CoreCivic Announces Resumption of Operations at South Texas Family Residential Center in Dilley, Texas
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) ha annunciato la ripresa delle operazioni presso il South Texas Family Residential Center a Dilley, Texas, sotto un accordo di servizi intergovernativo modificato con l'ICE. La struttura, che può ospitare fino a 2.400 individui, riprenderà le operazioni dopo essere stata inattiva da agosto 2024.
L'azienda ha firmato un nuovo contratto di locazione con Target Hospitality, il proprietario della struttura. Il contratto scade a marzo 2030 e si prevede genererà circa 180 milioni di dollari di entrate annuali una volta completamente attivato. CoreCivic fornirà servizi residenziali, inclusi attività ricreative, abilità di vita, consulenza e assistenza medica, mentre Target si occuperà dei servizi di ristorazione.
L'accordo include una struttura di pagamento mensile fisso basata sull'attivazione graduale dei quartieri della struttura. Le attività di pre-attivazione sono già iniziate, con un contributo ai guadagni previsto a partire dal secondo trimestre 2025. L'azienda prevede un aumento della domanda da parte dei partner del governo federale e si aspetta un'attività contrattuale continua e robusta per tutto il 2025.
CoreCivic (NYSE: CXW) ha anunciado la reanudación de operaciones en el South Texas Family Residential Center en Dilley, Texas, bajo un acuerdo de servicios intergubernamentales modificado con ICE. La instalación, que puede albergar hasta 2,400 individuos, reiniciará operaciones después de haber estado inactiva desde agosto de 2024.
La empresa ha firmado un nuevo contrato de arrendamiento con Target Hospitality, el propietario de la instalación. El contrato vence en marzo de 2030 y se espera que genere aproximadamente $180 millones en ingresos anuales una vez que esté completamente activado. CoreCivic proporcionará servicios residenciales, incluyendo actividades recreativas, habilidades para la vida, asesoramiento y atención médica, mientras que Target se encargará de los servicios de alimentación.
El acuerdo incluye una estructura de pago mensual fijo basada en la activación gradual de los vecindarios de la instalación. Las actividades de preactivación ya han comenzado, con una contribución a las ganancias que se espera a partir del segundo trimestre de 2025. La empresa anticipa un aumento en la demanda por parte de socios del gobierno federal y espera una actividad de contratación robusta a lo largo de 2025.
CoreCivic (NYSE: CXW)는 텍사스 딜리의 South Texas Family Residential Center에서 ICE와의 수정된 정부 간 서비스 계약에 따라 운영 재개를 발표했습니다. 이 시설은 최대 2,400명을 수용할 수 있으며, 2024년 8월 이후 가동이 중단된 후 운영을 재개합니다.
회사는 시설 소유자인 Target Hospitality와 새로운 임대 계약을 체결했습니다. 계약은 2030년 3월에 만료되며, 완전히 가동되면 연간 약 $180 백만의 수익을 생성할 것으로 예상됩니다. CoreCivic은 레크리에이션 활동, 생활 기술, 상담 및 의료 서비스를 포함한 주거 서비스를 제공하며, Target는 음식 서비스 담당합니다.
이 계약은 시설 지역의 점진적인 활성화에 따라 고정 월 지급 구조를 포함합니다. 사전 활성화 활동은 이미 시작되었으며, 2025년 2분기부터 수익 기여가 예상됩니다. 회사는 연방 정부 파트너로부터의 수요 증가를 예상하며, 2025년 내내 지속적인 강력한 계약 활동이 있을 것으로 기대하고 있습니다.
CoreCivic (NYSE: CXW) a annoncé la reprise des opérations au South Texas Family Residential Center à Dilley, Texas, dans le cadre d'un accord de services intergouvernementaux modifié avec l'ICE. L'établissement, qui peut accueillir jusqu'à 2 400 individus, redémarrera ses activités après avoir été inactif depuis août 2024.
L'entreprise a signé un nouveau contrat de location avec Target Hospitality, le propriétaire de l'établissement. Le contrat expire en mars 2030 et devrait générer environ 180 millions de dollars de revenus annuels une fois pleinement opérationnel. CoreCivic fournira des services résidentiels, y compris des activités récréatives, des compétences de vie, des conseils et des soins médicaux, tandis que Target s'occupera des services alimentaires.
L'accord comprend une structure de paiement mensuel fixe basée sur l'activation progressive des quartiers de l'établissement. Les activités de pré-activation ont déjà commencé, avec une contribution aux bénéfices attendue à partir du deuxième trimestre 2025. L'entreprise anticipe une demande croissante de la part des partenaires gouvernementaux fédéraux et s'attend à une activité contractuelle robuste tout au long de 2025.
CoreCivic (NYSE: CXW) hat die Wiederaufnahme der Betriebe im South Texas Family Residential Center in Dilley, Texas, unter einem geänderten intergouvernementalen Dienstleistungsvertrag mit ICE bekannt gegeben. Die Einrichtung, die bis zu 2.400 Personen aufnehmen kann, wird nach einer Inaktivität seit August 2024 den Betrieb wieder aufnehmen.
