Private Correctional Facilities

Corrections Corporation of America

The Company

Corrections Corporation of America <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CXC)") else Response.Write("(NYSE: CXC)") end if %> has by far the largest number of facilities under contract as well as the highest total capacity under contract, with an estimated 48% of the total market for private beds. The company's facilities are located in 17 states, Washington, D.C., Puerto Rico, Australia and the United Kingdom. As of March 20, 1997, the company had contracts to manage 59 correctional and detention facilities with an aggregate design capacity of 42,537 beds, of which 47 facilities represented 28,062 beds in operation. The company is currently developing 12 facilities and expanding four facilities representing an aggregate of 14,475 beds. All of the beds currently under development are expected by the company to be in operation by the third quarter of 1998. The company owns 13 of the 44 domestic facilities it currently operates and leases the remaining 31 domestic facilities from governmental agencies and non-profit corporations.

Latest Financials

Revenues for the first quarter of 1997 increased 45% over the comparable period of 1996. Management revenues increased $28,302,000 or 47%, and transportation revenues increased $259,000 or 10%, in the first three months of 1997 as compared to the same period in 1996. The increase in management revenues was due to a 37% increase in compensated mandays. During the first quarter of 1997, the company opened six new facilities totaling 3,496 beds and expanded one existing facility representing 256 beds. The company also realized the full period effect in the first quarter of 1997 of 3,835 beds brought on line over the course of 1996. Transportation revenues increased due to an expanded customer base and compensated mileage realized through the opening of two new transportation hubs. In the first quarter of 1997 the company recognized after-tax, development-fee income of $1,341,000 related to a contract to design, construct and equip a facility.

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