Cornell Companies, Inc. Announces Receipt of Arizona Notification Not to Renew Contract at Great Plains Correctional Facility
07 Agosto 2010 - 2:22AM
Cornell Companies, Inc. (NYSE:CRN) ("Cornell") announced today that
it has received notification from the Arizona Department of
Corrections of its election not to renew its contract at Cornell's
2,048 bed Great Plains Correctional Facility in Hinton, Oklahoma,
which is scheduled to expire on September 12, 2010. The
Company will be working with Arizona in the coming days to
determine the schedule for the transfer of inmates, which the
Company expects to complete in 2010. As a result of this
notification, Cornell intends to continue marketing the facility to
other customers.
Cornell's previous 2010 guidance assumed that the Arizona DOC
would maintain its use of the Great Plains facility at its present
level through the end of the year. In May 2010, Cornell
reported that the ultimate resolution of Arizona's usage of the
facility would likely depend on the timing of Arizona's budget
process and may not occur until the third quarter of 2010. In light
of the contract termination, Cornell is withdrawing its prior
annual financial guidance.
James E. Hyman, Cornell's Chairman, President, and Chief
Executive Officer, said, "The loss of the Great Plains contract
will have a negative impact on our near-term financial
results. As a result, we are withdrawing our prior annual
financial guidance. In light of our proposed merger with The
GEO Group ("GEO"), we have decided not to issue updated financial
guidance at this time. However, GEO has previously stated that it
believes the merger will produce an accretive transaction in 2011,
which included an assumption that Arizona would withdraw their
inmates from Great Plains during 2010."
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, 2010, the Company had 68 facilities
in 15 states and the District of Columbia and a total service
capacity of 21,392.
The Cornell Companies, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=1468
Forward-Looking Statements
This press release contains "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including but not limited to statements regarding Arizona's
schedule for the transfer of the inmates out of the Great Plains
facility, as well as any other statements that are not historical
facts, These statements are based on current expectations of future
events. If underlying assumptions prove inaccurate or unknown
risks or uncertainties materialize, actual results could vary
materially from Cornell's expectations and projections. Risks
and uncertainties include, among other things, the uncertainties
associated with, general economic and market conditions, actions by
government agencies and other third parties, and other risks and
uncertainties detailed in the Company's most recent Form 10-K, the
definitive Proxy Statement on Schedule 14A filed by Cornell with
the SEC on July 15, 2010 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.
Important Additional Information About the
Transaction
This press release may be deemed to be solicitation material in
respect of the proposed merger between GEO and Cornell. The
proposed transaction will be submitted to the respective
stockholders of GEO and Cornell for their consideration. In
connection with the proposed transaction, GEO has filed with the
Securities and Exchange Commission (the "SEC") a registration
statement on Form S-4, as amended, that includes a definitive
joint proxy statement of GEO and Cornell and that also constitutes
a prospectus of GEO. The respective stockholders of the companies
are urged to read the definitive Joint Proxy Statement/Prospectus
and any other relevant documents filed with the SEC, as well as any
amendments or supplements to those documents, because they will
contain important information. You may obtain a free copy of the
definitive Joint Proxy Statement/Prospectus, as well as other
filings containing information about the Companies at the SEC's
Internet site (http://www.sec.gov). Copies of the definitive Joint
Proxy Statement/Prospectus and the SEC filings that are
incorporated by reference in the Joint Proxy Statement/Prospectus
can be obtained, free of charge, by directing a request to Pablo E.
Paez, Director, Corporate Relations, (561) 999-7306,
ppaez@geogroup.com, One Park Place, Suite 700, 621 Northwest
53rd Street, Boca Raton, Florida.
Participants in the Solicitation
GEO, Cornell and their respective directors and executive
officers and other persons may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information regarding GEO's directors and executive officers is
available in its Annual Report on Form 10-K for the year ended
January 3, 2010, which was filed with the SEC on
February 22, 2010, and its proxy statement for its 2010 annual
meeting of stockholders, which was filed with the SEC on
March 24, 2010, and information regarding Cornell's directors
and executive officers is available in Cornell's Annual Report on
Form 10-K, for the year ended December 31, 2009, which
was filed with the SEC on February 26, 2010 and its
Form 10-K/A, which was filed with the SEC on April 30,
2010. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, are contained in the
definitive Joint Proxy Statement/Prospectus and other relevant
materials filed with the SEC. You may obtain free copies of these
documents as described in the preceding paragraph.
CONTACT: Cornell Companies, Inc.
Charles Siegel, Vice President, Public Policy
(713) 623-0790
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