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TheStreet Open House

Corrections Corporation Of America's CEO Hosts Dividend Initiation Conference (Transcript)

Stocks in this article: CXW

Participating on today’s call will be our President and CEO, Damon Hininger; and Chief Financial Officer, Todd Mullenger.

I would now like to turn the call over to Mr. Hininger.

Please go ahead, sir.

Damon Hininger

Melody, thank you so much and good afternoon and welcome to our call this afternoon. In addition to Todd joining me during our call, we also have our Chairman, John Ferguson. Here in a few minutes, I’m going to walk you through the slide presentation that’s out on the web. It’s in the CCA.com website under Investor Relations, so feel free to pull that up if you haven’t already, and we’ll take a few minutes to go through the deck and then after that, we’ll open it up for Q&A.

So with that, let’s go ahead and get started and as you go into the presentation, if you would direct your focus to slide number three. That’s where we’ll start our conversation this afternoon. So let me just first say we’re very excited about our new dividend program. As the management team and the Board went through 2011, really took another hard look at other alternatives where we can create additional shareholder value. And this was partly because we knew we were going to run our course on the share repurchase program since we have restrictions in our debt agreements that limit the amount of cash that we can send out the door through either share repurchase and dividend program and that program has kind of run its course, and we’re getting close to that limitation. The conversation during 2011 was more about what additional steps can we take to increase shareholder value.

So we see this announcement as the next logical step in a very thoughtful strategy. If you think about the last few years, our company has been focused really on two main things. One is our core business, which is the adult secure solutions here in the United States where we’ve had great success over the last few years in growing and expanding but also with the share repurchase program.

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