CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today its financial results for the fourth quarter and
full year 2022.
Financial Highlights – Full Year 2022
- Total revenue of $1.85 billion
- CoreCivic Safety revenue of $1.68 billion
- CoreCivic Community revenue of $103.3
million
- CoreCivic Properties revenue of $57.9
million
- Net income of $122.3 million
- Net income reflects $54.0 million of special items, including
$57.1 million gain on the sale of our McRae Correctional Facility
in Georgia, net of taxes, reflected in the third quarter of
2022
- Diluted earnings per share of $1.03
- Adjusted Diluted EPS of $0.57
- Normalized FFO per diluted share of $1.39
- Adjusted EBITDA of $315.7 million
Damon T. Hininger, CoreCivic's President and Chief
Executive Officer, said, “We are pleased to have closed out 2022
with another strong financial performance in a difficult
environment, which allowed us to make meaningful progress towards
the debt reduction goals we have set. We reduced our outstanding
debt balance by over $287 million in 2022, and on February 1, 2023,
we repaid in full the $154 million outstanding balance on our
4.625% Senior Notes originally scheduled to mature on May 1, 2023.
Since announcing our updated capital allocation strategy in the
summer of 2020, we have cut our overall debt in half, or by over $1
billion due to the strong and stable cash flows generated in the
business. Having made significant progress on our debt reduction
strategy, we began returning capital to shareholders during 2022
through a new share repurchase program. During the year we
repurchased 6.6 million shares, representing over 5% of our
outstanding shares, at a total cost of $74.5 million.
Hininger continued, “Our full year 2023 financial
guidance reflects the positive impact from having substantially
completed the transition to the previously announced contract with
the state of Arizona at our 3,060-bed La Palma Correctional Center
in Arizona, which was disruptive to earnings and cash flow during
2022. However, we expect a challenging labor market to continue in
2023, and we believe it is likely we will see a continuation of
occupancy restrictions implemented during the COVID-19 pandemic,
particularly by our federal government partners, at least for a
meaningful portion of the year. We have increased
staffing levels at certain facilities in anticipation of increased
occupancy levels, and we are well positioned to accept additional
residential populations as pandemic-related occupancy restrictions
are removed. Despite these challenges, we are pleased that our 2023
financial guidance reflects normalized per share growth compared
with 2022."
Financial Highlights – Fourth Quarter 2022
- Total revenue of $471.4 million
- CoreCivic Safety revenue of $430.2
million
- CoreCivic Community revenue of $27.0
million
- CoreCivic Properties revenue of $14.2
million
- Net Income of $24.4 million
- Diluted earnings per share of $0.21
- Adjusted Diluted EPS of $0.22
- Normalized Funds From Operations per diluted share of
$0.42
- Adjusted EBITDA of $87.7 million
Fourth Quarter 2022 Financial Results Compared With
Fourth Quarter 2021
Net income in the fourth quarter of 2022 totaled
$24.4 million, or $0.21 per diluted share, compared with net income
in the fourth quarter of 2021 of $28.0 million, or $0.23 per
diluted share. Adjusted for special items, adjusted net income in
the fourth quarter of 2022 was $25.0 million, or $0.22 per diluted
share (Adjusted Diluted EPS), compared with adjusted net income in
the fourth quarter of 2021 of $32.6 million, or $0.27 per diluted
share. Special items for each period are presented in detail in the
calculation of Adjusted Diluted EPS in the Supplemental Financial
Information following the financial statements presented
herein.
The decline in adjusted per share amounts was
primarily the result of transitioning to the previously announced
contract with the state of Arizona at our 3,060-bed La Palma
Correctional Center in Arizona, the expiration of our contract with
the Federal Bureau of Prisons (BOP) at the McRae Correctional
Facility on November 30, 2022, and ongoing labor market pressures,
including temporary incentives and above average wage inflation. We
substantially completed the transition at the La Palma facility by
the end of 2022. Despite the expiration of the contract with the
BOP, our renewal rate on owned and controlled facilities remains
high at 95% over the previous five years. We believe our renewal
rate on existing contracts remains high due to a variety of reasons
including the aged and constrained supply of available beds within
the U.S. correctional system, our ownership of the majority of the
beds we operate, the value our government partners place in the
wide range of recidivism-reducing programs we offer to those in our
care, and the cost effectiveness of the services we provide.
