Cornell Companies, Inc. (NYSE:CRN) today reported results for the
three and twelve months ended December 31, 2009, and provided
guidance for the first quarter and full year for 2010.
James E. Hyman, Cornell's chairman, president and chief
executive officer, said, "In the fourth quarter, Cornell executed
both operationally and financially to cap another strong year in
sustaining the growth in value to shareholders. In particular,
we successfully completed the construction of our new Hudson
Correctional Facility (Hudson) in Colorado and rapidly ramped the
initial population under our contract with the Alaska Department of
Corrections. As important, at the start of this year, the Federal
Bureau of Prisons (BOP) awarded us a contract of up to 10 years to
house up to 2,507 federal inmates at our D. Ray James Prison (DRJ)
facility in Georgia. We believe this sets a trajectory for
Cornell of solid long-term growth despite the challenging budget
environment that we face with our customers in 2010."
Fourth-Quarter Summary (in thousands, except
per share data)
|
|
Three Months Ended
|
Twelve Months Ended
|
As Reported
|
12/31/2009
|
12/31/2008
|
12/31/2009
|
12/31/2008
|
Revenue from operations
|
$104,054
|
$101,499
|
$412,377
|
$386,724
|
Income from operations
|
15,729
|
18,756
|
69,701
|
62,197
|
Net income
|
6,007
|
7,740
|
26,573
|
22,636
|
Income available to stockholders
|
5,446
|
7,384
|
24,626
|
22,191
|
EPS – diluted
|
$0.36
|
$0.50
|
$1.64
|
$1.49
|
Diluted shares outstanding used in per share computation
|
15,042
|
14,862
|
14,986
|
14,847
|
Fourth Quarter Results
Revenues grew 2.5 percent to $104.1 million for the fourth
quarter of 2009 from $101.5 million in the 2008 period. Much
of the increase came from the activation of Hudson during the
fourth quarter of 2009, as well as higher populations at several
facilities including the Regional Correctional Center (RCC) and the
Reid Community Residential Facility. Average contract
occupancy levels were 89.8 percent for our residential facilities
compared with 90.2 percent in last year's fourth quarter. Excluding
start-up in the 2009 fourth quarter, our average contract occupancy
level was 90.7 percent.
Income from operations of $15.7 million for the fourth quarter
of 2009 decreased from $18.8 million in the fourth quarter of
2008. Results in the fourth quarter of 2009 included $2.9
million of pre-opening and start-up expenses (net of revenues)
related to the opening and ramp of Hudson. The 2008 period included
a net claim settlement received of $1.5 million as well as a gain
on the settlement of a life insurance policy pertaining to the
Company's founder of approximately $0.7 million.
For the fourth quarter of 2009, the Company reported net income
of $6.0 million compared with net income of $7.7 million in last
year's fourth quarter. In the fourth quarter of 2009 the
Company also reported income available to stockholders of $5.4
million, or $0.36 per diluted share, compared with income available
to stockholders of $7.4 million, or $0.50 per diluted share, in the
prior year's fourth quarter. As previously noted, results in the
fourth quarter of 2009 included $2.9 million of pre-opening
and start-up expenses, net of revenues (or $0.11 per diluted share,
after taxes) related to the opening and ramp of Hudson. The
fourth quarter 2008 results also included a net claim settlement
received of $1.5 million in pre-tax income (or $0.06 per diluted
share, after taxes), as well as a gain on the settlement of a life
insurance policy pertaining to the Company's founder of
approximately $0.7 million (or $0.03 per diluted share, after
taxes).
The Company capitalized no interest in the fourth quarter of
2009, compared with capitalized interest of $0.6 million (or $0.02
per diluted share, after taxes) in the fourth quarter of 2008.
Increased Revenues, Net Income for the Full Year
2009
For the twelve months ended December 31, 2009, revenues grew 6.6
percent to $412.4 million from $386.7 million for the twelve months
ended December 31, 2008. The increase was principally related
to the facility expansions at the Great Plains Correctional
Facility (Great Plains) and the Walnut Grove Youth Correctional
Facility in the third quarter of 2008, the activation of our Hudson
facility in the fourth quarter of 2009 and occupancy growth at
those programs mentioned earlier. In addition, the 2008 period
included approximately $1.5 million resulting from the guaranteed
population contract at the RCC for the contract period ended March
2008.
