(RTTNews) -  Wednesday, prison operator Corrections Corp. of America (CXW: News ), reported a higher profit for the third quarter on increased revenues, hurt partially by higher expenses for the period. Looking ahead, the company tightened its earnings guidance for the fourth quarter and full year 2009.

Nashville, Tennessee- based Corrections Corp. reported third-quarter net income of $45.3 million or $0.39 per share, compared with $37.9 million or $0.30 per share in the same quarter last year.

The recently ended quarter saved $6.97 million related to tax expenses, compared to last year, excluding which, the company reported net income of $38.3 million or $0.33 per share for the quarter.

On average, nine analysts polled by Thomson Reuters expected the company to earn $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Income from continuing operations was $45.25 million, compared with $21.86 million, favored by $6 million higher income tax expenses in the year-ago period.

Total revenue for the quarter increased 5.5% to $426.0 million from $403.8 million in the comparable quarter, ahead of $422.78 million anticipated by Wall Street analysts for the quarter.

Revenues were led by a 4.5% increase in average daily inmate population and a 1.3% higher revenue per compensated man-day, from a year ago.
The top-line increase was fueled by higher management and other revenues at $425.56 million compared with $403.11 million last year. While management revenue from state customers increased 6.6% to $224.9 million, primarily from California and Arizona inmate populations, offset by those from Minnesota and Washington, management revenue from federal customers increased 4.9% to $166.4 million on new contracts with the Federal Bureau of Prisons.

Expenses for the third quarter were $346.67 million, compared to $329.36 million a year ago. Operating income was $79.34 million, an increase from $74.4 million last year.

Total portfolio occupancy decreased to 91.3% from 95.4% last year, on the addition of 8,000 new beds into service. The average number of available beds increased 9.2% to 86,632.

For the nine-month period, the company's net income increased marginally to $112.46 million or $0.97 per share from $110.42 million or $0.89 per share last year. Adjusted net income was $107.86 million or $0.92 per share for the July-September period. Revenues for the nine-month period increased to $1.24 billion from $1.17 billion reported in the same period one year ago.

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