Earnings before interest, taxes, depreciation and
amortization (EBITDA) was $87.0 million in the fourth quarter of
2022, compared with $97.0 million in the fourth quarter of 2021.
Adjusted EBITDA was $87.7 million in the fourth quarter of 2022,
compared with $103.2 million in the fourth quarter of 2021.
Adjusted EBITDA decreased from the prior year quarter primarily due
to the previously mentioned transition of offender populations at
our La Palma Correctional Center, which resulted in a reduction in
EBITDA of $9.1 million, and the expiration of our BOP contract at
the McRae Correctional Facility in November 2022, which resulted in
a reduction in EBITDA of $2.6 million from the fourth quarter of
2021 to the fourth quarter of 2022. We achieved higher
staffing levels and incurred more in temporary incentive expenses
than in the prior year quarter to attract and retain facility staff
in the challenging labor market. We also incurred higher travel
related expenses in order to augment staffing levels at multiple
facilities. We believe these investments in staffing are preparing
us to manage the increased number of residents we anticipate at our
facilities once the remaining occupancy restrictions attributable
to COVID-19 are removed. These reductions in EBITDA were partially
offset by employee retention credits available under the
Coronavirus Aid, Relief and Economic Security Act, or CARES
Act.
Funds From Operations (FFO) was $48.8 million, or
$0.42 per diluted share, in the fourth quarter of 2022, compared to
$54.7 million, or $0.45 per diluted share, in the fourth quarter of
2021. Normalized FFO, which excludes special items, was $49.1
million, or $0.42 per diluted share, in the fourth quarter of 2022,
compared with $57.8 million, or $0.48 per diluted share, in the
fourth quarter of 2021. Normalized FFO was impacted by
the same factors that affected Adjusted EBITDA.
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.
Asset Dispositions and Assets Held for Sale
In December 2022, we completed the sale of our idled Oklahoma
City Transitional Center, reported in our Community segment. The
sale of this facility to a third party generated net sales proceeds
of $0.9 million. The buyer intends to redevelop the property for an
alternative use.
As of December 31, 2022, we held for sale two actively leased
residential reentry facilities located in Philadelphia,
Pennsylvania and reported in our Properties segment, and an idle
residential reentry facility located in Denver, Colorado and
reported in our Community segment. The facility in Denver is under
a Purchase and Sale Agreement for a gross sales price of $1.3
million, which is expected to close in the second quarter of 2023.
Based on the agreement, in the fourth quarter of 2022, we
recognized an impairment charge of $0.7 million, based on its
estimated net realizable value less costs to sell. Several third
parties have expressed an interest in purchasing the facilities in
Philadelphia, and we believe we will be able to sell these
properties within the next twelve months. However, we have not yet
reached a definitive agreement to sell the properties and can
provide no assurance that we will complete the sale of either of
these properties, which have a net book value of $5.8
million.
As previously disclosed, during the second quarter of 2022, we
entered into an agreement with the Georgia Building Authority (GBA)
to sell our 1,978-bed McRae Correctional Facility located in McRae,
Georgia, and reported in our Safety segment, for a sale price of
$130.0 million, generating net proceeds of $129.7 million. The sale
was completed on August 9, 2022, resulting in a gain on sale of
$77.5 million after transaction costs. We had a management contract
with the BOP at the McRae facility that expired on November 30,
2022, and was not renewed. In connection with the sale, we entered
into an agreement with the GBA to lease the facility through
November 30, 2022, to allow us to fulfill our contractual
obligations to the BOP. The McRae Correctional Facility converted
to a facility owned and operated by the state of Georgia upon the
termination of our lease with the GBA.
During the first three quarters of 2022, we also completed the
sales of two additional residential reentry facilities located in
California reported in our Properties segment, two residential
reentry facilities located in Denver, Colorado and reported in our
Community segment, and two parcels of undeveloped land located in
California. We generated aggregate net proceeds from the sales of
these real estate assets of $26.4 million.
