Corrections Corporation of America (NYSE:CXW) Q4 2015 Earnings Conference Call - Final Transcript

Feb 11, 2016 • 11:00 am ET

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Corrections Corporation of America (NYSE:CXW) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Lauren and I will be your conference operator. As a reminder, this call is being recorded. At this time, I'd like to welcome you to Corrections Corporation of America's Fourth Quarter and Full Year 2015 Financial Results Conference Call. All lines have been placed on mute to avoid any background noise. After the speaker's remarks, there will be a question and answer session. [Operator Instructions] Thank you.

I would now like to turn the call over to Cameron Hopewell, CCA's Managing Director of Investor Relations. Mr. Hopewell, you may begin your conference.

Executive
Cameron Hopewell

Thanks, Lauren. Good morning ladies and gentlemen and thank you for joining us. Participating on today's call are Damon Hininger, President and Chief Executive Officer, and David Garfinkle, Chief Financial Officer.

During today's call, our remarks will include forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities and Litigation Reform Act. Our actual results or trends may differ materially as a result of a variety of factors, including those identified in our fourth quarter 2015 earnings release and in our Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports. You are also cautioned that any forward-looking statements reflect management's current views only and that the Company undertakes no obligation to revise or update such statements in the future.

This call will include a discussion of non-GAAP measures. A reconciliation of the most comparable GAAP measurements is provided in our corresponding earnings release and included in the supplemental financial data on the Investors page of our website at www.cca.com.

With that, it's my pleasure to turn the call over to Damon Hininger.

Executive
Damon Hininger

Thank you, Cameron and good morning, to everyone and thank you for joining our call today. In addition to Dave and Cameron joining us we also have Brian Hammonds, who is our VP of Finance; and John Ferguson, who is our Chairman of the Board.

I will touch on some key highlights which drove our fourth quarter 2015 financial performance and provide an update on development in our business since our last call in November. Following my remarks, Dave will provide an in-depth review of our financial performance in the quarter and will lay out the details of our financial guidance for 2016, which was disclosed in our earnings release last evening.

In the fourth quarter we generated revenue of $448 million representing a 5.8% increase from the prior year period and normalized funds from operations of $0.63 per share, $0.03 above the high end of the fourth quarter guidance we provided in November. Dave will provide a full overview of these metrics and the primary drivers of our financial performance at the conclusion of my remarks.

Next, I'll provide an update on our recent facility construction projects before moving on to new contracts and updates on our acquisition of Avalon Correctional Services in October 2015. We discussed on our third quarter call that the full transition of operations from the San Diego Correctional Facility to