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About CoreCivic (CXW): A Diversified Government Solutions Provider
CoreCivic, Inc. (NYSE: CXW) is a leading publicly traded real estate investment trust (REIT) specializing in providing diversified solutions to government partners across the United States. The company operates through three primary business segments: Safety, Community, and Properties, offering a wide range of services including corrections and detention management, residential reentry programs, and government real estate solutions. With over four decades of experience, CoreCivic has established itself as a prominent player in addressing complex government challenges in a cost-effective and flexible manner.
Core Business Segments
- Safety: CoreCivic's Safety segment encompasses the ownership, operation, and management of correctional and detention facilities. These facilities are either owned outright or leased through long-term agreements. The company provides high-quality services to both federal and state governments, ensuring secure and efficient management of incarcerated individuals.
- Community: The Community segment focuses on residential reentry centers and non-residential alternatives to incarceration. These programs aim to address recidivism by providing individuals with the necessary resources and support to reintegrate into society successfully. This segment underscores CoreCivic's commitment to public service and the broader societal goal of reducing repeat offenses.
- Properties: CoreCivic is one of the largest private owners of real estate used by government agencies in the United States. Through its Properties segment, the company leases facilities to third parties and government entities, providing cost-efficient and scalable infrastructure solutions. This segment enhances CoreCivic's portfolio diversification and revenue streams.
Market Position and Competitive Landscape
CoreCivic holds a significant position in the private corrections and government solutions industry. It is the largest owner of partnership correctional, detention, and residential reentry facilities in the nation. The company's REIT structure allows for efficient capital allocation toward real estate investments, giving it a competitive edge in scaling operations and adapting to evolving government needs. CoreCivic competes with other private operators and government-run facilities, differentiating itself through its scale, operational expertise, and focus on cost-saving measures for its partners.
Revenue Model and Operational Strategy
CoreCivic generates revenue primarily through long-term contracts with federal, state, and local government agencies. These contracts typically involve fixed per diem rates or lease agreements, providing predictable cash flows. The company's REIT status further supports its financial model by enabling tax-efficient real estate income. CoreCivic's operational strategy emphasizes flexibility, enabling it to adapt quickly to changing government policies and budgetary constraints.
Industry Context and Challenges
The private corrections industry operates within a highly regulated and scrutinized environment. CoreCivic faces challenges such as shifts in public policy, changes in federal and state government priorities, and evolving public perceptions of private corrections. The company mitigates these risks through its diversified service offerings, long-standing partnerships, and a commitment to high standards of professionalism and service.
Commitment to Public Good
CoreCivic's mission extends beyond profit generation. The company is deeply committed to serving the public good by addressing critical societal issues such as recidivism and the need for cost-effective government infrastructure. Its employees are driven by a sense of responsibility to improve public safety and provide innovative solutions that benefit communities nationwide.
Conclusion
CoreCivic's unique combination of corrections management, reentry programs, and government real estate solutions positions it as a versatile and indispensable partner for government agencies. Its REIT structure, operational expertise, and focus on public service make it a key player in addressing the challenges of modern corrections and infrastructure management.
CoreCivic, Inc. (NYSE: CXW) will release its 2022 second quarter financial results on August 2, 2022, after market close. A live conference call will take place on August 3, 2022, at 10:00 a.m. CT, accessible through the company's website and via telephone. This call is part of CoreCivic's ongoing communication strategy with investors and stakeholders, allowing them to review the company's financial performance and strategic initiatives. CoreCivic emphasizes its role as a key partner to government agencies in providing correctional and detention management solutions.
CoreCivic, Inc. (CXW) reported Q1 2022 earnings showcasing total revenue of $453.0 million, consisting of $414.2 million from CoreCivic Safety, $24.1 million from Community, and $14.6 million from Properties. The company netted $19.0 million with a diluted EPS of $0.16, a rebound from a net loss of $125.6 million YoY. Adjusted EBITDA fell to $80.8 million, down from $96.3 million in Q1 2021 due to contract non-renewals and property sales affecting operations. 2022 guidance was adjusted for higher labor costs and uncertainties from Title 42.