Higher revenues increased income from operations to $69.7
million for the 2009 twelve month period compared with $62.2
million in the prior year's twelve month period. Net income
in 2009 was $26.6 million compared with net income of $22.6 million
in 2008. For the twelve months ended December 31, 2009, the
Company reported an increase in income available to stockholders of
11.0 percent to $24.6 million, or $1.64 per diluted share, from
income available to stockholders of $22.2 million, or $1.49 per
diluted share, in last year's twelve month period. The
Company capitalized interest of $0.7 million (or $0.03 per diluted
share, after taxes) during 2009. Also included in 2009 results
is $2.9 million of pre-opening and start-up expenses, net of
revenues (or $0.11 per diluted share, after taxes) related to the
opening and ramp of Hudson. Included in 2008 results is a net
claim settlement received of $1.5 million in pre-tax income (or
$0.06 per diluted share, after taxes), as well as a gain on the
settlement of a life insurance policy pertaining to the Company's
founder of approximately $0.7 million (or $0.03 per diluted share,
after taxes). 2008 results also included pre-tax capitalized
interest of $2.9 million (or $0.12 per diluted share, after taxes),
and revenues of approximately $1.5 million from the RCC true-up
calculation mentioned earlier.
Earnings Outlook for First Quarter and Full Year
2010
Because of the previously mentioned repositioning of its D.Ray
James facility to the BOP contract, management expects lower
earnings in 2010 than in 2009. Specifically, for the full year
2010, management anticipates earnings per share to range from $1.31
to $1.41 per share. For the first quarter of 2010, management
expects earnings of $0.18 to $0.22 per share.
These guidance ranges include the following major
assumptions:
-
DRJ Transition to BOP: The full year guidance reflects the
Company's plans to transition its D. Ray James Prison from the
Georgia Department of Corrections (GADOC) inmates currently housed
there to the BOP contract effective October 1, 2010. While the
base BOP contract population is 2,180 inmates, the contract allows
for a population of up to the 2,507 maximum capacity. The
estimated impact of the transition is approximately $0.24 per share
in 2010, but could vary substantially depending on the rate of
ramp-down of inmates with the GADOC, and ramp-up of inmates with
the BOP. For ramp-down, the guidance assumes that the GADOC
will start reducing their population in the second quarter and
empty the facility by early in the third quarter. For the BOP
ramp-up, the guidance assumes that we will achieve the contract's
90% population guarantee by the end of the fourth quarter. In
addition, the Company expects to spend approximately $8.0 million
in capital expenditures, primarily for FF&E items and facility
maintenance improvements related to the older parts of the facility
to prepare D. Ray James for BOP inmates.
-
Great Plains: The guidance for 2010 assumes that the
Arizona Department of Corrections continues to use our Great Plains
facility at their present level for the entire year. Actual
results could differ materially from management's expectations
based on actual usage of the facility (which could reflect either
increases or decreases). Ultimate resolution of this matter,
which will depend on timing of Arizona's budget process, may not
occur until the third quarter of 2010.
-
All Other Facilities: Our guidance assumes that occupancies
at our other facilities across our Adult Secure Services and
Abraxas Youth and Family Services operating divisions strengthen
through the year, with the exception of our two small male
Community Correctional Facilities in California (totaling 622 beds
of service capacity). The Company assumes these facilities will not
fill during 2010.
Comparing the Company's first quarter of 2010 guidance to its
fourth quarter of 2009 actual results requires certain
adjustments. First, the first quarter is negatively impacted
by two fewer days than the fourth quarter. Second, the first
quarter is also negatively impacted by unemployment taxes as base
wage rates reset for state unemployment tax
purposes. Management will provide additional detail relating
to the bridge between fourth quarter of 2009 results and first
quarter of 2010 guidance on the company's conference
call.
