Corrections Corporation Of America's CEO Discusses Q1 2012 Results - Earnings Call Transcript

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 T. Hininger

Thank you, Peter. Good morning and thank you for joining our call today. With me today is our Chairman, John Ferguson, and our CFO, Todd Mullenger. Also joining us is our Chief Corrections Officer, Harley Lappin and VP of Finance, David Garfinkle.

In a few minutes, Todd will take you through the numbers for the quarter. Then I’ll discuss the marketplace and strategic alternatives, after which we look forward to taking your questions.

First though, I’d like to make a couple of comments on the past quarter. For the quarter, we had strong cash flow performance with FFO being north of $82 million, and also reported 3% for EPS for the quarter.

We also for the quarter had a very exciting announcement with our new dividend, which we announced in late February, and that announcement indicated that we intend to do on an annual basis about $0.80 per share and also $0.20 per quarter and we intend to declare our first dividend year later this month, and then have a very first payment to this new policy in next month in June.

We see this is a very good next step after successful share repurchase program, to create more shareholder value that is more predictable for investors. And with this feature we now see us as even a more attractive investment. We’ve demonstrated extremely durable cash flows over the last three years, with those buying over $500 million in shares and less than $18. But also during that period of time we had 6,400 new beds. We added no new debt to the balance sheet and we thought no top or bottom line deterioration.

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