Correctional Services Corp. Finalizes Contract to Operate 96 Bed Juvenile Facility in Dallas
SARASOTA, Fla.--(BUSINESS WIRE)--April 24, 1998--Correctional Services Corp. (NASDAQ NMS:CSCQ - news) Friday announced it has finalized a contract to operate a 96 bed multi purpose juvenile facility in Dallas.
The contract with the Dallas County Juvenile Board calls for the company to provide substance abuse, boot camp and after-market services for various levels of adjudicated juveniles.
The facility is expected to open in the third quarter of 1998 and generate revenues of $2.4 million annually.
``This contract adds to our leadership position in providing innovative and effective services to adjudicated Texas Youth,'' stated James F. Slattery, CEO and President. ``Led by James Irving, vice president/juvenile division, our dedicated staff of juvenile experts continues to be recognized for their ability to design programs to reduce recidivism levels. We are very pleased to having been chosen for this important project.''
Slattery further stated: ``The 96 beds in Dallas, in addition to the previously announced 361 beds in Puerto Rico, brings the company's year-to-date growth in juvenile beds under management to over 34%. This increase is a result of the company's focused efforts to develop business in our target markets.''
Correctional Services Corp. is a leading developer and manager of privatized correctional and detention facilities in the United States. Through its three divisions: Adult, Juvenile, and Community Corrections, the company provides a diverse range of programs and services to local, state, and federal governmental agencies. The company has 28 contracts to manage facilities in Florida, New York, Arizona, Texas, New Mexico, Washington, Mississippi and Puerto Rico with an aggregate of 4,795 beds.
750 bed facility should add another .15 to the revenue numbers for 1999. If the 21 multiple stands that should put the stock up 3 3/8 from here. And if this contract is for real, then they will have proven that they are able to get some of the larger deals done and should be granted a higher multiple in line with the rest of the industry. Maybe good for another point or two or three. There contracts are 20 or 30 years in length. And from state governments. Looks like a pretty predictable revenue stream to me!! (Unless or course they aren't Y2K compliant and the doors fly open at the stroke of midnight and they lose all of their guests. Just kidding.) This one has winner written all over it to me.
Although this industry is a sure-fire in an age of assinine proportions, it is racist. It is 12 times more likely for an African-American woman to go to prison than a white male... the numbers are there, look them up.