UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report:  August 5, 2008

Date of Earliest Event Reported:  August 5, 2008

 

 

MAXIMUS, INC.

(Exact name of registrant as specified in its charter)

 

Virginia

 

1-12997

 

54-1000588

(State or other jurisdiction

 

(Commission

 

(I.R.S. Employer

of incorporation)

 

File Number)

 

Identification No.)

 

 

 

 

 

11419 Sunset Hills Road,

 

 

Reston, Virginia

 

20190-5207

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code:  (703) 251-8500

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

Item 8.01 Other Events.

 

On April 30, 2008, the Company completed the divestiture of its Security Solutions division which was previously reported as part of its Systems Segment.  On May 2, 2008, the Company completed the sale of its Unison MAXIMUS, Inc. subsidiary which was previously reported as part of its Consulting Segment.  Beginning in the third quarter of fiscal 2008, the Company will classify the results of operations of these business units as discontinued operations.

 

We are filing this Current Report on Form 8-K on August 5, 2008, to reclassify prior periods’ financial information to conform to discontinued operations reporting.  The reclassifications have no impact on the previously reported consolidated net income or cash flows of the Company.  This information is being provided for informational purposes only.

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

MAXIMUS, Inc.

 

 

 

 

 

 

Date:   August 5, 2008

By:

   /s/ David R. Francis

 

 

David R. Francis

 

 

General Counsel and Secretary

 

3


 

MAXIMUS, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

 

 

 

FISCAL YEAR 2007

 

FISCAL YEAR 2008

 

 

 

Dec. 31,

 

Mar. 31,

 

Jun. 30,

 

Sept. 30,

 

Dec. 31,

 

Mar. 31,

 

 

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

21,964

 

$

42,871

 

$

91,105

 

$

70,472

 

$

62,279

 

$

63,420

 

Marketable securities

 

141,811

 

134,409

 

123,737

 

126,210

 

50

 

—

 

Restricted cash

 

312

 

324

 

323

 

325

 

325

 

327

 

Accounts receivable — billed

 

122,672

 

122,179

 

116,397

 

127,288

 

114,489

 

118,344

 

Accounts receivable — unbilled

 

38,583

 

37,999

 

38,967

 

40,912

 

48,729

 

51,126

 

Income taxes receivable

 

11,018

 

3,678

 

3,598

 

—

 

—

 

6,307

 

Deferred income taxes

 

10,690

 

13,704

 

13,932

 

17,409

 

11,267

 

9,490

 

Prepaid expenses and other current assets

 

8,415

 

8,512

 

6,827

 

9,067

 

7,600

 

9,328

 

Current assets of discontinued operations

 

5,689

 

5,669

 

5,465

 

7,054

 

5,908

 

5,620

 

Total current assets

 

361,154

 

369,345

 

400,351

 

398,737

 

250,647

 

263,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

71,000

 

73,314

 

76,462

 

82,248

 

84,755

 

86,129

 

Less accumulated depreciation and amortization

 

(38,334

)

(40,792

)

(43,569

)

(46,592

)

(49,436

)

(52,068

)

Property and equipment, net

 

32,666

 

32,522

 

32,893

 

35,656

 

35,319

 

34,061

 

Capitalized software

 

57,083

 

58,265

 

59,728

 

61,191

 

62,741

 

64,399

 

Less accumulated amortization

 

(25,387

)

(27,441

)

(29,633

)

(31,651

)

(33,435

)

(35,216

)

Capitalized software, net

 

31,696

 

30,824

 

30,095

 

29,540

 

29,306

 

29,183

 

Deferred contract costs, net

 

9,758

 

8,482

 

8,368

 

8,116

 

7,712

 

6,273

 

Goodwill

 

83,509

 

83,509

 

83,576

 

83,576

 

83,576

 

83,576

 

Intangible assets, net

 

4,892

 

4,444

 

3,994

 

3,603

 

3,201

 

2,827

 

Other assets, net

 

3,304

 

3,037

 

2,628

 

2,418

 

