SOURCE: Corrections Corporation of America

May 04, 2007 16:54 ET

Corrections Corporation of America Notified of Recommended Award From Florida Department of Management Services

NASHVILLE, TN -- (MARKET WIRE) -- May 4, 2007 -- Corrections Corporation of America (NYSE: CXW) (CCA) announced today that Florida's Department of Management Services (DMS) recommended CCA be awarded the continued management of the 750-bed Bay Correctional Facility in Panama City, Florida and the 1,136-bed Gadsden Correctional Institution in Quincy, Florida. Implementation of the recommendation is subject to negotiation and execution of a definitive agreement, which we expect to occur prior to the June 30, 2007 expiration of the current contracts. CCA is currently expanding the Bay facility by 235 beds and the Gadsden facility by 384 beds. Both expansions are currently expected to be completed during the third quarter of 2007.

"We are pleased to have been notified by the DMS of its recommendation that CCA continue to manage both of these facilities, and for the continued confidence the DMS has in CCA," stated John Ferguson, President and Chief Executive Officer. "It is always gratifying when an existing customer recognizes our ability to effectively manage their inmate populations."

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 64 facilities, including 40 company-owned facilities, with a total design capacity of approximately 73,000 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.

Forward-Looking Statements

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, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (iii) the Company's 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) 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 Information

  • Contact:
    Karin Demler
    Investor Relations
    615-263-3005

    Louise Grant
    Media
    615-263-3106