CoreCivic Reports First Quarter 2024 Financial Results
CoreCivic, Inc. (NYSE: CXW) reported strong first quarter 2024 financial results with a 9% revenue increase year-over-year, significant share buybacks, and debt refinancing. The company achieved its target leverage range for the first time since 2020. Revenue increased across Federal, State, and Local segments. Adjusted net income improved to $27.9 million, or $0.25 per diluted share, compared to the same quarter in 2023. Despite the lease expiration at the Oklahoma Department of Corrections facility, positive results were driven by higher populations and lower expenses. Revenue from ICE increased compared to the previous year. Adjusted EBITDA rose to $89.5 million. Normalized FFO per share increased by 35% to $0.46. The company undertook significant share repurchases and successfully issued $500 million in senior unsecured notes, extending the term of existing debt by three years. The lease expiration at the California City Correctional Center is expected to impact per share results in the second quarter and full year 2024. Updated full year 2024 guidance includes net income of $52.7 million to $63.7 million, adjusted net income of $74.0 million to $85.0 million, and adjusted diluted EPS of $0.66 to $0.76.
Revenue increased 9% year-over-year in the first quarter of 2024, with growth across Federal, State, and Local segments.
Adjusted net income improved to $27.9 million, or $0.25 per diluted share, compared to the same quarter in 2023.
Revenue from ICE increased significantly compared to the same quarter in 2023.
Adjusted EBITDA rose to $89.5 million in the first quarter of 2024.
Normalized FFO per diluted share increased by 35% to $0.46 in the first quarter of 2024.
The company successfully repurchased 2.7 million shares of common stock for $39.4 million in the first quarter of 2024.
The company issued $500 million of new senior unsecured notes, refinancing and extending the term of existing debt by three years at the same rate as notes issued in 2021.
The lease expiration at the California City Correctional Center is expected to impact per share results in the second quarter of 2024 and full year 2024.
Higher Occupancy Propels Strong Quarterly Financial Performance
Capital Strategy Highlights Include Significant Share Buyback and Debt Refinancing in Quarter
BRENTWOOD, Tenn., May 08, 2024 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the first quarter of 2024. Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, commented, “CoreCivic experienced a strong first quarter of 2024. Propelled by
Commenting on capital market activities for the quarter, Hininger added, “In addition to the strong quarterly financial results, we are equally pleased with the continued progress we have made on our capital structure initiatives. During the quarter, we repurchased 2.7 million shares of our common stock for
“We are thankful for our many partners. Our federal, state, and local government partners continue to trust the essential solutions CoreCivic provides, and we renewed the eight contracts that were up for renewal during the quarter – following a year in which we renewed all of the 34 contracts up for renewal. We are also thankful to our financial partners for their ongoing support, including of our recent debt refinancing.”
Financial Highlights – First Quarter 2024
- Total revenue of
$500.7 million - CoreCivic Safety revenue of
$457.7 million - CoreCivic Community revenue of
$29.9 million - CoreCivic Properties revenue of
$13.0 million
- CoreCivic Safety revenue of
- Net income of
$9.5 million ; Adjusted net income of$27.9 million - Diluted earnings per share of
$0.08 - Adjusted Diluted EPS of
$0.25 - Normalized FFO per diluted share of
$0.46 - Adjusted EBITDA of
$89.5 million
First Quarter 2024 Financial Results Compared With First Quarter 2023
Net income in the first quarter of 2024 was
The increased adjusted per share amounts resulted from higher federal, state, and local populations, particularly at our facilities serving U.S. Immigration & Customs Enforcement (ICE), combined with lower interest expense and a decrease in shares outstanding, both resulting from our capital allocation strategy. These earnings increases were partially offset by the expiration of our lease with the Oklahoma Department of Corrections (ODC) at our North Fork Correctional Facility on June 30, 2023.
Our labor attraction and retention initiatives continue to generate positive results. The costs of registry nursing, temporary labor resources, including associated travel expenses, overtime and incentives, declined meaningfully from the prior year quarter as well as sequentially.
