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  "documentTitle": "Corrections Corporation of America (CXW)",
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  "authorName": "William Ackman",
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  "presentationDate": "2009-10-20 00:00:00",
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  "notes": "The slide contrasts management's conservative $100mm estimate with a theoretical $230mm contribution margin, concluding the actual value lies between them.",
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      "text": "Implies ~$230mm of incremental EBITDA",
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      "text": "Implies ~$100mm of incremental EBITDA",
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      "text": "While this contribution margin analysis implies $230mm of incremental EBITDA, we believe the actual number will be somewhere between $100mm and $230mm",
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      "text": "incremental EBITDA: $230mm",
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      "text": "Management derives its ~$100mm estimate by applying CXW's Q2'09 margin to the lease-up of its existing inventory; however, approximately 84% of the costs in CXW's Owned & Managed Facilities segment are fixed",
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      "text": "While this contribution margin analysis implies $230mm of incremental EBITDA, we believe the actual number will be somewhere between $100mm and $230mm",
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      "text": "Source: CXW Q2'09 financial supplement. See page 33 of the CXW investor presentation for details of the assumptions used to derive management's ~$100mm estimate. (1) The vast majority of CXW's fixed expense is labor. Also includes utilities, property taxes, insurance, repairs & maintenance and other similar expenses. (2) Includes legal, medical, food, welfare and other similar expenses. (3) This analysis is illustrative. We note that there will be some amount of incremental fixed expense associated with the ramp-up of CXW's inventory as staffing requirements increase with occupancy. We further note that some of the beds in CXW's inventory have not yet been developed, and therefore do not yet have associated fixed expenses.",
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      "text": "Contribution Margin Analysis: (3) Revenue per man-day $66.88 Less: Variable expense per man-day (10.68) Facility EBITDA per Incremental Man-Day $56.20 Contribution Margin 84.0%",
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      "text": "CXW Facilities (Owned-only) Q2'09 Revenue per man-day $66.88 Less: Fixed expense per man-day (1) (32.74) Less: Variable expense per man-day (2) (10.68) Facility EBITDA per Man-Day $23.46 Margin 35.1%",
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      "text": "Near-Term Catalysts: Operating Leverage",
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