<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended September 28, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
---------- -----------
COMMISSION FILE NUMBER 1-14260
WACKENHUT CORRECTIONS CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 65-0043078
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4200 Wackenhut Drive #100, Palm Beach Gardens, Florida 33410-4243
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(561) 622-5656
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since
last report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve (12) months (or for such shorter period that the registrant
was required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
At November 3, 1997, 22,155,542 shares of the registrant's Common Stock were
issued and outstanding.
Page 1 of 15
<PAGE> 2
WACKENHUT CORRECTIONS CORPORATION
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following consolidated financial statements of Wackenhut Corrections
Corporation, a Florida corporation (the "Corporation") have been prepared in
accordance with the instructions to Form 10-Q and, therefore, omit or condense
certain footnotes and other information normally included in financial
statements prepared in accordance with generally accepted accounting principles.
In the opinion of management, all adjustments (consisting only of normal
recurring accruals) necessary for a fair presentation of the financial
information for the interim periods reported have been made. Results of
operations for the thirty-nine weeks ended September 28, 1997 are not
necessarily indicative of the results for the entire fiscal year ending December
28, 1997.
Page 2 of 15
<PAGE> 3
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS ENDED
SEPTEMBER 28, 1997 AND SEPTEMBER 29, 1996
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
--------------------------------------------------
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
----------------------- ----------------------
<S> <C> <C>
Revenues $ 55,104 $ 36,785
Operating expenses (including amounts related to
The Wackenhut Corporation ("Parent")
of $803 and $1,018) 45,594 30,837
Depreciation and amortization 1,947 948
----------------------- ----------------------
Contribution from operations 7,563 5,000
G&A expense (including amounts related to
Parent of $396 and $358) 2,762 2,061
----------------------- ----------------------
Operating income 4,801 2,939
Interest income (including amounts
related to Parent of $42 and ($118)) 128 455
----------------------- ----------------------
Income before income taxes and equity
income of affiliate 4,929 3,394
Provision for income taxes 1,923 1,263
----------------------- ----------------------
Income before equity income of affiliate 3,006 2,131
Equity income of affiliate, net of income tax
provision of $123 and $175 182 280
----------------------- ----------------------
Net income $ 3,188 $ 2,411
======================= ======================
Earnings per share $ 0.14 $ 0.11
======================= ======================
Weighted average shares outstanding 22,771 22,642
======================= ======================
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements.
Page 3 of 15
<PAGE> 4
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTY-NINE WEEKS ENDED
SEPTEMBER 28, 1997 AND SEPTEMBER 29, 1996
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
-------------------------------------------------
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
----------------------- ----------------------
<S> <C> <C>
Revenues $ 147,840 $ 99,635
Operating expenses (including amounts related
to Parent of $3,531 and $2,623) 123,160 84,053
Depreciation and amortization 4,605 2,554
----------------------- ----------------------
Contribution from operations 20,075 13,028
G&A expense (including amounts related to
Parent of $1,167 and $1,074) 8,213 6,457
----------------------- ----------------------
Operating income 11,862 6,571
Interest income (including amounts related
to Parent of ($50) and ($9)) 946 1,752
----------------------- ----------------------
Income before income taxes and equity
income of affiliate 12,808 8,323
Provision for income taxes 4,995 3,092
----------------------- ----------------------
Income before equity income of affiliate 7,813 5,231
Equity income of affiliate, net of income tax
provision of $434 and $289 679 462
----------------------- ----------------------
Net income $ 8,492 $ 5,693
======================= ======================
Earnings per share $ 0.37 $ 0.26
======================= ======================
Weighted average shares outstanding 22,666 22,058
======================= ======================
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these statements.
