Private Prisons keep generating great earnings
Wednesday February 25, 8:46 am Eastern Time
Company Press Release
SOURCE: Cornell Corrections, Inc.
Cornell Corrections Reports 1997 Results
EPS of $.46 on Revenue Growth of 117%
HOUSTON, Feb. 25 /PRNewswire/ -- Cornell Corrections, Inc. (Amex: CRN - news)
today announced its 1997 net earnings of $3.6 million, or $.46 per diluted share, as
compared to a loss of ($2.4 million), or ($.53) per diluted share for 1996. Revenues for
1997 increased 117% to $70.3 million from $32.3 million reported for 1996. The
increase in 1997 operating results reflects two 1997 acquisitions, a full year of
contribution from 1996 acquisitions, and the opening of new facilities in Utah, New
Mexico, and North Carolina in 1997.
For the fourth quarter of 1997, net earnings were $1.4 million, or $.15 per diluted share,
compared to net earnings of $571,000, or $.08 per diluted share, for the fourth quarter
of 1996. Revenues for the fourth quarter of 1997 were $24.2 million, an increase of
134% compared to revenues of $10.4 million for the 1996 period.
Net interest expense for the year ended December 31, 1997 was $77,000 versus net
interest expense of $2.6 million for the year ended December 31, 1996, which included
a $1.3 million non-recurring charge related to retirement of indebtedness. The results
for 1997 include a provision for income taxes at an effective rate of 36%, whereas there
was no federal tax provision made for 1996. Additionally, diluted earnings per share for
1997 reflect a 73% increase in the weighted average number of shares outstanding
versus 1996.
Cornell Corrections' Chairman and CEO, David M. Cornell, commented, ''1997 was a
year in which Cornell clearly emerged as the nation's third largest private corrections
company and a predominant consolidator in the industry. We continue to implement
effectively our balanced growth strategy of strategic acquisitions, new contract awards
and expansion of existing facilities. In doing so, we have solidified the depth of our
operating infrastructure, which currently includes over 2,000 dedicated employees''.
Cornell further stated, ''1997 was also a year in which we continued to strengthen the
Company's financial condition with our successful October equity offering with net
proceeds exceeding $41 million, and the expansion of our line of credit to $60 million.
The Company's year-end financial position is the best in our history, with cash balances
of $19.0 million, stockholders' equity of $86.7 million and virtually no long-term debt. As
we build our critical mass, we become exposed to, and can better capitalize upon, an
increasing level of opportunities within this tremendous growth industry.''
Cornell Corrections, a Houston, Texas-based firm, is one of the leading providers of
privatized correctional, detention and pre-release services in the United States. The
company provides integrated facility development, design, construction, and
operational services to governmental agencies within three areas of operational focus:
(i) secure institutional correctional and detention facilities, (ii) juvenile correctional and
detention services, and (iii) pre-release correctional services.
This press release may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based on
current plans and expectations of Cornell Corrections, Inc. and involve risks and
uncertainties that could cause actual future activities and results of operations to be
materially different from those set forth in the forward-looking statements. Important
factors that could cause actual results to differ include, among others, risks associated
with acquisitions, the timing and costs of expansions of existing facilities, and
fluctuations in operating results because of occupancy, competition, and risks of
operations.
CORNELL CORRECTIONS, INC.
FINANCIAL HIGHLIGHTS
(000's except per share amounts)
Year Ended Three Months Ended
December 31, December 31,
1997 1996 1997 1996
Revenues $70,302 $32,327 $24,249 $10,382
Operating expenses 57,047 26,038 19,740 8,040
Depreciation and amortization 2,231 1,390 606 455
General and administrative expenses 5,394 4,560 1,941 1,172
Income from operations 5,630 339 1,962 715
Interest expense (income), net 77 2,643 (157) 69
Income (loss) before income taxes 5,553 (2,304) 2,119 646
Net income (loss) 3,554 (2,379) 1,356 571
Earnings (loss) per share:
- Basic .48 (.53) .15 .09
- Diluted .46 (.53) .15 .08
Number of shares used to compute EPS:
- Basic 7,350 4,466 8,878 6,475
- Diluted 7,740 4,466 9,338 6,987
Contracted offender capacity in
operation (end of period) 5,061 2,899 5,061 2,899
Average occupancy (A) 97.6% 97.0% 97.9% 95.7%
(A) Occupancy percentages are based on contracted offender capacity of
residential facilities in operation. Since certain facilities have
offender capacities that exceed contracted capacities, occupancy
percentages can exceed 100% of contract capacity.
Balance Sheet Data:
December 31,
1997 1996
Cash and cash equivalents $ 18,968 $ 4,874
Current assets 42,155 12,433
Property and equipment 52,516 26,074
Total assets 104,113 46,824
Current liabilities 16,481 4,686
Long-term debt 432 745
Stockholders' equity 86,730 41,051
SOURCE: Cornell Corrections, Inc.
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