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CCA to Modify Contract With California Reducing Total Population
NASHVILLE, TN, Jun 29, 2012 (MARKETWIRE via COMTEX) -- CCA (Corrections Corporation of America) CXW+1.83% , the nation's largest partnership corrections provider to government agencies, announced today that it has agreed to modify its existing contract with the California Department of Corrections and Rehabilitation (CDCR) to reduce the total number of inmates CCA houses for California from up to 9,588 to an average daily population of 9,038 for the upcoming fiscal year ending June 30, 2013. CCA currently houses approximately 9,200 inmates from the state of California.
As a result, CCA expects to begin ramping down the California out-of-state population to align with the CDCR's new budgeted level beginning in July 2012. The reduction is expected to be completed by October 1, 2012. The contractual 90% occupancy guarantee will be adjusted to reflect the lower contract capacity. All other terms of the contract remain unchanged. The full-year impact of the contract modification on earnings per share is estimated to be approximately $0.04. However, at the present time, we are not revising our 2012 guidance, but will consider this and other factors when we provide updated guidance as part of our second quarter earnings release in August.
About CCA CCA is the nation's largest owner and operator of partnership correction and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 67 facilities, including 47 company-owned facilities, with a total design capacity of approximately 92,000 beds in 20 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide inmates health care (including medical, dental and psychiatric services), food services and work and recreational programs.