CoreCivic Reports Third Quarter 2024 Financial Results
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 (NYSE: CXW) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato totale di 491,6 milioni di dollari, in aumento del 2% rispetto all'anno precedente. L’utile netto è aumentato del 52% a 21,1 milioni di dollari, con un utile per azione diluito di $0,19. L'azienda ha registrato un miglioramento dei margini operativi grazie alla gestione dei costi e ad un aumento dell’occupazione compensata al 75,2% rispetto al 72,0% dell’anno scorso. Sviluppi significativi includono la scadenza del contratto di locazione del Dipartimento delle Correzioni della California e la cessazione del contratto ICE presso il South Texas Family Residential Center. Sulla base di una performance positiva, CoreCivic ha rivisto al rialzo le previsioni per l'intero anno 2024, prevedendo un utile netto compreso tra 55,5 e 61,5 milioni di dollari e un EBITDA rettificato tra 317,0 e 321,0 milioni di dollari.
CoreCivic (NYSE: CXW) informó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos totales de 491.6 millones de dólares, un aumento del 2% interanual. El ingreso neto aumentó un 52% a 21.1 millones de dólares, con ganancias por acción diluidas de $0.19. La compañía vio mejoras en los márgenes operativos gracias a la gestión de costos y un aumento de la ocupación compensada al 75.2% desde el 72.0% del año anterior. Los desarrollos notables incluyen la expiración del contrato de arrendamiento del Departamento de Correcciones de California y la terminación del contrato con ICE en el Centro Residencial Familiar del Sur de Texas. Basado en un sólido desempeño, CoreCivic elevó su guía para el año completo 2024, proyectando ingresos netos entre 55.5 y 61.5 millones de dólares y un EBITDA ajustado de 317.0 a 321.0 millones de dólares.
CoreCivic (NYSE: CXW)는 2024년 3분기 강력한 재무 실적을 발표했으며, 총 수익은 4억 9,160만 달러로 전년 대비 2% 증가했습니다. 순이익은 52% 증가한 2,110만 달러로, 희석 기준 주당순이익(EPS)은 $0.19입니다. 이 회사는 비용 관리와 연간 72.0%에서 75.2%로 증가한 보상 점유율 덕분에 운영 마진이 개선되었습니다. 주목할 만한 발전으로는 캘리포니아 교정국 임대 계약의 만료 및 남부 텍사스 가족 주거 센터에서의 ICE 계약 종료가 포함됩니다. 강력한 실적을 바탕으로 CoreCivic은 2024년 전체 연도 전망을 상향 조정하여 순이익이 5,550만에서 6,150만 달러, 조정 EBITDA가 3억 1,700만에서 3억 2,100만 달러에 이를 것으로 예상하고 있습니다.
CoreCivic (NYSE: CXW) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec un chiffre d'affaires total de 491,6 millions de dollars, en hausse de 2 % par rapport à l'année précédente. Le bénéfice net a augmenté de 52 % pour atteindre 21,1 millions de dollars, avec un BPA dilué de 0,19 $. L'entreprise a observé une amélioration des marges opérationnelles grâce à la gestion des coûts et une augmentation de l'occupation compensée à 75,2 % contre 72,0 % l'année précédente. Parmi les développements notables figurent l'expiration du bail du Département des corrections de Californie et la résiliation du contrat avec l'ICE au South Texas Family Residential Center. Sur la base de cette solide performance, CoreCivic a relevé ses prévisions pour l'ensemble de l'année 2024, projetant un bénéfice net compris entre 55,5 et 61,5 millions de dollars et un EBITDA ajusté de 317,0 à 321,0 millions de dollars.
