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| Actions in Connecticut, Georgia may hurt CCA |
| By The Tennessean |
| Published: 09/13/2004 |
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Recent actions in two states could delay or kill Corrections Corporation of America's efforts to win contracts to house new prison inmates there. In Georgia, the state's procurement office because of ''budget'' reasons has canceled a request for proposals on a contract to house 1,000 inmates, said Pat Swindle, an analyst at investment banking firm Avondale Partners of Nashville. CCA was one of the bidders on the contract and, if successful, had planned to house the inmates at its Stewart County Correctional Facility in Lumpkin, Ga. ''We still think Georgia has a need for prison beds, and we just have to wait and see how they come out with respect to their budget,'' said Irving Lingo, chief financial officer with Nashville-based CCA, which operates prisons nationwide. Swindle, in a stock research report issued last week, also cited actions in Connecticut that could affect CCA's bid to win a contract to house up to 2,500 inmates. M. Jodi Rell, that state's new governor, just announced plans to bring home by year-end the 400 Connecticut inmates housed in a Virginia prison. She also has expressed a lack of interest in sending Connecticut inmates to privatized prisons outside the state, Swindle said. CCA had mentioned a company-owned prison in Youngstown, Ohio, as a possible site to house Connecticut inmates. Connecticut's request for proposals is still out for the 2,500 beds, but all state contracts are under review. ''It doesn't appear this contract will be awarded in the very near term because of the change in administration,'' Swindle said. The analyst, who rates CCA ''market outperform,'' however, said that CCA is in the best position to win the Connecticut contract if it's eventually awarded. He said the two contracts represent only a sample of potential opportunities for the company. Lingo, CCA's CFO, yesterday said the company has possible customers besides Connecticut for the beds available in Youngstown. With overall demand for prison beds continuing to outpace supply, ''when you look out, we feel very good about things,'' Lingo said. Shares of CCA fell 76 cents to $34.59 a share last week. |
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Hamilton is a sports lover, a demon at croquet, where his favorite team was the Dallas Fancypants. He worked as a general haberdasher for 30 years, but was forced to give up the career he loved due to his keen attention to detail. He spent his free time watching golf on TV; and he played uno, badmitton and basketball almost every weekend. He also enjoyed movies and reading during off-season. Hamilton Lindley was always there to help relatives and friends with household projects, coached different sports or whatever else people needed him for.