WASHINGTON (dpa-AFX) - CCA (CXW) or Corrections Corporation of America, announced that it will issue about 13.88 million new shares of its common stock in connection with the payment of the company's previously announced special dividend. The shares to be issued represent 80% of the total value of the $675 million special dividend.
The company stated that the number of shares to be issued was determined based upon the average closing price on the three trading days following May 9, 2013, or $38.90 per share. The remaining 20%, or $135 million of the special dividend, will be paid in cash.
The special dividend is payable on May 20, 2013 to stockholders of record as of the close of business on April 19, 2013. Following payment of the special dividend, the Company will have approximately 115.2 million shares of its common stock outstanding.
On May 8, 2013, CCA issued guidance, which was calculated without including any adjustment for the additional shares that would be issued in connection with the special dividend. Therefore, the company is providing updated guidance incorporating the impact of the additional shares to be issued.
For the second quarter, the company expects normalized FFO in the range of $0.66 to $0.68 per share, AFFO in the range of $0.65 to $0.66 per share and adjusted earnings is anticipated in a range of $0.49 to $0.50 per share. Analysts currently expect second-quarter earnings of $0.52 per share.
Previously, the company expected second quarter normalized FFO in the range of $0.70 to $0.72 per share, AFFO in the range of $0.69 to $0.71 per share and adjusted earnings in a range of $0.52 to $0.53 per share.
For the fiscal 2013, the company expects normalized FFO in the range of $2.60 to $2.67 per share, AFFO in the range of $2.53 to $2.65 per share and adjusted earnings is anticipated in a range of $1.91 to $1.98 per share. Analysts now expect fiscal 2013 earnings of $2.02 per share.
Previously, the company expected fiscal 2013 normalized FFO in the range of $2.83 to $2.91 per share, AFFO in the range of $2.75 to $2.88 per share and adjusted earnings in a range of $2.08 to $2.16 per share.
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