Revenue from ICE, our largest partner, increased significantly versus the same quarter of 2023, when Title-42 restrictions were still in effect, and ICE revenue was essentially flat versus the fourth quarter of 2023. Under Title 42, which ended May 11, 2023, asylum-seekers and anyone crossing the border without proper documentation or authority were denied entry at the United States border to contain the spread of COVID-19. During the three months ended March 31, 2024, revenue from ICE was
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO) for the first quarter of 2024 was
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.
Business Updates
Share Repurchases. On May 12, 2022, our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to
As of March 31, 2024, we had
Debt Refinancing. On March 12, 2024, we announced the completion of an underwritten registered public offering of
California City Correctional Center. As previously disclosed, the lease with the California Department of Corrections and Rehabilitation at our 2,560-bed California City Correctional Center expired on March 31, 2024, and was not renewed. The facility was idled effective April 1, 2024. Rental revenue at this facility was
2024 Financial Guidance
Based on current business conditions, we are providing the following updated financial guidance for the full year 2024:
| New Guidance Full Year 2024 | Prior Guidance Full Year 2024 | |
| – Net income | ||
| – Adjusted net income | ||
| – Diluted EPS | ||
| – Adjusted Diluted EPS | ||
| – FFO per diluted share | ||
| – Normalized FFO per diluted share | ||
| – EBITDA | ||
| – Adjusted EBITDA | ||
| ¹ Prior guidance did not include the aforementioned | ||
During 2024, we expect to invest
Supplemental Financial Information and Investor Presentations
We have made available on our website supplemental financial information and other data for the first quarter of 2024. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation and disclaim any duties to update any of the information disclosed in this report.
Management may meet with investors from time to time during the second quarter of 2024. Written materials used in the investor presentations will also be available on our website beginning on or about May 21, 2024. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.
Conference Call, Webcast and Replay Information
We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, May 9, 2024, which will be accessible through the Company’s website at www.corecivic.com under the “Events & Presentations” section of the “Investors” page. To participate via telephone and join the call live, please register in advance here https://register.vevent.com/register/BIa41ba53918294659afa34f33febf12cc. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
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 over 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.
Forward-Looking Statements
This press release contains 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 are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, including as a consequence of the United States Department of Justice not renewing contracts as a result of President Biden’s Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities, impacting utilization primarily by the United States Federal Bureau of Prisons and the United States Marshals Service, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (v) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations; inflation and other increases in costs of operations, including a continuing rise in labor costs; fluctuations in interest rates and risks of operations; (vi) government budget uncertainty, the impact of the debt ceiling and the potential for government shutdowns and changing budget priorities; (vii) our ability to successfully identify and consummate future development and acquisition opportunities and realize projected returns resulting therefrom; (viii) our ability to have met and maintained qualification for taxation as a real estate investment trust, or REIT, for the years we elected REIT status; and (ix) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
| CORECIVIC, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| March 31, | December 31, | |||||||
| ASSETS | 2024 | 2023 | ||||||
