CCA chairman Ferguson to step down next year

Corrections Corp. of America Chairman and former CEO John Ferguson has told the company he'll retire from the board in the spring of next year. Ferguson has chaired the board of the prison management company since mid-2008, 15 months before he stepped down as CEO. Said current CEO Damon Hininger: "John was instrumental in the financial restructuring of the company and put CCA on a path of meaningful growth by investing in new capacity and solutions to meet the ever-changing needs of our government partners. John's leadership as chairman of the Board has served to further build on his immeasurable contributions to CCA and we congratulate him on his well-earned retirement."

Feb 25, 2015 12:44 PM

CCA hikes dividend 6%

The board of Corrections Corp. of America voted last week to lift the prison management company's quarterly dividend to 54 cents per shares from 51 cents. The move, which will go to shareholders of record as of April 2, will grow CCA's dividend yield above 5.3 percent. CCA shares (Ticker: CXW) at $40.55 and are up more than 10 percent year to date.

Feb 23, 2015 11:02 AM

Avondale analysts upbeat on Acadia, not so much on CCA

Avondale Partners analyst Paula Torch says investors should take advantage of Thursday's dip in Acadia shares, which came after the company reported its fourth-quarters and set 2015 targets. The latter, Torch noted, appear to include a good bit of noise — including the impact of currency swings from the company's new British operations — and thus likely caught some investors off guard even though the company is on track for more strong growth in 2015. She's keeping her 'market outperform' rating and $75 price target for Acadia, which fell 1.7 percent (Ticker: ACHC) to $63.65 Thursday.

Down the hall from Torch, Brian Hoffman has lifted his price target for shares of Corrections Corp. of America to $40 from $38 following the prison manager's better-than-expected Q4 numbers. But he's not upbeat about the company's prospects, noting among other things that several of its key government customers don't appear to be preparing to send more inmates to CCA. Shares of CCA (Ticker: CXW) rose 1.8 percent Thursday to close at $39.20.

Feb 13, 2015 11:33 AM

Earnings wrap: LifePoint, Acadia, CCA

Hospital and behavioral chains post strong same-store numbers, prison manager tops expectations
Feb 12, 2015 12:30 PM

Avondale: Look for CCA's Q4 top line to come up short

Locally based Avondale Partners analyst Brian Hoffman has run his channel checks for private prison managers Corrections Corp. of America and GEO Group and says CCA looks to have come up short of projections by almost 1,200 inmates. That, he says, should translate into a Q4 revenue shortfall of about $5 million, which would put CCA's top line at about $404 million versus Hoffman's estimate of $409 million and consensus of $412 million. Hoffman expects adjusted funds from operations — which he had forecast at 63 cents — should be hurt by a penny. CCA, which reports Q4 results Wednesday, was changing hands this morning at about $38.20 (Ticker: CXW) and is up slightly over the past three months.

Feb 10, 2015 12:04 PM

Alabama renews big Corizon contract

Alabama Department of Corrections officials this week voted to add 24 months to the wide-ranging inmate health care contract that has been run by Brentwood-based Corizon since 2012. The extension is worth $181 million to Corizon, which will add telemedicine and other services at facilities across Alabama.

Feb 6, 2015 11:03 AM

Corizon faces fight to renew $8M Texas contract

Brentwood-based inmate health services company Corizon will have to fight for an $8 million-per-year contract in Texas. The El Paso Times reports two other companies — one of them fellow local firm Correct Care Solutions — have bid to take over all or part of the El Paso County work. County commissioners, meanwhile, have asked a local hospital's leaders if they would be interested in assuming the work Corizon has done since 2009.

Feb 2, 2015 12:01 PM

Corizon wins NJ, Pennsylvania extensions

Brentwood-based Corizon Health has been awarded contract extensions from clients The Kintock Group in New Jersey and Pennsylvania and the Essex County Juvenile Detention Center in New Jersey. Both deals kicked in on Jan. 1 and are for three years.

Jan 19, 2015 8:37 AM

CCA says no to call to spend set amount to lower recidivism

Corrections Corp. of America has turned down a resolution by shareholder and inmate rights activist Alex Friedman that would have let investors vote on whether the company should have allocated 5 percent of its profits to programs designed to reduce recidivism rates among its inmates. In their appeal to the Securities and Exchange Commission, CCA officials said the resolution deals with "ordinary business operations."

Jan 13, 2015 12:14 PM

CCA's federal loss could become Oklahoma gain

Analyst Brian Hoffman at Avondale Partners has a silver lining for Corrections Corp. of America investors fretting over the pending loss of a $40 million Bureau of Prisons contract in Ohio. Yes, it smarts to have to give up the business to big rival GEO Group but, notes Hoffman, the BOP inmates will be housed in part at one of GEO's prisons in Oklahoma. That seems likely to lead to the state of Oklahoma awarding a contract for more than 2,000 beds to CCA, which has extra capacity in the Sooner State. Hoffman says the Oklahoma contract could amount to about 12 cents of adjusted funds from operations per share, 5 cents more than the BOP deal is bringing in.

Dec 31, 2014 6:54 AM