Saturday, August 8, 2009

CCA Loses Contract With Alaska

CCA's bad week got even worse. This can be found here.

Corrections Corporation of America Announces Loss of Contract with the State of Alaska

Nashville, Tenn., August 7, 2009 - Corrections Corporation of America (NYSE: CXW) (CCA), the nation's largest provider of corrections management services to government agencies, announced today that it has been notified by the Alaska Department of Corrections that it was not selected in Alaska's competitive solicitation to house up to 1,000 inmates from the state of Alaska. CCA currently houses approximately 765 Alaskan inmates at its 1,596-bed Red Rock Correctional Center in Arizona. CCA currently expects that Alaska will begin transferring their inmate population out of the Red Rock facility beginning in December of 2009. The loss of these inmates does not affect CCA's recently announced 2009 earnings per share guidance.

CCA will begin marketing the available beds at the Red Rock facility to other state and federal customers. CCA also currently houses 650 inmates from the states of California, Washington and Hawaii at the Red Rock facility.

"We are very disappointed to have not been selected by the Alaska Department of Corrections, a long standing customer of ours. We will work closely with the Alaska Department of Corrections to ensure a smooth transition out of the Red Rock facility," said Damon Hininger, President and Chief Operating Officer. "Although at the present moment, we do not have another customer lined up to fill the vacant beds, these beds are located in a market that is very attractive to a variety of state and federal customers. CCA currently owns 12,180 beds in the state of Arizona, which are fully occupied, including the 765 beds currently utilized by the state of Alaska."