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Corrections Corporation Of America's CEO Discusses Q2 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, Melisa, and good morning and thank you all for joining our call today. With me today is our Chairman, John Ferguson, and CFO, Todd Mullenger. And also joining us is our Chief Corrections Officer, Harley Lappin and our 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 also give an update on private REITs, after which we look forward to taking your questions.

First though, let me make some comments on the past quarter. First, we had strong cash flow performance for the quarter with FFO near $54 million and reported $0.38 in adjusted EPS.

We also had a very significant couple of contract wins this past quarter with Idaho and Oklahoma, the two brand new contracts that obviously utilize up to 1,000 beds of existing capacity in our system. Now, Oklahoma is already ramping up into our Cimarron facility, and we expect the ramp up of Idaho to start this month. And we think that these win show again the value of our existing beds which are just-in-time.

So with these two contracts, in addition to our Puerto Rico contract that we got awarded earlier this year, again showed that our existing capacity being very attractive to customers as they grow. And also, we just had a recent development were another customer has come out with the procurement with the Bureau of Prisons looking for 1,000 beds in existing capacity.

We also know two other jurisdictions that are looking for up to a 1,000 beds in existing facilities and we think these procurements could be out the next 6 months to 12 months.

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