Debt Repayments
During the year ended December 31, 2022, we reduced our debt
balance by $287.4 million, or by $137.2 million net of the change
in cash. In the fourth quarter of 2022, we purchased $12.8 million
principal amount of our 4.625% Senior Notes in open market
purchases at a discount to par, reducing the outstanding balance of
the 4.625% Senior Notes to $153.8 million. The 4.625%
Senior Notes were scheduled to mature on May 1, 2023. We repaid in
full the outstanding principal balance of the 4.625% Senior Notes
on February 1, 2023, using available cash on hand and capacity
under our $250.0 million Revolving Credit Facility. During the
fourth quarter of 2022, we also purchased $27.4 million principal
amount of our 8.25% Senior Notes in open market purchases at a
discount to par, reducing the outstanding balance of the 8.25%
Senior Notes to $614.1 million. Following the repayment
of the outstanding principal balance of the 4.625% Senior Notes on
February 1, 2023, we have no other maturities until the 8.25%
Senior Notes mature in April 2026.
Share Repurchases
On May 12, 2022, our Board of Directors approved a share
repurchase program authorizing the Company to repurchase up to
$150.0 million of our common stock. On August 2, 2022, our Board of
Directors authorized an increase in our share repurchase program of
up to an additional $75.0 million in shares of our common stock, or
a total of up to $225.0 million. During 2022, we repurchased 6.6
million shares of our common stock at an aggregate purchase price
of $74.5 million, excluding fees, commissions and other costs
related to the repurchases.
We currently have $140.5 million remaining under the share
repurchase program authorized by the Board of Directors following
$10.0 million in additional repurchases so far in 2023. Additional
repurchases of common stock will be made in accordance with
applicable securities laws and may be made at management’s
discretion within parameters set by the Board of Directors from
time to time in the open market, through privately negotiated
transactions, or otherwise. The share repurchase program has no
time limit and does not obligate us to purchase any particular
amount of our common stock. The authorization for the share
repurchase program may be terminated, suspended, increased or
decreased by our Board of Directors in its discretion at any
time.
2023 Financial Guidance
Based on current business conditions, we are providing the
following financial guidance for the full year 2023:
|
Full Year 2023 |
• Net income |
$58.0 million to $75.0 million |
• Diluted EPS |
$0.50 to $0.65 |
• FFO per diluted share |
$1.35 to $1.50 |
• EBITDA |
$298.5 million to $313.5 million |
During 2023, we expect to invest $64.0 million to $67.0 million
in capital expenditures, consisting of $36.0 million to $37.0
million in maintenance capital expenditures on real estate assets,
$25.0 million to $26.0 million for maintenance capital expenditures
on other assets and information technology, and $3.0 million to
$4.0 million for other capital investments.
Supplemental Financial Information and Investor
Presentations
We have made available on our website supplemental financial
information and other data for the fourth quarter of
2022. 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 first quarter of 2023. Written
materials used in the investor presentations will also be available
on our website beginning on or about February 20, 2023.
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, February 9, 2023, 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/BId87fe936f05a41fa8057f46bf4310550.
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 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 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, or DOJ, 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, or the Private
Prison EO, impacting utilization primarily by the BOP and the
United States Marshals Service, and the impact of any changes to
immigration reform and sentencing laws (our company does 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) the duration of the federal government’s denial of
entry at the United States southern border to asylum-seekers and
anyone crossing the southern border without proper documentation or
authority in an effort to contain the spread of COVID-19, a policy
known as Title 42 (Title 42 is subject to ongoing litigation, the
outcome of which is unclear. Most recently, on December 27, 2022,
the Supreme Court granted a stay on the cessation of Title 42,
while it considers an appeal by a group of states to continue the
expulsions.); (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 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.
CoreCivic takes 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.
