CoreCivic Enters Into New Management Contract at the Tallahatchie County Correctional Facility for the U.S. Marshals Service
June 14 2018 - 1:52PM
CoreCivic, Inc. (NYSE:CXW) (the Company) announced
today that it has entered into a new contract under an
Intergovernmental Agreement between the Tallahatchie County
Correctional Authority, Tutwiler, Mississippi and the U.S. Marshals
Service at CoreCivic's 2,672-bed Tallahatchie County Correctional
Facility in Tutwiler, Mississippi. The U.S. Marshals Service
currently expects to house up to 1,350 prisoners under the new
contract and may house additional prisoner populations at the
facility, subject to availability.
The new management contract commenced on June 14,
2018, and has an initial term expiring June 30, 2020, with
unlimited two-year extension options thereafter upon mutual
agreement. Taking into consideration an initial ramp period,
we currently expect this new contract to contribute $0.02 to $0.04
of Funds From Operations per share in 2018, with a full year impact
in 2019 of $0.06 to $0.10 per share.
"The U.S. Marshals Service has experienced an
increasing need for detention capacity as its average daily
prisoner population has increased throughout the past year," said
Damon Hininger, CoreCivic's President and Chief Executive
Officer. "Our Tallahatchie County Correctional Facility has
the available capacity to accept detainee populations quickly due
to our existing staff of experienced, well-trained corrections
professionals. We are pleased to provide the Marshals with
immediate capacity to assist the agency as it carries out its
critical public safety mission."
Mr. Hininger continued, "Also notable about this
agreement is the progress we have made in entering into new
contracts to replace capacity vacated by the state of California
since its peak utilization in 2011. California, which has
been a valuable partner to the Company, has vacated approximately
7,000 beds in four company-owned facilities in the last six
years. Today's contract announcement highlights the
attractiveness of our services and modern real estate portfolio as
we have now secured new contracts with state and federal partners
at all four of the facilities that have been vacated by
California."
About CoreCivic
The Company is a diversified government solutions company with
the scale and experience needed to solve tough government
challenges in flexible cost-effective ways. We provide a broad
range of solutions to government partners that serve the public
good through corrections and detention management, 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. We also believe we are the largest
private owner of real estate used by government agencies. 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/.
Forward-Looking Statements
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, but not limited to, the impact governmental budgets can
have on our contract renewals and renegotiations, per diem rates,
and occupancy; (ii) fluctuations in our operating results
because of, among other things, changes in occupancy levels,
competition, contract renegotiations or terminations, increases in
costs 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 because of reasons including, but not limited
to, sufficient governmental appropriations, contract compliance,
negative publicity, and effects 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 new facilities and the commencement of new
management contracts, as well as our ability to utilize current
available beds; (v) changes in government policy regarding the
utilization of the private sector for corrections, detention, and
residential reentry capacity and our services; (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 Immigration & 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 identify and consummate future acquisitions and our
ability to successfully integrate the operations of completed
acquisitions and realize projected returns resulting therefrom;
(viii) increases in costs to develop or expand correctional,
detention, and residential reentry 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, cost inflation, and
material shortages, resulting in increased construction costs; (ix)
our ability to meet and maintain qualification for taxation as a
REIT; and (x) the availability of debt and equity financing on
terms that are favorable to us. 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.
CoreCivic 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 |
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