Private Correctional Facilities

Cornell Corrections, Inc.

The Company

As a result of a focused acquisition strategy, Cornell Corrections <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: CRN)") else Response.Write("(AMEX: CRN)") end if %> had expanded its operations to include 31 contracts to operate 26 facilities with an aggregate design capacity of 5,303 beds (as of April 1997). The increase from the beginning of the fiscal year included the acquisition of Interventions Co. (330 pre-release and 150 juvenile beds) and the reception of two contracts in Santa Fe, New Mexico (504 institutional beds and 156 juvenile beds).

Since the end of 1995, the number of beds under the company's management has almost doubled, indicating that the Texas-based firm has little trouble securing contracts. Indeed, the company was recently awarded a contract to build a 500 bed facility for the Georgia Department of Administrative Services to be completed in 3Q 1998 with the potential to double its capacity upon successful operation.

Latest Financials

Total revenues increased 142.0% to $13.2 million for the three months ended March 31, 1997 from $5.5 million for the same period last year. The increase in occupancy fees of approximately $8.0 million was due principally to the acquisition of MidTex in July 1996, the acquisition of the Reid Center in May 1996, the acquisition of Interventions in January 1997, and the opening of two new juvenile facilities and one new pre-release center during the first quarter of 1997.

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