CoreCivic Enters Into New Management Contract with the Commonwealth of Kentucky at the Lee Adjustment Center
November 16 2017 - 4:15PM
CoreCivic, Inc. (NYSE:CXW) (the “Company")
announced today that it has entered into a new contract with the
Commonwealth of Kentucky Department of Corrections to house medium
and close-security offenders at CoreCivic's 816-bed Lee Adjustment
Center in Beattyville, Kentucky.
The new management contract commences on November
19, 2017, and has an initial term expiring June 30, 2019, with two
additional one-year extension options. CoreCivic expects to
begin receiving offender populations under the new contract at the
Lee Adjustment Center toward the end of the first quarter of 2018,
following a 120-day period to staff and prepare the facility to
care for the offender population. We expect to incur
operating losses at this facility of $0.03 to $0.04 per share for
staffing and other start-up related expenses, most of which will be
incurred during the first quarter of 2018, prior to stabilized
occupancy currently expected to occur during the second quarter of
2018. Upon reaching normalized occupancy the new contract is
expected to generate approximately $15.0 million to $17.0 million
of annual revenue.
"We look forward to once again providing high
quality, cost effective correctional services to the Kentucky
Department of Corrections at our Lee Adjustment Center," said Damon
Hininger, CoreCivic's President and Chief Executive Officer.
"Demonstrating the recently expanded and high quality services we
are providing in the neighboring states of Tennessee and Ohio
allowed us to provide a compelling solution to the State of
Kentucky. The individuals entrusted in our care will have
access to educational and rehabilitative programs and we are proud
of the trust placed in CoreCivic to provide these critical services
that improve lives and reduce recidivism."
About CoreCivic
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/.
Contact: |
Investors: Cameron
Hopewell - Managing Director, Investor Relations - (615)
263-3024 |
|
Media: Steve Owen -
Managing Director, Communications - (615) 263-3107 |
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