Correctional Services Corporation Announces Financial Results for Third Quarter 2002.Business Editors 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.--(BUSINESS WIRE)--Nov. 13, 2002 Correctional Services Corporation (Nasdaq: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 third quarter of 2002. Revenues for the third quarter were $39,129,000 versus $42,344,000 in the comparative period in 2001. For the quarter the company reported contributions from operations of $3,550,000 versus $3,178,000 in the third quarter of 2001. Net income was $472,000 or $.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 third quarter versus a net loss of $5,299,000 or ($.52) per diluted share for the same period in 2001. The prior year net loss included pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta special charges of $7,879,000 and loss on disposal of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of $677,000. Diluted shares were 10,225,000 and 10,155,000 in 2002 and 2001 respectively. Revenues for the nine months ended September September: see month. 30, 2002 were $119,797,000 versus $131,828,000 in the comparative period in 2001. For the nine months the company reported contributions from operations of $11,041,000 versus $9,475,000 in the same period of 2001. Net income was $1,641,000 or $0.16 per diluted share for the nine months versus a net loss of $6,287,000 or ($0.62) per diluted share for the same period in 2001. The prior year net loss included pre-tax special charges of $7,879,000, legal settlement of $375,000 and loss on disposal of fixed assets of $823,000. Diluted shares were 10,198,000 and 10,189,000 in 2002 and 2001 respectively. Period to period financial improvement is a result of the execution of the Company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan which included, among other items, the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of under-performing facilities, the decrease in general and administrative expenses and improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: at the facility level. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. F. Slattery Slattery may refer to:
As to the fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results, Mr. Slattery further stated, "Based on current trends, we believe that the Company will achieve its earnings guidance for 2002 and expects to be reporting earnings between $0.06 and $0.07 per diluted share for the fourth quarter which will result in 2002 earnings of $0.22 to $0.23 per diluted share for the full year." THE COMPANY WILL BE HAVING A CONFERENCE CALL TO DISCUSS THIS RELEASE AT 2:00 P.M. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. TODAY. THE NUMBER TO CALL IS (888) 243-3996 (U.S. only) or (973) 935-2101 (International). A REPLAY WILL BE AVAILABLE BY CALLING (877) 519-4471 (U.S. only) (973) 341-3080 (International) PIN #3593921. Through its Youth Services International subsidiary, the Company is the nation's leading private provider of juvenile juvenile /ju·ve·nile/ (ju´vin-il) 1. pertaining to youth or childhood. 2. a youth or child; a young animal. 3. a cell or organism intermediate between immature and mature forms. programs for adjudicated youths with 25 facilities and 3,600 juveniles in its care. In addition, the Company is a leading developer and operator of adult correctional facilities operating 12 facilities representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4,500 beds. On a combined basis, the Company provides services in 16 states and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , representing approximately 8,100 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 Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy levels and labor costs; the ability to secure both new contracts and the renewal of existing contracts; the ability to successfully complete the asset sales and pay down debt, 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 . Additional risk factors include those discussed in reports filed by the Company from time to time on Forms 10K, 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
September 30, 2002
(in thousands, except per share data)
Nine Months Ended September 30,
-------------------------------------
2002 2001
------------------ ------------------
Revenues $119,797 100.00% $131,828 100.00%
Facility expenses
Operating 108,756 90.78% 121,947 92.50%
Startup costs - 0.00% 406 0.31%
---------- ------- ---------- -------
108,756 90.78% 122,353 92.81%
---------- ------- ---------- -------
Contribution from
operations 11,041 9.22% 9,475 7.19%
---------- ------- ---------- -------
Other operating
expenses
General and
administrative(1) 6,520 5.44% 11,058 8.39%
Legal settlement - 0.00% 375 0.28%
Restructuring and
impairment - 0.00% 4,356 3.30%
Loss on contracts of
facilities to be closed - 0.00% 1,150 0.88%
Loss (gain) on disposal
of assets (48) -0.04% 823 0.63%
---------- ------- ---------- -------
6,472 5.40% 17,762 13.48%
---------- ------- ---------- -------
Operating income
(loss) 4,569 3.82% (8,287) -6.29%
Interest expense,
net(1) 1,795 1.50% 1,451 1.10%
---------- ------- ---------- -------
Income (loss) before income
taxes 2,774 2.32% (9,738) -7.39%
Income tax expense
(benefit) 1,133 0.95% (3,451) -2.62%
---------- ------- ---------- -------
Net income (loss) $1,641 1.37% ($6,287) -4.77%
========== ======= ========== =======
Basic and diluted earnings
(loss) per share $0.16 $(0.62)
========== ==========
Number of shares used to
compute EPS:
Basic 10,155 10,189
========== ==========
Diluted 10,198 10,189
========== ==========
(1) Certain reclassifications were made to the 2001 amounts to conform
to the 2002 presentation.
Other Information
Beds under management
(excludes aftercare) 7,455 7,849
Compensated mandays 1,642,867 1,871,242
Three Months Ended September 30,
-------------------------------------
2002 2001
------------------ ------------------
Revenues $39,129 100.00% $42,344 100.00%
Facility expenses
Operating 35,579 90.93% 39,166 92.49%
---------- ------- ---------- -------
Contribution from
operations 3,550 9.07% 3,178 7.51%
---------- ------- ---------- -------
Other operating
expenses
General and
administrative(1) 2,136 5.46% 5,026 11.87%
Restructuring and
impairment - 0.00% 4,356 10.29%
Loss on contracts of
facilities to be closed - 0.00% 1,150 2.72%
Loss (gain) on disposal
of assets (2) -0.01% 677 1.59%
---------- ------- ---------- -------
2,134 5.45% 11,209 26.47%
---------- ------- ---------- -------
Operating income
(loss) 1,416 3.62% (8,031) -18.96%
Interest expense,
net(1) 581 1.48% 499 1.18%
---------- ------- ---------- -------
Income (loss) before income
taxes 835 2.14% (8,530) -20.14%
Income tax expense
(benefit) 363 0.93% (3,231) -7.63%
---------- ------- ---------- -------
Net income (loss) $472 1.21% ($5,299) -12.51%
========== ======= ========== =======
Basic and diluted earnings
(loss) per share $0.05 $(0.52)
========== ==========
Number of shares used to
compute EPS:
Basic 10,155 10,155
========== ==========
Diluted 10,225 10,155
========== ==========
(1) Certain reclassifications were made to the 2001 amounts to conform
to the 2002 presentation.
Other Information
Beds under management
(excludes aftercare) 7,455 7,849
Compensated mandays 537,269 573,656
SELECTED BALANCE SHEET DATA
September 30, December 31,
2002 2001
---------- ----------
Working Capital
(Deficit) $8,175 ($7,855)
Total Assets $80,415 $86,083
Long-term
Obligations $11,889 $314
Shareholders' Equity $49,286 $47,645
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