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Exhibit 99
WHC's Press Release
FOR IMMEDIATE RELEASE
WHC'S THIRD AND FOURTH QUARTER EARNINGS
TO BE BELOW PREVIOUS EXPECTATIONS
PALM BEACH GARDENS, Fla. - September 19, 2000 - Wackenhut Corrections
Corporation [NYSE: WHC] today reported 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, the company is experiencing
increased operating costs during the third quarter related to higher costs at
certain facilities, particularly with respect to a few high cost medical
incidents, increased wages, and increased general liability insurance rates.
Furthermore, revenues and earnings in the third quarter are adversely affected
by the delayed opening of the Western Region Detention Facility at San Diego.
Consequently, management expects full-year diluted earnings per share, assuming
normalized occupancy and inmate hospitalization expenses in the fourth quarter,
to be in a range between $0.80 to $0.85, including the $0.11 after-tax charge
for the Jena facility, and before any other possible adjustments.
Third quarter 2000 diluted earnings per share are estimated to be between $0.11
to $0.13, on net income ranging from $2.4 million to $2.8 million. Excluding the
charge related to the Jena project, third quarter 2000 diluted earnings per
share are estimated to be between $0.22 to $0.24, on net income ranging from
$4.7 million to $5.1 million.
Fourth quarter 2000 diluted earnings per share are expected to be between $0.24
and $0.27, assuming normalized occupancy and inmate hospitalization expenses,
and before any other possible adjustments.
"While we are pleased with the overwhelming majority of our facilities and our
new organizational structure, we are very disappointed with our financial
performance for the second half of 2000," said Dr. George C. Zoley, Vice
Chairman and Chief Executive Officer. "I am personally committed to resolving
these critical issues so that we can minimize the impact on future operating
results."
Wackenhut Corrections' management will host a conference call to review the
above information on Wednesday, September 20th, at 10:00 a.m. Eastern Time. The
call in number is 800-650-8824. (International callers: 703-736-7228.) The call
will be open to the general public, and a replay will be available through
September 27, 2000 by dialing 800-650-8824.
Wackenhut Corrections, a world leader in the privatized corrections industry,
has contracts/awards to manage 56 correctional/detention facilities in North
America, Europe, Australia, South Africa and New Zealand with a total of 39,472
beds. The Company also provides prisoner transportation services; electronic
monitoring for home detainees; correctional health care; and mental health
services.
The company is a subsidiary of The Wackenhut Corporation [NYSE: WAK / WAKB] and
offers government agencies a turnkey approach to the development of new
correctional and mental health institutions that includes design, construction,
financing and operations.
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.