Page 4 of 15
<PAGE> 5
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 28, 1997 AND DECEMBER 29, 1996
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
SEPTEMBER 28, 1997 DECEMBER 29, 1996
----------------------- ------------------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 24,889 $ 44,368
Accounts receivable, net 32,803 24,879
Other 7,363 6,066
----------------------- ------------------------
Total current assets 65,055 75,313
Property and equipment, net 34,474 18,975
Investments in and advances to affiliates 5,767 1,810
Deferred charges, net 11,170 7,522
Unamortized cost in excess of net assets
of acquired companies, net 1,816 2,224
Other 5,867 967
----------------------- ------------------------
$ 124,149 $ 106,811
======================= ========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,363 $ 4,020
Accrued payroll and related taxes 4,515 4,558
Accrued expenses 6,404 3,717
Current portion of long-term debt 12 12
Deferred income tax liability, net 1,095 876
----------------------- ------------------------
Total current liabilities 16,389 13,183
----------------------- ------------------------
Deferred income taxes, net 10,437 5,434
----------------------- ------------------------
Long-term debt 405 225
----------------------- ------------------------
Shareholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized --- ---
Common stock, $.01 par value,
30,000,000 shares authorized,
22,066,644 and 21,937,992 shares
issued and outstanding 221 219
Additional paid-in capital 74,057 72,986
Retained earnings 22,840 14,348
Cumulative translation adjustment (200) 416
----------------------- ------------------------
Total shareholders' equity 96,918 87,969
----------------------- ------------------------
$ 124,149 $ 106,811
======================= ========================
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these balance sheets.
Page 5 of 15
<PAGE> 6
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED
SEPTEMBER 28, 1997 AND SEPTEMBER 29, 1996
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
----------------------------------------------
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------------ ------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,492 $ 5,693
Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation and amortization expense 4,605 2,554
Equity income of affiliates (1,113) (751)
Changes in assets and liabilities --
(Increase) decrease in assets:
Accounts receivable (8,208) (4,850)
Other current assets (1,496) (2,766)
Other assets (927) 42
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 3,345 353
Accrued payroll and related taxes 96 (190)
Deferred income tax liability - current 231 20
Deferred income taxes - non-current 5,003 2,522
------------------------ -----------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 10,028 $ 2,627
------------------------ -----------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investments in affiliates (2,844) ---
Capital expenditures (18,278) (8,811)
Deferred charge expenditures (9,599) (2,991)
------------------------ -----------------------
NET CASH USED IN INVESTING ACTIVITIES $ (30,721) $ (11,802)
------------------------ -----------------------
</TABLE>
(Continued)
The accompanying notes to consolidated financial statements are an
integral part of these statements.
Page 6 of 15
<PAGE> 7
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED
SEPTEMBER 28, 1997 AND SEPTEMBER 29, 1996
(IN THOUSANDS)
(UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
-------------------------------------------------
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
--------------------- ---------------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock $ --- $ 51,593
Proceeds from exercise of stock options 1,073 719
Retirement of debt (21) (783)
Proceeds from debt 201 ---
Advances from Parent 62,614 72,847
Repayments to Parent (62,308) (72,847)
--------------------- ---------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES $ 1,559 $ 51,529
--------------------- ---------------------
Effect of exchange rate changes on cash (345) 190
Net (decrease) increase in cash (19,479) 42,544
Cash, beginning of period 44,368 909
--------------------- ---------------------
CASH, END OF PERIOD $ 24,889 $ 43,453
===================== =====================
SUPPLEMENTAL DISCLOSURES:
Impact on equity from tax benefit related to the
exercise of options issued under the company's non-
qualified stock option plan $ --- $ 1,157
===================== =====================
</TABLE>
The accompanying notes to consolidated financial statements are an
integral part of these statements.
Page 7 of 15
<PAGE> 8
WACKENHUT CORRECTIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies followed for the quarterly financial reporting are the
same as those disclosed in Note 2 of the Notes To Consolidated Financial
Statements included in the Corporation's Form 10-K filed with the Securities and
Exchange Commission on March 28, 1997 for the fiscal years ended December 29,
1996, December 31, 1995 and January 1, 1995. Certain prior year amounts have
been reclassified to conform with current year financial statement presentation.
2. EARNINGS PER SHARE
Statement of Financial Accounting Standards No. 128, "Earnings per Share"
requires the disclosure of basic and diluted earnings per share for periods
ending after December 15, 1997 and, upon adoption, will require restatement of
prior periods to conform with the new disclosure format. The computation under
SFAS No. 128 differs from the primary and fully diluted earnings per share
computed under APB Opinion No. 15 primarily in the manner in which potential
common stock is treated. Basic earnings per share is computed by dividing net
income by the weighted-average number of common shares outstanding. In the
computation of diluted earnings per share, the weighted-average number of common
shares outstanding is adjusted for the effect of all potential common stock.
