CoreCivic Expects the Contract with the United States Marshals Service at the Northeast Ohio Correctional Center Will Not be ...
February 25 2021 - 4:15PM
CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today that, effective March 1, 2021, it has entered into
a 90-day contract extension with the United States Marshals Service
("USMS") at the Company's 2,016-bed Northeast Ohio Correctional
Center. The USMS has notified the Company that it does not
anticipate extending the contract following the 90-day extension.
While the Company is not currently aware of
alternative locations where the USMS can house the approximately
800 federal detainees currently located at the Northeast Ohio
facility, President Biden recently issued an executive order
directing the Department of Justice not to renew contracts with
privately operated criminal detention facilities.
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. We provide a broad
range of solutions to government partners that serve the public
good through high-quality corrections and detention management, a
network of residential and non-residential alternatives to
incarceration to help address America’s recidivism crisis, and
government real estate solutions. We are the nation’s largest owner
of partnership correctional, detention and residential reentry
facilities, and believe we are the largest private owner of
real estate used by U.S. government agencies. We have been a
flexible and dependable partner for government for more than 35
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 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) changes in government policy (including
the Department of Justice not renewing contracts with privately
operated criminal detention facilities as a result of the executive
order issued by President Biden on January 26, 2021), 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 (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); (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) the location and duration of shelter in place
orders and other 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. 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: PublicAffairs@CoreCivic.com |
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