THEIR MISSION:
Our mission is to provide, in partnership with government, a meaningful public service, by operating the highest quality, full service adult corrections company in the United States.
WHO ARE THEY:
As the nation’s largest owner and operator of privatized correctional and detention facilities, we currently operate 64 facilities, including 40 company-owned facilities, with a total design capacity of over 72,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional and detention facilities, and providing inmate residential and prisoner transportation services for governmental agencies. We also offer a variety of rehabilitation and educational programs intended to help reduce recidivism and to prepare inmates for their successful re-entry into society.
LETTER TO SHAREHOLDERS: We achieved strong financial results in 2006 as increased demand filled a substantial portion of available beds and enabled us to advance our strategy of developing new bed capacity. We were also successful in implementing operational efficiencies while adhering to our steadfast commitment to provide safe and secure correctional and detention facilities. We believe these accomplishments were reflected in our stock price, which rose 51.1% during 2006. Our outlook for 2007 is also positive. We expect that growth in the projected inmate population and limited development of new prison beds by the public sector will be favorable to the private corrections industry. As the industry leader, we believe we are uniquely positioned to capitalize on these trends by expanding total bed capacity, improving our pricing leverage and providing our customers a “just-in-time” solution for their inmate management needs.
RECORDED FINANCIAL RESULTS
During 2006, we generated $1.3 billion in revenues, the highest in our company’s history. We continued to benefit from further improvement in industry fundamentals and executed our strategy to take advantage of these opportunities. We entered 2006 with over 5,100 available beds and added 1,596 beds through new development. We entered 2007 with approximately 2,300 available beds, many of which are under contract or with strong indications of interest from new and existing customers. Our compensated man-days, or the number of days we are compensated for the occupancy of one inmate, rose 7.4% to 24.9 million compared with 23.2 million compensated man-days in 2005. The increase in man-days resulted in substantial revenue growth, excellent cash flow growth and strong earningsgrowth during 2006. Higher occupancy rates enabled us to leverage our fixed expenses. During 2006, our average occupancy was 94.9% compared with 91.4% in 2005. As facility occupancy rises, we are able to leverage a significant portion of our fixed expenses over a higher inmate population. This fixed cost leverage contributed to a slight decrease in fixed expenses of 0.3% per compensated man-day and total expense growth of only 1.1% per compensated man-day. This leverage also contributed to the 200 basis point increase in facility operating margins to 27.3% in 2006 compared with 25.3% in 2005. Net income increased from $50.1 million in 2005, or $0.83 per diluted share, to $105.2 million in 2006, or $1.71 per diluted share. Finally, adjusted free cash flow increased to $180.6 million, an increase of 40.9% from $128.2 million, while earnings per diluted share, excluding special items, increased 41.0% to $1.72 from $1.22.
http://www.correctionscorp.com/
http://www.shareholder.com/cxw/downloads/CCA2006ar.pdf
Our mission is to provide, in partnership with government, a meaningful public service, by operating the highest quality, full service adult corrections company in the United States.
WHO ARE THEY:
As the nation’s largest owner and operator of privatized correctional and detention facilities, we currently operate 64 facilities, including 40 company-owned facilities, with a total design capacity of over 72,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional and detention facilities, and providing inmate residential and prisoner transportation services for governmental agencies. We also offer a variety of rehabilitation and educational programs intended to help reduce recidivism and to prepare inmates for their successful re-entry into society.
LETTER TO SHAREHOLDERS: We achieved strong financial results in 2006 as increased demand filled a substantial portion of available beds and enabled us to advance our strategy of developing new bed capacity. We were also successful in implementing operational efficiencies while adhering to our steadfast commitment to provide safe and secure correctional and detention facilities. We believe these accomplishments were reflected in our stock price, which rose 51.1% during 2006. Our outlook for 2007 is also positive. We expect that growth in the projected inmate population and limited development of new prison beds by the public sector will be favorable to the private corrections industry. As the industry leader, we believe we are uniquely positioned to capitalize on these trends by expanding total bed capacity, improving our pricing leverage and providing our customers a “just-in-time” solution for their inmate management needs.
RECORDED FINANCIAL RESULTS
During 2006, we generated $1.3 billion in revenues, the highest in our company’s history. We continued to benefit from further improvement in industry fundamentals and executed our strategy to take advantage of these opportunities. We entered 2006 with over 5,100 available beds and added 1,596 beds through new development. We entered 2007 with approximately 2,300 available beds, many of which are under contract or with strong indications of interest from new and existing customers. Our compensated man-days, or the number of days we are compensated for the occupancy of one inmate, rose 7.4% to 24.9 million compared with 23.2 million compensated man-days in 2005. The increase in man-days resulted in substantial revenue growth, excellent cash flow growth and strong earningsgrowth during 2006. Higher occupancy rates enabled us to leverage our fixed expenses. During 2006, our average occupancy was 94.9% compared with 91.4% in 2005. As facility occupancy rises, we are able to leverage a significant portion of our fixed expenses over a higher inmate population. This fixed cost leverage contributed to a slight decrease in fixed expenses of 0.3% per compensated man-day and total expense growth of only 1.1% per compensated man-day. This leverage also contributed to the 200 basis point increase in facility operating margins to 27.3% in 2006 compared with 25.3% in 2005. Net income increased from $50.1 million in 2005, or $0.83 per diluted share, to $105.2 million in 2006, or $1.71 per diluted share. Finally, adjusted free cash flow increased to $180.6 million, an increase of 40.9% from $128.2 million, while earnings per diluted share, excluding special items, increased 41.0% to $1.72 from $1.22.
http://www.correctionscorp.com/
http://www.shareholder.com/cxw/downloads/CCA2006ar.pdf
They are our responsibility. THEM :grin: HAVE A PROJECTION OF THE # OF BEDS NEEDED FOR THE FUTURE