The pro forma basic and diluted earnings per share computed according to SFAS
No. 128 are as follows:
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
--------------------
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
------------------ ------------------
<S> <C> <C>
Basic earnings per share $ 0.14 $ 0.11
Diluted earnings per share 0.14 0.11
</TABLE>
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
-----------------------
SEPTEMBER 28, 1997 SEPTEMBER 29, 1997
------------------ ------------------
<S> <C> <C>
Basic earnings per share $ 0.39 $ 0.27
Diluted earnings per share 0.37 0.26
</TABLE>
Page 8 of 15
<PAGE> 9
WACKENHUT CORRECTIONS CORPORATION
3. DOMESTIC AND INTERNATIONAL OPERATIONS
A summary of domestic and international operations is presented below:
<TABLE>
<CAPTION>
THIRTY-NINE WEEKS ENDED
SEPTEMBER 28, 1997 SEPTEMBER 29, 1996
----------------------- -----------------------
(in thousands)
<S> <C> <C>
REVENUES
Domestic operations $ 120,291 $ 77,524
International operations 27,549 22,111
----------------------- -----------------------
Total revenues $ 147,840 $ 99,635
======================= =======================
OPERATING INCOME
Domestic operations $ 8,847 $ 4,352
International operations 3,015 2,219
----------------------- -----------------------
Total operating income $ 11,862 $ 6,571
======================= =======================
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 28, 1997 DECEMBER 29, 1996
----------------------- -----------------------
(in thousands)
<S> <C> <C>
IDENTIFIABLE ASSETS
Domestic operations $ 105,501 $ 96,872
International operations 18,648 9,938
----------------------- -----------------------
Total identifiable assets $ 124,149 $ 106,811
======================= =======================
</TABLE>
4. FINANCING INSTRUMENTS
In June 1997, the Corporation entered into a $30 million multi-currency
revolving credit facility with a syndicate of banks, the proceeds of which may
be used for working capital, acquisitions and general corporate purposes. The
credit facility also includes a letter of credit of up to $10 million for the
issuance of standby letters of credit. As of November 3, 1997, no amounts were
outstanding under this facility.
In June 1997, the Corporation also entered into an $80 million operating lease
facility that has been established to acquire and develop new correctional
institutions used in its business. As a condition of this facility, the
Corporation unconditionally agreed to guarantee certain obligations of First
Security Bank, National Association, a party to the aforementioned operating
lease facility. As of November 3, 1997, approximately $47 million of properties
were under development.
Page 9 of 15
<PAGE> 10
WACKENHUT CORRECTIONS CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
In June 1997, the Corporation entered into a $30 million multi-currency
revolving credit facility with a syndicate of banks, the proceeds of which may
be used for working capital, acquisitions and general corporate purposes. The
credit facility also includes a letter of credit of up to $10 million for the
issuance of standby letters of credit. As of November 3, 1997, no amounts were
outstanding under this facility.
In June 1997, the Corporation also entered into an $80 million operating lease
facility that has been established to acquire and develop new correctional
institutions used in its business. As a condition of this facility, the
Corporation unconditionally agreed to guarantee certain obligations of First
Security Bank, National Association, a party to the aforementioned operating
lease facility. As of November 3, 1997, approximately $47 million of properties
were under development. In addition, the Corporation had outstanding four
standby letters of credit with a bank in the aggregate amount of approximately
$220,000.
In June 1997, the Corporation purchased the Queens Private Correctional
Facility, a 66,000 square foot building currently being as a 200-bed federal
detention facility, for $6.6 million. The Corporation also invested another $4.7
million to renovate the building.
On July 18, 1997, Atlantic Shores Healthcare, Inc. a wholly-owned subsidiary of
Wackenhut Corrections Corporation, completed the purchase of an 86-bed
psychiatric hospital in Fort Lauderdale, Florida for $6 million. The hospital
has been renamed Atlantic Shores Hospital.
Reference is made to Item 7, Part II of the Corporation's Annual Report on Form
10-K for the fiscal year ended December 29, 1996, filed with the Securities and
Exchange Commission on March 28, 1997, for further discussion and analysis of
information pertaining to the Corporation's results of operations, liquidity and
capital resources.
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
Corporation's consolidated financial statements and the notes thereto.
