SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
June 4, 2001
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Avalon Correctional Services, Inc.
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(Exact name of Registrant as specified in its Charter)
Nevada 0-20307 13-3592263
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(State or other jurisdiction (Commiss (IRS Employer
of incorporation) Identification No.)
13401 Railway Drive
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(Address of principal executive offices) (Zip Code)
405-752-8802
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(Registrant's telephone number, including area code)
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS
Avalon Correctional Services, Inc., is issuing a press release to discuss the
financial outlook of Avalon Correctional Services, Inc., for fiscal 2001.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) The following is filed as an Exhibit to this report:
Exhibit No. Description of Exhibit
99.1 Press Release
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AVALON CORRECTIONAL SERVICES, INC.
s// Donald E. Smith
DONALD E. SMITH
Chairman of the Board and
Chief Executive Officer
Dated: June 4, 2001
Exhibit 99.1
Avalon
Correctional Services, Inc. News Release
13401 Railway Drive
Oklahoma City, Oklahoma 73114
Phone 405-752-8802 or 1-800-919-9113
Fax 405-752-8852
Email: t_smith@avaloncorrections.net
Contact: Tiffany Smith, Vice President Corporate Communications
Avalon Correctional Services, Inc.
Provides Financial Outlook for Fiscal 2001
OKLAHOMA CITY, Oklahoma, June 4, 2001-Avalon Correctional Services, Inc.
(NASDAQ: CITY), a leading owner and operator of community correctional
facilities and alternative correctional programs, today provided a financial
outlook for the second, third, and fourth quarters of fiscal 2001.
Net revenue for the second quarter ending June 30, 2001 is expected to be
approximately $5.96 million compared to $5.4 million for the second quarter of
2000. Net revenue for the third quarter ending September 30, 2001 is expected to
be approximately $6.2 million compared to $6.0 million for the third quarter of
2000. Net revenue for the fourth quarter ending December 31, 2001 is expected to
be approximately $6.9 million compared to $6.17 million for the fourth quarter
of 2000. Net revenue for the twelve months ending December 31, 2001 is expected
to be $25.1 million compared to $22.9 million for the twelve months ended
December 31, 2000.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for
the second quarter ending June 30, 2001 is expected to be approximately $1.5
million compared to $1.4 million for the second quarter of 2000. EBITDA for the
third quarter ending September 30, 2001 is expected to be approximately $1.59
million compared to $1.57 million for the third quarter of 2000. EBITDA for the
fourth quarter ending December 31, 2001 is expected to be approximately $1.69
million compared to $1.58 million for the fourth quarter of 2000. EBITDA for the
twelve months ending December 31, 2001 is expected to be $6.25 million compared
to $5.9 million for the twelve months ended December 31, 2000.
Income Before Taxes for the second quarter ending June 30, 2001 is expected to
be approximately $290,000 compared to $229,000 for the second quarter of 2000.
Income Before Taxes for the third quarter ending September 30, 2001 is expected
to be approximately $390,000 compared to $255,000 for the third quarter of 2000.
Income Before Taxes for the fourth quarter ending December 31, 2001 is expected
to be approximately $429,000 compared to $264,000 for the fourth quarter of
2000. Income Before Taxes for the twelve months ending December 31, 2001 is
expected to be $1.3 million compared to $963,000 for the twelve months ended
December 31, 2000.
"The recent expansion of our management team has resulted in increased
utilization of our existing facilities. We continue developing programs for
organic growth and expansion of alternative correctional services to enhance
existing services while requiring minimal capital expenditures," said Donald E.
Smith, Chairman and Chief Executive Officer. "We recently announced the opening
of the Riverside Intermediate Sanction Unit, ("Riverside ISU") a new 360 bed
facility scheduled to open in the last half of 2001 in Tulsa, Oklahoma. The
Riverside ISU will increase the Company's total bed capacity by approximately
20% and have a significant impact on operating results."
Avalon Correctional Services, Inc. is a leading developer and manager of
privatized community correctional facilities and alternative correctional
programming in the United States. Avalon currently has a total offender capacity
of 2,060 beds in Oklahoma, Colorado and Texas, in addition to providing
alternative programming for approximately 1,000 offenders. For more information
about Avalon contact our web site at www.avaloncorrections.com or call
1-800-919-9113
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995
These statements are based on current expectations. These statements are
forward-looking, and actual results may differ materially. Certain statements in
this release constitute forward-looking statements or statements which may be
deemed or construed to be forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The words "forecast,"
"estimate," "project," "intend," "expect," "should," "would," and similar
expressions and all statements which are not historical facts are intended to
identify forward-looking statements. These forward-looking statements involve
and are subject to known and unknown risks, uncertainties and other factors
which could cause the Company's actual results, performance (financial or
operating) or achievements to differ from the future results, performance
(financial or operating) or achievements expressed or implied by such
forward-looking statements. For a more detailed description of the factors that
could cause such a difference, please see Avalon's filings with the Securities
and Exchange Commission including its Annual Report on Form 10-K. Avalon
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.