SOURCE: Corrections Corporation of America

March 29, 2007 08:00 ET

Corrections Corporation of America to Expand Two Facilities

NASHVILLE, TN -- (MARKET WIRE) -- March 29, 2007 -- Corrections Corporation of America (NYSE: CXW) ("CCA," the "Company"), the nation's largest provider of corrections management services to government agencies, announced today its intention to expand two company-owned facilities based on the Company's expectation of increased demand from a number of existing state and federal customers.

In August 2006, the Company announced its intention to expand its 1,104-bed Tallahatchie County Correctional Facility in Tutwiler, Mississippi by 360 beds, which is expected to be completed during the fourth quarter of 2007. Based on anticipated demand from a number of state and federal customers, the Company expects to complete an additional 360-bed expansion. The second expansion is expected to be completed during the first quarter of 2008 at a total cost of approximately $17.0 million.

In addition, the Company announced its intention to expand its 767-bed Leavenworth Detention Center in Leavenworth, Kansas by 266 beds. CCA anticipates that construction will be completed during the second quarter of 2008, at an estimated cost of $22.5 million. This expansion will also include a renovation of the existing building infrastructure to accommodate higher detainee populations. The Leavenworth facility currently houses approximately 900 United States Marshals Service ("USMS") detainees.

CCA's President and CEO John Ferguson stated, "We are pleased to continue our development program intended to provide just-in-time beds for our customers as their need for available bed space continues to grow. The two expansions represent the first beds underway in our previously announced effort to develop an additional 4,000 to 6,000 beds to stay ahead of the increasing demand from many of our customers. We continue to diligently explore other expansion and new development opportunities that we believe will drive future growth."

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 72,000 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 and 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 the result of sufficient governmental appropriations and as the 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