3,483

 

3,540

 

Noncurrent assets of discontinued operations

 

2,434

 

2,636

 

2,741

 

2,818

 

2,834

 

2,847

 

Total assets

 

$

529,413

 

$

534,799

 

$

564,646

 

$

564,464

 

$

416,078

 

$

426,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

41,675

 

$

48,667

 

$

47,701

 

$

50,870

 

$

49,264

 

$

50,145

 

Accrued compensation and benefits

 

21,559

 

23,367

 

26,968

 

28,360

 

25,217

 

27,797

 

Current portion of deferred revenue

 

48,032

 

41,269

 

44,843

 

38,404

 

37,361

 

33,078

 

Current portion of income taxes payable

 

—

 

—

 

—

 

5,487

 

1,422

 

—

 

Current portion of capital lease obligations

 

1,707

 

1,594

 

1,742

 

1,627

 

1,643

 

1,238

 

Other accrued liabilities

 

1,071

 

796

 

31,786

 

1,387

 

983

 

996

 

Current liabilities of discontinued operations

 

3,571

 

4,434

 

4,020

 

5,457

 

4,101

 

3,914

 

Total current liabilities

 

117,615

 

120,127

 

157,060

 

131,592

 

119,991

 

117,168

 

Capital lease obligations, less current portion

 

1,643

 

1,239

 

698

 

417

 

—

 

—

 

Deferred revenue, less current portion

 

—

 

—

 

—

 

10,143

 

10,213

 

9,361

 

Income taxes payable, less current portion

 

—

 

—

 

—

 

—

 

2,106

 

2,109

 

Deferred income taxes

 

13,692

 

13,874

 

11,754

 

12,912

 

11,202

 

12,752

 

Total liabilities

 

132,950

 

135,240

 

169,512

 

155,064

 

143,512

 

141,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

283,887

 

286,566

 

298,122

 

299,846

 

305,398

 

309,450

 

Treasury stock

 

(124,637

)

(124,637

)

(124,637

)

(124,637

)

(275,025

)

(275,025

)

Accumulated other comprehensive income

 

300

 

528

 

1,138

 

1,730

 

1,603

 

2,089

 

Retained earnings

 

236,913

 

237,102

 

220,511

 

232,461

 

240,590

 

248,365

 

Total shareholders’ equity

 

396,463

 

399,559

 

395,134

 

409,400

 

272,566

 

284,879

 

Total liabilities and shareholders’ equity

 

$

529,413

 

$

534,799

 

$

564,646

 

$

564,464

 

$

416,078

 

$

426,269

 

 

4


 

MAXIMUS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year

 

 

 

 

 

Six Months

 

 

 

Quarter Ended

 

Ended

 

Quarter Ended

 

Ended

 

 

 

Dec. 31,

 

Mar. 31,

 

Jun. 30,

 

Sept. 30,

 

Sept. 30,

 

Dec. 31,

 

Mar. 31,

 

Mar. 31,

 

 

 

2006

 

2007

 

2007

 

2007

 

2007

 

2007

 

2008

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

154,585

 

$

172,600

 

$

189,673

 

$

194,805

 

$

711,663

 

$

196,586

 

$

204,410

 

$

400,996

 

Cost of revenue

 

136,862

 

131,789

 

133,190

 

141,764

 

543,605

 

145,541

 

152,224

 

297,765

 

Gross profit

 

17,723

 

40,811

 

56,483

 

53,041

 

168,058

 

51,045

 

52,186

 

103,231

 

Selling, general and administrative expenses

 

33,199

 

33,072

 

34,127

 

30,008

 

130,406

 

35,141

 

36,001

 

71,142

 

Gain on sale of building

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Gain (gain adjustment) on sale of Corrections Services business

 

684

 

—

 

(233

)

—

 

451

 

—

 

—

 

—

 

Legal and settlement expense

 

3,000

 

6,104

 

33,010

 

2,524

 

44,638

 

—

 

931

 

931

 

Income (loss) from operations

 

(17,792

)

