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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) - April 23, 1998
Wackenhut Corrections Corporation
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(Exact Name of Registrant as Specified in Its Charter)
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FLORIDA 0-24438 65-0043078
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(State or Other Jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
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4200 Wackenhut Drive #100, Palm Beach Gardens, Florida 33410-4243
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(Address of Principal Executive Offices) (Zip Code)
(Registrant's Telephone Number, Including Area Code) (561) 622-5656
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NOT APPLICABLE
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(Former Name or Former Address; if Changed Since Last Report)
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Item 5. Other Events.
This Current Report on Form 8-K is being filed to disclose the press
release issued by Wackenhut Corrections Corporation (the "Company") on April 23,
1998. The press release, which is filed as Exhibit 99 hereto, was to announce
the Company's unaudited operating results for the quarter ended March 31, 1998.
Item 7. Financial Statement and Exhibits
(c) Exhibits.
Exhibit No. Description Sequential Page Number
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99 Press Release dated 4
April 23, 1998
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WACKENHUT CORRECTIONS CORPORATION
April 23, 1998 By: /s/ John G. O'Rourke
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John G. O'Rourke
Senior Vice President - Finance,
Treasurer and Chief Financial Officer
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Exhibit 99
WACKENHUT CORRECTIONS REPORTS RECORD NET INCOME -- 45 PERCENT INCREASE OVER LAST
YEAR'S FIRST QUARTER
PALM BEACH GARDENS, Fla., April 23 /PRNewswire/ -- Wackenhut Corrections
(NYSE: WHC-news) today reported first quarter 1998 net income increased 43.2
percent to $3.7 million, from $2.6 million in the first quarter 1997. Earnings
per share increased to 17 cents (16 cents, on a diluted basis) from 12 cents (11
cents, diluted). First quarter revenue increased 72.9 percent to $71.3 million,
from $41.1 million in the 1997 first quarter.
Dr. George C. Zoley, president and chief executive officer of Wackenhut
Corrections, said: "We are absolutely delighted with our performance. The
continued income and revenue increases are due to our 40 percent increase in
revenue-producing beds over the past six months.
"Thirteen (13) new facilities with a design capacity of approximately 7,000
beds have been added since December 1997 representing a new company record. The
openings took place simultaneously on three continents, North America, Europe
and Australia. Separate start-up teams coordinated by the corporate office
achieved their openings on time and without disruption. We believe this
unparalleled accomplishment once again illustrates Wackenhut Corrections'
operational excellence," he added.
Dr. Zoley continued: "Wackenhut Corrections is presently responding to
business opportunities around the globe. In light of the current trend toward
private sector financing, access to capital is critical for our continued
growth. Accordingly, Wackenhut Corrections undertook the co-registration and
public offering for Correctional Properties Trust, a real estate investment
trust which will acquire select facilities from the company and lease them back.
It will also offer these services to other private and public organizations.
"The lead underwriter for the offering was Salomon Smith Barney, with
Prudential, SBC Warburg Dillon Read, Suntrust Equitable, and Genesis Merchant
Group as co-managers. Correctional Properties Trust is listed on the New York
Stock Exchange under the symbol CPV."
He added, "As a result of the initial public offering of Correctional
Properties Trust, which began trading this morning, Wackenhut Corrections
anticipates the receipt of $42.3 million in cash from the sale of facilities,
which will be used primarily to fund future business development opportunities.
"We currently have 10 projects under development, totaling almost 7,000 beds
in the United States, Scotland and England. Three of them are under option for
purchase by Correctional Properties Trust."
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Wackenhut Corrections, a world leader in the privatized corrections
industry, has contracts/awards to manage 46 facilities in North America, Europe
and Australia with a total of 30,144 beds, and additional contracts for prisoner
transportation, correctional health care services, and maintenance of secure
facilities.
Wackenhut Corrections (NYSE: WHC-news) is a subsidiary of The Wackenhut
Corporation (NYSE: WAK and WAKB-news) and offers government agencies a turnkey
approach to developing new correctional institutions that includes design,
construction, financing and operations. It provides a broad spectrum of
correctional services, which include adult corrections, juvenile facilities,
community corrections and special purpose institutions. The company is a global
leader in providing innovative healthcare and rehabilitative programs.
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 10-K, Form 10-Q, Form S-3 and Form 8-K reports.
First quarter financial results follow:
WACKENHUT CORRECTIONS CORPORATION
Consolidated Statements of Income
For the thirteen weeks ended
March 29, 1998 and March 30, 1997
(In thousands, except per share data) (UNAUDITED)
13 Weeks Ended
March 29, 1998 March 30, 1997
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Revenues $71,269 $41,227
Operating Expenses 59,258 34,400
Depreciation and Amortization 2,667 1,148
Contribution from Operations 9,344 5,679
G & A Expense 3,788 2,407
Operating Income 5,556 3,272
Interest Income 245 532
Income Before Income Taxes &
Equity Income of Affiliate 5,801 3,804
Provision for Income Taxes 2,368 1,469
Income Before Equity Income
of Affiliate 3,433 2,335
Equity Income of Affiliate, Net 264 246
Net Income $ 3,697 $ 2,581
Basic Earnings per Share $ 0.17 $ 0.12
Diluted Earnings per Share 0.16 0.11
Basic Weighted Average
Shares Outstanding 22,185 21,945
Diluted Weighted Average
Shares Outstanding 22,816 22,600
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Operating Data
13 Weeks Ended
March 29, 1998 March 30, 1997
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*Revenue-producing beds 21,980 13,982
**Compensated mandays 1,767,856 1,070,986
**Average occupancy 95.6% 97.6%
*Includes H.M. Prison Doncaster and H.M. Prison Lowdham Grange (United Kingdom)
**Excludes H.M. Prison Doncaster and H.M. Prison Lowdham Grange (United Kingdom)
