Welcome to our dedicated page for Corecivic news (Ticker: CXW), a resource for investors and traders seeking the latest updates and insights on Corecivic stock.
Overview of CoreCivic (CXW)
CoreCivic Inc. is a diversified government-solutions company that has been addressing challenging public sector needs for more than 40 years. Operating primarily in the fields of corrections management, detention facilities, and residential reentry centers, CoreCivic delivers solutions designed to support high-quality operations in correctional and detention management while helping to reduce recidivism. As a publicly traded REIT and one of the nation's largest owners of government-related real estate, the company plays a pivotal role in providing cost-effective services to government partners.
Business Model and Core Segments
CoreCivic operates through a well-diversified business model segmented into three main categories:
- Safety Segment: This segment includes the design, development, and management of correctional and detention facilities. Facilities under this category are either owned by CoreCivic or managed under long-term lease agreements. The company provides operational management ensuring safety, security, compliance, and efficiency, which builds upon its extensive experience in corrections management.
- Community Segment: Focused on residential reentry centers, this segment addresses the significant public policy challenge of recidivism. By offering safe and structured reentry environments, CoreCivic supports community reintegration efforts and offers alternatives to traditional incarceration.
- Properties Segment: As a real estate investment trust, CoreCivic also manages a portfolio of properties leased to government agencies and third-party entities. This segment leverages the company's longstanding expertise in real estate to provide government partners with versatile and cost-efficient property solutions.
Operational Excellence and Industry Position
CoreCivic’s success is built on decades of operational excellence and a deep understanding of government needs. The company consistently delivers flexible and reliable service by adapting its facilities and offering tailored solutions for governmental challenges. This includes managing high-quality correctional facilities that not only provide incarceration but also support broader reentry programs designed to aid public safety and reduce repeat offenses.
Expertise in Government Solutions
At its core, CoreCivic is driven by a commitment to high standards, professionalism, and service to the public good. The company has developed an advanced operational infrastructure to manage complex contractual relationships with government agencies. Its expertise spans beyond standard corrections management to include innovative government real estate solutions. This dual focus not only solidifies its position in the market but also allows the company to address multiple facets of public safety and operational efficiency.
Competitive Landscape and Differentiation
The competitive landscape in corrections management and government solutions involves several players, yet CoreCivic differentiates itself through scale, experience, and an adaptable business model. Rather than simply offering facility management services, CoreCivic provides integrated solutions that combine corrections, reentry services, and real estate expertise. This integrated approach enables it to be a dependable partner for government agencies seeking holistic solutions to control costs while maintaining high standards of operation.
Robust Operational Framework and Commitment to Quality
CoreCivic’s operational framework emphasizes:
- Operational Efficiency: Through streamlined processes, robust facility management practices, and adherence to compliance standards, the company ensures that its facilities remain cost-effective and high-quality managed.
- Scalability: With extensive experience in managing a large network of facilities, CoreCivic is capable of scaling its operations to meet evolving government requirements.
- Innovation in Service Delivery: The company continuously adapts its service offerings to implement innovative solutions for government real estate and corrections management challenges, leveraging technology and operational best practices.
Market Significance and Strategic Insights
CoreCivic holds a significant position in the U.S. corrections and detention market as one of the largest private operators and REIT owners in the sector. Its contracts with government agencies underscore its role as a trusted provider for public safety solutions. CoreCivic operates in an environment where public and governmental expectations are high, and its longstanding relationships with state and federal agencies stand as a testament to its reliability and expertise.
Key Takeaways for Investors
Investors examining CoreCivic are likely to appreciate the company’s established market presence, diversified revenue streams, and the strategic advantage of being a comprehensive solutions provider within the government services industry. The clear segmentation of its business model allows for an in-depth understanding of how each part of its operations contributes to overall performance. Whether it is through the management of correctional and detention facilities or the provision of real estate solutions, CoreCivic demonstrates a robust capability to adapt and meet the rigorous demands of its governmental partners.
Conclusion
In summary, CoreCivic (CXW) offers an expansive portfolio of services centered on corrections, reentry, and government real estate solutions. Its long history, operational expertise, structured business segments, and consistent focus on service quality form the foundation of its significant market presence. For those seeking an in-depth look at how a diversified government-solutions company functions, CoreCivic serves as a prime example of effective management in a challenging and evolving industry.
CoreCivic (NYSE: CXW) announced significant changes to its Board of Directors effective March 17, 2025. The company is appointing three new independent directors - Dawn Smith, Stacey Tank, and Nina Tran - expanding the board from 11 to 14 members. Smith, currently President of Cologix, brings expertise in corporate law and IT. Tank, CEO of Bespoke Beauty Brands, offers executive leadership experience in both commercial and non-profit sectors. Tran contributes extensive financial and real estate expertise.
The board will subsequently decrease to 12 members following the departure of Robert Dennis and Anne Mariucci, who will not seek re-election at the 2025 Annual Meeting. Both Dennis and Mariucci have served on CoreCivic's board for over a decade, with 12 and 13 years of service respectively.
CoreCivic (NYSE: CXW) has announced the resumption of operations at the South Texas Family Residential Center in Dilley, Texas, under an amended intergovernmental services agreement with ICE. The facility, which can accommodate up to 2,400 individuals, will restart operations after being idle since August 2024.
