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| Correctional Services posts $1.5M loss in 2nd quarter |
| By Sarasota Herald-Tribune |
| Published: 08/23/2004 |
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Correctional Services Corp. reported a loss of $1.5 million for the second quarter as the company's juvenile operations continued to drag down profits. The prison manager's loss -- first reported two weeks ago -- translated to 14 cents per share. That compared with a profit of $429,000, or 4 cents per share, during the same 2003 quarter. Despite the loss, Correctional Services' revenues during the quarter grew by 5 percent, from $32.2 million to $33.5 million. Correctional Services lost $2.1 million, or 21 cents per share, during the first six months of 2004. That compared with a profits of $860,000, or 8 cents per share, during the same 2003 period. The company has been closing juvenile operations where there is no viable alternative to keep them operating. During the second quarter, Correctional Services stopped operations at its 226-bed Tarkio, Mo., center and recorded a $1.46 million asset impairment charge. State budget cuts along with a reduction in juvenile inmates has been hitting the company in certain regions of the nation. The trend is most prevalent in Texas, where the company expects it might have to close further centers if it can't restructure juvenile operations or convert them to adult operations. Meanwhile, the company's business in Georgia and Florida remains strong, executives said. The recently awarded juvenile contracts were all in its stronger regions and those contracts were structured to avoid occupancy risk. Correctional Services' shares, which trade on the Nasdaq, were selling for $2.91 at the close of regular trading on Monday, up 36 cents, or more than 14 percent. |
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