I just picked up more shares - hope this is as low as it goes. I can't believe no one has read the corrected release. It would have been nice if the numbers had been higher, but they met expectations and the future is bright. It will be interesting to see how long it takes the market to digest the REAL story.
In comparing 2nd qtr this year to last year taxes have gone up $4M or approx 30% while income before taxes went up 28%. In essence the tax rate went up slightly. CXW did have tax carryforwards which have now expired which means that the actual tax payments have increased dramatically. This will decrease operating cash flow. Now CXW is paying taxes like most other profitable companies.
CXW has been accruing tax expense each quarter but rather than crediting accrued taxes payable they were hitting deferred taxes.
Basically earnings and earnings per share will still show the steady increases from improved operations while cash flow will decrease as a result of tax credits having expired
bouncing right along on its 50 day ma, numbers look fine to me, love the growth in illegal aliens,
one thing for sure, in the next few years there will be millions of new beds for illegal aliens, there is no doubt that regardless of what gets done with immigration there will be more enforcement. This is a great growth stock imo,
Please confirm this on your own, rather than trust my skimming of the report, but the reason for lower profits may be the loss of tax deductions from previous year(s). Now that these have been used up, CXW had to pay its taxes with cash rather than credits./The Huss.