CoreCivic Expands Operations with New Contract
CoreCivic, Inc. (NYSE: CXW) has exciting news for stakeholders and the public as it announces a significant new contract under an Intergovernmental Services Agreement with the Oklahoma Department of Corrections and U.S. Immigration and Customs Enforcement. This agreement will allow CoreCivic to resume operations at the 2,160-bed Diamondback Correctional Facility, a facility that has remained unused since 2010.
A New Chapter for Diamondback Correctional Facility
The newly awarded contract is set to commence on September 30, 2025, with a term of five years that includes the potential for extensions through mutual agreement. The financial framework includes a fixed monthly payment along with a per diem payment that varies based on the number of detainees. Once fully operational, the facility is expected to generate an impressive annual revenue of around $100 million, reflecting CoreCivic's efforts in enhancing infrastructure in collaboration with government partners.
Leadership Vision and Investment
Damon T. Hininger, CoreCivic's Chief Executive Officer, expressed enthusiasm about this new partnership, stating, "We are excited to strengthen our relationship with OKDOC by providing ICE with essential infrastructure capacity at our Diamondback Correctional Facility. Our proactive investments ensure a smooth reactivation of the facility, responding to the needs outlined by ICE, including a planned investment of an additional $13 million in renovations over the upcoming quarters." This statement emphasizes the company's commitment to not only meeting the immediate needs of its partners but also investing in the future.
Strategic Growth Through Reactivation
Patrick D. Swindle, the President and Chief Operating Officer of CoreCivic, added further context about the company's ambitious growth trajectory. He noted that along with this contract, CoreCivic has signed new agreements that cover a total of 6,353 beds across four facilities. This widespread reactivation effort is expected to generate around $325 million in annual revenue once all facilities are fully operational, marking a pivotal moment for CoreCivic as it continues to grow its footprint in the corrections industry.
The Role of CoreCivic
CoreCivic stands out as a government-solutions provider that manages not only correctional facilities but also residential and non-residential alternatives to incarceration. The company's innovative approaches address pressing issues such as recidivism, showcasing their commitment to creating safer communities. With over 40 years in the industry, CoreCivic has established itself as a leading partner to government entities, driven by a mission to enhance the public good through effective management of correctional operations.
Contact Information for Further Inquiries
For investors and media inquiries about the contract and operations at Diamondback Facility, CoreCivic offers direct contacts for communication:
Investors: Jeb Bachmann, Managing Director, Investor Relations - (615) 263-3024
Media: Steve Owen, Vice President, Communications - (615) 263-3107
Frequently Asked Questions
What is the significance of the new contract for CoreCivic?
The contract allows CoreCivic to reactivate the Diamondback Correctional Facility, significantly enhancing its operational capacity and revenue potential.
When is the new contract set to start?
The contract will commence on September 30, 2025, and is designed for a five-year term with possible extensions.
How much revenue is expected from the Diamondback facility?
Once fully operational, the facility is projected to generate approximately $100 million in annual revenue.
What investments is CoreCivic making for the facility?
CoreCivic plans to invest an additional $13 million for necessary renovations to prepare for the facility's reactivation to meet ICE requirements.
Who can be contacted for more information?
For investor relations, Jeb Bachmann is the primary contact, and for media inquiries, Steve Owen is available. Both can be reached at the provided phone numbers.