Quarterly Webcast
Cornell's management will host a conference call and
simultaneous webcast at 11:00 a.m. Eastern time on Thursday,
February 25, 2010. The webcast may be accessed through
Cornell's home page, www.cornellcompanies.com. An
audio replay and podcast will be available on the above Website, or
can otherwise be heard by dialing (800) 406-7325 or (303) 590-3030
and providing confirmation code 4226983. The replay will be
available through Thursday, March 4, 2010 by phone and through
Friday, February 25, 2011 on the Web site. This earnings
release can be found on Cornell's Website under "Investor Relations
– Press Releases."
Forward-Looking Statements
Statements regarding the Company's outlook for 2010, ability to
succeed, growth for 2010 and beyond, long-term demand, future
earnings, completion of preparations for the BOP inmates at D. Ray
James Prison, timing of the transition of the D. Ray Prison from
the GADOC inmates to the BOP contract, continued use by the Arizona
Department of Corrections of our Great Plains facility, and results
of operations, as well as any other statements that are not
historical facts, are forward-looking statements within the meaning
of applicable securities laws that involve certain risks,
uncertainties and assumptions. These include but are not
limited to risks and uncertainties associated with general economic
and market conditions, including the impact governmental budgets
can have on our per diem rates and occupancy, Cornell's ability to
perform according to its current expectations, changes in supply
and demand, actions by government agencies and other third parties,
access to capital and other risks and uncertainties detailed in the
Company's most recent Form 10-K and other filings made by us from
time to time with the Securities and Exchange Commission, which are
available free of charge on the SEC's Web site at
www.sec.gov. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from the statements
made. All information set forth in this release is current as
of the date of this release. Cornell undertakes no duty to update
any statement in light of new information or future events.
About Cornell Companies
Cornell Companies, Inc. (http://www.cornellcompanies.com) is a
leading private provider of corrections, treatment and educational
services outsourced by federal, state and local governmental
agencies. Cornell provides a diversified portfolio of services for
adults and juveniles, including incarceration and detention,
transition from incarceration, drug and alcohol treatment programs,
behavioral rehabilitation and treatment, and grades 3-12
alternative education in an environment of dignity and respect,
emphasizing community safety and rehabilitation in support of
public policy. At December 31, 2009, the Company had 68
facilities in 15 states and the District of Columbia and a total
service capacity of 21,392.
The Cornell Companies, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=1468
CORNELL COMPANIES, INC.
|
FINANCIAL HIGHLIGHTS
|
(in thousands, except per share data)
|
|
|
|
|
|
|
Three Months Ended
|
Twelve Months Ended
|
|
December 31,
|
December 31,
|
|
2009
|
2008
|
2009
|
2008
|
|
|
|
|
|
Revenues
|
$104,054
|
$101,499
|
$412,377
|
$386,724
|
Operating expenses, excluding depreciation and
amortization
|
73,601
|
70,906
|
295,645
|
280,630
|
Pre-opening and start-up expenses
|
4,086
|
--
|
4,086
|
--
|
Depreciation and amortization
|
4,740
|
5,100
|
18,833
|
17,943
|
General and administrative expenses
|
5,898
|
6,737
|
24,112
|
25,954
|
Income from operations
|
15,729
|
18,756
|
69,701
|
62,197
|
Interest expense, net
|
6,267
|
6,342
|
25,173
|
23,958
|
Income before provision for income taxes and non-controlling
interest
|
9,462
|
12,412
|
44,528
|
38,239
|
Provision for income taxes
|
3,455
|
4,672
|
17,955
|
15,603
|
Net income
|
6,007
|
7,740
|
26,573
|
22,636
|
Non-controlling interest
|
561
|
356
|
1,947
|
445
|
Income available to Cornell Companies, Inc.