CoreCivic (NYSE: CXW) berichtete über starke finanzielle Ergebnisse im dritten Quartal 2024 mit einem Gesamtumsatz von 491,6 Millionen US-Dollar, was einem Anstieg von 2 % im Jahresvergleich entspricht. Der Nettogewinn stieg um 52 % auf 21,1 Millionen US-Dollar, mit einem verwässerten Gewinn pro Aktie von $0,19. Das Unternehmen verzeichnete verbesserte operative Margen dank des Kostenmanagements und einer erhöhten vergüteten Auslastung, die von 72,0 % auf 75,2 % im Jahresvergleich stieg. Zu den bemerkenswerten Entwicklungen gehören das Auslaufen des Mietvertrags mit dem kalifornischen Justizministerium und die Beendigung des ICE-Vertrags im South Texas Family Residential Center. Basierend auf einer starken Leistung hob CoreCivic seine Prognose für das Gesamtjahr 2024 an und prognostizierte einen Nettogewinn zwischen 55,5 und 61,5 Millionen US-Dollar sowie ein bereinigtes EBITDA zwischen 317,0 und 321,0 Millionen US-Dollar.
- Revenue increased 2% to $491.6 million
- Net income grew 52% to $21.1 million
- Compensated occupancy improved to 75.2% from 72.0%
- Normalized FFO per share increased 23% to $0.43
- Company raised full-year 2024 financial guidance
- Leverage ratio improved to 2.2x, below target range
- Reduced expenses related to labor attraction and retention
- ICE revenue decreased 3.4% year-over-year
- Loss of California City Correctional Center lease contract
- Termination of ICE contract at South Texas Family Residential Center
- Suspended share repurchases in Q3 2024
Insights
CoreCivic delivered strong Q3 2024 results with notable improvements across key metrics. Revenue increased
The raised full-year guidance is particularly noteworthy, with adjusted EBITDA now expected between
The prison operator's strategic positioning remains strong despite facility changes. Revenue from ICE excluding the South Texas facility grew
The company's improved cost structure and operating leverage from higher occupancy rates suggest sustainable margin expansion potential. The shift in capital allocation strategy toward debt reduction demonstrates prudent management in response to changing business conditions, which should help maintain financial flexibility for future opportunities.
Cost Management and Higher Occupancy Continue To Drive Positive Financial Performance
Raises Full Year Financial Guidance
BRENTWOOD, Tenn., Nov. 06, 2024 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today its third quarter 2024 financial results.
Financial Highlights – Third Quarter 2024
- Total revenue of
$491.6 million , an increase of2% - Net income of
$21.1 million , an increase of52% - Adjusted net income of
$22.4 million , an increase of44% - Diluted earnings per share of
$0.19 ; Adjusted Diluted EPS of$0.20 - Normalized FFO per diluted share of
$0.43 , an increase of23% - Adjusted EBITDA of
$83.3 million , an increase of11%
Damon T. Hininger, CoreCivic's President and Chief Executive Officer, commented, "CoreCivic's financial results for the third quarter of 2024 demonstrate our continued strong operating momentum. We achieved notable improvement in our operating margin compared with the prior year quarter through our continued cost management diligence and the strong demand for our essential services, evidenced by the increase in our compensated occupancy to
"Beyond our solid quarterly financial results," Hininger added, "CoreCivic's balance sheet remains strong, and we are pleased with the continued execution of our capital strategy, ending the quarter with leverage, measured as net debt to Adjusted EBITDA, at 2.2x for the trailing twelve months - placing us below our target leverage range of 2.25x to 2.75x that we established in August 2020. As we look forward to opportunities in 2025 and beyond, CoreCivic is ready to respond quickly and flexibly to our governmental partner's needs due to our talented and experienced teams, healthy balance sheet and readily available and modern bed capacity."
