Question-and-Answer Session
Thank you. [Operator Instructions]. We'll take our first question from Manav Patnaik from Lehman Brothers.
Manav Patnaik - Lehman Brothers
Hi, thank you. First, congrats on a good quarter, guys. Just a little more granularity, if you could, in terms of kind of the owned facilities and the managed-only with respect to your man-day margins sequentially, let's start with the owned facilities first, would you expect to see that stay stable and rise through the next three or four quarters or can that fluctuate quarter-over-quarter?
William F. Andrews - Chairman of the Board
Are you talking about operating margins per man-day?
Manav Patnaik - Lehman Brothers
Correct, the compensated man-day margins, correct.
William F. Andrews - Chairman of the Board
Yes, we would expect those to accelerate.
Manav Patnaik - Lehman Brothers
And how about, I guess, with the managed-only... yes, correct? And then the managed-only, like would the margin sustain more pressure or would your per diems that you're seeing with some pricing leverage help those move up sequentially as well?
John D. Ferguson - President and Chief Executive Officer
Actually, the pricing leverage on managed-only is nowhere near what it is beyond our facility.
Manav Patnaik - Lehman Brothers
Correct.
John D. Ferguson - President and Chief Executive Officer
Because when the contracts are up for re-bid, many correctional service providers can compete for that business. So, we would not see the same acceleration in managed-only as we do at the owned facilities.
Manav Patnaik - Lehman Brothers
Okay. And then, with respect to your full-year guidance, it seems like I guess everything is on track. What is holding you back from maybe narrowing that $1.21 to $1.28 guidance range? Is it just California that you discussed or is there maybe some more factors in there that you're being a bit cautious about?
William F. Andrews - Chairman of the Board
Yes, I think it's the uncertainty around the timing of the receipt of the inmates. The macro environment is still very strong, but as we've mentioned on numerous occasions in the past, there is always uncertainty around exact timing of the receipt of those inmates.
Manav Patnaik - Lehman Brothers
Okay. And finally, can you just give us an update on Colorado and what's happening with the negotiations there?
John D. Ferguson - President and Chief Executive Officer
The... their budget bill passed a few weeks back and it authorized a 4.25% per diem increase, effective July 1, and we are in discussions with Colorado and working around the availability of future beds because we will have some 1,400 plus beds available in Colorado, some of which we would like to maybe find an interim customer prior to Colorado growing into those beds. But the net of it was that they authorized 4.25% per diem increase on July 1.
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