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<SEC-DOCUMENT>0000912057-02-036183.txt : 20020919
<SEC-HEADER>0000912057-02-036183.hdr.sgml : 20020919
<ACCEPTANCE-DATETIME>20020919150946
ACCESSION NUMBER:		0000912057-02-036183
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20020918
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20020919

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORNELL COMPANIES INC
		CENTRAL INDEX KEY:			0001016152
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-FACILITIES SUPPORT MANAGEMENT SERVICES [8744]
		IRS NUMBER:				760433642
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14472
		FILM NUMBER:		02767735

	BUSINESS ADDRESS:	
		STREET 1:		1700 WEST LOOP SOUTH
		STREET 2:		STE 1500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027
		BUSINESS PHONE:		7136230790

	MAIL ADDRESS:	
		STREET 1:		1700 WEST LOOP SOUTH
		STREET 2:		STE 1500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNELL CORRECTIONS INC
		DATE OF NAME CHANGE:	19960604
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
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<FILENAME>a2089755z8-k.htm
<DESCRIPTION>8-K
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<P ALIGN="CENTER"><FONT SIZE=5><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 8-K  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>CURRENT REPORT<BR>  </B></FONT><FONT SIZE=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Date
of Report (Date of earliest event reported): September&nbsp;18, 2002 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>CORNELL COMPANIES, INC.<BR>  </B></FONT><FONT SIZE=2>Exact Name of Registrant as Specified in its Charter </FONT></P>

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<TD WIDTH="31%" ALIGN="CENTER"><FONT SIZE=2><B>DELAWARE<BR> </B></FONT><FONT SIZE=2>State of Incorporation<BR>
or Organization</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2><B>1-14472<BR> </B></FONT><FONT SIZE=2>Commission<BR>
File Number</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="CENTER"><FONT SIZE=2><B>76-0433642<BR> </B></FONT><FONT SIZE=2>I.R.S.&nbsp;Employer<BR>
Identification&nbsp;No.</FONT></TD>
</TR>
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<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>1700 WEST LOOP SOUTH, SUITE 1500<BR>
HOUSTON, TEXAS</B></FONT><FONT SIZE=2><BR>
Address of Principal Executive Offices</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>77027</B></FONT><FONT SIZE=2><BR>
(Zip Code)</FONT></TD>
</TR>
</TABLE></DIV>
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<P ALIGN="CENTER"><FONT SIZE=2><B>(713) 623-0790<BR>  </B></FONT><FONT SIZE=2>Registrant's telephone number,<BR>
including area code </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Page
1 of 4 Pages<BR>
The Exhibit Index Appears on Page 4 </FONT></P>

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<BR></FONT><FONT SIZE=2><B>INFORMATION TO BE INCLUDED IN REPORT    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>Item 5. Other Events.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September&nbsp;18, 2002, the Company issued a press release filed herewith as Exhibit&nbsp;99.1 announcing that it has named Thomas R. Jenkins Jr. as President. </FONT></P>


<P><FONT SIZE=2><B>Item 7. Financial Statements and Exhibits.  </B></FONT></P>

<P><FONT SIZE=2>(c)
Exhibits. The following exhibits are filed with this report: </FONT></P>

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<TD WIDTH="15%"><FONT SIZE=2>Exhibit 99.1</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2>Press Release dated September&nbsp;18, 2002.<BR></FONT>
</TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=2>Page
2 of 4 Pages<BR>
The Exhibit Index Appears on Page 4 </FONT></P>

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<BR></FONT><FONT SIZE=2><B>SIGNATURE    <BR>  </B></FONT></P>

<P><FONT SIZE=2>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 hereunto duly authorized. </FONT></P>

<P><FONT SIZE=2>Dated:
September&nbsp;19, 2002 </FONT></P>

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<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>CORNELL COMPANIES, INC.</FONT></TD>
</TR>
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<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JOHN L. HENDRIX</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> John L. Hendrix<BR></FONT> <FONT SIZE=2><I>Senior Vice President and Chief<BR>
Financial Officer<BR> </I></FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2>Page
3 of 4 Pages<BR>
The Exhibit Index Appears on Page 4 </FONT></P>

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<TD WIDTH="82%"><FONT SIZE=2>Description</FONT></TD>
</TR>
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<TD WIDTH="13%"><FONT SIZE=2><BR>
99.1</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="82%"><FONT SIZE=2><BR>
Press Release dated September&nbsp;18, 2002.</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2>Page
4 of 4 Pages<BR>
The Exhibit Index Appears on Page 4 </FONT></P>

