2014-12-05 cxw.n (globaldata) corrections corporation of america (cxw) - financi...sis review

Corrections Corporation of America (CXW) - Financial and Strategic SWOT Analysis Review

Reference Code: GDBCS28560FSA

Source : www.globalcompanyintelligence.com Page 1 GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form


Reference Code: GDBCS28560FSA Publication Date: DEC 2014

10 Burton Hills Boulevard Phone +1 615 2633000 Revenue 1,694.3 (million USD)

NASHVILLE Fax +1 615 2633140 Net Profit 300.84 (million USD)

37215 Website cca.com Employees 15,400

United States Exchange CXW [New York Stock Exchange] Industry Business and Consumer Services

Company Overview Corrections Corporation of America (CCA) is a prison and detention center operating company. The company provides correctional and detention services through its facilities spread across the US. CCA operates 66 correctional and detention facilities, which include 53 facilities owned by the company, with a capacity of around 86,000 beds spread across 20 states in the US. In addition, the company offers a variety of services such as inmate residential and prisoner transportation services for governmental agencies; and rehabilitation and educational programs, which include providing basic education, religious services, life skills, and employment training and substance abuse treatment.

Key Executives Name Title

Damon T. Hininger Chief Executive Officer

John D. Ferguson Chairman

Anne L. Mariucci Director

Mark A. Emkes Director

Donna M. Alvarado Director Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

Share Data Corrections Corporation of America

Share Price (USD) as on 02-Dec-2014

36.79

EPS (USD) 2.74

Market Cap (million USD) 4,285

Enterprise Value (million USD) 5,476

Shares Outstanding (million) 116 Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

SWOT Analysis Corrections Corporation of America, SWOT Analysis

Strengths Weaknesses

Broad Customer Base

Comprehensive Offerings

Dependence on Government Budgets

Decline in Occupancy Level

Opportunities Threats

Growing Correction Industry

Recent Contracts

Government Regulation

Highly Competitive Market

Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

Financial Performance

Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData




Table of Contents Table of Contents ............................................................................................................................................................................... 2

List of Tables .................................................................................................................................................................................. 4List of Figures ................................................................................................................................................................................. 5

Section 1 - About the Company .......................................................................................................................................................... 6Corrections Corporation of America - Key Facts ................................................................................................................................ 6Corrections Corporation of America - Key Employees ....................................................................................................................... 7Corrections Corporation of America - Key Employee Biographies ..................................................................................................... 9Corrections Corporation of America - Major Products and Services ................................................................................................ 11Corrections Corporation of America - History ................................................................................................................................... 12Corrections Corporation of America - Company Statement .............................................................................................................. 14Corrections Corporation of America - Locations And Subsidiaries ................................................................................................... 16

Head Office ................................................................................................................................................................................... 16Other Locations & Subsidiaries ..................................................................................................................................................... 16

Section 2 Company Analysis ......................................................................................................................................................... 17Corrections Corporation of America - Business Description ............................................................................................................. 17Corrections Corporation of America - Corporate Strategy ................................................................................................................ 18Corrections Corporation of America - SWOT Analysis ..................................................................................................................... 19SWOT Analysis - Overview .............................................................................................................................................................. 19Corrections Corporation of America - Strengths ............................................................................................................................... 19

Strength - Broad Customer Base .............................................................................................................................................. 19Strength - Comprehensive Offerings ......................................................................................................................................... 19

Corrections Corporation of America - Weaknesses .......................................................................................................................... 20Weakness - Dependence on Government Budgets .................................................................................................................. 20Weakness - Decline in Occupancy Level .................................................................................................................................. 20

Corrections Corporation of America - Opportunities ......................................................................................................................... 21Opportunity - Growing Correction Industry ................................................................................................................................ 21Opportunity - Recent Contracts ................................................................................................................................................. 21Opportunity - Strategic Initiatives .............................................................................................................................................. 21

Corrections Corporation of America - Threats .................................................................................................................................. 22Threat - Government Regulation ............................................................................................................................................... 22Threat - Highly Competitive Market ........................................................................................................................................... 22Threat - Operational Risk .......................................................................................................................................................... 22

Corrections Corporation of America - Key Competitors .................................................................................................................... 23Section 3 Company Financial Ratios ............................................................................................................................................. 24Financial Ratios - Capital Market Ratios ........................................................................................................................................... 24Financial Ratios - Annual Ratios ...................................................................................................................................................... 25Performance Chart ........................................................................................................................................................................... 27Financial Performance ...................................................................................................................................................................... 27Financial Ratios - Interim Ratios ....................................................................................................................................................... 28Financial Ratios - Ratio Charts ......................................................................................................................................................... 29Corrections Corporation of America, Recent Deals Summary .......................................................................................................... 30Section 4 Appendix ....................................................................................................................................................................... 31

Methodology ................................................................................................................................................................................. 31Ratio Definitions ............................................................................................................................................................................ 31About GlobalData ......................................................................................................................................................................... 35




Contact Us .................................................................................................................................................................................... 35Disclaimer ..................................................................................................................................................................................... 35




List of Tables

Corrections Corporation of America, Key Facts ................................................................................................................................. 6Corrections Corporation of America, Key Employees ........................................................................................................................ 7Corrections Corporation of America, Key Employee Biographies ...................................................................................................... 9Corrections Corporation of America, Major Products and Services .................................................................................................. 11Corrections Corporation of America, History .................................................................................................................................... 12Corrections Corporation of America, Subsidiaries ............................................................................................................................ 16Corrections Corporation of America, Key Competitors ..................................................................................................................... 23Corrections Corporation of America, Ratios based on current share price ....................................................................................... 24Corrections Corporation of America, Annual Ratios ......................................................................................................................... 25Corrections Corporation of America, Interim Ratios ......................................................................................................................... 28Corrections Corporation of America, Recent Deals Summary .......................................................................................................... 30Currency Codes ............................................................................................................................................................................... 31Capital Market Ratios ....................................................................................................................................................................... 31Equity Ratios .................................................................................................................................................................................... 32Profitability Ratios ............................................................................................................................................................................. 32Cost Ratios ....................................................................................................................................................................................... 33Liquidity Ratios ................................................................................................................................................................................. 33Leverage Ratios ............................................................................................................................................................................... 34Efficiency Ratios ............................................................................................................................................................................... 34




