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Corrections Corporation of America Message Board

  • flipper_58 flipper_58 Mar 27, 2002 3:53 PM Flag

    Do the Feds need beds?

    ""Of those operating at 100% or more of their highest capacity, the federal prison system was the most overcrowded at 31% above capacity""

    This over-capacity in the private side will disappear. Even if our overall population grows 1-2% that means a huge amount of new beds needed each year. It's only logical.

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    • Texaco Star Theater's Franz Liszt (1811-1886) "connection."

      The General happened to be listening to Liszt's 2nd Hungarian Rhapsody while driving back to his command post at Burpelson AFB last night and he couldn't help but recall some of the lyrics to the opener of the Texaco Star Theater, a portion of which were sung (by a quartet of men dressed in Texaco service station attendant uniforms) to the melody taken from the finale to Liszt's 2nd Hungarian.

      Considering the fact that the General frequently can't recall where he'd left his glasses, keys, pen, etc., that just moments before he'd had in his possession, recalling a lyric heard (admittedly, repeatedly) more than a half century ago still seems remarkable to him.

      There are some gaps in the General's recollection of that entire lyric, so if any "seniors" can fill in the missing parts from their memory (relying on a video of the show is cheating), please do.

      The intro, which had nothing to do with Liszt's melody began with:

      We're the men of Texaco.
      We work from Maine to Mexico.
      There's nothing like this Texaco of ours.

      [Then the (unrecalled) lyrics of the intro continued for several more lines until Liszt's melody comes in to accompany the concluding lyrics, to wit:]

      We -- -- --,
      we wipe the glass,
      we scrub the hubs,
      we pump the gas.

      So join the ranks of those who know and fill your tank with Texaco.

      Skychief, fill up with Skychief and you will smile at the pile of new miles you will add.

      Firechief, fill up with Firechief.
      You'll find that Texaco's the finest friend your car has ever had.

      This was then followed by the quartet speaking, in unison, Berle's introduction.

      So ya see, even Mrs. MK and doclazlo's heritage had a part to play in Uncle Miltie's success. :-)

      A Joyous Easter and a Happy Passover to each's celebrants.

    • General - I join you in your appreciation of Milton Berle. I, too, enjoyed many years of smiles and chuckles and outright guffaws watching him on TV. I can totally agree with one comment I read in the news that "television didn't make Milton Berle, Milton Berle 'made' television!"
      Thanks for the link to the TV Guide article.
      Uncle Miltie - thanks for the memories - RIP!

    • But in what classification are they overcrowded? If it's the medium/high medium/max level, then they won't turn to the privates for help, since it is the BOP's stated policy that the privates can only handle low and minimum-security prisoners.

      Now that's ludicrous, of course - the privates can handle medium to max prisoners as well as the BOP can, IMO. But the feds point to Youngstown as an example of why they won't trust the privates with any prisoners stronger than low/minimum - leaving out many salient facts that would have caused problems for any entity, public or private, who held those prisoners.

      I'm not as optimistic as you are, Flipper, that the feds will have to turn to the privates to relieve overcrowding - they don't want to, and they can find a way around it. And even though we have a Republican in the White House, I don't see anyone up in Washington who's big enough to make them.

      So the industry's problem of opening new markets for its services is still a huge and looming issue for them.

      • 2 Replies to princessalouie
      • That does not wash. Leavenworth is medium/max and Cxw has done just fine. They house med/max inmates in numerous contracts. Classification is what ever you want it to be. Northeast Ohio is a dead horse. Cxw and the feds learned from that now it is time to move on. I respectfully disagree with you on this one.

      • princessalouie, The quote was from CXW's 10-K. And your right I've read of some the Feds dilemma. The privates don't need much to have a big impact with them though.

        ccastaff....I meant no disrepect of your good technical call on the common, just a bad joke.

        To others. I have been reading thru the 10-K trying to find any boogie men in there to connect the recent decline. Here's a few issues I see. In the 10-K management talks clearly of trying to get their credit facility revamped in the first 6 months of 2002. Getting Youngstown sold and CAR II awards would impact that certainly. I guess no news is being taking as bad news. Management ALSO states getting the credit facility refinanced is NOT totally dependent on those two events happening.

        Here's my take which I feel might be somewhat overlooked. While growth in beds is important IMO it's secondary to what happens to the credit facility. What I feel some investors fail to realize is that PZN folded, IMO, because they had no reserves to draw on during their over-expansion. All past profits and present profits had to be paid out in dividends to shareholders to be a REIT. If PZN had been able to retain the hundreds of millions it paid out we all would be in a different situation I strongly feel. But that's water over the dam. The profit margins per man-day still remain high relative to the general cost of financing out there, but the problem is CXW is paying 6.5 points higher then many other companies. Not small change. All these items such as Youngstown and CAR II will speed up their recovery, not kill it. This company is on the mend and it will happen I feel. Fear from their customers will fade and new orders will look different in a few years. With their new C corp. structure they will be able to retain a cushion while the recovery happens. Asset sales WILL happen sooner or later because the demand is there, it's just finding the right fit.
        I own a lot of the preferreds but I feel the common is getting into a very good buy territory on a fundamental level. Ccastaff I'll let you ring the bell on the exact bottom.

    • The State of Illinois built a prison in Thomson, Il and does not have the money to staff it. Supposedly the State is considering selling it to INS. Hopefully they are looking at some of CCA's prisons. Wouldn't have thought we would have competition from other states for the fed's business.

 
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