CoreCivic Enters Into New Management Contract with the State of Vermont at the Tallahatchie County Correctional Facility
September 19 2018 - 9:28AM
CoreCivic, Inc. (NYSE: CXW) (the “Company")
announced today that it has entered into a new contract with the
Vermont Department of Corrections to house up to 350 of the State's
inmates at the Company’s 2,672-bed Tallahatchie County Correctional
Facility in Tutwiler, Mississippi.
The new management contract commences on October 1,
2018, and has an initial term of two years, with one additional
two-year extension option thereafter upon mutual agreement.
Based on our expectations of contract utilization, we currently
expect the new contract to generate approximately $6.5 million of
annual revenue.
“We are pleased to work closely with the Vermont
Department of Corrections once again,” said Damon Hininger,
CoreCivic's President and Chief Executive Officer. “We strive to
provide flexible solutions to our government partners and believe
the Tallahatchie County Correctional Facility is well suited to
meet the needs of Vermont's inmate populations.”
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
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, 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: |
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Investors:
Cameron Hopewell - Managing Director, Investor Relations - (615)
263-3024 |
|
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Media:
Steve Owen - Managing Director, Communications - (615)
263-3107 |
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