Third Quarter 2024 Financial Results Compared With Third Quarter 2023
Net income in the third quarter of 2024 was
The increased adjusted earnings per share amounts resulted from modestly higher revenue, driven by higher populations and per diem rates at our facilities serving state and local populations, combined with cost containment efforts, lower interest expense and a decrease in shares of our common stock outstanding as a result of our share repurchase program. These earnings increases were achieved despite being partially offset by the expiration of our lease with the California Department of Corrections and Rehabilitation (CDCR) at our California City Correctional Center on March 31, 2024, which accounted for a
Operating leverage stemming from improving facility occupancy combined with cost management initiatives continue to yield positive financial results and operating performance. In particular, expenses related to labor attraction and retention, such as registry nursing and 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 government partner, decreased
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO) for the third quarter of 2024 was
Capital Strategy
Share Repurchases. Our Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to
As of September 30, 2024, we had
2024 Financial Guidance
Based on current business conditions, we are providing the following updates to our financial guidance for the full year 2024:
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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 third 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 fourth quarter of 2024. Written materials used in the investor presentations will also be available on our website beginning on or about November 26, 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 8:30 a.m. central time (9:30 a.m. eastern time) on Thursday, November 7, 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://registrations.events/direct/NTM123920992. 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 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) | ||||||||
| September 30, | December 31, | |||||||
| ASSETS | 2024 | 2023 | ||||||
| Cash and cash equivalents | $ | 107,850 | $ | 121,845 | ||||
| Restricted cash | 9,714 | 7,111 | ||||||
| Accounts receivable, net of credit loss reserve of | 264,843 | 312,174 | ||||||
| Prepaid expenses and other current assets | 33,713 | 26,304 | ||||||
| Assets held for sale | — | 7,480 | ||||||
| Total current assets | 416,120 | 474,914 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of respectively | 2,066,702 | 2,114,522 | ||||||
| Other real estate assets | 194,972 | 201,561 | ||||||
| Goodwill | 4,844 | 4,844 | ||||||
| Other assets | 231,304 | 309,558 | ||||||
| Total assets | $ | 2,913,942 | $ | 3,105,399 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 262,750 | $ | 285,857 | ||||
| Current portion of long-term debt | 11,952 | 11,597 | ||||||
| Total current liabilities | 274,702 | 297,454 | ||||||
| Long-term debt, net | 979,811 | 1,083,476 | ||||||
| Deferred revenue | 13,149 | 18,315 | ||||||
| Non-current deferred tax liabilities | 90,896 | 96,915 | ||||||
| Other liabilities | 79,164 | 131,673 | ||||||
| Total liabilities | 1,437,722 | 1,627,833 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – authorized; none issued and outstanding at September 30, 2024 and December 31, 2023 | — | — | ||||||
| Common stock – authorized; 110,271 and 112,733 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | 1,103 | 1,127 | ||||||
| Additional paid-in capital | 1,734,371 | 1,785,286 | ||||||
| Accumulated deficit | (259,254 | ) | (308,847 | ) | ||||
| Total stockholders' equity | 1,476,220 | 1,477,566 | ||||||
