Axel, your comments about the missing IR emphasis at yesterday's meeting inspired me to re-read CCA's annual report and previous press releases concerning the backgrounds of their senior management team (the big 5 - Ferguson, Lingo, Quinlan, Puryear, Baylor). While they all have strong credentials in certain areas, none of them have any experience with a company even remotely like CCA; i.e., a controversial one with a story that is not always immediately understood, and with enemies that seek not just its failure but its destruction (i.e. your friendly little protesters outside).
Ferguson's tenure at a NASDAQ-traded community bank in suburban Memphis is not comparable. Lingo's time at a REIT is certainly nothing like "our" REIT. Puryear trained Dick Cheney to debate Joe Lieberman - well, obviously he did a good job but that has nothing to do with his job duties now. Quinlan worked for the BOP where they only had to please Congress. Baylor sold furniture.
I'm not picking on these folks, but NONE of them have a background that would indicate sensitivity to investor relations issues. Right now their focus is on taking care of the bank debt and filling empty beds. This is as it should be. But the story behind these activities, and how it can be formed into some kind of model that can get analysts to care about this company again, etc. etc. etc. - needs to be told. And if they don't have the time to do it, they need to hire a competent person who does. Their jobs will ultimately be easier for it.
P.S. No, I'm not an IR person and I'm not looking for a job. And now I will climb off my soapbox and get ready for work.
Management has been real clear on everything I have heard. Although they have offered Mcrae to Bop they will lease it to the first good customer. You could see both Mcrae, and Lumpkin go to the state or Bop. There was also a rumor that would open Mcrae and sell Lumpkin. You can bet that Nashville is going to do what best for Cxw quick.
AW, I seem to remember from the last conference call that CCA has offered the prison in McRae to the BOP. If that happens, would CCA be able to complete the prison in Lumpkin to offer to Georgia?
There are two facilities in Georgia that are not open. These two are 1500 bed facilities for a grand total of 3000 beds. Strong rumor has it that Georgia is ready to fill up one of them due to the state being approx. 16000 beds short. That one would be the Mcrae facility. The other one would be one in Lumpkin Georgia that is approx. 50% complete. Georgia has three private prisons in operation. Two 1500 bed facilities run by CXW, and one 1500 bed ran by Cornell. What I have heard they are well pleased with all three. Georgia looks good.
But remember that 6000 of those empty beds are not being calculated in the occ numbers.
53000 @ 93% occ = 57,000 beds
53000 @ 88% occ = 60,000 beds(adding Ygntwn&Miss)
+ 6000 GA beds not included=66,000 beds
That would make empty beds about 13,000.
I think the distinction they make in the calcs is online units with little occ(Yng & Miss) versus units not online(Ga)