HOUSTON, Aug. 20, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) announced plans today to reopen its Hector Garza Residential Treatment Center ("Hector Garza") facility in San Antonio, Texas effective August 27th. As part of the Company's Abraxas Youth and Family Services Division, the Hector Garza facility, closed since October 2005, will reopen initially to serve the needs of a Federal customer. James E. Hyman, Cornell's Chairman & CEO said, "We are delighted to reopen the Hector Garza facility as it brings us one step closer to our goal of asset maximization across our portfolio. We look forward to steady growth at this facility as we continue to meet the needs of youth service customers in Texas and regionally."
The Hector Garza facility, once opened, will operate as a residential treatment facility treating clients in a staff secure setting. The facility has a total capacity for 122 residents. Program licensure has already been obtained from the Texas Department of Family Protective Services (TDFPS). As a result of start up expenses largely offsetting revenues from the initial contract for 25 clients, the reopening is expected to be earnings neutral for the third quarter and to increase earnings by $0.01 per diluted share for the fourth quarter of 2007. Consequently, management now expects fourth quarter 2007 earnings to range from $0.36 to $0.39 per diluted share and full year earnings to range from $0.79 to $0.85 per diluted share.
Statements regarding the reopening of the Hector Garza Treatment Center, including without limitation timing, occupancy levels and financial impact, 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 Cornell's ability to perform according to its current expectations, changes in supply and demand, actions by governmental agencies and other 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.
About Cornell Companies
Cornell Companies, Inc. (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. The Company has 75 facilities in 15 states and the District of Columbia with a total service capacity of 17,452.
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