COMPARISON OF THIRTEEN WEEKS ENDED SEPTEMBER 28, 1997 AND THIRTEEN WEEKS ENDED
SEPTEMBER 29, 1996:
Revenues increased by 49.8% to $55.1 million in the thirteen weeks ended
September 28, 1997 ("Third Quarter 1997") from $36.8 million in the thirteen
weeks ended September 29, 1996 ("Third Quarter 1996"). The increase in revenues
in Third Quarter 1997 compared to Third Quarter 1996 is primarily attributable
to increased compensated resident days resulting from the opening of five
facilities in the First Quarter of 1997 (South Bay Correctional Facility, South
Bay, Florida in February 1997, Travis County Community Justice Center, Travis
County, Texas in March 1997, Bayamon Regional Detention Center, Bayamon, Puerto
Rico in March 1997, Queens Private Correctional Facility, Queens, New York in
March 1997 and Fulham Correctional Center, Victoria, Australia in March 1997).
Page 10 of 15
<PAGE> 11
WACKENHUT CORRECTIONS CORPORATION
The number of compensated resident days in domestic facilities increased to
1,156,912 in Third Quarter 1997 from 866,197 in Third Quarter 1996 and average
facility occupancy in domestic facilities increased to 97.0% of capacity in
Third Quarter 1997 compared to 96.6% in the same period in 1996. In addition,
compensated resident days in Australian facilities increased to 162,158 from
109,848 for the comparable periods.
Operating expenses increased by 47.9% to $45.6 million in Third Quarter 1997
compared to $30.8 million in Third Quarter 1996, reflecting the operations of
the five facilities that opened in First Quarter 1997.
Depreciation and amortization increased by 105.3% to $1.9 million in Third
Quarter 1997 from $0.9 million in Third Quarter 1996. This increase represents
deferred charge amortization attributable to the new facilities, in addition to
depreciation associated with the purchase of two facilities.
Contribution from operations increased 51.2% to $7.6 million in Third Quarter
1997 from $5.0 million in Third Quarter 1996 due primarily to the operations of
facilities opened during the First Quarter of 1997.
General and administrative expenses increased 34.0% to $2.8 million in Third
Quarter 1997 from $2.1 million in Third Quarter 1996. This increase is
attributable to increased business development activities in response to
additional interest in the Corporation's services and infrastructure growth to
support the Corporation's expanded operations.
Operating income increased by 63.3% to $4.8 million in Third Quarter 1997 from
$2.9 million in Third Quarter 1996. As described above, the operations of newly
opened facilities were the principal factors contributing to the increase in
operating income during Third Quarter 1997.
Income before taxes and equity income increased by 45.2% to $4.9 million in
Third Quarter 1997 from $3.4 million in Third Quarter 1996 due to the factors
described above, offset by lower interest income resulting from a decrease in
invested cash.
Provision for income taxes increased to $1.9 million in Third Quarter 1997 from
$1.3 million in Third Quarter 1996 due to higher taxable income and a higher
effective tax rate.
Equity income of affiliates decreased 35% to $182,000 in Third Quarter 1997 from
$280,000 in Third Quarter 1996. This decrease is the result of the payment of
management fees to the two joint venture partners beginning in the Fourth
Quarter of 1996.
Page 11 of 15
<PAGE> 12
WACKENHUT CORRECTIONS CORPORATION
COMPARISON OF THIRTY-NINE WEEKS ENDED SEPTEMBER 28, 1997 AND THIRTY-NINE WEEKS
ENDED SEPTEMBER 29, 1996.
Revenues increased by 48.4% to $147.8 million in the thirty-nine weeks ended
September 28, 1997 ("First Nine Months 1997") from $99.6 million in the
thirty-nine weeks ended September 29, 1996 ("First Nine Months 1996"). The
increase in revenues in First Nine Months 1997 compared to First Nine Months
1996 is primarily attributable to increased compensated resident days at: two
facilities opened in the first half of 1996 (Willacy County Unit, Willacy
County, Texas in January 1996, and Marshall County Correctional Facility,
Marshall County, Mississippi in June 1996), one facility for which the
Corporation assumed operational responsibility (Delaware County Prison, Delaware
County, Pennsylvania in April 1996); and five facilities opened in the First
Quarter of 1997 (South Bay Correctional Facility, South Bay, Florida in February
1997, Travis County Community Justice Center, Travis County, Texas in March
1997, Bayamon Regional Detention Center, Bayamon, Puerto Rico in March 1997,
Queens Private Correctional Facility, Queens, New York in March 1997 and Fulham
Correctional Center, Victoria, Australia in March 1997).