|
$5,446
|
$7,384
|
$24,626
|
$22,191
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
- Basic
|
$0.37
|
$0.50
|
$1.65
|
$1.51
|
- Diluted
|
$0.36
|
$0.50
|
$1.64
|
$1.49
|
|
|
|
|
|
Number of shares used in per share computation:
|
|
|
|
|
- Basic
|
14,893
|
14,732
|
14,881
|
14,701
|
- Diluted
|
15,042
|
14,862
|
14,986
|
14,847
|
|
|
|
|
|
Total service capacity (end of period)
|
21,392
|
19,945
|
21,392
|
19,945
|
Contracted beds in operation (end of period)
|
17,663
|
16,821
|
17,663
|
16,821
|
Average contract occupancy (A)
|
89.8%
|
90.2%
|
91.1%
|
92.0%
|
Average contract occupancy excluding start-up operations
|
90.7%
|
90.2%
|
91.4%
|
92.0%
|
|
|
|
|
|
|
|
|
|
|
(A) Average contract occupancy percentages are calculated based
on actual occupancy for the period as a percentage of the
contracted capacity for residential facilities in operation. These
percentages do not reflect the operations of non-residential
community-based programs. At certain residential facilities, our
contracted capacity is lower than the facility's service capacity.
In addition, certain facilities have and are currently operating
above the contracted capacity. As a result, average contract
occupancy percentages can exceed 100% if the average actual
occupancy exceeded contracted capacity.
|
Balance Sheet Data:
|
|
|
(in thousands)
|
December 31,
|
December 31,
|
|
2009
|
2008
|
Cash and cash equivalents
|
$ 27,724
|
$ 14,613
|
Working capital
|
64,575
|
45,205
|
Property and equipment, net
|
455,523
|
450,354
|
Total assets
|
650,565
|
636,921
|
Long-term debt
|
289,841
|
308,070
|
Total debt
|
303,254
|
320,482
|
Stockholders' equity
|
258,738
|
228,167
|
|
|
|
MCF Reserve Balances:
|
|
|
Bond Fund Payment Account
|
9,813
|
10,286
|
Debt Service Reserve Fund
|
23,372
|
23,750
|
CORNELL COMPANIES, INC.
OPERATING STATISTICS FROM CONTINUING OPERATIONS
For the Three and Twelve Months Ended December 31, 2009
and 2008
|
|
|
|
Three Months Ended December 31,
|
|
2009
|
2008
|
|
|
%
|
|
%
|
Contracted beds in operation(1):
|
|
|
|
|
Adult Secure Services
|
14,121
|
80%
|
12,793
|
76%
|
Adult Community-based Services
|
2,325
|
13%
|
2,635
|
16%
|
Abraxas Youth & Family Services
|
1,217
|
7%
|
1,393
|
8%
|
Total
|
17,663
|
100%
|
16,821
|
100%
|
|
|
|
|
|
Number of billed mandays:
|
|
|
|
|
Adult Secure Services
|
1,080,121
|
67%
|
1,061,893
|
67%
|
Adult Community-based Services:
|
|
|
|
|
Residential
|
270,724
|
17%
|
229,684
|
15%
|
Non-residential(2)
|
56,841
|
4%
|
65,782
|
4%
|
Abraxas Youth & Family Services:
|
|
|
|
|
Residential
|
99,916
|
6%
|
103,930
|
7%
|
Non-residential(2)
|
111,679
|
6%
|
121,781
|
7%
|
Total
|
1,619,281
|
100%
|
1,583,070
|
100%
|
|
|
|
|
|
Revenues (in 000's):
|
|
|
|
|
Adult Secure Services
|
$59,770
|
57%
|
$57,613
|
57%
|
Adult Community-based Services:
|
|
|
|
|
Residential
|
18,415
|
18%
|
16,930
|
17%
|
Non-residential
|
639
|
1%
|
645
|
1%
|
Abraxas Youth & Family Services:
|
|
|
|
|
Residential
|
20,208
|
19%
|
20,674
|
20%
|
Non-residential
|
5,022
|
5%
|
5,637
