Treatment Abuse, Behavior Modification, Thought Reform > Three Springs
SEQUEL YOUTH & FAMILY SERVICES acquires THREE SPRINGS
Ursus:
Che, would you care to comment on Youth Services International Inc. prior ownership of Three Springs? Your insight would be greatly appreciated.
The top two players in Sequel Youth and Family Services are former YSI people, namely Jay Ripley (SFYS Chairman) and Adam Shapiro (SFYS CEO). In fact, it made me wonder just how they came up with the "Sequel" name, i.e., whether SFYS is supposed to be some sort of sequel to YSI. :D
Here's when the proposed YSI acquisition of Three Springs was announced:
-------------- • -------------- • --------------
The Baltimore Sun
Youth Services shares rise on acquisition Owings Mills firm buying Ala.-based Three Springs
Stock price climbs 14%
$27 million deal could boost revenue by more than a third
April 17, 1996 | By Jay Hancock, SUN STAFF
Wall Street found more reasons to love Youth Services International Inc. yesterday, as the Owings Mills company announced an acquisition that would boost revenue by more than a third. The news propelled its stock price upward by 14 percent.
Youth Services agreed to buy Three Springs Inc., which is based in Huntsville, Ala., and runs programs for emotionally troubled adolescents. Three Springs operates 13 facilities across the Southeast and is best known for its "therapeutic wilderness" program.
Fast-growing Youth Services runs centers for juvenile delinquents across the country. Its executives signed a letter of intent to buy Three Springs for 800,000 shares of Youth Services stock, worth about $27 million yesterday.
Financial analysts praised the deal as one that would extend Youth Services' reach, add to its correctional tools and boost profits almost immediately.
"If they took over an operating facility in the past, they would delete it and put in their own program," said Dennis Moran, who follows Youth Services for financial house A. G. Edwards in St. Louis. "[Three Springs] has a program that works. They've picked up a growth company that they don't have to turn around."
Three Springs' management will stay on, and Youth Services is expected to add its wilderness program to its treatment menu.
Youth Services stock, which could have been had for $8.25 a share less than a year ago, popped by $4.25 yesterday to close at $34.25, a new high.
"It's a good acquisition. It's really going to solidify their market position in the Southeast as one of the major players," said William Bavin, who follows the company for Baltimore financial house Ferris, Baker Watts. "It ought to add a decent amount to earnings."
Youth Services earned $2.2 million on $53.1 million in revenue for the year ending June 1995. The Three Springs deal is expected to add another $20 million in revenue.
Youth Services said the acquisition would boost earnings, but didn't specify how much.
Even so, at 54 times this year's estimated earnings per share, Youth Services stock is expensive even by the inflated standards of today's market. One explanation: It is being discovered by Wall Street.
"YSI is getting on the map," Mr. Moran said.
In recent weeks, Genesis Merchant, A.G. Edwards and NatWest Securities all assigned financial analysts to the stock, nearly doubling the coverage and raising Youth Service's profile among mutual funds, pension funds and other deep-pocketed investors seeking the next hot growth company. Genesis, Edwards and NatWest all gave Youth Services "buy" ratings.
Wall Street has reason to be interested, Youth Services' fans say. It is the biggest company in what some measure as a multi-billion dollar industry, but its 1995 revenues weren't even $54 million.
Law enforcement agencies increasingly are hiring contractors like Youth Services for youth corrections work. And another trend may help the company even as it hurts society: The number of juvenile delinquents is expected to grow, as baby-boomers' kids move into their teens.
Three Springs has a capacity of about 500 beds. Youth Services treats about 4,000 youths at 19 facilities in 12 states.
If it goes through, and analysts expect that it will, the acquisition will add to Youth Services' facilities in Maryland, Tennessee and Virginia and introduce the company to Alabama and Georgia. Youth Services recently completed the buy of a Tampa, Fla., facility that is expected to add about $10 million in annual revenue.
At almost eight times Three Springs' annual cash flow of $3.5 million, its $27 million price tag is "a little high, but it's probably worth it," Mr. Bavin said.
Baltimore Sun, 501 N. Calvert Street, P.O. Box 1377, Baltimore, MD 21278
Ursus:
Some more info on Sequel Youth and Family Services co-founder and chairman Jay Ripley... Note the 5 years spent as president and COO of Youth Services International Inc.
