Corrections Corp. of America New (CXW, Financial) filed Quarterly Report for the period ended 2012-03-31.
Corrections Crp has a market cap of $2.88 billion; its shares were traded at around $28.14 with a P/E ratio of 18.8 and P/S ratio of 1.7. Corrections Crp had an annual average earning growth of 7.3% over the past 10 years.
Business from our federal customers, including primarily the Federal Bureau of Prisons (BOP), the United States Marshals Service (USMS), and U.S. Immigration and Customs Enforcement (ICE) continues to be a significant component of our business. Our federal customers generated approximately 43% of our total revenue for both the three months ended March 31, 2012 and 2011, increasing 3.8%, from $182.4 million during the three months ended March 31, 2011 to $189.3 million during the three months ended March 31, 2012.
State revenues increased $2.0 million, or 1.0%, from $213.8 million for the three months ended March 31, 2011 to $215.8 million for the three months ended March 31, 2012. The increase in state revenues resulting from the activation of our new contract with the state of Ohio at the Lake Erie facility were partially offset by declines in state revenues primarily from the state of California due to our strategic decision not to renew the contract for nearly 900 beds at our Florence Correctional Center, where we were able to replace such inmates with additional inmates from the USMS.
In late January 2012, the governor of Kentucky submitted his proposed budget which included the transfer of the inmates currently held at one of our facilities to a facility owned by the state of Kentucky that had previously been closed as the result of damage sustained during an inmate disturbance. Based on our conversations with the Kentucky Department of Corrections, we expect Kentucky to remove inmates currently housed in the 656-bed Otter Creek Correctional Center, a facility we own in Wheelwright, Kentucky, by the end of August 2012. We plan to idle the facility if we are unable to identify a partner to utilize the facility. Total revenue at this facility represented less than 1% of our total revenue during both the three months ended March 31, 2012 and 2011.
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Corrections Crp has a market cap of $2.88 billion; its shares were traded at around $28.14 with a P/E ratio of 18.8 and P/S ratio of 1.7. Corrections Crp had an annual average earning growth of 7.3% over the past 10 years.
Highlight of Business Operations:
A key performance indicator we use to measure the revenue and expenses associated with the operation of the facilities we own or manage is expressed in terms of a compensated man-day, which represents the revenue we generate and expenses we incur for one inmate for one calendar day. Revenue and expenses per compensated man-day are computed by dividing facility revenue and expenses by the total number of compensated man-days during the period. A compensated man-day represents a calendar day for which we are paid for the occupancy of an inmate. We believe the measurement is useful because we are compensated for operating and managing facilities at an inmate per-diem rate based upon actual or minimum guaranteed occupancy levels. We also measure our ability to contain costs on a per-compensated man-day basis, which is largely dependent upon the number of inmates we accommodate. Further, per compensated man-day measurements are also used to estimate our potential profitability based on certain occupancy levels relative to design capacity. Revenue and expenses per compensated man-day for all of the facilities placed into service that we owned or managed, exclusive of those discontinued (see further discussion below regarding discontinued operations), were as follows for the three months ended March 31, 2012 and 2011:Business from our federal customers, including primarily the Federal Bureau of Prisons (BOP), the United States Marshals Service (USMS), and U.S. Immigration and Customs Enforcement (ICE) continues to be a significant component of our business. Our federal customers generated approximately 43% of our total revenue for both the three months ended March 31, 2012 and 2011, increasing 3.8%, from $182.4 million during the three months ended March 31, 2011 to $189.3 million during the three months ended March 31, 2012.
State revenues increased $2.0 million, or 1.0%, from $213.8 million for the three months ended March 31, 2011 to $215.8 million for the three months ended March 31, 2012. The increase in state revenues resulting from the activation of our new contract with the state of Ohio at the Lake Erie facility were partially offset by declines in state revenues primarily from the state of California due to our strategic decision not to renew the contract for nearly 900 beds at our Florence Correctional Center, where we were able to replace such inmates with additional inmates from the USMS.
In late January 2012, the governor of Kentucky submitted his proposed budget which included the transfer of the inmates currently held at one of our facilities to a facility owned by the state of Kentucky that had previously been closed as the result of damage sustained during an inmate disturbance. Based on our conversations with the Kentucky Department of Corrections, we expect Kentucky to remove inmates currently housed in the 656-bed Otter Creek Correctional Center, a facility we own in Wheelwright, Kentucky, by the end of August 2012. We plan to idle the facility if we are unable to identify a partner to utilize the facility. Total revenue at this facility represented less than 1% of our total revenue during both the three months ended March 31, 2012 and 2011.
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