Corrections Corporations
June 16, 2011 – 5:07 pm
Business Profile
Corrections Corporations is America’s fifth largest and privately operated correctional and detention company. It services includes design, construction, management, renovation, ownership of new and existing jails and prison as well as the transportation services for long distance.
Company has 65 correctional, juvenile and detention facilities, including about 40 owned facilities. The total capacity is about 72,000 beds and company provides their facilities in about 19 states of America and Columbia District. Company has three additional detention and correctional facilities that leases operators for third party. Company provides several transportation services for prisons to government agencies. Apart from these residential services to inmates company also provides several educational and rehabilitation programs like life skills, basic education, employment training and religious services. The company also provides several health care, food and recreational programs. Further, company is in process of constructing 1,896-bed in addition as correctional facility in Eloy, Arizona. This facility is expected completion by mid-2007.
CCA shares were traded on New York Stock Exchange in 1994 under the ticker of CXW. Company was founded in 1983 by Tom Beasley, Don Hutto and Doctor Crants and has there headquartered in Nashville, Tennessee. Company has more than 16,000 employees across the nation.
The Company has various facilities, which can be clearly classified, according to level of security provided at each facility. They are as follows:-
Minimum security: These facilities have open housing. They are appropriately designed and have patrolled institutional perimeter.
Medium security: These facilities are rooms, cells or dormitories. They have a secure perimeter and external patrol of various forms.
Maximum security: These facilities include a secure perimeter, cells and external patrol.
Multi security: These facilities possess various areas having minimum, medium or maximum level of security.
Non-secure: These are having open housing that stops / controls movement.
Secure: These facilities have cells, rooms, or dormitories, a secure fencing, and external patrol.
Company has facilities, which can be classified according to primary function, which can be categorized as below:
Correctional Facilities. These facilities provide shelter and services to sentenced adult prisoners and typical prisoners who have been sentenced for excess of one year.
Detention Facilities. These facilities house & provide agreed programs and services to
Prisoners detained by ICE
Prisoners awaiting trial those who have been charged with violations of federal criminal law or state criminal law
Prisoners who are convicted of crimes and who have been given sentence of a year or less.
Juvenile Facilities. These facilities house and provide agreed programs and services to juveniles i.e. persons below the age of 18. These prisoners are determined to be delinquents by a juvenile court.
Leased Facilities. These facilities fall under any of the above categories. It is owned by the Company but is not managed. These are leased to third party for managing it.
The operation of company is very specialized and requires liaisioning with various government officials. The company’s operations can be grouped into two major facilities:-
Operation and Management of Correctional and Detention Facilities
Company has customers from federal, state and local detention and correctional authorities. Company has federal authorities as primary source of revenue. Federal correctional and detention authorities represented 40%, 39%, and 38%, respectively of total revenue for years 2006, 2005, and 2004. Federal correctional and detention authorities primarily consist of the Federal Bureau of Prisons, or the BOP, the United States Marshals Service, or the USMS, and the U.S. Immigration and Customs Enforcement, or ICE. The company normally enters into one to five years of contract with multiple renewal options. The company’s facility contracts also contain clauses, which allow government agencies to terminate it at any time without prior notice or cause. The contracts of company are generally subject to annual or two year legislative appropriation of funds.
Prisoner Transportation Services
The Company provides transportation services to government agencies. It has various wholly owned subsidiaries like TransCor America, LLC, or TransCor who are key in providing these services on behalf.
TransCor is the largest third-party prisoner extradition company in the United States. Through a “hub-and-spoke” network, TransCor provides nationwide coverage to over 800 federal, state, and local agencies across the country. During the years 2006, 2005, and 2004 TransCor generated total consolidated revenue of $15.1 million, $14.6 million, and $19.1 million respectively. The company also focuses on existing customers by utilizing TransCor’s services. Thus TransCor services are complementary to the company’s core business. Thus it helps to quickly respond to customers’ transportation needs.
The company has increased its Focus on providing New Bed Capacity. This is as a result of increase in demand from both federal and state customers. Also most of its facilities are going full and require further more space and bed. Thus company has intensified efforts to add capacity to address the lack of available beds that existing and potential customers are experiencing.