NASHVILLE, TN -- 11/02/09 --
Corrections Corporation of America (NYSE: CXW) ("CCA"), the nation's largest provider of corrections management
services to government agencies, announced today that it has amended its
agreement with the California Department of Corrections and Rehabilitation
("CDCR") to allow for the housing of 2,336 additional offenders from the
state of California. Under the amended agreement California will have the
ability to house additional inmates at CCA's North Fork Correctional
Facility in Oklahoma and its Red Rock Correctional Center in Arizona. The
2,336 additional beds provide the CDCR the ability to house up to 10,468
offenders in five CCA owned facilities located in the states of Arizona,
Mississippi and Oklahoma. CCA currently houses approximately 7,900
offenders from the state of California.
The terms of the amendment are similar to the previous agreement, including
the 90% guarantee which will be phased in over the ramp-up. CCA expects to
begin receiving additional inmates pursuant to the amendment during the
first quarter of 2010, with a gradual ramp-up estimated to be completed
during the first quarter of 2011. CCA will provide fourth quarter earnings
guidance when it releases third quarter financial results on November 4,
2009.
"We are very pleased with the California Department of Corrections and
Rehabilitation decision to entrust additional California offenders to our
care," said Damon Hininger, President and Chief Executive Officer. "We
believe our inventory of beds and breadth of experience in dealing with the
intricacies of this contract have been significant factors in our ability
to continue to expand our partnership with the CDCR."
About CCA
CCA is the nation's largest owner and operator of privatized correctional
and detention facilities and one of the largest prison operators in the
United States, behind only the federal government and three states. We
currently operate 65 facilities, including 44 company-owned facilities,
with a total design capacity of approximately 87,000 beds in 19 states and
the District of Columbia. We specialize in owning, operating and managing
prisons and other correctional facilities and providing inmate residential
and prisoner transportation services for governmental agencies. In
addition to providing the fundamental residential services relating to
inmates, our facilities offer a variety of rehabilitation and educational
programs, including basic education, religious services, life skills and
employment training and substance abuse treatment. These services are
intended to reduce recidivism and to prepare inmates for their successful
re-entry into society upon their release. We also provide health care
(including medical, dental and psychiatric services), food services and
work and recreational programs.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations
of the outcome of future events that are forward-looking statements as
defined within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks and
uncertainties associated with: (i) general economic and market conditions,
including the impact governmental budgets can have on our per diem rates
and occupancy; (ii) fluctuations in our operating results because of, among
other things, changes in occupancy levels, competition, increases in cost
of operations, fluctuations in interest rates and risks of operations;
(iii) our ability to obtain and maintain correctional facility management
contracts, including as a result of sufficient governmental appropriations
and as a result of inmate disturbances; (iv) changes in the privatization
of the corrections and detention industry, the public acceptance of our
services, the timing of the opening of and demand for new prison facilities
and the commencement of new management contracts; (v) risks associated with
judicial challenges regarding the transfer of California inmates to out of
state private correctional facilities; and (vi) increases in costs to
construct or expand correctional facilities that exceed original estimates,
or the inability to complete such projects on schedule as a result of
various factors, many of which are beyond our control, such as weather,
labor conditions and material shortages, resulting in increased
construction costs. Other factors that could cause operating and financial
results to differ are described in the filings made from time to time by us
with the Securities and Exchange Commission.
CCA takes no responsibility for updating the information contained in this
press release following the date hereof to reflect events or circumstances
occurring after the date hereof or the occurrence of unanticipated events
or for any changes or modifications made to this press release.
Contact:
Karin Demler
Investor Relations
615-263-3005