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
ASSETS |
|
December 31,2022 |
|
December 31,2021 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
149,401 |
|
|
$ |
299,645 |
|
Restricted cash |
|
|
12,764 |
|
|
|
11,062 |
|
Accounts receivable, net of
credit loss reserve of $8,008 and $7,931, respectively |
|
|
312,435 |
|
|
|
282,809 |
|
Prepaid expenses and other
current assets |
|
|
32,134 |
|
|
|
26,872 |
|
Assets held for sale |
|
|
6,936 |
|
|
|
6,996 |
|
Total
current assets |
|
|
513,670 |
|
|
|
627,384 |
|
Real estate and related
assets: |
|
|
|
|
Property and equipment, net of accumulated depreciation of
$1,716,283 and $1,657,709, respectively |
|
|
2,176,098 |
|
|
|
2,283,256 |
|
Other real estate assets |
|
|
208,181 |
|
|
|
218,915 |
|
Goodwill |
|
|
4,844 |
|
|
|
4,844 |
|
Other assets |
|
|
341,976 |
|
|
|
364,539 |
|
|
|
|
|
|
Total
assets |
|
$ |
3,244,769 |
|
|
$ |
3,498,938 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
285,226 |
|
|
$ |
305,592 |
|
Current portion of long-term
debt |
|
|
165,525 |
|
|
|
35,376 |
|
Total
current liabilities |
|
|
450,751 |
|
|
|
340,968 |
|
|
|
|
|
|
Long-term debt, net |
|
|
1,084,858 |
|
|
|
1,492,046 |
|
Deferred revenue |
|
|
22,590 |
|
|
|
27,551 |
|
Non-current deferred tax
liabilities |
|
|
99,618 |
|
|
|
88,157 |
|
Other liabilities |
|
|
154,544 |
|
|
|
177,748 |
|
|
|
|
|
|
Total
liabilities |
|
|
1,812,361 |
|
|
|
2,126,470 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Preferred stock ― $0.01 par
value; 50,000 shares authorized; none issued and outstanding at
December 31, 2022 and 2021, respectively |
|
|
- |
|
|
|
- |
|
Common stock ― $0.01 par
value; 300,000 shares authorized; 114,988 and 120,285 shares issued
and outstanding at December 31, 2022 and 2021, respectively |
|
|
1,150 |
|
|
|
1,203 |
|
Additional paid-in
capital |
|
|
1,807,689 |
|
|
|
1,869,955 |
|
Accumulated deficit |
|
|
(376,431 |
) |
|
|
(498,690 |
) |
Total stockholders’ equity |
|
|
1,432,408 |
|
|
|
1,372,468 |
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
3,244,769 |
|
|
$ |
3,498,938 |
|
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
|
|
For the Three Months EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
|
|
|
|
|
|
|
Safety |
|
$ |
430,247 |
|
|
$ |
432,785 |
|
|
$ |
1,684,035 |
|
|
$ |
1,693,968 |
|
Community |
|
|
26,994 |
|
|
|
25,313 |
|
|
|
103,263 |
|
|
|
99,435 |
|
Properties |
|
|
14,169 |
|
|
|
14,007 |
|
|
|
57,873 |
|
|
|
68,934 |
|
Other |
|
|
23 |
|
|
|
28 |
|
|
|
158 |
|
|
|
279 |
|
|
|
|
471,433 |
|
|
|
472,133 |
|
|
|
1,845,329 |
|
|
|
1,862,616 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
|
|
Safety |
|
|
326,095 |
|
|
|
309,948 |
|
|
|
1,313,567 |
|
|
|
1,236,938 |
|
Community |
|
|
22,485 |
|
|
|
20,059 |
|
|
|
86,016 |
|
|
|
81,610 |
|
Properties |
|
|
3,121 |
|
|
|
2,832 |
|
|
|
13,682 |
|
|
|
18,155 |
|
Other |
|
|
268 |
|
|
|
80 |
|
|
|
527 |
|
|
|
362 |
|
Total operating
expenses |
|
|
351,969 |
|
|
|
332,919 |
|
|
|
1,413,792 |
|
|
|
1,337,065 |
|
General and administrative |
|
|
34,892 |
|
|
|
38,412 |
|
|
|
127,700 |
|
|
|
135,770 |
|
Depreciation and amortization |
|
|
31,688 |
|
|
|
33,951 |
|
|
|
127,906 |
|
|
|
134,738 |
|
Shareholder litigation expense |
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
|
|
54,295 |