The company has signed a new lease agreement with Target Hospitality , the facility owner. The contract expires in March 2030 and is expected to generate approximately $180 million in annual revenue once fully activated. CoreCivic will provide residential services, including recreational activities, life skills, counseling, and medical care, while Target will handle food services.
The agreement includes a fixed monthly payment structure based on the gradual activation of facility neighborhoods. Pre-activation activities have already begun, with earnings contribution expected starting in Q2 2025. The company anticipates increased demand from federal government partners and expects continued robust contracting activity throughout 2025.
CoreCivic (NYSE: CXW) has secured contract modifications with U.S. Immigration and Customs Enforcement (ICE) to expand detention capacity across four facilities. The expansion includes: up to 784 detainees at Northeast Ohio Correctional Center, Nevada Southern Detention Center, and Cimarron Correctional Facility in Oklahoma, plus 252 beds at Tallahatchie County Correctional Facility in Mississippi.
The facilities currently serve multiple government contracts: Northeast Ohio houses 650 U.S. Marshals Service (USMS) residents and 925 Ohio Department of Rehabilitation and Correction residents; Nevada Southern accommodates 800 USMS residents; Cimarron holds 1,100 USMS residents; and Tallahatchie serves approximately 1,400 residents under contracts with eight different customers.
CoreCivic (NYSE: CXW) reported strong Q4 2024 financial results with total revenue of $479.3 million and net income of $19.3 million. Full-year 2024 performance included total revenue of $2.0 billion and net income of $68.9 million. The company achieved its highest occupancy level since Q1 2020 at 75.5%.
Notable developments include a new contract with Montana for additional inmates and facility investments of $40-45 million for potential activations. The company's ICE revenue decreased 21.6% in Q4 2024 compared to Q4 2023, primarily due to the South Texas facility contract termination. However, state customer revenue increased 6.4%.
For 2025, CoreCivic projects net income between $53.5-67.5 million and EBITDA of $281.0-293.0 million. The company continued its share repurchase program, buying back 4.4 million shares in 2024 for $68.5 million, with $168.9 million remaining under the authorization.
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) has announced its schedule for the release of its 2024 fourth quarter financial results, which will be made public after market close on Monday, February 10, 2025. The company will host a conference call to discuss these results on Tuesday, February 11, 2025, at 10:00 a.m. central time (11:00 a.m. eastern time).
Interested participants can join the live telephone broadcast by pre-registering through the provided link, after which they will receive confirmation details including a dial-in number and unique passcode. Additionally, an audio-only webcast will be available on CoreCivic's website under the 'Events & Presentations' section, with a replay accessible for seven days following the call.
CoreCivic (NYSE: CXW) has announced the promotion of Patrick Swindle to President and Chief Operating Officer, effective January 1, 2025. Swindle, who currently serves as Executive Vice President and COO, will take on the expanded role while Damon T. Hininger will continue as CEO and Board member. Swindle joined CoreCivic in 2007 and has held various leadership positions including Managing Director of Treasury, VP of Strategic Development, and EVP & Chief Corrections Officer. Prior to CoreCivic, he spent ten years in equity research at various financial firms. The company views this appointment as strategic during what they anticipate to be a period of rapid growth.
CoreCivic (NYSE: CXW) reported strong Q3 2024 financial results with total revenue of $491.6 million, up 2% year-over-year. Net income increased 52% to $21.1 million, with diluted EPS of $0.19. The company saw improved operating margins due to cost management and increased compensated occupancy to 75.2% from 72.0% year-over-year. Notable developments include the expiration of the California Department of Corrections lease and the termination of the ICE contract at South Texas Family Residential Center. Based on strong performance, CoreCivic raised its full-year 2024 guidance, projecting net income between $55.5-61.5 million and Adjusted EBITDA of $317.0-321.0 million.
CoreCivic, Inc. (NYSE: CXW) has announced the dates for its 2024 third quarter earnings release and conference call. The company will release its financial results after market close on Wednesday, November 6, 2024. A live broadcast of the conference call is scheduled for Thursday, November 7, 2024, at 8:30 a.m. central time (9:30 a.m. eastern time).
To participate in the call, interested parties must register in advance through the provided link. Upon registration, participants will receive confirmation details, including a unique passcode. An audio-only webcast of the conference call will be accessible from CoreCivic's website under the "Events & Presentations" section of the "Investors" page. A replay of the webcast will be available for seven days following the call.
CoreCivic reported strong Q2 2024 financial results, with total revenue of $490.1 million, a 6% increase from Q2 2023. Net income rose to $19.0 million, or $0.17 per diluted share. Adjusted EBITDA increased 16% to $83.9 million, while Normalized FFO per diluted share grew 27% to $0.42. The company saw higher occupancy rates and improved cost management. CoreCivic repurchased 1.3 million shares for $20.1 million and maintained a leverage ratio of 2.5x. The company also refinanced its debt, eliminating maturities until 2027. However, ICE will discontinue using the South Texas Family Residential Center from August 9, 2024. CoreCivic provided updated 2024 financial guidance, projecting net income between $42.0-$50.4 million and Adjusted EBITDA of $302.4-$308.4 million.
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