1,635

 

(10,887

)

20,509

 

(6,535

)

15,904

 

15,254

 

31,158

 

Interest and other income, net

 

477

 

1,615

 

1,131

 

2,581

 

5,804

 

1,501

 

107

 

1,608

 

Income (loss) before income taxes

 

(17,315

)

3,250

 

(9,756

)

23,090

 

(731

)

17,405

 

15,361

 

32,766

 

Provision (benefit) for income taxes

 

(6,254

)

1,302

 

5,074

 

9,731

 

9,853

 

7,159

 

6,056

 

13,215

 

Income (loss) from continuing operations

 

(11,061

)

1,948

 

(14,830

)

13,359

 

(10,584

)

10,246

 

9,305

 

19,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations, net of income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

666

 

414

 

439

 

810

 

2,329

 

359

 

322

 

681

 

Gain on disposal

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Income from discontinued operations

 

666

 

414

 

439

 

810

 

2,329

 

359

 

322

 

681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,395

)

$

2,362

 

$

(14,391

)

$

14,169

 

$

(8,255

)

$

10,605

 

$

9,627

 

$

20,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(0.51

)

$

0.09

 

$

(0.67

)

$

0.60

 

$

(0.48

)

$

0.50

 

$

0.50

 

$

1.00

 

Income from discontinued operations

 

0.03

 

0.02

 

0.02

 

0.04

 

0.10

 

0.02

 

0.02

 

0.04

 

Basic earnings (loss) per share

 

$

(0.48

)

$

0.11

 

$

(0.65

)

$

0.64

 

$

(0.38

)

$

0.52

 

$

0.52

 

$

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(0.51

)

$

0.09

 

$

(0.67

)

$

0.59

 

$

(0.48

)

$

0.49

 

$

0.50

 

$

0.99

 

Income from discontinued operations

 

0.03

 

0.02

 

0.02

 

0.04

 

0.10

 

0.02

 

0.01

 

0.03

 

Diluted earnings (loss) per share

 

$

(0.48

)

$

0.11

 

$

(0.65

)

$

0.63

 

$

(0.38

)

$

0.51

 

$

0.51

 

$

1.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

 

$

0.10

 

$

0.10

 

$

0.10

 

$

0.10

 

$

0.40

 

$

0.10

 

$

0.10

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

21,590

 

21,714

 

21,998

 

22,177

 

21,870

 

20,506

 

18,537

 

19,527

 

Diluted

 

21,590

 

21,972

 

21,998

 

22,554

 

21,870

 

20,854

 

18,763

 

19,803

 

 

5


 

MAXIMUS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year

 

 

 

 

 

Six Months

 

 

 

Quarter Ended

 

Ended

 

Quarter Ended

 

Ended

 

 

 

Dec. 31,

 

Mar. 31,

 

Jun. 30,

 

Sept. 30,

 

Sept. 30,

 

Dec. 31,

 

Mar. 31,

 

Mar. 31,

 

 

 

2006

 

2007

 

2007

 

2007

 

2007

 

2007

 

2008

 

2008

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,395

)

$

2,362

 

$

(14,391

)

$

14,169

 

$

(8,255

)

$

10,605

 

$

9,627

 

$

20,232

 

Adjust to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

(666

)

(414

)

(439

)

(810

)

(2,329

)

(359

)

(322

)

(681

)

Depreciation

 

2,272

 

2,458

 

2,778

 

3,095

 

10,603

 

2,844

 

2,633

 

5,477

 

Amortization

 

2,769

 

2,502

 

2,641

 

2,410

 

10,322

 

2,185

 

2,156

 

4,341

 

Deferred income taxes

 

(5,098

)

(2,832

)

(2,347

)

(2,321

)

(12,598

)

4,195

 

3,327

 

7,522

 

Gain on sale of Corrections Services business

 

(684

)

—

 

233

 

—

 

(451

)

—

 

—

 

—

 

Non-cash equity based compensation

 

1,020

 

381

 

807

 

1,621

 

