NASHVILLE, TN--(Marketwire -01/03/12)- CCA (Corrections Corporation of America) (NYSE: CXW - News), the nation's largest partnership corrections provider to government agencies, announced today that it has entered into a contract with the Puerto Rico Department of Corrections and Rehabilitation to manage up to 480 male inmates at CCA's 1,692-bed Cimarron Correctional Facility in Cushing, Oklahoma. CCA last partnered with the Puerto Rico Department of Corrections and Rehabilitation in August 2002.
The management contract has an initial term of two years and upon mutual agreement can be renewed for two additional one-year terms. The management contract will commence upon receipt of an initial inmate population of 240 inmates expected in February of 2012, with the remainder following late in the first quarter or early second quarter of 2012.
CCA currently manages approximately 650 male inmates from the state of Oklahoma at the Cimarron facility. Following the ramp-up of the new inmates from Puerto Rico, the population at the Cimarron facility is expected to be approximately 1,100 inmates.
Damon Hininger, president and CEO, stated, "We are delighted to once again include Puerto Rico as one of our government partners. We value the trust Puerto Rico has placed in us and will work closely with our partner to ensure a smooth transition. Additionally, we are pleased this contract will improve utilization at the Cimarron Correctional Facility and reduce our inventory of available capacity."
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 67 facilities, including 46 company-owned facilities, with a total design capacity of approximately 92,000 beds in 20 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.
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) the outcome of California's realignment program and its utilization of out of state private correctional capacity; 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.