Corrections Corporation of America Announces the Expansion of Two Existing Facilities for a Contract Amendment Received From the State of Georgia
Nashville, Tenn., July 1, 2009 - Corrections Corporation of America ("CCA") (NYSE: CXW), the nation's largest provider of corrections management services to government agencies, announced that it has been awarded an amendment to its existing contract with the Georgia Department of Corrections ("DOC") to expand two of its existing facilities by 1,500 beds. This award satisfies a competitive Request for Proposal of 1,500 beds from the state of Georgia that was issued in October of 2008. CCA currently houses approximately 3,400 inmates from the state of Georgia.
As a result of the award, we will expand our 1,524-bed Coffee Correctional Facility by 788 beds and our 1,524 bed Wheeler Correctional Facility by 712 beds. The expansions are estimated to cost $65.0 million and are currently anticipated to be completed during the third quarter of 2010, at which point the company expects to begin receiving the incremental inmates. The amended contract expires June 30, 2010 and includes twenty-four one-year remaining renewal options. In addition to the guarantee on the existing beds at both facilities, the amended contract contains a 90% guarantee on the expansion beds.
"We are grateful that the state of Georgia has expanded our relationship and entrusted these additional inmates into our care," stated CCA's Chief Executive Officer, John Ferguson. "These additional beds will provide the state of Georgia additional bed capacity to address their inmate population needs."
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. CCA currently operates 64 facilities, including 44 company-owned facilities, with a total design capacity of approximately 86,000 beds in 19 states and the District of Columbia. CCA 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, 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. CCA also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs. To learn more about CCA, visit www.correctionscorp.com.
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 we make from time to time 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 the press release.
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Investor Relations
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Marketing and Communications
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