| Cash and cash equivalents | $ | 111,399 | $ | 121,845 | ||||
| Restricted cash | 7,978 | 7,111 | ||||||
| Accounts receivable, net of credit loss reserve of | 274,311 | 312,174 | ||||||
| Prepaid expenses and other current assets | 32,612 | 26,304 | ||||||
| Assets held for sale | — | 7,480 | ||||||
| Total current assets | 426,300 | 474,914 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of | 2,095,606 | 2,114,522 | ||||||
| Other real estate assets | 199,248 | 201,561 | ||||||
| Goodwill | 4,844 | 4,844 | ||||||
| Other assets | 301,360 | 309,558 | ||||||
| Total assets | $ | 3,027,358 | $ | 3,105,399 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 254,066 | $ | 285,857 | ||||
| Current portion of long-term debt | 110,487 | 11,597 | ||||||
| Total current liabilities | 364,553 | 297,454 | ||||||
| Long-term debt, net | 984,085 | 1,083,476 | ||||||
| Deferred revenue | 17,761 | 18,315 | ||||||
| Non-current deferred tax liabilities | 91,799 | 96,915 | ||||||
| Other liabilities | 125,237 | 131,673 | ||||||
| Total liabilities | 1,583,435 | 1,627,833 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – | — | — | ||||||
| Common stock – | 1,116 | 1,127 | ||||||
| Additional paid-in capital | 1,742,111 | 1,785,286 | ||||||
| Accumulated deficit | (299,304 | ) | (308,847 | ) | ||||
| Total stockholders’ equity | 1,443,923 | 1,477,566 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,027,358 | $ | 3,105,399 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| REVENUE: | ||||||||
| Safety | $ | 457,746 | $ | 417,650 | ||||
| Community | 29,900 | 26,414 | ||||||
| Properties | 13,039 | 13,837 | ||||||
| Other | 1 | 101 | ||||||
| 500,686 | 458,002 | |||||||
| EXPENSES: | ||||||||
| Operating: | ||||||||
| Safety | 350,098 | 328,398 | ||||||
| Community | 24,144 | 22,715 | ||||||
| Properties | 3,835 | 3,361 | ||||||
| Other | 26 | 63 | ||||||
| Total operating expenses | 378,103 | 354,537 | ||||||
| General and administrative | 36,465 | 32,679 | ||||||
| Depreciation and amortization | 31,730 | 31,042 | ||||||
| 446,298 | 418,258 | |||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest expense, net | (18,613 | ) | (19,151 | ) | ||||
| Expenses associated with debt repayments and refinancing transactions | (27,242 | ) | - | |||||
| Gain on sale of real estate assets, net | 568 | - | ||||||
| Other income | (58 | ) | (47 | ) | ||||
| INCOME BEFORE INCOME TAXES | 9,043 | 20,546 | ||||||
| Income tax benefit (expense) | 500 | (8,146 | ) | |||||
| NET INCOME | $ | 9,543 | $ | 12,400 | ||||
| BASIC EARNINGS PER SHARE | $ | 0.08 | $ | 0.11 | ||||
| DILUTED EARNINGS PER SHARE | $ | 0.08 | $ | 0.11 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net income | $ | 9,543 | $ | 12,400 | ||||
| Special items: | ||||||||
| Expenses associated with debt repayments and refinancing transactions | 27,242 | - | ||||||
| Income tax expense associated with change in corporate tax structure | - | 2,308 | ||||||
| Gain on sale of real estate assets, net | (568 | ) | - | |||||
| Income tax benefit for special items | (8,358 | ) | - | |||||
| Adjusted net income | $ | 27,859 | $ | 14,708 | ||||
| Weighted average common shares outstanding - basic | 112,306 | 114,533 | ||||||
| Effect of dilutive securities: | ||||||||
| Restricted stock-based awards | 1,181 | 937 | ||||||
| Weighted average shares and assumed conversions - diluted | 113,487 | 115,470 | ||||||
| Adjusted Diluted EPS | $ | 0.25 | $ | 0.13 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net income | $ | 9,543 | $ | 12,400 | ||||
| Depreciation and amortization of real estate assets | 24,784 | 24,171 | ||||||
| Gain on sale of real estate assets, net | (568 | ) | - | |||||
| Income tax expense for special items | 178 | - | ||||||
| Funds From Operations | $ | 33,937 | $ | 36,571 | ||||
| Expenses associated with debt repayments and refinancing transactions | 27,242 | - | ||||||
| Income tax expense associated with change in corporate tax structure | - | 2,308 | ||||||
| Income tax benefit for special items | (8,536 | ) | - | |||||
| Normalized Funds From Operations | $ | 52,643 | $ | 38,879 | ||||
| Funds from Operations Per Diluted Share | $ | 0.30 | $ | 0.32 | ||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.46 | $ | 0.34 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF EBITDA AND ADJUSTED EBITDA | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net income | $ | 9,543 | $ | 12,400 | ||||
