This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

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

As many of you know that have been investors of the company, this program has spent about $500 million or brought in about 28 million shares during that 3-year period of time at a cost basis of about $17.91. So we’ve had great success with that program, but again as we get towards the end of 2011 we knew that was going to run its course. So this led to the announcement which we did yesterday, our new dividend policy.

So as you saw in our press release, we’re intending to pay a cash quarterly dividend of about $0.20 per share or annually about $0.80, and we’re expecting to pay our first dividend in June of this year.

And the dividend supported by strong liquidity; again many of you know this already, that have been following the company, but also a strong balance sheet and also very strong cash generation. In fact, we’re trading right now at debt-to-EBITDA less than three times and not only us saying that we have a good balance sheet and liquidity, this was reinforced last summer by Moody’s which gave us an upgrade in our debt holdings; but also during this period of time as I mentioned earlier, we spent $0.5 billion on share repurchase but we didn’t have to add any additional debt to the balance sheet to achieve that success with that program.

Now as we think about our capital strategy going forward with this new policy, we’re looking at our allocation really going – really two different directions, one of which is about a third of our AFFO going towards the cash dividend and then the other two thirds going towards earnings growth, so really focusing in on our core business of adult secure solutions in the U.S.

Now, investors that have been with the company a while know that we’ve used AFFO as a measure of the company’s cash generation and this, we think is still a good measure to show the amount of cash that we are generating for dividend, but also what we can do for new investment.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs