Prison Realty Reports Second Quarter
NASHVILLE, Tenn., Aug. 15 /PRNewswire/ --
Trust, Inc. (NYSE: PZN) announced today results for the
quarter ended June 30, 2000. Prison Realty reported
revenues of $17.5 million
and a net loss available to
common shareholders of $74.3 million, or
common share for the quarter.
Prison Realty has
proposed a comprehensive restructuring, including
merger of Prison Realty with CCA and its operation as a
taxable subchapter C
corporation rather than as a REIT
beginning with its 2000 taxable year.
revenues were reduced for the second quarter of 2000
reflect a reserve of $72.6 million to offset lease
revenues from Prison
Realty's primary tenant,
Corrections Corporation of America (CCA), due to
uncertainty regarding the collectibility of the
The results for the second quarter of 2000 include
$4.4 million in
write-offs of amounts under lease
agreements related to tenant incentive fees
due CCA on
two facilities opened in 2000, $28.1 million reserved
transaction fees related to the
termination of previously announced
transactions, and $7.5
million in foreign currency transaction losses as
result of the strong U.S. dollar against the UK pound
arising from receivables
related to the Company's HMP
Forrest Bank facility in Salford, England.
Prison Realty's primary tenant, had second quarter
$142.4 million and a net loss of $76.8
million. The loss includes gross lease
amortization of deferred credits of $81.6 million related
leases with Prison Realty. In addition to CCA, the two
service companies had
combined revenues of $72.9
million and combined net income before taxes of
million for the quarter. Prison Realty's economic
interest in the two
service companies is reported as
equity in earnings of subsidiaries.
the three companies doing business as CCA had 64,260
and jail beds in operation at the end of the second
quarter of 2000, versus
50,513 beds at June 30, 1999.
Occupancy for the quarter was 84.8% this year
with 92.7% last year, and compensated mandays for the
1.9% to 4.6 million from 4.1 million in
the second quarter of 1999.
from PRNewsWire, courtesy of Y*hoo
Following the earnings release, Prison Realty will hold a
conference call at 9:00 a.m. Central Daylight Time on
Wednesday, August 16, 2000. Those who would like to
participate in the conference call are invited to dial
800-810-0924, confirmation code 841321. International callers
should dial 913-981-4900. A simulcast of the call will
be available on the following Internet sites:
www.streetevents.com ; www.streetfusion.com ; and www.vcall.com
Those who are unable to participate are invited to call
719-457-0820 until August 21st at 5:00 p.m. CDT for a 24-hour
replay. Confirmation code: 841321. The replay will also
be posted on the Internet sites mentioned above for
Not out of the woods yet but the candor was
definitely a refreshing change. Any opinions on relative
merit of common vs. preferred to ease into a position?
As always I'll pay the going rate for free advice.
Several Wall Street Analysts such
Doctrow were upset about
CCA buyout and suggested it
better for shareholders to let CCA
bankrupt.Management said their
consultants thought letting CCA
bankrupt would ruin industry and delay stock recovery. I
undecided and will call PZN before
make my vote.
John also said they would review
deal to see if they were
liable for breakup
said Calif City to be occupied or
pay in Sept.They also mentioned
they have 3000
beds to fill in Georgia.As Calif City is
revenues jump as they are paid
around $60 per day
for their average today.This
increase profit per day which dropped
to $9.37 from
I concur with your comments on the call. I have a
thousand shares which I inherited. I was impressed with
the way the call was handled. The responses to
inquiries, I thought were straight forward and to the point.
I think these folks have a handle on the problem. I
just hope they can pull a recovery off. I will vote
for the merger. It is a shame we have to pay off Doc
Crants and his son but after listening to the call, I
don;t see any other options.
I was a little disappointed that the 10 %
Guarantee on the 137mm note that Doc personally guaranteed
was never discussed. Or that the loans that he and
his son and others took out haven't been paid back.
But I will say that as a long term investor since
1986 that the only solution is to vote yes and move
forward rather than dragging out. The banks have opened
the door for a solution to the ballooning credit
facilty and we don't have time to waste. Personally, Doc
should have been fired without pay or benefits.
I'll leave the number crunching to you and newMK,
Brendy, Chacal, Flipper and others more suited than I am
- but, to me that was a CC that we should have had
a year ago. Sounded like a professionally run,
big-time, big board company. Hopefully this is a sign of
things to come.
For John to say that communications
will definitely improve, and we will have a better run
company, we have moved positively forward already.
will anxiously await the comments from this board.