Das Unternehmen hat einen neuen Mietvertrag mit Target Hospitality, dem Eigentümer der Einrichtung, unterzeichnet. Der Vertrag läuft im März 2030 aus und wird voraussichtlich jährliche Einnahmen von etwa 180 Millionen Dollar generieren, sobald er vollständig aktiviert ist. CoreCivic wird Wohnservices anbieten, einschließlich Freizeitaktivitäten, Lebenskompetenzen, Beratung und medizinischer Versorgung, während Target die Verpflegungsdienste übernehmen wird.
Der Vertrag umfasst eine feste monatliche Zahlungsstruktur, die auf der schrittweisen Aktivierung der Nachbarschaften der Einrichtung basiert. Die Aktivitäten zur Voraktivierung haben bereits begonnen, und ein Beitrag zu den Einnahmen wird ab dem 2. Quartal 2025 erwartet. Das Unternehmen rechnet mit einer steigenden Nachfrage von Bundespartnern und erwartet im gesamten Jahr 2025 weiterhin eine robuste Vertragsaktivität.
- New $180M annual revenue stream once fully activated
- Operations resuming at 2,400-capacity facility
- Contract secured until March 2030
- Earnings accretive starting Q2 2025
- Additional ICE contract modifications secured last week
- Gradual activation may delay full revenue realization
- Revenue dependent on facility neighborhood activation schedule
- Operational costs increased with new medical care responsibilities
Insights
CoreCivic's resumption of operations at the South Texas Family Residential Center represents a significant revenue opportunity with expected annual revenue of approximately
The contract structure includes several positive elements: a fixed monthly payment schedule, a five-year term through March 2030 with extension possibilities, and a graduated activation approach that mitigates operational risks. Management explicitly states this will be accretive to earnings beginning in Q2 2025.
This agreement follows four contract modifications announced last week, suggesting accelerating momentum in CoreCivic's government contracting business. The company is strategically positioning itself for what management describes as "increased demand" from federal government partners throughout 2025.
From an operational efficiency standpoint, returning to a facility they previously managed for a decade (2014-2024) leverages institutional knowledge and existing relationships. The strategy of rehiring former staff should expedite activation while controlling training costs and maintaining service quality.
CoreCivic's flexible approach of utilizing both owned and third-party facilities (like Target Hospitality's) enhances their ability to capture market opportunities without capital-intensive new construction, potentially improving return on invested capital.
BRENTWOOD, Tenn., March 05, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today that it has agreed under an amended intergovernmental services agreement (IGSA) between the City of Dilley, Texas, and U.S. Immigration and Customs Enforcement (ICE) to resume operations and care for up to 2,400 individuals at the South Texas Family Residential Center in Dilley, Texas (the Dilley Facility). Simultaneously, CoreCivic has entered into a new lease agreement with Target Hospitality Corporation (Target), the owner of the facility, over a period co-terminus with the ICE agreement.
The Dilley Facility was purpose-built for ICE in 2014 to provide an appropriate setting for a family population. CoreCivic managed the Dilley Facility from its construction in 2014 through August 2024, when funding for the contract with ICE was terminated and the facility was idled. CoreCivic will again be responsible for providing residential services in an open and safe environment that offers residents indoor and outdoor recreational activities, life skills, counseling, group interaction, and access to religious and legal services. In addition, CoreCivic will assume the additional responsibility of onsite medical care. Food services will be provided by Target.
The amended IGSA expires in March 2030 and may be further extended through bilateral modification. The agreement provides for a fixed monthly payment in accordance with a graduated schedule to correlate with the activation of each neighborhood within the facility. Total annual revenue once fully activated is expected to be approximately
Damon T. Hininger, CoreCivic's Chief Executive Officer, commented, "With this award and the additional capacity provided to ICE through four contract modifications we announced last week, we are grateful for the trust our government partner has placed in us. We have an extensive supply of available beds, either owned directly or provided by third parties like Target, that provides our government partners the flexibility to satisfy their immediate and long-term needs in a cost-effective manner. We are entering a period when our government partners -- particularly our federal government partners -- are expected to have increased demand. We anticipate continued robust contracting activity throughout 2025 that will help meet their growing needs."
Patrick Swindle, CoreCivic's President and Chief Operating Officer stated, "We are offering our staff the opportunity to transfer to the Dilley Facility and expect many who accept transfer opportunities will be professionals who previously provided services at the facility prior to its closure last year, expediting the activation process. We are also pleased to again work with Target, which has been a fantastic partner since our relationship began in 2014."
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 believe we are the largest private owner of real estate used by government agencies 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 statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. 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, 2024, filed with the SEC on February 21, 2025. 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 expected annual revenue for CoreCivic's Dilley facility operations?
When will the Dilley facility contract with ICE expire?
How many individuals can the South Texas Family Residential Center accommodate?
When will CXW's Dilley facility operations begin contributing to earnings?
Why was CoreCivic's Dilley facility previously closed?
