CoreCivic Enters Into New Contract with Mahoning County, Ohio at the Northeast Ohio Correctional Center
May 28 2021 - 5:30PM
CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today that it has entered into a new three-year contract
with Mahoning County, Ohio to utilize up to 990 beds at the
Company's 2,016-bed Northeast Ohio Correctional Center. Mahoning
County is responsible for County inmates and federal detainees, and
the County expects to use the Northeast Ohio facility to address
its population needs.
The new contract is scheduled to commence on May
31, 2021. In addition to providing much needed capacity for
Mahoning County, the Company also currently cares for approximately
800 inmates under a management contract with the State of Ohio at
the Northeast Ohio Correctional Center. The Company will continue
to operate the facility pursuant to both contracts.
About CoreCivic
CoreCivic is a diversified government solutions
company with the scale and experience needed to solve tough
government challenges in flexible, cost-effective ways. CoreCivic
provides a broad range of solutions to government partners that
serve the public good through corrections and detention management,
a network of residential reentry centers to help address America’s
recidivism crisis, and government real estate solutions. CoreCivic
is the nation’s largest owner of partnership correctional,
detention and residential reentry facilities, and believes it is
the largest private owner of real estate used by government
agencies in the U.S. CoreCivic has been a flexible and dependable
partner for government for more than 35 years. CoreCivic’s
employees are driven by a deep sense of service, high standards of
professionalism and a responsibility to help government better the
public good.
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) changes in government policy (including
the United States Department of Justice, or DOJ, not renewing
contracts as a result of President Biden's Executive Order on
Reforming Our Incarceration System to Eliminate the Use of
Privately Operated Criminal Detention Facilities) (two agencies of
the DOJ, the United States Federal Bureau of Prisons and the United
States Marshals Service, utilize our services), legislation and
regulations that affect utilization of the private sector for
corrections, detention, and residential reentry services, in
general, or our business, in particular, including, but not limited
to, the continued utilization of our correctional and detention
facilities by the federal government, and the impact of any changes
to immigration reform and sentencing laws (we do 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); (ii) 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;
(iii) changes in the privatization of the corrections and
detention industry, the acceptance of our services, the timing of
the opening of new facilities and the commencement of new
management contracts (including the extent and pace at which new
contracts are utilized), as well as our ability to utilize
available beds; (iv) 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; (v) 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; (vi) the duration of the federal government’s
denial of entry at the United States southern border to
asylum-seekers and anyone crossing the southern border without
proper documentation or authority in an effort to contain the
spread of COVID-19; (vii) government and staff
responses to staff or residents testing positive
for COVID-19 within public and private correctional,
detention and reentry facilities, including the facilities we
operate; (viii) restrictions associated with COVID-19 that disrupt
the criminal justice system, along with government policies on
prosecutions and newly ordered legal restrictions that affect the
number of people placed in correctional, detention, and reentry
facilities; (ix) whether revoking our REIT election, effective
January 1, 2021, and our revised capital allocation strategy can be
implemented in a cost effective manner that provides the expected
benefits, including facilitating our planned debt reduction
initiative and planned return of capital to shareholders; (x) our
ability to identify and consummate the sale of additional non-core
assets at attractive prices; (xi) our ability to successfully
identify and consummate future development and acquisition
opportunities and our ability to successfully integrate the
operations of our completed acquisitions and realize projected
returns resulting therefrom; (xii) increases in costs to develop or
expand real estate properties 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 the
effects of, and delays caused by, COVID-19, weather, the
availability of labor and materials, labor conditions, delays in
obtaining legal approvals, unforeseen engineering, archeological or
environmental problems, and cost inflation, resulting in increased
construction costs; (xiii) our ability to identify and initiate
service opportunities that were unavailable under our former REIT
structure; (xiv) our ability to have met and maintained
qualification for taxation as a REIT for the years we elected REIT
status; and (xv) the availability of debt and equity financing on
terms that are favorable to us, or at all, including financing we
are pursuing on behalf of the state of Alabama for the construction
of two correctional facilities. 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) 263-3024Media: Steve
Owen – Vice President, Communications - (615) 263-3107 |
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