|
Asset impairments |
|
|
879 |
|
|
|
2,027 |
|
|
|
4,392 |
|
|
|
11,378 |
|
|
|
|
419,428 |
|
|
|
407,309 |
|
|
|
1,675,690 |
|
|
|
1,673,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(19,593 |
) |
|
|
(23,239 |
) |
|
|
(84,974 |
) |
|
|
(85,542 |
) |
Expenses associated with debt repayments and refinancing
transactions |
|
|
(489 |
) |
|
|
(4,112 |
) |
|
|
(8,077 |
) |
|
|
(56,279 |
) |
Gain on sale of real estate assets, net |
|
|
579 |
|
|
|
- |
|
|
|
87,728 |
|
|
|
38,766 |
|
Other income (expense) |
|
|
52 |
|
|
|
(105 |
) |
|
|
986 |
|
|
|
(212 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES |
|
|
32,554 |
|
|
|
37,368 |
|
|
|
165,302 |
|
|
|
86,103 |
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
|
(8,117 |
) |
|
|
(9,331 |
) |
|
|
(42,982 |
) |
|
|
(137,999 |
) |
NET INCOME (LOSS) |
|
$ |
24,437 |
|
|
$ |
28,037 |
|
|
$ |
122,320 |
|
|
$ |
(51,896 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS)
PER SHARE |
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
1.03 |
|
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS)
PER SHARE |
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
1.03 |
|
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED
EPS
|
For the Three Months EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
24,437 |
|
|
$ |
28,037 |
|
|
$ |
122,320 |
|
|
$ |
(51,896 |
) |
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
Expenses associated with debt repayments and refinancing
transactions |
|
489 |
|
|
|
4,112 |
|
|
|
8,077 |
|
|
|
56,279 |
|
Expenses associated with COVID-19 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,434 |
|
Income taxes associated with change in corporate tax structure and
other special tax items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
114,249 |
|
Gain on sale of real estate assets, net |
|
(579 |
) |
|
|
- |
|
|
|
(87,728 |
) |
|
|
(38,766 |
) |
Shareholder litigation expense |
|
- |
|
|
|
- |
|
|
|
1,900 |
|
|
|
54,295 |
|
Asset impairments |
|
879 |
|
|
|
2,027 |
|
|
|
4,392 |
|
|
|
11,378 |
|
Income tax expense (benefit) for special items |
|
(205 |
) |
|
|
(1,533 |
) |
|
|
19,338 |
|
|
|
(21,227 |
) |
Adjusted net income |
$ |
25,021 |
|
|
$ |
32,643 |
|
|
$ |
68,299 |
|
|
$ |
126,746 |
|
Weighted average common shares outstanding – basic |
|
114,982 |
|
|
|
120,285 |
|
|
|
118,199 |
|
|
|
120,192 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
Restricted stock-based awards |
|
1,274 |
|
|
|
933 |
|
|
|
899 |
|
|
|
531 |
|
Non-controlling interest – operating partnership units |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
952 |
|
Weighted average shares and assumed conversions - diluted |
|
116,256 |
|
|
|
121,218 |
|
|
|
119,098 |
|
|
|
121,675 |
|
Adjusted Diluted EPS |
$ |
0.22 |
|
|
$ |
0.27 |
|
|
$ |
0.57 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL 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 EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
24,437 |
|
|
$ |
28,037 |
|
|
$ |
122,320 |
|
|
$ |
(51,896 |
) |
Depreciation and amortization
of real estate assets |
|
24,092 |
|
|
|
25,176 |
|
|
|
96,917 |
|
|
|
98,738 |
|
Impairment of real estate
assets |
|
879 |
|
|
|
2,027 |
|
|
|
4,392 |
|
|
|
3,335 |
|
Gain on sale of real estate
assets, net |
|
(579 |
) |
|
|
- |
|
|
|
(87,728 |
) |
|
