January 13, 2010
CCA confirms plans to house CA state inmates at California City private prison
The Federal Bureau of Prisons has not renewed its contract with Corrections Corp. of America to manage more than 2,000 inmates now housed in California under the Criminal Alien Requirement program.
The contract, which has been awarded to Cornell Cos., will take about $22 million annually – about 12 cents per diluted share – off CCA's bottom line, estimated Avondale Partners analyst Kevin Campbell. Nashville-based CCA – which did get a renewed BOP deal to manage 1,200 inmates in New Mexico – had been expected to earn $1.40 per share in 2010.
In a statement, CCA President and CEO Damon Hininger said the company believes the BOP's move is based primarily on "escalating federal wage determination costs in California, and does not reflect the quality of operations our company and staff have provided to the BOP…"
LINK - NashvillePost.com
