What you say makes sense. I'm not sure about
Cibola, but California City was losing at least $1M per
month prior to taking on the 300 Marshall Service
prisoners. My bet is the losses there were close to $1M per
month even with those prisoners, when the pro forma
$39M Q1 cash flow number was generated. The 20%-25%
cash flow margin ignores this loss. What was/is
Cibola's status prior to the arrival of BOP inmates?
the fact that CCA is PRESENTLY incurring
tremendous costs and losses at Cal City and Cibola. Thus,
while an assumed 20% operating margin may be "right on
the money", understanding the increase in PZN/CCA
profitiability from these contracts requires some assumption
concerning the run rate of current losses. If, for example,
current losses are $10 million a year (just a number, not
an estimate), the INCREASE in annual profits would
be approximately $25 million instead of $15 million.
Yes thanks for your corrections. I think it is
good to put in the pref A div. just to see what the
numbers looks as an entity fully up and
Bottom line the numbers are not a disaster as long as no
more "Youngstown's" sprout up I guess.
Correctional Prop. Trust pays 175 basis points over LIBOR for
their prison debt. Imagine the savings if PZN could get
to even 2.50% over LIBOR. I guess we're talking 2002
to see that number, but you never know.
believe the estimates before the 1998 merger were $1 a
share after tax.....look at it now just a few years
With the coming of the rights offering/PIK
pref./merger to CCA I've given up trying to guess pre-share
I have to believe that with the
numbers I've seen, BK
isn't a possibility. Even
the preferred I've got isn't
dividends, I've got in at such a low price that I'll make
money with the accrual sooner or later. If the banks
this was a BK, why didn't they just
pull the plug already instead of laying out another
certain they knew PL was
Also, once the merger gets done, don't you think the
raising capital to pay down the
is more likely, if not from
a rights offering,
then perhaps through a private placement or
further asset sales?
Finally, does Carl Icahn
PZN? I remember someone posted an
excerpt from a SEC filing a few months back. After
got about half a billion more to invest.
Thanks for your posts, very
Based on 118.4 mil shares? If PZN issues shares
to CCA holders and does a rights offering to raise
the $100 mil, are we not looking at a lower number?
And will the PIK be convertible at some date? Pardon
my confusion, but I still don't know what this
animal is worth.