Corrections Corporation of America Declares Quarterly Cash Dividend Payable on January 15, 2015
Dec 11 14
Corrections Corporation of America announced that its Board of Directors declared a quarterly dividend of $0.51 per share to be paid on January 15, 2015 to shareholders of record as of the close of business on January 2, 2015.
CCA Reports Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Fourth Quarter and Full Year of 2014
Nov 3 14
CCA reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2014. For the quarter, the company’s net income was $57.5 million, or $0.49 per diluted share, compared to $51.8 million, or $0.44 per diluted share, generated in the third quarter of 2013. Diluted adjusted net income was $57.5 million, or $0.49 per diluted share compared to $53.5 million, or $0.46 per diluted share, during the third quarter of 2013. Normalized FFO was $79.0 million, or $0.67 per diluted share compared with $74.0 million, or $0.63 per diluted share, during the third quarter of 2013. Normalized FFO also reflects the special items in the prior year quarter. Total revenue was $408.5 million compared to $421.5 million in the third quarter of 2013. The decline in revenue was primarily attributable to the termination of contracts that resulted in a reduction of revenue of $28.6 million, while the impact on facility net operating income (NOI) for these terminated contracts was a decline of only $0.4 million from the third quarter of 2013 to the third quarter of 2014. In addition, revenue declined due to a reduction in populations from the United States Marshals Service primarily at California City facility. These reductions in Revenues were partially offset by an increase in revenue resulting from the new lease of the company’s California City facility effective December 1, 2013, population growth from U.S. Immigration and Customs Enforcement (ICE) and an increase in population from the state of Arizona pursuant to a new contract at the company’s Red Rock facility that commenced January 1, 2014. NOI increased $5.8 million, from $120.0 million to $125.8 million in the third quarter of 2014, despite a reduction in facility NOI of $1.6 million resulting from the transition of Red Rock facility to a new contract effective January 1, 2014. This reduction was offset by an improvement in NOI for the aforementioned increases in inmate populations, and the lease of California City facility. Operating income was $69.850 million against $67.271 million a year ago. Income from continuing operations before income taxes was $59.617 million against $57.077 million a year ago. Income from continuing operations was $57.546 million or $0.49 per diluted share against $52.506 million or $0.44 per diluted share a year ago. Adjusted funds from operations were $77.602 million against $73.424 million a year ago. Adjusted funds from operations per diluted share were $78.958 million against $72.321 million a year ago.
For the nine months, the company reported total revenue of $1,223.390 million against $1,263.194 million a year ago. Operating income was $198.451 million against $195.132 million a year ago. Income from continuing operations before income taxes was $170.506 million against $123.868 million a year ago. Income from continuing operations was $165.016 million or $1.41 per diluted share against $257.121 million or $0.49 per diluted share a year ago. Net income was $165.016 million or $1.41 per diluted share against $253.364 million or $2.32 per diluted share a year ago. Diluted adjusted net income was $167.251 million against $161.643 million a year ago. Adjusted diluted earnings per share were $1.43 against $1.48 a year ago. Funds from operations were $231.171 million against $313.703 million a year ago. Normalized funds from operations were $231.171 million against $221.982 million a year ago. Adjusted funds from operations were $225.306 million against $221.282 million a year ago. Normalized funds from operations per diluted share were $1.97 against $2.03 a year ago. Adjusted funds from operations per diluted share were $1.92 against $2.02 a year ago.
The company expects adjusted diluted EPS for the fourth quarter of 2014 to be in the range of $0.46 to $0.49. The company expects its effective income tax rate to normalize at around 5% to 7%, G&A expense to be approximately 6% of total revenues, while depreciation expense is estimated to be $29 million to $30 million.
For the full-year 2014 the company expects adjusted diluted EPS in the range of $1.88 to $1.91. The company also expects FFO per diluted share for the full-year 2014 to be in the range of $2.61 to $2.64, while full-year 2014 AFFO per diluted share is expected to be in the range of $2.54 to $2.57. During 2014, the company expects to invest approximately $160 million to $175 million in capital expenditures, consisting of $110 million to $120 million in on-going prison construction, expenditures related to potential land acquisitions, and certain leasehold improvements and equipment at the South Texas Family Residential Center; $25 million in maintenance capital expenditures on real estate assets; and $25 million to $30 million on capital expenditures on other assets and information technology.
Corrections Corporation of America's Employees Sues over OT
Oct 24 14
Thirteen former and current employees of Corrections Corporation of America have filed a federal lawsuit alleging that the Nashville-based company has stiffed them on overtime pay. The four-count complaint accuses Corrections Corporation of America of violating the Fair Labor Standards Act. The plaintiffs are seeking an unspecified amount of unpaid back wages and other damages, as well as collective-action status so other current and former employees can choose to join the case. The accusations hinge around the claim that CCA wrongly classified the employees' positions as exempt from overtime requirements imposed by law. The plaintiffs include former managers, supervisors, investigators and accountants. They regularly worked in excess of 40 hours a week without overtime pay.