The number of compensated resident days in domestic facilities increased to
3,262,307 in First Nine Months 1997 from 2,255,492 in First Nine Months 1996 and
average facility occupancy increased to 96.9% of capacity in First Nine Months
of 1997 compared to 96.1% in 1996. In addition, compensated resident days in
Australian facilities increased to 412,196 from 333,344 for the comparable
periods.
Operating expenses increased by 46.5% to $123.2 million in First Nine Months
1997 compared to $84.1 million in First Nine Months 1996, reflecting the eight
facilities that opened in 1996 and 1997, as described above.
Depreciation and amortization increased by 80.3% to $4.6 million in the First
Nine Months 1997 from $2.6 million in the First Nine Months 1996. This increase
represents deferred charge amortization attributable to the new facilities in
addition to depreciation associated with the purchase of two facilities.
Contribution from operations increased by 54.1% to $20.1 million in First Nine
Months 1997 from $13.0 million in First Nine Months 1996 due primarily to the
opening of the South Bay Correctional Facility in February 1997, the openings of
the Queens Private Correctional Facility, Travis County Community Justice Center
and Fulham Correctional Center in March 1997, and a full nine months of
operating results at the Marshall County Correctional Facility which opened in
June 1996.
General and administrative expenses increased by 27.2% to $8.2 million in First
Nine Months 1997 from $6.5 million in First Nine Months 1996. This increase is
primarily attributable to increased business development activities in response
to additional interest in the Corporation's services and infrastructure growth
to support the Corporation's expanded operations.
Operating income increased by 80.5% to $11.9 million in First Nine Months 1997
from $6.6 million in First Nine Months 1996, primarily due to the operations of
newly opened facilities, as described above.
Page 12 of 15
<PAGE> 13
WACKENHUT CORRECTIONS CORPORATION
Income before taxes and equity income increased by 53.9% to $12.8 million in
First Nine Months 1997 from $8.3 million in First Nine Months 1996 due to the
factors described above, offset by lower interest income resulting from a
decrease in invested cash.
Provision for income taxes increased to $5.0 million in First Nine Months 1997
from $3.1 million in First Nine Months 1996 due to higher taxable income and an
increase in the Company's effective tax rate.
Equity income of affiliates increased 47% to $679,000 for First Nine Months 1997
versus $462,000 in First Nine Months 1996. The current year increase results
from expansions at the H.M. Prison Doncaster, (Doncaster, England) in June 1996
and March 1997, and operations of two court escort contracts that commenced in
May 1996.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
Page 13 of 15
<PAGE> 14
WACKENHUT CORRECTIONS CORPORATION
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The nature of the Corporation's business results in claims or litigation against
the Corporation for damages arising from the conduct of its employees or others.
Except for routine litigation incidental to the business of the Corporation,
there are no pending material legal proceedings to which the Corporation or any
of its subsidiaries is a party or to which any of their property is subject. The
Corporation believes that the outcome of the proceedings to which it is
currently a party will not have a material adverse effect upon its operations or
financial condition.
ITEM 2. CHANGES IN SECURITIES
Not applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -
27 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K - The Corporation did not file a Form 8-K during
the third quarter of 1997.
Page 14 of 15
<PAGE> 15
WACKENHUT CORRECTIONS CORPORATION
SIGNATURES
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, thereunto duly authorized.
November 12, 1997 /s/ JOHN G. O'ROURKE
-------------------------------------
John G. O'Rourke
Senior Vice President - Finance,
Chief Financial Officer and Treasurer
Page 15 of 15
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AT SEPTEMBER 28, 1997 AND THE CONSOLIDATED STATEMENT
OF INCOME FOR THE FISCAL PERIOD ENDING SEPTEMBER 28, 1997.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-30-1996
<PERIOD-END> SEP-28-1997
<CASH> 24,889
<SECURITIES> 0
<RECEIVABLES> 32,803
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 65,055
<PP&E> 32,790
<DEPRECIATION> 4,316
<TOTAL-ASSETS> 124,149
<CURRENT-LIABILITIES> 16,389
<BONDS> 417
0
0
<COMMON> 221
<OTHER-SE> 96,698
<TOTAL-LIABILITY-AND-EQUITY> 124,149
<SALES> 0
<TOTAL-REVENUES> 147,840
<CGS> 0
<TOTAL-COSTS> 127,765
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 12,809
<INCOME-TAX> 5,001
<INCOME-CONTINUING> 8,492
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,492
<EPS-PRIMARY> .37
<EPS-DILUTED> .37
</TABLE>