List of Figures

Corrections Corporation of America, Performance Chart (2009 - 2013) ........................................................................................... 27Corrections Corporation of America, Ratio Charts ........................................................................................................................... 29




Section 1 - About the Company Corrections Corporation of America - Key Facts Corrections Corporation of America, Key Facts

Corporate Address 10 Burton Hills Boulevard, NASHVILLE, 37215, United States

Ticker Symbol, Exchange CXW [New York Stock Exchange]

Telephone +1 615 2633000 No. of Employees 15,400

Fax +1 615 2633140 Fiscal Year End December

URL cca.com Revenue (in USD Million) 1,694.3

Industry Business and Consumer Services

Locations United States Source: Annual Report, Company Website, Primary and Secondary Research GlobalData




Corrections Corporation of America - Key Employees

Corrections Corporation of America, Key Employees

Name Job Title Board Level Since Age

Damon T. Hininger Chief Executive Officer, Director, President

Executive Board

2009

John D. Ferguson Chairman Executive Board 2008

Anne L. Mariucci Director Non Executive Board 2011

Mark A. Emkes Director Non Executive Board 2014

Donna M. Alvarado Director Non Executive Board 2003

John D. Correnti Director Non Executive Board 2000

Robert J. Dennis Director Non Executive Board 2013

C. Michael Jacobi Director Non Executive Board 2000

Thurgood Marshall, Jr. Director Non Executive Board 2002

Charles L. Overby Director Non Executive Board 2001

John R. Prann, Jr. Director Non Executive Board 2001

Joseph V. Russell Director Non Executive Board 1999

Bart VerHulst Vice President Partnership Relations

Senior Management 2008

David Garfinkle Chief Financial Officer, Executive Vice President

Senior Management

2001

Kim White Senior Vice President Human Resources


Steven Conry Vice President Facility Operations, Business Unit 3


Brian Collins Chief Human Resources Officer, Executive Vice President

Senior Management

2009 54

Lucibeth Mayberry Senior Vice President Real Estate


Brad Regens Vice President Partnership Relations


Daren Swenson Vice President Facility Operations, Business Unit 2

Senior Management

John Pfeiffer Chief Information Officer, Vice President Technology

Senior Management

2002

J. Michael Quinlan Senior Vice President Senior Management

Patrick Swindle Vice President Treasury and Strategic Development


Natasha Metcalf Vice President Partnership Development


Harley G. Lappin Chief Corrections Officer, Executive Vice President

Senior Management

2011

John Robinson Vice President ity Operations, Business Unit I

Senior Management

Tony L. Grande Chief Development Officer, Executive Vice President

Senior Management

2008

Steve Groom Executive Vice President, Senior Management 2010




General Counsel

John Baxter Vice President Health Services


David Churchill Vice President Human Resources


Brian Hammonds Vice President Finance Senior Management 2014

Mike Nalley Vice President Correctional Programs


Source: Annual Report, Company Website, Primary and Secondary Research GlobalData




Corrections Corporation of America - Key Employee Biographies

Corrections Corporation of America, Key Employee Biographies

Damon T. Hininger Job Title: Chief Executive Officer, Director, President Board Level: Executive Board Since: 2009

Mr. Hininger has been the chief executive officer, the president and a director of CCA since August 2009. Previusly, he served as chief operating officer of the company from 2008 to 2009. Prior to the current assignment, he served as the senior vice president, Federal and Local Customer Relations, in the organisation from 2007 to 2008. He joined the company in 1992 and thereafter served several positions, which include the vice president, business analysis, and as the vice president, Federal Customer Relations, before being apponted as the senior vice president.

John D. Ferguson Job Title: Chairman Board Level: Executive Board Since: 2008

Mr. Ferguson has been the chairman of Corrections Corporation of America since 2008. Previously, he served as chief executive officer of the company from 2000 to 2000 and president from 2000 to 2008. He joined the company with an extensive experience of 33-years in finance, entrepreneurial ventures, corporate turnarounds and government experience. Recently, he served as the Commissioner of Finance and Administration for the state of Tennessee for a duration of four years. He also co-founded Econocom in 1971, a computer sales and leasing company. In the year 1982, he founded a merger and acquisitions organisation, and thereby served as its Chief Executive Officer till 1993.

David Garfinkle Job Title: Chief Financial Officer, Executive Vice President Board Level: Senior Management Since: 2001

Mr. Garfinkle has been the Executive Vice President and the Chief Financial Officer since May 2014. He served the company as the vice president, Finance. Prior to joining CCA, he was vice president and controller for Bradley Real Estate, Inc. Garfinkle also served as a senior manager in the Audit practice at KPMG Peat Marwick.

Brian Collins Job Title: Chief Human Resources Officer, Executive Vice President Board Level: Senior Management Since: 2009 Age: 54

Brian Collins has been the chief human resources officer and the executive vice president of the company since 2009. Prior to CCA, Collins served a distinguished 25-year career in the service industry with Wal-Mart Stores, Inc., that included roles in management, human resources, customer satisfaction, staff training, and professional development. Since 1981, he has held positions to include regional personnel manager, director of operations, market director, director of field support, director of operations support, and director of operations.

