SOURCE: Corrections Corporation of America

Corrections Corporation of America

May 16, 2011 08:30 ET

CCA Announces $100 Million Increase in Share Repurchase Program

NASHVILLE, TN--(Marketwire - May 16, 2011) - CCA (NYSE: CXW) (the "Company" or "Corrections Corporation of America"), America's leader in partnership corrections and the nation's largest provider of corrections management services to government agencies, announced today its Board of Directors has authorized an increase in the aggregate amount the Company may repurchase under its previously announced share repurchase program from $250.0 million to $350.0 million. The Company's Board also authorized the extension of the share repurchase program through December 31, 2012. Since announcing the share repurchase program on February 9, 2010, as of May 13, 2011, the Company has repurchased a total of approximately 9.9 million of its common shares at an aggregate cost of approximately $212.3 million. Therefore, an aggregate of $137.7 million will be available under the repurchase program.

"This increase and extension of our share repurchase program demonstrates our commitment to delivering shareholder value and our belief in the long-term prospects of CCA," said Damon Hininger, CCA's President and Chief Executive Officer. "Our solid financial results and strong balance sheet enable us to fund the increased share repurchase program as well as our capital expenditure requirements while maintaining the flexibility to continue to execute our long-term business strategy."

The Company's Board determined to limit at this time the increase in the amount authorized after considering the limitations on restricted payments, such as share repurchases, under the Company's revolving credit facility and outstanding indentures. Currently, the aggregate permitted amount of restricted payments is approximately $154 million, which increases quarterly based on 50% of the Company's net income.

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 66 facilities, including 45 company-owned facilities, with a total design capacity of approximately 90,000 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, 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) judicial challenges and the outcome of budget proposals regarding California's utilization of 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:

    Investors and Analysts:
    Karin Demler
    CCA
    (615) 263-3005

    Financial Media:
    Dave Gutierrez
    Dresner Corporate Services
    (312) 780-7204