% | $
Quotes you view appear here for quick access.

Corrections Corporation of America Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • newMK newMK May 18, 1999 10:52 PM Flag

    sounds like they are stealing the share

    and don't forget the new 4 1/2% "success fee".
    Doc blew the conference call. He tried pooh-poohing
    the whole thing and in the process created more
    confusion. Doesn't make sense, because the reason for the
    call was to head off misunderstanding. Not only did he
    leave everyone confused, but there seems to be
    widespread doubt about the fundamental business now,
    although I'm sure it is overblown.

    If you had
    followed this thread (and CCA before it) you would know
    that I have held Doc in the highest esteem through
    thick and thin. He let us down on Friday. You can't
    really blame the analysts and the market this time
    around. Now he's stuck on the road trying to get the do
    or die debt deal done, and can't address the market
    noise. No wonder we're in a free fall.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Where was the CFO to help him explain what
      happened. I work for public company in unrelated industry
      and listen to all the calls.The CEO always has his
      numbers guy their to help explain things. How could they
      have missed the 4.5% which he attributes to cost for
      reimbursement of 3rd party gov't and community relations
      expense. Its makes them look like they did not do their
      homework. He also appeared to be confused on the cost of a
      bed going from $35,840 to $39,000. If the explantion
      he gave about covering the rampup is correct them
      that cost is amortized over 12 years and not booked as
      property and equipment which you would normally equate
      back to the figure per bed. The 4.5% was explained in
      the first part of the call as a capitalized cost
      which should go into the bed cost. But 35,840 x 4.5% is
      1,613 not 3,140.

      • 1 Reply to socksey
      • if I understood correctly, he did correctly state
        that the 4 1/2% is depreciated over 50 years (what you
        may have missed is that he said that it is already
        included in the $35,000 figure used as an average bed

        You are also right that the tenant
        inducement fee ($4,000)is not on the books as part of the
        facility. I assume just added to bed cost as it is part of
        the "upfront" cost of a facility. It gets amortized
        against revenue over lease term, but still added back,
        like depreciation, in arriving at FFO.

        situation is confused. Darrell Massengale, the long-time
        CCA CFO who used to be in on the conference calls, is
        now at OPCO. Vida Carol, the PZN CFO was on the call
        (in the room), and is on the road show with Doc.

13.99+0.29(+2.12%)Oct 21 4:04 PMEDT