|
(38,766 |
) |
Income tax expense for special
items |
|
(78 |
) |
|
|
(506 |
) |
|
|
21,995 |
|
|
|
8,785 |
|
Funds From Operations |
$ |
48,751 |
|
|
$ |
54,734 |
|
|
$ |
157,896 |
|
|
$ |
20,196 |
|
|
|
|
|
|
|
|
|
Expenses associated with debt
repayments and refinancing transactions |
|
489 |
|
|
|
4,112 |
|
|
|
8,077 |
|
|
|
56,279 |
|
Expenses associated with
COVID-19 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,434 |
|
Income taxes associated with
change in corporate tax structure and other special tax items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
114,249 |
|
Shareholder litigation
expense |
|
- |
|
|
|
- |
|
|
|
1,900 |
|
|
|
54,295 |
|
Goodwill and other
impairments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,043 |
|
Income tax benefit for special
items |
|
(127 |
) |
|
|
(1,027 |
) |
|
|
(2,657 |
) |
|
|
(30,012 |
) |
Normalized Funds From Operations |
$ |
49,113 |
|
|
$ |
57,819 |
|
|
$ |
165,216 |
|
|
$ |
225,484 |
|
|
|
|
|
|
|
|
|
Funds From Operations Per
Diluted Share |
$ |
0.42 |
|
|
$ |
0.45 |
|
|
$ |
1.33 |
|
|
$ |
0.17 |
|
Normalized Funds From
Operations Per Diluted Share |
$ |
0.42 |
|
|
$ |
0.48 |
|
|
$ |
1.39 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
CALCULATION OF EBITDA AND ADJUSTED EBITDA
|
For the Three Months EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
24,437 |
|
|
$ |
28,037 |
|
$ |
122,320 |
|
|
$ |
(51,896 |
) |
Interest expense |
|
22,712 |
|
|
|
25,700 |
|
|
95,851 |
|
|
|
95,565 |
|
Depreciation and
amortization |
|
31,688 |
|
|
|
33,951 |
|
|
127,906 |
|
|
|
134,738 |
|
Income tax expense |
|
8,117 |
|
|
|
9,331 |
|
|
42,982 |
|
|
|
137,999 |
|
EBITDA |
$ |
86,954 |
|
|
$ |
97,019 |
|
$ |
389,059 |
|
|
$ |
316,406 |
|
Expenses associated with debt
repayments and refinancing transactions |
|
489 |
|
|
|
4,112 |
|
|
8,077 |
|
|
|
56,279 |
|
Expenses associated with
COVID-19 |
|
- |
|
|
|
- |
|
|
- |
|
|
|
2,434 |
|
Gain on sale of real estate
assets, net |
|
(579 |
) |
|
|
- |
|
|
(87,728 |
) |
|
|
(38,766 |
) |
Shareholder litigation
expense |
|
- |
|
|
|
- |
|
|
1,900 |
|
|
|
54,295 |
|
Asset impairments |
|
879 |
|
|
|
2,027 |
|
|
4,392 |
|
|
|
11,378 |
|
Adjusted EBITDA |
$ |
87,743 |
|
|
$ |
103,158 |
|
$ |
315,700 |
|
|
$ |
402,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
GUIDANCE -- CALCULATION OF FUNDS FROM OPERATIONS &
EBITDA
|
For the Year EndingDecember 31,
2023 |
|
Low End of Guidance |
|
High End of Guidance |
Net income |
$ |
58,000 |
|
$ |
75,000 |
Depreciation and amortization of real estate assets |
|
98,250 |
|
|
98,750 |
Funds From Operations |
$ |
156,250 |
|
$ |
173,750 |
Diluted EPS |
$ |
0.50 |
|
$ |
0.65 |
FFO per diluted share |
$ |
1.35 |
|
$ |
1.50 |
|
|
|
Net income |
$ |
58,000 |
|
$ |
75,000 |
Interest expense |
|
86,250 |
|
|
85,250 |
Depreciation and
amortization |
|
130,000 |
|
|
130,000 |
Income tax expense |
|
24,250 |
|
|
23,250 |
EBITDA |
$ |
298,500 |
|
$ |
313,500 |
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, lenders
and security analysts 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: Cameron Hopewell - Managing Director, Investor Relations
- (615) 263-3024Financial Media: David Gutierrez, Dresner Corporate
Services - (312) 780-7204 |
|
|
|
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