John Pfeiffer Job Title: Chief Information Officer, Vice President Technology Board Level: Senior Management Since: 2002

Mr. Pfeiffer has been the Vice President, Technology, and the Chief Information Officer of CCA since 2002. He has over eight years of experience in information technology and four years of experience in the US Navy. Before the current assignment, he spent three years as the chief of operations at Bytes of Knowledge, a Nashville-based IT consulting company. Prior to that, he served as a director of Information Systems and Telecommunications at LifeTrust America. During 1994-1998, he served as an administrator, Informatics Center at Vanderbilt University Medical Center. During 1990-1994, he served in the US Navy, as a Surface Warfare Officer. Additionally, he serves as an Adjunct Instructor, Information Systems Management at the Jack C.




Massey School of Business at Belmont University.

Harley G. Lappin Job Title: Chief Corrections Officer, Executive Vice President Board Level: Senior Management Since: 2011

Mr. Lappin has been in the role of Chief Corrections Officer in the company since 2011. Prior to this role, he served as director of the Federal Bureau of Prisons (BOP) since 2003. He began his career as a case manager at Federal Correctional Institution in 1985.

Tony L. Grande Job Title: Chief Development Officer, Executive Vice President Board Level: Senior Management Since: 2008

Mr. Grande has been the the Executive Vice President and the Chief Development Officer of CCA since 2008. Prior to the current assignment, he served as the senior vice president, State Customer Relations, since 2007. He joined the company in 2003 as the vice president, State Customer Relations. Previously, he served as Tennessee's Commissioner of Economic and Community Development (ECD), responsible for the recruitment and expansion of business to the State since 1998. Mr. Grande thereafter served as an assistant commissioner and was later apponted as the deputy commissioner of ECD. Previously, he led a publishing and database marketing company, served there as a political speechwriter in Washington, DC.





Corrections Corporation of America - Major Products and Services CCA is a correctional and detention servicing company operating in the US. The key services offered by the company include the following:

Corrections Corporation of America, Major Products and Services

Services:

Correctional Facilities

Detention Facilities

Leased Facilities

Prisoner Transportation Services

Food Services

Dynamic Rehabilitation and Education Programs:

Employment Training

GED Preparation and Testing

Addictions Treatment





Corrections Corporation of America - History

Corrections Corporation of America, History

2011 Corporate Changes/Expansions Metro-Davidson County Detention Facility expanded its capacity by adding 256 beds.

2010 Contracts/Agreements In November, the company received the renewal of its contract from the California Department of Corrections and Rehabilitation to manage up to 9,588 California inmates.

2010 Contracts/Agreements In September, the company entered into an Intergovernmental Service Agreement (IGA) with the California City, to manage federal populations at CCA's 2,304-bed California City Correctional Center.

2010 Contracts/Agreements In September, the company received a contract from the Georgia Department of Corrections to manage 1,150 male inmates in the Jenkins Correctional Center.

2009 Contracts/Agreements The company has got a contract to manage detainee populations for U.S. Immigration and Customs Enforcement

2007 Corporate Awards Forbes magazine named the company among the US's Best Big Companies. It was also ranked as The Best of The Best in the area of Business Services and Supplies for business development and meeting the nations growing demand for quality corrections management services.

1999 Corporate Changes/Expansions The company opened David L. Moss Criminal Justice Center in Tulsa, Oklahoma.

1995 Acquisitions/Mergers/Takeovers The company acquired TransCor America, Inc., the long-distance inmate transportation company.

1994 Stock Listings/IPO Corrections Corporation of America went public as its shares got listed in New York Stock Exchange.

1993 New Products/Services The company started lifeLine substance abuse treatment program at its Metro-Davidson County Detention Facility in Nashville, Tennessee.

1992 Corporate Changes/Expansions The company established Leavenworth Detention Center, for the US Marshals Service.

1990 Corporate Changes/Expansions The company established Winn Correctional Center in Winn Parish, Louisiana.

1989 Corporate Changes/Expansions The company started first privately built and operated women's prison in the US.

1986 Corporate Changes/Expansions The company established Shelby Training Center in Memphis, Tennessee for the Juvenile Court of Memphis and Shelby County.




1984 Corporate Changes/Expansions Houston Processing Center was established.

1984 Corporate Changes/Expansions The company started Tall Trees, a 63-bed, non-secure juvenile facility, for the Juvenile Court of Memphis and Shelby County.

1983 Incorporation/Establishment Corrections Corporation of America was established by three businessmen, Tom Beasley, Don Hutto and Doctor Crants.





