NASHVILLE, TN, Nov. 2, 2009 (Marketwire) --
NASHVILLE, TN -- (Marketwire) -- 11/02/09 -- Corrections Corporation of America (NYSE: CXW) ("CCA"), the nation's largest provider of corrections management services to government agencies, announced today that it has amended its agreement with the California Department of Corrections and Rehabilitation ("CDCR") to allow for the housing of 2,336 additional offenders from the state of California. Under the amended agreement California will have the ability to house additional inmates at CCA's North Fork Correctional Facility in Oklahoma and its Red Rock Correctional Center in Arizona. The 2,336 additional beds provide the CDCR the ability to house up to 10,468 offenders in five CCA owned facilities located in the states of Arizona, Mississippi and Oklahoma. CCA currently houses approximately 7,900 offenders from the state of California.
The terms of the amendment are similar to the previous agreement, including the 90% guarantee which will be phased in over the ramp-up. CCA expects to begin receiving additional inmates pursuant to the amendment during the first quarter of 2010, with a gradual ramp-up estimated to be completed during the first quarter of 2011. CCA will provide fourth quarter earnings guidance when it releases third quarter financial results on November 4, 2009.
"We are very pleased with the California Department of Corrections and Rehabilitation decision to entrust additional California offenders to our care," said Damon Hininger, President and Chief Executive Officer. "We believe our inventory of beds and breadth of experience in dealing with the intricacies of this contract have been significant factors in our ability to continue to expand our partnership with the CDCR."
About CCA
CCA 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. We currently operate 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 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.
