CCA Awarded New Management Contract With Idaho and Expands Agreement With Oklahoma
NASHVILLE, TN, Jul 16, 2012 (MARKETWIRE via COMTEX) --CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that it has entered into a new agreement with the Idaho Department of Corrections to house up to 800 inmates at CCA's Kit Carson Correctional Center in Colorado. Additionally, CCA announced that it has renewed its agreement with the Oklahoma Department of Corrections. As part of the renewal, CCA has agreed to increase the contracted capacity by 240 inmates at its Cimarron Correctional Facility, and will now house up to 2,520 inmates for the state of Oklahoma.
The new agreement with Idaho will provide up to 800 beds of capacity immediately available at CCA's 1,488-bed Kit Carson Correctional Center. The management contract has an initial term of two years, with four one-year renewal options upon mutual agreement. CCA expects to initially receive 250 inmates from Idaho in the next few weeks with the potential for additional inmates over the contract term depending on the state of Idaho's capacity needs. CCA currently manages more than 2,000 inmates for the state of Idaho at the Idaho Correctional Center in Boise.
The renewal with Oklahoma will increase the base contract by over 10% to 2,520 inmates. However, the guaranteed occupancy would only apply to the base population and will not apply to the additional 240 beds. CCA expects to begin receiving the additional inmates in July and expects the receipt of these inmates to be significantly completed by the end of the third quarter of 2012. CCA currently manages more than 2,250 inmates from the state of Oklahoma at CCA's Cimarron Correctional Facility and Davis Correctional Facility. CCA's management contract with Oklahoma has one remaining annual renewal option which would extend the contract through June 30, 2014.
Damon Hininger, president and CEO, stated, "We are grateful for the opportunity to expand our relationship with the Idaho Department of Corrections and the Oklahoma Department of Corrections, both long-time, valued partners. Additionally, we are pleased that the utilization of both of these facilities will be increased to a more efficient operating level in the near term."
About CCA CCA is the nation's largest owner and operator of partnership correction 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 67 facilities, including 47 company-owned facilities, with a total design capacity of approximately 92,000 beds in 20 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, occupancy, and overall utilization; (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) the outcome of California's realignment program and its utilization of out of state private correctional capacity; 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 Investors 615-263-3005 Steve Owen Media 615-263-3107
SOURCE: Corrections Corporation of America