Correctional Services Corporation/Texas Department of Criminal Justice to House up to 250 Inmates at Jefferson County Detention
June 21 2005 - 8:00AM
Business Wire
Correctional Services Corporation (Nasdaq:CSCQ) today announced the
signing of an inter-governmental agreement between Jefferson County
Texas and the Texas Department of Criminal Justice (TDCJ) to house
and provide services at the Jefferson County Detention Center for
up to 250 TDCJ inmates for a two (2) year period commencing July 1,
2005. Correctional Services Corp. has been managing the Jefferson
County Detention Center for the County since June 1998, and
previously provided services at the Jefferson County facility to
TDCJ. The Company expects TDCJ inmates to begin arriving the first
week of July with the final transfer occurring in early August. The
facility is expected to be at full capacity in August, as it will
continue to house Immigration & Customs Enforcement &
United States Marshal Services detainees in addition to the TDCJ
inmates. In the event the 250 TDCJ inmates are transferred to the
facility, they are expected to generate $3.6 million in additional
annual revenue for the Company. Commenting on the new contract,
James F. Slattery, President and CEO, stated, "TDCJ has been
preparing for some time to renew their placement of inmates in
county facilities as part of their plan to manage their growing
inmate population, which now exceeds the capacity of the state
system. We are pleased TDCJ has chosen the Jefferson County
facility as their first placement alternative." Slattery further
stated, "We have a very strong track record of providing quality
services in Jefferson County to various federal, state and local
agencies and look forward to renewing our relationship with TDCJ
under this new contract." Through its Youth Services International
subsidiary, the Company is the nation's leading private provider of
juvenile programs for adjudicated youths with 17 facilities and
1,300 juveniles in its care. In addition, the Company is a leading
developer and operator of adult correctional facilities, operating
14 facilities with approximately 5,500 beds. On a combined basis,
the Company provides services in 12 states, representing
approximately 6,800 beds including aftercare services. Safe Harbor
Statement under the Private Securities Litigation Reform Act of
1995 Certain statements contained in this press release are not
historical but are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended. These
include statements regarding the expectations, beliefs, intentions
or strategies regarding the future. The Company intends that all
forward-looking statements be subject to the safe-harbor provisions
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company's views as of the
date they are made with respect to future events and financial
performance, but are subject to many uncertainties and risks which
could cause the actual results of the Company to differ materially
from any future results expressed or implied by such
forward-looking statements. Examples of such uncertainties and
risks include, but are not limited to: fluctuations in occupancy
levels and labor costs; the ability to secure both new contracts
and the renewal of existing contracts; the possibility of
unforeseen costs relating to facility closings, the ability to
achieve profitability and public resistance to privatization;
ability to obtain construction financing; and ability to complete
new construction projects within budgeted amounts. Additional risk
factors include those discussed in reports filed by the Company
from time to time on Forms 10-K, 10-Q and 8-K. The Company does not
undertake any obligation to update any forward-looking statements.
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