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Corrections Corporation of America Message Board

  • ewocfo ewocfo Nov 11, 1999 2:18 PM Flag

    What wasnt discussed

    The problem most people have with Doc is, they listen to what he said, not what he
    didnt say. I challenge all of you to think of things Doc has not mentioned and possible
    scenarios that have not been discussed. For instance, could Doc be doing all of this crap on
    purpose to drive the stock down further to take this baby private? (I dont think so b/c it
    would restrict his access to equity capital, but it could happen).

    The most recent
    10Q .... a must

    from the 10Q

    "The Company, as a REIT, cannot complete any taxable year with
    earnings and profits from a taxable corporation. Accordingly, the Company is
    required to
    distribute Old CCA's earnings and profits to which it succeeded in
    the Merger (the
    "Accumulated Earnings and Profits"). The amount of the
    Accumulated Earnings and Profits is
    currently estimated at
    $235.0 million. All dividends paid by the Company thus far in 1999
    have reduced
    the amount of the Accumulated Earnings and Profits. Thus, to satisfy
    requirements relating to the distribution of the Accumulated Earnings and
    Profits, the Company
    must still distribute in 1999 the amount of the Accumulated
    Earnings and Profits, minus
    the dividends paid thus far in 1999. In addition to
    distributing the Accumulated
    Earnings and Profits, the Company is also required
    to distribute 95% of its taxable income
    for 1999. The Company currently intends
    to pay sufficient dividends (in cash or
    securities) to satisfy all distribution
    requirements for qualification as a REIT for 1999. The
    Company is currently
    considering the exact timing and method of the payment of these
    distributions. The Company may partially satisfy these requirements through
    the payment of a
    one-time special dividend (the "Special Dividend"). Certain
    provisions of the Amended Credit
    Facility restrict the Company's ability to
    pay these required distributions in cash in
    1999, as previously described.
    Merrill Lynch has been retained by each of the Company and
    CCA as its financial advisor to assist each company in raising the capital
    required by
    the Amended Credit Facility in order to make the Special Dividend
    payment in cash, also
    as previously described. There can be no assurance that
    the Company or New CCA will be
    able to raise the capital required under the
    Amended Credit Facility for the Company to
    pay the Special Dividend in cash or,
    in the event such transaction is completed, that
    the Special Dividend will be
    paid in cash."

33.29+0.10(+0.30%)Jul 2 4:06 PMEDT