CoreCivic Expands Montana Relationship With New Contract And Additional Bed Utilization
CoreCivic (NYSE: CXW) has secured a new management contract with Montana to house 240 additional inmates at its Tallahatchie County Correctional Facility in Mississippi during Q1 2025. The company will also receive 120 more Montana inmates at its Saguaro Correctional Facility in Arizona under an existing contract.
The new contract runs through December 31, 2026, with potential extensions up to seven years total. This expansion brings the total addition of Montana inmates in CoreCivic's out-of-state facilities to approximately 600 over roughly 18 months. CoreCivic also manages the 664-bed Crossroads Correctional Center in Montana.
The additional inmates will bring the Saguaro facility close to design capacity and improve bed utilization at Tallahatchie, where CoreCivic now manages contracts for eight customers, including recent additions from Wyoming, Harris County (Texas), and Hinds County (Mississippi).
CoreCivic (NYSE: CXW) ha ottenuto un nuovo contratto di gestione con il Montana per ospitare 240 detenuti aggiuntivi nella sua struttura correzionale di Tallahatchie County nel Mississippi durante il primo trimestre del 2025. L'azienda riceverà anche 120 detenuti del Montana nella sua struttura correttiva di Saguaro in Arizona sotto un contratto già esistente.
Il nuovo contratto rimarrà in vigore fino al 31 dicembre 2026, con possibili estensioni fino a un totale di sette anni. Questa espansione porta il numero totale di detenuti del Montana nelle strutture fuori stato di CoreCivic a circa 600 in circa 18 mesi. CoreCivic gestisce anche il Crossroads Correctional Center, che ha una capienza di 664 posti letto, in Montana.
Questi detenuti aggiuntivi porteranno la struttura di Saguaro vicino alla capacità di progetto e miglioreranno l'uso dei letti a Tallahatchie, dove CoreCivic gestisce attualmente contratti per otto clienti, inclusi recenti arrivi da Wyoming, contee di Harris (Texas) e Hinds (Mississippi).
CoreCivic (NYSE: CXW) ha obtenido un nuevo contrato de gestión con Montana para albergar a 240 prisioneros adicionales en su Instalación Correccional del Condado de Tallahatchie en Mississippi durante el primer trimestre de 2025. La compañía también recibirá a 120 prisioneros más de Montana en su Instalación Correccional de Saguaro en Arizona bajo un contrato existente.
El nuevo contrato se extenderá hasta el 31 de diciembre de 2026, con posibles extensiones de hasta un total de siete años. Esta expansión lleva el total de prisioneros de Montana en las instalaciones fuera del estado de CoreCivic a aproximadamente 600 en unos 18 meses. CoreCivic también gestiona el Centro Correccional Crossroads, con una capacidad de 664 camas, en Montana.
Los prisioneros adicionales acercarán la capacidad de diseño de la instalación de Saguaro y mejorarán la utilización de camas en Tallahatchie, donde CoreCivic actualmente gestiona contratos para ocho clientes, incluidos recientes adiciones de Wyoming, el Condado de Harris (Texas) y el Condado de Hinds (Mississippi).
CoreCivic (NYSE: CXW)가 2025년 1분기 중 미시시피의 Tallahatchie County Correctional Facility에서 240명의 추가 수감자를 수용하기 위해 몬태나와 새로운 관리 계약을 체결했습니다. 이 회사는 기존 계약 하에 아리조나의 Saguaro Correctional Facility에서 몬태나의 수감자 120명도 수용합니다.
새로운 계약은 2026년 12월 31일까지 유효하며 최장 7년까지 연장이 가능합니다. 이번 확장으로 CoreCivic의 주외 시설에 수용된 몬태나 수감자 수가 약 600명에 달하게 됩니다. CoreCivic은 몬태나에 664개 침대를 갖춘 Crossroads Correctional Center도 운영하고 있습니다.
