Company president/CEO James F. Slattery isn't discouraged by the red ink. In a prepared statement, he expects 2002 revenue of about $150 million; a contribution from operations of about $14.5 million; and earnings per share in the 18 cents to 25-cent range.
In first quarter 2002, Slattery is aiming for revenue of about $40 million; operations revenue of $3.5 million; and earnings per share of about four cents.
"We believe our underutilized Texas adult beds will continue to show increased utilization by federal agencies and our community corrections and after-care program expertise will open many new business opportunities," Slattery says.
The company operates 11 adult prisons with 4,300 beds in 15 states and 8,000 beds in Puerto Rico.
Slattery is telling shareholders the company is restoring profitability through improved facility operating margins; reducing general and administrative costs by 20%; discontinuing operations at five unprofitable facilities; selling $11 million in assets; and lowering total debt to $28 million, the lowest level in the last five years.
Revenue for 2001 was $174.4 million versus $210.8 million in 2000. Operations funds totaled $13 million compared to $25.2 million in the prior year.
Fourth-quarter revenue was $42.6 million versus $52.5 million in the comparable 2000 period. Net income of $405,000 or four cents per diluted share compares with $1 million or 10 cents per diluted share previously.
Slattery attributes the revenue drops in fourth quarter and all of 2001 to the sale of two operating contracts in 2000 and the shutdown of unprofitable properties in 2000 and 2001.
Sarasota is 180 miles northwest of Downtown Miami.
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