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<FONT SIZE=2><A HREF="#toc_da1698_1">INFORMATION TO BE INCLUDED IN REPORT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1698_2">SIGNATURE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1698_3">EXHIBIT INDEX</A></FONT><BR>

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<TYPE>EX-99.1
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<DESCRIPTION>EXHIBIT 99.1
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit 99.1  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>[Cornell Companies Inc. Letterhead] </FONT></P>

<P><FONT SIZE=2>FOR
IMMEDIATE RELEASE </FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>For
additional Information Contact<BR>
John L. Hendrix -SVP and CFO&#151;713-623-0790<BR>
Paul Doucette&#151;713-335-9203 or<BR>
713-471-9859 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ma1698_cornell_companies_names__ma102200"> </A>
<A NAME="toc_ma1698_1"> </A>
<BR></FONT><FONT SIZE=2><B>CORNELL COMPANIES NAMES THOMAS R. JENKINS JR. PRESIDENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Houston,
TX (September&nbsp;18, 2002)&#151;Cornell Companies,&nbsp;Inc. </FONT><FONT SIZE=2><B>(NYSE: CRN)</B></FONT><FONT SIZE=2>, a leading provider of privatized adult and
juvenile correctional, treatment and educational services, named Thomas R. Jenkins Jr., (55), its new president. Jenkins, who has been serving as senior vice president and chief operating officer,
will also continue with those responsibilities. Steve Logan has resigned to pursue other business interests. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
making the announcement, Harry J. Phillips, Jr., executive chairman, said, "Steve Logan helped build Cornell Companies into a leader in the private corrections and treatment industry,
specializing in adult and juvenile justice, behavioral health and alternative education. For ten years, Steve has been instrumental in the company's development and we greatly appreciate his efforts
and accomplishments. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"During
the past five years at Cornell, Tom Jenkins has worked closely with the company's management team to achieve a remarkable record of success. Tom has helped lead Cornell's growth,
increasing the company's annual revenues from $70&nbsp;million in 1997 to an estimate of over $275&nbsp;million at the end of 2002 and substantially improving its profitability. When Tom became
chief operating officer in 1997, Cornell was a collection of acquisitions. Tom consolidated the operations and developed
both its people and systems to make Cornell what it is today&#151;highly efficient and well diversified, with an outstanding record of growth and profitability." </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phillips
added, "As a result, the Board's choice of Jenkins's as the new president was easy&#151;Tom Jenkins is a great leader and gets results&#151;he represents the best
of Cornell and has been a steadying influence throughout the company's development. Tom brings leadership, vision and focus to Cornell, and has a strong sense of values and ethics. He shares the
Board's commitment to combine outstanding program delivery, innovation and financial strength to increase Cornell's shareholder value. Under his leadership, Cornell's programs have consistently been
awarded the title of "Program of the Year' in Pennsylvania. Moreover, Cornell's record of American Correctional Association Accreditation and Accreditation by the Joint Commission on the Accreditation
of Healthcare Organizations is exemplary. Now, in becoming president, the Board is giving Tom a strong mandate to more fully develop Cornell's growth opportunities." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jenkins
commented, "Cornell has an outstanding leadership team in place. We have vast experience operating programs that meet the needs of our customers. Our corporate team, John Hendrix
and his outstanding group of managers, provide a steady hand on our fiscal future. Working together we have established a number of fundamental strengths&#151;operational excellence,
top-notch people and good financials&#151;- now it is time to capitalize on our potential. With Cornell's diversification, we are not dependent on federal and state prison programs
for our growth. In today's environment, the opportunity is in areas such as pre-release, jails, alternative education and juvenile justice, and we have the operating and financial
strengths to move ahead and effectively capture this growth. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"In
the near term, we anticipate continued growth through internal expansions and new programs in the pre-release, jail and juvenile justice arenas. We anticipate increased
demand for pre-release beds. These programs are highly profitable and we intend to increase our share of the existing pre-release market. We are aggressively pursuing
opportunities created by the Immigration and Naturalization Service's need for detention beds. Also, we are using our successful and profitable operating models in </FONT></P>