| Interest expense | 22,058 | 22,089 | ||||||
| Depreciation and amortization | 31,730 | 31,042 | ||||||
| Income tax (benefit) expense | (500 | ) | 8,146 | |||||
| EBITDA | $ | 62,831 | $ | 73,677 | ||||
| Expenses associated with debt repayments and refinancing transactions | 27,242 | - | ||||||
| Gain on sale of real estate assets, net | (568 | ) | - | |||||
| Adjusted EBITDA | $ | 89,505 | $ | 73,677 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| GUIDANCE — CALCULATION OF FUNDS FROM OPERATIONS & EBITDA | ||||||||
| For the Year Ending | ||||||||
| December 31, 2024 | ||||||||
| Low End of Guidance | High End of Guidance | |||||||
| Net income | $ | 52,723 | $ | 63,723 | ||||
| Expenses associated with debt repayments and refinancing transactions | 31,442 | 31,442 | ||||||
| Gain on sale of real estate assets, net | (568 | ) | (568 | ) | ||||
| Income tax benefit for special items | (9,597 | ) | (9,597 | ) | ||||
| Adjusted net income | $ | 74,000 | $ | 85,000 | ||||
| Net income | $ | 52,723 | $ | 63,723 | ||||
| Depreciation and amortization of real estate assets | 99,500 | 100,000 | ||||||
| Gain on sale of real estate assets, net | (568 | ) | (568 | ) | ||||
| Income tax expense for special items | 178 | 178 | ||||||
| Funds From Operations | $ | 151,833 | $ | 163,333 | ||||
| Expenses associated with debt repayments and refinancing transactions | 31,442 | 31,442 | ||||||
| Income tax benefit for special items | (9,775 | ) | (9,775 | ) | ||||
| Normalized Funds From Operations | $ | 173,500 | $ | 185,000 | ||||
| Diluted EPS | $ | 0.47 | $ | 0.57 | ||||
| Adjusted Diluted EPS | $ | 0.66 | $ | 0.76 | ||||
| FFO per diluted share | $ | 1.36 | $ | 1.46 | ||||
| Normalized FFO per diluted share | $ | 1.56 | $ | 1.66 | ||||
| Net income | $ | 52,723 | $ | 63,723 | ||||
| Interest expense | 80,500 | 79,500 | ||||||
| Depreciation and amortization | 127,500 | 127,500 | ||||||
| Income tax expense | 20,403 | 19,403 | ||||||
| EBITDA | $ | 281,126 | $ | 290,126 | ||||
| Expenses associated with debt repayments and refinancing transactions | 31,442 | 31,442 | ||||||
| Gain on sale of real estate assets, net | (568 | ) | (568 | ) | ||||
| Adjusted EBITDA | $ | 312,000 | $ | 321,000 | ||||
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company’s results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, security analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. As a company with extensive real estate holdings, we believe FFO and FFO per share are important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO and FFO per share when reporting results. EBITDA, Adjusted EBITDA, and FFO are useful as supplemental measures of performance of the Company’s properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company’s tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company’s properties, management believes that assessing performance of the Company’s properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented.
Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company’s operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company’s consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.
| Contact: | Investors: Mike Grant – Managing Director, Investor Relations – (615) 263-6957 |
| Financial Media: David Gutierrez, Dresner Corporate Services – (312) 780-7204 |
FAQ
What was CoreCivic's revenue in the first quarter of 2024?
CoreCivic reported total revenue of $500.7 million in the first quarter of 2024.
What was CoreCivic's net income in the first quarter of 2024?
CoreCivic had a net income of $9.5 million and adjusted net income of $27.9 million in the first quarter of 2024.
How did CoreCivic's revenue from ICE compare in the first quarter of 2024 to the same period in 2023?
CoreCivic's revenue from ICE increased significantly in the first quarter of 2024 compared to the same period in 2023.
What was CoreCivic's Adjusted EBITDA in the first quarter of 2024?
CoreCivic's Adjusted EBITDA was $89.5 million in the first quarter of 2024.
What was CoreCivic's Normalized FFO per diluted share in the first quarter of 2024?
CoreCivic's Normalized FFO per diluted share increased by 35% to $0.46 in the first quarter of 2024.
