CoreCivic Receives Lease Termination Notice for the North Fork Correctional Facility from the State of Oklahoma
April 25 2023 - 8:00AM
CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the
Company) announced today it received notice from the Oklahoma
Department of Corrections (ODC) of its intent to terminate the
lease agreement for the company-owned, 2,400-bed North Fork
Correctional Facility (NFCF) upon the lease expiration on June 30,
2023.
The ODC was facing the impact of staffing
challenges at the NFCF that limited the facility's utilization and
were exacerbated by the difficult employment market since the
beginning of the COVID-19 pandemic. The Company was also aware that
since commencing the lease of the NFCF in 2016, other privately
owned correctional capacity became available to the state of
Oklahoma and impacted the competitive landscape for renewal of the
Company's lease agreement. Rental revenue generated from the ODC at
the NFCF for year ended December 31, 2022, was $12.2 million and is
reported in the CoreCivic Properties business segment.
The Company is also actively renegotiating the
terms of its contract with the state of Oklahoma at the company
owned-and-operated 1,670-bed Davis Correctional Facility, which is
also set to expire on June 30, 2023. The terms for a contract
extension were being negotiated along with the lease agreement for
the NFCF, and the Company will only renew the contract or enter
into a similar lease agreement with the state of Oklahoma if the
arrangement produces a satisfactory return on a stand-alone basis.
The Company can provide no assurance that it will be successful in
entering into an agreement with the state of Oklahoma for the
continued use of the Davis Correctional Facility.
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 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. CoreCivic is the
nation’s largest owner of partnership correctional, detention and
residential reentry facilities, and one of the largest prison
operators in the United States. CoreCivic has been a flexible and
dependable partner for government for 40 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. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to CoreCivic's 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, as amended. 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 impact
on the Company's financial guidance resulting from the non-renewal
of the lease agreement for the North Fork Correctional Facility and
the probability of, and potential returns on, the renewal of the
contract to manage or lease the Company's Davis Correctional
Facility. The Company expects to update its financial guidance in
connection with is quarterly earnings announcement currently
scheduled for May 3, 2023.
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) 263-3024Financial Media: David Gutierrez, Dresner Corporate
Services - (312) 780-7204 |
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