SOURCE: Corrections Corporation of America

Corrections Corporation of America

April 14, 2010 08:30 ET

CCA Wins Two New Management Contracts and Maintains Management of One Existing Contract in Florida

NASHVILLE, TN--(Marketwire - April 14, 2010) -  CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that pursuant to a re-bid of the management contracts at four Florida facilities, two of which are currently managed by CCA, the Florida Department of Management Services ("Florida DMS") has indicated its intent to award CCA the continued management of the 985-bed Bay Correctional Facility, in Panama City, Florida. Additionally, the Florida DMS has indicated its intent to award CCA management of the 985-bed Moore Haven Correctional Facility in Moore Haven, Florida and the 1,884-bed Graceville Correctional Facility in Graceville, Florida. However, CCA was not selected for the continued management of the 1,520-bed Gadsden Correctional Facility in Quincy, Florida.

All of the facilities are owned by the state of Florida. The contracts which are subject to final negotiations contain an initial term of three-years and two 2-year renewal options. CCA expects to assume management of the Moore Haven and Graceville facilities, and to transition management at the Gadsden facility on August 1, 2010.

CCA expects to provide updated earnings guidance in its press release announcing financial results for the first quarter of 2010 expected to be released in May 2010.

Damon Hininger, president and CEO, stated, "We are pleased that Florida has again expressed a high level of confidence in our operations expertise by re-awarding CCA one of our existing contracts and entrusting us with two new contracts. Although we are disappointed that CCA was not selected for the continued management at Gadsden, we are grateful for the opportunity to expand our relationship with the State of Florida. CCA has been a trusted and accountable partner to the State of Florida for 15 years and we look forward to continuing our partnership. We will work closely with the Florida DMS and the current operator to ensure a smooth management transition."

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 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 Information

  • Contact:
    Karin Demler -- Investors, 615-263-3005
    Louise Grant -- Media, 615-263-3106