Wednesday, March 17, 2010

CCA Says "We Lost Another Contract"

Originally found here.

Mar 16, 2010 08:30 ET

CCA Announces Receipt of Previously Anticipated Arizona Notification Not to Renew Contract at Diamondback Correctional FacilityNASHVILLE, TN--(Marketwire - March 16, 2010) - CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that it has received notification from the Arizona Department of Corrections of its election not to renew its contract at CCA's 2,160-bed Diamondback Correctional Facility in Oklahoma, which is scheduled to expire on May 1, 2010. Arizona expects to begin transferring offenders from the Diamondback facility beginning in May 2010 and expects to complete the transfer in June 2010. As a result of this notification, CCA intends to idle the Diamondback facility shortly thereafter, but will continue marketing the facility to other customers.

In January, CCA reported that Arizona budget proposals would phase-out the out-of-state private prisons, and the risk that CCA could lose the opportunity to house offenders from Arizona at its Huerfano and Diamondback facilities during 2010. Later in January we announced that we received notification from Arizona of its election not to renew its contract at CCA's Huerfano facility and that we would idle the Huerfano facility in late March 2010. CCA's 2010 guidance, made at the time of its year-end earnings release, included the anticipated loss of the Arizona contract at the Diamondback facility.