Corrections Corporation of America Announces Resignation of James A. Seaton as Chief Operating Officer
Nashville, Tenn., August 10 2004 - Corrections Corporation of America (CCA) (NYSE: CXW), announced today that James A. Seaton, executive vice president and chief operating officer of CCA since July 2002, has resigned effective immediately.
In announcing the resignation, President and Chief Executive Officer John D. Ferguson, stated, "We are grateful for Jim Seaton's contributions to CCA during his tenure with us. We wish him well in his future endeavors."
CCA announced that John Ferguson would perform the duties of the chief operating officer on an interim basis in addition to his current role. Commenting on this change, Mr. Ferguson stated, "Our intent is to consider whether and when a new chief operating officer will be recruited, or whether some other reporting structure is more appropriate for CCA."
During this transition, J. Michael Quinlan, a senior vice president and former chief operating officer of CCA, will consult with Mr. Ferguson. "Mike Quinlan's background as Director of the Federal Bureau of Prisons and his long history with CCA will provide valuable counsel," Mr. Ferguson stated. The five vice presidents and three senior managers who have reported to the chief operating officer will report directly to Mr. Ferguson.
"As the founder and leader of the private corrections industry, CCA remains committed to providing the highest level of service to our government partners. Our dedicated corrections professionals will strive to make this a seamless transition," Mr. Ferguson added.
About the Company
The Company 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 65 facilities, including 38 company-owned facilities, with a total design capacity of approximately 66,000 beds in 20 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; (iii) 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 (iv) 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.