추가 수감자들은 Saguaro 시설의 설계 용량에 가까워지게 하며, CoreCivic이 현재 와이오밍주, 해리스 카운티(텍사스), 핀즈 카운티(미시시피)에서 온 최근 추가 고객을 포함해 총 8명의 고객과 계약을 관리하는 Tallahatchie의 침대 활용도를 개선할 것입니다.
CoreCivic (NYSE: CXW) a obtenu un nouveau contrat de gestion avec le Montana pour accueillir 240 détenus supplémentaires dans son établissement correctionnel du comté de Tallahatchie dans le Mississippi au cours du premier trimestre 2025. L'entreprise recevra également 120 détenus supplémentaires du Montana dans son établissement correctionnel de Saguaro en Arizona dans le cadre d'un contrat existant.
Le nouveau contrat est en vigueur jusqu'au 31 décembre 2026, avec des extensions possibles allant jusqu'à un total de sept ans. Cette expansion portera le nombre total de détenus montanais dans les établissements hors État de CoreCivic à environ 600 sur une période d'environ 18 mois. CoreCivic gère également le Crossroads Correctional Center qui compte 664 lits dans le Montana.
Les détenus supplémentaires amèneront l'établissement de Saguaro près de sa capacité de conception et amélioreront l'utilisation des lits à Tallahatchie, où CoreCivic gère actuellement des contrats pour huit clients, y compris des ajouts récents du Wyoming, du comté de Harris (Texas) et du comté de Hinds (Mississippi).
CoreCivic (NYSE: CXW) hat einen neuen Managementvertrag mit Montana abgeschlossen, um 240 zusätzliche Insassen in seiner Tallahatchie County Correctional Facility in Mississippi im ersten Quartal 2025 unterzubringen. Die Firma wird auch 120 weitere Insassen aus Montana in ihrer Saguaro Correctional Facility in Arizona im Rahmen eines bestehenden Vertrages aufnehmen.
Der neue Vertrag läuft bis zum 31. Dezember 2026 und kann um bis zu sieben Jahre verlängert werden. Diese Erweiterung erhöht die Gesamtzahl der Insassen aus Montana in den Auslandsanlagen von CoreCivic auf etwa 600 über einen Zeitraum von ungefähr 18 Monaten. CoreCivic betreibt auch das 664-Betten-Crossroads Correctional Center in Montana.
Die zusätzlichen Insassen werden die Saguaro-Anlage nahezu an ihre geplante Kapazität bringen und die Bettenauslastung in Tallahatchie verbessern, wo CoreCivic derzeit Verträge für acht Kunden verwaltet, darunter kürzliche Ergänzungen aus Wyoming, dem Harris County (Texas) und dem Hinds County (Mississippi).
- New contract secured for 240 additional inmates in Mississippi facility
- 120 additional inmates added to Arizona facility under existing contract
- Contract includes potential extensions up to 7 years
- Improved facility utilization leading to better economic performance
- Expansion of customer base to eight clients at Tallahatchie facility
- None.
Insights
This contract expansion represents a meaningful operational win for CoreCivic, with substantial revenue and profitability implications. The addition of 360 inmates (240 at Tallahatchie and 120 at Saguaro) will drive higher facility utilization rates, which directly improves operating leverage and profit margins. The Saguaro facility will now operate near full capacity, while Tallahatchie's diversified eight-customer portfolio provides stable occupancy levels.
The contract structure is particularly favorable, featuring a base term through December 2026 with potential extensions up to seven years total. This provides stable, predictable cash flows and demonstrates Montana's long-term commitment. Based on typical per-diem rates in the sector, these 360 additional inmates could generate approximately
The expanded geographic range for housing Montana inmates across multiple facilities enhances CoreCivic's competitive positioning and creates operational flexibility. This multi-facility approach helps optimize capacity utilization across the company's portfolio while reducing concentration risk at any single location.
