Question-and-Answer Session
Thank you. [Operator Instructions] We'll take our first question from TC Robillard from Banc of America Securities.
Thomas Robillard - Banc of America Securities
Thank you. Good morning everyone. Todd, can you give us a sense because obviously California seems to be the area that stripped you guys up now two quarters in a row as its relates to forward guidance. Can you give us what your assumptions were for California's ramp rate for the third quarter and for the fourth quarter prior to your revised guidance. I am just trying to get a sense as to your prior comments that inmate transfers didn't come in as expected. Can you just give us a sense as to what you were expecting?
Todd Mullenger - Executive Vice President and Chief Financial Officer
I don't have the exact numbers in front of us. We pay when disclosing exact numbers but we were hopeful that in kind of a best case scenario, we'll be in a position to start that ramp up in September. And we thought may be the worse case was somewhere in early October ramp and unfortunately we were disappointed those negotiations took longer than we anticipated and now it's a November timeframe. And as a reminder all of the, the majority of fixed costs were in place and receiving those inmates starting in September and October, we had a significant impact, a little bit of the favorable impact in Q3 and a significant impact on Q4.
Thomas Robillard - Banc of America Securities
But what about, I guess just California as a whole you made some comments that even to some of your other facilities the transfer rates were slower than you were expecting. And I mean if you look at the quarter California was transferring roughly 300 inmates a month on average which degraded lower than what it was in the first half. But, seemed relative to what was happening on your call back in August didn't seem to me to be a bad number. So I am just trying to get a sense, what were you guys looking for in the second half, if you go back to your August call what were your expectations for California as a whole into Corrections Corp system for the back half of ''08?
Todd Mullenger - Executive Vice President and Chief Financial Officer
When California started to have concerns around their ability to fill bed to Tallahatchie we had additional capacity at La Palma and North Fork that they could have accelerated a ramp up on and they expressed the desire to do that and actually provided us as a schedule which showed a more aggressive ramp on both those facilities and at the end of the day they didn't meet those ramp up schedules.
- To read the full transcript on Seeking Alpha, click here »



