 7,150 | | | | (181 | ) | | | 1,684 | | | | (4,405 | ) | | | 4,248 | |
Depreciation and amortization | | | 2,877 | | | | 3,579 | | | | 7,796 | | | | 84 | | | | 14,336 | |
EBITDA | | | 21,178 | | | | (1,142 | ) | | | 12,146 | | | | (7,834 | ) | | | 24,348 | |
| | | | | | | | | | | | | | | | | | | | | |
WD Services adjustments (1) | | | - | | | | 979 | | | | - | | | | - | | | | 979 | |
Adjusted EBITDA | | $ | 21,178 | | | $ | (163 | ) | | $ | 12,146 | | | $ | (7,834 | ) | | $ | 25,327 | |
(1) Includes expense related to redundancy costs of $1,392, income tax benefit and D&A included within equity in net loss of investee of ($338), and gain on foreign currency transactions of ($75).
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Providence Service Corporation
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The Providence Service Corporation
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA and Segment Information
(in thousands)
(Unaudited)
| | | Three Months Ended March 31, 2015 (1) | |
| | | NET Services | | | WD Services | | | HA Services | | | Corporate and Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | |
Service revenue, net | | $ | 254,760 | | | $ | 107,618 | | | $ | 57,432 | | | $ | 19 | | | $ | 419,829 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Service expense | | | 229,247 | | | | 94,232 | | | | 43,213 | | | | (155 | ) | | | 366,537 | |
General and administrative expense | | | 2,497 | | | | 7,225 | | | | 523 | | | | 9,221 | | | | 19,466 | |
Depreciation and amortization | | | 2,277 | | | | 3,316 | | | | 7,182 | | | | 278 | | | | 13,053 | |
Total operating expenses | | | 234,021 | | | | 104,773 | | | | 50,918 | | | | 9,344 | | | | 399,056 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 20,739 | | | | 2,845 | | | | 6,514 | | | | (9,325 | ) | | | 20,773 | |
| | | | | | | | | | | | | | | | | | | | | |
Other expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (1 | ) | | | - | | | | (4 | ) | | | 5,201 | | | | 5,195 | |
Equity in net loss of investee | | | - | | | | 2,483 | | | | - | | | | - | | | | 2,483 | |
Loss (gain) on foreign currency transactions | | | - | | | | 319 | | | | - | | | | - | | | | 319 | |
Income (loss) from continuing operations,before income tax | | | 20,740 | | | | 43 | | | | 6,518 | | | | (14,526 | ) | | | 12,776 | |
Provision (benefit) for income taxes | | | 8,129 | | | | 2,426 | | | | 2,672 | | | | (6,306 | ) | | | 6,921 | |
Income (loss) from continuing operations, net of taxes | | | 12,611 | | | | (2,383 | ) | | | 3,846 | | | | (8,220 | ) | | | 5,855 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (1 | ) | | | - | | | | (4 | ) | | | 5,201 | | | | 5,195 | |
Provision (benefit) for income taxes | | | 8,129 | | | | 2,426 | | | | 2,672 | | | | (6,306 | ) | | | 6,921 | |
Depreciation and amortization | | | 2,277 | | | | 3,316 | | | | 7,182 | | | | 278 | | | | 13,053 | |
EBITDA | | | 23,016 | | | | 3,359 | | | | 13,696 | | | | (9,047 | ) | | | 31,024 | |
| | | | | | | | | | | | | | | | | | | | | |
WD Services adjustments (2) | | | - | | | | 1,996 | | | | - | | | | - | | | | 1,996 | |
Adjusted EBITDA | | $ | 23,016 | | | $ | 5,355 | | | $ | 13,696 | | | $ | (9,047 | ) | | $ | 33,020 | |
(1) Beginning in the fourth quarter of 2015, the Company began including in the calculation of WD Services Adjusted EBITDA expenses related to restricted shares and cash placed into escrow accounts at the time of the Ingeus acquisition as well as redundancy costs associated with WD Services. The Company has updated the 2015 quarterly presentations of Adjusted EBITDA to be consistent with these changes.
(2) Includes expense related to restricted shares and cash placed into escrow at the time of the Ingeus acquisition of $1,989, redundancy costs of $750, income tax benefit and D&A included within equity in net loss of investee of ($1,062), and loss on foreign currency transactions of $319.
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Providence Service Corporation
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The Providence Service Corporation
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income and Adjusted Net Income per Common Share
(in thousands, except share and per share data)
(Unaudited)
| | | Three months ended March 31, | |
| | | 2016 | | | 2015 | |
| | | | | | | | | |
Income from continuing operations, net of tax | | $ | 2,129 | | | $ | 5,855 | |
Net loss (income) attributable to noncontrolling interests | | | 106 | | | | (12 | ) |
| | | | | | | | | |
WD Services adjustments | | | 1,785 | (1) | | | 3,058 | (2) |
Intangible amortization expense | | | 8,815 | | | | 8,843 | |
Tax effected impact of adjustments | | | (3,490 | ) | | | (3,593 | ) |
| | | | | | | | | |
Adjusted Net Income | | | 9,345 | | | | 14,151 | |
| | | | | | | | | |
Dividends on convertible preferred stock | | | (1,099 | ) | | | (594 | ) |
Less: Accretion of convertibe preferred stock discount | | | - | | | | (246 | ) |
Income allocated to participating securities | | | (973 | ) | | | (751 | ) |
Adjusted Net Income available to common stockholders | | $ | 7,273 | | | $ | 12,560 | |
| | | | | | | | | |
Adjusted Net Income per common share | | $ | 0.48 | | | $ | 0.78 | |
| | | | | | | | | |
Diluted weighted-average number of common shares outstanding | | | 15,185,548 | | | | 16,145,176 | |
(1) WD Services adjustments include redundancy costs of $1,392, amortization expense included within equity in net loss of investee of $468, and gain on foreign currency transactions of ($75).
(2) WD Services adjustments include expense related to restricted shares and cash placed into escrow at the time of the Ingeus acquisition of $1,989, redundancy costs of $750, and loss on foreign currency transactions of $319. There was no amortization expense included within equity in net loss of investee during the first quarter of 2015.
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