Corrections Corporation of America - Company Statement A Joint statement by Mr.John D. Ferguson, Chairman of the Board and Mr. Damon T. Hininger, President and Chief Executive Officer of the company is given below. The following statement has been taken from the company's 2013 letter to shareholders. 2013 was a transformative year with CCA having completed its conversion to a Real Estate Investment Trust (REIT) effective January 1, 2013, as part of our strategy to build long-term shareholder value. After our REIT conversion, we more than doubled our cash dividend paid to shareholders during the year, refinanced a significant portion of our debt on favorable terms, and created a more efficient financial and operating structure to pursue future growth opportunities. The combination of lower interest costs and corporate income taxes contributed to CCA reporting significant growth in net income and net income per share, as well as Funds From Operations (FFO) and FFO per share, in 2013 compared with the prior year. CCAs Real Estate is an Essential Core of Our Business Real estate is an essential core of our business, with the gross book value of land and buildings representing about 97% of our fixed assets, including over 14 million square feet in 52 owned /controlled facilities. During 2013, these facilities generated over 94% of our net operating income, or our operating income before general and administration expenses, depreciation and amortization and asset impairments. We operate the fifth largest corrections system in the United States, including public and private operators. CCA is the largest private owner and operator of correctional facilities in the nation, representing more than 40% of all private prison beds in the U.S. and nearly 60% of all owned and controlled private beds in the U.S. We currently have approximately 86,000 beds in 65 facilities located in 20 states and the District of Columbia. Our real estate portfolio has many positive attributes that set us apart from the typical REIT. Our revenue is primarily from government entities at the local, state and federal level that have investment grade credit ratings. Our contracts are typically for three to five years, have multiple long-term renewal options and staggered expiration dates. CCA enjoys over a 90% contract renewal rate on company-owned facilities. CCAs owned facilities provide enhanced marketing opportunities to grow future earnings. We had approximately 14,000 bought-and-paid-for available beds in inventory as we entered 2014, providing us with significant opportunities for earnings and cash flow growth. As governments continue to face the challenge of rising inmate populations and overcrowded conditions, we believe this inventory of available capacity positions us well to provide current and potential customers with immediate space given new prison construction by local, state and federal agencies has been very limited in recent years due to economic and political constraints. CCAs owned facilities have been a key driver in winning and retaining long-term contracts. Our just-in-time inventory represents capacity that can be quickly tapped to meet the needs of our partners. For example, CCA leased its 2,304-bed California City Correctional Center to the California Department of Corrections and Rehabilitation (CDCR) beginning December 1, 2013, providing the state an immediate solution to address its prison overcrowding. The initial lease with the CDCR is for three years and has unlimited two-year renewal options. By comparison, it could take the CDCR three to seven years to construct a facility of this size, not taking into account the difficulty in funding, permitting and staffing such a large prison. We believe our facilities provide a solid foundation for our future. They have a median age of 17 years and an estimated 75-year economic life. We compare very favorably to some public sector prisons that are over 100 years old. Replacing old public prisons provides our governmental partners with operational cost savings and improves safety and living conditions. Our new facilities are designed to improve security while reducing operating costs. We are also an industry leader in adopting technologies that conserve resources, such as computerized water controls that have reduced water usage by more than 50% at some facilities. One of our newest facilities, a 1,492-bed prison in Otay Mesa, California, will be one of the industrys first LEED certified (Leadership in Energy and Environmental Design) corrections facilities. It is due for completion in the second half of 2015, and highlights our approach to using progressive technology that increases the quality and value of the services we provide to our governmental partners. CCA Increases Cash Dividend CCAs conversion to a REIT resulted in reduced income tax expense in 2013 compared with prior years. A REIT has certain tax advantages compared with a traditional C Corporation. As a REIT, CCA generally is not subject to federal income taxes on its REIT taxable income and gains that are distributed to its shareholders as taxable dividends. CCA increased its total annual cash dividends by more than 200%, from $0.60 per share in 2012 to $1.97 per share in 2013, and further increased the regular quarterly dividend to $0.51 per share during the first quarter of 2014, or an annual rate of $2.04. Focus on the Future We are pleased to complete our first year as a REIT and to reward CCA shareholders with a significant increase in our cash dividend. We also remain excited about CCAs future as the leader in the private corrections industry. We believe we have significant opportunities to build shareholder value based on our just-in- time inventory of available beds, an improving economy that should ease some of the budget challenges governments have faced in funding corrections, and opportunities for strategic acquisitions of complementary businesses and publicly owned prisons.




The market share for the private corrections industry continues to grow, but still is relatively small representing about 10% of the overall market. This provides CCA with significant opportunities for growth as governments look for solutions to their corrections challenges. Key factors driving the need for solutions include facility overcrowding, aging public facilities, and reducing operating costs for our governmental partners, including long-term pension obligations. Almost half the states and the Federal Bureau of Prisons (BOP) have facilities that are operating at over 100% of rated capacity. The BOP operated at about 136% of stated capacity last year while Californias prisons were at approximately 145%. We believe the wide extent of overcrowded public facilities provides CCA with future opportunities to deploy our just-in-time inventory of beds in many of these market sectors. Aging public prisons are inefficient to operate and provide a lower quality of life for inmates compared with newer facilities. Approximately 95,000 of beds in operation throughout the United States prison systems were in prisons that were over 100 years old and about 200,000 beds were in prisons at least 75 years old. Some states have begun to close older facilities while not replacing them with new construction. We believe the economics of replacing these older facilities will provide increased demand for CCAs beds in the future. In 2013, we broadened the scope of services we are able to provide with the acquisition of Correctional Alternatives, Inc. (CAI), a private owner-operator of community corrections facilities in California that currently serves San Diego County and the BOP. CAI provides cost-effective solutions for housing and rehabilitation through programs that include work furloughs, residential reentry and home confinement. This complementary business enables us to expand the range of solutions we provide our government partners from incarceration through release and supports our goal of helping inmates transition successfully to society. It also builds on the wide range of rehabilitation and reentry opportunities we currently provide in our facilities, such as educational, vocational and faith-based programming. We are excited about the potential for this market and the opportunity to use existing facilities to expand in this market segment. We believe CCA has additional growth opportunities to expand our real estate portfolio by purchasing correctional and detention facilities from state governments. We offer a compelling value proposition to states by paying cash for the facility, providing ongoing operational cost savings, stemming the growth of long-term pension obligations and freeing up budget dollars for much needed funding for other state programs and services. We want to thank our team of more than 15,000 CCA professionals for their continued contributions in making CCA the leader in the partnership corrections industry. We also thank you, our shareholders, for your investment in CCA and look forward to reporting on our continued progress in 2014.




Corrections Corporation of America - Locations And Subsidiaries

Head Office

Corrections Corporation of America 10 Burton Hills Boulevard NASHVILLE 37215 United States Tel: +1 615 2633000 Fax: +1 615 2633140

Other Locations & Subsidiaries

Corrections Corporation of America, Subsidiaries

TransCor Puerto Rico, Inc.

