HOUSTON, Aug. 8, 2009 (GLOBE NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) announced today that it has received from the State of Alaska, Department of Corrections ("Alaska DOC"), a Notice of Intent to Award a contract to house 1,000 state prisoners at its Hudson Correctional Facility (the "Facility") located in Hudson, Colorado. The Facility, which will have a service capacity of 1,250 beds, is presently under construction and is expected to be completed in the fourth quarter of 2009, at which point the Company anticipates initiating inmate ramp.
Under the existing terms of the Notice of Intent, the Alaska DOC will house 1,000 adult male inmates at the Facility, with an agreed-upon 800-bed guarantee. Upon completion of the inmate ramp and once full occupancy has been achieved, the contract is expected to generate nearly $22 million in annualized operating revenues.
The Notice of Intent to Award is subject to the expiration of the applicable protest period and final execution of a written contract, which is expected to occur in a few weeks. At that time, the Company anticipates that it will be able to confirm expected activation dates and to discuss the impact of startup expenses at the Facility in the third and fourth quarters of 2009.
James E. Hyman, Cornell's chairman, president and chief executive officer, said, "Our company has served Alaska for over 24 years. We are honored that the Department of Corrections has chosen to partner with Cornell at our new Hudson, Colorado facility to house 1,000 of their inmates for the next 3 years. This gives us another opportunity to demonstrate our commitment to safety, security and service."
Forward-Looking Statements
Statements regarding the expected contract with the Alaska Department of Corrections, anticipated population and operating revenues at the Facility, completion of construction at the Facility, anticipated financial impacts, as well as any other statements that are not historical facts, are forward-looking statements within the meaning of applicable securities laws that involve certain risks, uncertainties and assumptions. These include but are not limited to risks and uncertainties associated with general economic and market conditions, including the impact governmental budgets can have on our per diem rates and occupancy, Cornell's ability to perform according to its current expectations, changes in supply and demand, actions by government agencies and other third parties, access to capital and other risks and uncertainties detailed in the Company's most recent Form 10-K and other filings made by us from time to time with the Securities and Exchange Commission, which are available free of charge on the SEC's Web site at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from the statements made. All information set forth in this release is current as of the date of this release. Cornell undertakes no duty to update any statement in light of new information or future events.
About Cornell Companies
Cornell Companies, Inc. (http://www.cornellcompanies.com) is a leading private provider of corrections, treatment and educational services outsourced by federal, state and local governmental agencies. Cornell provides a diversified portfolio of services for adults and juveniles, including incarceration and detention, transition from incarceration, drug and alcohol treatment programs, behavioral rehabilitation and treatment, and grades 3-12 alternative education in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of public policy. At June 30, 2009, the Company had 70 facilities in 15 states and the District of Columbia and a total service capacity of 20,892.
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