February 10, 2009
Private prison company CCA profits jump thanks to Calif, Feds
Private prison operator Corrections Corporation of America said Tuesday its fourth-quarter profit jumped 16 percent on increases in its per diem rates and prison population. Corrections Corp. earned $40.5 million, or 32 cents per share, compared with $34.9 million, or 28 cents per share, for the same quarter last year.
Revenue rose 8.8 percent to $414.4 million from $380.8 million in the year-ago period. Analysts surveyed by Thomson Reuters expected a profit of 30 cents per share on $420 million in revenue. The increase in revenue was mainly a result of a 5.2 percent increase in per diem rates, along with 4.1 percent growth in inmate populations.
Management revenue from federal customers rose 7.5 percent to $162 million, while management revenue from state customers increased 13 percent to $218.3 million. Corrections Corp. attributed the larger inmate populations to increased populations from the states of California and Idaho, as well as from the U.S. Immigration and Customs Enforcement…
LINK - Forbes.com
