Avalon Correctional Services, Inc. Announces 139% Revenue Growth in Second Quarter.Business Editors OKLAHOMA Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). CITY--(BUSINESS WIRE)--Aug. 8, 2000 Avalon Avalon (ăv`əlŏn), in Celtic mythology, the blissful otherworld of the dead. In medieval romance it was the island to which the mortally wounded King Arthur was taken, and from which it was expected he would someday return. Correctional Services, Inc. (Nasdaq: CITY), a leading owner and operator of community correctional facilities and programs, announced today the results of operations for the second quarter. Revenue for the second quarter of 2000 increased 139% to $5.42 million, up from $3.88 million a year ago, reflecting the impact of a new facility opening in Oklahoma during the first quarter, and the Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. acquisition of the operations of Adams Community Corrections Program (ACCP ACCP American College of Chest Physicians ACCP American College of Clinical Pharmacy ACCP Army Correspondence Course Program ACCP Atlantic Climate Change Program ACCP Association of Caribbean Commissioners of Police ACCP Assembly of Caribbean Community Parliamentarians ) and the acquisition of The Villa at Greeley. Net income for the three months ended June 30, 2000, was $229,000 or $0.05 basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of compared to a net income for the same period in 1999 of $167,000 or $0.04 basic and $0.03 diluted earnings per share. Earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) increased 50% for the three months ended June 30, 2000, to $1,437,000 compared to $956,000 for the same period in 1999. Revenue for the six months ended June 30, 2000, was $10.6 million, up 69% from $6.3 million a year ago, again, reflecting the impact of the Company's new operations and the Colorado acquisitions. Net income for the six months ended June 30, 2000, was $444,000 or $0.09 per share as compared to a loss of ($135,000) or ($0.03) per share in 1999. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 109% for the six months ended June 30, 2000, to $2,774,000 compared to $1,326,000 for the same period in 1999. Avalon Correctional Services, Inc. is a leading developer and manager of privatized community correctional facilities and correctional programming in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Avalon currently has a total offender offender n. an accused defendant in a criminal case or one convicted of a crime. (See: defendant, accused) capacity of 1,700 beds in Oklahoma, Colorado and Texas, in addition to specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. programming for 1000 offenders. For more information about Avalon contact our web site at www.avaloncorrections.com or call 1-800-919-9113. This press release may contain "forward-looking" statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filing with the Securities and Exchange Commission.
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
Revenues $ 5,417,000 $ 3,883,000 $10,665,000 $ 6,310,000
Income
(loss) from
continuing
operations
before income
tax expense
(benefit) 229,000 167,000 444,000 (100,000)
Extraordinary
loss from
early
retirement
of debt -- -- -- (35,000)
Net income
(loss) 229,000 167,000 444,000 (135,000)
Average
Shares
Outstanding 4,743,652 4,670,630 4,729,641 4,668,000
Net income
(loss)
per share,
basic 0.05 0.04 0.09 (0.03)
Selected Data From
Consolidated Balance Sheets
June 30, December 31,
2000 1999
ASSETS
Cash and cash equivalents $ 653,000 $ 601,000
------------ ------------
Total current assets 3,283,000 3,460,000
------------ ------------
Total assets $ 38,573,000 $ 38,440,000
============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Total current liabilities $ 3,412,000 $ 2,545,000
Long-term debt, less
current maturities 24,309,000 25,554,000
Convertible debentures 3,850,000 3,850,000
------------ ------------
Total Liabilities $ 31,571,000 $ 31,949,000
------------ ------------
Redeemable Common Stock,
$0.01 par value
1,622,448 shares issued
and outstanding $ 3,853,000 $ 4,124,000
Common Stock 3,000 3,000
Paid-In capital 7,024,000 6,686,000
Accumulated deficit (3,878,000) (4,322,000)
------------ ------------
Total liabilities and
stockholders' equity $ 38,573,000 $ 38,440,000
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