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Exhibit 99
TWC's Press Release
FOR IMMEDIATE RELEASE
THE WACKENHUT CORPORATION PROVIDES
GUIDANCE ON YEAR-END EARNINGS PROJECTIONS
PALM BEACH GARDENS, Fla. -- September 19, 2000 -- The Wackenhut Corporation
[NYSE: WAK, WAKB] announced today that its earnings projections for fiscal year
2000 should be adjusted due to today's announcement by its 57 percent-owned
subsidiary, Wackenhut Corrections Corporation [NYSE: WHC], of lower earnings
expectations for the year. The Wackenhut Corporation's revised guidance for
fiscal year 2000, adjusted solely for WHC's earnings revision, now ranges
between $1.19 and $1.28 in diluted earnings per share.
Wackenhut Corrections, the Company's correctional services subsidiary, announced
today a third quarter operating charge of $2.3 million after tax, or $0.11
(eleven cents) per share, related to the de-activation of the Jena, Louisiana
facility, which is estimated to remain idle through the fourth quarter, 2001. In
addition, Wackenhut Corrections is experiencing increased operating costs at
certain facilities, particularly with respect to a few high cost medical
incidents, increased wages, and increased general liability insurance rates.
Furthermore, Wackenhut Corrections' third quarter revenues and earnings are
adversely affected by the delayed opening of the Western Region Detention
Facility in San Diego. Consequently, Wackenhut Corrections expects full-year
2000 diluted earnings per share, assuming normalized occupancy and inmate
hospitalization expenses in the fourth quarter, to be in a range from $0.80 to
$0.85, including the $0.11 after-tax charge for the Jena facility, and before
any other possible adjustments.
Richard R. Wackenhut, vice chairman and chief executive officer of The Wackenhut
Corporation, said, "We are very disappointed in the current earnings projections
for Wackenhut Corrections and the effect that these shortfalls have on the
expected consolidated earnings of The Wackenhut Corporation. We are increasingly
concerned with the challenges that Wackenhut Corrections is facing in returning
its operations to prior levels of growth in profitability, and we are monitoring
very closely the steps they are taking to correct the situation."
Mr. Wackenhut added, "The Wackenhut Corporation's global physical security
services and flexible staffing businesses remain on course for 2000."
As announced today, Wackenhut Corrections' management will host a conference
call on Wednesday, September 20 at 10:00 a.m. Eastern Time. The call-in number
is 800-650-8824, (for international callers: 703-736-7228) and a replay is
available at 800-650-8824 through September 27, 2000.
THE WACKENHUT CORPORATION (www.wackenhut.com) is a leading provider of
integrated business services to major corporations, government agencies, and a
wide range of industrial and commercial customers. Its principal business lines
include security-related services; correctional services; and flexible staffing
services. Security-related services include physical security, alarms,
cash-in-transit, cargo tracking, fire fighting and prevention, background checks
and emergency protection. Correctional services include development and
management of correctional facilities of all types, rehabilitation programs and
mental health facilities. Flexible staffing services encompass human resources
management and payroll administration as a professional employer organization
(PEO), as well as temporary staffing, recruitment and training. The Company is a
leader in the privatization of public services for municipal, state and federal
agencies, and has operations throughout the United States and in 56 other
countries on six continents.
The Wackenhut Corporation is the majority shareholder in Wackenhut Corrections
Corporation (NYSE: WHC), a global leader in privatized corrections: designing,
financing, building, and managing correctional and detention facilities for
government agencies.
The Wackenhut Corporation trades on the New York Stock Exchange under two
symbols, the Series A Common Stock and the Series B Common Stock. The Series B
Common Stock has no voting rights, but in all other respects is the same as the
Series A Common Stock.
This press release contains forward-looking statements regarding future events
and future performance of the Company that involve risks and uncertainties that
could materially affect actual results. Investors should refer to documents that
the Company files from time to time with the Securities and Exchange Commission
for a description of certain factors that could cause actual results to vary
from current expectations and forward-looking statements contained in this press
release. Such filings include, without limitation, the Company's Form 10K, Form
10Q and Form 8K reports.