Puerto Rico

United States

TransCor America, LLC TN United States

Technical and Business Institute of America, Inc. TN United States

CCA of Tennessee, LLC TN United States

CCA Health Services, LLC TN United States

CCA (UK) Ltd. United Kingdom

CCA Properties of Arizona, LLC United States

Prison Realty Management, Inc. TN United States





Section 2 Company Analysis Corrections Corporation of America - Business Description Corrections Corporation of America (CCA) is a US-based correctional and detention facilities operating company. The company is in the business of providing a comprehensive range of correctional and detention services through its own facilities. The company attained specialization in design, construction, expansion and management of prisons, jails and detention facilities. Its service portfolio comprises academic and vocational education, health services, inmate programs, facility maintenance, human resources, and management and administration. It also provides inmate transportation services through its subsidiary, TransCor America, LLC. The company offers these services to diverse clients such as the federal correction agencies (Federal Bureau of Prisons, U.S. Marshals Service and Immigration and Customs Enforcement), state government agencies and over a dozen local municipalities. The company also offers correctional facilities on lease to third-party operators. CCA operates its business through two reportable segments, namely, Owned and Managed Correctional and Detention Facilities segment, and Managed-only Correctional and Detention Facilities segment. Through the Owned and Managed Correctional and Detention Facilities segment, the company owns 53 correctional and detention facilities through which it provides a range of correction services to federal correctional and detention authorities such as Federal Bureau of Prisons, the United States Marshals Service, and the US Immigration and Customs Enforcement. The company offers services to the federal agencies through management service contracts with three to five year multiple renewal options. For the fiscal year ended 2013, through the Owned and Managed Correctional and Detention Facilities segment, the company reported revenue of US$1,386.4 million, indicating a decrease of 2.3% as compared to previous year. This segment accounted for 82.2% of the companys total revenue in Fy2013. Through the Managed-only Correctional and Detention Facilities segment, the company manages 13 correction and detention facilities through which it provides several rehabilitation and correction services. The services that the segment offers include rehabilitation and educational programs, which include basic education, religious services, life skills and employment training and substance abuse treatment intended to help prisoners prepare for their successful re-entry into the society upon release. It also provides health care, food services, and work and recreational programs. In FY2013, the Managed-only Correctional and Detention Facilities segment reported revenue of US$301.5 million, indicating an increase of 0.6% over previous years revenue. This segment accounted for 17.8% of the companys total revenue in 2013. The principal subsidiaries through which the company operates include CCA of Tennessee, LLC, Prison Realty Management, Inc., CCA Western Properties, Inc., Technical and Business Institute of America, Inc., TransCor America, LLC, CCA Properties of Arizona, LLC, CCA International, Inc., and CCA Health Services, LLC among others. Geographically, the company operates its business in the US through 66 correctional and detention facilities, which include 53 facilities owned by the company, with a capacity of around 86,000 beds spread across 20 provinces.




Corrections Corporation of America - Corporate Strategy The companys business focus is on providing prison bed capacity and quality corrections services. The companys key strategy is to maintain its leadership position by increasing occupancy and revenue and offering better services.




Corrections Corporation of America - SWOT Analysis

SWOT Analysis - Overview CCA is a correctional and detention facilities operating company. Broad customer base, comprehensive offerings are its advantages. Decline in occupancy level and dependence on government budgets are its major drawbacks. Going forward, the company's growth could be limited owing to factors such as highly competitive market, operational risk and government regulation. However, the growing correction industry, recent contracts and stable returns could provide growth opportunities to the company.

Corrections Corporation of America - Strengths

Strength - Broad Customer Base

The company has strong customer base, ensuring steady top-line performance. The company provides services under approximately 90 service arrangements and management contracts with all federal agencies, 15 state agencies, the District of Columbia and multiple local agencies that have investment grade credit ratings. The company provide services under management contracts with federal, state, and local agencies that generally have credit ratings of single-A or better. Its majority of contracts have terms between one and five years which contribute to its relatively predictable and stable revenue base. The company serves multiple customers including Federal correctional and detention authorities primarily consisting 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. Strong customer base ensures steady top-line performance for the company, besides providing a competitive edge for the company.

Strength - Comprehensive Offerings

CCA leverages its comprehensive portfolio of solutions related to correctional and detention for its revenue growth and fueling its profitability. The company is in the business of providing a comprehensive range of correctional and detention services through its own facilities. The company attained specialization in the design, construction, expansion and management of prisons, jails and detention facilities. Its service portfolio comprises academic and vocational education, health services, inmate programs, facility maintenance, human resources, and management and administration. Apart from above, the company provides inmate transportation services through its subsidiary, TransCor America, LLC. The comprehensive portfolio of solutions enables the company to become single point of contact for correctional and detention services. The company can leverage its portfolio to enhance its financial and operational position.




Corrections Corporation of America - Weaknesses

Weakness - Dependence on Government Budgets

CCA depends on government appropriations and its cash flow is subject to the receipt of sufficient funding of and timely payment by contracting governmental entities. If the governmental agency does not receive sufficient funds to cover its contractual obligations, it may terminate its contract or delay or reduce payment. If other major customers substantially delayed their cash payments, its liquidity would be materially affected. Further, federal, state and local governments are constantly under pressure to control additional spending or reduce current levels of spending. The country is hardly hit by one of the worst financial crisis in the history which adversely affected the financial prospects of the country in turn building a credit crunch on several of its operational departments. Any further deterioration in the financial position of the country and the major cuts in the spending could adversely affect the budgetary allocations to the states and will have a direct impact on CCAs operational performance.

Weakness - Decline in Occupancy Level

CCA is subject to fluctuations in occupancy levels. The declining occupancy level affects the cost structure and margin position of the company. The company witnessed a decline in occupancy levels in the last three years. In FY2013, FY2012, and FY2011 the average compensated occupancy for its facilities was 85%, 88%, and 90% respectively. The company is paid on a per diem basis and no minimum guaranteed occupancies are offered under most of its contracts, while it bears relative fixed costs for operating each facility. The company cannot control occupancy levels at its managed facilities as it depends on the governmental agencies with which it has contracts to provide inmates for managed facilities. The loss of such inmates and decline in occupancy rate would cause a decrease in revenues and profitability.




