Corrections Corporation of America Announces Agreement with Immigration and Customs Enforcement for CCA Texas Facility
NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 21, 2005--Corrections Corporation of America (NYSE:CXW), the nation's largest provider of corrections management services to government agencies, announced today that it has reached an agreement with United States Immigration and Customs Enforcement (ICE) to manage up to 600 detainees at CCA's T. Don Hutto Correctional Center in Taylor, Texas.
CCA management expects to begin accepting ICE detainees on February 1, 2006. Although the contract does not provide for a guaranteed occupancy, the Company expects the facility to be substantially occupied before the end of the second quarter of 2006. The Company intends to provide guidance for 2006 in its fourth quarter earnings release and conference call expected to occur in February 2006.
"Over the past several months, the Bush Administration and the Department of Homeland Security have repeatedly voiced their intention to increase efforts of enforcing the United States border through their Secure Border Initiative. The Secure Border Initiative is a comprehensive multi-year plan to secure America's borders and reduce illegal immigration. We believe this contract represents an important step in this ongoing initiative being undertaken by ICE," stated John Ferguson, president and chief executive officer.
Ferguson continued, "CCA is gratified by the continued confidence that Immigration and Customs Enforcement has placed in its partnership with us. We remain prepared to accommodate the future needs of this long-standing CCA customer."
About the Company
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. The Company currently operates 63 facilities, including 38 company-owned facilities, with a total design capacity of approximately 71,000 beds in 19 states and the District of Columbia. The Company specializes 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, the Company's 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. The Company also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs.
This press release contains statements as to the Company's 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) fluctuations in the Company's 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; (ii) changes in the privatization of the corrections and detention industry, the public acceptance of the Company's services and the timing of the opening of and demand for new prison facilities and the commencement of management contracts; (iii) the Company's ability to obtain and maintain correctional facility management contracts, including as the result of sufficient governmental appropriations and as the result of inmate disturbances; (iv) 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 the Company's control, such as weather, labor conditions and material shortages, resulting in increased construction costs; and (v) general economic and market conditions. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the Securities and Exchange Commission.
The Company 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 or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.
CONTACT: Corrections Corporation of America Marketing and Communications: Louise Gilchrist, 615-263-3106 or Investor Relations: Karin Demler, 615-263-3005 SOURCE: Corrections Corporation of America