Correctional Services Corporation Announces Financial Results for First Quarter 2005.SARASOTA Sarasota (sâr'əsō`tə), city (1990 pop. 50,961), seat of Sarasota co., SW Fla., on Sarasota Bay; settled c.1884, inc. 1914. , Fla. -- Correctional Services Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSCQ CSCQ Centre Suisse de Contrôle de Qualité (French: Organisation for Quality Control of Medical Analysis; Switzerland) CSCQ China Soaring Crane Qigong CSCQ Conseil de la Santé Communautaire du Québec ) today announced financial results for the first quarter 2005. Revenues for the first quarter were $32.1 million versus $32.0 million in the comparative period in 2004. For the 2005 quarter, the Company reported contribution from operations of $3.1 million and a net loss of $509,000 or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. For the first quarter of 2004, the Company reported contribution from operations of $2.2 million and a net loss of $656,000 or $0.06 per diluted share. Diluted shares were 10,167,000 and 10,159,000 in the first quarter 2005 and 2004, respectively. Included in the reported amounts for the first quarter 2005 and 2004 were the following pre-tax items: (in thousands)
2005 2004
---- ----
-- Startup expenses associated with the
opening of new facilities $139 $1,705
-- Loss from discontinued operations $140 $658
The above pre-tax charges for the first quarter 2005 totaled $279,000. The total for the 2004 pre-tax items was income of $2.4 million. The after tax charges for 2005 were $170,000 or $0.02 per diluted share and the after tax charge for 2004 was $1.4 million or $0.14 per diluted share. Commenting on the first quarter results, James F. Slattery, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "I am disappointed in the first quarter results which were impacted by lower utilization by the Immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. & Customs Enforcement (ICE) at several of our Texas adult facilities due to budget issues. However, additional funding is now in place and we have begun to see occupancy improvement." Slattery further stated, "The Company will continue to focus on our near term goal of improved earnings by increasing occupancy at our existing adult facilities and stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. the performance of our juvenile division. We continue to proceed toward the timely opening in late June of our new 1020 bed Department of Homeland Security Noun 1. Department of Homeland Security - the federal department that administers all matters relating to homeland security Homeland Security executive department - a federal department in the executive branch of the government of the United States ICE facility in South Texas and the June opening of the 96 bed expansion of our Littlefield facility which will house inmates for the Wyoming Department of Corrections. These new beds in addition to the full implementation of our Behavioral Health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or Overlay (1) A preprinted, precut form placed over a screen, key or tablet for identification purposes. See keyboard template. (2) A program segment called into memory when required. Services (BHOS BHOS Burgess Hill Operatic Society ) at our Florida Juvenile Programs are expected to produce earnings improvement in the third and fourth quarters." The Company will be having a conference call to discuss this release on Thursday May 12, 2005 at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The number to call is (888) 858-4066 (U.S. only) or (973) 935-2403 (International). A replay will be available by calling (877) 519-4471 and using the pin 6045297. Through its Youth Services International subsidiary, the Company is the nation's leading private provider of juvenile programs for adjudicated youths with 17 facilities and 1,300 juveniles in its care. In addition, the Company is a leading developer and operator of adult correctional facilities, operating 14 facilities with approximately 5,500 beds. On a combined basis, the Company provides services in 12 states, representing approximately 6,800 beds including aftercare af·ter·care n. Follow-up care provided after a medical procedure or treatment program. aftercare the care and treatment of a convalescent patient, especially one that has undergone surgery. services. 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. Statement Under 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 Certain statements contained in this press release are not historical but are 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. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements regarding the expectations, beliefs, intentions or strategies regarding the future. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's views as of the date they are made with respect to future events and financial performance, but are subject to many uncertainties and risks which could cause the actual results of the Company to differ materially from any future results expressed or implied by such forward-looking statements. Examples of such uncertainties and risks include, but are not limited to: fluctuations in occupancy levels and labor costs; the ability to secure both new contracts and the renewal of existing contracts; the possibility of unforeseen costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc facility closings, the ability to achieve profitability and public resistance to privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned ; ability to obtain construction financing; and ability to complete new construction projects within budgeted amounts. Additional risk factors include those discussed in reports filed by the Company from time to time on Forms 10-K, 10-Q and 8-K. The Company does not undertake any obligation to update any forward-looking statements.
CORRECTIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three Months Ended March 31,
---------------------------------
2005 2004
---------------- ----------------
Revenues from continuing operations $32,066 100.00% $32,041 100.00%
-------- ------- -------- -------
Facility expenses:
Operating 28,830 89.91% 28,109 87.73%
Start up costs 139 0.43% 1,705 5.32%
-------- ------- -------- -------
28,969 90.34% 29,814 93.05%
-------- ------- -------- -------
Contribution from operations 3,097 9.66% 2,227 6.95%
General and administrative expenses 2,254 7.03% 2,153 6.72%
-------- ------- -------- -------
Operating income 843 2.63% 74 0.23%
Interest expense, net 1,550 4.83% 557 1.74%
-------- ------- -------- -------
Loss from continuing operations
before income taxes (707) -2.20% (483) -1.51%
Income tax benefit (283) -0.88% (228) -0.71%
-------- ------- -------- -------
Loss from continuing operations (424) -1.32% (255) -0.80%
Loss from discontinued operations,
net of tax benefit of $55 and $257 (85) -0.27% (401) -1.25%
-------- ------- -------- -------
Net loss $(509) -1.59% $(656) -2.05%
======== ======= ======== =======
Basic and diluted loss per share
Loss per share from
continuing operations $(0.04) $(0.02)
Loss per share from
discontinued operations (0.01) (0.04)
-------- --------
Loss per share $(0.05) $(0.06)
======== ========
Number of shares used to compute EPS:
Basic 10,167 10,159
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Diluted 10,167 10,159
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Other Information
Beds under management
(includes aftercare) 6,771 7,693
Compensated mandays 495,170 508,644
SELECTED BALANCE SHEET DATA
March 31 December 31
2005 2004
-------- --------
Working Capital $10,841 $11,686
Total Assets 199,896 199,990
Bond and Note Payable 101,969 101,962
Other Long-term Obligations 18,854 18,995
Shareholders' Equity 47,604 48,113
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