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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.
And we’ve a very unique permanent feature in the business with the delta between our maintenance CapEx and depreciation amortization. And with such, we intend to allocate a third of our AFFO towards the dividend and two thirds or said in another way 100% of our net income towards new growth going forward. And we think that puts us in a very unique category for investment. Also for the quarter, we have some very exciting either start ups or transitions during quarter most notably in January, we transitioned to our new Lake Erie facility up in Ohio.Later in the quarter, we started our new contract with Puerto Rico by ramping up their inmate population in our Cimarron, Okalahoma facility. And most recently, we opened our new Jenkins county facility in Georgia for the State of Georgia the house inmates there. We also for the quarter closed on our new bank facility in January and also very excited about the terms and conditions of this new facility. But also allowing us to have more flexibilities we think about our debts strategy going forward. And the United States Marshals service we had challenges also with our population and that was the biggest factor as we thought about our guidance and forecast for the rest of the 2012. And really the headline here is that the BOP added capacity in California and Texas. But also a change in sensing for crack and powder cocaine. New capacity equaled about 4,000 beds and about 1,700 individuals were released early by the BOP in the fourth quarter of last year and the first quarter of this year due to this sensing change. These two events will allow the Marshals Service to achieve a lower average daily population nationwide and achieve a lower level in January than they forecasted in their 2012 projections. And in a few minutes, I will provide a little more detail around this event with the Marshals Service.
We continued our focus on cost and efficiencies as it is announced in the press release, we had some noise in the quarter with the activation of Jenkins, the ramp up of Puerto Rico and the transition of Lake Erie, but we also for the quarter had a announcement of the closure of two financially unproductive facilities totaling about 1,600 beds. And obviously this will affect the top line where it will be passed to the bottom line long term.Later in the call, I will also comment on our work on the TRS or taxable REIT subsidiary structure and also our plan of action and I’ll turn the call over to Todd here in a minute. But before I do, I’d like to thank all of our fellow CCA colleagues for their achievements and efforts during the course of this year. And as always, I am eternally grateful for all of them. So with that, I will turn the call over to Todd. Todd J. Mullenger Thank you, Damon, and good morning, everyone. In the first quarter 2012, we generated $0.33 of adjusted EPS, which excludes the cost associated with our recent debt refinancing. Funds from operations or FFO totaled $0.82 per share, while adjusted funds from operations or AFFO totaled $0.69 per share. Read the rest of this transcript for free on seekingalpha.com