Corrections Corporation of America Increases Total Capacity Under Contract With California Department of Corrections and Rehabilitation:
"NASHVILLE, TN -- 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."
"NASHVILLE, TN -- 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."