3,829

 

3,600

 

2,154

 

5,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in assets and liabilities, net of effects from divestitures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable – billed

 

23,686

 

(13

)

5,783

 

(10,891

)

18,565

 

12,799

 

(3,855

)

8,944

 

Accounts receivable – unbilled

 

5,884

 

585

 

(968

)

(1,944

)

3,557

 

(7,817

)

(2,398

)

(10,215

)

Prepaid expenses and other current assets

 

(155

)

(97

)

1,685

 

(2,240

)

(807

)

1,467

 

(1,728

)

(261

)

Deferred contract costs

 

1,407

 

1,276

 

114

 

252

 

3,049

 

404

 

1,439

 

1,843

 

Other assets

 

1,892

 

496

 

1,020

 

960

 

4,368

 

104

 

178

 

282

 

Accounts payable

 

(8,378

)

6,992

 

(966

)

3,169

 

817

 

(1,606

)

882

 

(724

)

Accrued compensation and benefits

 

(1,839

)

1,808

 

3,601

 

1,392

 

4,962

 

(3,144

)

2,580

 

(564

)

Deferred revenue

 

(5,524

)

(6,763

)

3,574

 

3,703

 

(5,010

)

(972

)

(5,136

)

(6,108

)

Income taxes

 

(2,015

)

7,340

 

80

 

9,085

 

14,490

 

(3,141

)

(7,966

)

(11,107

)

Other liabilities

 

867

 

(289

)

30,991

 

(30,402

)

1,167

 

(530

)

498

 

(32

)

Cash provided by (used in) operating activities – continuing operations

 

5,043

 

15,792

 

34,196

 

(8,752

)

46,279

 

20,634

 

4,069

 

24,703

 

Cash provided by operating activities – discontinued operations

 

2,583

 

1,610

 

123

 

595

 

4,911

 

155

 

435

 

590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in) operating activities

 

7,626

 

17,402

 

34,319

 

(8,157

)

51,190

 

20,789

 

4,504

 

25,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of Corrections Services business, net of transaction costs

 

2,171

 

—

 

(300

)

—

 

1,871

 

—

 

—

 

—

 

Purchases of property and equipment

 

(1,914

)

(2,315

)

(3,148

)

(6,020

)

(13,397

)

(2,509

)

(1,373

)

(3,882

)

Capitalized software costs

 

(304

)

(1,181

)

(1,464

)

(1,463

)

(4,412

)

(1,550

)

(1,659

)

(3,209

)

(Increase) decrease in marketable securities

 

(24,496

)

7,402

 

10,672

 

(2,473

)

(8,895

)

126,160

 

50

 

126,210

 

Cash provided by (used in) investing activities – continuing operations

 

(24,543

)

3,906

 

5,760

 

(9,956

)

(24,833

)

122,101

 

(2,982

)

119,119

 

Cash (used in) investing activities – discontinued operations

 

(4

)

(9

)

—

 

(8

)

(21

)

(24

)

(23

)

(47

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in) investing activities

 

(24,547

)

3,897

 

5,760

 

(9,964

)

(24,854

)

122,077

 

(3,005

)

119,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee stock transactions

 

1,526

 

1,892

 

8,389

 

1,146

 

12,953

 

1,655

 

1,619

 

3,274

 

Repurchases of common stock

 

—

 

—

 

—

 

—

 

—

 

(150,388

)

—

 

(150,388

)

Payments on capital lease obligations

 

(384

)

(517

)

(393

)

(396

)

(1,690

)

(401

)

(404

)

(805

)

Tax benefit due to option exercises and restricted stock units vesting

 

357

 

405

 

2,359

 

(1,043

)

2,078

 

297

 

279

 

576

 

Cash dividends paid

 

(2,159

)

(2,172

)

(2,200

)

(2,219

)

(8,750

)

(2,222

)

(1,852

)

(4,074

)

Cash provided by (used in) financing activities – continuing operations

 

(660

)

(392

)

8,155

 

(2,512

)

4,591

 