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<P><FONT SIZE=2>
the untapped jail and alternative education businesses to pursue a number of potential contracts. Of course, we are an industry leader in juvenile justice and we are working hard on several new
business opportunities that hold great potential." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jenkins
emphasized, "I intend to nurture good ideas, set the bar high, challenge our organization to excellence, be aggressive in our marketing and development initiatives, and unleash
the pent-up enthusiasm and energy that exist within our company. Cornell's growth has just begun." </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phillips
concluded, "Tom is an innovator with a proven track record of producing growth and increasing profitability. He's the right guy at the right time, and both the Board and the
entire management team are very pleased that he will lead Cornell's next phase of growth. He has a wide range of industry contacts and has maintained an excellent relationship with our customers,
including the Federal Bureau
of Prisons. His record over the past five years speaks for itself. Under his leadership, Cornell successfully: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>integrated
two acquisitions&#151;Allvest which established Cornell in the state of Alaska and Interventions which serves as our platform for growth in
the behavioral health market;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>initiated
its first stand-alone alternative school when the Harrisburg Academy began serving more than 500 troubled youth in September&nbsp;2001;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>privatized
the 140-bed Alexander Youth Services Center near Little Rock; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>opened
the Non-Residential Treatment Center and the Non-Residential Detention Center, Pennsylvania's sole source for this type of
treatment. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;He
developed and led numerous expansions, including: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>two
expansions at D-Ray James prison totaling 1000 beds;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>addition
of 738 beds at the Big Spring Correctional Center;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>doubling
the size of Cornell's Abraxas Center for Adolescent Females; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>addition
of a women's unit at the Leadership Develop Program. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to joining the company, Jenkins completed a career with the Commonwealth of Pennsylvania by serving as Director of the Bureau of County Children and Youth Programs for the Office
of Children, Youth and Families. Under his leadership, the Commonwealth opened the first diagnostic treatment center and the first maximum-security treatment facility in the state. He formed and led a
new state bureau to manage the state's juvenile justice programs and then managed a brand new, statewide bureau to manage the Pennsylvania child welfare system. Beginning in 1995, he served as vice
president and chief operating officer for the Abraxas Group, one of the largest and most successful not-for-profit juvenile justice providers in Pennsylvania. He took a
provider of quality service and provided the growth stimulus necessary to make it the strong and successful platform that Cornell acquired to serve as its entrance into the juvenile justice field. He
was named chief operating officer of Cornell
Companies in 1997 and senior vice president and COO in 1999. He holds a B.A., in Sociology, from St. Vincent College and a M.S.W., in Social Work from the University of Pittsburgh. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Logan
who currently serves as president of the Association of Private Correctional and Treatment Organizations (APCTO), the industry trade association, will be available to the company
to ensure a smooth transition to new leadership. The company will record a third-quarter expense charge of approximately $740,000, after tax, for personnel costs related to the vesting of Logan's
deferred compensation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cornell
Companies,&nbsp;Inc. is a leading private provider of corrections, treatment and educational services outsourced by federal, state and local governmental agencies. Cornell
provides a diversified portfolio of services for adults and juveniles, including incarceration and detention, transition from incarceration, drug and alcohol treatment programs, behavioral
rehabilitation and treatment, and grades 3-12 alternative education in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of public policy.
Cornell (http://www.cornellcompanies.com) has </FONT></P>

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<P><FONT SIZE=2>
contracts to operate 69 facilities with a total service capacity of 15,444. Cornell's facilities are located in 13 states and the District of Columbia. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current plans and
actual future activities and results of operations may be materially different from those set forth in the forward- looking statements. Important factors that could cause actual results to differ
include, among others, (i)&nbsp;risks associated with acquisitions and the integration thereof (including the ability to achieve administrative and operating cost savings and anticipated synergies),
(ii)&nbsp;the timing and costs of expansions of existing facilities, (iii)&nbsp;changes in governmental policy to eliminate or discourage the privatization of correctional, detention and
pre- release services in the United States, (iv)&nbsp;availability of debt and equity financing on terms that are favorable to the Company, (v)&nbsp;fluctuations in operating results
because of occupancy, competition (including competition from two competitors that are substantially larger than the Company), increases in cost of operations, fluctuations in interest rates and risks
of operations and (vi)&nbsp;significant charges to expense of deferred costs associated with financing and other projects in development if management determines that one or more of such projects is
unlikely to be successfully concluded. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>#
# # </FONT></P>

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<FONT SIZE=2><A HREF="#toc_ma1698_1">CORNELL COMPANIES NAMES THOMAS R. JENKINS JR. PRESIDENT</A></FONT><BR>
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