CCA Awarded Contract for Residential Reentry Services by the California Department of Corrections and Rehabilitation
July 18 2016 - 4:30PM
CCA (NYSE:CXW) (the “Company” or “Corrections
Corporation of America”), America's largest owner of partnership
correctional, detention, and reentry facilities, announced today
that it received an award from the California Department of
Corrections and Rehabilitation (CDCR) to house up to 120 residents
as part of The Male Community Reentry Program (MCRP) at CCA's
120-bed CAI-Boston Avenue residential reentry facility in San
Diego, California.
The MCRP was designed by the CDCR to provide a range of
community-based, rehabilitative services that assist with substance
use disorders, mental health care, medical care, employment,
education, housing, family reunification and social support to help
participants successfully reenter the community and reduce
recidivism.
The new contract contains an initial term extending to June 30,
2018, with three one-year renewal options, and is scheduled to
commence on August 1, 2016. The new contract is expected to
generate approximately $4.0 million of annualized revenue.
In April 2016, CCA was awarded a contract to provide residential
reentry services by the Federal Bureau of Prisons (BOP), which was
a rebid of existing contracts at both CCA's CAI facilities,
CAI-Boston Avenue and CAI-Ocean View. During the contractual
rebid process, CCA identified an opportunity to consolidate BOP
resident populations at both facilities into the 483-bed CAI-Ocean
View facility in order to make available the CAI-Boston Avenue
facility for other potential partners and more efficiently utilize
available capacity.
"We continue to focus our efforts on delivering innovative and
cost effective solutions to government partners, particularly in
our rapidly growing portfolio of residential reentry facilities and
services, and are excited to expand our partnership with the state
of California to include residential reentry services," said Damon
Hininger, CCA's President and Chief Executive Officer.
About CCA
CCA, a publicly traded real estate investment trust (REIT), 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. We own or control 74
correctional, detention and reentry facilities, with a design
capacity of approximately 75,000 beds, and manage 11 additional
facilities owned by our government partners with a total design
capacity of approximately 14,000 beds, in 20 states and the
District of Columbia. CCA specializes in owning, operating and
managing prisons and other correctional facilities and providing
residential, community reentry and prisoner transportation services
for governmental agencies. In addition to providing
fundamental residential services, our facilities offer a variety of
rehabilitation and educational programs, including basic education,
faith-based services, life skills and employment training and
substance abuse treatment. These services are intended to
help reduce recidivism and to prepare offenders for their
successful reentry into society upon their release.
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 as defined within the meaning of 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. In particular, the expected revenue to be
generated under the new contract is subject to fluctuations in
occupancy and anticipated demand for our services, and is therefore
uncertain. A list of 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.
CCA 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) 263-3024
Media: Steve Owen – Managing Director, Communications - (615) 263-3107
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