Also of relevance is the 5 years Jay Ripley spent at Jiffy Lube. Jiffy Lube founder Jim Hindman ... is also the founder of Youth Services International.
-------------- • -------------- • --------------
Jay Ripley
Chairman, Sequel Youth & Family Services
Washington D.C. Metro Area
Current
* Co-Founder and Chairman at Capitol Burger, LLC
[li]Co-Founder and Chairman at Sequel Youth and Family ServicesPast
* President and CEO at Precision Auto Care
* President and COO at Youth Services International
* Vice President at Jiffy Lube
* Supervisor/Manager at Ernst & YoungEducation
* University of BaltimoreConnections - 60 connections
Industry - Individual & Family Services
Websites
* My Company
* My Company[/li][/list]
Jay Ripley's Experience
Co-Founder and Chairman
Capitol Burger, LLC
(Restaurants industry)
2007 — Present (3 years )
Capitol Burger owns and operates The Burger Joint restaurant in Bethesda.Co-Founder and Chairman
Sequel Youth and Family Services
(Privately Held; 51-200 employees; Information Technology and Services industry)
1999 — Present (11 years )
Sequel is a national leader in the behavioral health industry, serving adolescents and their families in both residential and community-based programs.President and CEO
Precision Auto Care
(Public Company; 11-50 employees; PACI; Automotive industry)
1995 — 1998 (3 years )
President and COO
Youth Services International
(Public Company; 1001-5000 employees; YSII; Individual & Family Services industry)
1990 — 1995 (5 years )
Vice President
Jiffy Lube
(Public Company; 51-200 employees; Automotive industry)
1985 — 1990 (5 years )
Started as VP Controller, then became VP Eastern RegionSupervisor/Manager
Ernst & Young
(Partnership; 10,001 or more employees; EY; Accounting industry)
1979 — 1985 (6 years )
Jay Ripley's Education
University of Baltimore
BS , Business
Additional Information
Jay Ripley's Websites:
* My Company
* My Company
Jay Ripley's Groups:
* The Golf Club at Lansdowne
Jay Ripley's Contact Settings
Interested In:
* job inquiries
* expertise requests
* business deals
* reference requests
* getting back in touch
Che Gookin:
--- Quote ---Adam Shapiro (SFYS CEO)
--- End quote ---
If he's related to John Shapiro who used to be an adventure course guide or whatnot for Three Springs Paint Rock Valley Boys then things just got really interesting. YSI itself has been in business for awhile. I remember meeting a guy at Eckerds who worked for them. If my memory serves me right, they are nothing more than state contract detention centers.
Basically, a holding pen of sorts.
Ursus:
--- Quote from: "Ursus" ---Jiffy Lube founder Jim Hindman ... is also the founder of Youth Services International.
--- End quote ---
Excerpt from an earlier post, regarding Youth Services International Inc., originally from an old issue of Prison Privatisation Report International, a bulletin (then) put out ten times a year by the UK-based Prison Reform Trust (PRT):
The company was started in 1991 by Jim Hindman, an acknowledged former child delinquent. By the 1970s, at the age of 35, he was a millionaire running a chain of private nursing homes. He then made - and lost - another fortune by starting Jiffy Lube, the famous American 'quick oil change' franchise. He sold this in 1989 after the company had defaulted on loans of more than $69 million, but Hindman himself still came out with $2 million. His next venture materialised when he realised the potential from juvenile crime figures in the US and the amount of money spent on youth rehabilitation programmes - about $3 billion a year at federal, state and municipal levels.[/list]
Ursus:
--- Quote from: "Che Gookin" ---YSI itself has been in business for awhile. I remember meeting a guy at Eckerds who worked for them. If my memory serves me right, they are nothing more than state contract detention centers.
Basically, a holding pen of sorts.
--- End quote ---
I see organizations like this as logical extensions of the movement to privatize prisons. The folk who benefit most from them are not the community, not the employees, not the inmates ... but venture capital firms who exploit them as investment opportunities.
See also:
Global privatization of prisons and juvenile reform programs
viewtopic.php?f=51&t=29777[/list]
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