I agree with you, I do not think that Mr. Crants started out to with bad intentions. I do believe when the pressure go to much he and others made some horrible choices in a effort to cover their own respective butts. They forgot about the customers, employees and the investors. The three most important things to this companies sucess.
Yes, I remember when John Ferguson made his comment about occupancy, but when you think about it, that's the same thing as saying "when you take out the facilities that are empty, our occupancy is good." Well, duh.
I believe CCA's standard procedure has always been to include a facility in occupancy calculations once it beomes capable of holding inmates. Tallahatchie and Youngstown clearly fit this definition, and thus must be included. Their resolution - either back into a full operating prison, or sold away - is a key task for management, and the progress of such efforts should be discussed publicly (when possible). Removing them from the calculations so that shareholders can feel good about the rest of the facilities is an awkward spin, at best.
Another reason they need an IR team! Maybe if we keep tying every issue back to IR, someone in Nashville will get the message!!
I can only hope to one day be smart enough to be considered a member of the "Happy Brigade." Thanks for the post.
...to the distaff side - princess and pkn4mom.
In my post #17709, and my hope that flipper et al would revive the Happy Brigade, I completely forgot to add you to the list of "golden oldies" (figuratively, not literally). Haven't heard from mom for a while but I'm sure she drops in regularly to check the posts, and is just waiting for good news to add her constructive comments to the board.
Comment on occupancy...several posts ago, there were various numbers noted for current occupancy. My read of the C.C. was a little over 89%, but John Ferguson said if you take out Youngstown and Tallahatchee, which are both basically empty, the occupancy would be 93%. When these two go, and they will go, IMO 93% is getting close to outstanding levels. With a proper, dedicated IR team getting the facts out to the analysts and the street, we could see a steady return to credibility again.
Flipper, I've been a shareholder for a long time, and I think your assessment of the CCA/PZN 1998 merger is as accurate as it is possible to be for a MB. So, FWIW, take this as "compliment insurance" to shield you against any slings and arrows that might come your way for giving an informed, and fair, opinion. Just another reason why you are very valuable to this board.
Flipper - you will probably get hit with lots of abuse for that one, from the usual sources!!
But, IMHO, your comments always have merit, and are generally quite factual. Always have been, and I've been in this thing through cxc, cca, pzn, cxw (did I miss any?), and I hope you will continue. Many of us share your views, usually agree (although not always), and respect your knowledge of the company and the industry.
At one point you had a quorum with the Happy Brigade, but most have moved on. Hopefully you, the General, dawg, aw, and some of the other constructive posters can resurect the Brigade as we slowly turn upward. There is a lot of potential out there, as there are more and more law-breakers, daily/hourly, just asking for a roof over their heads. If the public employees can stop being manipulated, and start to think for themselves, they too will see there is ample work, money and good futures available for all, in the corrections industry. I think you can add prisons, to death and taxes, as given fixtures for the future. IMO.
'Nuf said for now. Again, thanks flipper for your always interesting posts. Keep 'em coming.
Happy Memorial Day to all. Say a little thanks to those who gave, so that we can enjoy!
No one really fully understood the PZN/OPCO structure that was the problem, not that it wouldn't work. And that was why it didn't work. The structure was set up following the razor thin lines of REIT tax laws. Tax laws did not allow over 25% of PZN income from non passive sources, this was the problem. To compensate PZN passed all it's income thru OPCO and OPCO inturn tured it into income allowed under REIT rules, leases. The leases were 30-45%/year. Charlie Thomas and other were asked to value a prison with a 45% lease rate. Do you think it was worth more than fair market lease rates? Of course it was. It allowed PZN to "step-up" it's values too also allowing PZN to pass asset tests for REIT tax law purposes.
I to this day, and I know this company better then most IMO, feel Doc's plan was not to steal from shareholders. Doc's failure, I feel was to be honest about lack of new business to fill all the new prison space to support the new structure he fought to get..
Of course most of you will disagree, but that's water over the dam.
Attack the messenger, but not the numbers...
If it doesn't agree with the union line it must be biased. More of the same, "blah-
It's a good report with good numbers, but
hey, why should that matter?