(151,059

)

(358

)

(151,417

)

Cash provided by (used in) financing activities – discontinued operations

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in) financing activities

 

(660

)

(392

)

8,155

 

(2,512

)

4,591

 

(151,059

)

(358

)

(151,417

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(17,581

)

20,907

 

48,234

 

(20,633

)

30,927

 

(8,193

)

1,141

 

(7,052

)

Cash and cash equivalents, beginning of period

 

39,545

 

21,964

 

42,871

 

91,105

 

39,545

 

70,472

 

62,279

 

70,472

 

Cash and cash equivalents, end of period

 

$

21,964

 

$

42,871

 

$

91,105

 

$

70,472

 

$

70,472

 

$

62,279

 

$

63,420

 

$

63,420

 

 

6


 

MAXIMUS, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year

 

 

 

 

 

Six Months

 

 

 

Quarter Ended

 

Ended

 

Quarter Ended

 

Ended

 

 

 

Dec. 31,

 

Mar. 31,

 

Jun. 30,

 

Sept. 30,

 

Sept. 30,

 

Dec. 31,

 

Mar. 31,

 

Mar. 31,

 

 

 

2006

 

2007

 

2007

 

2007

 

2007

 

2007

 

2008

 

2008

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

$

20,800

 

$

19,606

 

$

19,218

 

$

18,678

 

$

78,302

 

$

18,628

 

$

16,882

 

$

35,510

 

Systems

 

30,955

 

31,603

 

30,178

 

33,139

 

125,875

 

31,151

 

26,546

 

57,697

 

Operations

 

102,830

 

121,391

 

140,277

 

142,988

 

507,486

 

146,807

 

160,982

 

307,789

 

Total

 

154,585

 

172,600

 

189,673

 

194,805

 

711,663

 

196,586

 

204,410

 

400,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

9,305

 

8,194

 

8,916

 

6,030

 

32,445

 

7,295

 

6,001

 

13,296

 

Systems

 

7,373

 

8,716

 

7,207

 

9,431

 

32,727

 

8,193

 

4,019

 

12,212

 

Operations

 

1,045

 

23,901

 

40,360

 

37,580

 

102,886

 

35,557

 

42,166

 

77,723

 

Total

 

17,723

 

40,811

 

56,483

 

53,041

 

168,058

 

51,045

 

52,186

 

103,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General, and Administrative expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

7,367

 

7,486

 

7,324

 

6,137

 

28,314

 

6,849

 

7,036

 

13,885

 

Systems

 

9,242

 

9,046

 

11,117

 

9,721

 

39,126

 

11,298

 

10,407

 

21,705

 

Operations

 

17,041

 

16,781

 

15,794

 

13,954

 

63,570

 

16,764

 

18,465

 

35,229

 

Corporate/Other

 

(451

)

(241

)

(108

)

196

 

(604

)

230

 

93

 

323

 

Total

 

33,199

 

33,072

 

34,127

 

30,008

 

130,406

 

35,141

 

36,001

 

71,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

1,938

 

708

 

1,592

 

(107

)

4,131

 

446

 

(1,035

)

(589

)

Systems

 

(1,869

)

(330

)

(3,910

)

(290

)

(6,399

)

(3,105

)

(6,388

)

(9,493

)

Operations

 

(15,996

)

7,120

 

24,566

 

23,626

 

39,316

 

18,793

 

23,701

 

42,494

 

Consolidating adjustments

 

451

 

241

 

108

 

(196

)

604

 

(230

)

(93

)

(323

)

Gain (gain adjustment) on sale of Corrections Services business

 

684

 

—

 

(233

)

—

 

451

 

—

 

—

 

—

 

Legal and settlement expense

 

(3,000

)

(6,104

)

(33,010

)

(2,524

)

(44,638

)

—

 

(931

)

(931

)

Total

 

$

(17,792

)

$

1,635

 

$

(10,887

)

$

20,509

 

$

(6,535

)

$

15,904

 

$

15,254

 

$

31,158

 

 

7