The strategic significance of this expansion lies in CoreCivic's demonstrated ability to efficiently manage multi-customer facilities while maintaining high service standards. The Tallahatchie facility's success in housing inmates from eight different jurisdictions showcases exceptional operational capabilities in managing diverse contract requirements and populations.
The near-capacity utilization at Saguaro and improved occupancy at Tallahatchie will drive substantial operational efficiencies. Fixed costs like facility maintenance, administrative overhead and basic staffing can now be distributed across a larger inmate population, improving per-unit economics. For simpler understanding - imagine a bus that costs the same to operate whether it's half-full or completely full; more passengers mean better profitability per seat.
The timing of inmate transfers in Q1 2025 allows for proper resource planning and smooth operational integration. The structured approach to capacity expansion demonstrates strong execution capabilities in CoreCivic's management team.
BRENTWOOD, Tenn., Jan. 16, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today it has been awarded a new management contract with the state of Montana to care for additional inmates outside the state of Montana, with 240 inmates anticipated to arrive at our 2,672-bed Tallahatchie County Correctional Facility in Tutwiler, Mississippi during the first quarter of 2025. During January 2025, CoreCivic also received an additional 120 Montana inmates at the Company's 1,896-bed Saguaro Correctional Facility in Eloy, Arizona, under an existing contract with the state of Montana.
The base term of the new management contract with the state of Montana runs through December 31, 2026. Upon mutual agreement, the contract provides extension options in two-year intervals, or in any interval that is advantageous to the State, so long as the contract and any renewals do not exceed a total of seven years. Notably, this contract increases the geographic range of CoreCivic facilities that can serve the state of Montana.
Damon Hininger, CoreCivic's Chief Executive Officer, commented, "Montana and CoreCivic enjoy a strong and long-standing partnership, as exhibited by this expansion of our relationship. Including those inmates anticipated to arrive at CoreCivic facilities this quarter, we will have added approximately 600 Montana inmates that CoreCivic will house in out-of-state facilities over a period of roughly a year and a half. In addition to those 600 inmates, CoreCivic also manages the company-owned 664-bed Crossroads Correctional Center in Shelby, Montana for the State pursuant to a separate management contract. CoreCivic takes pride in caring responsibly for those in our facilities, and we believe the expansion of relationships, such as with Montana, provides validation of the quality and value of our essential services."
Patrick Swindle, CoreCivic's President and Chief Operating Officer, added, "With these additional inmates, the total population at the Saguaro Correctional Facility will be close to the facility's design capacity. Similarly, the additional Montana population will improve our bed utilization at the Tallahatchie County Correctional Facility, where over the past year and a half we have also added populations from the state of Wyoming, Harris County (Texas), and Hinds County (Mississippi). Our business model has significant operating leverage, and facilities perform significantly better economically as utilization improves. Inclusive of this contract, we now manage contracts for eight customers at our Tallahatchie facility. We are proud of the flexibility and capability of our team to accommodate these diverse customer needs."
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest prison operators in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements concerning the relationship with and anticipated bed utilization by the state of Montana. These forward-looking statements may include such words as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Such forward-looking statements may be affected by risks and uncertainties in CoreCivic's business and market conditions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Important factors that could cause actual results to differ are described in the filings made from time to time by CoreCivic with the Securities and Exchange Commission ("SEC") and include the risk factors described in CoreCivic's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 20, 2024. Except as required by applicable law, CoreCivic undertakes no obligation to update forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.
| Contact: | Investors: Michael Grant - Managing Director, Investor Relations - (615) 263-6957 Media: Steve Owen – Vice President, Communications - (615) 263-3107 |
FAQ
What is the size of CoreCivic's new Montana contract for 2025?
How many total Montana inmates will CXW manage in out-of-state facilities?
What is the duration of CXW's new Montana contract?
How many customers does CXW now serve at its Tallahatchie facility?
What is the capacity impact of the new Montana inmates on CXW's Saguaro facility?
