NASHVILLE, Tenn., Oct. 31, 2016 (GLOBE NEWSWIRE) -- Corrections Corporation of America (NYSE:CXW) (the “Company” or “CCA”), which announced on October 28, 2016, that it is rebranding its corporate enterprise as "CoreCivic" later in 2016, announced today that it has entered into an agreement with Cibola County whereby CCA has agreed to operate its Cibola County Corrections Center to meet the responsibilities of a separate Intergovernmental Service Agreement ("IGSA") between Cibola County and Immigration and Customs Enforcement ("ICE") regarding detention services for up to 1,116 detainees.
The new contract at the Cibola County Corrections Center commenced on October 27, 2016, and contains an initial term of 5 years, with renewal options upon mutual agreement. CCA had previously housed inmates from the Federal Bureau of Prisons ("BOP") at the Cibola County Corrections Center under a separate contract that expired on October 30, 2016. On November 2, 2016, in connection with its report of financial results for the third quarter of 2016, CCA will update its financial guidance for the financial impact of this new contract.
"We are appreciative for the opportunity to once again provide a flexible, cost-effective solution for ICE as they are faced with an emergent detention capacity need," said Damon T. Hininger, CCA's President and Chief Executive Officer. "CCA already has an experienced, well-trained workforce at the Cibola County Corrections Center which, for many years, has provided an exceptional level of service to the BOP, and we are proud to have the opportunity to extend the same level of exceptional service to another federal customer under this new contract."
"Today's announcement provides yet another example of the marketability of our valuable real estate assets across multiple government customers, particularly when our real estate offering is coupled with CCA's high quality facility operations," added Mr. Hininger.
About the Company
The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, innovative and cost-saving government real estate solutions, and a growing network of residential reentry centers to help address America’s recidivism crisis. We are a publicly traded real estate investment trust (REIT) and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. The Company has been a flexible and dependable partner for government for more than 30 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at http://www.corecivic.com/.
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and 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, detention, and residential reentry facility management contracts, including, but not limited to, sufficient governmental appropriations, contract compliance 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, detention, and residential reentry facilities and the commencement of new management contracts, as well as our ability to utilize current available beds and new capacity as new development and expansion projects are completed; (v) changes in government policy regarding the utilization of the private sector for corrections and detention capacity and our services by the U.S. Department of Justice and the Department of Homeland Security; (vi) changes in government policy and in legislation and regulation of corrections and detention contractors that affect our business, including but not limited to, California's utilization of out-of-state contracted correctional capacity and the continued utilization of the South Texas Family Residential Center by U.S. Immigration and Customs Enforcement under terms of the current contract, and the impact of any changes to immigration reform and sentencing laws (Our company does not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual's incarceration or detention.); (vii) our ability to successfully integrate operations of our acquisitions and realize projected returns resulting therefrom; (viii) the ability to attract and retain key personnel; (ix) escalation in salaries, wages, incentives and the costs of providing employee health care; (x) our ability to meet and maintain qualification for taxation as a REIT; (xi) the availability of debt and equity financing on terms that are favorable to us; and (xii) increases in costs to construct or expand correctional and other 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 delays and increased 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 this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.
Contact: Investors: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024 Media: Steve Owen – Managing Director, Communications - (615) 263-3107
Source:Corrections Corporation of America