Corrections Corporation (CCA) of America, which claims to be “America's leader in partnership corrections and the nation's largest provider of corrections management services to government agencies,” issued its 2012 financial results today.
According to the CCA website, CCA “…designs, builds, manages and operates correctional facilities and detention centers on behalf of the Federal Bureau of Prisons, Immigration and Customs Enforcement, the United States Marshals Service, nearly half of all states and nearly a dozen counties across the country.“ CCA is heavily criticized by those working for prison reform because the company’s goal is to keep the facilities that it owns or operates filled to capacity.
Earlier this year CCA sent a message to governors of all 50 states claiming to have earmarked $250 million for “purchasing and managing government-owned corrections facilities.” On March 3, 2012 Reentry Central reported that if a state decided to take CCA up on its offer, the following requirements would have to be fulfilled:
The state would have to enter into a 20-year contract with CCA
The prison must have an occupancy rate of at least 1,000 beds
The building must not be over 25 years old
The building must be suitable for occupancy or already occupied
The agency partnership must assure that the agency has a sufficient inmate population to maintain a 90 percent occupancy rate over the term of the contract
The outcry against CCA’s proposal to take over America’s prisons convinced many governors to refuse to consider the offer. But, don’t feel sorry for CCA. Highlights from the company’s press release reveal the company is still making money, although probably not as much as they would like. The Wall Street Journal reported that CCA’s total management revenue for the first quarter of 2012 increased to $434.2 million from $423.8 million during the first quarter of 2011.
CCA announced:
A diluted EPS of $0.32
An adjusted Diluted EPS of $0.33
Operating income of $69.5 million
An EBITDA and Adjusted EBITDA of $96.4 million and $97.9 million,
respectively
Funds From Operations and Adjusted Funds From Operations Per Diluted
Share of $0.82 and $0.69, respectively
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