September 30, 2016 12:15 PM ET

Equity Real Estate Investment Trusts (REITs)

Company Overview of Corrections Corporation of America

Company Overview

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. It owns, operates, and manages prisons and other correctional facilities; and provides inmate residential and prisoner transportation services for governmental agencies. The company also offers various rehabilitation and educational programs, including basic education, religious services, life skills and employment training, and substance abuse treatment, as well as food services, work and recreational programs, and healthcare services, such as medical, dental, and mental health services. In addition, it leases its facilities to third-pa...

10 Burton Hills Boulevard

Nashville, TN 37215

United States

Founded in 1983

14,055 Employees

Phone:

615-263-3000

Fax:

615-263-3140

Key Executives for Corrections Corporation of America

Chief Executive Officer, President, Director and Member of Executive Committee
Age: 46
Total Annual Compensation: $882.8K
Chief Financial Officer and Executive Vice President
Age: 48
Total Annual Compensation: $387.3K
Chief Development Officer and Executive Vice President
Age: 46
Total Annual Compensation: $422.5K
Chief Corrections Officer and Executive Vice President
Age: 60
Total Annual Compensation: $422.5K
Compensation as of Fiscal Year 2015.

Corrections Corporation of America Key Developments

Corrections Corporation of America Announces Restructuring of the Company's Corporate Operations

Corrections Corporation of America announced a restructuring of the company's corporate operations and implementation of a cost reduction plan. The plan includes cutting 12% of the corporate workforce at headquarters, and the CEO volunteering to forfeit restricted stock units granted earlier in 2016.

Corrections Corporation of America to Eliminate 50 to 55 Full Time Positions

Corrections Corporation of America announced a restructuring of the company's corporate operations and implementation of a cost reduction plan. CCA expects that 50 to 55 full time positions will be eliminated as a result of the restructuring, or approximately 12% of the corporate workforce at its headquarters. The restructuring realigns the corporate structure to more effectively serve facility operations and support the progression of CCA's business diversification strategy. CCA expects to report a charge in the third quarter of 2016 of approximately $4.0 million associated with this restructuring. This charge primarily consists of cash payments for severance and related benefits to terminated employees and a non-cash charge associated with the voluntary forfeiture by CCA's chief executive officer of a restricted stock unit award, as further described hereafter. The impact of these staffing reductions, together with the implementation of the cost reduction plan, are expected to result in expense savings of approximately $9.0 million in 2017, most of which are general and administrative expenses. A substantial portion of these expense savings will commence in the fourth quarter of 2016.

Kessler Topaz Meltzer & Check, LLP Files Class Action Lawsuit against Corrections Corporation of America

Kessler Topaz Meltzer & Check, LLP announced that a shareholder class action lawsuit has been filed in the United States District Court for the Middle District of Tennessee against Corrections Corporation of America on behalf of purchasers of the company's securities between February 27, 2012 and August 17, 2016, inclusive. The complaint alleges that CCA and certain of its executive officers made a series of false and misleading statements and/or failed to disclose to investors during the Class Period that: CCA's facilities lacked adequate safety and security standards and were less efficient at offering correctional services than the Federal Bureau of Prisons' (BOP) facilities; CCA's rehabilitative services for inmates were less effective than those provided by BOP; consequently, the U.S. Department of Justice (DOJ) was unlikely to renew and/or extend its contracts with CCA; and as a result of the foregoing, CCA's public statements were materially false and misleading at all relevant times. As detailed in the complaint, on August 18, 2016, Deputy Attorney General Sally Yates announced the DOJ's decision to end its use of private prisons, including those operated by CCA, after officials concluded that the facilities are both less safe and less effective at providing correctional services than those run by the federal government.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
June 14, 2016
Residential Reentry Facility in Long Beach, California
Merger/Acquisition
April 11, 2016
Correctional Management, Inc. And Real Estate Used in its Operation
Merger/Acquisition
October 29, 2015
Avalon Correctional Services, Inc. and Two Facilities Operated by Avalon
 

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