Corrections Corporation of America - Opportunities

Opportunity - Growing Correction Industry

The company being a provider of correctional and detention services to correctional market could foster growth in its operational revenues as the market has been growing rapidly. The increase in industry is driven by overcrowded public prisons, the market is large and is under-penetrated less than 10% of prison populations are in partnership beds. From 1990-2010, Partnership corrections beds have grown from approximately 11,000 beds to approximately 205,000 at a rate of 15.8% CAGR. According to anticipation of analysts prison populations will outpace new beds. The company could capitalize the market potential to increase its overall margin and profitability in near future.

Opportunity - Recent Contracts

The company's agreements and contracts with various companies enhance its revenue. These major contracts will provide opportunities for the company to enhance its expertise and knowledge base, fueling its profitability. In September 2014, CCA expanded its existing intergovernmental service agreement to manage the South Texas Family Residential Center in Dilley, Texas. Through the new agreement, the company is expected to house up to 2,400 individuals under a four-year agreement. In September 2013, the company has also received a contract from Arizona Department of Corrections to house up to 1,000 medium-security inmates at CCA's Red Rock Correctional Center in Arizona.

Opportunity - Strategic Initiatives

The company took up several strategic initiatives including expansion initiatives to enhance its operations. In September 2014, the company initiated a number of programs to enhance and expand reentry programming opportunities that reduce recidivism. In August 2013, the company acquired Correctional Alternatives, Inc., which is provider of cost-effective solutions for housing and rehabilitation through community corrections. The acquisition through its expertise within the community corrections market aligns well with CCAs existing business model and customer base. In May 2014 the company entered into an agreement with Trousdale County to build a 2,552-bed correctional facility to meet the responsibilities of a separate intergovernmental service agreement (IGSA) between Trousdale County and the State of Tennessee regarding correctional services.




Corrections Corporation of America - Threats

Threat - Government Regulation

The companys services are subjected to extensive federal, state and local regulations. The company is Moreover, the Federal Communications Commission, or the FCC, has published for comment a petition for rulemaking, filed on behalf of an inmate family, which would prevent private prison managers from collecting commissions from the operations of inmate telephone systems. Any non-compliance with the requirements of the regulatory bodies may result in paying exorbitant fines in the form of taxes, unexpected compliance expenditures, seizures, non-renewal or termination of its contracts to manage correctional and detention facilities and other legal proceedings. Furthermore, failure to maintain, renew or obtain necessary permits and licenses can have an adverse effect on the company's business operations and profitability in the future.

Threat - Highly Competitive Market

The correctional and detention industry in which the company operates is characterized by high competition. The company competes with government entities and other private operators on the basis of cost, availability of bed, quality, and range of services, experience in managing facilities and its reputation. The list of strong competitors includes Avalon Correctional Services, Inc., Management and Training Corporation, Cornell Companies, Inc., The GEO Group, Inc., Louisiana Corrections Services, Inc. and others apart from federal government and states government. Since many of its competitors have a longer operating history, established customer and greater financial resources, it could become difficult for the company to compete with them.

Threat - Operational Risk

CCA is subject to escapes, inmate disturbances, and public resistance to privatization of correctional and detention facilities which could hamper its reputation and could result in inability to obtain new contracts or the loss of existing contracts. Neither governments nor the public have completely accepted the operation of correctional and detention facilities by private entities. Labor unions and others have already showed up resistance toward privatization of correctional and detention facilities as they believe that correctional and detention facilities should only be operated by governmental agencies. Any of the above mentioned incidents or occurrences of them could make it more difficult for the company to renew or maintain existing contracts or to obtain new contracts, which could have a material adverse effect on CCAs business. NOTE: * Sector average represents top companies within the specified sector The above strategic analysis is based on in-house research and reflects the publishers opinion only




Corrections Corporation of America - Key Competitors

Corrections Corporation of America, Key Competitors

Name Headquarters Revenue (US$ m)

Avalon Correctional Services, Inc. United States 26

Cornell Companies, Inc. United States

Louisiana Corrections Services, Inc.

Management and Training Corporation United States

The GEO Group, Inc. United States 1,522 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData




Section 3 Company Financial Ratios Financial Ratios - Capital Market Ratios Corrections Corporation of America, Ratios based on current share price

Key Ratios 02-Dec-2014

P/E (Price/Earnings) Ratio 13.44

EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 19.40

Enterprise Value/Sales 3.23

Enterprise Value/Operating Profit 25.52

Enterprise Value/Total Assets 1.82

Dividend Yield 0.05 Note: Above ratios are based on share price as of 02-Dec-2014, the above ratios are absolute numbers





