Corrections Corp. Of America 3Q Profit Jumps

NASHVILLE, Tenn. (AP) — Prison operator Corrections Corp. of America said its third-quarter profit jumped 19 percent as more prisoners were locked up in its California and Arizona facilities.

The company said it earned $45.3 million in the quarter that ended Sept. 30, or 39 cents per share. That was up from $37.9 million, or 30 cents per share, during the same period last year.

Not counting an unusual tax benefit, the company would have earned 33 cents per share — above the 31 cents per share average expected by analysts surveyed by Thomson Reuters.

Revenue rose about 6 percent to $426 million from $403.8 million a year earlier, also topping analysts' $422.8 million forecast. The revenue increase was driven by a 4.5 percent rise in its average daily inmate population, plus a 1.3 percent increase in revenue for each person locked up one day.

Management revenue from states rose nearly 7 percent to $224.9 million as the inmate population from California and Arizona rose, partially offset by a drop in the number of prisoners in Minnesota and Washington.