|
5%
|
Total
|
$104,054
|
100%
|
$101,499
|
100%
|
|
|
|
|
|
Average revenue per diem:
|
|
|
|
|
Adult Secure Services
|
$55.34
|
|
$54.25
|
|
Adult Community-based Services:
|
|
|
|
|
Residential
|
$68.02
|
|
$73.71
|
|
Non-residential(2)
|
$11.24
|
|
$9.80
|
|
Abraxas Youth & Family Services:
|
|
|
|
|
Residential
|
$202.25
|
|
$198.92
|
|
Non-residential(2)
|
$44.97
|
|
$46.29
|
|
Total
|
$64.26
|
|
$64.12
|
|
|
|
|
|
|
Income from Operations (in
000's)(3):
|
|
|
|
|
Adult Secure Services
|
$14,283
|
|
$18,388
|
|
Adult Community-based Services
|
6,612
|
|
5,101
|
|
Abraxas Youth & Family Services
|
1,136
|
|
2,998
|
|
|
|
|
Twelve Months Ended December 31,
|
|
2009
|
2008
|
|
|
%
|
|
%
|
Contracted beds in
operation(1):
|
|
|
|
|
Adult Secure Services
|
14,121
|
80%
|
12,793
|
76%
|
Adult Community-based Services
|
2,325
|
13%
|
2,635
|
16%
|
Abraxas Youth & Family Services
|
1,217
|
7%
|
1,393
|
8%
|
Total
|
17,663
|
100%
|
16,821
|
100%
|
|
|
|
|
|
Number of billed mandays:
|
|
|
|
|
Adult Secure Services
|
4,283,958
|
66%
|
3,870,860
|
64%
|
Adult Community-based Services:
|
|
|
|
|
Residential
|
1,059,052
|
16%
|
985,384
|
16%
|
Non-residential(2)
|
225,517
|
3%
|
244,725
|
4%
|
Abraxas Youth & Family Services:
|
|
|
|
|
Residential
|
422,530
|
7%
|
429,461
|
7%
|
Non-residential(2)
|
485,008
|
8%
|
512,713
|
9%
|
Total
|
6,476,064
|
100%
|
6,043,143
|
100%
|
|
|
|
|
|
Revenues (in 000's):
|
|
|
|
|
Adult Secure Services
|
$233,586
|
57%
|
$209,283
|
54%
|
Adult Community-based Services:
|
|
|
|
|
Residential
|
70,889
|
17%
|
67,471
|
17%
|
Non-residential
|
2,594
|
1%
|
2,692
|
1%
|
Abraxas Youth & Family Services:
|
|
|
|
|
Residential
|
83,653
|
20%
|
82,523
|
21%
|
Non-residential
|
21,655
|
5%
|
24,755
|
7%
|
Total
|
$412,377
|
100%
|
$386,724
|
100%
|
|
|
|
|
|
Average revenue per diem:
|
|
|
|
|
Adult Secure Services
|
$54.53
|
|
$54.07
|
|
Adult Community-based Services:
|
|
|
|
|
Residential
|
$66.94
|
|
$68.47
|
|
Non-residential(2)
|
$11.50
|
|
$11.00
|
|
Abraxas Youth & Family Services:
|
|
|
|
|
Residential
|
$197.98
|
|
$192.15
|
|
Non-residential(2)
|
$44.65
|
|
$48.28
|
|
Total
|
$63.68
|
|
$63.99
|
|
|
|
|
|
|
Income from Operations (in
000's)(3):
|
|
|
|
|
Adult Secure Services
|
$64,824
|
|
$63,170
|
|
Adult Community-based Services
|
23,714
|
|
19,191
|
|
Abraxas Youth & Family Services
|
7,353
|
|
8,829
|
|
|
|
|
|
|
1 Residential contract capacity only.
|
2 Non-residential "mandays" includes a mix of day
units and hourly units. Mental health facilities are reported in
hours.
|
3 Segment-level income from operations exclude
general and administrative expenses, amortization of intangibles
and corporate overhead charges that are included in consolidated
income from operations.
|
CONTACT: Cornell Companies, Inc.
Chris Coonfield, Manager - Investor Relations
(713) 623-0790
![Cornell Companies, Inc. Logo](http://media.primezone.com/cache/4653/small/1770.jpg)
Cornell (NYSE:CRN)
過去 株価チャート
から 6 2024 まで 7 2024
Cornell (NYSE:CRN)
過去 株価チャート
から 7 2023 まで 7 2024