WACKENHUT REVENUES RISE 16%, BUT EARNINGS PER SHARE FALL
PALM BEACH GARDENS, Fla.
The Wackenhut Corp. reports annual revenues for fiscal year 2000 of $2.5 billion, a 16-percent increase compared to its 1999 revenues of $2.2 billion. The company also reports 2000 net income of $16.8 million or $1.10 per share on a diluted basis, after the fourth-quarter 2000 adoption of SAB Number 101 – Revenue Recognition. The retroactive effect of the change in accounting principle decreased 2000 earnings by $800,000 after-tax, or 5 cents diluted earnings per share. Earnings were also adversely impacted by a charge due to the deactivation of the Louisiana correctional facility, which decreased 2000 earnings by $1.3 million after tax and minority interest or 9 cents diluted earnings per share. Net income in 1999 was $19.6 million or $1.28 per diluted share.
“I am pleased with the revenue growth of the corporation during the past year, particularly since all three of our major business units contributed to the expansion,” says Richard R. Wackenhut, vice chairman, president and CEO of Wackenhut. “It is important to note that the margins for our global security services improved compared to the prior year.” Wackenhut provides integrated business services to major corporations and government agencies. Its business lines include security-related services, such as physical security and alarms, and correctional services.
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