Corrections Corp. (CXW) Issues Positive Update on Recent Customer Interactions

August 29, 2016 8:07 AM EDT

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On August 19, 2016, Corrections Corporation of America (NYSE: CXW) issued a press release responding to the Federal Bureau of Prisons' ("BOP") decision to amend the Criminal Alien Requirement XVI ("CAR 16") solicitation and to reduce future reliance on privately operated prison facilities based on recommendations from the Department of Justice. Since then, several customers have made public statements supporting their continued use of the private sector for correctional space and services. We also expect other government partners to further study their utilization of the private prison sector.

"In addition to an internal quality service team that performs extensive operational audit procedures, our correctional and detention facilities and services are subject to hundreds of government audits each year to help ensure compliance with our contracts covering all aspects of our operations. We welcome additional interactions and assessments of our services, and believe cooperation with our government partners is paramount to a successful operation," said Damon Hininger, CCA's chief executive officer. "We look forward to validating the value proposition we provide."

CCA remains focused on providing a valuable public service to its government partners serving over 65,000 inmates, detainees, and residents in 85 facilities pursuant to over 100 contracts. The Company will also remain focused on diversifying its value proposition for its many government partners by developing and delivering mission-critical secure and non-secure facilities, residential reentry options and innovative, real estate-only solutions that provide an attractive avenue for creating long-term shareholder value.

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