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Corrections Corporation of America Message Board

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  • flipper_58 flipper_58 Nov 23, 1999 2:33 PM Flag

    Quick check again on the numbers

    9 months...Opco annualized from the 3rd quarter
    number of $32mm loss equal loss of $128mm. PZN
    annualized would be $225mm for combined of $97mm or $.81
    combined ($97mm/119mm)....with a 40% tax bracket woulld
    give them net earnings of $.48/shares or 19

    Annualizing Opco from the full year so
    far...loss$84mm...would give Opco a yearly loss of $112M or combined
    income of $113m($225PZN -112Opco) or $.94 non
    taxed.....$.56 fully taxed or P/E of 16.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I agree it's hard to do a quick and dirty on this
      due to all the accounting issues. For what it's
      worth, if you take CCA and PZN's combined after-tax
      earnings from the third quarter of last year, you get
      about 93 cents per share on an annual run rate on the
      current share base. Obviously, occupancy is down since
      then and interest costs are up significantly. On the
      plus side, they've got a lot more

      Pre-dilution from an SI, I don't think an EPS number of 80
      cents to $1.00 would be unreasonable for a combined
      entity at 95% occupancy.

    • He said Chris Haley put out report
      saying PZN to go back to a CCorporation and
      estimated 2000 and 2001 eps as a C corp.
      He disagreed
      with some of the assumptions made
      by the
      analyst.This report may have caused todays selling.
      He felt
      last week's selling due to an
      instittution dumping
      shares.The stock rebounded when the seller stopped selling.

      Calif. City is starting to get inmates until
      Federal contract is placed.They have met
      with several
      SI's but nothing to report yet.
      PZN's Board will
      meet with MLP and evaluate
      all options and the
      Board may decide to Reit
      or convert back to a C
      Corp. They could Reit
      this year and convert back to
      CCorp next year
      or they could not become a Reit. If
      they go back to a CCorp it will probably require
      vote by shareholders.If they go back to a
      they can not re Reit for a least 4 years.

      • 1 Reply to PolyRat
      • Bob Crants said board "may decide to reit or go
        back to c-corp, or not become a reit" -- this sounds
        like they are out on an ice floe and can't figure out
        the water temperature. Long on speculation, short on
        facts. Maybe that explains why people can't make up
        their minds about whether to buy or dump this stock.
        Sounds like they either don't know what they are doing,
        or don't know what they will be forced to do. RP,
        that sounds like you may get your wish (de-reit), but
        it also sounds like lawsuits waiting for the BOD for
        all this sleight of hand.

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