Financial Ratios - Annual Ratios

Corrections Corporation of America, Annual Ratios

Key Ratios Unit/Currency 2009 2010 2011 2012 2013

Equity Ratios

EPS (Earnings per Share) USD 1.29 1.40 1.54 1.56 2.74

Dividend per Share USD 0.60 1.97

Dividend Cover Absolute 2.60 1.39

Book Value per Share USD 12.44 13.40 14.15 15.20 12.96

Cash Value per Share USD 0.40 0.23 0.56 0.63 0.67

Profitability Ratios

Gross Margin % 30.56 30.79 31.41 29.39 27.97

Operating Margin % 18.80 19.50 19.64 17.55 12.67

Net Profit Margin % 9.59 9.45 9.62 9.09 17.76

Profit Markup % 44.02 44.49 45.80 41.63 38.84

PBT Margin (Profit Before Tax) % 14.31 15.22 15.31 14.18 10.01

Return on Equity % 10.74 10.69 11.54 10.30 20.02

Return on Capital Employed % 11.21 11.68 11.76 10.77 7.80

Return on Assets % 5.33 5.27 5.38 5.27 10

Return on Fixed Assets % 11.78 12.45 12.47 11.53 8.08

Return on Working Capital % 232.61 188.07 205.96 164.15 218.27

Growth Ratios

Sales Growth % 5.74 2.90 1.53 2.06 -1.70

Operating Income Growth % 3.53 6.69 2.30 -8.81 -29.05

EBITDA Growth % 2.35 7.79 2.59 -2.33 -21.05

Net Income Growth % 2.66 1.44 3.38 -3.54 91.91

EPS Growth % 13.50 6.66 9.73 2.29 90

Working Capital Growth % -10.79 31.96 -6.59 14.41 -46.64

Cost Ratios

Operating Costs (% of Sales) % 81.20 80.50 80.36 82.45 87.33

Administration Costs (% of Sales) % 5.35 5.06 5.40 5.16 6.11

Liquidity Ratios

Current Ratio Absolute 1.67 1.84 1.81 2.11 1.39

Quick Ratio Absolute 1.67 1.84 1.81 2.11 1.39

Cash Ratio Absolute 0.24 0.12 0.28 0.38 0.31

Leverage Ratios

Debt to Equity Ratio % 0.80 0.79 0.88 0.73 0.80

Net Debt to Equity Absolute 0.76 0.77 0.84 0.69 0.75

Debt to Capital Ratio % 0.42 0.42 0.44 0.40 0.44

Efficiency Ratios

Asset Turnover Absolute 0.56 0.56 0.56 0.58 0.56

Fixed Asset Turnover Absolute 0.64 0.65 0.65 0.67 0.67

Current Asset Turnover Absolute 4.97 4.40 4.70 4.91 4.80

Capital Employed Turnover Absolute 1.12 1.13 1.20 1.13 1.13

Working Capital Turnover Absolute 12.37 9.65 10.49 9.35 17.23




Revenue per Employee USD 110,019

Net Income per Employee USD 19,535

Capex to Sales % 8.84 8.64 10.30 4.61 4.52 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData




Performance Chart

Corrections Corporation of America, Performance Chart (2009 - 2013)


Financial Performance The company reported revenues of (US Dollars) US$1,694.3 million for the fiscal year ended December 2013 (FY2013), a decrease of 1.7% over FY2012. In FY2013, the companys operating margin was 12.7%, compared to an operating margin of 17.6% in FY2012. In FY2013, the company recorded a net margin of 17.8%, compared to a net margin of 9.1% in FY2012. The company reported revenues of US$408.5 million for the third quarter ended September 2014, a decrease of 0.5% over the previous quarter.




Financial Ratios - Interim Ratios

Corrections Corporation of America, Interim Ratios

Key Ratios Unit/Currency Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014

Interim EPS (Earnings per Share) USD 0.45 0.41 0.44 0.48 0.49

Dividend per Share USD 0.48 0.48 0.51 0.51 0.51

Book Value per Share USD 13.01 12.96 12.88 12.88 12.90

Gross Margin % 28.47 26.55 28.91 29.97 30.79

Operating Margin % 15.96 12.99 15.60 15.96 17.10

Net Profit Margin % 12.30 11.01 12.80 13.57 14.09

Profit Markup % 39.79 36.15 40.66 42.80 44.48

PBIT Margin (Profit Before Interest & Tax)

% 20.02 18.68 18.43 15.62

PBT Margin (Profit Before Tax) % 13.54 10.61 13.14 14.07 14.60

Operating Costs (% of Sales) % 84.04 87.01 84.40 84.04 82.90

Administration Costs (% of Sales) % 5.59 5.43 6.28 6.47 6.77

Interest Costs (% of Sales) % 4.24 4.29 4.12 3.88

Current Ratio Absolute 1.40 1.39 1.39 1.38 1.54

Quick Ratio Absolute 1.40 1.39 1.39 1.38 1.54

Debt to Equity Ratio % 0.79 0.80 0.80 0.80 0.83

Net Debt to Equity Absolute 0.74 0.75 0.76 0.77 0.79

Debt to Capital Ratio % 0.43 0.44 0.44 0.44 0.43

Interest Coverage Ratio Absolute 472.02 435.53 447.19 402.55 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData




Financial Ratios - Ratio Charts

Corrections Corporation of America, Ratio Charts

EPS Operating Margin

Return on Equity Return on Assets

Debt to Equity Ratio Current Ratio





Corrections Corporation of America, Recent Deals Summary

Corrections Corporation of America, Recent Deals Summary

Deal Date Deal Status Deal Type Acquirer (s) / Investor (s)

/Surviving Entity

Target / Issuer / Partner (s)

Vendor Deal Value (US $ million)

03-Jun-2009 Completed Debt Offering Corrections Corporation of America

465.00

Note: Deals include recent 10 deals in the past 24 months. Above data is extracted from GlobalDatas Deals and Alliances Profile.

GlobalData




Section 4 Appendix The data and analysis within this report is driven by GlobalData. GlobalData gives you key information to drive sales, investment and deal making activity in your business. Our coverage includes 200,000 + reports on 185,000+ companies (including 150,000+ private) across 200+ countries and 29 industries. The key industries include Alternative Energy, Oil & Gas, Clean Technology, Technology and Telecommunication, Pharmaceutical and Healthcare, Power, Financial Services, Chemical and Metal & Mining.

Methodology

GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of data. The key sources used include: Company Websites Company Annual Reports SEC Filings Press Releases Proprietary Databases Currency Codes

Currency Code Currency

USD U.S. Dollars GlobalData

Ratio Definitions

Capital Market Ratios

Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.

Price/Earnings Ratio (P/E)

Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report. Calculation: Price per Share / Earnings per Share

Enterprise Value/Earnings before Interest, Tax, Depreciation & Amortization (EV/EBITDA)

Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Amortization)

Enterprise Value/Sales

Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales

Enterprise Value/Operating Profit

Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating




Income Enterprise Value/Total Assets

Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets

Dividend Yield

Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Calculation: Annual Dividend per Share / Price per Share

GlobalData

Equity Ratios

These ratios are based on per share value.