CoreCivic, Inc. (NYSE: CXW) will release its first quarter 2022 financial results on May 4, 2022, after market close. A conference call will occur on May 5, 2022, at 10:00 AM CT, available via the company’s website or by phone. CoreCivic specializes in diversified government solutions, providing corrections and detention management, alongside residential alternatives to incarceration, aiming to combat recidivism. The company is the largest owner of correctional facilities and government-used real estate in the U.S.
CoreCivic (CXW) reported its financial results for Q4 and full year 2021, with a total revenue of $1.86 billion. The company faced a net loss of $51.9 million, largely due to $178.6 million in special items. For Q4, revenues reached $472.1 million, with a net income of $28.0 million, improving from a net loss in Q4 2020. Adjusted diluted EPS for the quarter was $0.27. CoreCivic announced a new contract with Arizona for up to 2,706 inmates, estimated to generate $75 million to $85 million annually. Guidance for 2022 indicates EPS between $0.72 - $0.86 and FFO per share of $1.55 - $1.70.
CoreCivic, Inc. (NYSE: CXW) will announce its 2021 fourth quarter financial results on February 9, 2022, after market close.
A live conference call is scheduled for February 10, 2022, at 10:00 a.m. CT, accessible via the company’s website or by phone at 877-614-0009.
CoreCivic is a leading provider of government solutions, specializing in corrections and detention management, with over 35 years of experience serving government partners.
CoreCivic, Inc. (NYSE: CXW) has secured a new five-year contract with the State of Arizona to manage up to 2,706 adult male inmates at the La Palma Correctional Center. This contract, expected to yield $75 million to $85 million in annual revenue, marks the most significant prison contract awarded to the private sector in over a decade. The company plans to transition detainees currently in the facility to accommodate state inmates as part of a ramp plan set to begin in early 2022.
CoreCivic, Inc. (NYSE: CXW) reported its third quarter 2021 financial results, achieving total revenue of $471.2 million, up from $431.5 million in Q3 2020. The company generated diluted EPS of $0.25 and adjusted diluted EPS of $0.28. CoreCivic's leverage improved to 2.7x following a debt repayment of $187.5 million during the quarter. The firm also issued $225 million in unsecured senior notes at favorable terms. Despite strong performance, CoreCivic did not provide 2021 financial guidance due to ongoing uncertainties related to COVID-19 and various governmental policies.
CoreCivic announced the passing of co-founder Terrell Don Hutto, expressing deep sadness over his loss. Hutto, a significant figure in correctional management, co-founded the company in 1983 and served as its first Chief Operating Officer and later as Vice Chairman. He was known for his expertise in correctional systems and was instrumental in developing national standards in the field. CoreCivic's President and fellow co-founder praised Hutto for his leadership and contributions, emphasizing his commitment to best practices and the public good. The company continues to provide government solutions through correctional and reentry services.
CoreCivic, Inc. (NYSE: CXW) has announced it will release its 2021 third quarter financial results after the market closes on November 8, 2021. A live conference call to discuss these results will take place on November 9, 2021, at 10:00 a.m. CT. This call can be accessed via the Company’s website or by dialing 800-437-2398 in the U.S. and Canada. CoreCivic offers government solutions including corrections and detention management, and it is the largest owner of such facilities in the U.S.
CoreCivic, Inc. (NYSE: CXW) has successfully upsized its offering of 8.25% senior unsecured notes due 2026, raising the amount to $225 million from $100 million. The notes were priced at 102.25% of their principal, yielding 7.65% to maturity. The net proceeds of approximately $225.5 million will be used for general corporate purposes, including repaying existing senior notes and revolving credit facility amounts. The offering is subject to market conditions and regulatory approvals.
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