| Total liabilities and stockholders' equity | $ | 2,913,942 | $ | 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 | For the Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| REVENUE: | |||||||||||||||
| Safety | $ | 459,270 | $ | 443,324 | $ | 1,372,389 | $ | 1,282,717 | |||||||
| Community | 28,203 | 29,791 | 88,405 | 84,569 | |||||||||||
| Properties | 4,085 | 10,477 | 21,540 | 37,888 | |||||||||||
| Other | - | 113 | 19 | 215 | |||||||||||
| 491,558 | 483,705 | 1,482,353 | 1,405,389 | ||||||||||||
| EXPENSES: | |||||||||||||||
| Operating: | |||||||||||||||
| Safety | 343,423 | 350,946 | 1,041,642 | 1,015,070 | |||||||||||
| Community | 24,613 | 23,268 | 72,891 | 68,888 | |||||||||||
| Properties | 2,763 | 3,067 | 10,060 | 9,752 | |||||||||||
| Other | 19 | 42 | 63 | 158 | |||||||||||
| Total operating expenses | 370,818 | 377,323 | 1,124,656 | 1,093,868 | |||||||||||
| General and administrative | 41,162 | 33,927 | 111,537 | 99,218 | |||||||||||
| Depreciation and amortization | 32,240 | 32,526 | 96,115 | 95,183 | |||||||||||
| Asset impairments | 3,108 | 2,710 | 3,108 | 2,710 | |||||||||||
| 447,328 | 446,486 | 1,335,416 | 1,290,979 | ||||||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||
| Interest expense, net | (15,998 | ) | (17,886 | ) | (51,721 | ) | (55,305 | ) | |||||||
| Expenses associated with debt repayments and refinancing transactions | - | (100 | ) | (31,316 | ) | (326 | ) | ||||||||
| Gain on sale of real estate assets, net | 1,181 | 368 | 1,749 | 343 | |||||||||||
| Other income (expense) | 767 | (74 | ) | 1,153 | (43 | ) | |||||||||
| INCOME BEFORE INCOME TAXES | 30,180 | 19,527 | 66,802 | 59,079 | |||||||||||
| Income tax expense | (9,084 | ) | (5,635 | ) | (17,209 | ) | (17,957 | ) | |||||||
| NET INCOME | $ | 21,096 | $ | 13,892 | $ | 49,593 | $ | 41,122 | |||||||
| BASIC EARNINGS PER SHARE | $ | 0.19 | $ | 0.12 | $ | 0.45 | $ | 0.36 | |||||||
| DILUTED EARNINGS PER SHARE | $ | 0.19 | $ | 0.12 | $ | 0.44 | $ | 0.36 | |||||||
| 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 September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 21,096 | $ | 13,892 | $ | 49,593 | $ | 41,122 | |||||||
| Special items: | |||||||||||||||
| Expenses associated with debt repayments and refinancing transactions | - | 100 | 31,316 | 326 | |||||||||||
| Income tax expense associated with change in corporate tax structure | - | - | - | 930 | |||||||||||
| Gain on sale of real estate assets, net | (1,181 | ) | (368 | ) | (1,749 | ) | (343 | ) | |||||||
| Asset Impairments | 3,108 | 2,710 | 3,108 | 2,710 | |||||||||||
| Income tax benefit for special items | (587 | ) | (709 | ) | (10,222 | ) | (784 | ) | |||||||
| Adjusted net income | $ | 22,436 | $ | 15,625 | $ | 72,046 | $ | 43,961 | |||||||
| Weighted average common shares outstanding - basic | 110,271 | 113,605 | 111,174 | 113,919 | |||||||||||
| Effect of dilutive securities: | |||||||||||||||
| Restricted stock-based awards | 700 | 802 | 820 | 686 | |||||||||||
| Weighted average shares and assumed conversions - diluted | 110,971 | 114,407 | 111,994 | 114,605 | |||||||||||
| Adjusted Diluted EPS | $ | 0.20 | $ | 0.14 | $ | 0.64 | $ | 0.38 | |||||||
| 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 | For the Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net income | $ | 21,096 | $ | 13,892 | $ | 49,593 | $ | 41,122 | |||||||||
| Depreciation and amortization of real estate assets | 25,166 | 24,837 | 74,793 | 73,206 | |||||||||||||
| Impairment of real estate assets | 2,418 | - | 2,418 | - | |||||||||||||
| Gain on sale of real estate assets, net | (1,181 | ) | (368 | ) | (1,749 | ) | (343 | ) | |||||||||
| Income tax expense (benefit) for special items | (377 | ) | 107 | (199 | ) | 100 | |||||||||||