Earnings per Share (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. Calculation: Net Income / Weighted Average Shares

Dividend per Share

Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Dividend Cover

Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders. Calculation: Earnings per share / Dividend per share

Book Value per Share

Book Value per Share measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares

Cash Value per Share

Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding. Calculation: Cash & equivalents / Outstanding Shares

GlobalData

Profitability Ratios

Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.

Gross Margin

Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs. Calculation: {(Revenue-Cost of revenue) / Revenue}*100

Operating Margin

Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency. Calculation: (Operating Income / Revenues) *100

Net Profit Margin

Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits. Calculation: (Net Profit / Revenues) *100

Profit Markup

Profit Markup measures the company's gross profitability, as compared to the cost of revenue. Calculation: Gross Income / Cost of Revenue

PBIT Margin (Profit Before Interest & Tax)

Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation. Calculation: {(Net Profit+Interest+Tax) / Revenue} *100

PBT Margin (Profit Profit Before Tax Margin measures the pre-tax income over revenues.




Before Tax)

Calculation: {Income Before Tax / Revenues} *100

Return on Equity Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. Calculation: (Net Income / Shareholders Equity)*100

Return on Capital Employed

Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. Calculation: EBIT / (Total Assets Current Liabilities)*100

Return on Assets

Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at using its assets to generate earnings. Calculation: (Net Income / Total Assets)*100

Return on Fixed Assets

Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant & equipment). Calculation: (Net Income / Fixed Assets) *100

Return on Working Capital

Return on Working Capital measures the company's profitability to its working capital. Calculation: (Net Income / Working Capital) *100

GlobalData

Cost Ratios

Cost ratios help to understand the costs the company is incurring as a percentage of sales.

Operating costs (% of Sales)

Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues. Calculation: (Operating Expenses / Revenues) *100

Administration costs (% of Sales)

Administration costs as percentage of total revenue measures the selling, general and administrative expenses that a company incurs compared to the revenues. Calculation: (Administrative Expenses / Revenues) *100

Interest costs (% of Sales)

Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues. Calculation: (Interest Expenses / Revenues) *100

GlobalData

Liquidity Ratios

Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.

Current Ratio

Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Calculation: Current Assets / Current Liabilities

Quick Ratio

Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Calculation: (Current Assets - Inventories) / Current Liabilities

Cash Ratio Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only




looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities. Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

GlobalData

Leverage Ratios

Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.

Debt to Equity Ratio

Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries tend to have a higher debt-equity ratio. Calculation: Total Liabilities / Shareholders Equity

Debt to Capital Ratio

Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. Calculation: {Total Debt / (Total assets - Current Liabilities)}

Interest Coverage Ratio

Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense. Calculation: EBIT / Interest Expense

GlobalData

Efficiency Ratios

Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources.

Fixed Asset Turnover

Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets. Calculation: Net Sales / Fixed Assets

Asset Turnover

Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues. Calculation: Net Sales / Total Assets

Current Asset Turnover

Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales. Calculation: Net Sales / Current Assets

Inventory Turnover

Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. Calculation: Cost of Goods Sold / Inventory

Working Capital Turnover

Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales. Calculation: Net Sales / Working Capital




Capital Employed Turnover

Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to the company. Calculation: Net Sales / Shareholders Equity

Capex to sales

Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated. Calculation: (Capital Expenditure / Sales) *100

Net income per Employee

Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity. Calculation: Net Income / No. of Employees

Revenue per Employee

Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee. Calculation: Revenue / No. of Employees

Efficiency Ratio

Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders. Calculation: Non-interest expense / Total Interest Income

GlobalData

Notes Financial information of the company is taken from the most recently published annual reports or SEC filings The financial and operational data reported for the company is as per the industry defined standards Revenue converted to USD at average annual conversion rate as of fiscal year end

About GlobalData

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Disclaimer

All Rights Reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, GlobalData. The data and analysis within this report is driven by GlobalData from its own primary and secondary research of public and proprietary sources and does not necessarily represent the views of the company profiled. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that GlobalData delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such GlobalData can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Table of ContentsList of TablesList of Figures

Section 1 - About the CompanyCorrections Corporation of America - Key FactsCorrections Corporation of America - Key EmployeesCorrections Corporation of America - Key Employee BiographiesCorrections Corporation of America - Major Products and ServicesCorrections Corporation of America - HistoryCorrections Corporation of America - Company StatementCorrections Corporation of America - Locations And SubsidiariesHead OfficeOther Locations & Subsidiaries

Section 2 Company AnalysisCorrections Corporation of America - Business DescriptionCorrections Corporation of America - Corporate StrategyCorrections Corporation of America - SWOT AnalysisSWOT Analysis - OverviewCorrections Corporation of America - StrengthsStrength - Broad Customer BaseStrength - Comprehensive Offerings

Corrections Corporation of America - WeaknessesWeakness - Dependence on Government BudgetsWeakness - Decline in Occupancy Level

Corrections Corporation of America - OpportunitiesOpportunity - Growing Correction IndustryOpportunity - Recent ContractsOpportunity - Strategic Initiatives

Corrections Corporation of America - ThreatsThreat - Government RegulationThreat - Highly Competitive MarketThreat - Operational Risk

Corrections Corporation of America - Key CompetitorsSection 3 Company Financial RatiosFinancial Ratios - Capital Market RatiosFinancial Ratios - Annual RatiosPerformance ChartFinancial PerformanceFinancial Ratios - Interim RatiosFinancial Ratios - Ratio ChartsCorrection

2014-12-05 cxw.n (globaldata) corrections corporation of america (cxw) - financi...sis review

Documents

company website

annual report

gdbcs28560fsa source

secondary research

detention services

eps usd

alvarado director source

competitive market source