HOUSTON, May 31, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) announced today that the Central Falls Detention Facility Corporation has notified the company of its intent to transition the management contract for the Donald W. Wyatt Detention Center to another provider following the conclusion of the current management agreement at the end of July, 2007. Revenues (excluding direct reimbursements) earned in 2006 under this contract were approximately $9.2 million.
Management intends to discuss any changes to 2007 guidance as a result of this contract transition at the same time guidance is updated to reflect the company's recently-announced contract award from the Arizona Department of Corrections.
About Cornell Companies
Cornell Companies, Inc. 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. The Company (www.cornellcompanies.com) has 78 facilities in 16 states and the District of Columbia with a total service capacity of 18,247.
The Cornell Companies, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1468
Statements regarding the transition of a contract for the Donald W. Wyatt Detention Center, timing of transition 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 successful transition of the facility to a new operator, actions by third parties, and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission, which are available free of charge on the SEC's website at http://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 those indicated.