| Funds From Operations | $ | 47,122 | $ | 38,468 | $ | 124,856 | $ | 114,085 | |||||||||
| Expenses associated with debt repayments and refinancing transactions | - | 100 | 31,316 | 326 | |||||||||||||
| Income tax expense associated with change in corporate tax structure | - | - | - | 930 | |||||||||||||
| Other asset impairments | 690 | 2,710 | 690 | 2,710 | |||||||||||||
| Income tax benefit for special items | (210 | ) | (816 | ) | (10,023 | ) | (884 | ) | |||||||||
| Normalized Funds From Operations | $ | 47,602 | $ | 40,462 | $ | 146,839 | $ | 117,167 | |||||||||
| Funds from Operations Per Diluted Share | $ | 0.42 | $ | 0.34 | $ | 1.11 | $ | 1.00 | |||||||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.43 | $ | 0.35 | $ | 1.31 | $ | 1.02 | |||||||||
| 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 | For the Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 21,096 | $ | 13,892 | $ | 49,593 | $ | 41,122 | |||||||
| Interest expense | 18,947 | 20,734 | 61,065 | 64,037 | |||||||||||
| Depreciation and amortization | 32,240 | 32,526 | 96,115 | 95,183 | |||||||||||
| Income tax expense | 9,084 | 5,635 | 17,209 | 17,957 | |||||||||||
| EBITDA | 81,367 | 72,787 | 223,982 | 218,299 | |||||||||||
| Expenses associated with debt repayments and refinancing transactions | - | 100 | 31,316 | 326 | |||||||||||
| Gain on sale of real estate assets, net | (1,181 | ) | (368 | ) | (1,749 | ) | (343 | ) | |||||||
| Asset impairments | 3,108 | 2,710 | 3,108 | 2,710 | |||||||||||
| Adjusted EBITDA | $ | 83,294 | $ | 75,229 | $ | 256,657 | $ | 220,992 | |||||||
| CORECIVIC, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||
| GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS, EBITDA & ADJUSTED EBITDA | |||||||
| For the Year Ending | |||||||
| December 31, 2024 | |||||||
| Low End of Guidance | High End of Guidance | ||||||
| Net income | $ | 55,547 | $ | 61,547 | |||
| Expenses associated with debt repayments and refinancing transactions | 31,316 | 31,316 | |||||
| Gain on sale of real estate assets, net | (1,749 | ) | (1,749 | ) | |||
| Asset impairments | 3,108 | 3,108 | |||||
| Income tax benefit for special items | (10,222 | ) | (10,222 | ) | |||
| Adjusted net income | $ | 78,000 | $ | 84,000 | |||
| Net income | $ | 55,547 | $ | 61,547 | |||
| Depreciation and amortization of real estate assets | 100,000 | 101,000 | |||||
| Gain on sale of real estate assets, net | (1,749 | ) | (1,749 | ) | |||
| Impairment of real estate assets | 2,418 | 2,418 | |||||
| Income tax benefit for special items | (199 | ) | (199 | ) | |||
| Funds From Operations | $ | 156,017 | $ | 163,017 | |||
| Expenses associated with debt repayments and refinancing transactions | 31,316 | 31,316 | |||||
| Other asset impairments | 690 | 690 | |||||
| Income tax benefit for special items | (10,023 | ) | (10,023 | ) | |||
| Normalized Funds From Operations | $ | 178,000 | $ | 185,000 | |||
| Diluted EPS | $ | 0.49 | $ | 0.55 | |||
| Adjusted Diluted EPS | $ | 0.69 | $ | 0.75 | |||
| FFO per diluted share | $ | 1.39 | $ | 1.45 | |||
| Normalized FFO per diluted share | $ | 1.59 | $ | 1.65 | |||
| Net income | $ | 55,547 | $ | 61,547 | |||
| Interest expense | 79,000 | 78,000 | |||||
| Depreciation and amortization | 128,500 | 128,500 | |||||
| Income tax expense | 21,278 | 20,278 | |||||
| EBITDA | $ | 284,325 | $ | 288,325 | |||
| Expenses associated with debt repayments and refinancing transactions | 31,316 | 31,316 | |||||
| Gain on sale of real estate assets, net | (1,749 | ) | (1,749 | ) | |||
| Asset impairments | 3,108 | 3,108 | |||||
| Adjusted EBITDA | $ | 317,000 | $ | 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 |
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